BW Confidential - Issue #17 - March/April 2014 - (Page 45)

Retail Insight: Make-up credit: istock Selling smarter How can retailers and brands improve the way they sell color cosmetics? by Alissa Demorest ake-up is the perfect category for adding excitement to stores, so why aren't events and animations the norm? The cost of such operations remain a barrier, yet the growing popularity of budget color-brand retailers, like Italy-based Kiko (see article, p.36) are creating a more pressing need for a dynamic retail experience elsewhere. "It's more important than ever that retailers evolve with their consumers to keep the experience fun and engaging. Ultimately now, there are more options, so brands have to work harder to provide an outstanding shopping experience that will foster loyalty. Sticking with the old models is not going to work," Nars Cosmetics ceo Louis Desazars tells BW Confidential. A few notable efforts to create excitement have cropped up in the past year, such as LVMHowned Make Up For Ever's temporary shopin-shop at Sephora's flagship on the Champs Elysées in Paris last May. The 50m2 (538ft2) space stocked nearly 700 skus and held live make-up demonstrations, body painting, group make-up lessons, and areas dedicated to eyes, March-April 2014 - N°17 - BW Confidential lips and complexion. Stations within the shopin-shop offered flash make-up applications, shoppers could have their make-up brushes engraved, and makeovers were free with a purchase of €60 or more. This kind of operation can be a worthy investment; Make Up For Ever " Simplifying the message by segmenting key trends, categories and top sellers will help to elevate customer service and retail sales " Urban Decay gm Tim Warner is now Sephora's top-selling prestige make-up brand in Europe, according to industry sources. In addition to shop-in-shops, Sephora aims to get consumers to play with the products. For example, it set up dedicated areas for nail products, where shoppers can learn about the latest trends and technology in the category. "The segment thrives on innovation, and we still see tons of consumers playing in the nails category," remarks Sephora marketing director Europe Elizabeth Anglès d'Auriac. NPD Group vice president and senior global industry analyst Karen Grant notes that while other retailers "put the product out and wait for the consumers to come," Sephora keeps a constant buzz around the category. When it comes to encouraging experimentation, masstige color brand NYX Cosmetics vice president of business development Jeffrey Ten believes that maximizing space is key. He says that the brand's displays are designed to fit 60 skus, whereas prestige brands will put in 20 or 30 at most. This way, the consumer has more product to test and play with, which expands the number of items she can purchase. L'Oréal-owned Urban Decay general manager Tim Warner says that the make-up nnn M 45

Table of Contents for the Digital Edition of BW Confidential - Issue #17 - March/April 2014

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 Guerlain ceo Laurent Boillot
Insight: Make-up
Category overview
Budget brands
The latest trends
Retail
Innovative strategies
Retail
Vending machines
Store concepts
Digital Social media content
Market watch: Latin America
Regional overview
Mexico: country analysis
Mexico: prestige retailing
Colombia: country analysis
Colombia: prestige retailing
Argentina: country analysis
Argentina: prestige retailing
Radar A profile of six up-and-coming beauty brands
Emerging markets Company profile: Mahogany
Travel retail: Brazilian travelers
Analysis
Industry viewpoint
Packaging: Decoration techniques
Trends analysis
Innovations
Last word Diagonal Reports analyst Jacqueline Clarke

BW Confidential - Issue #17 - March/April 2014