CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL...Store visit 16 ArtDeco, Paris July 10-August 27, 2014 #96 The next issue of BW Confidential will be published on August 28, 2014 Stay informed

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Mobile shopping strategies are likely to get a little more serious now that Amazon has launched

its own smartphone. The e-commerce giant’s Fire Phone is described as more of a shopping tool than a communication device, as it can recognize thousands of products and enable users to immediately buy them from Amazon’s website. The phone’s dedicated button for making a purchase means that shoppers have more opportunities to shop and shop more easily and can compare prices and buy an item that costs less

on Amazon. This is likely to send shivers down the spine of most competing retailers, but could be a major opportunity for brands to sell more if they agree to cooperate with Amazon. Amazon practically invented e-commerce, transforming (and in some cases

destroying) a string of industries from book selling to electronics retail in the process. Its new phone could very well usher in another new chapter in retailing. It’s unlikely that beauty will remain untouched by the online retailer’s ever-growing influence for long. Industry players may have to decide sooner than they thought whether they can beat Amazon with their own strategies or whether they will end up having to join them.

BW Confidential will be taking a break for the summer. We will be back with more news, analysis and commentary on August 28.

Retail on fire

The inside view on the international beauty industry

The buzz 2News roundup

Netwatch 6Beauty blogger review

Interview 7Givaudan fragrance division president Michael Carlos

Insight 9India

Show review World Perfumery Congress 12 MakeUp in Paris 14

Store visit 16 ArtDeco, Paris

July 10-August 27, 2014 #96

The next issue of BW Confidential will be

published on August 28, 2014

Stay informed with our daily news service on www.bwconfidential.com

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Coty will eliminate its separate prestige and mass divisions to implement what it calls a more integrated model focused on categories and regions in a major reorganization of the group.The company says that the move will bring a more holistic approach to consumers and product categories and improve coordination and resources between channels and markets. It is also expected to generate savings by reducing duplication. The new organization will be structured into a Categories and Innovation division and a Global Markets division. Categories and Innovation will be headed by Renato Semerari, who was previously president of Coty Beauty. All Coty brands will now be housed under four categories: fragrance, skincare, color cosmetics and bodycare. The Global Markets division will be headed by Jean Mortier, previously president of Coty Prestige. The markets will be organized into four regions: North America, Europe, APAC/MEA and Latin America.

Korean group LG Household & Healthcare has said it is no longer considering purchasing Elizabeth Arden. The news came as Arden said it would implement a major restructuring plan that involved terminating fragrance licenses and cutting jobs to reduce overheads in the face of growing losses at the company. LG said in April that it was interested in acquiring Arden, with an eye to boosting its international business. However, it is thought that the mounting difficulties at Arden have caused the Korean group to back off. LG is, however, still said to be interested in acquisitions.

French brand Chanel unveiled its new Research and Technology center to the press in June. The new center, which opened in January 2013, is in Pantin on the outskirts of Paris. The center groups together the activities of the brand’s former site in Pantin, as well as sites in Sophia-Antipolis in the south of France and Neuilly, a suburb of Paris. The ultra-modern building, whose exterior is decorated with a black metallic lattice structure, covers 15,000m2 (161,500ft2) and houses 200 researchers. It is also home to high-tech equipment, including a poly-fractioning machine for the extraction of actives and a multi-photon microscope, which provides a non-invasive way of testing the efficacy of actives on the skin. A focus of the center is natural actives and green chemistry. Talking about Chanel’s vision of research and the new center,

Christian Mahe, managing director of Chanel research said:

Stay informed with our daily news headlines on www.bwconfidential.com

n Coty implements major reorganization

n LG no longer bidding for Arden

n Pola Orbis creates international division

n Douglas finalizes acquisition of Nocibé

n Harrods to unveil premium fragrance concept

n Interparfums launches Jimmy Choo Man

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“Chanel’s research should be considered as an innovative and daring international ecosystem that respects the environment.” He added that the idea of the ecosystem can be seen in the brand’s association with universities internationally and its collaboration with start-ups. In addition to the Pantin center, Chanel operates research hubs in Piscataway, US and Funabashi, Japan.

Japanese beauty group Pola Orbis has set up a new entity called Global Business Division to manage its overseas business. The company’s Global Business Strategy Office branch that currently manages the business outside Japan will integrate the new division. Chinese beauty executive Yutaka Den is joining Pola Orbis as chief global business officer

to head up the new division. He will also become director of Pola Orbis subsidiary Jurlique International in Australia and H2O Plus Holdings in the US.

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German retailer Douglas has finalized its acquisition of French perfumery chain Nocibé. The new entity is now France’s largest perfumery network in store numbers, with 645 doors. Douglas operates 179 stores in France directly and through franchises, and Nocibé has 466 doors. In terms of sales, the group is now number two in France, behind LVMH-owned Sephora. Marionnaud comes in third place. Douglas was required to sell 38 stores in France in order to obtain approval

for the Nocibé acquisition from French competition authorities. Douglas, which is owned by private-equity group Advent International and the Kreke family, signed a deal to purchase Nocibé in February this year.

UK-based department store Harrods is to launch a new fragrance retail concept at its London store this September. The retailer says the concept, which it calls the Salon de Parfums, is aimed at ‘perfume connoisseurs’, and that it will present high-end and rare scents, alongside perfume creation and personalization services. The 5,090ft2 (473m2) space on the store’s sixth floor features dedicated

brand boutiques for 11 fragrance brands: Bond No 9, By Kilian, Chanel, Clive Christian, Creed, Dior, Guerlain, Henry Jacques, Roja Dove, Tom Ford and Xerjoff. A separate fragrance gallery will stock another selection of perfumes and will include world-exclusives, such as London-based perfumer Thomas Kosmala, and fragrances, such as Dolce & Gabbana’s Velvet Collection. The space is intended to convey an intimate

retail ambiance and is decorated in soft grays and natural tones. The 11 brand boutiques are situated along a corridor that features columns, showcase windows and decorative light fixtures. The fragrance gallery lies at the end of the corridor and is in the form of an oval-shaped room with seating and a crystal chandelier. n n n

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The Estée Lauder Companies has appointed Israel Assa senior vice president and general manager Estée Lauder travel retail worldwide. Assa is currently vice president and general manager travel retail Americas. Assa replaces René Frion, who has been named vp and gm Aramis and Designer

Fragrance, Bumble & bumble, Ojon and Smashbox for the UK and Ireland. The appointments went into effect on July 1.

Japanese group Shiseido has named Philippe Lesne vice president travel retail worldwide. Lesne was previously managing director travel retail Asia Pacific. Lesne has been with Shiseido since 2009. The appointment follows news of the departure of Shiseido senior vice president Europe Ariel Gentzbourger, who is to become senior vice president general merchandise manager cosmetics and fragrances at travel retailer DFS.

French group Clarins has appointed Olivier Tallot brand manager Clarins Fragrance Group Asia Pacific. Tallot was previously regional marketing manager travel retail Asia Pacific. He will be replaced by Katiba Belkhadria, who worked for Clarins skincare in Paris.

UK-based fragrance house CPL Aromas has appointed Olivier Maurel as perfumer. Maurel will be based at the company’s creative center in Paris. He previously worked with Italian company GRC Parfum. CPL Aromas is currently focusing on developing its business in France and in North

African countries served by the French office.

n n n People

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Prestige eyebrow make-up in the US saw sales up 28% in the 12 months ending March 2014, according to NPD Group. However, the total prestige make-up category in the US saw sales grow by just 3% for the period.Sales of eyebrow products have increased by double digits over the past three years, and

now represent $122m, and 11% of total US prestige eye make-up sales. However, NPD reports that less than 80% of prestige retail stores are currently selling eyebrow make-up.

Data

Interparfums is to launch its first men’s fragrance for Jimmy Choo this fall. Jimmy Choo Man is described as a fresh, woody fougere with a top note of lavender, a heart of pineapple leaf and a patchouli base. It was composed by Anne Flipo from IFF. The fragrance comes in a smoked glass bottle intended to resemble an antique hip flask and is topped with a leather embossed cap. It will be supported by an ad campaign featuring British actor Kit Harington. Jimmy Choo Man will launch exclusively at Sephora in France in

August and then roll out internationally in September. It is priced at €42 (30ml EdT), €55 (50ml EdT) and €77 (100ml EdT). n n n

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n n n Coty is to launch a new scent for the Chloé brand this fall. Called Love Story, the fragrance plays on the theme of a Paris romance, and its bottle is in part inspired by the padlocks that couples attach to the Pont des Arts in the French capital.The fresh, floral fragrance was created by Anne Flipo of IFF and includes notes of neroli,

orange blossom and jasmine. It will be backed by a print and TV ad campaign featuring French actress Clémence Poésy. Love Story will launch in September and retails at €56 (30ml EdP), €82 (50ml EdP) and €99 (75ml EdP).

Donna Karan (Estée Lauder Companies) is to launch a new fragrance for the DKNY franchise inspired by New York City. The fragrance, called DKNY MYNY, is a pink juice that comes in a heart-shaped bottle with a metal cap that represents New York’s skyline. It was created by Estée Lauder Companies’ Aramis and Designer Fragrances svp corporate fragrance development worldwide Trudi Loren. The scent will be backed by a print and TV ad campaign featuring singer and actress Rita Ora. DKNY MYNY will launch in the US in August and will retail at $48 (30ml EdP) $68 (50ml EdP) $88 (100ml EdP).

French company Nuxe is coming out with two major launches this fall. For the Nuxe brand, the company will introduce an anti-dark spot range called Splendieuse, whose formula boasts five patents. The range claims to reduce the size and intensity of dark spots. It comprises four skus: a serum (€37.50 for 30ml), a fluid and cream with SPF20 (€29.90 for 50ml) and a cloth mask (€29.90 for a pack of six). Splendieuse will launch in October. The group’s Bio Beauté brand will launch a new line for combination

skin also in October. The range claims to rebalance skin, thanks to a “probiotic-like” plant complex said to limit production of bad bacteria and stimulate good bacteria. Prices range from €10.30 to €13.90.

Former Annick Goutal managing director William Bouhouret and luxury product specialist Anne-Cecile Vidal have joined forces to create a niche fragrance brand, Parfums de la Bastide. The brand comprises five unisex EdPs inspired by France’s Provence region. Each 100ml EdP is priced at €125. The brand opened two showroom-boutiques in Paris and Aix-en-Provence, and is to roll out to 30 to 40 selective doors in France from September. International distribution is planned for 2015. The aim is to enter around 150 doors and sell 40,000 units internationally in the first year, says Bouhouret. n

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BW Confidential reports on what the bloggers are saying about beauty

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A tweet about Estée Lauder’s EE Cream has caused a buzz on the blogosphere. Although the product has similar claims to a BB Cream, the Estée Lauder Even Effect Skintone Corrector SPF30 is part of a collection that is formulated to prevent hyper-pigmentation. Bloggers say this claim alone makes the product worth trying.

The Fragrance Foundation US’s 2014 FiFi Consumer Choice Award for Our Moment, the fragrance by band One Direction, has incited writers to highlight the benefits of having ‘connected’ teen fans. The band won the award following a call to their 31 million fans on Facebook to vote for their fragrance.

The arrival of limited-edition make-up palettes by Makeup Revolution in mass retailer Primark is making waves just months after the launch. Described as a “luxurious little treat” by one blogger, the brand is praised for its soft textures, wearable colors, attractive packaging and unbeatable prices (the palettes retail for £6/$10).

...TFWA World Exhibition Cannes • Beauty World Middle East Dubai • PCD ParisCosmoprof Worldwide Bologna • China Beauty Expo Shanghai • In Cosmetics ParisDuty Free Show of the Americas Orlando • Intercharm Moscow • Esxence Milan Luxe Pack Monaco • Beyond Beauty Paris • TFWA Asia Pacific SingaporeLuxe Pack New York • Cosmoprof Asia Hong Kong • Pitti Fragranze FlorenceElements Showcase New York • Mondial Spa Beauté Paris • Luxe Pack ShanghaiMake Up in Paris • HBA Global Expo New York...

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Skincare insightFigures, retail initiatives & trends

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Make-up insightColor makes a comeback


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Market watch China, Japan, Korea

Luxury insightWhat’s changed and what’s to come?

Insight: Haircare How prestige is set to develop

Fragrance insightData, trends & retailer views

Make-up insightWhat’s next for the category?

Skincare insightWhat’s next for the category?

Insight: Fragrance Creation Trends, opportunities & challenges

Insight: Fragrance Ups, downs & new directions

Make-up insightWhat’s in store for 2013?



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Givaudanl Fragrance sales 2013:

Sfr2.08bn ($2.31bn), +5.1% vs 2012

l Fine fragrance sales 2013:

+1.8% vs 2012 l 2013 group sales

by region: Mature markets: 55%

Developing markets: 45%

Givaudan fragrance division president Michael Carlos”

[Fine fragrance] usage in China is still very low [...]. I don’t see it growing enormously, and I have much more faith in the markets of Indonesia and India

Givaudan fragrance division president Michael Carlos

Michael Carlos, head of Givaudan’s fragrance business, talks to BW Confidential about the fine fragrance industry’s most pressing issues and new directions for the company

Mining growth

How is your fine fragrance business performing?This year started out with double-digit growth in the first quarter, but you can’t look at the business by quarter in fine fragrance. We aren’t seeing a lot of increases in Europe and the US, but there is strong growth in Latin America and the Middle East. We’re beginning to see signs of a true fine fragrance market in some parts of Asia, as well. The culture of perfumery as we know it in the West hasn’t taken the same form in

developing markets. It isn’t a developed industry in terms of marketing products, using evaluators and having solid technical teams—this needs to happen in an organized fashion to create a strong market. We’re seeing improvements in Brazil, in the Middle East and in some countries in Asia.

Should the ‘Western’ business model be replicated in developing markets?Yes, to a certain extent. But I also think that the business model in the West will have to change so there is more direct contact between the perfumer and the brand, for example. This approach can then expand to other regions.

How do you see the fine fragrance market developing? The market is being pulled in two directions: on one end we’re seeing more niche, luxury designer brands, and on the other, the mass offer is expanding and becoming more sophisticated. The premium segment is revolving much more around the perfumer, ingredients, and stories, while mass will take the more traditional route of offering maximum value for money. Products in the middle will struggle, which is what we’re seeing in the US. Celebrity fragrances are declining and I can’t see that being revived.

What is your view on the escalating prices in prestige?It can go far with a certain set of consumers, especially when you see that the niche market is growing fastest. Consumers who love fragrance will pay these kinds of prices.

Do you see the pace of launches slowing down?If you don’t offer newness you can’t grow your business. Brands are now launching more flankers. These flankers offer something new, but under the umbrella of the master brand, so you keep the masterbrand very strong.

Are brands investing more in the actual fragrance?Yes. They see that to keep their masterbrand strong in the long term, to get consumers to re-purchase, they have to put something back into the brand and advertise more.



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Givaudan fragrance division president Michael Carlos

Givaudan fragrance division president Michael Carlos”

Givaudan had a cosmetics business […] which we gave up more than 10 years ago. We’ve decided that it was time to come back to this business, [which is why we purchased Soliance]. Hopefully this will be the start of a bigger cosmetics business for us

n n n You signed a joint venture with Chinese aroma-chemical manufacturer Xinhua Chemical Co this year. Does this reflect your ambitions for China?This acquisition was not related to fine fragrance. A large portion of our business in the region is in home care, and with all of the growth we have in China and in the whole of Asia it was important for us to have a site for chemical manufacturing there.

How will China’s fine fragrance market develop?Let’s wait and see. I think usage is still very low, and consumers are more attracted to brand names than the true value of a fragrance. Some fragrances do quite well, like J’adore from Dior, but I don’t see it growing enormously. I have much more faith in the markets of Indonesia and India. There is also not a huge deodorant usage in China, and this category is growing everywhere else in Asia. Deodorants and body sprays are generally a building block for fine fragrance. Brazil is the opposite. The market is huge mainly due to the direct-sales culture, which

has pushed the consumption of fragrances. However, for foreign brands, Brazil is a pretty closed market; there are high duties, and it’s hard to get in. When our clients look to manufacture locally, many struggle to find a business plan that can work. There are more deals happening, such as the agreement between Coty and Avon, but I can’t see Natura or Boticário signing with third-party brands as it would only erode their own market share.

You are acquiring French active cosmetics specialist Soliance. Is this a new area of investment for Givaudan?Givaudan had a cosmetics business, mainly in sunscreens, which we gave up more than 10 years ago. Quest also had a small cosmetics activity, but we left it aside when we acquired the company [in 2006]. We’ve decided that it was time to come back to this business. Soliance is very strong in the area of biotechnology, especially bio-fermentation, and for a lot of our aroma chemicals this will be a very important area in the future. Hopefully, this will be the start of a bigger cosmetics business for us.

What are the major issues facing fragrance houses today?Securing supply will be very important in the years to come. If you want to be strong in naturals, you have to invest to create strong partnerships with growers. Our expertise is not in growing ingredients, but in determining what is good quality, helping people to grow better and providing an outlet for consumption. It’s about investing with growers to set up equipment and collection networks, for example. We’re investing a lot in Madagascar to grow clove and vetiver, and also in Malaysia for patchouli and vetiver. Regulations is another major issue in terms of allergens in Europe and ingredient

transparency and labeling, which is more of an issue in the US. Of course we need labeling for the 1-2% of the population who is allergy-prone, but we don’t need to get much broader than that. We can’t label all of the allergens as there isn’t room on the pack and if we do, we’ll have to insert leaflets like the pharmaceutical industry. What brand will want to do that? We also need look to new ways to test for allergens. There are projects sponsored by the industry and the EU on new technologies beyond the patch test. Transparency is a little bit of the same story. Should we put our entire fragrance formula

on the pack? Clearly, the industry model of formula secrecy is going to change, but it needs to change so that the consumer gets relevant information, rather than a barrage of data that they will have difficulty understanding. n



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”Beauty Concepts ceo Tony Chin

Apart from the main department-store chains, there has been a lack of alternatives other than Sephora, which has just started to expand from its three doors in Delhi

Beauty retail in India looks likely to get a boost in the months ahead

India

On the road to recovery from a dip over the past two years when the growth of new malls came to a virutal standstill, the outlook for India’s

beauty market now has a flavor of revival about it. The election in May and the formation of a new government that is seen as pro-business is expected to set the tone both for consumer spending, as well as retail growth. Beauty is still a small part of the $500bn retail market in India—it is estimated

to account for less than 2%—but it is seen by mall developers and industry players as a growth area. Despite the slowdown in new retail offerings, beauty has seen growth in existing stores over the past two years of around 15% annually, according to industry sources and the market was estimated to be worth $8bn in sales in 2013. While better growth can clearly be seen in the country’s main tier-one cities, consumer demand for beauty in tier-two and tier-three cities is growing exponentially.“Things are looking up,” says Tony Chin, ceo of Beauty Concepts, which

distributes more than two dozen brands including Bulgari and Ferragamo. One indication of this is big players’ increased investment in marketing in the country. “The big boys of the industry have ramped-up their marketing spend significantly and one can see high-decibel, above-the-line marketing coming in to play now from the likes of L’Oréal, Maybelline and Lakme,” comments Canadian brand Faces Cosmetics ceo Sameer Prasad.But Beauty Concepts’ Chin notes that there have been limited retail

opportunities in the Indian market for the past two years. “Apart from the main department-store chains, there has been a lack of alternatives other than Sephora, which has just started to expand from its three doors in Delhi,” he says.In addition, a shift in consumer spend over the past two years has meant more

sales of mass products according to beauty retailers, while the premium market slowed down due to high inflation and a rupee that saw its worst depreciation in a decade. At the same time, mass brands have also continued to find n n n

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s Local standalone perfumery store Parcos is seeing success in the market, while French brand Dessange (above) is banking on the salon route to mine India’s growth

“a wider market through pharmacy chains such as 98.4, Apollo Pharmacy,

Religare Wellness, Medi Plus, and Guardian Pharmacy, which have been growing the concept of modern beauty retail.

Channels of beautyDepartment-store chains such as Shopper’s Stop continue to be the leaders in the premium beauty segment. Shopper’s Stop now has 68 stores (including five airport stores). Lifestyle, another chain of department stores, has 41 stores across India and continues to be another driver for beauty. “Department stores such as Shopper’s Stop and Lifestyle have become very significant channels for sales of beauty and personal-care products, especially color cosmetics and perfumes,” comments Euromonitor International senior research analyst Ina Dawer. She points out that department stores account for around 12% of the beauty and personal-care market.Others however, like the Central department-store chain and Reliance retail,

both of whom had ambitious growth plans for beauty, have seen a slowdown. Reliance, for example, has abandoned several of its beauty-specific retail formats, including a separate health and beauty store, and downscaled its plans for beauty in its hypermarket concept stores. Although the overall retail store concepts have been growing, beauty is currently taking a backseat.Another beauty format that has had several years of teething troubles, but has

seen a spurt of growth in the past two years is New U, a subsidiary of Dabur India Ltd. New U stocks mass products from global and domestic brands with around 20% of its space taken by its private-label line. There are now n n n

”Euromonitor International senior research analyst Ina Dawer

Interestingly, beauty specialist retailers such as The Body Shop and Dabur’s New U which were not very common a few years ago are now well known to consumers in tier-one and tier-two cities, such as Chennai and Lucknow

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India’s growth story coupled with the increase in high net-worth individuals has been hard to ignore. Indians are now taking to luxury grooming brands like never before

”Dessange Mumbai director Levan Pamishvilli

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n n n more than 50 New U stores in the country. “Interestingly, beauty specialist retailers such as The Body Shop and Dabur’s New U, which were not very common a few years ago are now well known to consumers in tier-one and tier-two cities, such as Chennai and Lucknow. According to Euromonitor data, beauty specialist retailers’ retail value sales grew by

21% in 2013, which clearly indicates their popularity,” Dawer comments. Health and Glow, a chain of beauty stores mainly in southern India is another strong specialist player in the market. Also doing well is the Parcos chain, owned by distributor Baccarose. Analysts say

Parcos is the only standalone perfumery format that has successfully grown in India. The chain continues to expand and has more than 60 stores. Parcos caters only to the premium segment and mainly stocks international fragrances. Its new-concept stores, launched two years ago, also stock make-up and skincare.Parcos’ main competitor is Sephora. The LVMH-owned chain opened its first store in

India in 2012 and it now has three doors in New Delhi. Although beauty analysts say it is too early to say how successful Sephora will be in India, the retailer is expected to open more stores in the metro areas and bring more brands to the country in the coming years. In 2013, after ongoing disputes with its local partner Genesis Luxury, Sephora changed partners for the market and now works with DLF Brands.

The standalone route Other foreign retail expansion is mainly in the form of international companies opening branded standalone stores. These include The Body Shop and L’Occitane, which are both said to be doing well in India. Japanese group Shiseido launched a branded store for its Za brand in Mumbai and New Delhi this year, while Estée Lauder-owned Bobbi Brown launched in India in 2013 and now has two stores in New Delhi. Haircare company Jacques Dessange meanwhile, which entered India in 2013 is

looking to sell its beauty products through the salon format. “India’s growth story coupled with the increase in high net-worth individuals has been hard to ignore. Indians are now taking to luxury grooming brands like never before and have developed a taste for opulence,” says Dessange Mumbai director Levan Pamishvilli. “The color cosmetics market grew by 29% in value in 2011. The Indian market is expected to become the sixth largest beauty market in the world by 2025,” he adds.But salons and branded standalones are not the sole preserve of foreign companies.

Many home-grown brands are also expanding in the country through their own retail networks. These include Shahnaz Husain, Kama, Forest Essentials, and Biotique, which are expanding their presence to smaller cities.Some beauty brands have sought to take advantage of some of India’s recent

challenges, for example, using falling real estate prices to reposition themselves and to grow quickly. For example, Canadian brand Faces Cosmetics, which launched only four years ago, has been able to take advantage of cheaper retail spaces and is now in more than 500 doors across 85 cities including 28 independent, franchisee-operated Faces stores in the country. This all seems to say that there are more opportunities for growth in India than

just a year ago. However, in spite of this good news, the market is still a tough nut to crack and one where the returns will probably be more for the long than the short term. n



BW Confidential reports on what was seen and heard at the World Perfumery Congress, the trade show for fragrance suppliers, which was held in Deauville, France from June 10-12

Fragrance forwardWorld Perfumery Congress

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The future of fragrance was the theme of the World Perfumery Congress (WPC), and unsurprisingly emerging markets were highlighted as key to growth over the coming

years by industry executives. Talk mainly centered on the BRICs, but also on markets such as the Middle East and Africa, where fragrance sales are expected to double to $8.5bn in 2018, according to Euromonitor International. However, the jury is still out on how to approach these markets. “Over the past decade, developing markets have come to account for 40-50% of fragrance sales, with notable increases in Brazil, China, India and Mexico. But as an industry, can we remain very Western in our approach in the face of growth in emerging markets?” asked Givaudan fragrance division president Michael Carlos at the event’s keynote speech. In China, for example, fragrance is mostly considered as a functional or

hygiene product, but in the future it will have a more emotional appeal and the industry needs to be ready for this now, explained Takasago executive director senior perfumer Kenji Maruyama. In India, meanwhile, although there is growing disposable income to spend on fragrance—by 2020 the middle class should account for the majority of the population, up from 45% today—the price of fragrances continues to put a brake on consumption. “Consumers aspire to fragrance, but price is a stumbling block. The industry needs to introduce convenience pricing they way it did for shampoo. Around 10 years ago the shampoo market was extremely small until sachets at low prices became available; consumers would also buy fragrances if they could spend a little at a time for small quantities,” said Indian company Kelkar Group perfumer and owner Kedar Vaze.

New formats, new gesturesApart from emerging markets, exploring new formats, new perfume gestures and looking at trends in other industries were cited as ways of generating growth for the industry. Research group Mintel global fragrance analyst Emmanuelle Moeglin said that consumers don’t care about concentrations, such as EdT or EdP, and that the industry should look at other ways to attract them. Mintel outlined these growth areas:• Multi-functional fragrances, which is a largely under-exploited area, even though consumers are interested in products that do more than one thing. This could be fragrance with skincare benefits—in the US, three-quarters of women say they want skincare benefits from fragrance, according to a Mintel study. It could also mean bath perfume or scented make-up. Revlon for example, launched nail polish that was not only n n n

The regulations rollercoasterRegulations were a major talking point at the WPC, especially in light of recent EU proposals that would increase the current list of 26 allergens to 91. While most bemoan the increased restrictions, several executives said the industry needs beware of misinforming or alienating the consumer. “We need to safeguard the 1-2% of the population who are allergy-prone, but we mustn’t complicate life for the remaining 98%. All transparency needs to be relevant, if not, it’s of no use. We are seeing closer collaboration between the industry, regulators and consumer groups as well as a demand for greater transparency,” said Givaudan fragrance division president Michael Carlos. Another industry executive commented: “The industry needs to stop complaining about regulatory constraints. We have to be more vocal at the EU, but this issue is the business of industry players and regulatory bodies. We shouldn’t be alarmist and get the consumer involved—it’s up to us to straighten this issue out. Our industry neglected this issue for years and now we’re going too far in the opposite direction by involving the consumer. We need to reassure them; consumers can’t be made to believe that fragrance is dangerous.” With increased regulations meaning more transparency about fragrance formulas, executives also noted the need for scent to be safeguarded as intellectual property.


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n n n scented, but that came in packaging resembling a fragrance bottle and was advertised with a scent strip. Fragrance could also take some inspiration from make-up. There are examples of solid fragrances intended to mimic a primer, so that when applied to the skin they make the fragrance last longer. • Fragrance for clothing. Mintel sees this is as an underdeveloped segment and says more projects like Guerlain’s La Petite Robe Noire limited-edition scent for lingerie should come to light. • Fragrance marketed as a health benefit. For example, there is demand for fragrances worn at night or sprayed onto bed linen to enhance sleep.• Co-branding fragrances. Teaming up with non-fragrance companies can entice consumers who are not regular perfume users to discover scent. One example is Nina Ricci’s partnership with pastry maker Ladurée for the launch of La Tentation de Nina. • Vintage perfumes. Mintel says that 70% of US women would like to see a discontinued scent re-launch and that they would pay more for these fragrances.Other growth areas covered at the conferences included:• Targeting low-cost consumers. There have been many efforts to push prices up, but there is a large consumer base interested in low-priced fragrances. • Targeting health-conscious consumers, who may see fragrance as allergenic or toxic.• Using different delivery systems and new technology to create customized scents. New delivery systems could also come in the form of devices. “If there are devices in skincare, why not in other categories, such as fragrance,” asks Mintel’s Moeglin.• Using new media to talk to younger generations about innovations in fragrance.• Fragrancing areas or products, such as movies or electronics.

Seen in showSwiss fragrance house Firmenich presented three new molecules: Firascone, which the company says is the closest cyclogeraniate to rose ketones and has applications in fine fragrance and bodycare; Clearwood, created from white biotechnology and offers a clean type of patchouli scent, and Z11, a Firmenich captive, which the company is now opening up to the market, and has a woody metallic-like scent.

France-based Robertet showcased five new naturals at the show. Bengal Pepper has a warm spicy ambery character and its CO2 extraction process is said to reinforce the ingredient’s peppery smell. Wood 520 NAT is said to bring a spicy, leathery complexity to woody notes, while Styrax is described as an answer to more stringent regulations by providing an animalic note to fragrances or personal-care products. Jasmine Petal meanwhile, is a result of CO2 extraction and is said to provide the genuine scent of the flower and a solar note. Lastly, Ylang Petal offers a fruity spicy white flower note.

Mane presented a range of new ingredients including two new materials: Gaharu Buaya has a smoky wood character, and Echinops is described as a dry woody note.

IFF unveiled a new material called Karmawood. It says the woody, ambery material adds strength and tenacity to fragrances and is said to be suitable for applications from fine fragrance and shampoo to liquid detergents. n

The perfumer’s changing role

A panel of senior perfumers discussed how the role of the perfumer has evolved. The main talking point was the advances in technology, mainly over the past 15 years, which allow perfumers to share formulas and ideas with teams in different locations around the world. This, said Symrise senior perfumer Emilie Coppermann, means that perfumers have access to specific regional tastes through perfumers in other creative centers, and so can more easily create juices for markets outside of their catchment area. “We have to work together more and technology is a big help when creating juices for other markets,” Coppermann said.



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Seen in show Glassmaker SGD signed a partnership with a pigment supplier to combine make-up pigments with inks to create new decoration techniques. SGD calls the decoration techniques Les Cosmiques (pictured) and they include metallic and crackled effects. The company also presented Color Match (pictured), whereby the color decoration on a make-up pot exactly matches the shade of the make-up

inside making it easier for consumers to select their products.

Axilone (Ileos) presented Vaposphère, a sphere-shaped cap for fra-grance bottles, where upon turning the ring at the neck of the bottle, the cap opens to reveal the spray. This means that the cap can be manipula-ted by one hand, to cater to today’s multi-tasking consumer. In addition, as the cap is not separate, it cannot be waylaid. n n n

MakeUp in Paris Took place: June 12-13 Exhibitors: 114Visitors: 2,804 +12% vs 2013

The fifth anniversary edition of trade show MakeUp in Paris was its biggest to date. The show welcomed 114 exhibitors, up from 90 in 2013, while visitor numbers

increased 12% to 2,804. This year, the show also welcomed pigment supplier companies, such as BASF and Univar, which presented their products in workshops. The growth of the exhibition over the past five years reflects the success of a small,

niche format event devoted solely to make-up. However, some question whether the show will be victim of its own success and lose the niche positioning for which it is appreciated. “We have often been asked about this, but we are not going to continue adding more and more exhibitors every year; once we get to 120 exhibitors we will have reached our maximum capacity,” says event organizer Beauteam co-founder Sandra Magurian. Co-founder Jean Yves Bourgeois added: “We don’t need to keep adding stands for Paris, as we have shows in four regions: Paris, Seoul, New York and a new event in São Paulo launching in December, which gives us a big pool of companies.”In addition to exhibitors’ latest make-up innovations, the show hosted 12 conferences

and three workshops, as well as a range of make-up artist animations. There were mixed views from exhibitors about the state of the market. Some said that

orders had picked up compared to the beginning of the year, while others highlighted that brands were still nervous about committing to major projects. In addition, the market is much more competitive today for suppliers. Brush manufacturer Bullier ma-naging director Fred Ghenassia comments: “The market has changed: companies are ordering smaller quantities and there is much more competition among brands. Chinese suppliers are now offering production runs of just 100 pieces, which was unheard of in the past. As European suppliers, we now have to be more reactive and less demanding when it comes to margins.” He added: “The market is also not evolving towards higher quality. Even upscale brands now offer cheap products at high price points, which means that the end-consumer is getting accustomed to lower-quality products.”Next year’s event will take place on June 18-19.

BW Confidential reports on innovations presented at the fifth edition of the MakeUp in Paris trade show, which was held in the French capital from June 12-13

Color on showMakeUp in Paris


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n n n German brush specialist Geka showcased its technologies for mascara brushes and how they can be combined. Highlighted technologies included SEPA, whereby straight-cut bristle ends are ground to a tapered fiber form for better separation of lashes; the Hypno cut, where the brush can have up to eight cut edges so grooves better absorb formula; Siam Brush Cut, which has special vertical volume zones on the brush to absorb more formula and give a targeted application to the lashes and Hybrition Technology, a combination of fiber and an ultra-thin film coating that is wrapped around the inner wire thereby creating a reservoir to provide more volume.

China-based Libo Cosmetics presented its UV Light Mirror Compact (pictured). The compact’s lid changes color depending on the intensity of light, so the user can tell whether she should apply a product with UV protection. There are four variations of color that appear on the compact indicating UV light intensity: low, middle, high and very high. The technology could be applied to sunscreen caps or compact powders with SPF properties.

US-based Topline Products showed Flickable (pictured), a lip gloss that it says looks like a lollipop. Topline developed a special mould to create the PCTA sphere shape of the gloss. The sphere is transparent, meaning that the user can easily see its shade. The applicator resembles the stick of the lollipop.

French contract manufacturer Strand Cosmetics launched an eye make-up collection at the show in partnership with German brush maker Da Vinci. This is Strand’s second collaboration with a brush maker after its collection with DuPont last year. The new line pairs three Da Vinci brushes (two made of natural sable bristles and one synthetic brush for oily textures), with two eyeshadow palettes co-created with make-up artist Louise Wittlich. The palettes (pictured), designed to create a smokey eye look, come in day and night versions. Strand also introduced its first organic make-up line called Biotiful World.

Alliance Boots-owned contract manufacturer BCM showcased new technologies including Line Lacquer, an eyeliner that retains its glossy aspect after drying to im-part a “vinyl-like” effect. New delivery systems for SPF-enriched formulas were also on show. These include a compact that encloses two sponges—one that is soaked with the fluid product and a second sponge used for application that the user gently presses onto the bottom sponge to release and absorb the proper dose of product. BCM also presented its new stick-format products including a blush and highlighter with cooling properties. The sticks contain a high proportion of water so that the colors blend easily, rather than coating the skin, which can magnify fine lines or wrinkles.

Korean packaging specialist FS Korea presented its Release & Shake dropper (pictured) for dual-formula skincare products. The glass dropper allows ingredients to be mixed just before application thanks to an actuator and a simple shaking action. The packaging allows for a dual formula—one inside the larger bottle, and the second in the dropper. When the dropper is actuated, the formula is released and when the bottle is shaken, the two blend together. Release & Shake comes in 25ml and 15ml formats. n

MakeUp in Paris



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ArtDeco, Paris l Located: rue de la

Chaussée d’Antin, Paris, France

l Opened: July 2014 l Size: 170m2 (1,829ft2)

l Special features: Make-up bar, nail bar, two treatment rooms

In a bid to boost its visibility in France, German beauty brand ArtDeco opened its first European flagship store in Paris this month. The boutique is located near the city’s boulevard Haussmann

department stores Galeries Lafayette and Printemps and is intended to be a showcase for the brand. “It is very important to have a presence in Paris for our brand image. The objective of the store is to capture customers from Paris and other parts of France, tourists and also to be a training center for our French aestheticians,” comments ArtDeco general manager France Roger Meynlé. ArtDeco vice president marketing Anna Blasco adds: “This new store is also part of our strategy to reinforce our corporate identity and our image, which has included putting in place new and bigger counters [in-store] in other markets.” The need for the boutique became all the more urgent following ArtDeco’s decision to pull out

of Galeries Lafayette’s Haussmann store last August, after the retailer opted to sell the brand along with several others in its lingerie department instead of on the main beauty floor. The 170m2 (1,829ft2) store is divided into three main areas for make-up, nails and skincare.

The brand’s entire make-up offer is on sale and a special focus is put on its signature beauty box concept, where consumers can create their own personalized make-up sets through the use of individual units of color that fit magnetically into the box. There is a make-up bar, offering a range of services, including makeovers for the day or evening, wedding make-up and make-up lessons. The nail area is home to a nail bar, where consumers can choose one service, such as nail

polish application, a hand mask or scrub, or a combination of services or full manicure and pedicure. There are more than 200 shades of nail polish to choose from, which are displayed on a wall unit beside the nail bar. At the back of the store is the skincare area. The boutique also houses two treatment rooms,

offering three 30-minute express treatments costing €29, and six longer treatments. ArtDeco is currently sold in around 2,200 beauty institutes in France and from September the

company hopes to begin setting up partnerships with institutes, whereby they will incorporate the ArtDeco name in their branding and sell the brand exclusively. Meynlé says he is targeting 50 such partnerships in France in the space of a year. Currently some 120 institutes in France sell the brand exclusively. As for further standalone stores, the company is open to exploring this type of distribution, but currently has no concrete plans for future openings. ArtDeco reported wholesale sales of €105m in 2013, of which €52m is done in Germany and

the rest in export. n

The German brand is out to boost its image in France with its first Parisian flagship boutique

ArtDeco opens first European flagship



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s The store sells the brand’s entire make-up range and has a make-up bar for makeovers and lessons

s The boutique houses a nail bar at the front and a skincare area at the back

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CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL...Store visit 16 ArtDeco, Paris July 10-August 27, 2014 #96 The next issue of BW Confidential will be published on August 28, 2014 Stay informed