BW Confidential - Issue #11 - September/October 2012 - (Page 14)

Best of www.bwconﬁdential.com The inside view on the international beauty and wellness industry September 2-15, 2010 #21 BW highlights BW Confidential delivers an electronic publication by email to subscribers every two weeks, with a focus on analysis of major issues facing the international industry, interviews with key players and insight into new trends. Here we bring you excerpts of some of our reports. To see the articles in full log on to our website www.bwconfidential.com Comment CONFIDENTIAL Inside The buzz The essential news roundup The retail view Wellness focus Changing channels f the industry needed any more proof that retail models are changing and consumers are buying differently, it only needs to look at the launch of the new Mary J Blige fragrance. US company Carol’s Daughter, which developed the scent, took the brave step of launching the fragrance exclusively on TV shopping channel HSN, and so without the US’s traditional launch-pad, the department store. The company can’t be disappointed with the results: in just six hours of airtime the fragrance had sold 60,000 units and broken HSN records for fragrance volume sales. Brands looking beyond traditional distribution is nothing new, but what is interesting is how successful new channels are becoming. Alternatives in the US, such as Sephora and Ulta, may not have the same footprint as department stores, but they are increasingly popular, and their websites are attracting more consumers who may not have a brick-and-mortar version nearby. As for TV shopping, it also has broad reach, provides brand awareness and is considered a lot more cost-efﬁcient than the department store. One brand manager recently told BW Conﬁdential that companies can simply no longer afford to pay for staff at department stores and all the other extras they ask for. And perhaps more worrying for the department store is that brands are now less afraid of upsetting these retailers by dabbling in other types of distribution. Oonagh Phillips Editor in Chief ophillips@bwconﬁdential.com 2 4 4 5 6 I Netwatch The beauty blog review Interview Clinique vp & gm Europe, ME & Africa Jean-Christophe Jourde Beauty insight Market outlook 8 11 Store visit House of Fraser’s Apothecary Subscribe www.bwconfidential.com on p.13 or go to Beauty insight Beauty box sampling Over the past 18 months, the explosion in the number of startups offering beauty box sample services, which sends out a box of samples to consumers in exchange for a subscription, is starting to change the way companies think about sampling. The benefits for brands are obvious—instead of samples being distributed randomly via the press or in-store, they are sent to targeted consumers who have opted in to the service. Brands also have access to feedback from consumers. Most beauty box services also include an e-shop. “It puts them on the map, drives social media and creates loyal customers. Retailers pay attention to that, because they want the bestselling products,” sampling service Beauty Army founder and ceo Lindsey Guest comments. In-store marketing Brands could do more to include olfactory and tactile components in their in-store marketing to better stand out from the crowd. This is especially true given the number of brands competing for shoppers’ attention in-store and the better multi-sensory technology now on offer. “Brands need to be aware of the importance and the potential of the olfactory experience at the pos as a means of communication. Although there is more interest today, olfaction remains underexploited in this market,” comments olfactory technology company Olfact’air ceo Maxime Caffon. One of the biggest stumbling blocks for brands is the question of return on investment for this type of operation. However, multi-sensory operations can be far cheaper than traditional communication, such as advertising or in-store brand demonstrations. Beauty in Turkey Turkey’s prestige cosmetics market is becoming more of a focus for international players. Cosmetics sales in Turkey reached 5.97bn Turkish lira ($3.29bn) in 2011, up 11.9% on year. Of that figure, only 353.4m Turkish lira ($194.66m), or just under 6%, stemmed from selective products, according to Euromonitor. In 2012, Euromonitor estimates that the cosmetics market will see sales increase a further 3.5% to 6.18bn Turkish lira ($3.41bn), and reach 7.11bn Turkish lira ($3.92bn) by 2016. Growth is expected to be stronger in prestige, with an estimated compound annual growth rate of 4.8%, compared with 3.2% for mass, between now and 2016. 14 The fragrance market in Russia The fragrance category in Russia has bounced back, after having been hit quite hard by the 2008-2009 financial crisis. The beginning of 2010 saw a rapid increase in fragrance sales, as consumers began to replenish their scents. Estimates from Discovery Research Group for fragrance show a 7.5% increase in 2011. However, part of this growth corresponds to an increase in prices. The unit price for fragrance increased by 6% in 2010, due to the ruble’s devaluation at the beginning of 2009. September-October 2012 - N°11 - BW Confidential http://www.bwconfidential.com

Table of Contents for the Digital Edition of BW Confidential - Issue #11 - September/October 2012

Cover
Contents
Comment
Update
- Brand & retail news recap
- Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Collistar ceo Daniela Sacerdote
Insight: Fragrance Creation
- Category overview
- Industry factfile
- Viewpoint
- Emerging markets
- Naturals
Wellness
- Spas management
- Spa case studies
Retail
- Sephora & emerging markets
- Store concepts
Digital focus Pinterest strategies
Strategy spotlight Trends to inspire
Market watch: Middle East
- Regional overview
- Industry viewpoint
- Prestige retailing
Radar Six up-and-coming beauty brands
Packaging Trends in luxury
Last word Sagentia's Peter Luebcke on devices

BW Confidential - Issue #11 - September/October 2012