BW Confidential - Issue #3 - September 2010 - (Page 14)

Best of BW highlights BW Confidential delivers an electronic publication by CONFIDENTIAL CONFIDENTIAL email to subscribers every two weeks, with a focus on analysis of major issues facing the international industry, interviews with key players and insight into new trends. Here we bring you excerpts of some of our reports. To see the articles in full, log on to our website www.bwconfidential.com www.bwconﬁdential.com The inside view on the beauty and wellness industry July 22-September 1, 2010 #20 CONFIDENTIAL Comment Inside The buzz The essential news roundup The retail view Wellness focus Emerging men re men back on the radar? For years the beauty industry has talked about the growth potential of men’s skincare and cosmetics. Most of the major prestige brands introduced skincare for men and waited for the return. However, the growth they hoped for did not come: getting men to try and buy these products proved difﬁcult and many of the lines that came onto the market are no longer on the store shelves or have been reduced to just a few products with little support from either brand or retailer. Now the industry is once again beginning to make more noise about the male consumer. The difference this time is that the potential is being talked about in terms of emerging markets, like China, India and Brazil. Only last week, L’Oréal ceo Jean-Paul Agon told analysts that “Chinese men have no taboos about taking care of their skin and hair. China will be the number-one men’s market.” The group says it has seen “huge success” with its Men Expert line from L’Oréal Paris in China. It is also banking on India for men—this was the ﬁrst country where the group unveiled its men’s line from the Garnier brand. Adding men to the market in these countries will certainly help L’Oréal and other major groups, go further in their goal of reaching one billion more consumers in the next 10 years. It may also shed some light on how to better approach this consumer in Europe and North America. BW Conﬁdential will take a short break for the summer. We will be back in September with more news, analysis and commentary on the international beauty market. Until then, we wish you a restful vacation. Oonagh Phillips Editor in Chief ophillips@bwconﬁdential.com 2 4 4 5 6 9 A Netwatch The beauty blog review Interview Luxasia ceo Patrick Chong Beauty insight Company analysis: L’Oréal, Estée Lauder, Shiseido Store visit Amouage, London 14 Subscribe www.bwconfidential.com on p.16 or go to Beauty market reports The naturals market Some see the natural personalcare shopper as the ideal consumer. Burt’s Bees ceo John Replogle says she is “educated, well-informed, engaged, less price sensitive and more loyal—and with a larger basket.” But the retail landscape for natural products is highly fragmented in most markets. Most sales are still done through specialty shops (natural grocers, for example), and there are few dedicated natural beauty chains. One such retailer is France’s Biu Beauté Bio (formerly Naturalia Beauté), which opened in 2007 and now has seven points-of-sale in Paris. Cosmetics & mobile commerce Any analyst will tell you that shoppers with a mobile phone or other mobile device are set to change how retailers will approach their customers, promotions and marketing, and even the merchandising and look of their stores. Despite this and the fact that mobile commerce is predicted to overtake desktop web sales, many retailers still don’t have a mobile strategy, or are in the testing stages, according to the US National Retail Federation. The study underlines, however, that more attention is being paid to this area, and estimates an average investment this year for mobile of $170,000. Beauty players have been slow to adopt mobile strategies beyond replicating their websites on a mobile format. However, there are many advantages to mobile commerce. Private-label beauty Gone are the days when privatelabel beauty was the poor cousin of branded products. Now a more sophisticated and targeted offer from retailers is driving category sales. According to the Private Label Manufacturer’s Association’s 2010 Private Label Yearbook, over a three year period, private-label sales worldwide (all categories combined) have increased by 14% to reach retail sales of $86.4bn. The recession has also seen increased interest in private-label products from consumers, especially in hard-hit markets, such as Spain. 14 Company analysis “Back to growth” is how L’Oréal described its performance in the first three months of the year, and the phrase was used again when it released sales for the second quarter and first-half. Sales were up by 12.4% (5.2% like for like) to €4.95bn in the second quarter. Growth has been led largely by sales in emerging markets, while in more mature countries times have been tough. Last year the group lost share in parts of Europe, and in the US it was caught up in restructuring its teams, and according to analysts did not weather the storm as well as some of its competitors. September 2010 - N°3 - BW Confidential http://www.bwconfidential.com

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