BW Confidential - Issue #15 - September/October 2013 - (Page 74)

Last word Guest column Power shift In our guest column, US-based marketing company The Young Group ceo Karen Young analyzes the changes taking place in the beauty industry and the opportunities and pitfalls they bring Upcoming trends The frequency of product launches has been reduced in recent years, as companies focus on substantive products and delivery systems that are truly newsworthy and have a shot at more than a year or two on the shelf. One area where there is real freshness is texture. Labs are taking inspiration from the food and medicine industries. Consumers love the sensory thrill of foams, gels, lotion sprays and waters, whereas they may have seen tired white emulsions in the past. Examples include Shu Uemura’s soft mousse tinted sunscreen, AstaLift’s Jelly Aquarysta, which has a clear red jelly texture, and Amore Pacific Moisture Bound Skin Energy Hydration Delivery System, a waterweight Asian moisturizer. Technology is also having an impact on the beauty industry, and e-commerce and mobile commerce continue to grow exponentially. We know that consumers who engage with a brand in multiple channels spend two to three times more than they do with uni-channel interaction. Sephora + Pantone’s Foundation Finder has made selecting a foundation less daunting, while L’Oréal’s Color Genius allows matching, blending or clashing nail lacquer color with apparel. Surely, the beauty industry will connect with technologies such as Google Glass, Nike + Fuelband, Pebble Watch and Withings devices. The possibilities are mind boggling. Focused, personalized, interactive, highly targeted products could be available in the blink of an eye—literally. New opportunities Consumers are looking for connected, integrated holistic products. There is more awareness (although still in its infancy) that health is a complex concept and that great skin and beautiful hair don’t happen in a vacuum. Nutrition, fitness, general health, sleep and 74 credit: stock.xchng “ Surely, the beauty industry will connect with technologies such as Google Glass, Nike + Fuelband, Pebble Watch and Withings devices. The possibilities are mind boggling ” The Young Group ceo Karen Young stress management must be part of the beauty equation. There is an opportunity for companies to connect and communicate with consumers, who have never been more open to this. The US is way behind Asia and Europe in the area of nutriceuticals—topicals and ingestibles—and their synergy still requires explanation. The impact of sleep deprivation on skin can be seen, as can hours in an airplane, yet few companies really include this information as part of their skincare story. The Scottish government has launched an app called Drinking Mirror, which shows the effects of alcohol on the face: puffiness, redness, lines and wrinkles. Surely, viewing the impact of bad diet, lack of sleep, stress, pollution, or too much sun can’t be far off. Shiseido recently launched a new skincare line called Ibuki, which targets Millennials, who may fall prey to “lack of sleep and less than optimal nutrition.” It’s a good start. We can’t discuss beauty trends without addressing DNA and Genome studies: The Organic Pharmacy in London provides DNA testing from GeneOnyx. A saliva swab is taken to analyze DNA and select the best, most appropriate skincare ingredients. The genetic results are analyzed using GeneOnyx CosMo technology to provide a list of appropriate skincare products: the ultimate in customization. What to watch out for Managing a mix of technology with the human touch will remain a challenge. Sephora’s Skincare IQ is brilliant and simple, while L’Oréal’s virtual make-up application is both entertaining and helpful. Nose, the concept store in Paris, has created a refreshing, personalized and techsavvy approach to fragrance selection. Overall, we as an industry have a long way to go. If you’ve used Starbuck’s or Delta’s apps, you understand the possibilities of what technology, coupled with true customer relationship management (CRM) can really provide. It changes the way we interact with a brand. Health and fitness apps will increase by 63% in the next four years and wearable devices will be common for tracking and monitoring exercise, calories, vital signs and medication. We’re not doing enough exploring and imagining the future. As my mentor, Leonard Lauder, says, “If you can’t see the future, you can’t get there.” n The Young Group is a global marketing company with clients in the beauty, home, health and hospitality industries. It manages brand creation from research to product development and sell-through. 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