BW Confidential - Issue #15 - September/October 2013 - (Page 70)

Tough times An analysis of the state of the make-up packaging market by Alissa Demorest T ighter cost imperatives and a slowdown in Europe are making for a complex make-up packaging market. “Our clients are hesitant when it comes to new initiatives, and although there is a lot of talk about innovation, we aren’t seeing much. Brands seem to be at a standstill. They are revisiting their existing products, but with slightly different decorations; they don’t want to take risks,” packaging specialist Axilone general manager Marc Cooper tells BW Confidential. Ludovic Anceau, ceo of sampling and monodose supplier Bioplan agrees. “Our clients are looking more at the short term, and they are also more demanding in terms of costs and lead times.” Topline Products Europe general manager Jean-Luc Haulet goes further, describing today’s market as being “weak”. “The market is bolstered by standards, but there is little development going on, and we have no visibility for the future. At our level, we are doing well, but it’s more repeat business than new developments, so we’ll feel it next year.” He adds that there are also too many suppliers offering the same products, which makes for an excessively competitive marketplace. Squeezing costs The business is slower in Europe due to the economy and sluggish consumer demand (the US, however, has picked up in the first half of the year). Brands are also putting more pressure on suppliers to provide quality packs, but at increasingly lower costs. As a result, suppliers are looking to more automated processes and leaner management structures. US brush supplier Anisa, for example, aims to boost productivity at its production site in China. “Good processes have quite a rapid impact on our bottom line. It’s about measuring and gauging what each process can bring, which is not something we looked into before. This also means that we can exert some control over increasing costs in China,” explains Anisa ceo Anisa Telwar. Although costs are climbing in China, they still 70 credit: istock Packaging Make-up analysis remain reasonable compared to Europe. Yet packagers are beginning to hear demands from clients to re-localize production back to markets in, or closer to the US and Europe. “Since 2009, our clients have been increasingly attentive to “ The market is bolstered by standards, but there is little development going on, and we have no visibility for the future. We are doing well, but it’s more repeat business [...], so we’ll feel it next year ” Topline Products Europe general manager Jean-Luc Haulet their inventory levels and so time-to-market has become paramount. Re-localization will happen partially and over time—we won’t see 100% of manufacturing make a comeback, but I do see a possibility for certain high-volume lines,” Cooper notes. “Whether clients want to pay more for that is another story—I think we’ll have to be particularly inventive when it comes to automation,” he adds. Topline’s Haulet explains that most production in China will stay there for quite some time, given the myriad of technologies in place, including injection, hot-stamping, silk-screening, lacquering and metallization. September-October 2013 - N°15 - BW Confidential

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