BW Confidential - Issue #16 - November/December 2013 - (Page 24)

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 Malaysia Malaysia’s stable economy and mature cosmetics market make it one of the most developed prestige markets in Southeast Asia, and industry players predict midsingle-digit growth in the years to come. According to Euromonitor, the mass and prestige segments combined saw sales of $1.82bn in 2012 and are forecast to grow 5.9% in 2013, with the strongest increases in skincare, which represents the lion’s share of the beauty market. Last year, prestige sales grew by around 5.5%, says distributor Luxasia Malaysia md Tze May Chung. “Innovative skincare, particularly whitening and anti-aging lines, continue to perform well, along with serums. In make-up, foundation is seeing strong growth,” says The Estée Lauder Companies Malaysia md Paul Slavin. Retail technologies Faced with the growing e-commerce channel, beauty players are turning to technology as a way of differentiating themselves and bringing customers back into stores. One trend in this area is devices that help with product choice, from virtual mirrors to analytical devices that provide a service akin to a medical prescription. Brands are adding such devices to merchandising units, often signing partnerships with technology companies like Canada’s Modiface or US-based Taaz, using their software for in-store and online tools. According to Modiface ceo Parham Aarabi, the ongoing economic crisis has seen brands increasingly choose generic tools like iPads over made-toorder kiosks, because they cost less and are more easily replaced. C M UK prestige retail The UK prestige beauty retail market is seeing a renewal. Retailers ranging from Selfridges and Harvey Nichols (pictured) to Marks & Spencer have revamped their beauty floors and introduced new concepts to put more of a spotlight on the category over the past year. Overall, retailers are seeing robust sales. “Business for us is terrific. We’ve seen the biggest increases in five years, with high double-digit growth in same-store, like-for-like sales pretty much across all categories. Color has performed particularly well, and appliances are also strong—that trend is not slowing down,” comments Space NK chief merchant Joyce Avalon. 24 Australia Y Australia’s economy may have escaped the worst of the global financial crisis, but the beauty market has seen its fair share of challenges. Retail trading in recent years has been at its toughest, with sales in the first half of 2013 bordering on negative territory. Total retail sales (seasonally adjusted) for June 2013 to July 2013 inched up only 0.1%, according to the Australian Retailers Association (ARA), while sales in department stores fell 0.7% during the period. The pressures are primarily tied to a strong Australian dollar, which created massive price differentials between local and overseas markets, making it a very expensive destination for shopping. On top of this, consumers have been cautious. November-December 2013 - N°16 - BW Confidential CM MY CY CMY K http://www.bwconfidential.com

Table of Contents for the Digital Edition of BW Confidential - Issue #16 - November/December 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 Coty ceo Michele Scannavini
Insight: Fragrance
Category overview
Regional breakdown
Launch strategies
The niche market
Retailer initiatives
Launch roundup
Strategy M&A analysis
Retail
The store of the future
Creative strategies
Store concepts
Digital Innovation strategies
Market watch: Brazil
Country overview
Natura & Grupo Boticário
International brand strategies
Prestige retailing
Trendwatch Upcoming innovation
Travel retail
Channel analysis
The CIVETs
Digital strategies
Interview: L’Oréal Luxe md travel retail worldwide Barbara Lavernos
Interview: WDFG global head of beauty Antonin Carreau
Radar Up-and-coming brands
Emerging markets Company profile: Shanghai Jahwa
Packaging
Luxury packs in the BRICs
Luxury innovations
Industry viewpoint
Last word Euromonitor International senior analyst beauty and personal care Oru Mohiuddin

BW Confidential - Issue #16 - November/December 2013