BW Confidential - Issue #3 - September 2010 - (Page 46)

Market watch: US Industry roundtable Shop talk We ask four key executives in the US beauty industry how the market is shaping up for the rest of the year, and for their views on retailing, pricing and challenges in the sector by Laure Guilbault What is your outlook for the market for the rest of 2010? Don Loftus Procter & Gamble Prestige US ceo Thia Breen Estee Lauder Companies president N.America Jonathan Zrihen Groupe Clarins USA & Canada president & ceo 46 Michael Gould Bloomingdale’s chairman & ceo Don Loftus: We see the US prestige beauty market slightly ahead of last year, maybe 2% to 3%, which is better than we thought a year ago. We have enhanced our sales forces and put in additional training—we’ve gone from two to eight people around the country who teach the sales associates. We have also spent a lot of time at the point-of-sales trying to improve the shopping experience. Thia Breen: Skincare is doing very well and we have seen a turnaround in make-up in the past 90 days. However, the fragrance business is essentially flat for the year, although better than what it has been. Last year, we were very concerned about the holiday season and so we planned it very conservatively and did better than those conservative plans. What is happening now is that we are still seeing weaknesses in the discount mass and luxury areas, but mid-tier department stores (and we do a lot of volume in midtier department stores) are doing very well, as is Bloomingdale’s. We have a very healthy appetite for what is coming for the holiday season. Jonathan Zrihen: The market has been showing a rebound for the first half of 2010 because of a favorable comparison base, but it is still not at 2008 levels. Skincare has shown the fastest recovery out of the three segments and is doing much better than the fragrance category. There are still lots of uncertainties about the economy and a high unemployment rate. For 2010, I am hoping the market will see a small increase compared to last year. Michael Gould: I feel very good about the high end of the market in the skincare and color business—Bobbi Brown and Chanel are outstanding. But I worry about the fragrance business, as it is not consistent. There are two exceptions: Jo Malone, a lifestyle fragrance brand that has done very well, as have the Chanel fragrances. It should be a better holiday season than last year, so I am cautiously optimistic. 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