CONFIDENTIAL CONFIDENTIAL CONFIDENTIA L...Sephora made its debut in travel retail at Abu Dhabi International Airport with a pop-up store stocking its private-label brand. Bulgari too,

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Travel retail has been singled out as one of the most innovative distribution channels for beauty for some time,

and one that domestic retailers should look to for inspiration. This idea was reinforced over the summer with a flurry of new creative concepts in the channel. Qatar Duty Free, for example, teamed up with L’Oréal Luxe

to launch a pop-up store called When East meets West at Hamad International Airport in Doha. The pop-up is conceived as a luxury showcase for oriental and Western fragrances from five of L’Oréal’s brands. Meanwhile, LVMH-owned retailer

Sephora made its debut in travel retail at Abu Dhabi International Airport with a pop-up store stocking its private-label brand. Bulgari too, has said it will launch a pop-up store in October at Charles de Gaulle Airport, Paris that will focus on the link between the brand’s jewelry and fragrances and put the spotlight on its most prestigious fragrances. This comes on top of more permanent initiatives at some of the industry’s key operators, such as DFS’ new T Galleria beauty-only stores or LS Travel Retail’s Amuse Beauty Studio, which aims to make beauty more personal through special services. All these efforts illustrate travel retail’s growing role as a showcase for beauty—a role

similar to that fulfilled by department stores in the past. It also has analysts asking when domestic retailers will begin to show the same level of experimentation and interest in coming up with more creative shopping environments.

Traveling well The buzz 2News roundup

Netwatch 7Social media monitor

Interview 8Estée Lauder Companies svp Latin America Daniel Rachmanis

Insight 11Spain’s beauty market

Store visit 14 L’Oréal Dermacenter, Paris

Oonagh PhillipsEditor in [email protected]

www.bwconfidential.com The inside view on the international beauty industry August 27 - September 23, 2015 #116

News headlines daily on www.bwconfidential.com @BWCbeautynews

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l MakeUp in New York, Sept 9-10l Beyond Beauty Paris, Sept 15-17l Cosmopack New York, Sept 16-17l Cosmetic 360, Paris, Oct 15-16l TFWA World Exhibition, Cannes, Oct 18-23l LuxePack Monaco, Oct 21-23l Cosmoprof Asia, Hong Kong, Nov 11-13


www.bwconfidential.com - August 27 - September 23, 2015 #116 - Page 2CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

News roundup

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Retail

France-based Lagardère Travel Retail has signed a deal to acquire North American airport travel retailer Paradies for $530m in cash from Freeman Spogli & Co, the Paradies family and other shareholders. Paradies operates in more than 76 airports in North America. In its fiscal year ended June 28, 2015, Paradies generated sales of $515m. Combining the activities of Lagardère Travel Retail in North America and Paradies

would create the second-largest player in North America. The newly combined company would have sales close to $800m and a presence in around 100 airports. Lagardère said the deal would result in significant savings, which could reach $15m per year from the fourth year after the acquisition. Gregg Paradies, president and ceo, would remain at the helm of the new company. Lagardère says the reach of Paradies is complementary to its own operations in the region, where it has a strong presence in Canada and several international US airports, including New York-JFK and Los Angeles.

Swiss travel retailer Dufry has closed the acquisition of the 50.1% stake of World Duty Free (WDF) from Edizione. The deal was approved by all relevant antitrust authorities. Dufry is now preparing the mandatory tender offer for the remaining 49.9% of WDF’s shares. Dufry started to fully consolidate WDF from August and integration is planned to follow shortly afterwards. Dufry expects to generate savings €100m per year. The acquisition of WDF gives Dufry a 24% share of the airport retail market globally.

LVMH-owned retailer Sephora has made its debut in travel retail at Abu Dhabi International Airport. Sephora will open two pop-up stores in terminal 1 and terminal 3 between August 1 and October 31 in partnership with Abu Dhabi Duty Free and LVMH-owned travel-retailer DFS. The stores will stock the private-label range Made In Sephora. In other news, Sephora announced its move into the beauty box subscription market in

the US this fall. The retailer’s box, called Play! By Sephora will cost $10 per month and will contain five deluxe-size prestige products. Each box is curated around a specific theme. In addition to product, the box includes a Play Book, which offers application tips and

information about each item in the box. Included in the Play Book is a Play Pass, a card offering personalized one-to-one tutorials at a Sephora store, where consumers can learn about the products in their box from the retailer’s staff. Sephora will begin the box service in a limited number of cities in September, with a full US launch in early 2016. n n n

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

n Lagardère Travel Retail to acquire Paradies

n Dufry closes 50.1% acquisition of stake of World Duty Free

n Sephora makes travel-retail debut

n Neiman Marcus to launch IPO

n P&G appoints new ceo



News roundup

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n n n Travel-retail operator Qatar Duty Free has launched a fragrance pop-up store in collaboration with L’Oréal Luxe at Hamad International Airport, Doha. The pop-up store, called When East Meets West and located in the airport’s departures concourse, showcases fragrances from five L’Oréal brands: Lancôme, Giorgio Armani, Yves Saint Laurent, Ralph Lauren and Viktor & Rolf. Each of the brands shows oriental and Western-style fragrances. The pop-up shop also offers a bottle engraving service.

Bulgari is to open its first fragrance pop-up store in Paris at Charles de Gaulle airport in October. The store will be located at terminal S4 and will be open from October 1-31. The store is designed to be what Bulgari calls a jeweler’s temple and evoke the brand’s

history. It will focus on the links between Bulgari’s jewelry and fragrance and feature the brand’s most prestigious perfume collections, including Eau Parfumée and Le Gemme. Bulgari’s new fragrance Goldea will also be on show. An oval counter at the center of the store will present interactive animations. The store will offer a tea ceremony with four types of tea: green, white, red and blue, which correspond to fragrance notes. Consumers will also be encouraged to explore the world of gold.

AS Watson has opened a Watsons flagship store in Hong Kong. The 8,000ft2 (743m2) three-story store is located on Yun Ping Road in Causeway Bay and is the largest Watsons store in Hong Kong. The health and beauty store stocks more than 8,300 products, including 840 healthcare and beauty brands, of which 250 are Watsons exclusives. Last year, AS Watson opened and refitted 76 stores in Hong Kong and this year, the

number is expected to come to over 80. The investment involved is HK$620m (US$80m) over two years. The group plans to open 1,300 new stores this year in different markets.

US-based prestige department store Neiman Marcus is to list on the stock exchange after 10 years of private ownership. Proceeds from the IPO will be used to repay some of the company’s $7.4bn in debt. Neiman Marcus was taken private by a private-equity consortium led by Texas Pacific

Group (TPG) and Warburg Pincus in 2005. In 2013, TPG and Warburg Pincus sold Neiman Marcus to Ares Capital and the Canadian Pension Plan Investment Board for $6bn, choosing a sale over an IPO. The company operates 41 Neiman Marcus stores and two Bergdorf Goodman stores.

Estée Lauder Companies-owned MAC Cosmetics opened a flagship store in São Paulo, Brazil in July. The 117m2 (1,259ft2) store is located in the city’s famous Paulista Avenue and is the brand’s 48th and biggest boutique in Brazil. The store is based on the brand’s new-generation design, which includes a color wall

featuring beauty looks and and make-up lessons, which are either free or given when a shopper buys R$90 (US$25.89) of product. The store sells a total of 1,800 skus.

Strategy

French flavor and fragrance company Mane has invested $1.5m in a new creative center in São Paulo, Brazil to strengthen its position in the country and Latin America. The new 1,500m2 (16,146ft2) center is housed in a state-of-the art business complex in the city. n n n

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n n n Results

Estée Lauder Companies (ELC) reported a 7.6% decline in net sales to $2.52bn for its fourth quarter 2015, due in part to accelerated retailer orders in the same quarter of fiscal 2014, which created an unfavorable basis for comparison, and to currency fluctuations. Adjusting for the impact of the accelerated orders, net sales in constant currency for the quarter would have increased 7%. Net profit for the period was down 40% to $153m. For the full year, net sales fell 2% to $10.78bn. Sales were hit by the strength of the US

dollar. Excluding the impact of foreign currency translation, net sales increased 3%. Net profit was down 9.2% to $1.09bn. For the full year, skincare net sales fell 6% to $4.48bn (-2% on a constant currency

basis), reflecting the negative impact of foreign currency and lower sales of products from the Estée Lauder and Clinique brands that were launched in the prior-year period. In make-up, the group reported a 2% increase in sales to $4.30bn (+7% on a constant currency basis) driven by double-digit growth from Smashbox and Tom Ford. In fragrance, sales were down 1% (+5% on a constant currency basis) to $1.42bn. Michael Kors, Jo Malone and Tom Ford saw double-digit growth, partially driven by new product launches and expanded distribution. For the first quarter of fiscal 2016, the company said it will increase investment spending

above the prior-year period, to coincide with new launches, as well as initiatives to reignite growth for the Estée Lauder and Clinique brands. However, ELC is cautious about slower retail growth in Hong Kong and China,

a decline in spending by Russian and Brazilian travelers, the impact of the MERS virus on travel-retail in Korea and unfavorable foreign exchange due to the strength of the US dollar.

US-based Coty moved to profit in the fourth-quarter of fiscal 2015. Net profit came in at $21m against a loss of $20.1m in the same period a year ago, largely as a result of a tax benefit. Net sales for the quarter declined 2% (flat on a like-for-like basis) to $1.02bn.For the fiscal full year, net income rose to

$232.5m, up from a loss of $97.4m in the previous year. Net sales were down 3% (flat on a like-for-like basis) to $4.40bn. The company said the 8% like-for-like growth in color cosmetics was offset by declines in fragrance, skincare and bodycare. Fragrance sales were down 2% like-for-like, due to declines in celebrity brands and a lower level of new launch activity in some brands. Skincare and bodycare fell 5% like-for-like, driven primarily by lower net revenues from bodycare brands Adidas and Playboy. n n n

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The

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z News roundupn n n By region, a 1% like-for-like growth rate in the Americas was tempered by flat like-for-like results in EMEA and Asia Pacific. Emerging markets grew 4% like-for-like during the year, accounting for 29% of net revenues in fiscal 2015 compared to 28% of net revenues in the prior year.

Launches

Parfums Christian Dior is to unveil its first men’s fragrance in 10 years this fall. The new scent called Sauvage is set to be a major launch for the brand and will be backed by a significant ad investment. Actor Johnny Depp is to front the new fragrance in an ad campaign, which includes a film directed by Jean-Baptiste Mondino featuring music from slide guitarist Ry Cooder. Dior underlines that the new scent is not a flanker to its Eau Sauvage line, but is its own

standalone fragrance. The fougère scent created by in-house perfumer François Demachy, opens with top notes of bergamot and citrus, a heart of ambroxan and a base of elemi and pink pepper. Sauvage will retail at €67.50 (60ml EdT) and €92.90 (100ml EdT).

Coty is launching a new fragrance from fashion designer Marc Jacobs this fall. Called Decadence, the woody scent was created by master perfumer Annie Buzantian of Firmenich in collaboration with perfumer Ann Gottlieb and Marc Jacobs. The fragrance comes in an emerald green bottle, inspired by the classic shape

of a Marc Jacobs handbag. The bottle has a gold cap with textured snakeskin detail, and features a gold chain and black silk tassel. Decadence will launch in October and is priced at €55 (30ml EdP), €85 (50ml EdP) and €115 (100ml EdP).

Shoe designer Christian Louboutin is to launch a lipstick line this fall. The brand, whose beauty business is run by US-based Batallure Beauty, will introduce a collection of 36 lipstick colors in September. The lipsticks come in a gold-colored tube, which can be worn as a necklace. The lipstick retails at $90. The move into lipsticks comes after Louboutin launched a nail polish line last August.

People

P&G has appointed David Taylor as its new president and ceo, effective November 1. Taylor is currently group president of global beauty, grooming and health care. He will succeed interim ceo AG Lafley, who will become executive chairman of P&G. Lafley, who was ceo of the group from 2000 to 2009, came out of retirement to take

the reins of the company in 2013 following the exit of Bob McDonald. He implemented a strategy to reduce the number of brands in P&G’s portfolio, which culminated in the deal to sell 43 beauty brands to Coty. P&G is now organized into four industry-based sectors with 10 categories and 65 brands. Lafley was also charged with finding a new ceo.

Beauty tool manufacturer Anisa International has appointed Rachelle Copeland as vice president of product development. Copeland will lead the product design and development team and contribute to the company’s strategy. n

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BW Confidential reports on what’s being said about beauty on social networks

Social media monitor

US brand BeautyRX’s Peel Bar is said to be changing the game in skincare peels. Located in the Butterfly Studio salon in New York, the Peel Bar offers express peels costing $39 and without the skin reddening and irritations that result with classic peels.

A revamped look for The Body Shop products has been praised by bloggers, who say the luxury image has injected new life into the brand. The redesign has debuted in the Spa of the World range based on ethically sourced ingredients from around the world.

Benefit’s new Air Patrol product, a BB cream for eyelids, is described as a ‘genius’ idea for offering moisturization and protection for the eyelids. It has a smoothing texture and bloggers say it is a good primer offering color-correction to give even-toned lids.

Meow Meow Tweet Deodorant Cream is liked for its natural-based formula of baking soda and organic vegan ingredients like plant oils. The company also makes a baking soda-free product for sensitive skin.

Bloggers predict sugar hair sprays will be a big trend. Said to give a softer texturizing effect than sea-salt sprays, they are liked for their non-sticky moisturizing properties.

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Estée Lauder Companies Latin America

l Brazil is the fastest-growing market globally for the group

l MAC is the number-one prestige brand in Latin Americal No of MAC stores

in Brazil: 50 l No of Clinique stores

in Brazil: 14

Estée Lauder Companies svp Latin America Daniel Rachmanis

Estée Lauder Companies is seeing strong growth in Latin America, despite a challenging environment. Estée Lauder Companies’ svp Latin America Daniel Rachmanis tells BW Confidential about the group’s strategy for the region

Full speed ahead

How is your Americas business performing?The prestige beauty market in Latin America is growing in double digits. This is very good compared with other prestige markets worldwide, which are growing around 4%—Latin America is growing three times as fast as global markets. Countries seeing especially strong growth are Mexico, Peru, Brazil and Colombia. Other countries like Venezuela and Argentina are stable or declining due to macroeconomic challenges. Estée Lauder Companies had growth of 28% in fiscal 2015 in Latin America compared to fiscal 2014, and it is the company’s fastest-growing region. We are gaining market share in all categories. Mexico is our largest market, Brazil is our fastest-growing market and we see Peru and Colombia as future growth markets. Our priorities are to continue to gain market share in prestige and to recruit middle-class consumers, as well as capture traveling consumers.Growth is coming from aspirational, middle-class consumers trading up to a better

shopping experience in our freestanding stores, like MAC and Clinique. In terms of channels, specialty stores, e-commerce and freestanding stores are growing well. In categories, make-up is seeing very strong growth, followed by skincare, while fragrance represents a big opportunity for us.

How are you dealing with the difficult situation in Brazil? The macroeconomic situation in Brazil is quite challenging, with inflation, a drop in consumption and the devaluation of the real. However, we grew 45% in Brazil last year. Brazil is the fastest-growing market for us globally. While we remain cautious, the macroeconomic situation has not affected our growth so far. We are not reducing investment, and we are working to continue growing in Brazil and gaining market share.

In terms of distribution, will you focus mainly on developing your own standalone stores for your brands in this region?In Mexico and Chile, we have very strong department-store partners. Department-store distribution does not exist in Brazil, so we are focused on our own freestanding stores there—we have 50 MAC doors and 14 Clinique stores and kiosks. Our second growth channel is e-commerce, where our sales are growing nearly 100% compared with the previous year. We also believe in the growth of specialty players, like Sephora.

Will you open stores for brands such as Smashbox? We did a test with Smashbox, whereby we launched a pop-up store in Brazil—the brand’s first in the world—in 2014. The group has a portfolio of over 30 brands and in Brazil we have 10, so there is a lot of opportunity to bring new brands to Brazil. n n n

”Estée Lauder Companies svp Latin America Daniel Rachmanis

High-end specialty pharmacies are a strong format for prestige brands, so it is a channel that we are looking at

“



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w Estée Lauder Companies svp Latin America Daniel Rachmanis n n n The criteria we are using to decide which brands enter Brazil is to first determine the relevance of the brand to Brazilian consumers. For example, we know that categories like fragrance and make-up are very important for Brazilians. The second criteria is the distribution model. We are giving priority to brands that have a successful retail model around the world, such as Aveda, Jo Malone, La Mer and Bobbi Brown, although we don´t have any concrete plans at this stage.

How do you see the pharmacy channel evolving for prestige products? High-end specialty pharmacies are a strong format for prestige brands, so it is a channel that we are looking at for some of our brands in a very selective way.

It seems that the focus for this market is on make-up and skincare, will you develop fragrance in the region, given the category’s strength there?Some two-thirds of the prestige beauty market in Latin America and almost 80% in Brazil is in fragrance. What’s interesting is that even with that, according to the latest Segmenta data, the number-one prestige brand in the region by far is MAC, which is a make-up brand. Estée Lauder Companies in Latin America has become the number-one player in prestige beauty. Clinique is the number-one brand in prestige skincare. However, fragrance remains the largest category in the market, and on a global basis we are looking to establish Estée Lauder Companies as the leader in the luxury fragrance segment with brands like Jo Malone, Tom Ford and the recently acquired Editions de Parfums Frédéric Malle and Le Labo.

How do you see beauty consumers’ habits changing? In Brazil, consumers will continue to look for shopping experiences, services, exclusivity and unique interaction with the brand—this is something consumers in the country didn’t have before. What I can see is that the retail brands that are offering consumers a unique experience tend to grow faster than brands that don´t, which are basically door- to-door and regular retail brands.

How can you get consumers to buy your brands rather than cheaper local brands?Clinique and MAC are very well-positioned at the entry level of prestige. In the case of MAC, we have our make-up artists providing education and make-up services for clients. For Clinique, our beauty advisors provide skin care advice and services. Also, for some of our entry-price categories like lipstick for MAC or the Three-Step products for Clinique there is the possibility of paying in installments, which creates an opportunity for middle-class consumers to buy into a prestige brand in an accessible, affordable way.

How can you better adapt your product ranges to Brazilian consumers? For MAC, we regularly launch collections that correspond to Brazilian trends, like the recent Julia Petit Collection and the collection by fashion designer Pedro Lourenço. In our MAC and Clinique stores in Brazil we look to categories that are more relevant to Brazilian consumers and we make sure that they are clearly identified. n

s MAC regularly launches collections tailored to Brazilian tastes, like those from Julia Petit

”Estée Lauder Companies svp Latin America Daniel Rachmanis

There is a lot of opportunity to bring new brands to Brazil. The criteria we are using to decide which brand comes first is the relevance of the brand to Brazilians. The second critera is the distribution model. We are giving priority to brands that have a successful retail model around the world

“

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Spain’s beauty market is picking up, but has undergone significant changes as a result of the crisis, which both brands and retailers need to come to terms with

Getting better

Spain

Things are finally beginning to look up for the Spanish beauty market. For the first time in nearly a decade, cosmetics and fragrance sales are beginning

to rise as consumers regain confidence in the economy and begin spending again after several years of recession. In 2014, total beauty sales fell 1.1% to $9.09bn, according to Euromonitor International.“The market is very dynamic, especially in fragrance,” says NPD Beauty Spain

executive director Isabel Alonso. The selective market grew 5% in the five months ended May 2015, Alonso said, after a drop of 2.5% last year. “The economy is better, and families are daring to spend; there is a momentum that will be difficult to slow down. People want to spend and to treat themselves, and perfumery offers that opportunity to the consumer,” she says.Additionally, tourism in Spain is on the rise, proving an additional boost to

spending as consumers choose destinations in Spain, over areas like North Africa and Turkey because of current insecurity, and Greece due to the country’s economic problems.Overall, fragrance and make-up are seeing relatively strong growth so far this

year, boosted notably by new products, says Alonso. Prestige fragrance n n n

”NPD Beauty Spain executive director Isabel Alonso

We now have approximately 2,200 prestige doors, that’s practically 240 less than in 2012

“



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n n n sales rose 7.3% from January to May this year, while the make-up category was up 6.2%, according to NPD. “Certain brands have grown their market share through good innovation as well as by strengthening their pillars,” says Alonso, citing the successes of Yves Saint Laurent Black Opium (L’Oréal) and Paco Rabanne Invictus (Puig) as examples. The skincare category, meanwhile, is suffering from a lack of innovation compared with previous years, mirroring its performance in other markets, and is seeing flat to declining sales. Prestige skincare sales from January to May this year fell by 0.1%.Nevertheless, despite the relatively good news, growth in the prestige

segment is expected to slow towards the end of the year as consumers embrace more of a wait-and-see attitude to spending ahead of general elections expected in December. “The market is quite sensitive to electoral periods,” notes Alonso. She expects overall growth for the prestige segment to come in at around 3% for 2015.

Crisis changes face of prestige retailThe economic crisis has nonetheless transformed the face of prestige retail in Spain, forcing hundreds of perfumeries to close, which has changed the dynamics of the market. Regional perfumery chains have become stronger in this context, buying up ailing smaller retailers that could not compete. “We now have approximately 2,200 prestige doors,” says Alonso, “That’s practically 240 less than in 2012.”During the crisis, retailers, faced with consumers trading down (brands such

as Kiko and discount perfumery chain Equivalenza, as well as private label were the main beneficiaries of this) engaged in a discounting war, with certain regional chains coming out winners, according to sources. “Margins are becoming smaller and lots [of retailers] cannot survive,” observes ArtDeco vice president of marketing Anna Blasco.Partly as a result of fewer doors, prestige sales in Spain have shrunk from

25% of overall beauty sales in 2011 to around 20% in 2014, according to estimates.

Pharmacies grow beauty salesPharmacies, meanwhile, have grown their share of beauty sales. One brand to have chosen the pharmacy route in Spain is upscale skincare line Ioma, which is aiming to be in 300 pharmacies in the country by the end of 2015. “Our diagnostic machines make Ioma a very different brand, and for the pharmacy channel it is a way for them to attract new consumers and boost their income,” n n n

”Euromonitor International

Despite the first signs of economic recovery in 2014, the price sensitivity of Spanish consumers remained, pushing unit prices down and hindering value sales in several categories

“

Spain beauty market* by category 2014Category 2014 sales

$bn% change 2014/2013

Skincare 1.73 -0.4

Haircare 1.38 -0.6Fragrance 1.34 -4.1Color cosmetics 0.93 -1.7Men’s grooming 0.73 -3.1

Mass beauty & personal care

5.58 -0.8

Premium beauty & personal care

2.08 -2.6

Total beauty & personal Care

9.09 -1.1

Source: Euromonitor International *Retail sales price



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n n n Ioma ceo Jean-Michel Karam tells BW Confidential.As the market emerges from nearly a decade of declining sales, discounting

remains a challenge. “Spanish consumers seem to have embraced frequent discounts and promotions as normal,” market-research company Euromonitor International stated in a recent report. “Despite the first signs of economic recovery in 2014, the price sensitivity of Spanish consumers remained, pushing unit prices down and hindering value sales in several categories.”This has been a disadvantage for mainstream brands especially. “The high-

end luxury brands have performed well. It is the lower-priced brands that have suffered from the effects of competition,” says Alonso.Spanish consumers are looking for value, she states, not just low prices,

and brands have seen strong business for large-sized fragrances, which now represent 30% of the market in unit terms. “Many international brands thought that if Spanish consumers are having trouble spending, they had to offer small formats, but that is not how the Spanish consumer reasons at all,” she says.

Retailers focus on exclusivity Retailers are focusing more on introducing exclusive brands, which were in the past the preserve of Spain’s main department-store operator El Corte Inglés and LVMH-owned beauty retailer Sephora, sources say. Most of the major retailers clearly highlight their exclusive brand offer on their websites as a unique selling point. “Retailers are seeking closer collaborations with manufacturers, [and] there are lots of chains or associations of perfumeries, that are seeking the advantages offered by differentiating through exclusivity,” comments Alonso. Indeed, it is a way for retailers to move away from an offer dominated by price alone.Perfume Holding offers its Atkinson’s niche brand at El Corte Inglés, for

example. “We are happy with Spain concerning this category of product,” Perfume Holding vice president of marketing Brigitte Wormser says, although she admits that overall, the market remains difficult.It seems that brands will

have to integrate the changed dynamics of the Spanish market into their strategies to return to growth, especially when it comes to negotiating with retailers. Nevertheless, most industry

players agree that the ongoing signs of a turnaround that some had begun to despair of can only be good for the market. n

Spain prestige brand ranking by category Jan-May 2015Rank Fragrance Skincare Make-up

1 Chanel Biotherm Lancôme2 Paco Rabanne Clarins Estée Lauder3 Loewe Estée Lauder Clinique

Source: NPD Beauty

Spain prestige market growth by category Jan-May 2015Category % change Jan-May 2015/

Jan-May 2014Fragrance +7.3

Make-up +6.2Skincare -0.1Total prestige market +5.0

Source: NPD Beauty



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Dermacenter Paris l Opened: July 2015

l Location: Paris, Francel Brands on offer: Vichy,

La Roche Posay, SkinCeuticals, Roger & Gallet and Sanoflore

l Size: 37m2 (398ft2)l Special features:

skin diagnosis using tool to measure skin problems;

make-up workshop; treatment room offering

express treatments using the SkinCeuticals brand; mini-

treatments using Vichy and La Roche Posay

L’Oréal’s active cosmetics division has opened a new store in Paris selling its five dermo-cosmetics brands: Vichy, La Roche Posay, SkinCeuticals, Roger & Gallet and Sanoflore.

Called Dermacenter, the new 37m2 (398ft2) store is located in Paris’ marais district, which is home to a string of beauty boutiques. Dermacenter sells 700 references from the five brands, and a pharmacist and skin expert

are on hand to provide advice to consumers. The store also hosts a range of services, including skin diagnosis using what the company calls a high-tech tool that can measure eight different types of skin problems, a make-up workshop and a treatment room offering express treatments using the SkinCeuticals brand and mini-treatments using Vichy and La Roche Posay. L’Oréal already operates Dermacenters in Asia, Latin America, the Middle East and

Eastern Europe. To coincide with the store opening, L’Oréal has also launched My-Dermacenter.com,

an e-commerce site offering a range of services, including expert advice through a live chat with skin experts and skin diagnosis. L’Oréal says the site’s aim is to learn about consumers’ needs, recruit young consumers to the pharmacy channel and support French pharmacies in their e-commerce strategies. Analysts say that both the store and the website could be seen as a competitor to the

pharmacy channel. However L’Oréal claims that the website can offer pharmacies an example of how to approach e-commerce and the type of content they could use on their own site. Through the site’s store locator, it offers a web page for each of its authorized pharmacy partners where they can add details such as opening hours and services. It also proposes training programs for pharmacists focused on boosting their online visibility. L’Oréal says that the site is intended to develop shopper traffic at pharmacies, especially

among the 15-24 age group. It adds that 81% of consumers search on the web before buying a product, but that 88% of them end up buying in a brick-and-mortar store. n

L’Oréal brings five of its dermo-cosmetics brands together with a strong service offer in a new Dermacenter store in Paris

L’Oréal opens Dermacenter in Paris



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s The Paris Dermacenter brings together five of L’Oréal’s dermo-cosmetics brands

s The store hosts a range of services, including skin diagnosis using what the company calls a high-tech tool, and a make-up workshop

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