February uary 2013 ` 100
HAIR & NOW! Our stunning
gallery of tress innovation
INVESTING IN A SALON?
Here’s what you need to know!
Colour Blocking
PALETTES SO SPECTACULAR THEY’LL BLOW YOUR IMAGINATION!
Global *
news now QUICK UPDATES ON WHAT’S BEEN HAPPENING IN THE WORLD OF BEAUTY
Former Elizabeth Arden VP launches skin n care line
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Anthony Vargas, former vice president dent of research and development at Elizabeth Arden, has launched Tilth h Beauty, a new high-performance, anti-aging skin care line, formulated with the latest skin care technology and natural ingredients. The new beauty line has 14 products, including cleansers, toners, moisturisers, serums and eye treatments. The products range from $32 for a cleanser to $62 for a serum. Tilth Beauty is a part of Vargas Cosmetics Inc, which has been een set up by Vargas, who spent 20 years at Elizabeth Arden Arden.
Beraca, L’Oréal and GIZ partner on sustainable Amazon development
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PHOTO CREDIT: PHIL P HARRIS
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Beraca, the manufacturer and supplier of natural ingredients from the Brazilian biodiversity, L’Oréal and the German Agency for International Cooperation (GIZ) have come together to promote the use of raw materials from the Amazon region in the manufacture of cosmetics marketed internationally. Expected to run for at least two years with an aim to promote sustainability, the initiative will train 300 families in 24 cities. L’Oréal will help to promote the initiative internationally and encourage the use of these materials in other markets. GIZ will be responsible for providing training in business management and collaborative business solutions, while Beraca will be in
charge of developing the communities’ technical and productive capacities as well as implementing environmentally responsible practices and organic certification.
Latin America is next destination for Sephora
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According to Paula Larroque, general manager and senior vice president of Latin America for Sephora Americas, the brand is all set to expand in Latin America with plans to plans to roll out at least 50 stores by 2016. It has recently opened its sixth Mexican store in Mexico City. While continuing to grow in Brazil, Latin America’s largest beauty market, Sephora will open three new stores in the country in the next three months. In total, Sephora hopes to add five stores in Mexico and six in Brazil in 2013 to operate 21 stores in Latin America by 2014.
In brief * L’Oréal opens world’s largest hair colour production facility in Mexico
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With a view to strengthening its hair colour portfolio, French major L’Oréal has
opened a 32,000-squaremetre facility at the Logistik II Industrial Park, in Villa de Reyes, Mexico. The newly opened facility represents an investment totalling $100 million from L'Oréal and will double its production capacity in
Mexico. Supplying Latin American and North American markets, the facility will create approximately 1,200 jobs. This T new factory is in line the company’s ambition to reach a one o billion new consumers in the c next 10 years and also reflects L'Oréal's global strategy towards greater specialisation of its production by business segment.
Avon to withdraw from South Korea, Vietnam
Sony unveils invisible skin blotches detector
Turning its focus to the cosmetic industry, Sony has developed a device that can analyse the condition of the skin whilst also being able to detect blemishes before they appear, with the help of cleverly placed image sensors.
Beauty market set for massive growth
According to the latest market research from Lucintel, the global beauty care products industry is forecast to reach around $265 billion in size by 2017 due to the rise in consumer incomes and changing lifestyles.
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Avon Products, Inc has announced that it will cut 1,500 jobs and pull out of the South Korea and Vietnam markets in a bid to stabilise the business at a turbulent time. This move is an initial step towards the company's previously communicated annual costsavings target of $400 million by the end of 2015. These actions are aimed at concentrating resources on high priority markets and activities and boosting efficiencies, and are expected to be largely completed before the end of 2013. Sheri McCoy, chief executive officer, Avon Products, Inc. said, “In order to turn around the business, we are focused on driving top-line growth and aggressively managing our cost base. She further added, “The decisions
Vivant Skin develops lip plumper
outlined are necessary to stabilise the company and begin the process of returning Avon to sustainable growth.”
US cosmetics company Vivant Skin Care has developed a lip plumper that increases lip volume by up to 40 percent, as an alternative to lip augmentation surgery. Packaged in a .16 oz. tube, Maxlip is retailed for $18 and is available online at http:// vivantskincare.com/maxilip.
Palamon takes over Feelunique.com
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Palamon Capital Partners has purchased a majority stake in Feelunique.com, an online retailer of premium beauty products, in a deal valuing the company at 26 million pounds, or $41.6 million at current exchange rates. Palamon said in a statement that it
would provide further capital to support the company’s growth plan. Sirius Equity will invest alongside Palamon, and its co-founders Robert Bensoussan and Jim Sharp will join the e-tailer's board of directors. Bensoussan will take up the role of chairman while Sharp will become a non-executive director. beauty launchpad | 02.13
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first look
fresh
n0w
THE NEWEST PRODUCTS AND SERVICES HITTING RETAIL SHELVES, SALONS AND SPAS NOW
MAC
Range: Permanent Nail Lacquers Product: Nail lacquers MRP: ` 950 Availability: MAC stores Features: This first permanent nail lacquer collection from m MAC has 31 colours and three finishes. With shades of pink, nk, nude, orange, beige and coral and hints of fushcia, red, blue ue and gold, the collection has some outstanding looks to off er ffer for the nails this season.
LALIQUE
Range: Hommage a l’Homme Product: Fragrance MRP: ` 3,400 and ` 4,400 Packaging: 50ml, 100ml Availability: Lalique retailers and escentual.com Features: Created by perfumers Christine Nagel and Mathielde Bijaoui, Hommage à l’homme is the newest Lalique fragrance for men. The fragrance includes notes of bergamot, saffron, violet, chili pepper, oud, musk, amber and smells like something worn by Hollywood icon Cary Grant.
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MONTAGNE JEUNESSE MO NESSE
Ran Gorgeous Gift Pamper Range: mper Pack for Girls and Guys Product: Peel off masks, Pro smoothies, scrub mask, cleansing smo mask, blackhead blitzer, detox and ma degrease mask, and mud mask deg MRP: ` 675 MR Skin Sk Type: All skin types Availability: Dabur newU stores Av and an Le Marche stores in Delhi, Noida and Gurgaon N Features: The product claims F to t contain the goodness of nature and includes extracts of ingredients like apricot and fruits including orange, cherries and strawberries. The mask helps in tightening the skin and gives it a glowing, younger texture, while visibly reducing the fine lines.
ESTÉE LAUDER
Range: Pure Color Nail Lacquer Product: Nail lacquer MRP: ` 1,390 Packaging: 8ml Availability: Estée Lauder stores nationwide Features: Designed by Estée Lauder’s Creative Makeup Director, Tom Pecheux, this ultra-chic palette of some funky nail colours promises to add a notch to the party season with its long-wearing nail lacquers inspired by Paris at Night. Combined with intriguing shades, textures and finishes, the colours give a stylised attitude in shades of Caviar, Bête Noire, Blue Blood, Black Plum, Viper, Nouveau Riche, Explosif, Chaos, Smashed and Fiery Hot.
LipIce
Range: LipIce Naughty Mega Pack Product: Lip balm MRP: ` 649 Availability: Leading beauty retailers and department stores Features: The new range offers a wide choice of lip care products, including fruity flavour lip balms in sheer colours that change in hue from white to pink on application. The lip balms are SPF 15 and guard the lips from harmful UV rays. LipIce lip balms are available in five colours -Flirty Mauve, Pouty Pink, Natural Orange, Crazy Brown and Hotty Pink.
LOTUS HERBALS PROFESSIONAL
Range: PHYTORx Deep Moisturizing Kit Product: Crème face wash, clarifying & soothing toner and moisturising crème MRP: ` 645 Skin Type: Normal to dry skin Availability: Leading salons and spas across India Features: The kit contains preservative-free products that have no artificial fragrance or colour. The organic ingredients inside the products help in cleaning the skin, while maintaining the essential nutrients. Enriched with avocado, hydrolysed soy protein and aloe vera, the kit promises to instantly replenish moisture and improve skin texture, making it radiant, soft and supple. beauty launchpad | 02.13
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trend feature
ANGELO SEMINARA MIXTE COLLECTION Images so arresting and perplexing, you wonder if they are an optical illusion. Baffled to believe this could possibly be hair, the effect is pure trompe l’oeil, the French ‘trick the eye’ style of painting where an artist paints an apparent three dimensional image on a flat surface. Awesome in their creativity, flawless in their execution and utterly beautiful in their delicacy of touch, Seminara has once again created a collection of incredulity and wonder.
hair & beauty
Hair: Angelo Seminara; Make-up: Laura Dominique; Styling: Chloe Kerman; Products: Davines ; Colour Concept: Angelo Seminara, assisted by Edoardo Paludo Photography: Andrew O’Toole
beauty biz
Show me the
Money! | BY VANDANA THAKUR |
INVESTING IN A SALON BUSINESS, BUT DON’T KNOW IF YOU SHOULD? WE ROUNDED UP FOUR EXPERTS TO GIVE YOU THE BASICS TO BE FOREARMED WITH. HERE’S WHAT YOU NEED TO KNOW BEFORE YOU PUT YOUR MONEY WHERE YOUR MOUTH IS...
Managing Director, Helion Venture Partners
� Profile of the founding team – do they have the vision, experience and operating skills to build a large business? � Value proposition – who’s the customer, what differentiates the salon from others, what’s the target price range, hair vs skin, gender specific, marketing programs. � Unit economic model – ideal size of store, average revenue, profitability, why
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will revenues grow, how many walk ins / repeat customers required to break-even / grow year on year, average revenue per customer, no. of repeat customers per month. � Scalability – how many salons in a city, how many cities, overall scope of the business. � Processes – how to ensure standardisation, customer centricity, SOPs for staff etc � Organisation building – hiring, training and retention. h
OSH BHABANI
Managing Director, b:blunt � The business should have a good management team with integrity and the correct skill set. � Should have a great location. � Good relationships and reputation within the industry. � A strong, well-trained and loyal team. � The brand should be able to clearly stand out amongst its competitors. � The business should not have any commercial activities outside the books. � The partners should be involved on a day-to-day basis in the operations.
ILLUSTRATION BY KADAMBARI MISRA
KANWAL SINGH
“Does an exit for the investor figure in the list at all? Else the investor may be stuck in a business that hat has no viable ble exit route.” .”
RAHUL BHALCHANDRA CEO, YLG salon and spa
� The entrepreneur needs to have a clear positioning in mind – a clear definition of what the salon stands for, who its core customers are. � The entrepreneur needs to be hands-on, or there should be systems and processes to run the business efficiently in his/her absence. In case the entrepreneur is not hands-on, clearly defined processes are a must. � The entrepreneur should also have a strong leadership quality. He has to be a people developer, who invests in developing the team, and be a friend and guide to employees. Danger signs are when an entrepreneur is only
focused on daily collections and has a high churn of staff. � What are the short- and mediumterm priorities of the entrepreneur – does an exit for the investor from the business figure in the list at all? Else the investor may be stuck in a business that has no viable exit route. If the answer is Yes, then what is the way in which the entrepreneur will enable such an exit after a pre-defined time/ event? � Does the salon have a wellunderstood and documented accounting system, where actual revenues – and not fictitious numbers – are shown? If operations are running without proper billing and accounting, the investor is sure to lose out on value created by the business
SANTOSH KUMAR
Owner, Paris de Salon, Hyderabad bad � How strong is the brand in the market – is it a top salon brand in the city? Check out the various media it has been advertised and promoted in. � Period of existence and locations – different locations of the salon and the kind of clientele it attracts and serves. � Target audience and pricing – are its services competitively priced? Affordable luxury always rocks! � Do the products support the kind of infrastructure created and are clients happy with the offer – internationally known premium brands attract customers. How strategically are the interiors designed; do those interiors reflect the brand value? � Turnover and year-on-year growth – a turnover growth rate in the region of 30% and net profits expanding at 25-30% are great numbers to draw investor interest. � Future plans – what’s the strategy for expansion? How many new outlets will the promoters launch on their own and how many to be franchised? Companyowned to franchised ratio should be about 40:60 to attract any investor. � What kind of new territories to be expanded to – tier II cities within a state typically give any salon chain a quick response. Is the salon simultaneously targeting tier II cities and within that choosing a premium place where there’s high spending capacity? beauty launchpad | 02.13
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Lifetime Beauty and Health Dusseldorf, Germany Innofairs GmbH & Co KG www.innofairs.com
Cosmobelleza & Wellness Barcelona, Spain Fira De Barcelona www.cosmobelleza.com
Southeast Pool & Spa Show Atlanta, USA Integrated Solutions Group Ltd www.midamericashow.com/se/
Nail Expo Moscow, Russia Kosmetic International Company
Spa & Wellness India Hyderabad, India Business Live
Cosmomaq Zaragoza, Spain Feria De Zaragoza www.feriazaragoza.es
Vivaness Nuremberg, Germany NurnbergMesse GmbH http://www.vivaness.de/en
Akzente Hebst SindelďŹ ngen Stuttgart, Germany Kosmetik International Messe Gmbh http://www.ki-online.de/messe/ akzente-sindelďŹ ngen.html
Esthetique Spa International Vancouver Vancouver, Canada Esthetique Spa International www.spa-show.com
Western pool & Spa Show Long Beach, USA Florida Swimming Pool Association www.westernshow.com
Professional Beauty London London, United Kingdom Professional Beauty www.professionalbeauty.co.uk
Beauty Asia Singapore Singapore Lines Exposition & Management Services Ltd http://www.beautyasia.com.sg/
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