Global Cosmetic Industry’s Post

Very interesting insights and knowledge from Cristian Musardo & Reece Crisp on re-opening LN-CC in London. Its always good to get inside a buyer's mind! Ace questions from Lucy Maguire as usual. 'If you look at the performance of our brands, you will clearly see that the brands that don’t overlap much with those big platforms are the ones that are performing well. The fact that we have a distinctive assortment that does not overlap is the way we want to protect our business.' POINT OF DIFFERENCE IN THE MARKET, POINT OF DIFFERENCE IN THE ASSORTMENTS, SMALLER ASSORTMENTS. NO WONDER CERTAIN STORES ARE STRUGGLING. EVERYONE HAS THE SAME BRAND/PRODUCT, AND BURDENED BY STOCK LEVELS. BE DISTINGUISHABLE, WHAT DO YOU STAND FOR, WHAT IS YOUR PERSONALITY? 'Multi-brand isn’t dead. Customers look for and enjoy a space where they can truly discover products, new styles, and they can discover how they combine them. At the same time, brands need [retailers] that reach a new type of customer. Both need a place like LN-CC.' EXCITE THE MIND AND THE HAND WILL REACH FOR THE POCKET. GIVE PEOPLE A REASON TO VISIT THE STORE. A UNIQUE VALUE PROPOSITION / POINT OF DIFFERENCE + INTERESTING SPACE = CUSTOMERS. 'We have an edit that is our own edit. The idea is that we don’t want to have the same assortment that others have.' VOO STORE SAID THE SAME LAST YEAR. 50% OF THEIR ASSORTMENT ARE EMERGING BRANDS. UVP! OR WE WILL ALL END UP SHOPPING AT AMAZON LOL. 'We are willing to take more risks. Going into showrooms, when brands talk about their distribution, about what stores they’re already stocked in, sometimes that actually deters us from buying. From the big brands, we actually ask them what everyone has bought and then try to steer away from it for a portion of the buy. I say to my buying team that you have to use your gut. When you’re going into showroom appointments, and you get a feeling or an emotion about products, that’s the same the customer gets when they come into our space. WOW EMOTION IS BACK. FASHION & RETAIL = PEOPLE, RELATIONSHIPS AND FEELING. NO AMOUNT OF A.I., DIGITAL ADVANCEMENTS WILL EVER REPLACE HUMANS AND EMOTION. PERIOD. 'We are culturally open, so we want to be inclusive. We feel very proud of the outcome, the store provides a very experiential shopping experience that we didn’t want to keep closed or restricted. At this moment in time it’s very important to be open and speak to more people.' SIGN OF THE TIMES - TRANSPARENCY, OPENNESS, DIALOGUE - MUCH LIKE SEEK 😂 Congratulations on opening the store.

Nice to see a Canadian brand winning in Luxury. Undoubtedly, the exit of Nordstrom has provided Holt Renfrew with some tailwinds but they are to navigate through the changing, post-pandemic consumer dynamics. They seem to be anchored in some strong strategic pillars and maintain a conservative approach around the store fleet. Continuing to route for the on-going success of Holts……#RetailStrategy, #RetailTransformation, #RetailInnovation, #OmniChannel, #DigitalIntegration, #CustomerExperience, #RetailTherapy, #RetailRoundtable, #RetailRhythm

The concept of using physical retail as a distribution strategy has been long dead, something I have been speaking about and passionate about for years. This article showcases some truely best in class examples of phygital retail. Blended environments that allow these brands to measure success in many other ways outside of making a sale. Well played. #visualmerchandising #fashion #retaildesign #retailexperience #brandexperience #brandactivation #retail #retailindustry #creativity #brand #branding #retailmarketing

Using physical retail as a pure distribution strategy has long been dead. Something I have spoken about and been passionate about for many years. This article showcases some best in class examples of those brands executing a truly amazing and connected experience for their audiences and giving the ability to measure success of physical retail outside of sales alone. Well played 🙌🏼 #visualmerchandising #fashion #retaildesign #retailexperience #brandexperience #brandactivation #retail #retailindustry #creativity #brand #branding #retailmarketing

It’s pretty wild out there for the big multi-brand stores at the moment. No wonder they’re having such a hard time, considering every bloody store carries the same product whilst trying to target the same customer. One of the main reasons for the department store doppelgänger is that their largest revenue driving super-brands are increasingly concession based, making up anywhere between 50-70% of their offer. And we all know what a concession based model means…the brand calls the shots, rendering the stores edit less nuanced. It might feel counterintuitive during times of flux, but now is not the time to play it safe. So, as the mass consolidation continues and the super-brands snatch more and more control, it’s never been more important for multi-brand stores to nail their niche. I just came back from Paris market where I was chatting with a CEO of a privately owned luxury brand, it was interesting to hear that some of the smaller multi-brand boutiques are having a wonderful time, sighting Elyse Walker and Kirna Zabete as two of the more positive stories coming out the US right now. Each store has around 7 locations and is putting down orders which match that of the biggies. I think this shows there is a growing trend towards greater curation, having a point of view and not trying to be all-things-to-all-people. Look, I get that niche doesn’t always pay the bills, and if 60% of your business is generated from concession based super-brands, then you obviously need to protect these sales. But let’s face it, nobody needs convincing to buy super-brand product, the brands themselves have done the hard work already. So it’s about the big stores being clever with how they choose to expose this product to customers without it bulldozing their entire store identity. So buy those (slightly) obscure designers and treat them like super-brands - get them in your seasonal ad campaign, lay on a VIP trunk show, hell, give them their own pop-up. Do whatever you need to do to carve your identity and separate your store from the rest. Some customers may stay for the unknown, some may stay for the familiar, but at least you’ve stood out and got them through the door.

Excellent insight!

The Five Most Important Lessons I Learned Pivoting From Premium to Luxury Retail Transitioning from premium retail to luxury has been a journey filled with valuable insights and growth. As I reflect on this pivot, one lesson stands out - many of the foundational skills I honed in premium retail have become even more crucial in the luxury sector. 2. Retail 101: The Right Product at the Right Time It's one of the oldest sayings in retail, but it remains as relevant as ever: success depends on having the right product at the right time. In fashion, this idea often translates to seasonal merchandise and the pyramid principle. However, in the luxury sector, it’s less straightforward and is typically driven by brand identity. This is where fashion trends, brand and trade marketing, along with thorough analysis and feedback, become crucial. A key aspect of getting the right product mix is balancing price point architecture along with other attributes, such as style, quality, and brand perception. It's essential to offer a range of products at different price levels to appeal to various customer segments while ensuring that each product aligns with the brand's overall identity and market positioning. Retail operates within distinct seasonal cycles, with key milestones and shopping events throughout the year. These periods are essential for trading, but underlying them is the consistent aspiration tied to both the brand and the product. This brings us back to the importance of analysing trends. Just as in fashion, there are core pieces with strong sell thru and consistent demand. Protecting these lines is critical, as they form the foundation for attracting and converting clients. Beyond these essentials, there's the fashion overlay and a touch of aspirational products that highlight the brand’s quality and allure. Identifying the right mix of these elements is crucial, and success ultimately depends on accurate forecasting and aligning with seasonal sales expectations. Look forward to my next lesson next week for those following my journey.

✨ Off-price channels offer luxury brands an opportunity to grow strategically by reaching new consumers and managing inventory sustainably, all while maintaining the exclusive allure that defines luxury. - Enhanced Customer Experience in Offline Channels: Luxury brands are reimagining their off-price outlets to deliver experiences akin to their full-price stores. These outlets are evolving into luxury destinations, designed to attract high-end consumers without diluting brand equity. Maintaining the essence of luxury is essential to retain value. - Targeting Aspirational and Premium Customers: Off-price channels offer a unique opportunity for luxury brands to connect with younger, affluent, and aspirational consumers. Far from simply offering discounts, these channels act as a powerful brand-building tool, introducing new customers to the luxury experience.Off-price outlets serve as a strategic gateway for customers who are likely to evolve into loyal, full-price clientele. - Sustainability and Inventory Management Off-price sales play a crucial role in sustainably managing excess inventory. By utilizing these channels, brands can avoid the destruction of unsold goods, contributing to ESG goals while also preserving profitability. This approach not only mitigates waste but also aligns with the growing demand for sustainability in luxury. #LuxuryStrategy #RetailInnovation #Sustainability

Are private labels the future of multibrand department stores? In other words, is the best way to sell other people's stuff to advertise and promote your own stuff? 🤔 Christine Montard from International Association of Department Stores - IADS raised the question last March when issuing a press release on our members' Private Labels, which grew on avg from 9% to 16% of turnover between '19 and '22. Private labels kill many birds with one stone. They... ➡..increase customer recognition, ➡..give full control on sustainability efforts and client data collection, ... all of this in a much more profitable model than when dealing with third-party brands (margins! costs control!). Tech analyst Benedict Evans pointed out during a IADS CEO meeting that Amazon knows that well too: Evans half-joked that he believed Jeff Bezos has a copy of Emile Zola's "The Ladies Delight" (a novel from 1883 depicting the rise of a GROUPE BON MARCHÉ : Le Bon Marché Rive Gauche et La Grande Epicerie de Paris.-look alike) with a lot of Post-it notes inside. ➡When you know exactly who are your customers and what they want, you can design and develop the exact product they need. 💡 "fun fact": if you also control other brands' offerings because you are a marketplace, that's a bonanza (or, more exactly, the beginning of troubles with Federal Trade Commission and their EU counterparts). Department stores have known this since the beginning: private labels allow to complete a third-party brand product proposition (either because their proposal is incomplete or to complete is with lower price points). The focus has renewed in recent years, with many successful initiatives: look at Sfera, a young fashion brand developed by El Corte Inglés, Dhierro, an accessible luxury brand launched by El Palacio de Hierro, and the category-specific efforts at Galeries Lafayette or Manor SA. We are going as far as to even wonder if private labels are the future for luxury department stores (if you compete on the lowest price possible without a real focus on the brand equity, a smarter competitor will inevitably appear - look at how SHEIN is decimating entry price fashion). The quintessence of that approach is, no doubt, embodied by Liberty. Figure this: less than half of the business in the group is made by selling third-party brands, and the income comes from a mix of the company's fabric arm (leading to collaborations with brands like PUMA Group and HAY, which in turn increase name recognition) and sales of their own Liberty-branded products. Their most recent success? The launch of the LBTY range, with 5 perfumes, already out of stock. The CEO, the great Adil Mehboob-Khan whom we listened to with our members last November in his office, explained to the Financial Times this week that sales are soaring and he is considering opening Liberty locations across the globe. In their case, the private label is truly a virtuous circle from A to Z. Thank you Laura Onita for quoting us!