WwD friday, april 20, 2012
NEW YORK — President George W. Bush will make a rare speaking engagement at the National Association of Chain Drug Stores’ Annual Meeting this week, and he is a fitting choice, as the mass market cosmetics business is showing its first healthy sales gains since his early days in office. Drugstore cosmetics sales rose 4 percent between 2002 and 2003 to $1.7 billion. Similarly, this year the category has gained 3.5 percent, according to data from Symphony/IRI Group, following depressed sales between 2009 and 2010. But just as his presidency was marked by economic ups and downs — the most severe downturn ignited by the shock of the 9/11 terrorist attacks — retailers coming to the meeting at The Breakers in Palm Beach, which begins Saturday, ponder industry changes that can reshape the nature of their business. “With its focus on the intersection of business, politics and policy, the NACDS Annual Meeting has established itself as the premier event for leaders in retail, pharmacy and the supplier community. President Bush’s participation as the keynote speaker in 2012 reflects and advances this event’s impressive legacy,” said Steven C. Anderson, NACDS president and chief executive officer. “President Bush led the U.S. response in some of the most critical moments in our nation’s history, and we are eager to hear his remarks at a time of no less uncertainty.” While beauty sales are thriving, it is a challenging time for the trade channel. “Former president George W. Bush will address NACDS at a most auspicious time for both the health care and beauty industries. Drug chains, such as
Walgreens, are battling against managed care providers and have built new stores less dependent on the pharmacies,” said industry consultant Allan Mottus. “In midst of this political turmoil in health care, the beauty industry is consolidating and becoming less dependent on drug chains and, assuredly, the potential acquisition of Avon by Coty could be devastating on these retailers.” More than 25 beauty marketers, and close to 60 retailer companies, will sit down in cabanas situated along the Atlantic Ocean over the four-day meeting and hammer out what the future of beauty in drugstores will look like. Should retailers continue to go more upscale with premium brands? Or should they be concerned with the exit of Beauty 360 and what that could mean for moving up in price points versus catering to a valueconscious consumer. “Wet n Wild has been the fastestgrowing top 10 beauty brand for the last 16 consecutive months,” said Markwins International’s president and chief operating officer Bill George, voicing his support of the value pricing strategy. Can the mass beauty business keep up in the digital and online shopping world? That question will be the top of mind for Wendy Liebmann, founder of WSL Strategic Retail. She said she’d be interested to see if retailers are in tune with the impact of digital and online shopping when it comes to beauty. Coty’s quest for Avon has ignited speculation about the future of the direct marketer. “Coty could use Avon’s sales representatives to sell its products,” said Mottus about one reason Coty wants to ring Avon’s bell. He said
PHOTO BY STEPHEN LEEK
Beauty to Be Top of Mind at NACDS Annual critical by mass Faye Brookman
A scene from a past NACDS Annual Meeting. that reps would be instrumental in foreign countries where Coty’s celebrity fragrance business is not as healthy as in the U.S. Avon’s hiring of former Johnson & Johnson executive Sheri McCoy as its incoming chief executive officer will also play into the meeting — McCoy is scheduled to open one of the day’s business sessions. Unofficially, the meeting kicks off tonight with a private Revlon reception and gets into full gear Saturday morn-
ing when retailers, including Walgreens’ Joe Magnacca, CVS’ Judy Sansone and Family Dollar’s Michael Bloom, discuss how suppliers can expand their business within their chains. In total, more than 2,100 industry executives will attend the event — considered the gold standard of industry brainstorming. Entertainers scheduled to appear include Chris Isaak and The Moody Blues. Celebrities are expected such as swimmer Dara Torres, the brand ambassador for AmLactin.
Arden Taps Clinique Eyes New Territory for Chubby Stick Restrepo By Julie Naughton
Elizabeth Arden has named Rebecca Restrepo as its first global makeup artist. “We searched for an artist who could inspire, educate and connect with our community and Rebecca is the perfect fit,” said Kathy Widmer, executive vice president and chief marketing officer for Elizabeth Arden Inc. “Rebecca will serve as a brand spokesperson and creative adviser on everything from educational videos to beauty consultant training.” Restrepo will also work closely with the brand on trend forecasting and editorial and film projects and she will share advice with consumers through Elizabeth Arden’s social media channels and oncounter tools. “Elizabeth Arden is a brand I’ve known and loved my whole life,” said Restrepo. “As an artist, it is exciting to partner with a brand that not only makes quality products, but also shares my passion for making beauty accessible to all women.” — J.N.
Chubby Stick Shadow Tint and the new Chubby Stick lip colors, noted Agnes Landau, senior vice president of global marketing for Clinique, are consumers in the 19- to 32-year-old range.
Clinique is focusing on a new category with its popular Chubby Stick lip franchise: eye shadow. In September, the brand will launch Chubby Stick Shadow Tint for Eyes, an eye shadow in a crayonlike form. The line will be launched globally simultaneously, with the exception of Asia, which will get the line in October. “We’ve experienced great success with our Chubby Sticks for lips since launching them last year,” said Lynne Greene, global president for Clinique, Origins and Ojon, adding that it’s the number-one lip product for Clinique. “We will add eight new lip shades to the line in June and it made perfect sense to expand the concept to the eye area. Also, we are now established as the skin care authority, which is our An ad for the new eye products. heritage — and expanding our Twelve Chubby Stick Shadow shades strategy to color.” The shadows go on in a sheer wash and will be sold, each with a suggested price of $16, noted Landau. Playful color names have buildable properties, said Greene. “We believe that this product will not only include Lavish Lilac, Mighty Moss and appeal to our existing consumers, but draw in Curvaceous Coal. While Clinique executives declined a younger demographic as well,” said Ricardo Quintero, senior vice president and global comment on projected sales, industry general manager of market development at sources estimated that the Chubby Sticks Clinique, citing the product’s portability and for lips would do $100 million at retail globally in the next year, with the Chubby youthful shade names among the factors. Among the biggest opportunity for eye products adding another $30 million at
retail globally to the overall Chubby franchise. In the U.S., they will be available in about 2,000 department and specialty store doors. Print advertising for the eye products will break in September fashion, beauty and lifestyle books. Landau noted that the brand’s North American makeup sales are up 8.3 percent this fiscal year to date, and that the lip category is up 10 percent in the same period, fueled by Chubby Stick lips. To keep the momentum going, the brand is also doing its first national TV advertising campaign for color cosmetics with a commercial for Chubby Stick lips, noted Quintero. The ad, which will begin appearing on May 7, will run for three weeks, and then will be used regionally until this fall, when another flight of national exposure is slated. A robust digital campaign, which includes digital marketing, taxi tops and taxi TV, will also break in May. One part of the digital campaign — which will be on the brand’s Facebook page, as well as clinique.com —includes a mix-and-match concept for the lip shades, showing consumers what color will result when two or three of the colors are combined. The strategy is intended to fuel multiple buys, said Landau, adding that consumers can e-mail the results to a friend in the form of a digital kiss.
Women's Wear Daily - April 20, 2012 Can the mass beauty business keep up in the digital and online shopping world? That question will be the...