CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL · Direct diversification The buzz 2 News roundup Netwatch 7 Social media monitor Interview 8 Calé president Silvio Levi Insight 10 Brazil

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CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

While the direct-to-consumer model through standalone stores or online sales is now a key concern among

beauty groups, it seems that the traditional direct-selling business is also coming back into fashion. Last week France’s Groupe Rocher announced that it would acquire US-based direct seller Arbonne International. Groupe Rocher sees the acquisition as a way to boost its presence in the direct-sales channel. The French group hopes to build on the investment Arbonne has made in the digitalization of its direct-selling network to move from traditional direct

selling to social selling. At last year’s TFWA exhibition in Cannes, Groupe Rocher ceo Bris Rocher told BW Confidential that he sees social selling and community selling as a key distribution channel for the future.Also in the direct-selling world, there has been much speculation over the fate of

Avon. The struggling company, which has just appointed a new ceo following much pressure from investors, is said to be looking to sell. Analysts say that Coty could be interested. Coty tried to acquire Avon in 2012, but its offer was turned down. Coty’s appetite for acquisitions is well known, and the group has also indicated its interest in the social-selling model as its investment in peer-to-peer e-commerce site Younique last year shows. Watch this space.

Direct diversification The buzz 2News roundup

Netwatch 7 Social media monitor

Interview 8 Calé president Silvio Levi

Insight 10 Brazil

Show review 13 PCD Paris

Store visit 16 Duty Free Americas, Macau

Oonagh PhillipsEditor in [email protected]

www.bwconfidential.com The inside view on the international beauty industry February 8-21, 2018 #163

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At a glance...

Strategy

France’s Groupe Rocher is to acquire direct-selling botanical skincare and cosmetics brand Arbonne International and personal-care brand Nature’s Gate from California-based Natural Products Group (NPG). Arbonne was founded in 1975 and does sales of more than $550m. The company has more than 250,000 sales consultants and is sold in the US, Canada, the UK, Australia, New Zealand, Taiwan and Poland. Arbonne said that its recent investment in the digitalization of its direct-selling network will help Groupe Rocher develop its direct sales model. Groupe Rocher has nine brands and recorded sales of more than €2bn in 2017.

Unilever Ventures has acquired a minority stake in French skincare start-up Gallinée. Gallinée was launched in 2016 by French pharmacist Marie Drago. Its products target the skin’s protective ecosystem, the microbiome. The investment is designed to enable the brand to develop new products, expand in new markets (particularly the US) and grow its online business.

At his New Year’s address to the press in Paris in January, L’Oréal chairman and ceo Jean-Paul Agon put the focus on the advances the group has made in its strategy of reinvention in today’s fast-changing market. “2017 was a good year of transformation for the group in this market that is changing at a rapid pace. The number-one issue for L’Oréal is to change fast, faster than the market if possible and faster than our competitors,” he commented. Agon stated that this transformation was marked by advances in digital, both in terms of e-commerce and marketing, forging links with young companies as evidenced by its collaboration with Paris start-up campus Station F in November and its progress in sustainable development.However, despite all this change, Agon emphasized the importance of recognizing and

building on the group’s fundamental pillars. “The fundamentals of L’Oréal are more important than ever. [They include] the high quality of our products compared with competitors— in a world of ratings and reviews quality will become more important than ever. L’Oréal is also a group of brands. Today there are people who think wrongly that the [market] will see the disappearance of big brands, but it is the opposite that will happen, as in a world of hyperchoice for consumers, it is the power of brands that makes the difference more than ever. The third fundamental is our star products, which are different, better and unique,” stated Agon. n n n

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n Groupe Rocher to acquire Arbonne International

n Unilever takes stake in Gallinée

n Chalhoub signs JV with Farfetch

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Dubai-based luxury distribution company Chalhoub Group and luxury e-commerce platform Farfetch have signed a joint venture agreement for the Middle East. The partnership will combine Chalhoub’s luxury distribution network with Farfetch’s e-commerce, technology and logistics platform to increase Middle East consumers’ access to luxury brands online. Farfetch, which already has a presence in the Middle East, plans to open its first office in the region, in Dubai. An Arabic version of Farfetch will launch in the first half of 2018. The platform will curate goods for the local consumer and increase local supply by bringing onboard Chalhoub’s store network (Tryano, Level Kids and Level Shoes) and that of other franchise partners.

Shiseido Travel Retail has unveiled a campaign targeting millennial travelers across Asia Pacific this month for the launch of Essential Energy, its new skincare range inspired by neuroscience. Called #BeautyofTravel, the campaign was created exclusively for travel retail and features Chinese actor Huang Xuan, Shiseido’s brand ambassador in China. Huang Xuan has a following of 8.3 million on Chinese social-media site Weibo. Japanese contemporary artist ShiShi Yamazaki was the creative director of the campaign.From February to April, large-scale animations will launch in locations including Beijing,

Shanghai, Hong Kong, Singapore and Thailand, with a communication programspanning both online and offline platforms. The campaign includes a 30-second video depicting Huang Xuan embarking on a journey to rediscover beauty with the new Shiseido Essential Energy Moisturizing Cream. Shiseido Travel Retail has also developed an interactive game, where players go on a journey with Huang Xuan and re-energize themselves by collecting “Essential Energy”. The top three scorers daily stand to win a full-sized Essential Energy Moisturizing Cream each. These digital channels will be complemented by physical platforms across Out-of-Home (OOH) and inflight media. These include a three-month OOH media plan and a TV spot—another first for Shiseido Travel Retail—on Cathay Pacific’s inflight entertainment network in February and March.

Results

Commenting on its full year 2017 results, French group LVMH reported what it called another record year. Sales for 2017 rose 13% (+12% on an organic basis) to €42.64bn, while net profit was up 29% to €5.13bn. Perfumes and cosmetics sales increased 12% (+14% on an organic basis) to €5.56bn for the year and profit from recurring operations for the division was up 9% to €600m. The Selective Retailing division (which includes Sephora and travel retailer DFS) saw an 11% increase in sales (+13% on an organic basis) to €13.31bn. Profit from recurring operations at the division rose 17% to €1.075bn. LVMH said Sephora continued to gain market share. As for DFS, the group said that 2017 marked a positive turning point for the retailer, due to better market conditions.

Estée Lauder Companies (ELC) reported a 17% increase in net sales to $3.74bn for its fiscal 2018 second quarter ended December 31, 2017. Net sales in ELC’s major product categories were favorably impacted by a weaker US dollar against most currencies. Incremental sales from the acquisitions of Becca and Too Faced contributed around n n n



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z News roundupn n n two percentage points of reported sales growth. At constant currency, ELC’s sales grew by 14%, driven by what the group called ‘exceptional strength’ in travel retail, global online and Asia. Net profit was $123m, compared with $428m in the second quarter of fiscal 2017, and included a provisional one-off charge of $394m related to the US tax code reform. In the second quarter, ELC recorded restructuring charges of $69m ($55m after tax) related to its Leading Beauty Forward initiative. By category, skincare sales increased 20% (+17% at constant currency) to $1.49bn. Make-up sales grew 16% (+13% at constant currency) to $1.51bn. Fragrance sales were up 14% (+10% at constant currency) to $565m. Haircare grew 5% (+4% at constant currency) to $144m.

Interparfums SA posted sales up 5.8% (+8.9% at constant exchange rates) to €98.1m for the fourth quarter of 2017. Sales were driven by Coach and Interparfums’ main brands. For full-year 2017, sales grew 15.4% (+16.3% at constant exchange) to €422m. Montblanc sales rose 2% to €112.2m, while Jimmy Choo sales were up 17% to €96.1m. Coach sales reached €50.9m for the year, with the Coach for Men fragrance (launched in fall 2017) exceeding initial expectations.

Shiseido has upped its sales and earning forecast for the year ended December 31, 2017, with net sales expected to exceed ¥1 trillion ($9.15bn) for the first time. Net sales are forecast to reach ¥1.005tn ($9.2bn), up 2% from the ¥985bn ($9bn) forecast on November 9. This is in part due to the rapid global expansion of prestige brands, Shiseido said. Net income is set to come in at ¥22.5bn ($206m), up 350% on the ¥5bn ($45m) initially forecast, boosted by lower tax expenses following the US tax reform and lower-than-expected tax expenses on the gain from the transfer of Zotos International.

Data

France’s selective beauty market fell 1% to €3bn in 2017, according to The NPD Group. Excluding the end-of-year shopping season that kicked off with Black Friday, the market would have declined by 2%. The year 2017 saw the best end-of-year sales in five years, says NPD, with 30% of the sector’s annual sales done between November and December.Skincare sales were driven by masks,

which grew by 12%. Masks account for 3% of the category. Sales of moisturizers grew 1%, lotions and tonics increased 2% and sales of lip care products were up 8%. In make-up, lip products saw sales growth of 3%. Lip gloss sales were up 15%, while lipstick sales increased 2%. Fragrance ended 2017 down 1% in value. In November and December, fragrance sales rose 2%. n n n

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n n n Online sales increased by 27% in 2017, contributing two growth points (in value) to the market. In part driven by millennials, online make-up sales grew by 44%. Online sales of fragrance were up 22%, while skincare sales grew 29%. Sales in brick-and-mortar stores, meanwhile, declined by 3%.

US prestige beauty sales grew 6% to $17.7bn in 2017, according to NPD. Sales were consistently strong throughout the all-important holiday season. Fragrance juices generated the most sales (in value) during this period (driven entirely by Christmas week), followed by make-up and facial skincare. Growth in make-up slowed in 2017, with sales up 6% to $8.1bn. High volume segments such as foundation (+7%) and eyeshadow (+13%) were among the growth drivers. Face primers saw 17% growth, eyebrow make-up was up 7% and lip color sales grew by 2%.After several years of soft performance, the skincare category saw its sales grow by 9%

to $5.6bn in 2017, and contributed 45% to the industry’s total gains. Growth was driven by smaller segments including masks (+32%), facial exfoliators (+12%) and cleansers (+6%). Sales of other face products, which include essences and facial sprays, grew by 39%. Facial moisturizers were up 7%. Fragrance sales increased 4% to $4bn in 2017. Juices grew by 4%. Sales of natural and artisanal fragrances were up by 32% and 14% respectively. Sales of home scents, meanwhile, increased 59% to $80.4m.

People

Revlon president and ceo Fabian Garcia has stepped down from his role at the US-based company. Garcia will stay on through the end of February. Paul Meister, currently a member of Revlon’s board of directors, will become executive vice chairman of the board and oversee day-to-day activities on an interim basis.

Avon Products has named Jan Zijderveld as ceo, effective immediately. Zijderveld succeeds Sheri McCoy. Zijderveld previously spent 30 years at Unilever, where he was most recently head of the group’s European business.

Launches

Armani Fragrances (L’Oréal) has unveiled its new scent Sì Passione, the latest edition to the brand’s Sì franchise. The fragrance bottle’s interior features red lacquering and is said to convey what the company calls the red lip effect in a bottle. Sì Passione, which was created by Julie Massé of Mane, opens with spicy pink pepper, pear and juicy blackcurrant, has a floral heart with rose and jasmine and heliotrope and a base of vanilla and cedarwood. The fragrance is fronted by Sì spokeswoman and actress Cate Blanchett.

Louis Vuitton is adding to its Les Parfums fragrance collection with the launch of Le Jour Se Lève this March. The fragrance was created by in-house perfumer Jacques Cavallier Belletrud. It contains notes of mandarin, jasmin sambac, blackcurrant and white musk. Launching at selected Louis Vuitton stores and the brand’s e-boutique, Le Jour Se Lève retails at €210 for 100ml EdP and €320 for 200ml EdP. Fragrance refills cost €125 for 100ml and €250 for 200ml. n

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

Social media monitor

Jade rollers (facial rollers made from Jade) have been quite a hit in the blogosphere. The rollers are said to improve blood circulation, reduce puffiness, promote lymphatic drainage and eliminate toxins.

A rise in the popularity of acid-based skincare products is a topic of conversation on social media, with one blogger suggesting that they could become a fundamental part of beauty routines, like moisturizers are. Popular products include REN’s Ready Steady Glow Daily AHA Tonic and Drunk Elephant’s Framboos Glycolic Night Serum.

New product formats are attracting attention on social media. The Secret Freshies deodorant is lauded for its innovative, portable format that is likened to a lip balm. US haircare brand Ouai, meanwhile, has been praised for bringing out products that have not been launched before, like the Anti-Frizz Hair Sheets (pictured). These travel-friendly sheets made from hemp paper are designed to eliminate static and tame frizz.

There is much talk about men’s make-up on social media. This follows recent events including the opening of the MMUK Man men’s make-up store in London and the launch of the gender-free Jecca make-up brand.

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Milan-based niche retailer and distributor Calé president Silvio Levi tells BW Confidential

how he sees the evolution of the niche market as more multinational companies acquire indie brands and online competition gets tougher

What’s next for niche?

How has the niche market performed in Italy in 2017? As [retail and distribution company] Calé I estimate our growth in 2017 has been around 7%, although I ended the distribution of Clive Christian. Creed is one of the brands we distribute that performs very well. We sell it in three points of sale in Milan that we opened directly: our multi-brand store Calé, the standalone Creed, and a new corner in the department store La Rinascente. More generally, Italian niche brands have probably increased their sales by at least 6%.

Which changes are shaping the retail market?Retailers show a clear preference for the major niche brands, while they seem to be abandoning the minor and experimental brands. They choose low-risk brands with a certain awareness, which guarantee sales, like Creed, Montale, L’Artisan Parfumeur, Penhaligon’s or Byredo. Minor or avant-garde brands have not grown in Italy in 2017, but fortunately international sales have allowed them to balance the loss. The most striking trend is that more distributors are investing financially to

create their own retail network. It is not a new phenomenon, as years ago, Intertrade began opening its Avery stores, Cythera opened L’Olfattorio and we have our own stores. However, there is an acceleration of the trend, and not only in Italy. For example, Dutch company Skins Cosmetics now has 13 stores, some being in franchising and one abroad in Spain. Crème de la Crème in Lithuania manages three stores. But in Italy the trend is also taking on a new form.

What is new?The company Perris Montecarlo, which distributes Houbigant and an eponymous collection, has been buying a number of perfumeries facing financial difficulties in northern Italy to then relaunch them. In Italy we can see a similar approach by some multinationals. These groups are asking perfumeries to become stores selling only the brands from their portfolio. This means that these stores are linked exclusively to one large group. This new sort of deal could have n n n

Calé president Silvio Levi

”Calé president Silvio Levi

The niche system is fragile and could be severely threatened if Amazon decided to enter this arena

“



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n n n concrete applications soon and if it works, these new types of stores would be in competition with independent niche stores. It takes us to this other trend, which is seeing niche brands being acquired by multinationals.

Do you see this as a threat to the niche market?The multinational companies acquire brands that have overcome the first steps of a launch so as to avoid high risk of failure. The conglomerate buys an idea that it would never have developed itself. I am appealing to the industry not to kill off the niche sector. It is beneficial to masstige because it gives big companies ideas for creating a bestseller in 10 years. We need to make sure niche does not become an endangered species.

Sales online represent another threat for niche brands. How do you see that?Czech company Notino, which has sales of €220m and is specialized in beauty sales online, bought a 75% share of German niche stores Mußler last year. As a consequence, all the niche fragrances have appeared on the Notino e-commerce site at discounted prices. The niche system is fragile and could be severely threatened if Amazon decided to enter the niche arena.

How can the industry react?The shopping experience in-store must become more gratifying. The niche store requires a strong support [from brands], especially in the use of social media. In Italy we need to have a generational change so that stores can be managed more efficiently. I strongly believe that a niche perfumery can financially perform as well as a conventional store. But to survive after the opening of a chain store in the vicinity, it must do at least 50% of its turnover with niche brands. In Italy we have about 140 to 170 stores of the sort, while about 300 stores offer one or two niche brands in their assortment. It is not enough to qualify them as niche perfumeries. On the other hand, for obvious reasons brands must be more careful about the quantity of products they sell to national retailers and generally have more control over international sales too. The disparity of prices in the international markets is huge.

Do you see niche stores as a competitor for traditional perfumeries?The search for personalized fragrances as an expression of originality has brought success to the niche market. This is a result of a general trend in society where individuality and the desire to be unique are strongly felt. I don’t see niche stores as a dangerous competitor to traditional perfumeries. In Italy, the competition comes more from other channels like pharmacies, drugstores and standalones like L’Erbolario. However, the niche market with its €200m turnover now has a weight of its

own, and in Italy represents about 2% of the total beauty market and about 12% of sales in perfumeries. It is important that this market keep growing without being neutralized by the multinationals. n

*Silvio Levi is also co-founder of Milan’s niche perfumery trade show Esxence

Calé president Silvio Levi

”Calé president Silvio Levi

In Italy, some multinationals are asking perfumeries to become stores selling only the brands from their portfolio. This means that these stores are linked exclusively to one large group

“



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Business has been tough in Brazil for the past three years, but there are signs that the market is beginning to look up

Turning a corner?

Brazil

Growth may still be slow, but last year there were a few bright spots in Brazil’s beauty market, and a more positive trend is set to continue for

2018. Brazil’s GDP growth was 1% in 2017 and is forecast to reach 2.7% this year, a much better performance than the 3.6% decline seen in 2016. However, the road ahead is not easy. The country witnessed a large-scale recession, with a real fall of 9% in per capita income between 2013 and 2016. The tough economy saw Brazil lose its rank as the world’s third-largest beauty market, a position it attained in 2015. According to Euromonitor International, Brazil now ranks number four, behind the US, China and Japan, with sales of $29.3bn, representing 6.6% of the global beauty market. Beauty and personal-care sales were estimated to have seen real growth of

between 1.5% to 2.5% in 2017, according to João Carlos Basilio, president of ABIHPEC, the Brazilian cosmetics and personal-care association. The worst year for the sector was 2015 when sales dropped by 8%, while the market saw a decline of 6% in 2016.

Belt tighteningIn general, consumers have tightened their belts in the face of the tough economy, with a strong trend towards a reduction in discretionary spending. Consumers are paying more attention to their budgets, making impulse purchases (attracted by discounts or low prices) and in general have become less loyal to brands. In addition, many have looked to different distribution n n n

s

”Segmenta sales director Latam Daniel Morimoto

The [fragrance] category has demonstrated its resilience. There is room for mass brands, which continue to grow and occupy space on the shelves, especially in men’s fragrance

“

credit: istock


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n n n channels in the search for lower prices and have traded down to more affordable brands or product formats. Consumers are also visiting hair salons or spas less frequently. In short, there is a clear demand for cheaper products and discounts. This has been beneficial for the mass market, especially for local players like Hinode in fragrance or Vult in make-up. But the masstige and prestige segments have suffered. Many players in

this area have been forced to go heavy on promotions, which has impacted margins. In addition, the tough economy has seen some prestige companies launch new low-cost brands.

Fragrance focusThe categories most likely to grow this year are soaps, oral care, lipsticks and, of course, fragrance. Fragrances have become the largest beauty category in terms of consumption in Brazil (18.9% of the total), followed by haircare at 17.4% and men’s grooming with 16.5%. The high number of launches, as well as steep discounts and promotions, have encouraged consumers to continue to purchase new fragrances during the crisis. Segmenta sales director Latam Daniel Morimoto comments: “2017 was a year of restructuring for the fragrances world. In addition to the current adverse economic scenario, the market for imported products faces specific challenges, ranging from a shortage of some products, to an increase in average prices and a continued decline in unit sales. (Indeed, premium scents have seen their prices increase due to the exchange rate, which has resulted in the shortage.) “However, the category has demonstrated its resilience. There is room for mass brands, which continue to grow and occupy space on the shelves, especially in men’s fragrance.” Morimoto highlights that men’s fragrance gift

sets have done particularly well, representing one of the highest growth rates in the category. Sets that stand out from the usual format of aftershaves or shower gels—for example, by offering headphones or collectible brand items—have done particularly well. On the upside, Morimoto also points out that

there has been strong launch activity in women’s fragrances and that the introduction of luxury international lines such as Tom Ford or Carolina Herrera’s top-end collection Carolina Herrera Confidential has helped the market. Sales of fragrance in Brazil are dominated by

Grupo Boticário and Natura. While both groups saw negative growth in fragrance in 2016, n n n

Top beauty companies in Brazil by market share 2016

Rank Company Market share %

1 Unilever 12.62 Natura 10.83 Grupo Boticário 10.64 L´Oréal 7.25 Colgate 6.46 Avon 6.07 P&G 5.08 Coty 4.3

Source: Euromonitor International

Top fragrance companies in Brazil by market share 2016

Rank Company Market share %

1 Grupo Boticário 37.42 Natura 35.43 Avon 10.74 Grupo Hinode 5.35 International 2.76 Jequiti 1.7

Source: Kantar Worldpanel

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Brazil n n n in volume and in value, they made a recovery in 2017. Indeed, their performance along with that of Avon and Hinode is in part responsible for the growth seen in fragrance. The two companies accounted for a combined 72.8% share of value sales in the fragrance market in 2016, against almost 76% in 2015, according to Kantar. In terms of international fragrances, Puig, LVMH and L’Oréal are the leading players—although the prestige segment represents less than 3% of the total fragrance market.

The rise of HinodeThe big news in fragrance, however, is the rise of Grupo Hinode. The company had only a 1% share of the fragrance market (in value, and 0.5% in volume) in 2015, which grew to 5.3% in 2016. Hinode, which was forecasting sales of R$2.6bn (US$803m) in 2017, uses the multi-level marketing model and has 750,000 sales representatives in Brazil, Colombia and Peru. The crisis encouraged more people to become sales representatives to supplement their income, which has fueled Hinode’s growth. The company has big ambitions for fragrance, with plans to launch in all continents in the future.

Big enough to resistOverall, Brazil’s beauty market is dominated by large groups, which are for the most part well-positioned to withstand the difficulties that the country is experiencing. Just eight companies account for more than 60% of the market. The leader in the segment since 2014 has been Unilever with a 12.6% market share, followed by Natura, which led the market from 2010 to 2013, according to Euromonitor. In 2010, Natura claimed a 14.9% share of the market, which fell to 10.8% in

2016. However, the group’s acquisition of The Body Shop from L’Oréal is set to boost its position in the market. Grupo Boticário takes the number-three position with a 10.6% share. With the purchase of Brazilian company Hypermarcas and the P&G beauty brands, Coty saw its share of the market increase from 0.5% in 2015 to 4.3% in 2016. Grupo Boticário, which has been steadily diversifying its business, has managed

to ride the storm in Brazil over the past few years. According to the group’s president Artur Grynbaum, the company opened 61 new stores in 2017 and saw growth of around 6%. The group has just inaugurated a new concept store in Rio de Janeiro for its O Boticário brand. But while retail is a priority for Grupo Boticário, and now Natura following

its acquisition of The Body Shop, the direct-sales channel continues to be strong, especially in light of the tough economic situation. Direct selling is an important complementary source of income and can raise the family budget by an average of 40%. In 2016, direct-sales revenues were R$42.7bn (US$13.18bn) all industries combined (equivalent to 8% of the GDP of the manufacturing industry).Drugstores too, are performing well. There are more than 60,000 drugstores in

Brazil and there has been strong expansion in the channel over the past few years. In addition, many players have devoted bigger spaces to beauty and personal care. Given the difficult times the sector has seen, more and better space for beauty can only be good for the market. n

Masstige and prestige segments have suffered. Many players in this area have been forced to go heavy on promotions, which has impacted margins. In addition, the tough economy has seen some prestige companies launch new low-cost brands

The PCD trade show, owned by Easyfairs and held concurrently with aerosol dispensing event ADF, continues to grow. This year’s events, which attracted nearly 500 exhibiting

companies in total, up from 420 a year ago, took place at the Porte de Versailles exhibition center in Paris for the second year in a bigger, revamped hall. Visitors to the show numbered 7,224, up 12% on 2017.As the first major trade event of the year, PCD saw exhibitors in an upbeat mood, citing

renewed demand for fragrance projects for 2019 and an uptick in volume. “2018 will be a very good year,” said Stoelzle Masnières Parfumerie perfumery business unit managing director Etienne Gruyez. “Customers had been reducing their stocks over the past couple of years, which was a psychological factor. It’s the bullwhip effect. They are now increasing volumes significantly, despite the fact that the market is not growing much overall.”The biggest demand from customers at the moment is around sustainability and

personalization, most exhibitors agreed. “Eco-friendly is not a trend anymore, it’s really established as a constant,” said Bormioli Luigi sales manager Federico Montali. Nevertheless, demand for standard products that allow flexibility in terms of decoration as well as shorter lead times remains strong, others said, and pressure on costs is as high as ever, putting a brake on creativity in many cases.New to the event this year was the Accelerator Zone, which housed start-ups offering

innovative concepts, the Innovation & Technology Theatre, which allowed exhibitors a stage to showcase their innovations, and an area exhibiting the 2017 Pentawards winners. The Pentawards competition was bought by Easyfairs in 2016. Another new feature was the introduction of smart badges allowing visitors to check in at each stand to receive information about the companies they had visited.

BW Confidential highlights the innovations on show at packaging trade event PCD Paris, which took place from January 31 - February 1, 2018 in Paris

Packing a punch

PCD Paris

ADF & PCD Paris Took place: Paris Porte de Versailles January 31 - February 1, 2018Exhibitors: 490New exhibitors: 140Visitors: 7,224, +12% vs 2017

Seen in showFrench packager Albéa showed a Duo Stick (pictured), designed to tap into demand for products that can be personalized in-store by allowing consumers to mix and match different formulas and shades. Two capsules clip into the body of the pack according to a consumer’s needs and demands. Also on show was Albéa’s latest eye applicator family, Lash Expression (pictured), which includes two molded mascara brushes for clean application as well as volume and curl respectively, and one for brows with a shaping effect for gel formulas. It also highlighted a cotton brush for lash care formulas created out of its recently opened Albéa Tips Studio facility in Morristown, Tennessee, US. n n n

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PCD Paris

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n n n Glassmaker Verescence put the focus on sustainable development at the show. The company showed its light weight glass. For example, for its 50ml jars, the company has reduced the glass weight by 60%, from 98g to 39g, while still offering the same level of resistance. It also showcased its Life Cycle Assessment Tool, which enables it to evaluate the sustainability of fragrance and cosmetics glass packaging to help its clients purchase responsibly.

Italian glassmaker Bormioli Luigi presented its new Prisma coating technology, which gives glass bottles an on-trend iridescent finish. Using multiple ultra-thin layers inspired by eyewear coating technology, it uses metallic salts or metallic oxides to create the effect. By adding a colored protective coating over the top, different effects can be created. The main aim of the technology is to respond to market demand for visual differentiation, but the company is also working on developing technical properties including non-transferral of fingerprints, as well as UV and microbial protection further down the line. Projects are already in the works for a late 2018 market launch in the fragrance segment.

Silgan Dispensing Systems has collaborated with tube specialist Neopac to develop a new airless pump-on-tube, Amplify, which debuted at the show. The pack has no metal components, allowing maximum formula compatibility, and restitutes 96% of the product, reducing wastage in line with consumer concerns. It also offers controlled dosage. Amplify is pitched as a lightweight and portable solution for brands seeking to offer a standard premium pack that is cost-effective because of the low number of components involved.

French glassmaker Stoelzle Masnières Parfumerie introduced a new glass coating technology designed to reduce the environmental impact of decorating glass bottles for perfumery compared with traditional lacquering technology. Called Quali Glass Coat 2.0, the technique, which involves a powder paint being sprayed onto the container, offers a variety of possible visual effects, including metallic or glitter finishes. Unlike lacquering, all the product, which is 100% of mineral origin, is applied to the bottle, reducing waste. Additional décor can be applied over the top of the coating, providing supplementary decoration possibilities. It also offers the advantage of allowing brands to recycle unused bottles, as it can be used to cover existing décor.

France-based Glass Surface Technology showcased its coatings for the interior of glass and plastic bottles and jars under the Inner Surface Design brand name. Thanks to a new application process, the company offers a range of design options for inner glass, ceramic or plastic packaging, such as detailed motifs, logos, drawings and color effects. The company claims its technology means that there is no interaction between the packaging and the formula. n n n


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PCD Parisn n n French start-up Woodoo, exhibiting in the Accelerator Zone, rebuilds wood at a molecular level, reinforcing the air content in the age-old material with a natural resin and giving it new properties. The company’s aim is to use varieties of wood that are not currently exploited, redynamizing the forestry industry. Its transparency gives the product unique visual properties. Founded in 2016, the company received several innovation prizes last year and is planning a capital increase this year. The luxury market is its initial target, with demand for exclusivity high, says founder and ceo Timothée Boitouzet.

French decoration and accessories specialist Seram focused on demand for personalization, presenting solutions that are easy and cost-effective at the point of sale. Its stickers, made of materials like ribbon or wood, can be stuck to bottles in-store and accessorized with nickel transfer letter or message stickers, creating an interactive experience for the consumer. Seram also collaborated with start-up Sericyne, which exhibited in the Accelerator Zone, on a range of accessories. Sericyne’s offer is based on what it describes as “natural 3D printing,”—it uses silkworms to directly weave 2D or 3D shapes on a frame (rather than into a cocoon). At the show, the start-up showed, for example, fragrance bottles clad in slightly iridescent white silk, either fully coated or directly woven into a decorative pattern.

French olfactory marketing firm ID Scent is working on developing new perfumed materials using micro-encapsulation technology in line with demand for products that go beyond sampling and become gifts. Its latest development is a perfumed rubber that works as an eraser, perfuming the paper it is rubbed against. The company is also working on developing solutions for materials including wool, leather and silk further down the line as demand for differentiated solutions grows. n

The ADF&PCD Paris Awards: Recognizing innovation The show held its Awards ceremony once again this year, recognizing the most innovative beauty packaging, aerosols and dispensing systems launched in Europe and globally over the past year. From a total of 73 entries received, 38 finalists were selected for the PCD Awards and 24 for ADF. The winners included L’Oréal Professionnel’s Powermix, Chanel’s La Crème Main, Chanel Gabrielle and Comme des Garçons Concrete. For a full list of winners, see our website.

BW Confidential teamed up with ADF&PCD Paris to produce a special edition magazine with a full listing of the products nominated for the Awards and insights into to the judging process. The magazine can be accessed here.

https://www.bwconfidential.com/

https://www.bwconfidential.com/magazine/ADF_PCDParisAwards2018/mobile/index.html


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US-based duty-free and travel retailer Duty Free Americas (DFA) has overhauled and extended part of its retail operation at The Venetian Macao, an integrated resort hotel

that pays homage to Venice, Italy. Around 600m2 (6,458ft2) of the company’s total 1,050m2 (11,302ft2) space has been

revamped—most of it dedicated to beauty. A host of new brands have made their debut with DFA in Macau, including Benefit, Givenchy and Make Up For Ever—all part of LVMH; Shiseido’s Clé de Peau Beauté and Nars; L’Oréal’s La Roche-Posay, Vichy and Kérastase; and Korean brands The History of Whoo, Innisfree and Etude House.Anchors at either side of the store are Lancôme—which features its latest store

design—and Christian Dior, each with about 82m2 (883ft2). L’Oréal looks to have gained handsomely from the renovations: YSL and Giorgio Armani Beauty have more space, and other brands in the French company’s stable such as Biotherm, Kiehl’s, Shu Uemura, L’Oréal Paris and Clarisonic are also reconfigured, with some prominently positioned. Also benefiting from the reconfiguration were Shiseido, Jurlique and Moroccanoil. In DFA’s existing 450m2 (4,843ft2) shop across the hall are the Christian Dior anchor

boutique, Guerlain, La Prairie, SK-II, Hermès, Clarins, and the Amore Pacific brands Hera, Sulwhasoo and Laneige.DFA is a well-established duty-free and travel-retail operator at The Venetian having

been there for just over a decade, and its latest beauty revamp comes at just the right time. The hotel’s shopping facilities are a key draw for Chinese tourists and DFA hopes to reap sales rewards on the back of an uplift in travel from the mainland, after some lackluster years. Jerome Falic, ceo of DFA told BW Confidential : “We opened the shop on December 17

and have achieved huge growth since then. The traffic in Macau is increasing every week and as it rises, our sales will grow. With our new offers and latest design, penetration into our shops has increased as well.” n



Duty Free Americas makes a beauty statement in Macau

Building beauty

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s The store features a range of Korean brands, including Etude House (left) and Innisfree (right)

s Both Lancôme (left) and Clé de Peau Beauté (right) have prime positions at the store

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