BW Confidential - Issue #3 - September 2010 - (Page 10)

Update Companies on the move Art Deco looks to export for next 25 years German cosmetics brand Art Deco celebrated its 25th anniversary in June. To mark the event the brand is offering its bestselling items in a special birthday pack with a 25% discount. The promotion is heavily supported in-store with special displays, as well as events focusing on milestones in the brand’s development and the fact that it is ‘made in Germany’. The company also launched a social media campaign including Facebook and Twitter initiatives and a micro site. “The aim of this promotion is to attract more young consumers to try the brand, especially in international markets. We have an 18% market share in value [of the selective market] in Germany and 40% in volume, but we have more potential to grow in export markets,” says marketing director Anna Blasco Salvat. The company currently does around 40% of sales in Germany, and is targeting expansion in new markets. The brand launched in China in 2008 and is now focusing on Russia and North America. Art Deco was founded by Helmut Baurecht in 1985 with the concept of refillable beauty boxes that allow consumers to customize their colors. It also had an initial focus on beauty salon distribution. The brand is still sold in more than 10,000 salons, as well as 6,000 perfumeries and 350 department stores around the world. Art Deco reported wholesale sales of €120.9m in 2009, an increase of 7% on 2008, and the company expects to report sales of €129m in 2010. Panpuri builds on day spa network Thailand-based spa company Pañpuri is developing its urban day spa concept beyond its home market. The company, which was founded in 2003, will open a 250m2 (2,690ft2) standalone spa in Sydney, Australia late September and its first European spa in Madrid, Spain in November. It is also looking for a location in Paris. The two new projects will bring the number of spas the company operates to three—it opened its first location, the Pañpuri Organic Spa in Bangkok’s Grayson department store in November 2009. The 300m2 (3,229ft2) Madrid spa will feature a retail area of at least 60m2 (646ft2). “We are putting a strong focus on retail sales in our spas,” Pañpuri marketing director Europe Coelio Jamet tells BW Confidential. The retail area in the Bangkok spa takes up one third of the floor space and the company claims product sales there make up more than 50% of revenue. In addition to spa development, the company is launching its retail brand in Russia with a corner in upscale department store Tsum in September. It is also looking for a new distribution partner for the US. Pañpuri’s retail offer consists of around 100 skus. On the product front, Pañpuri is gearing up for the launch of Home Ambiance, its first home fragrance range in December. The line comprises six scent families, each featuring a candle, room spray and incense diffuser. Lampe Berger’s expansion drive France-based home fragrance brand Lampe Berger is aiming to double sales in the European and US markets over the next five to seven years, while restructuring its Asian operations. The 112-year old company, which sells designer fragrance diffusers retailing at €2,000, as well as entry-level items costing €15, does €50m in sales and has a strong presence outside France. Some €20m of sales are done in Europe (France accounts for €6m), while the remaining €30m is split evenly between the US and Asia. Growth in Europe and the US will come through expanding distribution, which is primarily through gift shops, perfumeries and pharmacies, as well as new product development. The company says European sales were strong last year, increasing by around 20%, which helped offset weakness in the US. Key markets in Europe are Italy, France and Germany, and the company sees strong potential in the UK, where it has just signed a deal with home-decoration company SIA. “The cooperation with SIA means we will share the sales force and benefit from the distribution overlap between the two brands. We plan to open 200 new retailers in the UK,” comments Lampe Berger president and ceo Philippe Lentz. In the US, where the brand has 1,500 pos, it is looking to sign up with larger retail chains and will also launch on TV shopping channel HSN in January 2011. In Asia, however, the company admits business is difficult. The brand is sold there through direct sales, where there is often a temptation for distributors to generate revenue by recruiting sales representatives and sell them product that will be difficult to re-sell to end-consumers. Lampe Berger’s Asian distribution contract ends next year and it is looking for new partners in the region with an eye to better managing the business there. “We need a system where there is more control over the distribution. As long as we have not controlled our distribution we cannot look for growth,” explains chairman of the board Hervé Lesieur. Lentz says the company is also considering distribution in physical outlets in China to build brand image. 10 September 2010 - N°3 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #3 - September 2010

Cover
Contents
Comment
Update
- Brand & retail news recap
- Digital digest
- 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
- O Boticário president Artur Grynbaum
Insight: luxury
- Category overview
- Pricing
- The internet
- Return to quality
Wellness
- The spa consumer
- Spa case studies
Retail
- New store concepts
Travel retail
- Inflight sales
Market watch: US
- Country overview
- Industry roundtable
- Retailing analysis
- Emerging retail channels
Radar
- Six up-and-coming beauty brands
Packaging trends
- Make-up innovations
Last word
- Inspiration&Creation founder Leïla Rochet-Podvin

BW Confidential - Issue #3 - September 2010

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