Editor's Letter: Boom Times in Beauty - Beauty Inc. (11/09/12)
1
hen Leonard Lauder created his famous term, the Lipstick Index, to illustrate the resilience of beauty during times of recession, it’s safe to say he probably wasn’t referring to $48 lipsticks. Thus far this year, though, Tom Ford Beauty is doing a brisk business in lipsticks costing just that. Meanwhile, sales of luxury skin care brands like La Mer, La Prairie and Chantecaille are soaring, while fragrances priced $100 and over are up 48 percent year to date. Indeed, the upper end of the beauty market is booming, and the positive impact is cascading across the entire prestige market. As Karen Grant, global industry analyst of The NPD Group, which provided these figures, says, “The higher end is the engine that is igniting the category, and is part of the reason we are seeing such strong growth.” Discover how the consumption habits of the affluent shopper have evolved in the last 12 months and how they’re impacting the overall market in “Indulge Me” on page 20. One key evolution has been the demand for great service, among both the affluent and the aspirationals, a fact not lost on our cover subject, Lauren Remington Platt. A fixture of the New York social scene and descendant of the founder of Remington Arms Company, Platt is redefining the door-to-door concept with Vensêtte, which provides hair, makeup and manicures in the privacy of one’s own home. The 20-month-old company is booming, and Platt is now looking to expand her domain geographically and digitally. WWD’s European beauty editor Jennifer Weil reports on Platt’s growth strategy in “At Your Service” on page 22. There’s a retail boom going on up North, too, in Canada, to be exact, where an influx of stylish fashion and beauty retailers are setting up shop. Sephora, J. Crew Anthropologie, Nordstrom and Target are among those drafting expansion plans for the country, which has a relatively low barrier to entry compared to many emerging markets. But as WSL’s Wendy Liebmann tells beauty financial editor Molly Prior, “Canada is a country that at first glance looks familiar, but there are a lot of differences.” Find out the key issues in “Red Hot Canada” on page 30. No doubt Karen Buglisi, the global brand president of MAC Cosmetics and the subject of this month’s Master Class profile, would have some sage advice for those looking to expand in Canada. Buglisi is one of the key players in MAC’s ascendancy as the number-one color cosmetics brand in the prestige market, and as WWD’s executive editor Pete Born discovers, one who pours her heart and soul (as well as considerable brain power) into growing its business worldwide. Right now, Buglisi and her team are focused on Brazil, a country she calls the brand’s China. MAC is in full expansion mode there, exporting its innovative vision and theatricality to a beauty-hungry consumer group. One key initiative is the opening of flagships, both in Brazil and around the world. It’s an audacious goal, and one that epitomizes MAC’s strategy. Says Buglisi, “We take 100 percent responsibility for entertaining the consumer...It’s the way we bring the brand to life.” —JENNY B. FINE 4 WWD BEAUTY INC EDITOR’S LETTER EDWARD NARDOZA EDITOR IN CHIEF, WWD PETE BORN EXECUTIVE EDITOR, BEAUTY JENNY B. FINE EDITOR JENNIFER WEIL EUROPEAN EDITOR JULIE NAUGHTON SENIOR PRESTIGE MARKET BEAUTY EDITOR MOLLY PRIOR BEAUTY FINANCIAL EDITOR FAYE BROOKMAN CONTRIBUTING EDITOR BELISA SILVA BEAUTY MARKET EDITOR, MASS JAYME CYK EDITORIAL ASSISTANT KATIE KRETSCHMER COPY EDITOR ART BARBARA SULLIVAN ART DIRECTOR CONTRIBUTORS SAMANTHA CONTI AND NINA JONES (London), MILES SOCHA (Paris), CYNTHIA MARTENS (Milan), MARCY MEDINA AND RACHEL BROWN (Los Angeles), MELISSA DRIER AND SUSAN STONE (Berlin), AMANDA KAISER (Tokyo) PHOTO CARRIE PROVENZANO PHOTO EDITOR LEXIE MORELAND ASSOCIATE PHOTO EDITOR JENNA GREENE ASSISTANT PHOTO EDITOR ERIN FITZGERALD STUDIO MANAGER EILEEN TSUJI PHOTO COORDINATOR ROBERT COHEN PHOTO FACILITATOR JOHN AQUINO, GEORGE CHINSEE, STEVE EICHNER, KYLE ERICKSEN, THOMAS IANNACCONE, ROBERT MITRA PHOTOGRAPHERS CONTRIBUTING PHOTOGRAPHERS RUVEN AFANADOR, KENJI AOKI, DAN BORRIS, NIGEL DICKSON, BEN HASSETT, HENRY LEUTWYLER, MARK HANAUER, MICHAEL NAGLE, JEFF RIEDEL, PHILIPPE SALOMON, DAVID LEWIS TAYLOR, YASU+JUNKO BEAUTY INC ADVERTISING PAUL JOWDY VICE PRESIDENT, PUBLISHER, WWD JILL BIREN WEST COAST DIRECTOR COURTNEY HAZIRJIAN WEST COAST ACCOUNT MANAGER ODILE EDA-PIERRE ACCOUNT MANAGER, PARIS CHRISTOPHER SANTORELLA BEAUTY SALES ASSISTANT MARKETING/CREATIVE SERVICES JANET MENAKER EXECUTIVE DIRECTOR, MARKETING EMILY CORTEZ DIRECTOR, CREATIVE SERVICES KRISTEN M. WILDMAN EXECUTIVE DIRECTOR, EVENT MARKETING MARJORIE KEATING PUBLIC RELATIONS DIRECTOR DANIELLE MCMURRAY DIRECTOR, INTEGRATED MARKETING AND SPECIAL PROJECTS JENNIFER PINCUS DIRECTOR, INTEGRATED MARKETING FABIO SALLES CREATIVE DIRECTOR JULIA DONAHUE COPY DIRECTOR ALEXIS WARCHALOWSKI DIRECTOR, DIGITAL DEVELOPMENT BRIANNA LIPOVSKY ASSOCIATE MARKETING DIRECTOR JENNIFER BORCK SENIOR MANAGER, INTEGRATED MARKETING JAMIE RUDOLPH MANAGER, EVENT MARKETING MICHAEL FOUNTAS MANAGER, EVENT MARKETING ALISSA GROSS ASSOCIATE MANAGER, INTEGRATED MARKETING JESSICA CASEY ASSOCIATE MANAGER, INTEGRATED MARKETING DANIELLE K. STEWART COORDINATOR, INTEGRATED MARKETING LEIGH ALCOTT MARKETING COORDINATOR PRODUCTION GENA KELLY VICE PRESIDENT, MANUFACTURING CHRIS WENGIEL GROUP PRODUCTION DIRECTOR KEVIN HURLEY PRODUCTION DIRECTOR JILL BREINER ASSOCIATE PRODUCTION MANAGER CIRCULATION ELLEN DEALY SENIOR EXECUTIVE DIRECTOR JOHN CROSS PLANNING AND OPERATIONS DIRECTOR SUZANNE BERARDI SENIOR ONLINE MANAGER PEGGY PYLE MARKETING DIRECTOR ALISON CHRISTIE ASSISTANT MARKETING MANAGER FAIRCHILD FASHION MEDIA WILL SCHENCK CHIEF REVENUE OFFICER SUZANNE REINHARDT VICE PRESIDENT, FINANCE & OPERATIONS DAN SHAR VICE PRESIDENT, GENERAL MANAGER, DIGITAL MELISSA BRECHER VICE PRESIDENT, MARKETING & COMMUNICATIONS MICHAEL ATMORE EDITORIAL DIRECTOR, FOOTWEAR NEWS & DIRECTOR OF BRAND DEVELOPMENT DEVON BEEMER FINANCE DIRECTOR TANYA DAVIS BUSINESS MANAGER JANET JANOFF BUSINESS MANAGER NANCY BUTKUS CREATIVE DIRECTOR PETER W. KAPLAN EDITORIAL DIRECTOR GINA SANDERS PRESIDENT & CEO W Boom Times KEY POINTS FROM THIS ISSUE 5 1. RICH REWARDS: In beauty, both the auent and aspirational shopper are back—provided they receive great service. PAGE 20 2. NORTHERN STAR: Canada is North America’s new retail hot spot, with Target, Nordstrom and Sephora all plotting expansion plans. PAGE 30 3. THE GROWTH CONTINUUM: MAC’s global flagship strategy looks to capitalize on its key business drivers of entertainment, innovation and inclusiveness. PAGE 6 4. SHAKE IT UP, BABY: Two top London department stores are experimenting with nontraditional formats to attract younger consumers. PAGE 14 5. THE YOUNG GUNS: Individuality and a subtle sophistication connect the new young stars of the hair and makeup worlds. PAGE 24
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There’s a retail boom going on up North, too, in Canada, to be exact, where an influx of stylish fashion and beauty retailers are setting up shop. Sephora, J. Crew Anthropologie, Nordstrom and Target are among those drafting expansion plans for the country, which has a relatively low barrier to entry compared to many emerging markets. But as WSL’s Wendy Liebmann tells beauty financial editor Molly Prior, “Canada is a country that at first glance looks familiar, but there are a lot of differences.” Find out the key issues in “Red Hot Canada.”
Transcript of Editor's Letter: Boom Times in Beauty - Beauty Inc. (11/09/12)
hen Leonard Lauder created his famous term, the Lipstick Index, to illustrate the resilience of beauty during times of recession, it’s safe to say he probably wasn’t referring to $48 lipsticks. Thus far this year, though, Tom Ford Beauty is doing a brisk business in lipsticks costing just that. Meanwhile, sales of luxury skin care
brands like La Mer, La Prairie and Chantecaille are soaring, while fragrances priced $100 and over are up 48 percent year to date. Indeed, the upper end of the beauty market is booming, and the positive impact is cascading across the entire prestige market. As Karen Grant, global industry analyst of The NPD Group, which provided these figures, says, “The higher end is the engine that is igniting the category, and is part of the reason we are seeing such strong growth.” Discover how the consumption habits of the affluent shopper have evolved in the last 12 months and how they’re impacting the overall market in “Indulge Me” on page 20.
One key evolution has been the demand for great service, among both the affluent and the aspirationals, a fact not lost on our cover subject, Lauren Remington Platt. A fixture of the New York social scene and descendant of the founder of Remington Arms Company, Platt is redefining the door-to-door concept with Vensêtte, which provides hair, makeup and manicures in the privacy of one’s own home. The 20-month-old company is booming, and Platt is now looking to expand her domain geographically and digitally. WWD’s European beauty editor Jennifer Weil reports on Platt’s growth strategy in “At Your Service” on page 22.
There’s a retail boom going on up North, too, in Canada, to be exact, where an influx of stylish fashion and beauty retailers are setting up shop. Sephora, J. Crew Anthropologie, Nordstrom and Target are among those drafting expansion plans for the country, which has a relatively low barrier to entry compared to many emerging markets. But as WSL’s Wendy Liebmann tells beauty financial editor Molly Prior, “Canada is a country that at first glance looks familiar, but there are a lot of differences.” Find out the key issues in “Red Hot Canada” on page 30.
No doubt Karen Buglisi, the global brand president of MAC Cosmetics and the subject of this month’s Master Class profile, would have some sage advice for those looking to expand in Canada. Buglisi is one of the key players in MAC’s ascendancy as the number-one color cosmetics brand in the prestige market, and as WWD’s executive editor Pete Born discovers, one who pours her heart and soul (as well as considerable brain power) into growing its business worldwide. Right now, Buglisi and her team are focused on Brazil, a country she calls the brand’s China. MAC is in full expansion mode there, exporting its innovative vision and theatricality to a beauty-hungry consumer group. One key initiative is the opening of flagships, both in Brazil and around the world. It’s an audacious goal, and one that epitomizes MAC’s strategy. Says Buglisi, “We take 100 percent responsibility for entertaining the consumer...It’s the way we bring the brand to life.” —JENNY B. FINE
4 WWD BEAUTY INC
EDITOR’S LETTEREDWARD NARDOZA EDITOR IN CHIEF, WWD
PETE BORN EXECUTIVE EDITOR, BEAUTYJENNY B. FINE EDITOR
JENNIFER WEIL EUROPEAN EDITORJULIE NAUGHTON SENIOR PRESTIGE MARKET BEAUTY EDITORMOLLY PRIOR BEAUTY FINANCIAL EDITORFAYE BROOKMAN CONTRIBUTING EDITOR BELISA SILVA BEAUTY MARKET EDITOR, MASSJAYME CYK EDITORIAL ASSISTANTKATIE KRETSCHMER COPY EDITOR
ARTBARBARA SULLIVAN ART DIRECTOR
CONTRIBUTORSSAMANTHA CONTI AND NINA JONES (London), MILES SOCHA (Paris), CYNTHIA MARTENS (Milan), MARCY MEDINA AND RACHEL BROWN (Los Angeles), MELISSA DRIER AND SUSAN STONE (Berlin), AMANDA KAISER (Tokyo)
PHOTOCARRIE PROVENZANO PHOTO EDITORLEXIE MORELAND ASSOCIATE PHOTO EDITORJENNA GREENE ASSISTANT PHOTO EDITORERIN FITZGERALD STUDIO MANAGEREILEEN TSUJI PHOTO COORDINATORROBERT COHEN PHOTO FACILITATORJOHN AQUINO, GEORGE CHINSEE, STEVE EICHNER, KYLE ERICKSEN, THOMAS IANNACCONE, ROBERT MITRA PHOTOGRAPHERS
CONTRIBUTING PHOTOGRAPHERSRUVEN AFANADOR, KENJI AOKI, DAN BORRIS, NIGEL DICKSON, BEN HASSETT, HENRY LEUTWYLER, MARK HANAUER, MICHAEL NAGLE, JEFF RIEDEL, PHILIPPE SALOMON, DAVID LEWIS TAYLOR, YASU+JUNKO
BEAUTY INC ADVERTISINGPAUL JOWDY VICE PRESIDENT, PUBLISHER, WWD JILL BIREN WEST COAST DIRECTORCOURTNEY HAZIRJIAN WEST COAST ACCOUNT MANAGERODILE EDA-PIERRE ACCOUNT MANAGER, PARISCHRISTOPHER SANTORELLA BEAUTY SALES ASSISTANT
MARKETING/CREATIVE SERVICES JANET MENAKER EXECUTIVE DIRECTOR, MARKETINGEMILY CORTEZ DIRECTOR, CREATIVE SERVICESKRISTEN M. WILDMAN EXECUTIVE DIRECTOR, EVENT MARKETINGMARJORIE KEATING PUBLIC RELATIONS DIRECTORDANIELLE MCMURRAY DIRECTOR, INTEGRATED MARKETING AND SPECIAL PROJECTSJENNIFER PINCUS DIRECTOR, INTEGRATED MARKETINGFABIO SALLES CREATIVE DIRECTORJULIA DONAHUE COPY DIRECTORALEXIS WARCHALOWSKI DIRECTOR, DIGITAL DEVELOPMENT BRIANNA LIPOVSKY ASSOCIATE MARKETING DIRECTORJENNIFER BORCK SENIOR MANAGER, INTEGRATED MARKETINGJAMIE RUDOLPH MANAGER, EVENT MARKETINGMICHAEL FOUNTAS MANAGER, EVENT MARKETING ALISSA GROSS ASSOCIATE MANAGER, INTEGRATED MARKETING JESSICA CASEY ASSOCIATE MANAGER, INTEGRATED MARKETINGDANIELLE K. STEWART COORDINATOR, INTEGRATED MARKETINGLEIGH ALCOTT MARKETING COORDINATOR
PRODUCTIONGENA KELLY VICE PRESIDENT, MANUFACTURINGCHRIS WENGIEL GROUP PRODUCTION DIRECTORKEVIN HURLEY PRODUCTION DIRECTORJILL BREINER ASSOCIATE PRODUCTION MANAGER
CIRCULATIONELLEN DEALY SENIOR EXECUTIVE DIRECTORJOHN CROSS PLANNING AND OPERATIONS DIRECTORSUZANNE BERARDI SENIOR ONLINE MANAGERPEGGY PYLE MARKETING DIRECTORALISON CHRISTIE ASSISTANT MARKETING MANAGER
FAIRCHILD FASHION MEDIAWILL SCHENCK CHIEF REVENUE OFFICER SUZANNE REINHARDT VICE PRESIDENT, FINANCE & OPERATIONSDAN SHAR VICE PRESIDENT, GENERAL MANAGER, DIGITALMELISSA BRECHER VICE PRESIDENT, MARKETING & COMMUNICATIONSMICHAEL ATMORE EDITORIAL DIRECTOR, FOOTWEAR NEWS & DIRECTOR OF BRAND DEVELOPMENT DEVON BEEMER FINANCE DIRECTORTANYA DAVIS BUSINESS MANAGERJANET JANOFF BUSINESS MANAGER
NANCY BUTKUS CREATIVE DIRECTOR
PETER W. KAPLAN EDITORIAL DIRECTOR
GINA SANDERS PRESIDENT & CEO
WBoom Times
KEY POINTS FROM THIS ISSUE5
1. RICH REWARDS: In beauty, both the a!uent and aspirational shopper are back—provided they receive great service. PAGE 20
2. NORTHERN STAR: Canada is North America’s new retail hot spot, with Target, Nordstrom and Sephora all plotting expansion plans. PAGE 30
3. THE GROWTH CONTINUUM: MAC’s global flagship strategy looks to capitalize on its key business drivers of entertainment, innovation and inclusiveness. PAGE 6
4. SHAKE IT UP, BABY: Two top London department stores are experimenting with nontraditional formats to attract younger consumers. PAGE 14
5. THE YOUNG GUNS: Individuality and a subtle sophistication connect the new young stars of the hair and makeup worlds. PAGE 24
