BW Confidential - Issue #10 - May/June 2012 - (Page 16)

Best of www.bwconﬁdential.com The inside view on the international beauty and wellness industry September 2-15, 2010 #21 BW highlights BW Confidential delivers an electronic publication by 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 Comment CONFIDENTIAL Inside The buzz The essential news roundup The retail view Wellness focus Changing channels f the industry needed any more proof that retail models are changing and consumers are buying differently, it only needs to look at the launch of the new Mary J Blige fragrance. US company Carol’s Daughter, which developed the scent, took the brave step of launching the fragrance exclusively on TV shopping channel HSN, and so without the US’s traditional launch-pad, the department store. The company can’t be disappointed with the results: in just six hours of airtime the fragrance had sold 60,000 units and broken HSN records for fragrance volume sales. Brands looking beyond traditional distribution is nothing new, but what is interesting is how successful new channels are becoming. Alternatives in the US, such as Sephora and Ulta, may not have the same footprint as department stores, but they are increasingly popular, and their websites are attracting more consumers who may not have a brick-and-mortar version nearby. As for TV shopping, it also has broad reach, provides brand awareness and is considered a lot more cost-efﬁcient than the department store. One brand manager recently told BW Conﬁdential that companies can simply no longer afford to pay for staff at department stores and all the other extras they ask for. And perhaps more worrying for the department store is that brands are now less afraid of upsetting these retailers by dabbling in other types of distribution. Oonagh Phillips Editor in Chief ophillips@bwconﬁdential.com 2 4 4 5 6 I Netwatch The beauty blog review Interview Clinique vp & gm Europe, ME & Africa Jean-Christophe Jourde Beauty insight Market outlook 8 11 Store visit House of Fraser’s Apothecary Subscribe www.bwconfidential.com on p.13 or go to Beauty insight Using feedback from social media Beauty brands are at a turning point in their approach to social media, as they realize how feedback garnered on the internet can be a valuable resource that can help define strategy, positioning and product offering, rather than just as a means to broadcast marketing and product information. However, many brands are often still focused on gaining fans, rather than truly engaging with consumers, and so are not making use of the information available. “People ask ‘what is the cost of gaining a million fans, and how fast can I be there?’ Very rarely do brands go deeper, and ask ‘What is my engagement level, and what could my business outcome be?’” says Damon Crépin-Burr, chief creative officer of interactive marketing agency Fullsix Group. US duty free A slowly improving US economy and a growing influx of foreign travelers from countries such as China and Brazil are encouraging retail operators to up their game in US airports. Operator changes at airports in Atlanta, Los Angeles, Orlando and Miami could also begin to alter the retail landscape. Miami-based distributor Actium beauty and lifestyle division president Paul Petit comments: “The North American business is slower, but there are real initiatives happening, as retailers see airports in Europe and Asia become luxury shopping malls. While the retail scene is still not very qualitative today, the mindset is changing and we are seeing some nice projects in multi-brand prestige retail, such as in Las Vegas with Nuance.” Private label in prestige Private label in selective is becoming more sophisticated and now includes categories like make-up and fragrance, as well as targeted skincare and organic products. “Everybody is looking at the Sephora and Boots models and asking ‘why not us?’” contract manufacturer Maesa ceo Julien Saada says. “Retailers are putting the means behind their own privatelabel brands, either by putting teams in place or taking on contract manufacturers. They want to create whole product categories, and come to us asking for three-year multisegment business plans in which we develop a complete offer,” he continues. 16 The evolution of spas It is forecast that spa operators will work more with other industries, such as healthcare providers, associations and aestheticians to highlight a spa’s role in terms of healthcare benefits. “There also needs to be more of a crosscultural exchange; there are so many associations worldwide, but we should found a sort of a UN for the spa industry with delegates from each country to look at the different challenges the industry is facing,” comments Hutchinson Consulting founder Lori Hutchinson. May-June 2012 - N°10 - BW Confidential http://www.bwconfidential.com

Table of Contents for the Digital Edition of BW Confidential - Issue #10 - May/June 2012

Cover
Comment
Contents
Update
- Brand & retail news recap
- 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 Clinique global brand president Lynne Greene
Insight: Skincare
- Category overview
- Retail technology
- Retail viewpoint
- The latest trends
Wellness
- Spas & healthcare
- Spa case studies
Retail
- Inspiration from Apple
- Store concepts
Market watch: China
- Country overview
- Industry viewpoint
- Prestige retailing
- Taobao & the internet
Digital focus Social media strategies
Strategy spotlight Case studies to inspire
Travel retail: Asia Pacific
- Regional overview
- India
- Interview: Delhi Duty Free Services coo Arun Barathi
Radar Six up-and-coming beauty brands
Packaging
- Make-up packs
- Innovation showcase
Last word Metis Insights director Stéphanie Morou

BW Confidential - Issue #10 - May/June 2012