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WWD BEAUTY BIZ 1
AN ISSUE OF WOMEN’S WEAR DAILY
CREATIVE CONTROL
SOUL SEARCHING
WITH MARY J. BLIGE
AT HOME WITH ITALY’S
FIRST FAMILY OF MAKEUP
ALL THE GLAM OF CANNES
IN THE LAB WITH BEAUTY’S
MOST FORWARD-THINKING
SCIENTISTS PURPOSE
SPECIAL!
MEN’S OUTLOOK
PURPOSEAVON’S ANDREA JUNG ON HER DECADELONG
TRANSFORMATION OF THE DIRECT-SELL GIANT
AVON’S ANDREA JUNG ON HER DECADELONG
TRANSFORMATION OF THE DIRECT-SELL GIANT
DRIVENDRIVEN
BB1006.001.COVER.a;28.indd 1 6/9/10 2:45:41 PM
elasticity discovery
introducing the
AVEENO® AGELESS VITALITY™
ELASTICITY RECHARGING SYSTEM
available for Day, Night and Eye
over time, elastin fi bers in skin become
weak, losing fl exibility
and fi rmness
revolutionary biomineral technology
activates when applied with ACTIVE NATURALS®
formula, containing ingredients shown to
multiply the building blocks of elastin*
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.............................................
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
retinol botox® biominerals
2002 20101976
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dr. Mary McCombdermatologist
before
(dramatization)
I was impressed that
100% of women
showed improvement in
fi rmness, wrinkles, brown
spots or texture.
after **
save $15 at aveenoelasticity.com
new
© Johnson & Johnson Consumer Companies, Inc. 2010* in-vitro results**clinical results – DAY PRODUCT, 4 weeksBotox® is a registered trademark of Allergan, Inc.
of the decade
elasticity discovery
introducing the
AVEENO® AGELESS VITALITY™
ELASTICITY RECHARGING SYSTEM
available for Day, Night and Eye
over time, elastin fi bers in skin become
weak, losing fl exibility
and fi rmness
revolutionary biomineral technology
activates when applied with ACTIVE NATURALS®
formula, containing ingredients shown to
multiply the building blocks of elastin*
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.............................................
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
retinol botox® biominerals
2002 20101976
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dr. Mary McCombdermatologist
before
(dramatization)
I was impressed that
100% of women
showed improvement in
fi rmness, wrinkles, brown
spots or texture.
after **
save $15 at aveenoelasticity.com
new
© Johnson & Johnson Consumer Companies, Inc. 2010* in-vitro results**clinical results – DAY PRODUCT, 4 weeksBotox® is a registered trademark of Allergan, Inc.
of the decade
4 WWD BEAUTY BIZ
08
WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2010 FAIRCHILD
FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 199, NO. 127. June 18, 2010. WWD (ISSN
0149–5380) is published daily (except for Saturdays, Sundays and holidays, with one additional issue in January,
May, June, October and December, two additional issues in March, April, August, September and November, and three
additional issues in February) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc.
PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S. I. Newhouse,
Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright,
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THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED
ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY
OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER
MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY
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ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.
ON THE COVER
Andrea Jung, chairman of the board and chief executive officer of Avon Products Inc., photographed for WWD Beauty Biz by Melanie Dunea.
WWDBEAUTYBIZ CONTENTS
THIS MONTH: ANDREA JUNG UNVEILS AVON’S POSTRECESSION GAME PLAN, EXPLORING BEAUTY’S MIND-BENDING NEW TECHNOLOGIES AND WHY THE SUCCESS OF THE MEN’S MARKET IN EUROPE BODES WELL FOR ELSEWHERE.
08 PUTTIN’ ON THE RITZ Is there anyplace more glam than Cannes? Here, four beauties who rocked the style stakes during the weeklong fi lm festival.
10 WHAT’S HOT NOW Tallying up the month in beauty—from the best- selling department store color cosmetics items to the June magazines with the most beauty coverage.
12 PEOPLE, PLACES AND LIPSTICKS Elemis’ double-decker mobile spa, a toothpaste line worth smiling about and a trend report from Australian Fashion Week.
14 WHAT’S IN STORE From head-to-toe summer protection to products that celebrate the resurgence of vanilla, this month’s launches are playful and practical. Plus, the newest men’s skin and hair care.
18 INSIDE OUT: CAMELLIA SINENSIS Camellia sinensis has been used for centuries for cooking, healing and even styling sumo wrestlers’ hair. It’s also a popular beauty ingredient, particularly in a slew of summer products.
20 WORLD WIDE WATCH: ITALY Beauty is an integral part of life in Italy, where women demonstrate their innate affi nity for the category by continuing to spend robustly despite the recession.
22 BEAUTY INCOGNITO: MEN’S SKIN CARE Our all-male team of undercover reporters ventures into drug and department stores worldwide in search of effective—and comprehensible—skin care regimens.
26 MASTER MINDS At work and play with the industry’s top execs at the recent WWD Beauty CEO Summit in Palm Beach, Fla.
28 THE BEAU IDEAL As men’s fragrance and grooming gain traction in Europe, marketers are looking to translate their learnings into a template for growth elsewhere.
34 NEW DECADE DAWNING During her 10-year tenure as chief executive offi cer of Avon, Andrea Jung has transformed the very essence of the company. With her sights set on the next decade, Jung talks technology, acquisitions and her strategy for turning the economy’s recovery into an engine for accelerated growth.
40 LAB QUEST From microalgae to maca root, ingredients and technologies under the beauty microscope.
42 MAKEUP’S FIRST FAMILY By combining art and science—literally—the Milan- based Ferrari clan has made Intercos into a global color cosmetics powerhouse.
46 A WOMAN IN FULL The multitalented Mary J. Blige on self-acceptance and the personal journey that inspires her Grammy- winning music, philanthropic efforts and new scent.
42 28
BEC
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BY H
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BB1006.004.TOC.a;20.indd 4 6/9/10 7:06:10 PM
©2010 A
von P
roducts
Foundation
IF ONE WOMAN IS ABUSED, WE ALL SUFFER.When you wear the Empowerment Bracelet, you speak out against domestic abuse. Let’s show our solidarity.
Let’s support the one in three American women who will be victims of domestic abuse during their lives.
Go to avonfoundation.org or call 866-505-AVON. Raise your voice. Speak out. Make a difference.
501 (c) (3) public charity
6 WWD Beauty Biz
EDITOR’S LETTER
pho
to b
y Jo
hn L
und/
Gett
y Im
aGes
Rising To The Challenge
Pete Born ExEcutivE Editor, BEautyJenny B. Fine Editor
JenniFer Weil EuropEan EditorAndreA nAgel Mass MarkEt BEauty EditorJulie nAughton sEnior prEstigE MarkEt BEauty EditorMolly Prior BEauty financial EditorMAttheW W. evAns BEauty nEws EditorBrid Costello london BEauty EditorFAye BrookMAn contriButing Editor BelisA silvA Editorial assistantlisA kelly sEnior copy EditorArielle gArdner Editorial intErn
ART dAnilo MAtz art dirEctorPAMelA oleCki consulting art dirEctor Courtney MitChell dEsignEr
COnTRIbuTORSSamantha Conti anD nina JoneS (LonDon), miLeS SoCha (PariS), kerry oLSen (miLan), marCy meDina anD raCheL brown (LoS angeLeS), meLiSSa Drier anD SuSan Stone (berLin), eLizabeth thurman (atLanta), amanDa kaiSer anD koJi hirano (tokyo)
PhOTOgRAPhERSJohn aquino, george ChinSee, Steve eiChner, kyLe eriCkSen, thomaS iannaCCone, robert mitra
PhOTOAnitA Bethel photo & iMaging dirEctorerin FitzgerAld iMaging coordinatorCArrie ProvenzAno photo Editorlexie MorelAnd, Ashley linn MArtin photo coordinators
PAtriCk MCCArthy chairMan & Editorial dirEctor, fairchild fashion groupedWArd nArdozA Editor in chiEf, wwd, associatE Editorial dirEctor, fairchild fashion group
ADvERTISIngWill sChenCk vicE prEsidEnt, chiEf rEvEnuE officErMelissA BreCher associatE puBlishEr, MarkEtingMelissA MAttiACe advErtising dirEctor steve sottile advErtising dirEctor shelly rAPoPort advErtising dirEctorJill Biren wEst coast dirEctorodile edA-Pierre account ManagEr, parisdeBi ChiriChellA chiEf opErating officEr, fairchild fashion groupkAthy riess ExEcutivE dirEctor of financE & BusinEss opErations, fairchild fashion group kAren Chiu BusinEss dirEctor, fairchild fashion groupdevon Foord financE dirEctor, fairchild fashion group Allison sMith associatE BusinEss ManagEr, wwdJAnet JAnoFF gEnEral ManagEr, wwd
MARkETIng/PROMOTIOnheAther guMBley ExEcutivE dirEctor, crEativE sErvicEsdAnielle MCMurrAy spEcial projEcts dirEctorkristen M. WildMAn dirEctor, EvEnt MarkEtingJenniFer PinCus dirEctor, intEgratEd MarkEtingBenJAMin gelinAs dEsign dirEctor diAne huntley copy dirEctorJAiMe MCCArthy sEnior ManagEr, intEgratEd MarkEtingting WAng ManagEr, EvEnt MarkEtingBridgit MAzzA ManagEr, intEgratEd MarkEting stePhAnie BroWn coordinator, intEgratEd MarkEtingdAnielle k. steWArt coordinator, intEgratEd MarkEting
PRODuCTIOngenA kelly ExEcutivE dirEctor, Manufacturing & distriButionChris Wengiel group production dirEctorkevin hurley production dirEctorJill Breiner associatE production ManagEr
CIRCuLATIOnriChArd FrAnz circulation/salEs dirEctorJohn Cross fulfillMEnt dirEctorJAMes rossi MarkEting dirEctor
ginA sAnders prEsidEnt & cEo
During her 10-year tenure as chief executive officer of Avon Products Inc., Andrea Jung has adroitly navigated the company through some tough times. But even she had never experienced anything close to the global economic implosion that rocked 2009. Where others saw misfortune, however, Jung—one of the longest-serving ceo’s in the beauty industry—saw opportunity. Jung’s strategy seems to have worked: In its most recent quarter ended March 31, Avon’s revenues rose 13.9 percent to $2.49 billion from $2.19 billion. Beauty sales gained 14 percent to $1.78 billion, compared with the year-ago quarter, on active representative growth of 6 percent, which includes gains in all regions but China. Far from being ready to hang up her hat, Jung, it seems, is just getting started, reports beauty financial editor Molly Prior. Discover Jung’s detailed strategy for Avon’s future in “New Decade Dawning” on page 34.
The Milan-based Ferrari clan is also not content to rest on its very successful laurels. As the owners of Intercos, the world’s most innovative color cosmetics manufacturer, the Ferraris are on a constant quest to push both creativity and technology to new highs. As Pete Born and Kerry Olsen found when they visited patriarch Dario and his family in their art-filled town house, their passion for beauty is truly
all-encompassing. Their story, “Makeup’s First Family,” is on page 42.
While passion for beauty is overstating it, many European men do have an affinity for grooming and fragrance that is helping to propel strong sales of men’s products in Western Europe, particularly in the mass market skin care category. “We’re reaching what we’d call a tipping point,” L’Oréal’s Jean-Jacques Lebel tells European beauty editor Jennifer Weil. “Things are really happening in a big way.” Find out why he’s so bullish—and how companies are using their success in Europe as a template for growth in North America—in “The Beau Ideal” on page 28.
Growing the men’s business was a hot topic at the WWD Beauty CEO Summit held in Palm Beach, Fla., in May, as was the need for continued, meaningful innovation. To that end, we decided to pay a visit to some cutting-edge labs to find out what the world’s most forward-thinking scientists are working on in the beauty arena. For a category-by-category report, turn to “Lab Quest” on page 40. I’d love to hear what you think will be the next big breakthrough in beauty. E-mail me at [email protected]. —JEnny b. FInE
MASThEAD
a FairChiLD PubLiCation
WE MEAN BUSINESS.
SINCE 1910
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February 1969 | Jacqueline Kennedy Onassis
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PUTTIN’ ON THE RITZThe Cannes Film Festival is known for attracting the world’s most glamorous women, and this year’s edition, the 63rd annual, didn’t disappoint. A bevy of A-listers proved themselves up for the weeklong beauty marathon, hitting all the right notes, whether the event called for beach chic or an all-out glam slam.
NAOMI WATTS AT THE FAIR GAME PREMIERE.
BB1006.008(9).GoodLooking.a;30.indd 8 6/9/10 2:12:32 PM
KATE BECKINSALEWAS A JUROR AT THIS
YEAR’S FESTIVAL,where the English-born beauty showed herself equally as adept at performing beauty duty, choosing an individual look for each premiere, gala and party she attended. The common theme: soft makeup and statement-making hair.
NAOMI WATTSWAS PROMOTING FAIR GAME,the story of outed CIA agent Valerie Plame, but there was nothing undercover about the actress’ multiple appearances in Cannes. From bold red lips and tousled waves for day or night to sleek and neutral, Watts displayed an impressive penchant for mixing it up—and keeping the shutterbugs snapping.
NAOMI CAMPBELLWAS IN TOWN TO
CELEBRATE HER 40TH
BIRTHDAY with billionaire Russian beau Vladislav Doronin. The supermodel rocked a variety of retro hair looks, from a bob to a pageboy to a Seventies shag, as she made the rounds of movie premieres and parties, but she kept her makeup elegantly simple with lined eyes and rosy cheeks.
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SALMA HAYEKWAS THE UNDISPUTED STYLE
STAR OF THE WEEK.Wearing Gucci Première, the label’s new couture line, she expertly worked each look from head to toe, be it soft waves and a side part to offset an asymmetric neckline or fi ery red lips and matching jewels to complement a gown of the same hue.
BB1006.008(9).GoodLooking.a;30.indd 9 6/9/10 2:12:48 PM
10 WWD BEAUTY BIZ
Buzz-O-Meter
Bzzz
WHAT’S HOT NOWFrom best-selling makeup products nationwide to the magazines with the most beauty
editorial coverage, a quantitative look at the month in beauty. COMPILED BY JENNY B. FINE
STIL
L LI
FE P
HOTO
S BY
THO
MAS
IAN
NACC
ONE
Beauty as a category accounts for a signifi cant percent of the advertising pages in women’s magazines. To fi nd out if editorial pages followed suit, we counted the number of editorial pages devoted to beauty in the June issues of 17 magazines. (Total page counts are in parentheses next to each title’s name.) This being June, the most popular topics included comprehensive primers on sun safety and lots of tips for bikini-ready bodies. Beauty editors also were taken with turquoise makeup, steals and deals and, of course, a staple of warm-weather mags: sexy summer hairstyles.
ALLURE (162) 33.3
COSMO (270) 22.6
ELLE (222) 20.5*
ESSENCE (192) 5.6
FITNESS (176) 12
HARPER’S 7
LUCKY (148) 12**
19
MORE (148) 4
NYLON (168) 16
12
REDBOOK (224) 15***
SELF (148) 17
3
VOGUE (194) 4.5
W (104)
*Includes a 16.5-page special body and health section.
**Includes fi ve “Lucky Breaks” shopping promotional pages.
***Includes two pages of men’s grooming in “Men, Sex &
Love” supplement. PAGES COUNT
1.5
BAZAAR (190)
CL AIRE (204)
MAGAZINE (188)
COUNTRY (128)
MAKEUP MATTERSPrestige makeup sold in U.S.
department stores saw a growth in
dollar volume for the fi rst calendar
quarter of 2010 with a total sales
gain of 2 percent year to date, the
fi rst quarterly growth for the category
since the second quarter of 2008.
MAKEUP CATEGORY GROWTH BY REGIONTOTAL +2%MIDDLE ATLANTIC+2%PACIFIC-2%SOUTH ATLANTIC+1%WEST NORTH CENTRAL+1%WEST SOUTH CENTRAL+2%
BEST-SELLING ITEMS BY REGION
EYEMAC Eye Shadow
in Naked Lunch
MAC Eye Shadow
in Shroom
Clinique Quickliner for
Eyes in Dark Chocolate
REGION
MIDDLE ATLANTIC
PACIFIC
WEST NORTH CENTRAL
LIP MAC Viva Glam VII Lipstick
in Gaga
MAC Viva Glam VII Lipstick
in Gaga
Clinique Quickliner for
Lips in Lip Blush
BLUSHNars Blush Orgasm
MAC Powder Blush
in Margin
Clinique Soft Pressed
Powder Blush in New Clover
Ranked by dollars for the fi rst quarter of 2010, MAC is the number-one brand in the Pacifi c and Clinique is number one in the
Middle Atlantic and West North Central department stores. Of note here, says The NPD Group, which supplied these fi gures,
is Nars, which ranks ninth in dollars, but has the number-one blush item. Also interesting: The number-one-selling blush in the
Middle Atlantic is a peachy pink shade versus a brown shade in the Pacifi c and a violet shade in the West North Central.
Source: The NPD Group
01
02
03
01 Clinique Quickliner in Dark Chocolate and Lip Blush.02 MAC Eye Shadow in Naked Lunch.03 MAC Viva Glam VII Lipstick in Gaga.04 Nars Blush in Orgasm.
MARIE
O, THE OPRAH
TOWN &
04
BB1006.010.buzz.b;17.indd 10 6/9/10 12:38:26 PM
INTRODUCING
LIPCLICK FULL COLOR LIPSTICK
8 LUMINOUS COLORS
1 INGENIOUS MAGNETIC CASE
meetmark.com
LIGHT SHOWLuminizers, futuristic metallic foils and next-generation
glitters illuminated skin to great effect. Napoleon Perdis
devised contrasting versions of the sparkling skin: at Dion
Lee, it was an understated, light-
refl ecting glow, while at Alex
Perry, an Arabian princess
inspiration propelled
Perdis to dust fi nely
milled silvery glitter in a
mask shape over the
forehead and smoky
black eyes.
12 WWD BEAUTY BIZ
SUNSET DOWN UNDERResembling the intense shades of the Australian outback at dusk,
a color scheme of peach, pink and copper eyes and cheeks were
popular at multiple shows. Hues ranged from shimmery peachy
pink to baked peach bronze to coppery bronzes, often offset
by pops of tangy orange, pink and turquoise. “Warm peach and
orange tones are not as chalky as pastels and are more fl attering
for a hazy, soft eye,” said makeup artist Noni Smith
for MAC at Camilla and Marc, who mixed
MAC pigment powders Neon Orange,
Coral and Acid Orange to get the
right hue for a soft but zingy effect.
People, Places & Lipsticks
BEAUTY, SYDNEY-STYLE
AURELIO COSTARELLA
ALEX PERRY
LISA HO
ROMANCE WAS BORN ZIMMERMAN
Echoing Rosemount Australian Fashion Week’s
jaw-dropping backdrop of Sydney Harbour
Bridge and the Opera House,
dramatic hair and makeup
unfolded at the summer
2011 collections. Here, the
season’s major trends.
BY STEPHANIE EPIRO
DARK ARTSDesigners dabbled with the dark, mystical side of
beauty, articulated in intense lip shades, tribal markings
and textured appliqués. A head-turning pout in a
semimatte plum burgundy was the focal point on
Zimmerman’s face, where makeup artist Linda
Jefferyes blended MAC’s Lipmix Burgundy and
Plum. Black-outlined magenta shades gave the
vamps at Romance Was Born an intimidating
edge, while ornamented eyebrows had a punk vibe
at Saint Augustine, and faces bore mysterious tribal
markings at Kirrily Johnston.
SAINT AUGUSTINE
ROMANCE WAS BORN
KIRRILY JOHNSTON
RUBY SMALL
NOOKIE
CAMILLA AND MARC
CAMILLA AND MARC
LITTLE JOE WOMAN
PPL
BEAUTY PARLOR REDUXAppearing as though they just stepped onto the runway from their retro
beauty parlor appointment, looks inspired by Mad Men and Tom Ford’s
A Simple Man were popular in the forms of coiffed updos, winged
black eyeliner and pink lipstick. Jayson
Brunsdon’s impeccably groomed
belles lounged poolside with a girlish
fl ush from MAC’s Politely Pink
lipstick, while voluminous updos
made for sharp profi les at Nicola
Finetti, where stylist
Lance Blanchette
said, “The new updo
is tight, crisp with a
sense of discipline.”
ANNA & BOY
ANNA & BOY
NICOLA FINETTI
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BY
TOM T
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HOU
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HOTO
BY
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VAND
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ST; R
UNWAY
BY
STEP
HANI
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AC, S
IX 6
PHO
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DELL
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RACHEL GILBERT
JAYSON BRUNSDONELLERYELLERY
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Elemis is giving the term “destination spa” a new meaning. In May, the British skin care brand unveiled a double-decker bus fully kitted out with a SpaPod treatment room and consultation area. Dubbed the Elemis SpaBus, the mobile salon was designed to fete the British skin care brand’s 20th anniversary and is pitching up at music festivals and sporting events around the U.K. through December. “We’re taking Elemis to people in environments where they wouldn’t usually [expect to see the brand],” says Sean Harrington, managing director. The bus offers 15-minute face-and-body treatments, including the Skin Booster facial and the Sole Rescue foot treatment, with prices starting at $15. —BRID COSTELLO
FROM SHOWBIZ TO SHEARSAs a teen, Max Höhn wanted to become an actor,
but his mother said he fi rst had to train for a more
stable career—hairstylist. “I didn’t want to do it,
but I thought, At least I’ll get away from home,”
he remembers. The moment he fi nished, he went
off to drama school. But the stress of an actor’s
life brought him to Buddhism and it was while
chanting for serenity that Höhn kept seeing the
same image—a tiny salon with just two chairs, on
a quiet Berlin street. After three years of having
the vision, he decided to take the cosmic hint,
and in 2005 he opened his mini dream shop,
which was quickly booked up months in advance.
Höhn’s hair Zen has been such a hit he moved to
bigger digs in May, where his client list reads like
a copy of German Grazia magazine: actors, a TV
chef, fashion people. Though he’s styled celeb
weddings and red-carpet looks, Höhn is quick
to point out he’s not a star
hairdresser. “I just love
people. I didn’t know
this before!” he says,
clearly enjoying face-
to-face feedback to
applause in the dark.
—SUSAN STONE
Schröederstrasse 10, 10115 Berlin+49-30-2809-9277
BE AUT Y ON BOARD
Dental practice Dawood & Tanner plans to give its patients—and people who don’t frequent its London clinic—something to smile about, with a new dental care line that launched in Boots in May. Dubbed “tooth cleansers” rather than toothpastes, the products are meant to elevate oral hygiene from a mundane task to a beauty regimen. “Teeth are a really important aspect of beauty,” says dentist Susan Tanner, adding she hopes to promote better brushing techniques in Britain. As well as offering traditional Garden Mint and English
Peppermint varieties, the tooth cleansers, which costs about $6 for a 100-ml. bottle, also come in Brazilian Lime and Sicilian Lemon fl avors.
—B.C.
SAY CHEESE
MAX HÖHN
INSIDE HÖHN’S EXPANDED DIGS.
RELAXATION ON A ROLL.
INSIDE THE TREATMENT AREA.
UPPING THE ANTE ON TOOTHPASTE.
Dental practice Dawood & Tanner plans to give its
HÖH
N PH
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BY
TOM T
OMCZ
YK; S
PA B
US B
Y PH
IL H
OUGH
TON; S
AY C
HEES
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DAV
ID P
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HOU
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HOTO
BY
GUY
VAND
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UNWAY
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STEP
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AC, S
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PHO
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14 WWD BEAUTY BIZ
What’s In Store
GET WARM-WEATHER READY FROM HEAD
TO TOE WITH THESE NUTRIENT-INFUSED,
BEACH-INSPIRED OFFERINGS.
BY BELISA SILVAPHOTOGRAPHED BY GEORGE CHINSEE
SUNNY DELIGHTS
STYL
ED B
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NILO
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STYL
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01 GIORGIO ARMANI
ACQUA DI GIOIA
Blended to express a feeling
of harmony with nature, this
aquatic eau features crushed
mint, Italian lemon zest, water
jasmine, brown sugar and
labdanum. ($39.50; Bloomingdale’s)
02 BOND NO. 9 ANDY
WARHOL MONTAUK
Inspired by Andy Warhol’s
beloved summertime getaway,
this unisex scent blends notes
of the fl ora and fauna found
in Montauk, N.Y., including
hyacinth, honeysuckle, white
laurel and blueberry, with a
drydown of driftwood, silver
maple and red oak. ($220; Saks)
03 MALLY BEAUTY
PERFECT PREP BODY
SLIMMER IN DEEPER
Moisturizing agents improve
defi nition and deliver a golden
glow, while the fl at applicator
follows bone and muscle
contours for a slimming
effect. ($45; qvc.com)
04 THE BODY SHOP
VITAMIN C ENERGISING
FACE SPRITZ FOR DULL SKIN
Rich in vitamin C, aloe vera
and Amazon-sourced camu
camu extract, this portable,
skin-reviving mist delivers a
burst of hydration. ($18; The Body Shop)
05 L’OCCITANE BRUME
SOLEIL SUN MIST
SUMMER PROTECTION
This protective hair mist, rich
in lavender, sunfl ower seed
and eucalyptus, prevents
color fading and protects
against UV damage. ($24; L’Occitane)
06 DERMADOCTOR
GORILLA WARFARE
HAIR MINIMIZING
ANTIPERSPIRANT
Testosterone-reducing
saw palmetto minimizes
hair growth, while natural
extracts, including fi reweed,
willow bark and chaparral,
slow the synthesis of hair
proteins. ($29; Sephora)
07 MAKE UP FOR
EVER PROFESSIONAL
PARIS AQUA CREAM
WATERPROOF CREAM
COLOR IN SHADE 13
Designed for makeup artists
working in humid environs,
this waterproof, smudge-
proof formula contains
evaporating oils and a
moisture-locking polymer for
buildable, nonstreaking color.
($22; Sephora)
08 AVON SUNSET GLOW
BRONZER
Avon global creative color
director Jillian Dempsey
designed this sunny tropical
compact. ($10; avon.com)
GET WARM-WEATHER READY FROM HEAD
TO TOE WITH THESE NUTRIENT-INFUSED,
BEACH-INSPIRED OFFERINGS.
BY BELISA SILVAPHOTOGRAPHED BY GEORGE CHINSEE
SUNNY DELIGHTS
01 GIORGIO ARMANI
ACQUA DI GIOIA
Blended to express a feeling
of harmony with nature, this
aquatic eau features crushed
mint, Italian lemon zest, water
jasmine, brown sugar and
labdanum. ($39.50; Bloomingdale’s)
02 BOND NO. 9 ANDY
WARHOL MONTAUK
Inspired by Andy Warhol’s
beloved summertime getaway,
this unisex scent blends notes
of the fl ora and fauna found
in Montauk, N.Y., including
hyacinth, honeysuckle, white
laurel and blueberry, with a
drydown of driftwood, silver
maple and red oak. ($220; Saks)
03 MALLY BEAUTY
PERFECT PREP BODY
SLIMMER IN DEEPER
Moisturizing agents improve
defi nition and deliver a golden
glow, while the fl at applicator
follows bone and muscle
contours for a slimming
effect. ($45; qvc.com)
04 THE BODY SHOP
VITAMIN C ENERGISING
FACE SPRITZ FOR DULL SKIN
Rich in vitamin C, aloe vera
and Amazon-sourced camu
camu extract, this portable,
skin-reviving mist delivers a
burst of hydration. ($18; The Body Shop)
05 L’OCCITANE BRUME
SOLEIL SUN MIST
SUMMER PROTECTION
This protective hair mist, rich
in lavender, sunfl ower seed
and eucalyptus, prevents
color fading and protects
against UV damage. ($24; L’Occitane)
06 DERMADOCTOR
GORILLA WARFARE
HAIR MINIMIZING
ANTIPERSPIRANT
Testosterone-reducing
saw palmetto minimizes
hair growth, while natural
extracts, including fi reweed,
willow bark and chaparral,
slow the synthesis of hair
proteins. ($29; Sephora)
07 MAKE UP FOR
EVER PROFESSIONAL
PARIS AQUA CREAM
WATERPROOF CREAM
COLOR IN SHADE 13
Designed for makeup artists
working in humid environs,
this waterproof, smudge-
proof formula contains
evaporating oils and a
moisture-locking polymer for
buildable, nonstreaking color.
($22; Sephora)
08 AVON SUNSET GLOW
BRONZER
Avon global creative color
director Jillian Dempsey
designed this sunny tropical
compact. ($10; avon.com)
BB1006.014-17.WIS.a;32.indd 14 6/8/10 4:36:55 PM
What’s In Store
VANILLA EXTRACTS
VANILLA IS ENJOYING A RENAISSANCE IN THESE SWEET SUMMER LAUNCHES. BY BELISA SILVAPHOTOGRAPHED BY GEORGE CHINSEE
01 BENEFIT CRESCENT
ROW IN SO HOOKED ON
CARMELLA
This fl oral vanilla fragrance
contains fruity top notes of
grapefruit and rhubarb and a
fl oral heart of peony and tiare
fl ower. Vanilla, sandalwood
and amber give a soft, slightly
spicy drydown. ($36; Sephora)
02 DKNY PURE DKNY
Women farmers in Uganda
gathered the vanilla used
as the signature note of this
scent, designed to convey
feelings of peace and
mindfulness. Part of Pure’s
proceeds will benefi t CARE,
a humanitarian organization
working to fi ght global
poverty. ($80; Nordstrom)
03 DIOR ESCALE AUX
MARQUISES
Inspired by Dior perfumer
François Demachy’s travels
to island paradise French
Polynesia, the third member of
the brand’s Escale collection
is a refreshing blend of blood
orange essence, vanilla
absolute and Tahitian tiare
fl ower. ($87; Nordstrom)
04 CLARINS INSTANT SUN
LIGHT CLICK & GLOSS
SPF 6 IN 01 VANILLA
This vanilla and raspberry–
fl avored gloss, available
in three sparkling shades,
contains shea butter and
sunfl ower seed oil. ($18; Clarins counters)
05 TOM FORD BEAUTY
PRIVATE BLEND LIP
COLOR IN VANILLA SUEDE
Tom Ford’s fi rst makeup
collection comprises 12
creamy nude to cherry-hued
lipsticks housed in elegant
gold and ivory packaging.
This soft shade delivers
Brazilian murumuru butter,
chamomilla fl ower oil and
soja seed extract for a
smooth application. ($45; Saks)
06 COACH POPPY
Inspired by Coach’s namesake
fashion and accessories line,
this playful scent unites notes
of cucumber fl ower petals,
baby freesia buds and red
candied rose petals with water
lily, vanilla and marshmallow.
($60; Coach)
07 MARK THE BIG FIX 15-
IN-1 BIG BENEFITS BALM
Mark’s fi rst Fair Trade body
collection, whose proceeds
benefi t farming communities
in Africa and South America,
includes this multipurpose
balm. It fuses cocoa butter,
olive oil and vanilla sourced
from India, and can be used
15 different ways, from
softening cuticles and heels
to keeping unruly eyebrows in
place. ($10; meetmark.com)
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BB1006.014-17.WIS.a;32.indd 15 6/8/10 4:37:29 PM
16 WWD BEAUTY BIZ
What’s In Store
DESIGNED FOR MEN’S UNIQUE NEEDS, THESE
SUPERCHARGED PRODUCTS PREP
AND SOOTHE SKIN AND HAIR,
WHETHER PRE- OR POST-ADVENTURE.
BY BELISA SILVAPHOTOGRAPHED BY GEORGE CHINSEE
TRAIL BL A ZERS
01 HEY DUDE NARY
HAIRY INHIBITING HAIR
GROWTH CREAM
The Miami-based men’s line
includes this moisturizing
post-shaving cream, said
to decrease hair length
and coarseness and slow
growth with a blend of
the hair inhibitor lauryl
isoquinolinium bromide,
squalene and Barbados
aloe leaf extract. ($49; heydudeskincare.com)
02 VASELINE MEN
HEALTHY RESILIENT
SKIN COOLING
HYDRATION BODY
LOTION IN COOLING
Formulated with skin-
calming menthol and
mineral water, this
lightweight moisturizer for
body and face promises
to refresh skin on contact
and replenish minerals lost
throughout the day. ($5.99; mass retailers)
03 KIEHL’S CROSS-
TERRAIN “DRY RUN”
FOOT CREAM COOLING
PRE-GAME FORMULA
FOR ACTIVE FEET
For the launch of its
Cross-Terrain line, Kiehl’s
collaborated with National
Geographic’s Young
Explorers Program, which
supports four young men
and women traveling the
world, documenting the
products’ performance
in intense elements. This
slip-resistant formula primes
feet with a sweat-absorbing
blend of volcanic extracts
and skin-soothing aloe vera.
($18.50; Kiehl’s)
04 JACK BLACK
PERFORMANCE
REMEDY MR. FIX
IT ANTIMICROBIAL
WOUND RESCUE
SILVER GEL
Part of a new collection of
active body care for men,
this antimicrobial gel heals
cuts, burns and scrapes with
fast-acting 55 ppm silver,
which works to kill bacteria
and heal wounds. ($20; select Bloomingdale’s, Neiman Marcus, Nordstrom, Saks, Sephora)
05 GARNIER FRUCTIS
STYLE SURVIVOR
TOUGH IT OUT GLUE
WITH NATURAL CACTUS
EXTRACT
Talk about tough enough:
This nonsticky hydrating
hairstyling gel contains natural
cactus, lemon and indica
fl ower extract for 24 hours of
fl exible, sweat-proof, wind-
proof hold. ($4.89; mass retailers)
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BB1006.014-17.WIS.a;32.indd 16 6/8/10 4:37:53 PM
WWD BEAUTY BIZ 17
What’s In Store
TOP GE AR
PACKED WITH POTENT NATURAL INGREDIENTS, THE NEWEST MEN’S SKIN CARE PROMISES TO DELAY AGING, SOOTHE SKIN AND PROTECT AGAINST THE BLADE. BY BELISA SILVAPHOTOGRAPHED BY GEORGE CHINSEE
01 COMFORT ZONE MAN
SPACE OIL-CONTROL
PERFORMER FACE
This oil-controlling hydrator
contains soothing oat extract,
protective wheat proteins and
mineral-rich Swiss glacier water.
($46; comfortzone.it)
02 LIERAC HOMME AUTO
BRONZANT SELF TAN DAILY
MOISTURE GEL GRADUAL
EFFECT
A cocktail of skin-darkening
agents, including natural sugar
extracts, deliver a buildable
caramel hue. Brown algae helps
accelerate the skin’s tanning
reaction. ($25; lierac-usa.com)
03 DOVE MEN+CARE EXTRA
FRESH COOLING AGENT
BODY AND FACE WASH WITH
MICRO MOISTURE TOTAL
SKIN COMFORT
This minty cleanser is formulated
with a proprietary moisturizing
gel technology that activates
when lathered to relieve skin
discomfort and soothe irritation.
($4.99; mass retailers)
04 NIVEA FOR MEN
REVITALIZING DOUBLE
ACTION BALM
Coenzyme Q10 activates the
skin’s antioxidant defenses, while
chamomile hydrates and soothes
razor burn. ($6.99; mass retailers)
05 L’ORÉAL PARIS MEN’S
EXPERT HYDRA-ENERGETIC
EYE ROLLER
For an instant under-eye pick-
me-up, this cooling serum
delivers vitamin C and caffeine
to stimulate microcirculation
and combat dark circles. ($10.99; mass retailers)
06 GILLETTE FUSION
PROSERIES INSTANT
HYDRATION MOISTURIZER
Part of a new line designed to
comfort pre- and post-shaved
skin, this hydrator delivers vitamin
E and SPF 15 for ultraconditioning.
($7.99; mass retailers)
07 LAB SERIES SKINCARE
FOR MEN POWER
BRIGHTENING SERUM
ADVANCED TREAT
This hydrating brightener
diminishes dark spots and
improves skin tone with
reparative photosomes and an
algae-derived oil-control extract.
($50; labseries.com)
08 MOLTON BROWN
POWER-BOOST ZINC ANTI-
FATIGUE HYDRATOR
Designed for travelers, this
counteracts lack of sleep with
a zinc mineral complex, sake
extract and brightening agents,
which also minimize fi ne lines.
($40; Molton Brown)
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BB1006.014-17.WIS.a;32.indd 17 6/8/10 4:38:20 PM
The versatile plant, from which all
varieties of tea are derived, lends its
antioxidant-rich extract and skin-conditioning
oil to a host of summer launches.
BY BELISA SILVA
Inside Out
VMV Hypoallergenics Illuminants+ Face-Hand-Body
Lotion includes it for its skin-renewing properties.
Cover Girl & Olay’s Simply Ageless Serum Primer
blends the leaf extract with an amino-peptide complex
for a lifting effect, while Garnier’s Fructis Pyrithione
Zinc Anti-Dandruff Shampoo Intense Cleanse uses the
extract for detangling and smoothing damaged hair.
Camellia sinensis is an evergreen shrub, which
produces a dainty white fl ower with a pronounced
yellow stamen. While they can grow 6 feet or more, the
plants are usually kept much shorter, making for easier
leaf picking, which is done by hand.
Sent to the Trust Gardens in Savannah, Ga., in
1744, Camellia sinensis was the fi rst type of camellia
to arrive on American shores. It grows in full sun to
part shade and requires acidic soil and protection from
the cold. Camellia sinensis is a hearty plant, native
to mountainside areas with cooler temperatures.
“Camellias are permanent plants,” says Andrew
Mikolajski, the author of Camellias (The New Plant
Library). “Once you have one, you’ll have it for 30 years.”
CAMEL
LIA
PHOT
O BY
PET
ER S
MIT
HERS
/COR
BIS; P
RODU
CTS
BY G
EORG
E CH
INSE
E AN
D TH
OMAS
IAN
NACC
ONE
CAMELLIA SINENSIS
PETAL PUSHERS
01 Cover Girl & Olay Simply Ageless Serum Primer; $13.99. 02 Garnier Fructis Pyrithione Zinc Anti-Dandruff Shampoo Intense
Cleanse; $4.99.03 Philosophy Miracle Worker Miraculous Anti-Aging Concentrate; $62.04 Mark Fresh Approach Hydrating Body Cleanser; $10.05 VMV Hypoallergenics Illuminants+ Face-Hand-Body Lotion; $75.06 Doctor T’s Supergoop SPF 30 UVA & UVB Protection Sunscreen
Swipes With Zinc for Sensitive Skin; $34.
18 WWD BEAUTY BIZ
First cultivated in China more than 2,000 years ago, Camellia
sinensis, also known as the tea plant or tea shrub, is the
source of tea. The most common varieties, green, black
and oolong, are created from the dried leaves and buds
of the plant; the type derived depends on the processing.
Tea oil is extracted from the Camellia sinensis’ oil seeds and
is used as a sweet seasoning and cooking oil in Asia. Rich in
antioxidants and terpenoids, which have antiseptic benefi ts,
camellia leaf extract and tea oil have long been used to make
soap, as a freshening ingredient in laundry powders and
even to set the hair of Japanese sumo wrestlers.
The anti-infl ammatory, skin conditioning properties
of Camellia sinensis leaf extract also make it a popular
ingredient in skin and hair care products. Mark’s new
Fresh Approach Hydrating Body Cleanser taps the plant
for an antioxidant boost, while Philosophy’s wrinkle-
fi ghting Miracle Worker Miraculous Anti-Aging Concentrate
harnesses its powers to refi ne skin tone and increase
fi rmness. Doctor T’s Supergoop SPF 30 UVA & UVB
Protection Sunscreen Swipes contain the extract to reduce
irritation, calm redness and prevent signs of aging, while
BB1006.018.IO.Camellia.a;27.indd 18 6/8/10 5:39:32 PM
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Advertisement
The power of fragrance to excite our senses – to bring alive our
most cherished memories – is magical. And it’s more than that. By
harnessing the power of nature through state-of-the-art technology,
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Firmenich is dedicated to getting the most out of nature through its
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One example, soft extraction, is an innovative, sustainable technique
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A trio of Master Perfumers – Jacques Cavallier, Alberto Morillas
and Harry Frémont – are leading these groundbreaking efforts.
They explain, “Our passion is to uncover
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When flowers undergo an extraction process, they yield a precious,
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The result is NatureIntact®, a limited collection of the most sublime
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Valuing Nature
From the production and harvesting of plant materials to the
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NATURALS by Firmenich
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20 WWD BEAUTY BIZ
Ciao, bella! (Hello, beautiful!) The Italian phrase known the world over reveals the cult of beauty that emanates from each and
every one of Italy’s sun-kissed pores. The artfully disheveled, bare-faced look is not for this Southern European population that prides itself on la bella fi gura, or putting one’s best face forward at all times, both fi guratively and literally.
Translated into beauty and personal care retail sales, Italy’s love of preening has garnered this nation of 60 million the number-four ranking in Western Europe after Germany, France and the U.K., according to Euromonitor
International, making it a key target for potential growth. Euromonitor International
says that last year, Italians spent to the tune of $12.5 billion on cosmetics and toiletries compared with front-runner
Germany, which registered retail sales of $17.37 billion.
Despite the effects of the global economic crisis, Italian cosmetics consumption grew in 2009 in all
distribution channels, with the exception of beauty and hairdressing salons,
down 4.5 percent and 5.1 percent, respectively, according to Unipro, the Italian Association of Cosmetic Industries, highlighting a fundamental shift in consumers’ buying patterns and a swing toward new distribution models.
“The Italian cosmetics and toiletries market is a stable one. It grew around 1 percent despite a global recession and drop in [gross domestic product],” says Gloria Segreto, senior research analyst for Italy at Euromonitor International. Italian GDP fell 5 percent last year compared with 2008, and unemployment stands at 8 percent as of March, according to Istat, the National Institute of Statistics. Despite the economic odds, however, the domestic market has managed to sustain growth, albeit small, in key areas such as hair care and skin care. Hair care grew 2.3 percent in 2009 to $1.8 billion, highlighting not only a newfound value-conscious outlook, but a fast-growing prestige retail channel, too.
“The fi gures prove Italians are not prepared to compromise on their beauty regimes. Cosmetics are no longer perceived as a luxury, but holistic, with a concept of well-being replacing the traditional view of beauty,” says Segreto.
If it’s well-being one is after, you don’t have to look far in Italy to fi nd a source. Pharmacies cover the length and breadth of the country—16,000 in total, according to Unipro—retailing a mixture of pharmaceutical products alongside skin care and cosmetics, with the added bonus of expert advice from white coat–clad sales assistants. Last year, pharmacies’ total group sales touched $1.43 billion, a substantial 3.2 percent increase given the tough circumstances, accounting for 15.7 percent of Italy’s beauty sales. Perfumeries, which traditionally hold the highest share of consumption in Italy (25 percent) after mass market channels, ended the year down 3.5 percent, registering $2.2 billion in sales.
“The growth of pharmacies and mass market distribution channels refl ects two major consumer trends,” says Orna Nofarber, managing director of Estée Lauder Italy. “The [fi rst is the] search for authority and credibility in the area of skin care, therefore the pharmacy is seen as a safe environment, and secondly, consumers crossing channels because of convenience and affordability.”
L’Oréal Italia, the country’s market leader with a 16 percent market share in 2008, according to Euromonitor, believes the pharmacy sector is at an interesting period in its development. “[The pharmacy] is a channel used by consumers who are particularly keen on cosmetics, but who are also interested in health care–related aspects. Offering products that meet both these needs is becoming an essential key to having success in this channel,” says Filippo de Caterina, corporate communication director for L’Oréal. Rounding out the top fi ve companies are Procter & Gamble Italy SpA, Beiersdorf SpA, Unilever Italy SpA and The Bolton Group, according to Euromonitor.
The demand for a diverse product mix is driving a fundamental shift in buying habits. An historical and entrenched love of high-end prestige products is now matched at the opposite end of the spectrum with a desire for lower-price products, underpinned by a mass distribution that has increased 1.2 percent year-over-year in the past fi ve years. In 2009, sales grew 2.7 percent to about $5.06 billion, according to Unipro.
Nofarber of Estée Lauder compares the shift in buying habits with that seen in the fashion industry, where consumers continue to buy luxury labels but also enjoy mixing them with lower-price fi nds. “The borders between mass and prestige
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ITALY
World Wide Watch ITALY
VIVA BEAUTY! ITALIAN WOMEN HAVE LONG HAD A LOVE AFFAIR WITH BEAUTY, AND THEIR ARDOR
SHOWS NO SIGNS OF SLOWING AS THE INDUSTRY CONTINUES TO POST SOLID GROWTH.
Population 60,535,000
Unemployment 2,100,000 (8.6 percent)
Interest Rate: 1.00 percent
Sources: Bank of Italy, World Bank, Istat
Capital Rome
GDP Growth +0.5 percent (Q1 2010/Q4 2009)
GDP per Inhabitant $38,492 (2009)
Infl ation 1.6 percent (April 2010/April 2009)
BY KERRY OLSEN
WW
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WWD BEAUTY BIZ 21
serious levels of one-on-one service.To this end, a vendor’s continual challenge is to stimulate
customers in a retail environment. De Stefanis of La Rinascente points to its Milan store’s LAB format—a large selection of natural and biotechnological products—as offering a captivating buying experience. “The consumer is free to touch, read about, smell and try all of our products. They can even eat [if they want to] some of our new organic brands, but they also have the possibility to consult our expert beauty specialists who are on hand for any questions they may have,” she says.
Lauder has also developed a specifi c service retail model called High Touch in Italy. Based on rotating service events and makeup artistry services, it aims to offer a specialized degree of information in outlets that traditionally rely on generic staff in perfumeries, rather than the U.S. model, which offers specifi c brand advisers.
This said, Italian consumers are gradually adapting their in-store service expectations. Sephora provides a greater degree of independence, and, as Mulè highlights, the retail formats that are working well for its products are those with a “free level of service,” where the consumer is independent to make a selection from a wide product assortment.
Attractive retail environments, high levels of service and an innate appreciation for the industry all may play their part in wooing Italians, but it’s skin care that is la dolce vita for the Italian beauty industry. The category continues to fuel growth, increasing 0.4 percent last year compared with 2008 to $2.6 billion, and is mainly dominated by antiaging products. “Our skin care business is growing, due to a high level of service and average ticket. It has been our focus in the last few years and will continue to be,” says De Stefanis, who launched Crème de la Mer in La Rinascente in April.
Given Italians’ love of the beach, sunscreens are playing an increasing role in this sector, experiencing an increase of 3 percent to $445 million last year, according to Unipro.
As the country’s obsession for youthful skin builds, fragrances saw a drop-off in 2009, slipping 1.2 percent to $1.4 billion compared with 2008, according to Euromonitor. Despite the decrease, Euromonitor notes the market remains upbeat about the category’s future, an opinion shared by P&G Prestige Products. “After a slight decline in 2009, the overall fragrance market started this year with a strong performance, increasing by 8 percent in the fi rst quarter, mainly driven by key luxury players,” says Tastad. Given the innate Italian love for beauty, it’s a good bet those numbers will continue to grow.
are blurring as consumers shop everywhere,” she says, an opinion shared by Gian Andrea Positano, statistics manager for Unipro.
“It’s an interesting time,” says Positano. “Consumers have renounced loyalty to a particular channel and overcome the stigma of purchasing a mass market product.”
The ability of the pharmacy chain to adapt to shifting consumer needs will help drive the direction of the market, experts believe. “Pharmacies have dedicated larger spaces to products and offer good levels of service, but there is still lots of room to improve,” says Positano, noting that Sephora, the LVMH Moët Hennessy Louis Vuitton–owned perfumery, which entered the Italian market at the end of 2004 and now has 101 stores, has updated the traditional face of perfumery formats with its accessible, spacious layouts and upbeat, youth-oriented atmosphere.
“The perfumery chains are increasing their share of market versus traditional perfumeries,” says Carolyn Tastad, vice president of P&G Prestige global marketing operations, highlighting a growing momentum of trade concentration behind international and local chain expansion, as traditional retail fl agships continue to invest in ever more glamorous beauty environments.
La Rinascente is one such department store chain to embrace innovative new formats—in particular, podium areas, a central display space that allows selected brands a temporary but high-profi le form of expression, which Simone De Stefanis, director of buying for La Rinascente’s beauty and cosmetics division, credits to boosting sellout by at least 400 percent. The podium area in the store’s Milan fl agship is about 270 square feet, and was recently utilized by Estée Lauder during Milan Design Week to run an initiative, dubbed Design Your Face, offering shoppers the chance to have a makeover and photo shoot. “The area must be eye-catching and unique. We want our consumer to fi nd something that is exclusive and extraordinary every single week. This effort is rewarded not only in terms of sales, but national press hits,” says De Stefanis.
Coin, an Italian chain of department stores, is in the midst of revamping its beauty halls, and recently revealed proposals for its fi rst beauty concept store, dubbed Excelsior, on the site of a former cinema in the heart of Milan’s shopping district on Corso Vittorio Emanuele. The 3,000-square-meter, or 32,292-square-foot, space is set to open in September 2011 and will showcase a mixed assortment of niche and high-end products.
Still, capturing Italy’s increasingly mobile consumer is an ongoing challenge. Forget stereotypes of Italians whiling away the hours sipping cappuccinos. The country’s high-speed train line inaugurated in 2008 and called Frecciarossa (Red Arrow) carries a million passengers every month, according to Trenitalia, the national railway company, and
shortens the distance between Milan and Rome to just less than three hours, with 72 daily services. Connecting Turin to Salerno, northern with southern Italy, the train has attracted an increased number of high-income business commuters and, more importantly for the beauty business, the opportunity for additional revenue. MAC is considering opening a store in the Rome station in the foreseeable future according to Norfarber. Sephora opened a 3,767-square-foot, store in December 1999 inside Rome’s train terminal and plans another in Turin’s Porta Nuova station later this year.
Seasonal temporary stores and special events are additional retail alternatives to capture the wanderlust Italians, many of whom opt to fl ee the city for the beach or the mountains on weekends, depending on the season. Lauder opened a Jo Malone pop-up store last year on Capri during the summer months, and will do so again this year, while MAC has invested in pop-up corners within prominent fashion boutiques such as Gio Moretti in Milan and Eleonora in Rome.
Given the country’s global status as a fashion front-runner, it is no surprise la moda heavily infl uences the beauty industry here. “Italian women are very fashion conscious, not only in what they wear, but how they wear it. They’re aware of the latest must-haves, such as a new Tom Ford lipstick, a dream for our consumers. Italian women relate to fashion icons such as Tom Ford and his presence offers our store a special allure,” says De Stefanis, who cites Dolce & Gabbana as an example of fashion infl uencing beauty and increasing in-store traffi c. La Rinascente exclusively launched the brand’s makeup collection at its Milan fl agship last year.
Deborah Group, a successful cosmetics line manufactured here, has carved out its identity as a brand with strong links to the fashion and design world to great success—the company registered $133.9 million in sales in 2008. “The young consumers are attracted to innovation and very attentive to fashion, but they’re also the ones to demonstrate a lack of brand loyalty,” says Alessia Mulè, marketing manager for Deborah Italy, highlighting that the points of sale that work well for the brand are those that offer promotions alongside exclusive products.
Fashion may turn an Italian’s head, but translating this into a purchase requires service of the highest levels. Walk into most beauty stores and within a moment, the words “mi dica” (“tell me”) will be directed at you. Customers left on their own to browse is not a common sight here, and has ensured Italian shoppers expect
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SKIN CARE IN THE LAND OF LOOKING GOOD
Call it the olive oil effect, but as Italians are living longer and the population is aging, so is the demand for
appropriate skin care, fueling a growth in antiaging skin care and firming, anticellulite body care and a strategic
market opportunity. “Most interesting [in Italy] is the potential of cosmetics sectors having the greatest growth
prospects, such as the men’s or mature skin care markets,” says Filippo de Caterina of L’Oréal Italia. “We are
tackling these markets with huge verve and commitment, as well as bringing great product innovation.”
Last year, the median age of the Italian population was a mature 42.8 years old, according to Euromonitor
International. Between 2004 and 2009, the 15-to-64 sector increased by 2.4 percent to 39,521, while the 65-plus
age group increased by 8.8 percent to 12,111. Euromonitor International underlines the seniors market as fast
growing and a strategic marketing opportunity for leading players. “Antiage is the biggest skin care category on
the market, and reflects the need of an aging population and remains the main derma concern of the consumers,”
says Orna Nofarber of Estée Lauder Italy. —K.O.
BB1006.020(21).WWW.b;23.indd 21 6/8/10 2:15:55 PM
22 WWD BEAUTY BIZ
MEN’S SKIN
CAREBeauty marketers have set their sights on the men’s
market, WITH AN ARRAY OF EVER MORE SOPHISTICATED PRODUCTS. To fi nd out if they
appeal to the average joe, OUR UNDERCOVER REPORTERS set out to rate the shopping experience.
Beauty Incognito
BI
BY LAURENT FOLCHER When it comes to skin care, I’m picky but
hardly high maintenance. I don’t use luxurious
and expensive brands and generally prefer
unscented and hypoallergenic products. Since I
have sensitive skin, I trust dermatologist brands
and usually shop in pharmacies. Basic washing
and shaving comprise the core of my regimen.
Nonetheless, I read and am curious about new
products, and can be drawn to new niche brands.
BHV HOMME 36 RUE DE LA VERRERIE
I’m not a big fan of shopping for skin care in
department stores. I’m wary of them, as they’re usually
crowded and too big, with all of those fl ashy, bright-
looking stands and billboard-type advertising. But
inside, BHV is quiet and looks more like a specialty
shop. Its men’s beauty department (in the BHV Homme
building out back) is modest in size and has a fi nely
edited selection. There’s an old-school barbershop
next to a corner dedicated to shaving that has a great
range of products and accessories. Lured by the
old-fashioned shaving soap and the American classic
Noxzema, I looked through its shelves.
A young sales assistant discreetly proffered advice.
Usually I refuse, since I like to shop by myself and
frequently fi nd salespeople too pushy. But this time,
I explained I was searching for a new type of shaving
product. I never felt forced to buy anything, and after
giving information about my usual treatment, the
salesguy got it right. He suggested deliciously old-
style French natural shaving soap with a chic, discreet
fragrance from Martin de Candre. The soap takes three
months to dry versus the more traditional few weeks.
He also told me other interesting tidbits about old-time
shaving techniques.
All this opened a whole new world for me. The
assistant explained that such a shaving regimen requires
an investment, and that if I ever wanted to make it,
given my hair and skin types, I should purchase a white
badger-hair brush with a size 12-13 handle to properly fi t
in my hand. The information was so precise and refi ned
that I was highly tempted to go for it, so I had the guy
write down all of the details for a later date.
Next stop was the more traditional skin care area.
Apart from brands such as Biotherm, Clarins and Clinique,
it was also chockablock with names new to me. I asked
the salesman for some sort of scrub, and he immediately
directed me to Au Bonheur des Hommes, a new French
brand whose eye-contour product has funky black-and-
white packaging on which I spotted the face of Helmut
Newton with his black-framed glasses. Fun! The salesman
squeezed a dab of tester cream on his hand (which I
preferred to having to try it out myself) and he showed me
how the guarana grains formed a fi ne foam.
The man seemed to know his products well, so I
drew his attention to another brand, called Absolution,
which I found interesting. I asked some questions, but
the guy replied honestly, explaining Absolution had only
recently entered the store so he didn’t know everything
about it. Good. No lying there. I decided on an astringent
mask from Au Bonheur des Hommes with a fi nely
textured, creamy formula containing no parabens,
mineral oil, silicone or coloring—just kaolin, ginseng,
ginger and guarana—which cost about $35.
I might return really soon for those old-school shaving
tools and soap, and may also have to try out Isseo, a
niche skin care brand BHV uses in its spa. Apart from
BHV’s look, which could be slightly more chic, I was
pretty pleased with my shopping experience.
CARREFOUR 1-3 AVENUE DU GENERAL SARRAIL
A trip to Carrefour is a totally different experience from
a foray to BHV. And it’s not something I’m accustomed
to. After some looking, I came upon the hypermarket’s
hidden entrance. The store is on the fringe of Paris,
just next to a ring road. Upon entering, its supermarket
space is vast and seems more suitable to grocery-
shopping families than someone on a quest for a beauty
miracle. I fi nally found the aisle I was looking for—a long
line of shelves bursting with a profusion of mass market
products. I spotted some familiar brands, such as Nivea,
Mennen, Gillette and L’Oréal. Not a lot of space was
devoted to skin care—most of the products on offer were
shaving foam, plus tons of shower gel and deodorants.
I bypassed the cheap-scented body washes and
aftershaves and zeroed in on Sanex products, which
are for sensitive skin. Carrefour is totally self-service, so
I could spend all of the time I wanted checking things
out without anyone looking over my shoulder, which I
like. On the other side of the aisle were more beauty
products, but nothing dedicated to men.
What fi nally drew my eye was the parapharmacy
shop-in-shop, still in the hypermarket, but just outside
the grocery store after passing by its cashiers. Entering,
I fi nally found the brands I generally shop for in
pharmacies. This place was more reasonably sized, but
still totally self-service.
Unsurprisingly, I made no discoveries of new brands,
but found the cream I’d run out of just two days prior
and needed to replace. I mostly frequent much bigger
parapharmacies with a wider selection. However, this
one is handy for someone who needs to double dip and
buy groceries nearby, too.
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WWD BEAUTY BIZ 23
BY MATTHEW W. EVANSI’m a soap-and-water kind of guy with a
grooming regimen comprising Nivea for
Men’s Active 3—a three-in-one shampoo, body
wash and shave cream. But, having covered
the myriad men’s skin care brands that have
cropped up over the past decade, I’ve become
more knowledgeable about these products than
the average man. Now, however, as I begin
to look over my shoulder at my mid-30s, I’ve
decided it’s time to build upon my own skin
care regimen—and check out the shopping
experience just like a regular joe.
MACY’S1300 MARKET STREET
I approached a 20-foot men’s skin care section at the
back of the three-story store’s sparsely shopped main
beauty fl oor, located in the Wanamaker building that
occupies the block adjacent to City Hall. I was the only
customer at the counter, browsing products from The
Art of Shaving, Zirh, Clinique Skin Supplies for Men,
Shiseido Men and Clarins Men, some of which were in
and atop the case line.
An associate I had passed—who, thankfully, didn’t
spritz me with the fragrance he was holding but did say
hello—asked me after a few moments if I needed any
help. I told him I was looking to start a skin care regimen.
He asked me what brands I like and I mentioned
Zirh, prompting him to pick up posthaste Zirh’s Starter
Kit ($58). Exuberantly noting that he uses the kit’s face
wash, he added that it also includes a shave gel, a
vitamin serum and a face moisturizer—but not a toner,
which he suggested as an add-on.
He was exceptionally knowledgeable about Zirh,
but, seeing me stroke my whiskers, moved along to
The Art of Shaving. “It’s really more for shaving only,”
he told me. He pointed out the $150 lighted, vibrating
Gillette-The Art of Shaving razor, but explained that it
didn’t come with the brush and stand on which it was
merchandised behind the glass.
The salesman was extremely accommodating,
stopping short of slathering creams on my hand and
pressing a hard sell. Interpreting me as a rookie, he
didn’t broach the subject of Clinique Skin Supplies for
Men, Shiseido Men or Clarins Men.
I asked about fragrances, and as he set off for some
scents, a Macy’s skin care specialist behind the counter
told me how Zirh “evens out [his] skin.”
The fi rst associate returned with four Bulgari scents.
“It’s an Italian brand, so it’s very different,” he told me,
lining up the fragrances, along with a bottle of Zirh Eau
de Toilette, and spraying blotter cards one by one. He
led me through two rounds of sniffi ng, to see how each
scent “changed.”
When it came to aroma, he compared Bulgari Aqua
with red wine and Bulgari Aqua Marine with white. He
noted that he wears Bulgari fragrance, even though
Dolce & Gabbana’s Light Blue is “so popular.”
After the consultation, which ended with a reiteration
that the Zirh kit was “fabulous,” both associates wrote
their names on a Zirh Eau de Toilette blotter card, which
I departed with in hand.
WALGREENS901 MARKET STREET
A subsequent stroll down a bustling Market Street
at 1:30 p.m. that warm Saturday took me from
Macy’s, past CVS and near a couple of Rite Aids, to a
prominently located Walgreens on the corner of Ninth
and Market Streets in The Gallery at Market East.
The one-story store, along with Kmart and Burlington
Coat Factory, anchors the 230-store, four-story shopping
center, which runs from Eighth to 12th Streets and is
situated between the city’s Convention Center and the
old Strawbridge & Clothier building.
The drugstore was not at the top of its game when
it came to men’s skin care. Men’s-specifi c skin care
products occupied about 4 feet of space on a shelf and
a half amid a host of razors and shaving cream. For
several minutes, I perused the shelf, which was partially
obstructed by cardboard boxes on and around a pushcart,
and noticed that Nivea for Men and Neutrogena Men were
the most prominent brands, while, in an unfortunate turn,
Aveeno’s men’s products were out of stock.
When I eventually told an associate standing idle at
a small checkout counter nearby that I was looking for
a men’s skin care regimen, she pointed in the opposite
direction, to the main skin care aisle, saying, “Skin care
is over there.”
The space, teeming with customers, stocked all the
popular brands: Olay, Neutrogena, Aveeno, Nivea, Jergens,
St. Ives, Vaseline, Roc, Eucerin and Clean & Clear, but I
didn’t see any products intended specifi cally for men.
I approached her again. “What would you
recommend for men’s skin care?” I asked.
She replied, “Like lotions?”
“Like an aftershave moisturizer,” I said.
She went to the main aisle, and upon her return,
handed me the 24.5-oz. Vaseline Men Body & Face
Lotion ($6.49), noting that there was also a smaller,
extra-strength version.
Thanking her, I went back to the main skin care
aisle and at that time noticed the two Vaseline men’s
products (including Vaseline Men Extra Strength Body
& Face Lotion, 10 oz. for $3.79) facing out atop the busy
regular skin care section.
Several minutes later, I asked her what fragrances
she carried, and she gestured to the glass display case
behind her counter, which featured brands like Calvin
Klein, Jennifer Lopez, Nautica and Drakkar Noir. She
asked me what I liked and I told her Obsession, so she
pointed it out. She went on to note that Eternity was
marked down $10 to $29.99.
On my way out, I exchanged thank-yous with her and
an assistant manager, who had arrived on scene to change
the seemingly beleaguered associate’s cash drawer.
BY BOB MOSERI dealt with the pits of raging hormonal acne
throughout high school, and for a while knew
the ins and outs of nearly every prescription
cream and over-the-counter cleanser. But the
breakouts stopped just days after graduation,
and now, eight years later, I’ve reverted
back to being a carefree, soap-and-washcloth
type of guy. Living in one of the world’s
biggest metropolises—São Paulo—has a lot
of upsides, but heavy air pollution and the
toll it takes on your skin is a definite downer.
I’ve tried to find a beauty store that can make
me feel comfortable asking questions about
advanced skin care, but truth be told, I find
it a bit awkward after years of not giving it
much thought.
O BOTICÁRIO AV. ENG. HEITOR A. E. GARCIA 629, JARDIM BONFIGLIOLI
I thought I couldn’t go wrong starting off at Brazil’s
most popular, respected beauty store chain. Boy, was
I wrong.
Situated on the corner of a busy residential
neighborhood, this small shop, the size of your
average bedroom, has always appeared fairly full and
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MACY’S
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24 WWD BEAUTY BIZ
Beauty Incognito
busy. On this day, my first inside, two sales associates
sat on hand.
Literally, they sat on their hands as I mosied about,
deep in conversation regarding something very funny,
personal and having nothing to do with the store or
its customers. I browsed what was a small section of
men’s skin care products, all the while without help.
Heavily stocked products like O Boticário’s Hydrating
Multi-Action Facial Protector ($34) and Anti-Fatigue
Facial Serum ($25) were too complex for me to
understand on my own, or justify the cost.
Glancing over my shoulder toward the girls to offer
one last chance, a fellow customer had their attention
at checkout. Well, one attended to her credit card,
while the other sat and watched, waiting to get back
to talking on company time. I walked out, intent on
finding another shop interested in my business.
DROGASILSHOPPING ELDORADO
Left a bit overwhelmed by the large and pricy
selection at O Boticário, I sought out the nearest
Drogasil, a major pharmacy chain in southeastern
Brazil. Shopping Eldorado is one of the nicer malls in
São Paulo, but I was still surprised to see this Drogasil
feature an entire wall of skin care products, with a
staff member stationed near a mirror, a sink and a
medical-style chair for product testing on customers.
A welcome upgrade from your average, bare-bones
pharmacy in Brazil.
The awe quickly wore off when I saw the size and
breadth of that product wall, once again far too many
choices to know where to start. The young female
attendant approached my wife and I, and listened
intently as I explained my history of somewhat oily
skin. For some reason, she keyed in on the words
“teenage acne,” even though it was mentioned
in passing, and steered me quickly toward Vichy
Homme’s Normactiv Cg Purifying Hydrating Fluid. At
$38.50, this was way out of the price range I wanted
to spend on my return to the world of facial care, and
a careful reading of the ingredients found this was too
strong for my skin.
Reiterating that I had a very normal skin type, I
asked for other options and she delved into Avène’s
line, pushing the soapless gel cleanser for $43.50.
I didn’t want to harp on the fact that she was
drifting out of my price range, but through follow-up
questions, we quickly concluded that Avène would
likely be too drying, as well.
Now on the same page, the attendant passed
me her old favorite, Neutrogena’s Deep Clean
Energizing Exfoliant Gel, costing about $11. I’d found
my answer—a widely trusted product for normal skin
types at a reasonable price. I thanked the attendant,
sure she felt let down after pushing pricier brands, but
happy that, in the end, she met me halfway.
BY BRETT COLEA visitor to South Korea’s capital, Seoul, is
immediately struck by its stylish young set and
the city’s trendy young men, whose clothes,
hair and attitude offer a stark contrast to their
older peers. Part of the style revolution among
the younger set in Korea is its use of grooming
products. I’m a dedicated user, too, trying to
hold back the sands of time with a bathroom
full of potions and lotions, applying them in the
morning and at night to my 45-year-old face.
MYEONG-DONG
Myeong-dong was a popular spot in the Seventies
during the initial boom of the Korean economy, went
into a decline thereafter, but has since been revived
with pedestrian-only streets, numerous restaurants and
scores of clothing stores and beauty chains. One of
those chains is Missha, and its success in the Nineties
spawned numerous imitators. Missha is endorsed by
Korean actor and heartthrob Lee Byun-hun. Not at all
intimidated by a swarthy 6-foot foreigner, a salesperson
immediately directed me to the men’s section of the
store, which held just a smidgen of the women’s
products available. Thinking I was after aftershave, she
showed me Missha’s Urban Soul.
But I was after the store’s facial scrubs and shaving
creams, which came in one pack. I was shown the
Urban Soul Vitalizing Foaming Cleanser, a cleanser
and shaving cream all in one. But a quick dab of the
product gave me the impression that it was too oily, and
it reeked, when I smelled it, of a cheap aftershave. Not
something the wife would appreciate.
I sought refuge in Innisfree, which has made a name
by selling products made with green tea from South
Korea’s Jeju island, and sells a shaving cream made
of aloe and rosemary. I liked the smell, but it seemed
to have the consistency of the foams one buys in
supermarkets, places I have long avoided for skin care.
Innisfree’s prices are comparable with Missha and
MAC
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its customers are in their 20s and 30s. But none of the
salespeople offered to let me test any of the products,
which I found odd, as touch and smell are integral to the
buying experience. Moreover, none of the sales staff
could explain what the different products would do for
me. I hoped for a better experience across the road at
Korea’s biggest department store, Lotte.
LOTTE DEPARTMENT STORE
At Lotte, I stopped by the Lab Series counter. I have
an extensive range of Lab Series products at home,
but instead of a smiling and eager sales associate, I
got a tentative young woman who had to be prompted
to tell me about the range of products. She offered
no explanation of the items, nor did she ask me what
my daily skin care routine was. I was not offered any
products to test, either.
I hoped for better service at Kiehl’s, where the
white-coated staff were mildly more helpful and
proffered a moisturizer sample pack. But they failed to
suggest or ask questions about what products I may be
using or demonstrate the effectiveness of the product.
It was the same story at Biotherm and Clinique, whose
staffs during the lunch hour were perhaps thinking of
more basic needs than grooming. Even after taking off
my sun hat to reveal my bald head, no one suggested I
buy sunblock for the summer. It was as though they felt
the products sold themselves.
With products costing almost twice the price of the
chains at Myeong-dong, I could understand why the
BI
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SEOUL,SOUTH KOREA
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counters were relatively deserted compared with the
Myeong-dong stores. Before leaving Lotte, I wandered
around the women’s cosmetics counters. White-collar
women on their lunch breaks were being given the full-
court press by the sales staff. Sometimes being a man
has its disadvantages.
NEW YORK,USA
BY MATTHEW LYNCHI recently tossed my three-bladed Gillette for the relative simplicity of an old-school safety razor. The traditionalists insist that the single-blade contraption offers a closer shave. Truthfully, I was just tired of pulling something that looked like it belonged in a Hasbro catalogue across my face every morning. The ever-rising cost of a fi ve pack of replacement cartridges didn’t help, either. New hardware in hand, I went looking for a fresh skin care routine to match.
MACY’S151 WEST 34TH STREET
As this whole endeavor was something of a throwback,
I made Macy’s my fi rst stop. The very idea of a skin care
regimen didn’t exactly mesh with the meat-and-potatoes
vibe of the new razor, so the 34th Street fl agship, with its
wooden escalators and hordes of fanny-packed tourists,
was as upmarket as I planned on taking my search.
At the Lab Series counter, I was—true to the brand’s
name—greeted by a saleswoman in a white lab coat.
She quickly assessed my face and told me she herself
swore by the company’s Multi-Action Face Wash. Due
to my sensitive skin, she said I’d want to opt for the Lab
Series Triple-Benefi t Post-Shave Remedy and Maximum
Comfort Shave Cream. The latter contains the numbing
agent lidocaine, which defi nitely piqued some strange
corners of my curiosity. But, with the company’s sample
cabinet bare, I moved on.
At the Zirh counter, an even friendlier associate took
the time to appraise the grain of my beard and gave
me a brief tutorial on how I should be wielding my new
blade. She demonstrated the brand’s Clean face wash
and a nonfoaming shave gel on my wrist. After years of
lather, I couldn’t envision using a shaving cream that
didn’t foam, but I liked the feel of Zirh’s pre-shave oil
treatment, Prepare. The starter kit for the whole system
was still a bit pricy, so, samples in hand, I headed out.
CVS150 EAST 42ND STREET
Next stop was aisle seven at a large CVS outpost near
Grand Central Terminal, where I was on my own to discern
the difference between the men’s’ lines on the shelves.
That was fi ne by me. Though both saleswomen at Macy’s
had been amicable, and I appreciated that neither had
put too hard of a sell on, neither had been particularly
convincing on the merits of their respective brands.
Since it didn’t appear the company line especially
moved me, I fi gured I might as well read it for myself
from here on out. The pharmacy systems seemed to
mostly be made up of four components: a wash, a
shave cream, an aftershave and a lotion. Nivea offers
each in three varieties based on skin type. I settled
on its “sensitive” iteration because the box said it was
“for men with sensitive skin who want immediate relief
against irritation,” which seemed accurate enough,
and because it had the cleanest package design of the
lot. The only problem was that its lotion’s sunscreen
quotient is a paltry SPF 4. That’s too low for my
complexion and, I’d be willing to bet, those of scores of
other people who self-identify as having sensitive skin. I
opted instead to go only with its shaving gel, face wash
and post-shave balm for just under $20 all told. It was a
little more expensive than my usual shaving cream and
face wash budget, but wasn’t so exorbitant that I’d feel
bad scrapping the program if I didn’t like it. On that note,
I also picked up a bar of Williams Mug Shaving Soap for
$1.69 as I left. It was a cost-to-risk ratio for the times.
MACY’S
CVS
BB1006.022-25.BI.a;17.indd Sec1:23 6/8/10 7:02:27 PM
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26 WWD BEAUTY BIZ
An international who’s who of the beauty industry gathered at the Breakers Hotel in Palm Beach, Fla., for the WWD Beauty CEO Summit. Fabrizio Freda, chief executive offi cer of the Estée Lauder Cos., kicked off the 36-hour, jam-packed conference with a speech that hammered home the importance of innovation. “History shows that the fi rst 24 months of a recovery are when 80 percent of the most successful new ideas take root,” Freda told attendees. The next morning, P&G’s Ed Shirley followed with a rousing call to action, which included central themes such as refocusing the fragrance business, engaging consumers and growing the men’s grooming category. Shirley emphasized positive competition and collective industry growth. “This is where we’re going to focus our energy,” he said, “and I invite you to think about how you might play like this in the future as well.” Mary J. Blige, whose My Life scent launches in late July on HSN, represented the superstar contingent, joining Carol’s Daughter chief investor Steve Stoute and HSN Inc. ceo Mindy Grossman for a lively panel discussion about celebrity scents and new distribution models. Macy’s Muriel Gonzalez and Wal-Mart’s Carmen Bauza each talked about their evolving
beauty formats, while entrepreneurs Marcia Kilgore and Ido Leffl er energized attendees with presentations on emerging brands. It wasn’t all work
and no play, however. Poolside pedicures had attendees,
many of whom came from as far afi eld as Australia, Hong Kong and Brazil, tapping their toes in delight.
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OS B
Y HA
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BB1006.026.FLASHPOINT.B;23.indd 26 6/10/10 3:53:36 PM
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28 WWD BEAUTY BIZ
AS ONE OF THE FASTEST-GROWING MEN’S GROOMING MARKETS IN THE WORLD, EUROPE REPRESENTS NOT JUST A RED-HOT SALES OPPORTUNITY, BUT A TEMPLATE FOR BOOSTING GROWTH IN NORTH AMERICA, AS WELL.BY JENNIFER WEIL
THE BEAU IDEAL
The men’s grooming and fragrance market is fl exing its muscles in Europe, and a growing number of brands are taking interest.
Over the next few months alone, major players such as Chanel, Guerlain, Dolce & Gabbana, Davidoff and Marc Jacobs are introducing new masculine scents. Nuxe is among the brands recently launching treatment lines for men, while others like Gillette are bulking up such skin care offerings.
Gone are the days when a guy furtively applied his girlfriend’s face cream behind closed doors. Today, European men are bolder, venturing in greater number to shop for their own brands of beauty—either in-store or online. They’re not just snapping up the basics, either, but buying and using more sophisticated treatment offers.
“We’re reaching what we’d call a tipping point,” says Jean-Jacques Lebel, executive vice president and managing director of L’Oréal’s Consumer Products division. “Things are really happening in a big way. There’s a point where there is a critical mass of men and word of mouth, and it’s becoming absolutely acceptable for men to use men’s products. It is now.”
There’s a tradition of men in Europe (especially “Latin” Europe, such as France, Italy and Spain) wearing fragrance and, in some markets, like the U.K., ingrained grooming rituals.
“European men have a long-established reputation for appearance consciousness,” says Mark Whalley, Datamonitor consumer analyst. “Although this may be driven partially by cliché…evidence suggests that it has some basis in reality. Interestingly, however, at the same time, there is a certain degree of self-satisfaction and carefree-ness about many European males’ attitudes and behaviors over their appearance. These seeming contradictions suggest that there remains a tension between feminized and traditional male values over appearance, but also that attitude-behavior gaps exist that suggest possible openings for industry players to further exploit men’s appearance-management concerns.”
The men’s grooming category in Europe is already sizeable. Euromonitor reports it pulled in $8.47 billion in retail sales last year in Western Europe, up 1.9 percent versus 2008. Lebel estimates the business has developed by SC
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50 percent in fi ve years.“It’s probably the fastest growing of most markets where
we operate,” says Lebel.These days, it is impossible to make vast generalizations
about men’s beauty buying habits across Europe. “Cultural barriers in certain European countries are lower, leading to a wider spread and more open [acceptance] of appearance-conscious attitudes and behaviors among men,” says Datamonitor’s Whalley.
In a consumer survey the tracking fi rm conducted in Europe in April and May 2009, men were asked about the importance of looking their best in day-to-day life. Responses varied from country to country, with the percentage of guys answering “important” or “very important” coming in at 35 percent for Sweden, 39 percent for France, 40 percent for the U.K. and—topping the list—63 percent for Russia. The total global average was 53 percent for men versus 70 percent for women who were posed the same query.
Beiersdorf ’s Nivea for Men is another skin care brand notching up strong gains in Europe.
“Face care is growing by more than 10 percent,” says Inken Hollmann-Peters, international vice president for brand marketing at Beiersdorf, adding the segment is luring new (including older) consumers.
Overall, the men’s grooming category’s product development largely echoes the evolution of the women’s treatment market—which became increasingly segmented—years ago. Executives note that, as of two to fi ve years ago, there have been fewer barriers to entry.
“In the past, some men probably thought if they use a face cream, they wouldn’t come across as very masculine,” says Hollmann-Peters, who explains that today, men equate looking good with being more successful in life. “So they’re daring even more to take care of themselves.”
She adds Beiersdorf fi nds consumers in the U.S. (where the company has not yet entered men’s categories such as hair care or deodorant) are not as sophisticated, in terms of their usage of care products, as some of their Western European counterparts.
“Whereas in France or the U.K. or Germany, antiage is much stronger,” says Hollmann-Peters.
Still, among marketers’ greatest hurdles is getting European men to be even more adventuresome in the types of products they use. There have been some breakthroughs of late, with certain relatively sophisticated offerings being strong sellers in Europe. L’Oréal Paris’ Men Expert Eye Roll-On, billed as a cooling product to fi ght wrinkles and under-eye bags, for instance, “is a great success,” says Lebel. “We’re concentrating on skin care—[value-added] skin care—because we think that’s where we can offer an edge.”
There’s also a burgeoning men’s deodorant business in Europe. Men Expert is introducing a short line of roll-ons and sprays with a 48-hour antiperspirant claim in parts of Western Europe.
“It’s extremely promising,” says Lebel.Meanwhile, this spring, Beiersdorf launched its high-
tech Silver Protect line for men, whose products contain an antibacterial formula with silver molecules, to “excellent” results, says Hollmann-Peters.
Companies are focusing on aftershaves, as well. L’Oréal has a few products in the category, which it’s leveraging as an extension of its skin care strength. Other personal care categories, such as shower products, are evolving, too. Beiersdorf last year introduced a three-in-one item, called Active 3, which the company claims to be the fi rst in the segment with a triple benefi t, including shave prep to facilitate body grooming.
While mass skin care continues its growth trajectory,
the prestige treatment market has proven more challenging in Europe.
Philippe Benacin, chairman and chief executive offi cer of Inter Parfums SA, estimates the selective skin care market remains tiny and has been fl at for a few years now.
Inter Parfums purchased high-end men’s skin care brand Nickel in 2004. At the time, the prestige grooming segment for males was expected to grow at plus-15 or 20 percent annually, says Benacin. “We thought it would become something consistent, like 10 percent or 20 percent of the whole size of the skin care market. But actually, it has
maybe stayed at 1 percent to 3 percent,” he explains.Part of the sector’s steep competition is due to the lure
of lower price points of skin care for men in channels such as pharmacies and grocery stores.
“Men probably are not ready to spend as much for skin care as women are,” says Benacin. “On top of it, you have many newcomers, which makes it complicated to maintain market share at 7 or 8 or 10 [percent].”
Cultural differences account for the anemic sales, too. “Unlike in Asia—a major market where skin care is completely embedded in the male routine of beauty—Europe stops at shaving,” says Véronique Gabai-Pinksy, global brand president for Aramis and Designer Fragrances, BeautyBank and IdeaBank at the Estée Lauder Cos. Inc. “The challenge for us is to start educating the male consumer on how you can enhance the shaving experience and therefore compliment it with an element of treatment.”
In Europe, Lauder’s Lab Series men’s skin care brand rings up most of its sales in the shaving category, while treatment is a far second. (That differs from the U.S., where the brand’s two most important categories are shaving and treatment. “Cleansing is a little less embedded in the culture or the habits,” Gabai-Pinsky says. “Body or hair care is not
WWD BEAUTY BIZ 29
• MEN‘S SPECIAL REPORT •
“We’re reaching a tipping point,”
says L’Oréal’s Jean-Jacques
Lebel, who estimates the
business has grown 50 percent
in five years. “Things are really
happening in a big way.”
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something that men necessarily buy in prestige.”)The good news from Europe is that Lab Series is
clocking double-digit gains. A recent hit is Lab Series’ Max LS antiaging product. In May in Spain’s El Corte Inglés, for instance, it was the department store’s number-one stockkeeping unit in men’s skin care. Gabai-Pinsky chalks its success up to the product’s high-performance, one-product-does-all nature and single message.
She says Lauder is working on developing a product with benefi ts embedded in the shaving experience. Gabai-Pinsky notes that, when there’s a product giving a variety of benefi ts and immediate results, “the European [male] consumer starts acting a little bit like the Asian consumer, and goes for it.”
That being said, there can be vast differences in shopping patterns from one European country—or even zone—to the next.
“It’s much easier for me to develop my grooming and skin care business in continental Europe than it is in Russia, for example,” says Gabai-Pinsky. “There’s very little knowledge, understanding or desire for this type of product in emerging Europe.”
The men’s fragrance front appears somewhat brighter, with marketers reporting ample room for gains. Last year, its estimated size in Europe was $5.1 billion (with $3.06 billion generated from premium scents, the remainder from mass)—just less than half the estimated $10.1 billion for the European women’s scent business, according to Datamonitor. The tracking fi rm expects the male segment to outpace the female category, with average yearly gains of 2.6 percent and 2 percent, respectively, through 2014.
The European men’s prestige fragrance market has been fl at on average over the last fi ve years, estimates Benacin, who adds the European prestige women’s fragrance market has been fl at, as well.
“The market environment continues to be tough around the world and in Europe,” says Patrice Louvet, president of
the P&G Global Prestige Products Division. Executives note increased competition for prestige
fragrances from other categories, such as technology, with the advent of iPhones, for instance.
“The share of voice is very expensive—much more than in the past,” says Benacin. “So it’s more complicated to be seen.”
Meanwhile, strong trends in male prestige fragrance shopping keep bubbling up.
“Consumers gravitate to brands they know and trust, but well-rounded new propositions still generate signifi cant momentum,” says Louvet. He highlights the continued success of P&G’s classic lines, such as Hugo Boss Bottled, Hugo Man and Dolce & Gabbana Light Blue Pour Homme. And when it comes to introductions over the past year and a half, Hugo Element, D&G’s The One for Men, Gucci by Gucci Pour Homme and Lacoste Challenge boast top 10 to top 20 positions in most markets.
Some underline the importance of fragrance brands returning to their historic roots. Last fall, Aramis launched the Aramis Gentleman’s Collection, which culls the brand’s past scents. It has helped Aramis—whose overall business has grown by double digits in Europe this year—to remain in Europe’s top 20. In the U.K., it ranks in the top fi ve and in Germany’s top 15, according to Gabai-Pinsky.
A major growth driver for the prestige fragrance category will be the BRIC markets, or Brazil, Russia, India and China, as its consumers become more sophisticated beauty product users. “We also believe that there is signifi cant potential to further increase the total size
of fragrance categories in the more developed markets by completing offerings across price tiers and product categories and forms,” says Louvet.
Executives point to a stronger emphasis on the men’s prestige fragrance category, with a surge in the number of groups, plus the amount of money and creativity (in terms of product development and marketing), fl ooding the men’s segment in Europe.
“[Companies] are investing as much as they used to invest in the women’s sector for the launches,” says Eric Henry, Beauté Prestige International’s chief operating offi cer, speaking of both fragrance and grooming. “Now, if you look at media, for instance, they are spending as much as they did for women’s launches.”
In Europe, the French, German, U.K., Spanish and Italian markets generate almost 70 percent of all men’s sales, estimates Henry.
Whether skin care or fragrance, successfully engaging men involves a different formula than for women. Simplicity, executives unanimously agree, is key.
“You shouldn’t oversophisticate the market,” says Lebel. “You have to offer technology. You have to offer [products] which are high performance. Things have to remain simple, which is a challenge in itself. Making something very technological, very new and different, and yet simple—it’s probably the biggest challenge.”
“What we’ve learned in Europe about simplifi cation is something that we will effectively look into for the U.S.,” adds Gabai-Pinsky.
30 WWD BEAUTY BIZ
Executives note increased competition for prestige fragrances from
other categories, such as technology. “The share of voice is very
expensive—much more so than in the past,” says Philippe Benacin.
EXPRESS
HONOR
An energizing medley of
peppermint, green ivy,
fresh water and vanilla,
Express’ second men’s
scent was inspired by
its denim collection and
designed to convey
confidence. $44.90 (Express)
ADIDAS
MOVES PULSE HIM
Launching alongside
a female counterpart,
Moves Pulse includes
notes of yuzu leaves,
water mint, coriander,
violet leaves and sun-
drenched woods.
$26 (mass retailers)
CAROLINA
HERRERA
212 MEN ICE
Encapsulated in the frozen
casing is a cylindrical black
fl acon, housing a fusion
of black pepper, licorice,
violet and noble woods,
designed to evoke the
memory and excitement
of chance encounters.
$59 (Macy’s, Sephora)
ANTONIO
BANDERAS
THE SECRET
Within the padlocked
fl acon is a juice inspired
by Antonio Banderas’
masculinity and sensuality.
The spicy, citrus-infused
scent includes notes of
mint, white grapefruit, apple
liquor accord, cinnamon
and leather. $31.50 (CVS, Duane Reade)
COMBINING DARING BOTTLE
DESIGNS WITH SCENTS
THAT STRIKE A CLASSIC
NOTE, THE NEWEST MEN’S
FRAGRANCES ACHIEVE AN
APPEALINGLY MASCULINE
BALANCE. BY BELISA SILVA
OPPOSITES ATTRACT
PROD
UCT
PHOT
OS B
Y GE
ORGE
CHI
NSEE
AND
ROB
ERT
MIT
RA
BB1006.028-31.MAN.a;22.indd 30 6/10/10 1:50:04 PM
Other musts is that a product works quickly, is easy to use and involves simple gestures.
“It needs to be more performance oriented, more result oriented, very simple, right to the point, explaining what the problem is and giving right away the solution and high performance,” she continues.
The language used to talk to men about skin care benefi ts through advertising needs to meet their comfort zones, as well.
“Men want to know who you are, what you promise and why you are right for them,” says Louvet. “Differences only come out in the execution, where men prefer more straightforward and direct communication approaches. In the fragrance category, this demands particular skill, as we are not only talking to him, but at the same time, also to her—she buys almost half of all male fragrances, either as gifts or together with him.”
Nivea executives carefully chose the descriptor for the Revitalizing line, relaunched at the end of 2009. Had it been a product for women, it probably would have been marketed as an “antiwrinkle cream,” says Hollmann-Peters. “For men, it’s more about the powerful revitalizing benefi t and it’s also linked to the Q-10 ingredient.
“Men want to look ‘healthy’ and ‘energized,’” she continues. Along the same lines, while some believe there could be a growing market for men’s makeup (“everybody wants to look good,” says BPI’s Henry), the word “makeup” is wrong for men.
“No man wants to be ‘made up,’” says Gabai-Pinsky. “Men want to be ‘enhanced’ and ‘handsome,’ so we have to reinvent the terminology.”
BPI’s Jean Paul Gaultier has found a niche following for its men’s color cosmetics, and other brands—such as Givenchy and Yves Saint Laurent—have introduced items geared toward guys.
For advertising, executives say humor is important. (Think Axe/Lynx’s zany spots.) And when it comes to
choosing spokespeople for grooming or fragrance products, it’s key to make men feel secure.
“It’s not just girls who are insecure about the way they look—we need to be sensitive to the potential impact our advertising can have on the way guys feel about themselves,” says P&G’s Louvet. “For example, attractive male models and celebrities with unattainable physiques make some men feel insecure and put them off buying the product. Depending on the segment you’re talking to, it could be that you’re much better to have a more ‘down-to-earth’ face of the brand, someone guys can relate to more easily. For other segments with different needs, they want to see the rock star or movie star they identify themselves with.”
The retail scene is still evolving in Europe, too. As elsewhere, men spend less time than women in-store and like to have a dedicated and one-stop shopping area with a clear assortment.
“What we need to defi ne better in Europe is the point of sale experience,” says Gabai-Pinsky. “Europe is the most diffi cult market when it comes to effectively creating that destination for men. We have to fi nd a way to carve some space on walls or on gondolas where men can be comfortable shopping.”
“You still fi nd a lot of shelves where you have the male products in the category’s section, so you fi nd the male deodorant in the overall deodorant section, and so on,” says Hollmann-Peters. “We know from research that men like to have one-stop shopping.”
One way Lauder has catered to some men’s love of technology—and general dislike of having to speak too much with female sales associates—is by devising a small, handheld skin analyzer that immediately gives skin diagnostics.
“Because men are not necessarily comfortable shopping in the same environment as women and do not ask a lot of questions, the digital platform becomes absolutely essential,” says Gabai-Pinsky.
Men spend an average of 22 hours a week online and 60 percent of 15- to 50-year-old guys are members of a social network, according to Louvet. So the Internet is an especially effective realm to nab guys.
“Everywhere [Lab Series] is in e-commerce it is its biggest door, and it’s something we’re going to develop moving forward,” says Gabai-Pinsky, adding that’s not to say Lauder won’t pursue its brick-and-mortar strategy, as well. “We know that men go online to get information before they make the step of buying a product.”
BPI is selling online “huge quantities” of skin care for men, especially through Douglas’ Web site. Beiersdorf, meantime, has dedicated part of its Nivea Web site to men’s care, including product descriptions, and it can also touch upon topics such as cars.
Across the board, executives see a bright future in Europe for the men’s fragrance and grooming categories, especially since the younger men coming into play are much less afraid of using products than their older counterparts. Concurrently, the aging population (which fi ghting the onslaught of time) holds great opportunity for skin care.
“It’s a market that’s here to stay and [will] continue to grow,” says Lebel.
WWD BEAUTY BIZ 31
“You shouldn’t oversophisticate
the market,” says Lebel.…“Making
something very technological,
very new and different, and yet
simple—it’s probably the
biggest challenge.”
RALPH LAUREN THE BIG PONY FRAG-RANCE COLLECTION
Each of the four fragrances
represents a facet of a
young man’s passion. One
is a “sporty” citrus aromatic;
Two, a “seductive”
oriental fougère; Three,
an “adventurous” fougère
woody, and Four, a “stylish”
woody, fruity scent. $50 each (Bloomingdale’s)
CHANEL
BLEU DE CHANEL
With a heart of cedar,
jasmine and vetiver, this
woody aromatic scent,
blended by Chanel perfumer
Jacques Polge, also contains
notes of peppermint, ginger
and frankincense. Martin
Scorsese directed the
advertising short, which
stars French actor Gaspard
Ulliel. $79 (Chanel counters)
ACQUA DI
PARMA
COLONIA ESSENZA
An homage to the original
Colonia fragrance, worn
by Cary Grant, Essenza
includes notes of mandarin,
clove and lily of the valley.
The scent was formulated
with 100 percent natural
essences, for a longer-
lasting application. $125 (Saks, Sephora)
DOLCE &
GABBANA
THE ONE GENTLEMAN
Following the brand’s
original, The One for Men,
this version is designed
for a contemporary
gentleman who is both
masculine and chivalrous.
The fresh oriental scent
combines notes of pepper,
fennel, lavender, vanilla
and patchouli. $57 (Macy’s)
MARC
JACOBS
BANG
With black, pink and white
peppercorns; woods;
white moss; vetiver, and
resins, Bang’s scent is as
energetic as its moniker.
The flacon is made of
heavyweight-faced glass
and silver metallic plaques
for a feeling of electricity.
$75 (Bloomingdale’s)
ARAMIS
IMPECCABLE
This limited edition woody
fragrance contains
notes of Moroccan
cedarwood, patchouli
and leatherwood, citrus
zest and juniper berry. $55 (Bloomingdale’s, Dillard’s, Lord & Taylor, Macy’s)
• MEN‘S SPECIAL REPORT •
PROD
UCT
PHOT
OS B
Y GE
ORGE
CHI
NSEE
AND
ROB
ERT
MIT
RA
BB1006.028-31.MAN.a;22.indd 31 6/10/10 1:50:12 PM
ndrea Jung’s piano teacher may not be pleased with her performance—he dropped her as a student after she continually had to reschedule their lessons—but Avon’s board most certainly is.
A decade into her tenure as chief executive offi cer of the $10.4 billion company, Jung has evolved the nearly 125-year-old fi rm from its “Ding-dong, Avon calling” heritage into a technology-enabled direct seller of mass and premium brands that empowers women through earnings opportunities.
For his part, the piano teacher told his delinquent pupil, “I’ll pick you up when you retire,” Jung recalls, during a wide-ranging interview in her spacious corner offi ce 27 fl oors above Sixth Avenue in New York.
But though she laughingly recounts the anecdote, the executive shows no signs of slowing down—or retiring—anytime soon.
Geralyn Breig, Avon’s senior vice president and president of North America, recalls, “Last year, when faced with the economic crisis, the company had to make a decision: Do we want to aggressively move forward and try to seize market share or do we hunker down and get more conservative in the moment? Andrea made the decision that we were going to go for it.…She met with the executive committee, set a vision and we aligned on it. This message of ‘yes we can’ started with Andrea and then cascaded around the world.”
“Andrea would see her natural leadership style as more the visionary, future-thinking, strategic leader focused on the essence of the brand and what we offer to the representatives,” says John Higson, senior vice president of global direct selling and business model innovation.
But when tough times and the global recession emerged, he says, “we watched her go from the big picture down into almost hourly execution.…At that point, she really dug down into the details. She was in weekly steering meetings on the turnaround agenda, and really got into the detail of the tactics and the execution of the daily turnaround in each of the markets, which was a very different Andrea [than] the one who we were used to working with.”
Jung’s strategy was threefold. At the beginning of last year, as the economic crisis worsened, Avon emphasized lower-price items in its portfolio, moving these “smart value” products to the front of its brochures. It also launched the most massive representative recruitment campaign in its history, which included a Super Bowl TV ad. Finally, it refocused its fragrance strategy, striking more celebrity and designer scent deals to bolster its premium-price tier. All the while, Avon maintained its “constant turnaround mentality,” a phrase that has been deeply ingrained in the company’s corporate vernacular since it implemented a multiyear restructuring effort in 2005.
The recession “playbook”—in Jung speak—seems to have worked. In Avon’s most recent quarter ended March
31, revenues rose 13.9 percent to $2.49 billion from $2.19 billion. Beauty sales gained 14 percent to $1.78 billion, compared with the year-ago quarter, on active representative growth of 6 percent, which includes gains in all regions but China.
Avon expects to achieve at least midsingle-digit annual revenue growth this year, excluding the impact of foreign currency rates.
“We’ve had a lot to do in terms of reshaping the business and the fi nancials, but the purpose of empowering
34 WWD BEAUTY BIZ34 WWD BEAUTY BIZ
AS SHE MARKS HER 10TH YEAR AS CHIEF EXECUTIVE OFFICER OF AVON, ANDREA JUNG REMAINS AS PASSIONATE—AND COMMITTED—TO THE COMPANY WHOSE MISSION SHE HAS TRANSFORMED OVER THE LAST DECADE. BY MOLLY PRIOR PHOTOGRAPHED BY MELANIE DUNEA
BB1006.034-39.Jung.a;35.indd 34 6/9/10 4:42:27 PM
WWD BEAUTY BIZ 35
A day in the life of Andrea Jung: In Washington, introducing Avon’s global campaign to end domestic violence.
women is something that, day after day, after all these years, continues to not only resonate, but makes me feel more passionate about Avon,” says Jung. “By defi nition, I’m probably an impatient person, but if you asked me 10 years ago where we would be, some things have happened so much faster than I thought and some things probably took longer because they are structural changes. But a lot of processes and platforms have been built. The brand has come into its own. It’s been an interesting moment.”
Jung, who joined the direct seller 16 years ago as
president of the product marketing group for Avon U.S., has seen Avon—a global company with more than 6 million representatives across more than 100 countries—weather tough times before: the Russian ruble meltdown in 1998, a U.S. recession in 2001 and the dramatic decline of the Ukrainian hryvnia two years ago.
Faced with the current recession, she viewed the brewing storm as an opportunity to attract women looking for a way to make money as the ranks of the unemployed swelled. “Our strategy was to be the solution,” says Jung.
“The economy was tough, unemployment was high and we went out to tell the message about what a wonderful opportunity Avon was.”
She adds, “There’s a psychographic shift in terms of people wanting to own their own destiny....[By selling Avon,] you are running your own business. The idea that you can’t get laid off or fi red is an attractive one. We continue to see our worldwide recruiting numbers grow very strongly.”
Earlier this year, Jung, who also serves as chairman of Avon’s board, once again presented an aggressive plan—this
BB1006.034-39.Jung.b;36.indd 35 6/9/10 4:58:51 PM
time to lay the groundwork for recovery—that included launching new product categories and technologies and stronger support programs for representatives.
The idea, says Jung, is to offer the representatives more to sell so the customer orders more, and the basket size—and the company—grows.
More products, particularly those at higher price points, are a cornerstone of Avon’s plan to retain its broadening ranks of active representatives, which last year grew 9 percent, the highest rate in fi ve years. “If you fall in love with the community, the products and how great the innovation is for the price, then you’ll stay with us,” says Jung. “That’s been our strategy: Bring them in and keep them by giving them more products to sell.”
Earlier this year, Avon surprised industry watchers by making two acquisitions—its fi rst acquisition since buying Discovery Toys in 1997. (It has since been sold.) Though small in size, the acquired brands—the premium natural skin care range Liz Earle and the baby care line Tiny Tillia—expand the company’s portfolio into two new categories, natural skin care and baby care, respectively, both of which Jung believes hold enormous potential. “If you study consumer spending on baby care, even in a tough economy, it’s the one thing people don’t give up,” she says, noting that in the U.K., women spend two-and-a-half times more on baby care than they do on beauty. The same is true in the U.S.
For its part, Liz Earle gives Avon the opportunity to expand its offering in the premium-price tier.
More acquisitions are most likely on the horizon. “Close to the core acquisitions are defi nitely something we will look at very closely,” says Jung. “We have such a great global footprint, so we’re looking for businesses we can perhaps take global. We really have an opportunity to penetrate the developing and emerging markets quickly.”
Avon’s global might is a signifi cant competitive advantage. The company has 90 percent brand recognition around the world, fueled by millions of representatives and robust marketing. Since 2005, Avon has nearly tripled its advertising spending to $400 million in 2008.
Research and development is another key focus area. In 2009, Avon spent $66.7 million on R&D, developing new products and improving existing ones. Its global R&D operations are based in Suffern, N.Y., with satellite facilities in Argentina, Brazil, China, Japan, Mexico, Poland and South Africa. Avon plans to open a regional R&D center in Shanghai late this year, which will be its largest outside the U.S.
Avon does not break out sales by category, but last year, beauty sales increased 7 percent in constant currency (on a reported basis, sales decreased 3 percent). Within beauty, in constant currency, sales of fragrance gained 8 percent, personal care increased 9 percent and color cosmetics grew by 13 percent. Skin care sales decreased 1 percent.
In skin care, Avon has ambitious plans to build its existing Anew franchise—which launched in 1992 with the industry’s fi rst alpha hydroxy acid–infused cream, an ingredient credited with jump-starting the antiaging revolution. “When I came to Avon in 1994, it was one item: the industry’s fi rst alpha hydroxy [acid] cream,” recalls Jung. Last year, Anew was the number-one antiaging brand,
and this year, it ranks number two, according to data from Euromonitor Inc., provided by Avon.
Jung’s goal is to transform the $1 billion Anew into a $2 billion masterbrand. Recent innovations include Anew Reversalist, a new antiaging range targeting women in their 40s, and Anew Clinical Derma-Full X3 Facial Filling Serum, which is intended to reduce the appearance of wrinkles and regain facial fullness with a formulation that, according to Avon scientists, contains the same injectable grade hyaluronic acid facial fi ller used by dermatologists.
“We think there’s an opportunity to double [sales to $2 billion],” Jung says. “We can extend it to sun, to men’s, to color cosmetics and hand and body.”
On the fragrance front, Avon’s business has grown despite a tough climate in North America. Last year, sales grew 8 percent, outpacing market growth of about 4 percent and driven largely by Latin America and Central and Eastern Europe. Avon’s scent strategy centers around a coterie of celebrity and designer alliances that stem from the turnaround strategy implemented in late 2005. Its fragrance portfolio now includes In Bloom by Reese Witherspoon, Unscripted by Patrick Dempsey, U by Ungaro, Eternal Magic fronted by Zoe Saldana and the upcoming Outspoken by pop star Fergie. Most recently, Avon aligned itself with the fashion house Hervé Léger, best known for its impossibly tight bandage dresses.
“There is an authenticity and a belief that as spokespeople, they have the power to talk about their pride
in being associated with Avon,” says Jung of the fragrance alliances. “That certainly has translated from an image point of view, and [fragrance] is certainly a high-image category. These brands in the portfolio have really made a step-change difference in our fragrance business.”
Hair care presents another untapped opportunity, Jung believes. Citing Euromonitor data, Avon said that, in 2008, the category represented 21 percent of the cosmetics, toiletries and fragrance business for the industry overall, but only 5 percent of Avon’s total sales. Avon will try to develop the category into a major platform by emphasizing premium-price treatments and a regimen approach by repositioning its existing Advance Techniques line into a masterbrand. As with AHAs in skin cream, Avon believes it has a game-changing technology—a patent-pending frizz-reducing technology said to mimic the results of an in-salon hair-smoothing treatment—which will launch in a product called Advance Techniques Frizz Control Lotus Shield in July. The serum claims to control frizz for three days. Avon plans to support Lotus Shield with television spots, marking the fi rst time it has supported the hair care category with TV ads.
In terms of nonbeauty items, Jung believes jewelry offers an opportunity to polish the company’s image and style authority. “We’ll be more intense on our growth drive for jewelry and accessories worldwide,” she says. “The U.S. has a large business in those categories, but we’re underpenetrated worldwide. That’s something we’ll be expanding.”
As she talks about the business, Jung is warm but intensely focused, leaving the Diet Snapple in front of her untouched during an hour-plus interview. She looks intently at the interviewer, and organizes her thoughts into sweeping paragraphs that effi ciently punctuate each point she intends to make.
For as much as the company has worked to seize hold of growth opportunities within its key categories, Avon has long been criticized for relying on an antiquated sales model of representatives knocking on doors of women who are no longer home, as they have long since joined the workforce. Over the years, Avon has encouraged its representatives with offi ce jobs to sell to fellow co-workers, but the company is still dogged by comments like, “Ding-dong, no one’s home,” a play on Avon’s iconic ad campaign from the Sixties, “Ding-dong, Avon calling.”
Wall Street, too, has grown impatient as Avon works to
36 WWD BEAUTY BIZ36 WWD BEAUTY BIZ
Of its $1 billion Anew skin care franchise, Andrea
Jung says: “We think there’s an opportunity to
double [sales to $2 billion]. We can extend it to sun,
to men’s, to color cosmetics and hand and body.”
TINY
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Avon’s bold advertising look.
BB1006.034-39.Jung.a;35.indd 36 6/9/10 4:46:31 PM
WWD BEAUTY BIZ 37
Says one Wall Street analyst:
“Technology is great for
productivity, but it doesn’t
move volume. For the Avon
representative, the earnings
opportunity isn’t compelling
enough. Avon has to move into
the higher price tier.”
TINY
TIL
LIA
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GEO
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turn around its U.S. business, which has struggled over the last decade and accounts for about 20 percent of the fi rm’s revenue, according to analysts.
In the company’s most recent quarter ended March 31, revenue in North America declined 2 percent, dragged down by lower average order sizes. Sales of nonbeauty items—which include categories such as holiday decor and household goods—declined 6 percent.
In April, during Avon’s U.S. Sales Leadership Conference, held annually in Las Vegas, Breig outlined a growth plan for the North American market that called for moving deeper in certain categories, namely hair care; entering new ones, as the company has done by acquiring Liz Earle and Tiny Tillia, and retrenching, to some extent, away from nonbeauty segments.
The goal is to increase sales to $3 billion, up from $2 billion, with beauty sales targeted to increase to 65 percent from 55 percent of sales, as Avon works to de-emphasize nonbeauty categories, reports Caris & Co. analyst Linda Bolton Weiser, who attended the conference. She writes, “Order fi ll rates improved in 2009 from abysmal lows, with more improvement expected in 2010 and 2011.”
Bolton Weiser notes that studies show 60 million U.S. women want to buy Avon, yet only 10 million do, partly because representative attrition leaves potential customers “stranded.” Avon aims to solve that problem with a pilot program called “Customer Connect,” which gives representatives incentives to submit customer lists for reassignment.
Goldman Sachs analyst Andrew Sawyer writes in a research note dated April 19: “North America is a key trouble spot for Avon, with sales down high-single digits in 2009 and operating margin falling to a multidecade low of 6 percent.” He continues, “The company spelled out several initiatives at the Leadership Conference, but we expect limited traction in the near term. We maintain our forecast that North American sales will fall 4 percent to 5 percent in 2010 with profi t down 7 percent to 8 percent.”
Some industry watchers have gone so far as to question Avon’s relevance in the U.S. market, but BMO Capital Markets analyst Connie Maneaty disagrees.
“Direct selling is very relevant, both outside the U.S. and inside the U.S. market. It represents an opportunity for people to supplement their earnings,” says Maneaty. “The ability to supplement household income makes it relevant no matter what you think of the channel.”
Avon has worked to make the selling and ordering process easier for representatives, largely by harnessing the Internet and, more recently, social media. Jung has decreed technology the single biggest game changer in the business. “It’s the role of the Internet married with the traditional successful role of the personal relationship that changes the channel and the industry for direct sales,” she says. “It’s the biggest change that allows us to keep up and to continue to make direct sales relevant and new for the next generation, and literally change the productivity opportunity of how much a representative can sell and how easy it is to sell—regardless of whether gas prices are high.”
In 14 of Avon’s 100-plus markets, 100 percent of the representatives are online, and many operate e-boutiques or personalized online stores. In the U.S., nearly 80 percent of representatives use online tools.
“[The Internet] allows the representatives to do business with the company and with the customer,” says Jung. “It’s a game changer. It simplifi es the effort and it changes the experiences. The representative can have more interaction with their customer.”
Mark, Avon’s lively beauty and fashion brand for young women, has taken the lead on the technology front by introducing iPhone apps and one of the fi rst digital social
selling applications on Facebook. Avon will likely pursue the same initiatives, and
all Internet initiatives will also be designed as mobile applications, which are particularly suited for developing and emerging markets where household computers are scarce in comparison with mobile phones.
Last fall, during a meeting with analysts, Avon declared it planned to commit $50 million over the next several years to its social networking strategy.
Still, Wall Street remains unconvinced. “Technology is great for productivity and for morale, but it doesn’t move volume,” says Deutsche Bank analyst Bill Schmitz, who notes the average representative in the U.S. makes roughly $2.85 an hour per 10-hour work week. “For the Avon representative, the earnings opportunity isn’t compelling enough,” he continues. “Avon has to move into the higher price tier,” where direct-selling competitors such as Nu Skin play.
In the midst of trying to drive market share growth across the globe, Avon has been rocked by a bribery probe. Information that alleged Avon executives in China bribed Chinese government offi cials came to Jung in the form of a letter. In October 2008, Avon fi rst disclosed that it had begun a voluntary investigation into the allegations, and said the company began the investigation under the oversight of its audit committee and conducted by outside counsel. It reported the allegations to the U.S. Securities and Exchange Commission as well as the Department of Justice.
But recent reports that the probe had widened to include all of Avon’s international regions sent the company’s stock down nearly 8 percent on April 13 in New York Stock Exchange trading. The day before, Avon’s stock price had reached $34.76, the stock’s year-to-date high [as of press time]. In late May, the stock closed at $27.06. Avon emphasizes the allegation that triggered the investigation was in China only. Still, questions persist.
At the fi rm’s annual shareholders meeting last month, one attendee declared, “I hope we get periodic updates from the company. This is bad publicity.”
Despite Avon’s voluntary actions to dig into the allegations, one Wall Street source said, “It’s an embarrassment.”
Jung has taken the crisis in stride. A decade of leadership allows a lot of time for things to go right and for things to go wrong. Refl ecting on her years at the helm, she says: “You have to be in something long enough to write a chapter. It’s been a decade of transformation of the company that is positioned to really take off to a new level now. So, I’m looking forward with actually more optimism and energy. On one hand, [the decade] feels like it went by in a fl ash. On the other hand, there’s been an enormous amount of heavy lifting that we’ve done to take the brand and the channel to where it is today, and these large transformations take time.”
Key to her transformation vision is a repurposing of Avon itself, from a beauty fi rm into the company for women, as refl ected in its new mission statement, which was unveiled in May and reads, in part: “This is the company that puts mascara on lashes and food on tables, that fi ghts wrinkles with one hand and breast cancer with the other. That knows the value of a perfect lip, but still opens its mouth and speaks out against domestic violence and for women’s fi nancial independence.”
To that end, the company vigorously champions women’s causes, including the eradication of breast cancer and, most recently, domestic violence. In March, Jung announced a $1.2 million grant to Vital Voices and a partnership with various world governments to help combat violence against women, in a ceremony attended by First Lady Michelle Obama and Secretary of State Hillary Rodham Clinton.
Mark’s cutting-edge digital apps.
The recently acquired Tiny Tillia.
BB1006.034-39.Jung.a;35.indd 37 6/9/10 4:47:23 PM
Since its inception in 1955, the Avon Foundation has raised and awarded $725 million toward these causes, as well as for emergency and disaster relief. And being a part of that is a large part of what drives Jung.
“At the very simplest level, I knew from the day I joined that this was an unusual company in terms of its purpose,” she says. “The decade hasn’t been just a great career, but I’m actually able to get up in the morning and make difference.”
Jung recalls that, after graduating from Princeton University, where her daughter is now a student, she considered not-for-profi t work or joining the Peace Corps. “But I needed to earn money. I needed a job,” she says. “I thought before that the two [paths] were distinctly different. That you had to go into business or, if you were going to do not-for-profi t work, you couldn’t do it in a for-profi t job. This company has changed that for me. In a way, I feel like I am doing both. I get to have the satisfaction that the work really matters, that it actually makes a difference in society, that it makes a difference for women and in the community, and at the same time, it’s been an extraordinary career opportunity. Not too many people get to do both.”
Waving to the dense collection of picture frames that line her offi ce windowsill, Jung says: “If you look at some of these pictures, I’ve been here so long and a lot of the faces have changed and a lot of great new talent [has joined]. Some days I come in and I say, ‘Wow, I’m in a different company, but it’s still called Avon.’”
The vision has not changed. “The goal is not just to make people beautiful, but to literally make them economically empowered,” she says. “When you visit other countries, you see women just rising into independence—into not only independent income, but independent thought leadership in their societies. It’s a really great thing to be part of a company that can actually help that.”
With sales outside North America accounting for nearly 80 percent of Avon’s revenue, Jung spends a great deal of time traveling—usually visiting one or two international markets a month—to “feel the pulse” of the business in each of Avon’s six regions.
For the quarter ended March 31, by region, Latin America’s revenue was up 22 percent on a reported basis; revenue in Central and Eastern Europe climbed 28 percent from the year-ago period; revenue in Western Europe, the Middle East and Africa gained 23 percent, and revenue in Asia-Pacifi c increased 10 percent.
The exception to strong international gains was China, where revenue slid 31 percent, which Avon attributes to a planned transition away from its retail model of beauty
boutiques toward a pure direct-selling business.Jung recalls one whirlwind travel day in particular
through Central and Eastern Europe in January, saying: “I was in three countries in one day. I had breakfast in Moscow, lunch in Kiev and was in Bucharest late that evening.”
Her travel companion on that trip, Charles Herington, Avon’s executive vice president of Latin America and Central and Eastern Europe, remembers, “In four days we had visited six or seven countries. The pace was grueling.” He remembers days that started at 4 a.m. and ended close to 11 p.m. “One night, I saw myself in the mirror and said, ‘I cannot believe I let Andrea see me like this.’”
Did Jung show signs of fatigue? “She looked camera ready,” he says.
In fact, the executive is known for her fl awless appearance, generally comprising red lipstick; smooth, shoulder-length hair, and a strand of gumball-size pearls. Is it any wonder that Mattel made an Andrea Jung Barbie especially for her? The doll sits in a glass case behind her desk.
At the same time, though, Jung has remained remarkably down to earth. Breig recalls that on the day of her fi rst business review with Jung, she got a phone call 10 minutes before the meeting informing her that her son had been injured on the soccer fi eld and was being rushed to the hospital in an ambulance. After frantically calling her husband, her nanny and a neighbor to meet him at the hospital, Breig arrived in Jung’s offi ce fi ve minutes late, briefl y explained her tardiness and assured her boss she was ready for the meeting. Breig recalls, “Andrea looked at me and said, ‘You have to go home.’ And she called a car to take me to the hospital, which was two hours away.” She continues, “Andrea is aggressive about the business and about the mission and purpose of the company, but she has never forgotten that this is a business that is fundamentally about people.”
Herington says, “She expects your best. Her standards are very high.…If you are not on the right track, she will defi nitely let you know [that] very clearly.” But he adds she’s quick to laugh during fl eeting moments of downtime. He recalls that, at a hospital ribbon-cutting ceremony in Brazil, Jung took a tumble and scraped her knee. “As she picked herself up, she was laughing at herself,” he says, adding she even joked that she picked the right place to fall: a hospital.
Jung, who also has a 12-year-old son and who sits on the boards of the General Electric Co. and Apple, says she tries to balance work and home by compartmentalizing. “I’m certainly better at it than I was 10 years ago,” she says. “I force that discipline.”
She does travel for pleasure, on occasion, and in March visited Paris with her daughter. But Avon called in the form of a group of representatives visiting from Tokyo, who they bumped into on Avenue Montaigne.
After a decade of leadership, Jung shows no signs of tiring of the job, saying only: “I continue to be committed to Avon for the long term,” when asked of her plans. Some industry observers suggest she plans to log another decade at the helm before retiring.
“She is an incredible visionary leader,” says Higson. “She always has a viewpoint on where we are going—long before anybody else thinks the current method is running out of steam.…She has the ability to paint the big picture: ‘This is the journey and here are all the steps. And when we get there, it will look like this.’ She seems to make it very embracing to take the next step.”
Jung says, “I have a real love affair with the company.…The job is never an easy job, but I always fi nd my source of inspiration and source of energy, usually from our fi eld [of representatives].…They are the same all over the world: They come to Avon to make their dreams come true.”
38 WWD BEAUTY BIZ38 WWD BEAUTY BIZ
“I get to have the satisfaction
that the work really matters,
that it makes a difference for
women and the community, and
at the same time, it’s been an
extraordinary career opportunity,”
says Jung. “Not too many people
get to do both.”
38 WWD BEAUTY BIZ
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Premium-price skin care and fragrance are expected to boost sales.
Anew, Avon’s billion-dollar powerhouse.
BB1006.034-39.Jung.a;35.indd 38 6/9/10 4:49:38 PM
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BB1006.034-39.Jung.a;35.indd 39 6/9/10 4:50:12 PM
In laboratories across the world, chemists are dreaming up the next big
breakthrough in beauty. Many approach the task with the type of kooky
imagination Willy Wonka unleashed in his chocolate factory. While blue-sky
ideas such as lip glosses that stay on for 48 hours, fragrances that smell
of Mars and hair sprays that transform straight locks into curls in minutes
are unlikely to be seen on shelves anytime soon, there’s no doubt that
innovation is the most infl uential transformative element for the beauty
industry. But nailing the next mineral powder, olfactory note or antiaging
active ingredient that will redefi ne the major categories is no easy feat.
Here, WWD Beauty Biz uncovers some cutting-edge new technologies and
ingredients that could shake up the status quo. BY STEPHANIE EPIRO
SKIN CARE: MINING THE SEA FOR ANTIAGING IDEAS.
What does a starfish, copper metal or the
middle of a desert smell like? Headspace
technology introduced several years
ago has allowed perfumers to enclose
all kinds of objects under glass, record
the chemistry of the surrounding air and
re-create it in the laboratory later in order
to nail down a more authentic note. Now
they’re looking for other novel ways of
fine-tuning fragrance notes, such as
the culinary world of aroma bases. “We
copied a peach flavor formula into a scent
molecule recently that was a lot more
real than the cloying sweet peach note
we used to use,” says Dirk Braun, vice
president and senior perfumer of Symrise.
Meanwhile, Pierre Negrin, a perfumer at
Firmenich, predicts edible notes will move
from gourmand sweet notes to savory.
“What’s missing is another dimension to
food notes, such as salty foods or drink-
related notes,” Negrin says, adding he
laced a rich new rum note in several men’s
fragrances slated to launch next year. On
the savory side, Thierry Mugler’s latest,
Womanity, which was developed by Mane,
contains a caviar note.
Touted to bend fragrance-making
rules are neurofunctional fragrances—
sensorial scents formulated with notes
that elicit an emotion when smelled.
Symrise is undertaking a study to rate
consumers’ responses to particular
fragrance materials by measuring heart
rate and body temperature in an effort
to tap into a gamut of emotions. “We’ve
done happy and relaxing through
scent, but what we’re studying is other
feelings which will eventually lead to new
fragrances,” says Braun.
Bottling the scent of cut grass to
soothe nerves is an idea dreamed
up by Dr. Nickolas Lavidis, senior
lecturer from Synaptic Biology Group,
specializing in nerve system chemistry,
from Australia’s Queensland University.
Lavidis noted that a holiday in Yosemite
Park and mowing his lawn elicited the
same calming effect, so he identified
the natural stress-busting chemicals
from grass and pine trees and
formulated them into Serenascent, a
spray for the ambiance, room or bed.
Serenascent, which launched online
in June, works by accessing the brain
structure, changing anxiety levels and
inducing a restful sleep, says Lavidis.
“Serenascent is a mixture of hexanals,
hexenols and pinenes in very specific
ratios. Specifically, it greatly reduces
the structural changes that occur in
the hippocampus, a part of the brain
associated with memory and spatial
orientation, during prolonged stress,
thus maintaining normal memory
function,” he explains. Serenascent’s
aroma varies from freshly cut grass
to crispy green apples to the smell of
Christmas, Lavidis says, depending on
who’s asked.
Antiaging technologies can come from the
most curious of places. Elderly Japanese
workers in a sake brewery who sported
soft and youthful hands from a liquid found
in the liquor’s fermentation process is
the legendary story behind SK-II’s Pitera
ingredient. Scientists have turned to the
sea to extract skin care’s next biggest
ingredient. When studying microalgae
strains for biofuel, the clean-energy fi rm
Solazyme also looked for a strain that
boasted beauty benefi ts, and hit on
Alguronic Acid fi ve years and 10,000
strains later.
The fi rm says the acid is a powerful
antiaging ingredient that is vastly more
effective than hyaluronic acid. “Microalgae
is able to survive in extreme conditions and
fl ourish, and protect itself, which is why
Alguronic Acid is so effective,” says Frederic
Stoeckel, Solazyme Health Sciences vice
president and general manager. “It is an
amazing story, and I believe it will change
the landscape of the market.”
According to independent in vitro
testing by BioInnovation Laboratories in
Colorado and human skin testing by Essex
Testing in New Jersey, Alguronic Acid
showed a 44 percent reduction in free
radical damage, a 66 percent increase in
elastin production (in vitro) and 74 percent
suppression of hyaluronidase activity
(in vitro). Eighty percent of women in a
clinical study reported skin tightening
(in vivo) and 49 percent, a reduction in
redness and infl ammation. Solazyme will
launch Alguronic Acid via two lines created
in-house. Altruest, a serum and beauty
supplement containing the fi rst generation
of the ingredient, made its debut online at
onaltruest.com in late May and is priced
at $119 for a 30-day supply of serum and
the supplements. Phase two consists of
an updated version of Alguronic Acid to
launch in luxury specialty stores next year.
Forecasting the evolution of antiaging
skin care after vitamins, peptides and phyto
stem cells, the German firm Rovi says the
next step is found in the science of the
aging process. “The trend in cosmetic
science is to learn about new functions of
the skin’s aging process and design active
ingredients that specifically address these
functions,” says Sarah Teichmüller, Rovi’s
marketing manager. To that end, Rovi’s
latest weapon in antiaging is Vivendin, an
active ingredient that boasts the same
biochemical reaction as calorie restriction.
Rovi says independent in vitro studies,
conducted by a firm it declined to name,
show Vivendin works by activating the cells’
Sirt-1 enzymes by up to 40 percent, setting
off biochemical reactions to deprogram
genetic information, causing less cell
death and allowing cells to live longer
and maintain original functions, such as
synthesizing collagen or elastin. Rovi paired
Vivendin with another of its technologies,
Ineocell, a molecular delivery system, which
consists of positively charged vesicles
that carry Vivendin through the negatively
charged skin, deep in the epidermal cells,
where it releases the active ingredient.
Teichmüller said it could be up to a year
before Vivendin is in the market.
40 WWD BEAUTY BIZ
FRAGRANCE: TAPPING
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COLOR COSMETICS: MAKEUP WITH THE ABILITY TO
TRANSFORM ITSELF—OR THE USER’S MOOD.
Like the animated robots that turn
into different forms, transformer color
cosmetics are capable of changing
textures and appearance. The world of
makeup has already seen transformers
infiltrate into some much-used products,
but turning a cream into powder looks
like a children’s science project in the
shadow of the latest technology of
instantly changeable and reversible
color pigments. Researchers at the
University of California have produced
microspheres embedded with multiple-
sized iron oxide particles lined up in a
particular direction. Using a magnetic
field, they can change the direction of
the iron oxide particles to subsequently
change their color. Leading the research
team, Yadong Yin says with more
engineering, it would be possible to
create pigments that can be turned
on and off after production with the
application of magnetic fields. “We can
imagine a nail varnish whose color could
be turned on or off when exposed to
different magnetic forces,” Yin says.
“The good thing about this technique is
that we can make the iron oxide itself
into different colors just using magnetic
fields, avoiding the use of additional
materials that in dye production are
sometimes toxic.”
Back in beauty labs, cosmetics
manufacturers are honing color products
that cross over into skin care. Biokolor, a
cosmetics manufacturer based north of
Milan, has recently perfected a multiple
emulsion, which can contain both
water- and oil-soluble ingredients. “The
sensorial effect is totally different from
other products and it feels very light on
the skin,” says Mario Deluigi, Biokolor’s
founder. The firm is using the technology
for foundations that target ultraspecific
problems and skin care.
Intercos is also focused on
transforming textures in its new
formulation technologies that include
a pure color lip fluid that applies with a
cream sensation and transforms into a
thin, flexible film that offers long-wearing
high shine. Other novel textures are a
fluid eye shadow that glides onto the lids
in a thin, highly pigmented, long-wearing
veil of color and a jellylike lip gloss that
has the texture of a balm.
According to trend research firm
Mintel, color and skin care products
are being imbued with psychological
benefits with ingredients that act on
neurotransmitters. Nica Lewis, director
of Mintel Beauty Innovation, says
products are being formulated with
peptides, color therapy, aromas and
gemstone crystals for mood-balancing
benefits. Dubbed “neurocosmetics,” they
contain active principles that work on
neurotransmitters to induce a positive
mood, or help the user de-stress or get
a good night’s sleep. Deborah, an Italian
beauty line, recently launched Euphoric
Shine Gloss, laced with a combination of
botanical active ingredients that release
dopamine, the happiness molecule.
HAIR: LOOKING TO NATURE TO SOLVE SOME AGE-OLD
HAIR CONCERNS.
Algae-derived ingredients are making
waves in the hair category. Natural
hair dyes haven’t evolved much
beyond henna, but the University
of Leeds in the U.K. is putting the
final touches on semipermanent and
permanent hair dyes using pure plant
and algae pigments. When tested for
performance, the dyes were as good as
leading products in the same category,
says Dr. Richard Blackburn, head of the
green chemistry group at the University
of Leeds. The semipermanent dyes
cannot lift color, but the permanent
dyes can, as they are formulated with
some hydrogen peroxide. Previously,
it was impossible to replicate the
chemical reaction in permanent hair
dyes with natural compounds, but
Blackburn and his research team have
locked down the formulation and are
being courted by a big multinational
beauty brand to bring the science to
market, he says.
“This revelation is going to change
the hair dye category because before,
the chemicals in hair dyes were
derived from petrochemicals,” says
Blackburn, who wouldn’t disclose which
company he’s in discussions with. “We
genuinely believe these hair dyes will be
preferable, as they are more important to
sustainability and other safety factors.”
Rub a balding head with a common
garden plant to prevent hair loss?
Queensland University’s Dr. Nickolas
Lavidis chanced on the yet-to-be-publicly
named plant’s benefits while studying
natural extracts that relax muscles
by increasing blood flow to the blood
vessels and is six months away from
perfecting the formula, he says. “This
plant’s chemical increases blood flow and
delivers oxygen, loosening the tightened
blood vessels on the scalp responsible for
killing the hair follicle in balding. It revives
hair follicles that are close to dying, so
effectively balding is halted and some
regrowth occurs,” Lavidis says. The
senior lecturer tried out the formula on his
scalp, without telling his Ph.D. students.
“After five weeks, there was a remarkable
difference—word got out and several
colleagues approached me to formulate
some more,” he says.
Meanwhile, the French botanical
ingredient manufacturer Naturex is
touting maca root extract, a plant that
grows in harsh climatic conditions in
the high Andes of Bolivia and Peru
and is said to work to stimulate hair
growth. Seveov, named to define the
concept of the main ingredient—sève
in French, meaning sap—fuses two
growth mechanisms, says Antoine
Darby, Naturex’s marketing manager.
Independent studies conducted by
French laboratory Labo Bio-Ec show
Seveov increases cell proliferation and
helps develop a protective sleeve around
the new hair by 36 percent. It also
increases cell proliferation in the hair
bulb by 169 percent, which enhances
natural growth, and protects it from
outside stress. Darby says the active
ingredient can be used to promote
hair growth, and expects it to come to
market in products that prevent alopecia
and detoxify the hair from external
aggressors like smog.
WWD BEAUTY BIZ 41
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42 WWD BEAUTY BIZ
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n elegant town house situated in the fashion quadrangle of Milan stands as a testament to how art and science can intertwine.
Inside the four-story hospitable house hang works by artists ranging from Andy Warhol to
Lucio Fontana, and the edifi ce also is the home of Madina and Dario Ferrari, who, with daughter Arabella Ferrari and other family members, form the core management of Intercos, perennially the top-ranked supplier of color cosmetics to the global makeup industry, despite challenges by competitors such as Chromavis.
“They are the leaders,” says Chantal Roos, who started working with Intercos 25 years ago and continued during her tenure as the head of YSL Beauté. “They are constantly looking for new ideas and creativity—not only in product and color, but also in technology.”
She notes that the family success started with the Swiss skin care company of Dario’s highly accomplished mother, Nadia Avalle, reached a crescendo with Dario and Madina and continues to build with Arabella. Their 27-year-old-son, Gianandrea, entered the business two years ago. “When some people reach a certain turnover, they ease up,” Roos notes. “This [company] crosses the generations.”
“I have worked with many labs, but they are in a different league,” says Sonia Kashuk, a leading makeup artist and founder of her own brand.
Emily Cohen, who consulted on the development of Topshop’s recently launched makeup line, adds, “Intercos is the Rolls-Royce of cosmetics manufacturers.”
Claudia Poccia, global president of the Mark division at Avon Products Inc., says her company manufactures its own makeup, but still works with Intercos as a source of new
ideas. “We look to Intercos to create and innovate fi rst-to-market products,” she says.
The yin and yang of art and science can be seen every year when Intercos unveils its annual trend forecast at the company headquarters in Agrate Brianza, outside of Milan. The exhibit refl ects the fi ndings of a six-month search through the worlds of art, fashion and culture—high and low—by a squad of art experts led by Madina. These cultural trends are married to the most cutting-edge molecular innovation that the research and development department can muster. The offspring of these two forces are new product technologies and new production techniques that the company presents as its hallmark. “The theater of makeup,” is how Kashuk describes it. “There is so much—so much to experience, so much product to take in,” she says. “It’s overwhelming.”
“It’s mind blowing,” agrees Cohen. “Each room is more creative and advanced than the next. It’s like being in Charlie and the Chocolate Factory.”
Kashuk draws a line between the Ferraris’ passion for
product development and their decadeslong love of art collecting. Referring to the family’s house—which also contains works by Jean-Michel Basquiat, Yayoi Kusama, Piero Manzoni and Alexander Calder—she says: “They are incredibly stylish. That sense of style plays into the product.” Kashuk marvels over the “amazing balance” of the house—“so fantastical and so comfortable.”
Dario, Intercos’ president and chairman, has been gradually turning operational duties over to his daughter, Arabella, for the last 15 years. But there is one operational aspect he has kept fi rmly in hand—calling the signals on innovation, which he describes as the engine of Intercos.
At age 67, Dario remains an imposing presence—at least one client describes him as “a rock star.” But with all the success of Intercos, he retains the attitude of one who’s still pushing to make it.
“I like change,” he says. “I change probably too much, but only by changing, you can create new things. If you look in the Italian dictionary, the defi nition of innovation [is] to modify a system by adding something new. That’s what we try to do also in our organization.
“If you keep this philosophy by adding something new, it drives you,” he continues. “You change probably without really noticing. It’s very important to improve.”
He points out that it all started with Madina 30 years ago, when they went to the Cosmoprof trade fair in Bologna with a tray full of makeup. “We used to sell one formula and she was making 24 different colors. This was our innovation 30 years ago,” he recalls.
By the time Arabella joined the fi rm 17 years ago, the product offering had evolved somewhat. “I had a box and we had colors and formulas. We were going around the
“It’s mind blowing,” says Emily
Cohen of Intercos’ annual trend
presentation. “Each room is more
creative and advanced than the
next. It’s like being in Charlie and
the Chocolate Factory.”
THE MILAN-BASED FERRARI CLAN FUSES INNOVATION, ART AND CHEMISTRY TO DRIVE ITS THRIVING COLOR COSMETICS EMPIRE. BY PETE BORN AND KERRY OLSEN PHOTOGRAPHED BY DAVIDE MAESTRI
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FROM LEFT: ARABELLA, DARIO, GIANANDREA AND MADINA FERRARI IN THEIR MILAN HOME.
BB1006.042-45.Intercos.a;23.indd 43 6/8/10 8:23:31 PM
world,” says Arabella, who is now marketing director of the color business unit of Intercos.
Dario chimes in: “I keep saying, ‘Arabella, don’t do the same thing you did last time.’ I don’t say ‘better.’ You have to try to do better, but at least different. This is really what’s important in innovation…quick speed and doing something new.”
His penchant for the novel has led the executive to declare that Benefi t Cosmetics is his favorite brand. “They try to be so different in terms of marketing position,” he says.
He also is fascinated by the speed of merchandising by fashion chains such as Zara, H&M and Topshop, which Intercos supplied for its recently launched color line. He’s a believer in the new color introductions from those retailers, “if it’s done well and you give the right space, the right creativity and the right ambiance.” He adds, “The concept is to bring to the consumer a quality product at the cheaper price. And that’s what people like,” he continues, hinting that Topshop may be thinking about taking its new color line into wholesale distribution.
One trend that Intercos is less excited about is the industry’s new tendency to incorporate treatment properties into makeup. “It’s a different culture,” says Dario. “In color, you can be a little bit crazy. In skin care, it has to be much more scientifi c.” As a compromise, his preference is to add color to skin care. To that end, Intercos has offered some hybrid products this year. Skin Rescue is billed as advanced corrective makeup with high coverage. There is also Advanced Treatment, which turns color products for the face, eyes and lips into an add-on treatment product offering antiaging properties.
A hallmark of Intercos is its innovative R&D department, and one of Dario’s main contentions is that suppliers such as Intercos shorten the product development cycle by providing brands with ready-to-go formulas. He asserts that customers can buy one of his formulas and be on the market within six to 12 months, compared with two to two-and-a-half years starting from scratch.
Dario repeatedly asserts that no one invests in innovation like Intercos, with 500 of 3,000 employees dedicated to that pursuit. “My husband likes to call [Dario] Bond,” says Jennifer Balbier, senior vice president of product development for MAC Cosmetics. “He has the technology behind him. He’s not just a salesman— he’s the real deal.” She also describes Arabella as “a super businesswoman.”
In addition to an innovation center in Italy, Intercos has four factories in Asia and an expanded plant in the U.S., with plans to open a 70,000- to 90,000-square-foot facility in São Paulo, Brazil, early next year.
Dario says the Brazilian venture will bring to fruition a new business model that was pioneered in the U.S., and later, China. The company has a dual role, supplying innovation to underdeveloped local brands while servicing the big international brands that have entered the market.
For last year, Intercos did 55 percent of its total business in basic color cosmetics, 12.8 percent in special effects, 16 percent in the pencil business, 8.3 percent in private label and 6.7 percent in skin care.
By retail channel, the business breaks down to 39.6 percent in the mass market, 32.2 percent in prestige, 22.8 percent in direct sales and 5.4 percent in specialty stores. Geographically, 49.7 percent of the business is done in the U.S., 44 percent in Europe and 6 percent in Asia.
Dario maintains that Intercos does business with 25 of the top 30 cosmetics companies in the world.
While cosmetics marketers tend to give Intercos high marks for creativity and quality, a number of executives claim there have been problems in the past with production and making deliveries on time. “We’ll always be the one being blamed,” protests Arabella, who says problems can crop up in other parts of the highly complex supply chain, such as the late arrival of packaging from overseas. “[The brands] manage one fall season and we manage 20,” she says.
Like everywhere, the recession has bitten deep. The Intercos business leaped ahead by 15 percent in 2008, then collapsed by an equally large 15 percent in 2009, leaving
the company at 2007 levels by the beginning of this year, according to Dario, who says there was a pickup in orders beginning last September and October. For the fi rst quarter of this year, orders were up by 26 percent over the same period last year. But that order fl ow was down by 5 percent compared with 2008. With the company running 1.7 percent ahead of budget, Dario predicts this year will be “an acceptable year. The [retailer] destocking is fi nished, but the consumer will not be very active.” He adds that this year may lay the groundwork for an upsurge in product launches.
He expects a growth of 9 to 10 percent for 2010, reaching $350 million, with the skin care business growing by 20 percent and pencils by 25 to 30 percent.
Arabella says in the U.S., “2010 is still soft as far as new projects are concerned and because we’re still suffering from the wave of 2009. But defi nitely we’re seeing a lot of interest.” She says pipelines are now empty and the brands are “desperate for innovation” for 2011 and 2012.
The structure of Intercos consists of an Italian corporate company serving major units in Europe, Asia and the U.S.
The corporate company contains the innovation and creative services. “This allows the three other international operating units to be fast and to take care of the local market, to service the customer the best way possible in terms of sales and marketing,” says Dario.
“The corporate [unit] has the task to understand the market, make the strategy and develop the product, to know about the U.S., Asia, Europe—three different markets, three different needs, different attitudes in terms of the consumer, in terms of the distribution, in terms of the customer.”
There are fi ve business units within corporate that are linked to Dario’s thinking on innovation and market needs. He gives directions on a weekly or monthly basis. Then, either Arabella gets involved on the marketing side or Madina on the trend side. “We interpret what [Dario] says and make it an operation and develop it,” Arabella says, adding that she also is the link to the R&D department.
The biggest unit is basic color cosmetics. The other four are: special makeup effects, which includes products with a particular visual impact; Interfi la, the pencil division, of which Gianandrea is sales and marketing manager; skin care, also run by Dario, and private label, driven by another family member, Matteo Milani, who is Intercos Europe sales and marketing director.
The artistic cutting edge is supplied by Madina, Intercos creative director, who previously worked in production at Milan’s famed La Scala theater and spends months scouring cultural capitals. As soon as she is fi nished putting the fi nishing touches on one year’s trend forecast, she is off to Paris, New York, London and Berlin to begin the next. “In July, I present to the marketing people in Intercos the new concept and they say, ‘Yes, no, this is OK, we prefer that….’ ”
“Madina, for us, is the mirror of what’s going on in the world in terms of fashion, trend, colors and bringing it all in,” says Arabella, who is charged with translating the vision to the R&D department. “They do their research part, and they come with a product to us. However, they don’t speak the same language as we do. We interpret this scientifi c language and then [Madina] comes with her creative.”
The third vector of the equation is what brands want, information that has been gleaned through constant dialogue with clients about their customers. In addition, Intercos gets direct consumer readings through its three Madina Milano makeup stores. The company tries out all of its new products on consumers, concentrating on the “two souls” of Intercos—color and innovation. “We’re selling product at a very competitive price to get the customer in,” says Dario, “and then we try to sell the innovation. It works incredibly well.”
This year’s trend presentation, dubbed Revolution, had a solid focus on product innovation. “We need to move away from market needs to revolution,” says Arabella, during a recent walk-through.
The skin care section focused on luminosity, using new fi lms and pure pigments to capture light and create smooth textures and fl awless fi nishes. The twist was treatment-infused color novelties, offering advanced and targeted corrective solutions for all age ranges. Powders had ceramiclike qualities, yet once applied, offered comprehensive coverage, a porcelain fi nish and enhanced emollient qualities.
Intercos has also harnessed a sugar-based technology to create new high-shine fi lms for products such as lipstick, which, when crystallized, create refl ective surfaces offering long-lasting adhesion and glossy fi nishes.
A patented fourth-generation polymer is the company’s biggest breakthrough this season. A liquid fi lm sets to form an acrylic texture and is said to offer highly refractive coverage for up to 24 hours. Prisma Shine eye shadows offer 16-hour coverage, dubbed Tech Shine, that creates a spongy form and is meant to offer a new glossy take on powder-fi nish eye shadows. Interfi la showcased new corrective pencils with line-fi ller properties.
Elsewhere, four themed rooms were designed to enable visitors to understand the creative process behind the science with artful displays, underlining four main concepts—Tonic Turbulence, showcasing high-voltage color; Naïve Nature, offering a feminine whimsical mood; Avant Garde, showcasing androgynous and unconventional texture and packaging, and Modern Modesty, blending utilitarian, pared-down product with an emphasis on quality.
Although the presentation was as creatively arresting as ever, for his part, Dario says he has mellowed since the early days of Intercos, when it was a fl edgling spin-off from his mother’s Swiss skin care company, which is now part of the corporate group. In those days, he seemed to play the role of chairman to the utmost, from the charm of Frank Sinatra to the fi nality of Mao.
“For many years, especially when the company was smaller, all the decisions were made by me,” he says. “I knew the company, I knew the business, I knew the people.”
Now, though, the operation has become more open. “It’s the difference between China and India,” Dario says. “In China, they go fast because one guy makes a decision. India is a democracy and they have to fi ght inside. We have been China for quite a long time—now we would like to become a little more like India. The company is growing, I’m getting old and I need to put in place people who can help me run the company. Making decisions is the key of a fast-growing company. Better you make a wrong decision than not to make a decision.”
Perhaps he spends time thinking about something other than the next makeup launch. “I have three passions,” says the man who also owns homes in Saint Moritz and Portofi no: “sailing, collecting paintings and playing chess.”
44 WWD BEAUTY BIZ
“I like change,” says Dario Ferrari. “If you look in the Italian dictionary,
the definition of innovation [is] to modify a system by adding something
new. That’s what we try to do also in our organization.”
“Madina, for us, is the mirror of
what’s going on in the world in
terms of fashion, trend, colors and
bringing it all in,” says Arabella,
who is charged with translating
the vision to the R&D department.
44 WWD BEAUTY BIZ
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WWD BEAUTY BIZ 45
AN ARTFUL LIFE : INSIDE THE FERRARI’S MILAN TOWN HOUSE.
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HOW DO YOU DEFINE BEAUTY?
Beauty is you not being afraid of who you are. Whatever that is, that other people are not satisfi ed with, as long as you’re satisfi ed with it, you’re going to cut through as beautiful to everyone. Because that means from the inside, you accept [yourself ]. To me, I look like, uh. But if I accept it from the inside, I look like, wow! On a regular day, I’m like, “You look OK.” With the makeup and hair and all that, I’m like “You look good!”SO YOU ARE ATTRACTED TO THE
MAKEUP PART?
The makeup is the fun part because it’s a beautiful asset to who you are already. You’ve just got to be able to accept who you are, know who you are, and makeup will be the cherry on the cake. And that’s beauty to me. Self-acceptance. Inner beauty is gorgeous. The makeup and the clothes are great, but mean nothing if you can’t accept what you see at home. I forget it sometimes, but I need to keep saying it and remind myself that’s how I feel.WHAT DOES MY LIFE REPRESENT
TO YOU?
The name My Life comes from me wanting people to see what was going on in my life. During the time I was building my fan base, I was crying out for help, because I was going through so much. Turns out they were crying out for help, because they were going through so much, too. Four million women said, “Mary, we’re going through it, too, but you’re helping us by calling on us.” And they helped me. So I wanted [the fragrance] to be something special for my female fans. It’s a special tribute to us as women, and who we are and how far we’ve come. My fans and I are smart now. We know we’re smart now, but we didn’t know it then. We know we’re beautiful now—we didn’t know it then. We’re educated now—we didn’t know it then. We’re soft, we’re edgy, we’re all those things. And I wanted this perfume to represent every female’s everyday life.WHAT WAS THE FRAGRANCE
CREATION PROCESS LIKE FOR YOU?
It was new to me. I’ve never done it, but it was so much fun because I have a keen sense of smell. I knew exactly what I wanted and would ask for an incense smell, a musk smell, a wood smell. I also wanted fl orals, but edgy fl orals. Every day they would bring me blotters to test. After a while, everything started to smell the same, so I had to pull back. I took the perfume, and tried it on myself around Christmas. My aunt Pam [Pamela Baxter, chief executive offi cer of LVMH Perfumes and Cosmetics] came to our house, and I said, “Pam, I love it, but something’s causing me to hate it. What is that smell—there’s too much of it?” Pam said it was wood. I got on the phone right away and said, “Take the wood out!” WHY WAS IT IMPORTANT TO YOU TO
BE INVOLVED IN THE DEVELOPMENT
PROCESS?
In 1994, I wouldn’t have known what was in it because it wouldn’t have been in my mind to pay attention. Since I’ve evolved and changed my life, I pay attention to everything. I don’t dig and pry—that’s not what I do. I’m not a nosy person. But the things that are for me to learn, I learn them. I have to be involved. When your name is attached to something, and it’s not good, that’s your name. So I prefer a good name rather than vanity and riches.
ARE YOU SHY?
I am shy. That’s why I like to make sure I’m prepared. If I’m stumbling and fumbling and stuttering and not knowing what I’m speaking about, it bothers me later. Being prepared gives me the confi dence that will cut through the cameras. This [project] is something new—people have never seen me in this light, as an entrepreneur. My ambition is to constantly let people see me in another light—to see me as a philanthropist with the [Foundation for the Advancement of Women Now], to see me as a businesswoman and entrepreneur with Carol’s Daughter. WHY IS FFAWN SO IMPORTANT TO YOU?
I was a victim of abuse; my mom was a victim of abuse. Every woman in my neighborhood when I was growing up was a victim of physical abuse. All my life, as a child, I saw women screaming at the tops of their lungs, women running out of their houses naked trying to get away from their husbands. I almost didn’t want to give myself a second chance, but I did. I vowed as a child—when I saw my mom and all those women being hit—I refuse to see another woman hurt like that. I can’t do it. I see their self-esteem go down, they just don’t care anymore, they look horrible, and I’m in the music business—I have to do something about it. WHAT SERVICES DOES FFAWN PROVIDE?
We go to work saving lives and giving women a second chance. We opened the Mary J. Blige Center for Women in Yonkers [N.Y.], where I saw all that [abuse]. We have a GED class. We have a childcare system, because the hardest part of being a mother and trying to get a job was trying to fi nd a babysitter, when my mom was raising us. We have a computer room where you can get your résumés together and go online and see what’s out there. I want them to have confi dence. I learned that confi dence really could save a life.HAVE YOU EVER THOUGHT OF GOING
INTO FASHION?
Yes, but I don’t want to do clothing just because everyone else is doing it. I want to do it right. I’ve had meetings and stuff like that. But I don’t think everybody’s goal is my goal. The goal is to make sure that people are comfortable and fl y. What good is your beautiful dress if you’re not comfortable in it? I believe in comfort. Your shoes have to be comfortable or else you’re not going to be able to think. This is a woman’s thing.YOU RECENTLY DID A COVER OF LED
ZEPPELIN’S “STAIRWAY TO HEAVEN.”
ARE THERE OTHER SONGS YOU’D LIKE
TO COVER?
There are so many songs I’d like to make over, and so many songs I would never, ever touch—ever! Not in a negative way, but some things you can’t do, or you shouldn’t do. Certain things are best left as the classic that they are.AS A LITTLE GIRL, DID YOU EVER
IMAGINE YOU WOULD BE
WHERE YOU ARE
TODAY?
I had a dream when I was a little girl, about all these lights and all these people. That’s all I can say: I had a dream about all these lights and all these people. And I believe I was onstage. So that’s it—that was the only dream I had.
46 WWD BEAUTY BIZ
Nine-time Grammy Award winner Mary J. Blige is as
devoted to her fans as they are to her. To empower
disadvantaged women, she created FFAWN,
the Foundation for the Advancement of Women
Now; to foster the next generation, she mentors
students at the Women’s Academy of Excellence
in the Bronx. Her latest project? My Life, a signature
scent named after her 1994 breakthrough album
of the same name. Here, the superstar on beauty,
confidence and branching out.
BY JULIE NAUGHTON AND PETE BORN
LAST CALL
01 The superstar in action.02 With students at the
Women’s Academy of Excellence. 03 Her latest project.
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Put down the spreadsheet... pick up the sunscreen
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