BW Confidential - Issue #6 - May/June 2011 - (Page 8)

Update News recap In brief Hermès to sell Gaultier stake French luxury-goods company Hermès says it is in discussions to sell its 45% stake in fashion brand Jean Paul Gaultier. Industry sources say that Spanish company Puig could be interested in the stake. It’s also thought that Shiseido has entered the fray to acquire the stake to protect its fragrance license for Jean Paul Gaultier, which is held by its French subsidiary BPI. Shiseido has reportedly teamed up with Chinese group Fung Captial to buy the stake. Colgate buys Sanex Unilever is to sell shower gel and deodorant brand Sanex to Colgate-Palmolive for €672m. With the purchase, Colgate hopes to expand its personal-care business in Western Europe. Sanex reported net sales of €187m in 2010, mainly in Western Europe. Sanex was part of Unilever’s acquisition of Sara Lee, and the group was required to divest the brand in line with EU anti-competition regulations. It’s thought that P&G and Beiersdorf were also interested in taking over Sanex. BDF pulls make-up in France Beiersdorf is to pull its Nivea brand out of the make-up market in France. The move follows the announcement at the end of 2010 that the group would stop marketing color cosmetics for Nivea in Germany to focus on skincare and let its subsidiaries decide whether to continue with the line in their own markets. Beiersdorf also announced that it planned to invest a ”high-double-digit million” amount in the Nivea brand this year. 8 Strategy Shiseido focuses on megabrands, China and web Shiseido has unveiled a three-year plan with an emphasis on building global megabrands, developing emerging Asian markets, especially China and better exploiting the internet. As part of the plan, the group wants to build global brands with sales of more than ¥50bn to ¥100bn ($600m-$1.2bn). In prestige, this means: upgrading the Shiseido brand; building recognition for Clé de Peau Beauté in Asia and North America and expanding Bare Escentuals in the US, Europe and Asia. In masstige, the emphasis will be on expanding the Za brand and the new Senka skincare line in Asia, particularly in China. In China the group will also focus on the Aupres and Urara brands, which are sold only in this market, while expansion in the rest of Asia will center on Taiwan, Korea and Thailand. Another focus will be on improving direct marketing, especially online. Shiseido will launch e-commerce in the US and China and introduce a new site in Japan, which will offer cosmetics and non-beauty products. The site, called Beauty Platform is described as a virtual mall, which invites companies, including non-cosmetics businesses, to open shops on it. Shiseido says its customer organization, the Camellia Club has 5.58 million members and that by targeting consumers who visit other stores it could increase its customer base by three to four times. In brief Revlon acquires Mirage Revlon has acquired US-based Mirage Cosmetics Inc, owner of mass nailcare brand Sinful Colors. ELC takes on Zegna license Estée Lauder Companies (ELC) is to take on the fragrance and grooming license for Italian men’s fashion brand Ermenegildo Zegna in July. The license is held by L’Oréal, which it acquired as part of YSL Beauté. The license with L’Oréal was due to run until April 2013, but will be terminated in June this year. ELC is to expand Zegna in new markets and add a grooming range. Inter Parfums’ new license Inter Parfums Inc has signed a beauty license with US-based Charming Shoppes for its plussize apparel brand and retailer Lane Bryant. The company will launch a line of bath and body products under Lane Bryant’s Cacique brand. The offer will debut with a lip gloss range in 150 Lane Bryant stores in spring; a chain-wide roll out is slated for 2012. It will also launch bodycare and a fine fragrance for the holiday season this year. Marionnaud’s loyalty card AS Watson-owned perfumery chain Marionnaud has launched a new loyalty program targeting its best customers. Called M Prestige, the card is aimed at the chain’s 255,000 customers who spend more than €600 in its stores per year. The card offers invitations to beauty workshops, previews and parties, free gifts from partner brands in the program and free shipping for purchases on the retailer’s website, as well as regular discounts. Marionnaud launched its first loyalty program in 1990. May-June 2011 - N°6 - BW Confidential Walgreens snaps up Drugstore.com In a bid to reinforce its e-commerce business, US drugstore chain Walgreens is to acquire online retailer Drugstore.com for $409m. Drugstore.com, founded in 1999, also owns Beauty.com and Skinstore. com and is thought to be the third largest online health and beauty retailer in the US. It had sales of $456m in 2010, up 24% from 2009, but hasn’t reported a profit since it launched. The deal will give Walgreens access to Drugstore.com’s three million online customers and will see it add more than 60,000 new products to its portfolio. Walgreens, which operates 7,689 stores across the US and does $67bn in sales, acquired New York-based drugstore Duane Reade in April 2010. This latest acquisition may see other brickand mortar retailers look to purchase online health or beauty pure-plays, especially now that many online companies such as Amazon (which snapped up Soap.com and BeautyBar.com in 2010) or Zappos are expanding their portfolios beyond their core business to new categories, including beauty. n http://www.Drugstore.com http://www.Drugstore.com http://www.Drugstore.com http://www.Beauty.com http://www.Soap.com http://www.BeautyBar.com

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