BW Confidential - Issue #6 - May/June 2011 - (Page 32)

Insight: Skincare Perfumeries Back to basics Perfumery retailers are making moves to bring the skincare consumer back, but more work needs to be done by Alissa Demorest E uropean perfumeries have been losing share of the skincare market to the pharmacy channel for several years, a trend that many attribute to poor merchandising of the category. Brands say skincare has become the “forgotten” or “left behind” beauty category for perfumeries, as it is often hidden away at the back of the shop and is backed by little in-store support and events, especially when compared to categories such as make-up. Research by Estée Lauder-owned brand Clinique found that out of 100 people entering a perfumery, only nine buy skincare because it is at the back of the store, and that around 7% of consumers don’t know that skincare is sold in perfumeries. “Skincare is as important as make-up, but doesn’t get as much prominence [in European perfumeries] and this is opening the category to other channels, such as pharmacies to make inroads,” comments NPD senior global industry analyst and vp for beauty Karen Grant. (See box). Boosting visibility Manufacturers believe the first issue that needs to be addressed is the layout of the skincare section. Experts say the category needs to be more visible, and that retailers should do more to emphasize the different types of products in terms of skincare needs or price points. Some suggest the creation of branded areas or corners with a dedicated beauty advisor for the brand, whose cost would be shared by both the brand and the retailer. This mini department store-like layout would no doubt boost sales of key brands. “In perfumeries our market share is between 25 to 50% lower than in department stores, where every brand has equivalent space and we have our own sales staff,” comments prestige brand Sisley general manager Philippe d’Ornano. There have also been calls for more streamlined assortment: fewer brands and skus would de-clutter the category and help make “ Perfumeries need to premiumize their relationship with the consumer because they are losing them if not in terms of volume sales, then in terms of the relationship Vaudoo new business manager Antoine Jacquet key lines stand out. Tests at some independent perfumeries in Europe showed sales increases when they put a clear focus on selling just 12 to 15 brands rather than offer 60 or more skincare lines. Servicing skin In terms of assortment, retailers have also added more skincare skus to their own privatelabel offers in a bid to bring more accessible prices to the category, which can perhaps better compete with a cheaper pharmacy offer, as well as woo younger consumers. This reasoning has not however, gone done well with most of the prestige brands. Skincare is a category that requires a high level of service, which many would like to see improved in perfumeries. Analysts add that if May-June 2011 - N°6 - BW Confidential ” s Industry experts say that store layout is key to boosting skincare sales. Marionnaud (above) is making the category a priority at its stores 32

Table of Contents for the Digital Edition of BW Confidential - Issue #6 - May/June 2011

Cover
Comment
Contents
Update
- Brand & retail news recap
- Digital digest
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
Launches
- The latest in fragrance, skincare & make-up
Interview
- Puig ceo Marc Puig
Insight: Skincare
- Category overview
- Department store initiatives
- Perfumeries
- The latest trends
Wellness
- Discounting in spas
- Spa case studies
Retail
- New store concepts
Travel retail
- Market analysis: Asia & Middle East
- Chinese travelers
Radar
- Four up-and-coming beauty brands
Market watch: China
- Analysis: country overview
- Industry roundtable
- Prestige retailing
- E-commerce
Packaging
- Decoration techniques
Last word
- LPK Beauty vp group creative director Liz Grubow

BW Confidential - Issue #6 - May/June 2011