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BW Confidential - Beauty Market Outlook

BW Confidential - Beauty Market Outlook -...

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September 2-15, 2010 #21 www.bwconfidential.com I f the industry needed any more proof that retail models are changing and consumers are buying differently, it only needs to look at the launch of the new Mary J Blige fragrance. US company Carol’s Daughter, which developed the scent, took the brave step of launching the fragrance exclusively on TV shopping channel HSN, and so without the US’s traditional launch-pad, the department store. The company can’t be disappointed with the results: in just six hours of airtime the fragrance had sold 60,000 units and broken HSN records for fragrance volume sales. Brands looking beyond traditional distribution is nothing new, but what is inter- esting is how successful new channels are becoming. Alternatives in the US, such as Sephora and Ulta, may not have the same footprint as department stores, but they are increasingly popular, and their websites are attracting more consumers who may not have a brick-and-mortar version nearby. As for TV shopping, it also has broad reach, provides brand awareness and is considered a lot more cost-efficient than the department store. One brand manager recently told BW Confidential that companies can simply no longer afford to pay for staff at department stores and all the other extras they ask for. And perhaps more worrying for the department store is that brands are now less afraid of upsetting these retailers by dabbling in other types of distribution. Comment The inside view on the beauty and wellness industry CONFIDENTIAL Changing channels Oonagh Phillips Editor in Chief [email protected] The buzz 2 The essential news roundup The retail view 4 Wellness focus 4 Netwatch 5 The beauty blog review Interview 6 Clinique vp & gm Europe, ME & Africa Jean-Christophe Jourde Beauty insight 8 Market outlook Store visit 11 House of Fraser’s Apothecary Inside Subscribe on p.13 or go to www.bwconfidential.com
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CONFIDENTIAL www.bwconfidential.com - September 2-15, 2010 #21 - Page 2 The buzz News roundup Consumer-goods group Dabur India has acquired Turkish personal-care company Hobi Kozmetik Group for $69m. The acquisition is part of Dabur’s strategy to expand in the consu- mer-goods industry and deve- lop its presence in the Middle East and Africa. Hobi Kozmetik markets the Hobby and New Era brands in 35 countries. Authorities in Iran closed Swe- dish direct seller Oriflame’s operations in the country. Iran makes up around 20% of Oriflame’s sales in Asia. It ex- pects operating margin now to be around 12% instead of the more that 12% announced. The definitive closure may lead to extraordinary costs of €10m. Japanese company Pola is to sell its products in India fol- lowing a deal with Indian group Elder Health Care. Elder will initially sell Pola’s whitening products before expanding to other categories. The pro- ducts will be sold in retail and through dermatologist offices.
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