BW Confidential - Issue #14 - May/June 2013 - (Page 20)

Best of www.bwconfidential.com BW highlights CONFIDENTIAL The inside view on the international beauty and wellness industry September 2-15, 2010 #21 CONFIDENTIAL CONFIDENTIAL 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 Inside Comment Changing channels The buzz I 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 The essential news roundup The retail view Wellness focus 4 4 5 Netwatch The beauty blog review Interview 6 Clinique vp & gm Europe, ME & Africa Jean-Christophe Jourde Beauty insight 8 Market outlook Store visit 11 House of Fraser’s Apothecary Subscribe on p.13 or go to www.bwconfidential.com Beauty insight Colombia Colombia’s beauty market continues to report solid growth and is beginning to attract more attention from foreign players. Beauty and personal-care retail sales there were up by 7% in 2011 to COP6,681.9bn ($3.76bn), according to Euromonitor. Colombian women were always big buyers of beauty, but are said to have doubled their spend in the category over the past four years. Peruvian beauty company Belcorp’s Colombian subsidiary Belstar principal scientist, skincare John Jimenez explains: “There is an increase in purchasing power, which is resulting in more consumption, so consumers have new quality benchmarks for cosmetics.” Africa Africa, especially Sub-Saharan Africa, is beginning to attract more attention from beauty players. P&G group president Central and Eastern Europe, Middle East and Africa Laurent Philippe recently described Africa, especially Sub-Saharan Africa, as the company’s “newest opportunity”. He said that the region is benefiting from fast-growing economies and strong population growth, and pointed out that today, SubSaharan Africa has a population of 800 million, a figure that should reach 1.8 billion by 2050. Citing data from consulting firm McKinsey, Philippe added that 100 million of Africa’s population has enough income to make purchases beyond basic needs, and that more than 20% is already part of the consuming middle class. C M Online sales in China Russian perfumeries Analysts have said that selling online in China is a must to reach young consumers who primarily shop there, as well as those living in tier-two, three and four cities who cannot find their favorite products in stores. While some customers migrate from offline to online, most online shoppers are a new and additional target group, which does not overlap with existing clients. Their main concerns are product quality and authenticity, followed by customer service. Indeed, industry watchers warn that the internet is a free market with no mature pricing or merchandising standards. L’Etoile, owned by Alcor & Co, is the leading perfumery and cosmetics chain in Russia, with a 27.3% market share. The retailer opened its first store in Moscow in 1997 and now has 754 outlets across the country. It also purchased the Bon Joli chain in 2011. Last year, the chain began to review its assortment by increasing the share of its mass-market products. Rive Gauche, Russia’s number-two perfumery and cosmetics retailer has also been putting more focus on offering products at affordable prices. It is concentrating on customers with average or above-average income and seeks to become a leader in the middleprice segment. Mass makes up 40% of its product range. 20 May-June 2013 - N°14 - BW Confidential Y CM MY CY CMY K http://www.bwconfidential.com

Table of Contents for the Digital Edition of BW Confidential - Issue #14 - May/June 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 Clarins Group ceo Philip Shearer
Insight: Skincare
- Category overview
- Skincare devices
- Retail case studies
- The latest trends
Retail
- Amazon
- Store concepts
Digital Facebook
Market watch: China
- Country overview
- Industry viewpoint
- National domestic airports
- Department stores
- Third- & fourth-tier cities
Travel retail
- Emerging Asia analysis
- Passenger profiles
- Interview: King Power Group Duty Free & Travel Retail Hong Kong managing director Sunil Tuli
Radar Up-and-coming brands
Emerging markets Company profile: VLCC
Packaging
- Industry outlook
- Differentiation techniques
Last word Brand Keys founder and president Robert Passikoff

BW Confidential - Issue #14 - May/June 2013