15 minute read
Mane
Discover sophisticated scents created by MANE’s perfumers, that combine creativity, technology and exclusive ingredients.
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Ethics and aesthetic by MANE and Trussardi. A perfume about women’s empowerment, solidarity, green conscience, and inclusiveness. Trussardi is the first perfume of the Maison dedicated to women determined to always be in charge of their destiny. A fragrance full of harmonized contrasts created by the inspiring duo of Violaine Collas and Julie Massé. An olfactory score evoking Italy’s vibrancy and excellence with a surprising Italian accord on top, a hypnotizing duo of white Dalia and Jasmine Absolute in the heart, enriched with an exclusive MANE interpretation of a timeless ingredient: Lavender Jungle Essence™. The drydown reveals a velvety touch, where refined Suede notes capture brave Patchouli and sensual Violet nuances, leaving an unforgettable sillage. A composition for today’s women that revolves around the cardinal points of an Italian spirit and feminine boldness.
Rock is a tribute to the modern and charismatic Ermanno Scervino’s woman, reinforcing the link between Haute Couture and Perfume. The fragrance represents the woman who chooses the Ermanno Scervino brand because its creations emphasize her innate strength of character. This latest creation by MANE’s perfumer Alex Lee is an explosion of femininity with a rock&roll touch. An intriguing and fresh ozonated opening with lively Citrus accents of Bergamot and Mandarin reveals, in the heart, an elegant Floral bouquet enriched by narcotic petals of Datura and Freesia and intriguing Mugane™ touches. In the drydown, an enveloping Woody trail warms the olfactory mélange with soft nuances of Vanilla.
With Trussardi Le Vie Di Milano Passeggiata In Galleria Vittorio Emanuele II, MANE has given an olfactory signature to the “Milanese mundane living”, where the effluvia of the tearooms mix with expensive perfumes. An olfactive journey that starts from afar to relive the unique atmosphere of the streets of Milan. The fragrance created by Julie Massé opens with an exciting cocktail of Hazelnut Accord, Coffee Jungle Essence™ and Cinnamon Essential Oil, an inviting prelude to the discovery of the heart of the composition, where the seductive notes of Tuberose and Jasmine Absolutes are wrapped by the intoxicating Coconut Neo Jungle Essence™. In the drydown, the magnetic Vanilla Absolute mixes with the precious notes of Cedarwood Essential Oil and White Musk, for a perfect representation of the purest luxury and Italian refinement.
Created by MANE’s perfumers Violaine Collas and Veronique Nyberg, CH Under the Sea for her invites us to dive in the search of our soulmate, proposing a wonderful journey underwater with a salty and bubbly fragrance, evoking a mermaid spell through the most vibrant ingredients. The base emerges with Amber and Vanilla notes while the soft heart is made of Ylang Ylang and Coconut, and the top features energetic Pink Grapefruit and Red Seaweed extract. Romance, magic and elegance play in this submarine oasis where fantastic creatures meet.
Stazione Leopolda in Florence was again the venue where the international artistic perfumery community met from 17 to 19 September 2021. After the long period without physically meeting, this was an eagerly awaited opportunity to return to in-person meetings and to see (and smell!) new creations live and not on a screen. About 140 maisons and brands presented their new creations, with 70% of exhibitors coming from outside Italy, to some 1,100 members of the trade from 40 countries worldwide. Three hundred foreign buyers attended Pitti Fragranze, with the majority coming from France, followed by Spain, Switzerland, Russia, Lithuania, Germany, the Netherlands, Ukraine, the USA, Romania, Poland, the UK, Turkey, Austria, Saudi Arabia and Portugal. Over 120 journalists and media operators attended, eager to discover the latest proposals at this year’s exhibition. The three days of presentation of the world’s best artistic perfumery proposals, the latest ideas in beauty and well-being and the most exclusive skincare lines all produced very positive feedback from all categories. Many innovations were presented not only by established brands but by new brands and those making their debut, thanks to meticulous scouting efforts, with the section of Spring representing the high point.
PITTI FRAGRANZE
A SUCCESS STORY
PITTI FRAGRANZE
The special events and the presentations organized by the brands on the calendar, such as the retrospective on Ralf Schwieger curated by Chandler Burr, the presentation of Mane dedicated to Enfleurage, the Gurin Talk on Freedom in Error, the encounter with the extraordinary participation of Maestro Roberto Capucci amongst many others, made Fragranze a unique observatory on new trends in the sector and contemporary olfactory culture. As Raffaello Napoleone, CEO of Pitti Immagine, said, “The return of Fragranze was a rendezvous eagerly awaited by the international community of high-end artistic perfumery and beauty. In these days, it was something we all perceived: by speaking with our exhibitors and buyers who arrived at the Leopolda from Italy and from numerous foreign countries, the feedback that emerged was very positive, and I would even go so far as to say enthusiastic…. Those who came to Florence did so with a great desire for substance, and in order to place orders and cement new business deals.” It can confidently be said that both exhibitors and buyers were very satisfied by this show that went beyond expectations, arousing great enthusiasm.
VALÉRIE KAMINOV – BIOGRAPHY Valérie Kaminov is Founder and Managing Director of the highly successful International Luxury Brand Consultancy. For over 25 years Valérie has been at the forefront of the global cosmetics industry and has worked with a vast array of luxury, premium and niche beauty brands and fragrances. With her extensive expertise, commercial acumen and practical experience IL Brand Consultancy has become one of the most sought after management and distribution agencies specialising in global beauty. Recognised for the breadth of business sectors and extensive distribution channels it works with, ILBC’s international client portfolio spans both well-established names and newly-emerging brands in hair care, make-up, skincare, fragrance, devices and top-to-toe brands. Valérie’s wealth of knowledge in international growth strategies and business development is combined with an inspirational and forward-thinking approach. Through her exceptional insight and understanding of the industry Valérie has helped brands amplify their market reach, elevate their brand presence, improve their business performance and achieve commercial success globally. A further aspect of her business is her skill in brand evaluation, acquisition due diligence, risk assessment and commercial growth which has led Valérie to regularly advise Private Equity Funds, multi-national organizations and financial investors. This capability in combination with her advanced qualifications and proficiency in corporate governance have made her a much-desired Board Advisor and Non-Executive Director. From her CEW mentoring, organisation of the International Manufacturers & Distributors Forum (IMF) and guest lecture programmes, Valérie is a passionate and dynamic advocate of the global beauty industry. Valérie splits her time between her London HQ and her central Paris office as well as managing a satellite network in Russia & China.
CHINA LEADING TRAvELRETAILBOOM
The changing face of beauty in China
The beauty industry is big, we all know that. Even Covid didn’t stand in the way of its growth with its current value standing at $511 billion (up from $483 billion in 2020), according to King & Wood Mallesons. And, China is a huge part of the industry’s ongoing expansion; in 2020 China became the world’s second-largest beauty and personal care product market after the US, in terms of market value (Statista), and with the country’s increasing urbanisation, disposable income and social media influence the demand for innovative products is on the rise.
However, home grown beauty brands aren’t satiating these savvy shopper’s appetites. No, the Chinese consumer wants global beauty brands, with over half of Chinese consumers preferring foreign brands over local ones (Statista). The problem is that beauty brands imported from the U.S, France, South Korea and Japan have not been easy to purchase. Until now.
There have always been two major obstacles preventing global cosmetics brands from entering the Chinese market and capping market potential; strict laws in favour increasing animal testing and big import tariffs have encouraged Chinese consumers to shop overseas, and in particular to shop at duty-free outlets. As of this year though, both of these regulations are relaxing in a bid to attract global brands to start selling in China as well as being part of an ambition to increase domestic consumption. In May 2021 a framework was established allowing international beauty companies to sell most products in China without animal testing. Without looking at the small print this drastic pivot has opened up a new market of 1.4billion consumers to cosmetics companies. This is good news in particular for ethical brands, and for the slew of indie brands which have a strong moral focus to align with Gen- Z’s purpose driven buying tactics. And what about those pesky import tariffs? Well, they’re changing too. In an effort to boost local tourism and consumption, the Chinese government announced major changes to dutyfree shopping polices. Inspired by the need to drive the recovery of the country’s economy post pandemic, the polices include reducing corporate and individual tax rates, increasing the personal allowance on duty free purchases and even allowing consumers to purchase
duty free products online six months after returning home. The walls stopping access to China are crumbling and the country is set to become a gateway for global expansion for cosmetics brands. According to UBS analyst Chen XIN these policy changes are expected to drive the domestic duty-free market to reach RMB 203billion ($30bn) by 2025 and for overseas brands this presents a new, and evolving opportunity to connect to the Chinese market. It’s never been a better time to start selling in China.
Spearheading President Xi Jinping’s objective to focus on domestic consumption as a driver for growth alongside foreign trade is the island province, and popular vacation destination of Hainan, the world’s largest Free Trade Port. With its subtropical climates and beach front hotels this island in the South China Sea is a magnet for Chinese tourists and foreign visitors. And, crucially its duty free malls make it a haven for savvy shoppers looking to make the most of reduced tariffs. Cheaper cosmetics on a paradise island have placed Hainan at the forefront of China’s burgeoning travel retail revival.
Although offshore duty-free polices have existed on Hainan since 2011, in a bid to ensure the island becomes an international tourist destination these polices have been updated, and improved. As of July 2020, the annual tax-free shopping allowance per person was increased from 30,000 yuan (~$5,000) to 100,000 yuan (~$15,500) (it was just 5,000 yuan in 2011), the range of tax-free categories now includes electronic products and liquor and shoppers can enjoy online duty-free shopping for up to six months after they leave the island, some very enticing policies indeed! And it seems these relaxed regulations are working. Whilst the rest of the world were unable to travel to China as a result of the pandemic, Chinese holiday makers were undeterred and flocked to the island in their thousands. Which, according to McKinsey, “doubled overall spend on duty free in 2020 to ~$4.3 billion, up from ~$2.1 billion the previous year by the ongoing pandemic Chinese travellers”. Hainan is now a key player in capturing Chinese luxury spending, “in 2020, Hainan became the epicentre of the global duty-free industry, a ‘lighthouse’ in an otherwise darkened sector,” said Martin Moodie, founder and chairman of The Moodie Davitt report. The luxury beauty industry has long benefitted from Chinese consumers being big spenders, indeed in 2017 Harrods Managing Director Michael Ward reported that Chinese consumers spent a whopping £200 million a year in the department store, accounting for 10% of the company’s annual revenue. And, with the large proportion of high-net worth individuals that China boasts having no qualms about spending thousands of the equivalent of US dollars in single purchases helped boost the global beauty market profit’s considerably. Previously, these luxury shoppers would have to purchase global beauty brands outside of China but as the animal testing laws relax and duty-free shopping in China expands, purchasing domestically is set to increase making it crucial that brands seek to implement a China selling strategy quickly if they want to take advantage of the opportunities being a player on beauty’s biggest stage will bring.
Purchases made in China are expected to account for 26%-27% of the global luxury goods market by 2025, according to Bain & Company. Crucially, China’s new duty-free policy is expected to extend to the mainland by this date with duty-free shops opening up in cities including Shanghai and Beijing. It would seem that establishing brand awareness in an offshore market would be a good place to start for brands seeking to capture the Chinese consumers’ attention and indeed diversifying strategies and developing a duty-free strategy are the first steps for expansion into the Chinese market. However, there are some crucial points for overseas brands to remember when developing these new strategies. Primarily, the way brands approach the Chinese market must be tailored to local demands; it is simply not enough for brands to copy western markets, they must understand the cultural nuances and the local consumer in order to achieve success in China.
With multiple brands clamouring to take centre stage how can brands make sure that Chinese consumers choose them? With some clever partnerships and a solid omni-channel strategy is how. One such partner is USHOPAL. The leading brand acceleration group is credited with raising awareness of niche, global luxury beauty brands and famously only work with brands that are already sold at high-end retailers overseas including Harrods and Le Bon Marche. While most brands focus on entering the Chinese market cross boarder or with
T-Mall, Ushopal provides brands with a unique omni-branding strategy that includes access to 2,500 luxury influencers (key for appealing to the digital native generations), an in-house content studio to help curate content specifically to appeal to the Chinese consumer, an omni-channel growth team, T-Mall retail operations, global logistics and, most recently, the futureof-concept-stores Bonnie & Clyde.
For brands to make a big impact in China they are going to need to appeal to its biggest spenders, and that’s not necessarily those with the most money to burn. In fact it’s the young hot generation known as Gen-Z; according to McKinsey, although this young cohort of shoppers only accounts for 15% of the Chinese population they are responsible for 40% of total consumption giving them some serious spending power. The pandemic changed the rules of beauty across global markets; brands need to offer the double whammy of being experiential in-store to offer a unique stimulating consumer experience that shoppers have been missing as well as being easily accessible online. Bonnie & Clyde taps into both the digital native Gen-z’s and the post-pandemic consumer. The innovated curated retail space provides a luxury in-store experience for consumers to discover non-animal tested, cross-border luxury global beauty and lifestyle brands and then offers consumers to the option to purchase products online whilst in-store thus offering a seamless customer experience. Perhaps most excitingly Bonnie & Clyde is also the only beauty destination that guarantees delivery within a four-hour window for Shanghai shoppers and within 24hours for the rest of China - impressive! This try offline, buy online model has been dubbed ‘clicks & mortar’ and enables brands to develop a wider reach in the Chinese market. In the past niche, cruelty- free brands could only operate as online cross-border imports but as USHOPAL continues to expand its Bonnie & Clyde luxury retail spaces into Shanghai, and of course - Hainan, this is on course to change. Already the cross-border retailer is seeing huge success using its store as a showroom to sell foreign brands including Natura Bisse and Chantecaille. If brands invest in innovative brand experiences via travel retail now they can begin to build brand awareness well ahead of time giving them the opportunity to directly operate in duty-free stores, and remember that from as soon as 2025 brands will be able to operate duty-free stores in Hainan without having to partner with a duty-free operator.
As well as a thoroughly modern purchasing model, William Lau, Bonnie & Clyde’s CEO cites brand selection as one of the most critical aspects of customer experience. “In order to be considered for inclusion, a brand must have displayed a multiyear history of quality products and be a leader in its own category. In addition, it must also have outstandingly positive feedback from influencers/KOLs, and consumers”, says Lau. Forecasts predict that more than half of cosmetic retail sales will be from e-commerce channels by 2024 (Statista), this demonstrates the importance of brands operating seamless omni-channel strategies, especially in an ever-changing market such as China says Lau, “today, the channels for content are much more segregated, and the way consumers buy is much more segregated” he said, “one of our key differentiations is that we’re able to manage the entire ecosystem”.
While cross-border retailers on mainland China are starting to pop up, entering the market in the travel retail sector can lay the groundwork for when mainland duty-free shopping is more accessible. For now though all eyes are on Hainan, the tropical resort island looks set to make domestic Chinese consumption boom as more and more overseas brands invest in selling there while new policies encourage shoppers to travel (and buy) domestically. The prospects for entering China as a global luxury beauty brand are set to keep growing as new duty-free policies, relaxed animal-testing laws and the rise of omni-channel partners and clicks & mortar stores indicate that there has never been a better time for brands to enter the Chinese market.
