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Comment What’s the alternative? Inside 2 Retail insights Travel retail 3 Tech bytes Netwatch 4 Trending Companies to watch

5 Data Around the world 6 Interview Clé de Peau Beauté

8 Zoom in on Fragrance in France

10 Seen in show Luxe Pack Monaco

14 In case you missed it

Online, along with travel retail, is often cited as one of beauty’s fastest-growing distribution channels. However, for many brands

this growth is still not compensating for the difficult brick-and-mortar landscape in many markets, especially in the US and the UK, which have both been marked by high-profile store closures. Indeed, one beauty executive recently told BW Confidential that with brick-and-mortar still accounting for 80% or more of the beauty market in many regions, it will be a long time before an alternative—online or otherwise —will represent anywhere near a majority share, making the need to jump start physical retail urgent. This is one reason why UK department store Harrods’ recent move

to open beauty standalone stores looks like an interesting initiative. Harrods no doubt sees a gap to fill amidst the bankruptcies of key department-store names and the troubles of pharmacy and beauty chain Boots. Harrods says that with its new retail venture it wants to bring its take on beauty (an edited assortment of high-end and up-and-coming brands combined with services) to a wider audience in the UK. It could be the alternative that the UK market needs.

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Travel retail

Horizon Consumer Science president Ian Cesa on the growth of beauty spend among international travelers

“International travelers from around the world are spending about $46bn on beauty products when they travel. At a time when the total amount that international travelers spend on goods is declining, beauty is one of the few categories that is growing, up from $40bn in 2012. The duty-free and travel-retail channel—which is made up mostly of airport shops as well as cross-border and cruise and ferry shops—captures about $24bn in spend. Some $22bn is spent outside the duty-free and travel-retail channel, in department stores, specialty shops, pharmacies and supermarkets.”

For more information: www.horizonconsumerscience.com. Contact Ian Cesa at [email protected]

Retail insights• Douglas has launched what it calls the first beauty marketplace in Europe. The German retailer is initially adding some 10,000 products to its online shop as part of its ‘partner program’, which will include exclusive brands and will roll out in Germany first before expanding across Europe. Shoppers will be able to browse products as usual and will be informed at check-out whether shipping will be done by Douglas or a partner. Douglas calls the platform economy the business model of the future.

• DTC brands are partnering up to drive growth through marketplaces. Examples include online bedlinen company Brooklinen, which opened e-commerce site Spaces, through which other DTC brands sell their wares. In a different iteration of the DTC partnership, beauty brand Glossier has collaborated with dog toy brand Bark, to create chew toys in the shape of its hero products.

• Selfridges has added sustainability labels across its fashion, beauty and lifestyle offer. The luxury retailer wants to make planet-friendly products easy to find, with new categories including Responsible Leather, Vegan, Reducing Waste, Forest-Friendly and Cruelty-Free.

• Skincare company Versed has launched an SMS service called Skincare Hotline. The service aims to answer customers’ skincare questions while building Versed’s customer profiles for its CRM as well as developing its community.







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San Francisco-based Tribe Dynamics shares exclusive data about beauty trends and brands making waves on social media

Kat Von D Beauty’s Go Big Or Go Home Mascara inspires influencer loyaltyKat Von D Beauty powered $930.5k in earned media value (EMV) in France in August, a notable 25% month-over-month growth outside the top 10. The brand’s Go Big Or Go Home Mascara remained an influencer favorite, generating $124.9k EMV and defending its position as the brand’s number-one product. Over half (eight)

of the 14 content creators who shouted out the mascara this month had also mentioned it last month, including all five of the product’s top ambassadors—a testament to the product’s loyal following.

Tribe Dynamics is a San Francisco-based software company that helps beauty, fashion and lifestyle brands drive and measure digital earned media at scale. For more stories and rankings of top brands and products in international beauty, check out Tribe Dynamics’ August Tribe Top 10 report for France here.

Tech bytes

• Shoppable, user-generated content seems to be working to boost interaction and sales for retailers online. Fashion retailer River Island saw a 45% increase in average order value (AOV) since the introduction of a gallery of such content on its website, it says. The retailer has said shoppers also spent three times longer on its website.

• Indian billionaire Mukesh Ambani is reportedly building a digital services company with the aim of rivaling shopping platforms Amazon and Flipkart. With Chinese online giant Alibaba as a model, Ambani is set to create a digital subsidiary of his oil and chemicals group, Reliance Industries, which will focus on mobile phone operations, e-commerce and other online services.

• Some forward-thinking beauty companies are moving advertising budgets from social-media TV streaming platforms such as Hulu and Vudu. With the cost-per-click rising at lightning speed, players such as lip-care brand Eos are said to be looking at ways to tell a brand story through video ads on platforms with longer view times.

• Snap Inc, the parent company of social-media app Snapchat, is launching dynamic advertising, which targets audiences in real-time with automated ads. Platforms such as Facebook already offer dynamic ads, which choose a product from an advertiser’s catalogue to appear in the newsfeed of a user with relevant interests.

Netwatch







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Trending

Companies to watch

Uoma. The LA-based inclusive make-up brand was founded in 2019 by Nigerian-born former LVMH executive Sharon Chuter. Inspired by Africa’s ethnic diversity, the brand’s products are not just available in a wide range of shades, but take into account its different consumers. For instance, its Say What?! Foundation comes in 51 shades but also has ingredients that can reduce sebum production or redness, according to various skin needs. Uoma is sold through Ulta Beauty, Selfridges, e-tailers such as Beauty Bay and its own e-commerce site.

Ursa Major. Founded in 2010 and based in Vermont, US, Ursa Major makes non-gendered, clean, ‘low maintenance’ skincare products with a minimalist aesthetic. The company recently raised $5m in an investment round led by US-based Fenwick Brands, with plans to fund product development and recruitment. Prices range from $6.50 (Essential Face Wipes, 5-pack) to $54 (Brighten Up Vitamin C Serum).

Tower 28. The California-based non-toxic cosmetics brand offers products for sensitive skin, made with ingredients that claim to be hypo-allergenic, non-comedogenic and gluten-free. Founded by beauty veteran Amy Liu, the brand currently has four skus ranging in price from $12 (SOS Daily Rescue Facial Spray) to $20 (BeachPlease Luminous Tinted Balm). Tower 28 uses microinfluencers to spread the word among its target gen Z and millennial consumers, and has recently been added to Sephora’s online offer.

Glossy lips will be a go-to look next spring,

demonstrated by the likes of Chanel and its juicy,

shiny ‘wet look’ lips on the SS 2020 runway.

There is a growing focus on visibly hydrated skin and

treatments that give a ‘moist skin’ look. Hydrafacials,

during which skin is cleansed and exfoliated, then treated

with moisture-boosting serums, are gaining ground in

salons.

Eyelash extensions could be replaced by a new trend towards lash lifts—described as being

like a perm for the lashes—according to a report from business directory Yelp.

Chinese consumers are said to be dropping K-Beauty and its uniform make-up aesthetic, in

favor of beauty looks that express individuality and authenticity.

Beauty shoppers in China are reportedly looking for domestic

and Western brands to help them express their own identities.







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DataAsia Pacific travel retail

• Asia Pacific travel retail is forecast to grow 8.7% per year between 2017 and 2022, according to a study commissioned by the Duty Free World Council (DFWC) and the Asia Pacific Travel Retail Association (APTRA).

• Asia Pacific travel retail generated an estimated $36.2bn in 2017, accounting for 45.2% of total global duty-free and travel-retail sales. This is up from 21% in 2000.

• East Asian markets are driving growth, accounting for 79% of all duty-free and travel-retail sales in the region. Korea is the world’s largest duty-free market, with sales of almost $12bn in 2017.

• Demand for beauty and cosmetics products grew faster in the Asia Pacific region, at 20% between 2016 and 2017 than it did globally (+14%). Haircare, men’s fragrances and dermocosmetics are proving particularly popular.

Around the world • China’s Alibaba officially launched its annual 11.11 Global Shopping Festival on October 21 in Shanghai, with a live-streamed Tmall Collection show.Alibaba said the first day of 11.11

pre-sales booked record figures, with nearly 100 new products launched on Tmall each seeing volume topping RMB10m ($1.4m), more than double last year’s first day of pre-sales. Beauty brands especially, performed well, with Estée Lauder recording RMB500m ($70.98m) in transaction volume in the first 25 minutes, which exceeded last year’s total.Sisley sold out 5,000 bottles of lotion,

Shu Uemura and Pikachu sold 13,000 limited-edition cleansing oil gift sets in 10 minutes, and MAC and Chinese designer AngelChen sold 10,000 items from their limited-edition cosmetics line in 20 minutes.This year’s 11.11 will see 200,000

brands participate, offering more than one million new products to 500 million users, 100 million more users than last year, according to Alibaba. Last year, the 24-hour shopping

extravaganza booked $30.8bn in sales.

Nothing is more attractivethan a relaxed face

Sin título-1 1 28/08/2019 12:11:35






Seen in show

You have just unveiled a new version of La Crème. What are your objectives for this launch? YS: La Crème symbolizes our DNA and is our iconic product. What we are doing in the mid-term and the long term is to elevate the brand equity of Clé de Peau Beauté. We aim to achieve two goals: Be a luxury brand and a brand associated with high technology, and the launch of La Crème will help us to achieve this. [Currently] La Crème contributes 7% of sales to the Clé de Peau Beauté portfolio, and it could reach 10% to 15%. We also launched Key Radiance this fall, and with both La Crème and Key Radiance we aim to accelerate our skincare business. Clé de Peau Beauté achieved its 2020 [sales] goal three years earlier than forecast.

The brand has just launched in the UK. What are your ambitions to expand internationally? YS: The biggest market is still Japan, which represents 50% of turnover, but the natural course of investment is to expand business overseas. The regions driving growth are mainland China and travel retail, where the Chinese are present. China accounts for around 15% of our total sales. The opening of Harrods is important for the UK, but also has a much bigger

impact internationally. [Our] distribution [strategy] in Europe is about where we can have the right representation of the brand. The next step will be to enter Spain and Italy at the beginning of next year. For the US, [where the brand is sold through 300 doors] the market is seeing a very difficult situation given the department-store closures. We are looking at the next possibilities for expansion in this market. We started working with Net-à-Porter at the beginning of the year.

How will you build awareness of the brand internationally? YS: The most important touch-point is the point-of-sale and the experience and service we give to the consumer. Experience at the pos is spread through word of mouth and digital platforms. We have specific measures to target the Chinese. In 2018 we started to work with Chinese celebrity Zhang Ziyi, which has helped us a lot in terms of awareness in China.

”Clé de Peau Beauté chief brand officer Yukari Suzuki

What we are doing in the mid-term and the long term is to elevate the brand equity of Clé de Peau Beauté. We aim to achieve two goals: Be a luxury brand and a brand associated with high technology

“

Interview Clé de Peau Beauté chief brand officer Yukari Suzuki & Shiseido Travel Retail vice-president of marketing and innovation Elisabeth Jouguelet

Shiseido is looking to push its high-end Clé de Peau Beauté brand internationally. Clé de Peau Beauté chief brand officer Yukari Suzuki talks about her objectives for the brand, while Shiseido Travel Retail vice-president of marketing and innovation Elisabeth Jouguelet explains how she sees the development of Clé de Peau Beauté in the travel-retail channel


s Clé de Peau Beauté just unveiled a new version of La Crème






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”

The brand was re-launched in travel retail last year. What are your ambitions for the brand in the channel?EJ: Last year, Shiseido Travel Retail’s skincare portfolio experienced 44% growth, achieving fifth position globally in the travel-retail skincare market. Clé de Peau Beauté was a significant contributor to this performance, growing by more than 40% in 2018. Our ambition in travel retail is to grow faster than the market and help Clé de Peau Beauté become a leading global luxury cosmetics brand by 2023. Our strategy is to increase our international footprint by driving productivity in the Americas and accelerating strategic expansion in EMEA. In Asia, we will continue to focus our marketing efforts on the Chinese consumer.Travel retail is a great platform for building brand image and driving awareness, which will have a positive effect on sales in local markets. We are also increasing our investments in our digital campaigns. Specifically, for the Chinese market, we will soon launch our first Clé de Peau Beauté Travel Retail WeChat account to further engage with this demographic.

What are your targets for new markets like EMEA travel retail? EJ: Entering the EMEA travel-retail market is a major milestone. It is still in the early stages and our biggest focus is on building further awareness and leveraging the brand’s growth in Asia Pacific travel retail to recruit new customers. EMEA accounted for 59% of international air travel in 2018 and is also the second-largest region after Asia Pacific to be visited by Chinese travelers, an important customer base that has been the driving force behind Clé de Peau Beauté.In terms of distribution, we chose to launch in Dubai International Airport as

it is a major gateway to Europe and Asia. Asian travelers also make up 60% of skincare customers at Dubai International Airport. Istanbul Airport was chosen as it services more than 110 routes and boasts

15,000m2 [161,459ft2] of shopping space, and upon its completion in 2028, it will be the largest duty-free shopping zone globally. In 2020, we will look to open in similar top-tier travel-retail locations with a strong Chinese passenger base. Distribution will be selective.

You have freestanding stores in some markets in Asia. Will your open more? YS: Freestanding stores are an ideal way of going into the market as we can have a full fledged brand experience. We have six stores, which are in Asia, and we are increasing the number of doors in various cities. But we will only expand when we find the right real estate, as the location comes first. n

Interview Clé de Peau Beauté chief brand officer Yukari Suzuki & Shiseido Travel Retail vice-president of marketing and innovation Elisabeth Jouguelet


s Clé de Peau Beauté’s counter at Dubai Duty Free

Shiseido Travel Retail vice-president of marketing and innovation Elisabeth Jouguelet

Our ambition in travel retail is to grow faster than the market and help Clé de Peau Beauté become a leading global luxury cosmetics brand by 2023

“






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Zoom in on: Fragrance in France

The survey revealed a new appetite for fragrance from French consumers. Some 60% of those interviewed said they use more fragrance than in the past (compared with 56% in the 2018 survey), while 62% said they buy more fragrance than in previous years (versus 54% in 2018). Compared with 2018, 66% stated that they ‘often or regularly’ buy in a virtual store (through desktop, tablet or mobile), an increase of six points on 2018. Some 79% ‘regularly or sometimes’ share information relating to fragrance on social networks compared with 75% in 2018. The physical store remains, however, the preferred place for testing and buying fragrances—97% of those surveyed buy ‘sometimes or regularly’ in a brick-and-mortar store.

More interest in raw materials“In our interviews, we noted for the first time a consumer desire for emotion, sensoriality and a connection with raw materials” explained Évelyne Redier, founder of consulting firm HigherTogether, which analyzed the survey results. “People talked to us about flowers, animals or a magical world, and very little about fashion or spokesmodels. Some years ago, they had a relationship with fragrance where they were more on the outside; today they want to know about raw materials, olfactive families and perfumers,” she continued. This can be linked to corporate social responsibility (CSR), which was one of the

questions in the survey. Luce Grossetête, consultant for the firm Beauty of Change, commented: “Fragrances are considered as less polluting than cosmetics, as you buy fewer of them and they use less plastic. They are more associated with luxury, art and craftmanship. However, 76% of those questioned said they were concerned by CSR when it comes to fragrance. ‘Made in France’ as a purchasing criteria was important for 84%, ahead of environmentally designed products, sourcing, social responsibility, reducing the impact of manufacturing and transport, all of which were important for 80%. Some 76% think that companies should communicate more on their CSR initiatives, but they add that they don’t just want to hear companies talk about this, but want to see action.”More is expected of the big brands than the niche players on this issue. However, niche

players have a card to play when it comes to putting the focus on the perfumer, the harvesting of raw materials, going backstage in the fragrance-creation process and taking an approach to transparency. “The creative process is attracting very strong interest,” states Redier. Images of natural raw materials associated with the idea of quality, sillage and a wide palette are areas worth pursuing. Another area of development is fragrance gestures. Some 54% of those interviewed say they re-apply fragrance throughout the day and that the packaging should adapt and take this into account.” There also needs to be more value put on fragrance as a gift, especially on sets

or creative workshops. The olfactive experience, the first reason to try or purchase, should be emphasized by sampling and advice at the point of sale that is adapted to the

The Fragrance Foundation France unveiled the results of its most recent survey* on French consumers’ attitudes to fragrance at an event in Paris in October. BW Confidential, the only trade media to attend the event, exclusively reveals the key findings


*The Fragrance Foundation France conducts a survey on consumer attitudes and expectations on fragrance every year, alongside the voting process for the Consumer Choice FIFI Award. Some 8,777 people participated in the 2019 survey, 91% of whom were women and 9% men.






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Zoom in on: Fragrance in France

consumer, says Redier. The pre-selection and relevance of samples, promotional offers and quality of advice are the top-three drivers when making a purchase, according to the study.

Man appeal Another interesting area in the survey is male fragrance. Of the 800 men who took part, 79% said they shared information on social networks, mainly Instagram, Twitter and Snapchat. According to NPD, sales of men’s perfume extracts were double that of women’s year-to-date June 2019, an indication of the appeal for stronger concentrations and a reflection of the launches in this segment in recent months. The Fragrance Foundation recommends targeting men aged under 35 and who are

curious about new products. Consulting company Mazars Zettafox used its Artificial Intelligence tool to highlight different categories of men who are attracted most by fragrance. It identified, for example, those who it terms ‘constant searchers’ (15% of those surveyed), who are on the lookout for the ideal fragrance, use social networks, are influenced by advertising and susceptible to CSR initiatives. The ‘Innovative trend-trackers’ (14% of those surveyed) are Gen Y and Z consumers attracted by successful new products and who re-apply fragrance throughout the day. Although fragrance sales have been in decline in France for 10 years, there are nonetheless under-exploited pockets of growth, and consumer interest in the category—it is just a question of capturing it. n






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Seen in show: Luxe Pack Monaco 2019

On show Germany-based Geka showcased its pureOBSESSION collection, which includes a mascara, lip gloss, liquid concealer, liquid eyeshadow and a make-up brush, presented in a clutch bag. The collection includes Geka’s new charmingLASHES brush, made with a two-component EOSbombyx2K fiber, a special notched fiber structure designed to achieve a high-volume effect. The two-component fiber has a soft outer shell for a smooth and comfortable application, while the stiff fiber core helps to lift lashes and give a curling effect, the company says. The packaging has a special cap decoration featuring flake lacquering and a double anodization of the bottle.

France-based glass manufacturer Verescence exhibited its new lightweight and recycled glass packaging concept, created in partnership with Symrise, Centurybox Group, LTU Tech, Technicaps and Aptar. Called 10 by Verescence, the bottle and jar are made from 100% recyclable and refillable high-end glass in Verescence’s patented Verre Infini Neo (made of 90% recycled glass). They are decorated with Verescence’s patented, ‘eco-designed’ inks, housing products that contain only 10 ingredients and are connected to a visual recognition system to facilitate traceability.

Materials science company Dow showed a line of perfume caps containing recycled materials developed in partnership with Italian perfume and cosmetics packaging company Premi. The caps are made with 40% recycled Surlyn, an ionomer resin, which is recovered from industrial plastic waste, ground and then integrated into a new production process.

Texen showcased its first eco-designed mascara, called the We‘R Mascara. Made from PCR or bio-sourced materials, it was presented with an eco-friendly brush made by brush maker Ponzini. The pack was made to be as generic as possible, and thereby suitable for a broad range of applications and brush shapes.

BW Confidential reports on innovations and key talking points at the 32nd edition of Luxe Pack Monaco, which took place from September 30 - October 2


Luxe Pack MonacoTook place: September 30 - October 2, MonacoExhibitors: 470Visitors: 9,240 (+14% vs 2018): 52% international, from 98 countries






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Sustainability and digital were front and center in Albéa’s developments shown at Luxe Pack. Innovations shown included the Endless Kiss refillable lipstick cases (pictured), offering clip-in or magnetic fixtures, as well as the Paper Kiss lipstick pack clad in paper. Mascara and gloss packaging options made from 100% post-consumer recycled resin (apart from the brush) were also on show. New reduced-weight and eco-designed tubes and caps like the GreenLeaf

laminated tube and designs with higher PCR content were an area of focus. The (Re)flex tube, a new laminate tube, aims to offer the look of aluminum but in a version that can be recycled in regular PE streams. When it comes to digital, Albéa presented new technology that allows it to

create a unique QR code for each unit of product. Initially offered as a tube, the product can link to content according to its localization—whether in the factory, in a store or elsewhere, and provide tailored information as a result, for example on supply chain or how to recycle, as well as branded content.

US-based plastic packaging group Berry showed its range of ‘e-commerce ready’ standard personal-care packs, which comply with the six protocols of the ISTA standard for optimizing packs to survive shipping and handling. The packs, which include best-sellers Magic Star, Magic SL Twist-Up, Empress and Empress Light, have all been certified ‘ISTA-6’ by an independent laboratory.

Silgan Dispensing has expanded its PCR beauty and personal care portfolio in Europe and showed off its latest addition, the P2000 dispenser. Suitable for products such as lotions and moisturizers, the dispenser features Silgan’s Pure Path metal-free fluid path, used for highly sensitive formulas. The company also now offers a wider range of colors for its PCR products,

with 80 different shades available to customize select pumps and sprayers from Silgan’s range.

Dispensing company Aptar exhibited its Star Drop foundation pack, featuring a valve that aims to deliver a highly accurate dose. The ergonomic and intuitive design claims to guarantee a controlled, hygienic and waste-free application. The pipette holds patents for its cut-off base, which avoids squirts, and the tip, which is designed to form a perfect drop. The dispenser can be unscrewed and reused, while the bottle is made from recyclable PP.

Contract manufacturer Anjac Health & Beauty showed its Naturality Collection, a new range of formulas with a maximum level of natural ingredients. The range includes the Flower Oil Serum, which contains 99% natural ingredients and features helichrysum rose petals for a striking visual effect. Also part of the range is the light and silky Minimalist Face Cream, which is formulated with just eight ingredients that are sourced in Europe and which are said to be 99.97% natural.

Cosfibel Group showed its new collection of coffrets, inspired by four main trend profiles. The collection includes Tokyo (pictured), in an urban streetwear style, which has a base made from transparent red PMMA and a logo in two-tone TPU; and Los Angeles, which is clad in concrete-effect paper and features lightly hot-stamped décor.






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Talking heads: The industry on the global packaging market“Sustainability is definitely bigger in Europe [than in other markets]. There are different perspectives in the US—there are a lot of very strong eco brands, [while] others [don’t care]. But I think it’s just a question of time. In Korea and Japan there’s certainly an awakening about environmentally sustainable solutions, but I haven’t seen it in China, [as there] everybody is trying to manufacture and sell as much product as possible.”Quadpack ceo & co-founder Tim Eaves

“Now, [our clients] really want to have an impact on the pack. Before, it was [more about production]. They’d ask how we manage rejects, the kind of electricity we use—is it green? Are there any toxic, blacklisted products in our plastic, and so on. Now, that is a given and you have to have it. Today, [our eco footprint] has to be on the product and seen by the end consumer. The big difference is also that the consumer is less loyal and on this criteria, they will change [brands] if one is seen as more sustainable.”Aptar marketing director EMEA BU Skincare & Color Cosmetics Patrick Bousquel

“[Clients are now] getting down into the material science a little bit more and we are having robust discussions around what is recyclable and what is not. In some cases they have an opinion, and in other cases they’re asking us. So there’s this interesting dialogue going on between suppliers, brand owners and also independent consultants and industry groups. There’s a lot of technology moving really quickly, but there’s also a lot of misinformation. So in [this area], where there’s a lot of confusion, I would say we’re having significantly more discussions around, ‘what exactly is that

material and how does it work in the recycling stream?’ Or, ‘How does it work in terms of how it’s sourced?’”Silgan Dispensing vice president marketing John Ferro

“There’s a paradox today in that consumers want to order their products on the internet and have them delivered at home, but they also want it to be green. We try to be able to provide both, but there’s still a long road ahead. I think about the transporter and his emissions driving the products to your home. We have to go further than the marketing claim. As plastic producers we are

fighting against a notion that glass is more sustainable. It’s not—we have proof that a jar in heavy glass and one in heavy plastic have exactly the same life cycle, because the electricity consumption is the same. There are brands that realize that by switching to glass, the product will be heavier and pollute more in being transported, while there are brands for which the choice of glass is a marketing claim.” Berry marketing manager Delphine Roux








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“It was unimaginable a few years ago [for brands to showcase their suppliers] but today brands are proud to show off that they’re working with local producers. So we have to be transparent about our CSR initiatives—that’s why we’re communicating them globally.”Verescence marketing & communication project manager Céline Le Marre



Key trends from the show

• Bio-based materials. Companies including Geka are looking at new materials, like sugar cane, to incorporate into items traditionally made from plastic, such as mascara packaging.

• Reusable packaging. One of the biggest topics at the show, reusable packs are increasingly being embraced by luxury brands.

• Durability. The rise of e-commerce means packs now have to withstand rough handling in distribution centers.

• Monomaterials. If a ‘green’ pack contains parts that have to be removed before it can be recycled, chances are it will end up on landfill. Brands are now looking for solutions, such as Cosfibel’s all-cardboard coffrets, which have an innovative closing mechanism to omit the need for magnets.

• Glassification. Glass manufacturers are seeing a rise in cosmetics brands wanting to switch from plastic to glass in a bid to be seen as high-end and eco-friendly.

• Travel sizes. Miniature make-up continues to popular with young consumers.

• Traceability. In the fight against counterfeit products, packaging companies are exploring solutions such as visual recognition that can help trace products.






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In case you missed it

Firmenich to create JV with Turkey’s MG International

Barneys sold to Authentic Brands Group

Harrods to open standalone beauty stores

L’Oréal’s third-quarter sales up 7.8%

ELC sees double-digit sales growth in first quarter

Coty appoints Richard Jones global chief supply officer

ELC appoints Sue Fox vp & gm of UK & Ireland

Shilla takes 44% stake in 3Sixty

Nordstrom opens NYC flagship

L’Oréal invests in fund for beauty tech start-ups in China

Sophie Labbé leaves IFF for Firmenich

AS Watson Group appoints Malina Ngai ceo AS Watson (Asia & Europe)

Interparfums SA sales up 9% in first nine months

Go to bwconfidential.com for full stories and daily news updatesSubscribe


www.bwconfidential.com N°40 October-December 2019

InterviewAS Watson Group group md Dominic Lai

Market watch: EuropeThe state of retail in Europe’s big five markets

Travel retail specialThe impact of digital on the channel’s business models


BW @ 10INVENTING THE FUTURE

Insight: FragranceData, digital & how to better sell scents


BEAUTY

Comment Positioned for growth Inside 2 Retail insights Travel retail 3 Tech bytes Netwatch 4 Trending Companies to watch

6 Interview The Body Shop head of global travel retail Alexandru Mihaila

7 Zoom in on Estée Lauder Companies

10 In case you missed it

INSIGHT

There has been a string of negative geo-political and economic news in recent months. Analysts warn that a recession is looming, worries over the impact of the US-China

trade dispute continue to deepen, South Korea and Japan are busy with their own trade war, economic news from Germany is bleak, the prospect of a no-deal Brexit looks to be nearing a reality, US retail data is far from rosy, the political and economic crisis has taken a turn for the worse in Argentina, protests in Hong Kong are set to deal a blow to the economy in the region…and the list goes on. However, despite this cocktail of turmoil and tension, the beauty industry is showing

itself to be resistant. Estée Lauder Companies reported a 9% increase in sales in its fiscal fourth quarter ending June 30. It added that even factoring in the litany of geo-political and economic uncertainty, it still expects to report sales growth of between 7% and 8% for fiscal 2020—at the high end of its targets—and forecasts that the global prestige beauty industry will grow at a rate of 6% to 7% in the next fiscal year. L’Oréal may have seen its second-quarter sales come in slightly below analysts’ expectations, primarily due to a tough market in the US and the slowdown in make-up, but like-for-like sales still rose by 6.8%. And the group underlined that it reported its strongest first half like-for-like growth in more than a decade, with sales up 7.3% to €14.81bn. LVMH too, said sales at its perfumes and cosmetics division rose 10% on an organic basis for the second quarter of the year. The industry’s major players add that the China slowdown and trade battle with the

US has so far had no impact on their business and that the market there continues to see strong double-digit growth. Indeed, most say that China and Chinese travelers will continue to fuel the market, and that this growth is sustainable given an expanding middle class with higher disposable incomes. By extension this means that beauty’s other two key drivers—skincare and travel retail—are also likely to see continued growth. The market’s prospects could be a lot worse.

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BW Confidential 17 rue Louis Rouquier, 92300 Levallois-Perret, France [email protected] Tel: +33 (0) 1 74 63 49 61 www.bwconfidential.com ISSN: 2104-3302 Publisher: Nicolas Grob [email protected] Editorial Director: Oonagh Phillips [email protected] Journalist & Copy Editor: Katie Nichol [email protected] Contributors: Monica Defrances, Sophie Douez, Alex Wynne, Renata Ashcar, Mayu Saini, Corinne Blanché, Naomi Marcoulet, Tina Milton, Courtney Traub Subscriptions 1 year: Beauty Insight (20 issues) + Print Magazine (4 issues) + This Week in Beauty + Daily News + Beauty World Guide + Beauty & Travel Retail Special Edition: €549/US$769 [email protected] Advertising [email protected] BW Confidential is published by Noon Media 513 746 297 RCS Nanterre Copyright © 2019. All rights reserved. Reproduction in whole or in part without permission is strictly prohibited.

The next issue of BW Confidential’s Beauty Insight out on November 19, 2019 • The latest retail and tech news • Interview • Travel retail data • Beauty trends • Social media insights

Plus an analysis of key market issues

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