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Retailers are encouraged by the strong crop of new fragrances coming out this fall. In a category that continues to lose

volume, there are some major new products hitting the market, which buyers hope will attract consumer interest and create a buzz over the fragrance sector as a whole. These include a new offering from Chanel in the form of N°5 L’Eau; the new Hermès scent, Galop; Yves Saint Laurent’s Mon Paris; a duo from Prada and a men’s scent, Dylan Blue, from Versace. New brands are also entering the market, such as Philippe Starck with his La Collection Peau range. And of course, there is the much-awaited

fragrance line from Louis Vuitton. All this means more newness, more investment and more talk about fragrance. However,

it also means a lot more competition for shelf space and also for consumer spend. While the offer may be rich, it looks like brands may have an even tougher time cutting through the clutter and making their scent stand out than in previous years. Coming up with more creative or offbeat communication and different ways of discovering or sampling scents would seem to be more important than ever.

Standing out from the crowd The buzz 2News roundup

Netwatch 6 Social media monitor

Interview 7 Feelunique ceo Joël Palix

Insight 10 US department stores

Show review 14 World Perfumery Congress

Store visit 16 Kiko, Bergamo, Italy

Oonagh PhillipsEditor in [email protected]

www.bwconfidential.com The inside view on the international beauty industry August 25 - September 21, 2016 #135

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www.bwconfidential.com - August 25 - September 21, 2016 #135 - CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

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At a glance...

Strategy

The beauty market saw a string of acquisitions this summer. L’Oréal is set to acquire US-based prestige beauty brand IT Cosmetics for $1.2bn. The brand, which is co-owned by TSG Consumer Partners, markets more than 300 products in color, skincare, brushes and tools. It is sold through television shopping channels QVC and TSC, specialty stores such as Sephora and Ulta and on its website. The brand reported net sales of $182m for the 12 months ending June 2016. IT Cosmetics will become part of L’Oréal’s Luxe division. This deal comes shortly after L’Oréal entered into exclusive negotiations with Rivadis Group for the acquisition of Société des Thermes de Saint-Gervais-les-Bains and the license to use the Saint-Gervais Mont-Blanc brand. Korean brands were also at the center of the recent M&A wave. L Capital Asia, a

private-equity firm backed by French luxury goods group LVMH, acquired a minority equity stake in Korean make-up artist brand Clio Cosmetics, becoming the second-largest shareholder in Clio. Meanwhile, investment bank Goldman Sachs and private-equity firm Bain Capital Private Equity agreed to acquire a majority stake in Korean cosmetics company Carver Korea from existing shareholders. Carver currently sells some 1,000 cosmetics products in Korea, China and the US. In the mass market, Anglo-Dutch group Unilever said it would purchase US men’s grooming brand Dollar Shave Club, a direct-to-consumer seller. Private-equity firm Tengram Capital Partners has acquired a majority stake in prestige skincare brand Algenist from TerraVia. TerraVia received around $20m upon completion of the deal. TerraVia retains a stake of around 20% in Algenist and will continue to supply active ingredients used in the brand’s product line. Launched in 2011, US brand Algenist markets algae-based anti-aging and color correcting products. The brand is sold in 23 countries at retailers including Ulta, Sephora and QVC. As part of the deal, Tengram and TerraVia will also create a partnership to identify

opportunities to invest in beauty and personal-care brands that would benefit from TerraVia’s algae-based ingredients.

Packaging group Albéa has acquired Scandolara Tub-Est s.r.o, which operates a laminate tubes facility in Levice, Slovakia. Scandolara Tub-Est s.r.o serves global and regional brands across Europe, primarily in the oral care market. It reported sales of €20m in 2015.

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

n Macy’s to close 100 stores

n Luxasia appoints new ceo

n Louis Vuitton unveils fragrance collection

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US-based Estée Lauder Companies (ELC) saw net profit for the fourth quarter 2016 fall to $93.5m compared with $153m a year ago due to restructuring charges. Net sales for the period rose 5% to $2.65bn. Excluding the impact of foreign currency translation, net sales increased 7% in the quarter. The company saw double-digit gains in travel retail and online. For fiscal 2016, the company posted a net profit of $1.11bn, up 2% from the previous year. Net sales grew 4%, to $11.26bn, (+9% at constant currency). By product category, sales for skincare were down 1% (+3% at constant currency), to

$4.45bn for the full year. Make-up sales were up 9% to $4.71bn (+15% at constant currency), primarily driven by double-digit increases from MAC, Smashbox and Tom Ford, as well as gains from Bobbi Brown. Fragrance sales grew 5% (+10% at local currency) to $1.49bn, due to double-digit gains from Jo Malone London and Tom Ford and incremental sales from recent acquisitions. By region, net sales in the Americas grew 4% to $4.71bn for the full year. Net sales in

Europe, the Middle East & Africa were up 7% to $4.38bn. Sales for the Asia-Pacific region were flat at $2.17bn.

US-based Coty reported a net loss of $31m for the fourth quarter of 2016, against a net profit of $21m in 2015. Net sales for the quarter grew 6% (-1% like-for-like) to $1.08bn. For fiscal full-year 2016, net sales fell 1% (on both a reported and like-for-like basis) to

$4.35bn, while net profit was down 33% to $156.9m, impacted by acquisition-related costs. Coty said that the Bourjois acquisition, which closed in April 2015, has reached profitability levels in line with the rest of its color-cosmetics business.

US-based Elizabeth Arden posted a loss of $23.7m for fourth quarter fiscal 2016 compared with a loss of $108.69m in the prior year period. Net sales for the period rose 9.8% (+3.6% on an adjusted basis at constant foreign currency rates) to $192.7m. For the full year, Adren’s net loss came in at $74.4m compared to $246.3m in 2015,

while net sales declined 0.4% (+0.6% on an adjusted basis at constant currency) to $966.7m. Elizabeth Arden is currently being acquired by US-based Revlon and the group said that

the deal is expected to close this year.

Retail

US-based department-store group Macy’s is to close around 100 full-line stores, or around 14% of its 728 locations as it looks to reverse falling sales. The company said the move is intended to enable it to focus on its highest-potential

locations, invest more in digital and mobile and boost profitability. The annual net sales volume of the stores to close is expected to be around $1bn. Most store closures will take place in early 2017. Over the past six years Macy’s has closed around 90 stores and opened 13. The news came as the company reported that net income fell to $11m in the second quarter ended July 30, from $217m a year earlier. This includes charges of $255m, mainly related to the upcoming store closures. Net sales for the period fell 3.9% to $5.87bn. n n n

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z News roundupn n n Swiss travel retailer Dufry has extended its contract for duty-free retail in Melbourne Airport. The partnership extends the existing contract held by Dufry-owned Nuance to 2022. Dufry says the contract is part of its strategy to grow its presence in Australia and expand its footprint across Asia. The current airside duty-free retail operations located in terminal 2 will undergo a revamp

over a 12-month period, with a 30% increase to the retail footprint and a new layout when completed by the first quarter 2017. With 2,743m² (29,525ft²) of retail space in the new departures store and 1,074m² (11,560ft²) of retail space in the new arrivals store, the shops will serve nearly nine million visitors annually.

People

Singapore-based retail and distribution group Luxasia has named Wolfgang Baier ceo. Baier will replace the company’s founder-owner Patrick Chong, who will become chairman. Baier was most recently group ceo at Singapore Post Limited, a position he held for five years. Prior to that, he worked for McKinsey & Company for 10 years in Europe and Asia. Luxasia says the appointment will help the company to build its omni-channel strategy. Luxasia was founded in 1986 by Patrick Chong and manages more than 120 beauty brands in Asia.

Shiseido Americas Corporation has appointed Kathy Cullin general manager Bare Escentuals US, effective August 22. In this newly created position, Cullin reports to Shiseido Americas president and ceo Marc Rey. Her duties include responsibility for the commercial business and customer experience of the BareMinerals and Buxom Beauty brands in the US.Cullin was previously senior vice president,

prestige—Fragrances and philosophy for Coty’s Americas business.

Launches

The Louis Vuitton brand (LVMH) is to unveil its much-awaited new fragrances this fall in the form of Les Parfums, a collection of seven scents. The fragrances, created by Louis Vuitton’s in-house nose Jacques Cavallier Belletrud, are intended to reflect the spirit of travel, according to the brand. The seven women’s eaux de parfum

include Rose des Vents, based on Turkish rose, Bulgarian rose and absolute of Centifolia rose; Turbulences created with tuberose; and Apogée, which uses lily-of-the valley. Designer Marc Newson created the cylindrical bottles, which feature black n n n

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n n n lettering and black caps. The fragrances will be available exclusively at Louis Vuitton stores and pop-up shops at select department stores and come in a 100ml version retailing at €200 and a 200ml version costing €300. The bottles can be refilled at perfume fountains in Louis Vuitton stores. The brand has also come up with a set of miniatures of the seven scents for discovery, a travel bottle and a Monogram case, which can hold three bottles. French actress Léa Seydoux is the face of the scents and will feature in a campaign launching this fall.

Puig has launched a fragrance duo for Prada. La Femme Prada and L’Homme Prada were created by perfumer Daniela Andrier of Givaudan. La Femme Prada comes in an amber glass bottle, while L’Homme Prada’s bottle is gray glass. Both bottles have internal mirrors to reflect light. The scents are supported by an ad campaign based on the idea of the different facets of personality. La Femme Prada retails at €65.64 (35ml EdP), €90.26 (50ml EdP) and €128.21 (100ml EdP). L’Homme Prada retails at €66.67 (50ml EdT), €91.82 (100ml EdT) and €111.79 (150ml EdT). The scents were launched in June in an avant-première at Galeries Lafayette’s Paris flagship store, and in July in the rest of the brand’s doors.

Spanish group Perfumes y Diseño has unveiled the first fragrances from French designer Philippe Starck under a new brand Starck Parfums. The designer’s foray into fragrance is in the form of a collection of three scents called La Collection Peau, and the idea is to convey the blur between the material and immaterial worlds. The three scents are: Peau de Soie by Dominique Ropion (IFF), Peau D’Ailleurs by Annick

Menardo (Firmenich) and Peau de Pierre by Daphné Bugey (Firmenich). Each comes in a square-shaped bottle with a cut-out design. The outer box features the name of the perfumer and each box contains a short leaflet explaining the fragrance concept and information on the creative process of the perfumer. The fragrances will have a limited distribution, focusing on concept stores and key

department stores and will be sold in around 1,000 doors globally. The scents launch in September. The 40ml EdT retails at €85, while the 90ml EdT sells for €125. Perfumes y Diseño signed a fragrance license with Philippe Starck in 2013.

Coty is launching a new men’s fragrance for Roberto Cavalli this fall, which plays on a bohemian rock feel. Called Roberto Cavalli Uomo, the fragrance was composed by Christophe Raynaud of Firmenich. It comes in a black bottle featuring crocodile-skin inspired detail on the sides in a nod to Cavalli’s trademark animal prints. Roberto Cavalli Uomo is supported by print advertising and a film featuring French model Félix Gesnouin as the Cavalli man. The scent launches in September and retails at €60 (60ml EdT) and €82 (100ml EdT).

French brand Courrèges is to come out with a new women’s fragrance this fall called Hyperbole. The fragrance, created by Antoine Lie and Jean Jacques of Takasago, is based on a feminine interpretation of tobacco. The orange-colored juice comes in a glass bottle, whose top is decorated with a large plastic circle. Hyperbole will be supported by point-of-sale activities and an ad campaign featuring a black model on an orange background. Hyperbole launches exclusively on Air France in October before rolling out to the brand’s full distribution. The fragrance retails at €72 (50ml EdP) and €92 (100ml EdP). Courrèges will also launch a 20ml version for €20 to encourage consumers to test the fragrance. n

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

Social media monitor

Bloggers have praised make-up brand Urban Decay’s collaboration with New York tattoo artist Georgia Grey at Bang Bang Tattoos to create a limited-edition watercolor tattoo design for National Lipstick Day. Designed to reflect all the colors of Urban Decay’s new 100-sku Vice lipstick line, the on-trend tattoo launch sits well with the brand’s edgy urban positioning.

In line with the frenzy surrounding the Pokémon Go game, Pokémon make-up has turned into a major trend on social media platforms. Described as decorative and inspiring, vloggers and beauty artists have been the center of attention for their designs, like Poké-Mouth and Poké-Eyes and the make-up looks of popular Pokémon characters.

The next major trend from Asia is the carbonated face treatment, according to some bloggers. The trend involves soaking the face in carbonated water and is said to be effective for cleansing and brightening the skin.

Drinkable beauty is gaining traction in social media circles with bloggers praising launches by innovative brands like Dirty Lemon Water (pictured), Moon Juice and Space NK’s Fountain line.

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Feelunique ceo Joël Palix discusses his plans for expanding the UK-based beauty e-commerce site internationally, and how e-commerce can compete with brick-and-mortar beauty retailers

Online and upwards

You recently received a new round of investment. What are your priorities for development? We are growing close to our target of around 30% per year, with a very balanced performance this year between UK and international. Recently, we have seen our international business strengthen because of the weakening of the pound. As a fast-growing company we require money for our working capital needs. Secondly, technology is a focus. We want to be the world’s best in class as a beauty e-commerce site; it’s the only way to take a sizable market share against brick-and-mortar, which are investing a lot in digital. The only way we can beat them is by being more agile, more innovative and inventing the future of beauty e-commerce. Technology is moving very fast. You need to pick up all the big trends and decide how to apply them to your business. We have invested a lot in personalization and started implementing it on the site.

How do you plan to develop Feelunique internationally? It is a two-stage development. You start by offering a great brand selection and prices to build a customer base, and when you’ve reached a certain level you can set up local operations and begin offering the same quality of services we offer in the UK. We are exactly in this process in France. It’s a question of how we can duplicate the Feelunique concept to another market with stores, a local distribution center, purchasing team, marketing and social media. In China, we decided to go in with a partner because the Chinese internet world is completely different. Our Chinese site is doing extremely well and is already in our top markets after less than a year of operations. More than half of our brands have allowed us to distribute cross-border to China.

You recently acquired perfumeries in France. Why do you need a brick-and-mortar presence?We are an online business, but we recognize that offline can complement our business, not only to meet obligations concerning our distribution agreements, but also to have a point of direct physical contact with our customers. In France, we needed a physical presence in order to have full agreement with the brands for local supply, and also to do a bit of omni-channel strategy. Our Paris stores will be used for click & collect, for example.

Is the China business mainly cross-border? Yes, because you need to play the difference. The giants are plagued with counterfeits and have an image problem of very strong, but indiscriminate promotions. Our customers in China buy cross-border because they want to be absolutely sure it comes from a Western site and that there is no issue with counterfeit products. There are also quite a number n n n

Feelunique ceo Joël Palix

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”Feelunique ceo Joël Palix

Online sales might end up at around 20-25% of the market. Brands are starting to re-arbitrate their investments between brick-and-mortar and online



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of brands that are not allowed to sell to China because they haven’t gone through the specific animal test registration, so doing cross-border with us is a perfect test bed for seeding the brand and getting an initial customer base.

How is your Try Me online sampling proposition performing? We first offered the Try Me sampling program two years ago. The idea was to get around the psychological barrier of buying a beauty product and not being able to return it. We asked the brands for samples of their best sellers or new products and people would have the option of trying the sample, and if they didn’t like it, they could return the full-size product before it had been opened. It’s free for the consumer, and it’s free for us because it’s part of the brand support. It’s working well and the level of returns is very small. Sampling is the golden step in the consumer journey online for beauty. We have recently

launched a new program, called Pick ̀N ̀Mix. It’s very tailored sampling and brands know their sample has been selected among hundreds. We keep very rich data on which sample has been ordered by which customer, and brands love that. Consumers make an informed purchase and if they end up buying the product, we refund the delivery charge so for the consumer it’s almost free.

Do you need this to overcome brands’ reluctance to sell on sites like yours?Two or three years ago I would have said yes, but really, I can’t find any more brands in the UK saying they are reluctant to go online. Online is more than 10% of the market and represents half of market growth.

How do you see online sales impacting brick-and-mortar? Online sales might end up at around 20-25% of the market. Brands are starting to re-arbitrate their investments between brick-and-mortar and online. Perhaps they will have fewer, but bigger stores where entertainment and services are offered. It’s a race as online can also do unique features.

Why do beauty consumers go online?There are three types of shoppers: the bargain hunter, the convenience shopper which works well for replenishment products, and then you have what I call the ‘beauty star’, who is very digital, very knowledgeable and buys new products online. A great proportion of our customers buy new products that have just been released. We try to be competitive on price, but we are not positioned as the cheapest because you can always find a site that is cheaper. In convenience, we are the best because we have an incredible selection of brands, we deliver very fast and we have a call center that is open seven days a week. The features on the site make navigation quick and easy and we have a lot of hip, cool digital brands; we are very strong in social media.

How do you see the development of social commerce?We have done some tests of paid advertising with Facebook that seem to work, and we are in contact with Instagram to try to do that as well. Social media selling can lead to shopping; however, I think there is a limit. If social media platforms become too commercialized, they are doomed. Social platforms will need to be quite delicate in how they do it—consumers are looking for an objective space. n

“

”Feelunique ceo Joël Palix

There are three types of shoppers: the bargain hunter, the convenience shopper which works well for replenishment products, and then you have what I call the ‘beauty star’, who is very digital, very knowledgeable and buys new products online

s Feelunique sees its Try Me and Pick ‘N’ Mix sampling programs as key to boosting sales online

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US-based department-store group Macy’s dropped a bombshell in August when it announced that it would close 100 stores in a bid to reverse falling sales. The

dramatic move illustrates the extent of Macy’s problems and the tough situation of the department-store sector in the US in general. It shows desperate times call for desperate measures. However, the bold step indicates that Macy’s recognizes its weakness and is prepared to act, and the announcement of stores closures was applauded by analysts and shareholders—the retailer’s share price surged 17% on August 11. Macy’s decision may also see other department stores follow suit. Macy’s performance has been poor for some time—the company has reported six

consecutive quarters of falling sales. But it is not alone. Other US department stores have also seen disappointing sales. Nordstrom for example, saw a 64% fall in first-quarter net profit. Although in the second quarter of this year it performed better, due in large part to a major anniversary sale. For the second quarter, Nordstrom also pointed out that beauty and shoes were two top-performing categories.

The Amazon effectSo what is the problem? Analysts say that the US department-store sector is over-stored and that the the only way that department stores can get back to the productivity levels they had 10 years ago is to close doors on a large scale. The problem of too many stores is largely due to shifting consumer shopping habits and the rise of internet sales—with e-commerce growing there is simply not a need for as many stores as in the past. Indeed, many have pointed to the Amazon effect on US department stores. Earlier this year, Nordstrom said that Amazon had a lot to do with the disappointing performance of its brick-and-mortar stores. But e-commerce’s march is not likely to slow down. Morgan Stanley recently released a report stating that Amazon will account for 19% of US apparel sales (a core category for department stores) by 2020, up from 6.7% last year, and that more consumers will begin to buy high-end fashion from the online giant. When it comes to beauty, e-commerce in the US is estimated to account for between 6-9% of the total market and is seeing a growth rate of around 12-19% per year, according to analysts. This is while brick-and-mortar is limping along with 1-2% growth. In light of this, Macy’s said that part of the reason for its store cuts is to be able to invest more in digital. Another issue linked to the n n n

An analysis of how department stores in the US are performing



Tough times continue

US department stores

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”Urban Decay ceo Tim Warner

Department stores still command more than 43% of the prestige beauty market in the US—you can’t dismiss them

s Macy’s is introducing Bluemercury shop-in-shops to its stores. A total of 22 are expected to be in place by the fourth quarter


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n n n problem of too many stores is the difficulty of introducing tailored products and services to more than 800 stores nationwide (as in the case of Macy’s for example). “Macy’s management needs to think about beauty less as ‘one-size-fits-all’ and more like a multi-tiered specialty retailer that can offer customized shopper segments (regional, demographics, categories) that brands, big and small, can buy into and support,” says Wendy Liebmann ceo at retail consultancy WSL. “Think of it more like using Amazon algorithms to match the right brands to the right segments. Macy’s has already invested in some of this big data analytics work, but it’s certainly not showing in its beauty offer around the country. This type of segmentation should more effectively drive a more targeted merchandise offer and marketing support for beauty. It’s complicated and challenging, but it’s now essential to succeed in today’s very fragmented retail world for beauty or anything else.”

The specialty assaultWhile department stores have come up against increased competition from online, they are also facing an assault from the specialty-store sector. Specialty stores, mainly Sephora and Ulta Beauty, are going from strength to strength in the US. Sephora has seen much success with its quirky assortment of brands and exclusives, roster of in-store services, its focus on trialing and playing with product and its digital prowess. Similarly, Ulta Beauty is focusing on newness of offer, expanding its store footprint and boosting services. All this has seen consumers, especially young ones, migrate from department stores to specialty.Department stores have been making efforts to win back these consumers with

specialty-like concepts. Macy’s for example, acquired the Bluemercury specialty beauty chain in 2015 and is introducing it in a shop-in-shop format in its stores while beefing up its digital offer. There are around five Bluemercury shop-in-shops and a total of 22 are expected to be in place by the fourth quarter of this year. Macy’s also introduced Impulse Beauty in 2010, which was designed to showcase niche brands and give the beauty space a more open-sell feel. In an effort to win over millennials, last year

Macy’s launched One Below. The 53,000ft2 (4,924m2) space in the basement of its Herald Square New York flagship features a blowout bar, brow bar and selfies concept. However, analysts said it has not lived up to expectations and that it comes off as a clunky add on. “It feels like [Macy’s] continues to innovate more in beauty by taking the original blueprint that department stores have had for a long time and just adding either glitz or separating out any of the more open-sell democratic shopper experience. It feels sort of bolted on as opposed to being a seamless experience,” says Liebmann. Nordstrom meanwhile, has been focusing on

hosting beauty events in an effort to draw consumers. During its annual anniversary n n n

“

”WSL ceo Wendy Liebmann

Macy’s management needs to think about beauty less as ‘one-size-fits-all’ and more like a multi-tiered specialty retailer that can offer customized shopper segments (regional, demographics, categories) that brands, big and small, can buy into and support

s Impulse Beauty at Macy’s is designed to showcase niche brands and give the beauty space a more open-sell feel


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n n n sale, it hosted Beauty Glam-Out in which consumers were offered access to free samples, gifts, expert tips and how-to demos with brands. During this time, the company also ran its one-day Anniversary Beauty Bash with free goodies, makeovers, expert tips and exclusive products.Another issue that department stores have had to contend with is the growing

economic divide between the middle and upper classes. This is causing identity issues within certain department stores, say industry watchers. “Nordstrom has fallen into that. It is asking: ‘Are we an upscale retailer or are we sort of middle class?’ Retailers are struggling to figure that out,” says one analyst, who believes the situation is similar at Macy’s and Bloomingdale’s. The shifting middle class is also seeing the erosion of what experts used to call “aspirational shoppers,” within the upper end of the middle class. “It was the aspirational middle class that kept the Neiman Marcuses of the world moving forward—but that group isn’t happening anymore,” says the analyst. “They don’t have the income to spend at Neiman Marcus.” But however grim the outlook is, there is still much value in the department-store

channel. “Department stores still command more than 43% of the prestige beauty market in the US—you can’t dismiss them,” says Tim Warner, ceo of Urban Decay. Indeed, these stores cannot be written off, especially if more begin to truly adapt to how consumers are now shopping, which it looks like Macy’s is beginning to do. n

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Sustainability was the key theme at this year’s World Perfumery Congress, the biennial fragrance forum for fragrance suppliers. Discussion centered on the use of

fossil fuels, the overall impact of the industry on the environment and green chemistry. Achim Daub, global president scent & care, executive board of German fragrance house Symrise summed up the three key trends in this area as sustainability, transparency and traceability. Etienne Bouckaert, a perfumer at Firmenich, said that sustainability is about finding “a balance between the need for chemistry and reducing byproducts as much as possible, while using as little energy as possible.” Sustainability, however, presents a host of challenges, including finding stable sources of

supply. Direct sourcing and investing in new countries for sustainable sourcing are helping to solve this issue. But sustainability of natural resources remains a big challenge. “For too many years it was thought that the solution could be found in international mega projects, which garner much visibility but have a low impact,” says Iberchem ceo Ramon Fernandez. “Hopefully, producing countries have realized how important it is to promote and support a specialized local production that is responsible for its environment.”

Customizing scentsAside from sustainability, another big talking point at the event was the consumer desire for unique fragrances and customized scents. Industry players said that consumers are looking for more information about the ingredients in their fragrances and that rather than looking to wear a brand, they want to wear a fragrance that is unique and that others are not wearing. “People want creativity and they want to feel a sense of uniqueness,” says Chris Pickthall ceo of CPL Aromas. “We want to buy something that feels a bit special to us, almost like it’s made for me.” Laurent Le Guernec, senior perfumer at IFF, and Iain Stevenson, prestige fragrance design leader at Procter & Gamble, explained that to make a fragrance that stands out there is a need to better understand consumers. They added that the future of the market rests on the industry coming out with better quality in terms of the juice and the stories behind the scents. The push for uniqueness and creativity is spurring the development of the niche

market, which was another key area of discussion at the event. “Consumers are more knowledgeable than they used to be, so they are focusing on what they want versus what the big marketing groups want to push on them,” says Firmenich’s Bouckaert. Pickthall agrees: “Given the way the fine fragrance market has developed in the past few years, many consumers are sick and tired of the many, many launches from the big fragrance companies, and that’s why so many niche brands have sprung up, evolved and prospered,” He continues: “It’s interesting to see a lot of those niche brands are being bought by the bigger brands.” n

BW Confidential reports on the World Perfumery Congress, which took place from June 13-15 in Miami Beach, Florida, US

Green shoots

World Perfumery Congress

“

”CPL Aromas ceo Chris Pickthall

People want creativity and they want to feel a sense of uniqueness. We want to buy something that feels a bit special to us, almost like it’s made for me

SEPTEMBER 21 . 22 . 23, 2016GRIMALDI FORUM, MONACONew York . Monaco . Shanghai www.luxepack.comTh

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Kiko, Bergamo l Opened: June

l Location: Bergamo, Italy l Size: 150m2 (1,615ft2)

l Special features: iPads with an app that

suggests personalized product selections; social area; focus on sustainability with features such

as LED lighting

Italian cosmetics brand Kiko Milano opened a new store focused on smart technology, community and sustainability in June. The new 150m2 (1,615ft2)

store is located at the Oriocenter shopping mall in Italy’s Bergamo province.The store is equipped with iPads fitted with an app that suggests products best

suited to the consumer’s needs and creates different types of make-up looks. There is also what the company calls a social area, where consumers can share views on color cosmetics and make-up looks.Kiko teamed up with Japanese architect Kengo Kuma for the design. A key

element of the design was the need for a large, open space. This is emphasized by the predominantly white décor, which helps highlight the brand’s color offer. The KK monogram is featured on the wall, and the word IRO, Japanese for color, sensuality, beauty and love, adorns a column.The Oriocenter store is designed to be sustainable and is LEED certified. It

features high-efficiency heat pump air-conditioning units, and 100% LED lighting, according to the brand. The majority of the finishes and furnishings are sourced from local companies, with the aim of reducing fuel consumption. The store also offers incentives to employees who use means of transport other than their own cars. n

Kiko looks to technology and sustainability for its new store

Smart selling





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s The store’s white décor is intended to highlight the brand’s color offer

s The store is equipped with iPads fitted with an app that suggests products best suited to the consumer’s needs, and creates different types of make-up looks

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