BW Confidential - Issue #15 - September/October 2013 - (Page 14)

Best of 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 Beauty insight Prestige haircare More investment on the part of retailers, coupled with the arrival of new players, is making for a dynamic prestige haircare market. According to figures from Euromonitor, global prestige haircare sales grew by 5.7% last year to reach $7.79bn; the segment now accounts for just less than 10% of the global haircare market. “Everyone is realizing that prestige haircare is becoming the fourth pillar of beauty; the marketplace is awakening to the opportunity that the category represents,“ Bumble and bumble president Peter Lichtenthal tells BW Confidential. More initiatives from department store and perfumery retailers are making the category more visible in-store and brands are upbeat about the category’s future. Men’s skincare Men’s skincare continues to see steady growth. According to Kline & Company, global sales reached $13.35bn in 2012, and the research firm is forecasting compound annual growth of +3.1% over the next five years, to reach more than $15.5bn in sales by 2017. This is partly due to new prestige and niche brands in the category, more targeted and premium products, and increasing online business. Marketers have also put a renewed focus on shaving rituals—the gateway to more sophisticated skincare regimens. Emerging markets are a big source of growth. Kline notes that men’s skincare in China is seeing the second-fastest growth in Asia at around 15% last year. India, meanwhile, reported an increase of around 32% in 2012, albeit from a much smaller base. In Latin America, consumers’ increasing disposable income is stimulating men’s grooming sales. The German market Prestige retail in India The German market has seen upheaval in the past year. Retailer Schlecker, which controlled the lion’s share of the drugstore market, began closing its network of more than 5,000 doors last summer, while perfumery chain Douglas was taken over by private-equity fund Advent International in January. According to industry association IKW, Germany’s C&T market grew by 1.4% (mass and prestige combined) to reach sales of €12.85bn last year. The prestige segment, which makes up around 23% of value sales, saw growth of 3.6% over 2011, according to perfumery retailers’ association Bundesverband Parfümerien eV. But although the market may be in a state of flux, more than 40% of prestige retailers polled this year by Bundesverband Parfümerien eV are expecting a positive 2013. While prestige beauty in India continues to grow at a rate of more than 20% per year, the lack of quality retail is still holding the market back. In 2012, the premium beauty market in India was worth Rs17.52bn ($315.3m), according to industry sources, a 20% increase over 2011. “The main issue is that there are still a limited number of developers who understand what luxury is,” says Gopal Asthana, business head at department-store chain Shoppers Stop, a leading player in the premium beauty market that has 55 locations across the country. “In addition, since organized distribution is limited, a lot of consumers are buying abroad and they are only slowly getting accustomed to shopping for premium beauty at home,” he adds. 14 September-October 2013 - N°15 - BW Confidential http://www.bwconfidential.com

Table of Contents for the Digital Edition of BW Confidential - Issue #15 - September/October 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 Origins, Ojon & Darphin global president and gm Jane Lauder
Insight: Fragrance creation
Category overview
Industry views
Emerging markets
Consumer data
Role of the perfumer
Retail
Store strategy
Store concepts
Digital Beauty apps
Market watch: Chinese consumers
Overview
Shopping habits
Online sales
Radar A profile of six up-and-coming beauty brands
Travel retail: Inflight sales
Sector analysis
Channel innovations
Emerging markets Company profile: Marico
Packaging
Make-up analysis
Make-up innovations
Last word The Young Group’s Karen Young on industry trends and technology

BW Confidential - Issue #15 - September/October 2013