BW Confidential - Issue #13 - March/April 2013 - (Page 40)

Insight: Make-up Retail viewpoint Making up the sale Four industry executives discuss the state of the make-up business and how to improve the in-store experience by Alissa Demorest MAC global brand president Karen Buglisi L’Oréal Luxe France general manager Xavier Vey ArtDeco marketing director Anna Blasco-Salvat Superdrug buying director Simon Comins What is driving growth in the category? KB: The category is performing well, even in core markets like the US, where the prestige market is on fire, and is outpacing growth in mass. I see great potential for development in emerging markets. There is so much untapped potential in regions like the Middle East, South Africa, Turkey and Israel, so the future is very bright. XV: We can look at the market as a glass half full or a glass half empty. In France in 2012, make-up was down by 1.4%, but in an economic downturn, compared to other sectors, make-up consumption is holding its own. Make-up is an innovation business—the category needs new colors, fun concepts and more efficacious formulas. If everyone in the market started innovating, the category would take off again. Our Vernis à Lèvres from Yves Saint Laurent, for example, was innovative in its packaging, formula, name and concept [lip polish] and it was a bestseller last year. Look at nails—the category had been at a standstill for years, but took off when there was innovation. The nails phenomenon continues, but I wouldn’t say it is changing the overall market. ABS: Nail products are seeing the strongest growth. Although not as strong as last year, the category continues to increase. Mascara is also growing a lot. New innovations are bringing consumers into stores. Color is becoming important as a substitute for other lifestyle items, such as fashion and accessories—nail lacquer, for instance, is being used by consumers to change their look. SC: Innovations are critical, whether it’s a new mascara featuring a novel brush design or the latest trend in nail polish. We’re seeing great results from the nails category, with innovations such as crackle-effect lacquers and products where the consumer can see a real benefit and that creates a new look and feel for them. Innovations are coming faster and faster and consumers are keeping up to date more than in the past. What are you seeing in pricing and promotions? KB: At MAC we don’t do promotions or discounting. Our pricing strategy stretches over five tiers—entry-level to recruit new customers, but also price points to recruit from more luxe brands. This is one reason why we’ve resonated in markets like Brazil and India, where there was only mass make-up. We introduced n n n 40 March-April 2013 - N°13 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #13 - March/April 2013

Cover
Comment
Contents
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 Natura Cosméticos evp José Vicente Marino
Insight: Make-up
- Category overview
- The latest trends
- Social media
- Retail viewpoint
- Retail case studies
- Increasing usage
Retail
- European perfumeries
- Store concepts
Digital Mobile strategies and brand case studies
Strategy spotlight Trends to inspire
Market watch: US
- Country overview
- Department stores
- Specialty stores
- Industry viewpoint
Emerging markets Company profile: Jequiti
Radar A profile of six up-and-coming beauty brands
Travel retail: Brazilian travelers
- Overview
- Passenger profiles
Packaging Designs for travel retail
Last word The Beauty Company’s Alisa Marie Beyer on new ways to converse with consumers

BW Confidential - Issue #13 - March/April 2013