DENISE FIGUEIREDO
President of Natura France
Paris
“A year and a half after entering the French market, we have broadened our business model here,” said Figueiredo, adding Natura established a directsales network of 60 consultants France-wide. “Now, with the Internet and the Maison Natura [store] in Paris, we have three sales channels in the country. The French market is hugely important. It’s the heart of the cosmetics industry and vital for our international expansion. The big challenge in 2007 will be to prove our new business model can work here. Then, we can export the same model to the U.K., the U.S. and Russia.”
WERNER HARIEGEL
Director of the German Perfumery Association
Recklinghausen, Germany
“The market is marked by over-capacity in terms of brands, products, as well as retail space. There are too many “me too” products and perfumeries. Consumers are favoring products and perfumeries with clear, original qualities. Copies are being sorted out of the market,” said Hariegel, explaining he expects the trend to continue in 2007. Hariegel added he thinks the “luxury” trend has hit its high point. “Prices have, in general, reached a level that the majority of consumers no longer accept,” he said.
ALEXIS KRYCEVE
Managing Director of Alter Eco
Paris
“It’s very interesting for us to see how strongly the trends toward natural, ethical and organic products are developing in the cosmetics industry. The fact that L’Oréal bought The Body Shop and such a small business as Sanofl ore [both in 2006] is really symptomatic. In the coming years, this trend should get even bigger, as many players in the beauty business are working on more environmental and ethical product ranges. Taking care of oneself can now be achieved by also taking care of small producers and future generations.”
REINER METZ
Co-director heading up strategy and finance for Beauty Alliance perfumery group
Bielefeld, Germany
Metz said the 940-door Beauty Alliance “can’t complain” about business in 2006. At the end of October, its sales were up 3.5%, and the group expects to end the year with a gain of 2.5% to 3%. Next year, however, should be another story. Due to the rise in value-added tax in Germany, to 19% from 16%, Metz said Beauty Alliance expects stagnation in the first half of 2007 and possible growth in the second half. “But we expect a fl at year,” he said. “Even if suppliers planned zero growth for the year—which none of them does—that would still mean we have to sell 3% more in order to reach the prior year’s levels.”
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PIETER NOTA
Beiersdorf board member in charge of its consumer division
Hamburg
Nota said the German market seems to have overcome its weakness. The company expects to close 2006 with 6% sales growth and, while he wouldn’t be specifi c, Nota said the 2007 sales gain should be higher. Thanks to the strength of its day spa in central Hamburg, called Nivea Haus (which welcomes 750 people—threetimes more than expected—daily), the company is considering ways to expand its day-spa services. Nota cited anti-aging face care as a particularly promising, not only in creams but also moving toward pharmaceuticals. Men’s facial care and emerging body-care segments, such as anti-cellulite, are also growth categories.
FABIEN PETITCOLIN
Beauty buyer of Printemps flagship department store
Paris
“Our organic skin-care sales increased the most over the last year,” said Petitcolin, explaining they doubled in 2006 over 2005. “A category that was less positive was fragrance. Niche brands, such as Annick Goutal and Serge Lutens, were very successful. However, traditional brands were a bit disappointing, despite some high-profile launches. In 2007, we will continue to develop the organic category and hair care, as well as “rare” scents. Consumers are going to keep demanding more quality and originality in fragrances. In skin care, they will continue expecting high-performing products, such as anti-wrinkle and anti-aging, as well as organic.”
ALEXANDRA RICHMOND
Beauty market specialist of Mintel International
London
Richmond pointed to L’Oréal’s acquisitions of The Body Shop and French organic cosmetics maker Sanofl ore as major events in 2006. “If the number-one manufacturer of beauty products is investing heavily in natural and organic, then this is a trend that we can expect to see permeate the mass market through 2007,” she said. “This is a movement that has been established throughout 2006, with one in fi ve U.K. cosmetics and toiletries launches boasting botanical and herbal-product claims. Skin care was also a key category for innovation, accounting for one in four of all new product launches in 2006.”
FLORENCE ROLLET
Managing Director of Coty Beauty France
Paris
On the upside, Rollet highlighted “strong innovation and creativity from all beauty suppliers” in 2006. On the downside, she mentioned the fl at prestige fragrance market. “Even though suppliers are eager to make that market grow, the prestige beauty market—and particularly the eau de toilette category—is nearly flat in volume and value,” she said. Rollet pointed to the senior and youth demographics as particularly promising for the year to come.
SARA STRAND
Co-founder of Pixi color cosmetics brand
London
“Following the terrorist scare [in August 2006], everything did seem to go into decline for a few months. People seemed worried. But then, they went back to their lives and back to everyday [business]. People tend to turn to makeup when they feel down. It’s always been that way; it’s like chocolate. I feel like people are back in the center of town now. People are more and more aware of the ingredients in products.” It’s a trend she believes will continue into 2007.
GEORGE WALLACE
Chief executive officer of Management Horizons Europe retail consultancy
London
“One of the biggest topics of 2006 was the value sector and how it’s almost become the new mainstream,” said Wallace, adding the trend should pick up steam in the beauty arena, as supermarkets and drugstores improve their private label collections. He pointed to Superdrug’s recent launch of the 2True beauty line, whose products range from £2 (?2.90/$3.80) to £5. “One subject that has shot to the top of the agenda is the issue of ethical consumption and the environment,” said Wallace. “There’s more of a focus on pure natural ingredients in affordable products. There’s also a coming of age of on-line retailing.”
Also by Melissa Drier