BW Confidential - Issue #10 - May/June 2012 - (Page 5)

Comment 4 avenue de la Marne 92600 Asnières sur Seine France Tel: +33 (0)1 74 63 49 60 Fax: +33 (0)1 53 01 09 79 contact@bwconfidential.com www.bwconfidential.com Subscribe on page 77 Publisher Nicolas Grob Editorial Director Oonagh Phillips ophillips@bwconfidential.com Deputy Editor Alissa Demorest ademorest@bwconfidential.com Travel Retail Editor Kevin Rozario Contributors Tina Clark, Louise Dury, Claire Duffy, Laëtitia Bonnet-Mundschau, Alex Wynne, Renata Ashcar, Raphaëlle Choël Art Direction APSC Design Cover art direction: Kaïs Brahmi Marketing Director Nicolas Leclerc nleclerc@bwconfidential.com Subscriptions 1 year: €499/US$699 Price per issue: €125/US$175 subscribe@bwconfidential.com BW Confidential is published by Noon Media 513 746 297 RCS Paris Printed in France by Imprimerie de Champagne Copyright © 2012 All rights reserved. Reproduction in whole or in part without permission is strictly prohibited. Cover image credit: istock Emerging growth t’s no secret that beauty companies are looking more to emerging markets for growth. But while talking up the growth, they often play down the fact that doing business in these countries is not easy. If anything it may be becoming more difficult, and it is definitely getting more expensive, especially in places like China. As our market report on China in this issue shows, increased competition is pushing up advertising and promotional costs, while rising inflation means higher salaries for staff. Some analysts have gone so far as to say that it is becoming just too expensive for companies that didn’t move into China early on, to get a good foothold there now. And as for Brazil, they adds that unless there is a major change in the tax system, the price of imported brands will remain too high and local companies will continue to dominate. All this may mean that beauty groups who have not yet properly attacked these markets, but want to be there in a big way will be forced to acquire other companies—in short, they will have to buy their emerging market growth. This was one reason Coty made a bid for Avon. Coty has largely been seen as missing the boat when it comes to emerging markets. It claims to do 26% of sales in these markets, compared with 68% for Avon, and a deal would mean Coty would be able to peddle its brands through the direct seller’s door-to-door network in places like Brazil. On a smaller scale, it was thought that Coty was also interested in acquiring Brazilian direct seller Jequiti, which is said to be looking for a buyer. As emerging markets continue to post good growth, more acquisitions of companies strong in these countries may be around the corner. And for those brands unable to pull off such a deal, but who still want to get a piece of emerging-market growth, they can always do more to tailor their products sold in the US or Europe to Chinese tastes. After all, the high-spending Chinese traveler is still buying more luxury products abroad than at home. I BW Confidential est édité par Noon Media SARL 4 avenue de la Marne 92600 Asnières sur Seine Directeur de la publication : Oonagh Phillips Imprimeur : Imprimerie de Champagne ZI Les Franchises 52200 Langres ISSN 2109-3350 Abonnement annuel (4 n°) : 499 € / 699 US$ Prix de vente au numéro : 125 € / 175 US$ Dépôt légal à parution BW Confidential magazine n°10 mai-juin 2012 n° CPPAP 0512 T 90373 Oonagh Phillips Editor in Chief ophillips@bwconfidential.com May-June 2012 - N°10 - BW Confidential 5 http://www.bwconfidential.com http://www.bwconfidential.com

Table of Contents for the Digital Edition of BW Confidential - Issue #10 - May/June 2012

Cover
Comment
Contents
Update
- Brand & retail news recap
- 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 Clinique global brand president Lynne Greene
Insight: Skincare
- Category overview
- Retail technology
- Retail viewpoint
- The latest trends
Wellness
- Spas & healthcare
- Spa case studies
Retail
- Inspiration from Apple
- Store concepts
Market watch: China
- Country overview
- Industry viewpoint
- Prestige retailing
- Taobao & the internet
Digital focus Social media strategies
Strategy spotlight Case studies to inspire
Travel retail: Asia Pacific
- Regional overview
- India
- Interview: Delhi Duty Free Services coo Arun Barathi
Radar Six up-and-coming beauty brands
Packaging
- Make-up packs
- Innovation showcase
Last word Metis Insights director Stéphanie Morou

BW Confidential - Issue #10 - May/June 2012