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Cosmetique News Forum Moscow October 2006
What is « niche » ???


Dictionary:

An open hollow in a wall (as for a statue)

A place, a job or use for which a person or a thing is best fitted (you’ve found your niche)


Marketing:

It can be a niche market, a niche product, a niche player...

A small part of...target, need, distribution etc. which has not been filled out

According to many business dictionaries, a niche is defined as any small specialized business market.
Unfortunately, small is defined in many ways and often used to avoid pursuing a given segment of the
population.

The real question here is “When is a niche not a niche”? and “What really defines small”? Is it:
• 1 million?
• 5 million?
• 15 million?




                      NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
What is « niche » ???


                                                 A niche brand is

                                                       rare

                                                    exclusive

                                                  Expensive (?)

                               gets its specificity from its originality,

                                      target a very well-defined public

                convey an image governed by its own very special special story,

                                with a unique and innovative concept.

                           A niche brand's distribution is limited to rare,
                             selective sales outlets, where prices are high.


A niche is something that you offer that sets you apart from other businesses.

It is what makes you special in the minds of current clients and it is what attracts potential new clients to
you.

                      NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Cosmetique News Forum Moscow October 2006
Some niche examples: fragrances


                                       IUNX
                                       48-50 rue de l’Université, 75 007 Paris

                                       l’Eclaireur, 3 ter rue des Rosiers, 75 004 Paris

                                       Belongs to Shiseido Group.

                                       After l’Eau Juste, l’Eau Aztèque or l’Eau Baptiste, IUNX
                                       launched l’Eau Sento,

                                       Beautiful bottles, but very high (more than 20cm)
                                       Very high prices

                                       The project Iunx didn’t meet the consumers…




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: fragrances


                                       Editions de Parfums Frédéric Malle

                                       The market, which has become too large, no longer offers
                                       perfumers (noses) the opportunity to create rare scents.

                                       The Editions de Parfums Frédéric Malle is a platform from
                                       which these artists may demonstrate their talents.

                                       It is also the occasion for the public to obtain access to an
                                       artists’ perfumery, created without norms or limits of any
                                       kind.

                                       The Editions de Parfums Frédéric Malle today gives birth to
                                       eight exceptional fragrances, each invested with an assertive
                                       personality.

                                       These authentic artistic creations are all presented in the
                                       same bottle, whose form evokes a laboratory aesthetic. Only
                                       their quality betrays a luxurious minimalism.




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: fragrances
                                      Editions de Parfums Frédéric Malle

                                      Different Stores

                                      At 37, rue de Grenelle, scientific techniques and laboratory
                                      instruments in a house of curiosities.

                                      Our secondary parisian store. 140 Avenue Victor Hugo


                                      Located 21 rue du Mont Thabor, Frédéric Malle’s atelier is now
                                      opened to the public.




                                                                               The brand is expanding in
                                                                               Europe, Asia and US




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: fragrances




                                                           Parfumerie Générale
                                                           Parfums Pierre Guillaume

                                                           Exhale your difference

                                                           Beautiful fragrances and names:

                                                           Coze
                                                           Iris Taïzo
                                                           Brûlure de rose
                                                           Intriguant patchouli
                                                           Cuir venenum etc.

                                                           Eaux de toilette, eau de parfum
                                                           Scented candles

                                                           The store had to close
                                                           A website still exists


             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: fragrances




                                                                      Les Salons du Palais Royal

                                                                      A house of perfume designed by
                                                                      Serge Lutens for Shiseido

                                                                      A world of unique perfumes that
                                                                      reflects the imagination of their
                                                                      author

                                                                      A attentive and discreet service




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: fragrances


                                                                     Les Salons du Palais Royal

                                                                     A collection of 23 fragrances

                                                                     Each year for Christmas, since 1996,
                                                                     Serge Lutens designs a new and original
                                                                     engraved bottle




  Moorish leather




                    NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: fragrances




                                                    Serge Lutens
                                                    or the Fine Art of Fragrance


                                                    Serge s created his own range of fragrances, sold in
                                                    a very limited and selective distribution.

                                                    The most recent ones: Chypre rouge, Gris Clair,
                                                    Miel de Bois, Daim Blond…

                                                    Sleek bottles, beautiful and exquisite fragrances
                                                    High priced




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: fragrances




                                                    Crazy Libellule and the Poppies

                                                    A brand imagined and designed in Paris in 2005.

                                                    Pretty boxes containing fragrances of every olfactory
                                                    kind, in the form of concretes,

                                                    They are manufactured on the South of France, in
                                                    the Provence and distributed among the best French
                                                    and English retailers.

                                                    Crazy Libelulle is a very Parisian brand, which
                                                    opens the market for solid perfumes.




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: fragrances
                                                  Juliette Has A Gun,

                                                  A New French Fragrance Line

                                                  Romano Ricci of A&R Parfums announced the
                                                  creation of a new French fragrance brand, Juliette
                                                  Has A Gun, inspired by a modernized vision of the
                                                  Shakespearean universe.

                                                  It was recently presented for competition at the
                                                  Beyond Beauty Cosmeeting.

                                                  Ricci said he wanted to create a new line of
                                                  fragrances for women who “pursue today, more than
                                                  ever, an intense desire for freedom”. The brand
                                                  plans to develop five fragrances which will be
                                                  distributed internationally.

                                                  The perfumes are created by Francis Kurkdjian. The
                                                  two first fragrances slated to come out are Lady
                                                  Vengeance and Miss Charming. The first one
                                                  features notes of Italian rose absolute, vanilla and
                                                  patchouli. The second one is composed with
                                                  Moroccan rose, wild strawberry and lychee.
                                                  They sound, to me, like the right fragrances to wear
                                                  while re-watching Baz Luhrmann's adaptation of
                                                  Romeo and Juliet!


             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: fragrances




                                                                    Issey Miyaké and Jean Paul
                                                                    Gaulthier fragrances were niche at
                                                                    launch…

                                                                    And became real successes…




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: fragrances


                                  In 2001, TERRY ended her collaboration with Yves Saint Laurent
                                  in order to devote herself entirely to the development of her brand
                                  and the design of new concepts in beauty care.

                                  The concept

                                  When TERRY talks about beauty, luxury is the first thing, which
                                  comes to her mind, because "luxury is what is rare, what is made
                                  conscientiously and consistently. It is made with care and based
                                  on know-how".
                                  by Terry adopts a new concept of luxury applied to the world
                                  of makeup and cosmetics, in which rarity and creativity are the
                                  essential raw materials.

                                  "I found the world of luxury slipping into standardization. The idea
                                  was to take the same structures and the same standards of
                                  perfection, know-how and luxury as those of Haute-Couture. But I
                                  had been feeling this need for personalization for a very long time.
                                  After the over-consumption of the Eighties, the trend toward
                                  minimalism and the revivals that marked the first half of the
                                  Nineties, I was convinced it was inevitable that we would
                                  swing back to a thirst for elegance and personalization".




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: make up



                                   Complexion
                                   So far away from methods and restraints, by Terry’s complexion
                                   products are the perfect frames of a luminous beauty. An extreme
                                   technology to reach a perfect glow

                                    Lips
                                   A total care of your lips’ beauty: precise contours, a sublimated
                                   mouth between a “colored care” and a “careful color”. Multiple-
                                   variations’ shades for ultra-shining or chic satiny effects.

                                   Eyes
                                   Elegance of a line, which enhances the pupils: lashes are
                                   stretched, eyelids are glazed with silky eye shadows, professional
                                   gestures for an intense or natural look.

                                   Nails
                                   Beautiful to your fingertips. Radiance, sensational lacquers, in
                                   motion mother-of-pearl for a vivid glamour or nimble fingers


                                   Very selective distribution, from Bon Marché in Paris to Barneys in
                                   New York, Tsum or own shop in Moscow


            NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: cosmetics



                                   The creator


                                   Caroline Wachsmuth, an ex-journalist, who has always been
                                   passionate about cosmetics, got the idea of "Doux me" when
                                   she presented an aromatherapy seminar based on the theme
                                   of natural cosmetics to the students of the Aveda Institute in
                                   New York.

                                   She devoted herself to the study of essential oils
                                   (Aromatherapy and Massage Therapy - South African College
                                   of Natural Therapies - Johannesburg, Massage Therapy and
                                   Spa Esthetics - Aveda Institute - Minneapolis).

                                   When she came back to Europe, she fulfilled her dream and
                                   gave birth to a unique skincare line that truly meant
                                   natural skincare : "Doux me".

                                   Her company, Daylily, is a member of Cosmebio, the
                                   Professional Association of Ecological and Organic Cosmetic
                                   in France.




            NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: cosmetics



                                            The "Doux me" skincare ritual: launched in November
                                            2002, the new line is a pioneer and has proved to be,
                                            from the very beginning, a new cosmetic brand infused
                                            with both ethical and sensorial values!

                                            "Doux me" allows each client to create her/his own
                                            skincare ritual by choosing among eight delicate and
                                            specific products: it is a true organic food for body
                                            and face

                                            two floral mists,
                                            two flower milk cleansers,
                                            three day and night face creams,
                                            and one eye contour.

                                            Formulated according to the ethical values of the
                                            brand, all the products are made of 100% organic
                                            essential oils, floral waters, and vegetable oils.

                                            They are adapted to all skin types, even the most fragile
                                            ones.




            NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: cosmetics



                                      Adding value to the living forest... Endless green...the
                                      earth... The river...

                                      A very strong claim...

                                      Cristina Gomes Ferreira has worked in the Brazilian
                                      Perfumery and Cosmetics segment for over 15 years now.
                                      Having a great passion for the Amazon, 3 years ago, she
                                      began an in depth study of the active ingredients present
                                      in the rich biodiversity of the forest for use in cosmetics:
                                      trips to the Forest, to the Marajo Island, visits to universities
                                      and research centers, a pursuit of state-of-the-art knowledge
                                      in cosmetics.

                                      The Amazonia Viva brand was born.

                                      Amazonia Viva is a Botanical Cosmetics line, placed in
                                      the prestige segment of the market.

                                      The products are formulated with fewer synthetic ingredients,
                                      they use no petroleum byproducts, and have a high
                                      concentration of 10% renewable botanical actives from the
                                      Amazon working in synergy with other botanical actives.

            NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: cosmetics
                                                   Amazonia Viva Cosmetics: a complete body and
                                                   hair care range, completed with Eaux de Toilette
                                                   and candles.

                                                   Cristina Gomes Ferreira works exclusively <with
                                                   forest actives that are 10% renewable, obtained
                                                   according to sustainability standards and with full
                                                   social and environmental concerns and fair trade.

                                                   Cupuassu, a native Amazonian tree 20 to 30 meters
                                                   tall, whose giant fruit bears seeds that offer a
                                                   wonderful butter of high moisturizing, nutritional and
                                                   restorative powers...

                                                   Buriti, palm that grows along the banks of the Negro
                                                   river and is known as the tree of life, one of the
                                                   richest known natural source of vitamin A precursors

                                                   Brazil nut... Whose oil is rich in vitamins A and E
                                                   and presents highly moisturizing properties

                                                   Guarana, whose extract has toning and astringent
                                                   properties

                                                   Copalba, a tree whose resin is employed as a
                                                   natural antibiotic...


            NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: cosmetics

                                                   Amazonia Viva has also a range of Eaux de Toilette
                                                   and scented candles.

                                                   All fragrances were developed with natural
                                                   essential oils native to the Amazon.

                                                   Moving against the current trend of the perfumery
                                                   industry, Amazonia Viva have high concentrations of
                                                   natural essential oils.

                                                   Roots, leaves, barks, resins, balsams that release
                                                   smells of earth, woods, forest, sun.. Unveiling an
                                                   entirely new universe of aromas.




            NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: cosmetics

                                           Voyage des Thés has been presented at Cosmeeting in
                                           September 2006 in Paris, in the niche program.
                                           Voyage des Thés was the winner for innovation.

                                           Sandra Gasmi created Voyages des Thés: a universal
                                           elixir formulated thanks to the incomparable active
                                           ingredient of green tea.

                                           Voyages des Thés is a range of unperfumed and
                                           organic care products made out of fair trade
                                           ingredients and respectful of the person and nature.

                                           The Voyage des thés project is created as the cosmetic
                                           facet of a hotel-spa concept on the roads of tea.

                                           Because the numerous and interesting virtues of green tea
                                           have been clinically proven and are so benefic to humans,
                                           the idea naturally came through to use it as a base for all
                                           the products of a cosmetic line called “ Voyage des Thés”.
                                           The Voyage des thés products are organic Ecocert
                                           certified.
                                           They mix the universal virtues of green tea with the
                                           aromatherapeuthic virtues of essential oils.




            NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: cosmetics

                                             Voyage des thés
                                             naturally beautiful with made-to-measure cosmetic
                                             products

                                             Voyage des thés cosmetic line: a synergy of 4 approaches
                                             beauty, well-being, care and nature

                                             1) Beauty: A cosmetic approach The virtues of organic
                                             green tea keep you younger longer

                                             2) Well being: An aromatherapeutic approach the 100%
                                             natural and organic Voyage des thés
                                             perfumes relax the mind

                                             3) Care: A therapeutic approach: The benefits of Voyage
                                             des thés essential
                                             oils act upon the specific needs of the body

                                             4) Nature: An ethical, environment and person friendly
                                             approach: all the ingredients contained in
                                             Voyage des Thés products are organic and Ecocert
                                             certified and Voyage des Thés urns are all
                                             made of ceramic and refillable.




            NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Some niche examples: cosmetics



                                             MIRACLE


                                             Even now, it is not entirely clear how Crème de la Mer
                                             works.

                                             For us schooled in logic, it is something of a jolt to the
                                             imagination.

                                              But facts are facts and certainly the proof can be seen on
                                             the faces of those who use it.

                                             In a short time, skin becomes softer, firmer, looks
                                             virtually creaseless. Aging lines and pores are
                                             noticeably less visible. Even the driest of complexions
                                             are healed.

                                             Now La Mer is a complete range of skin care: face, body.




            NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Cosmetique News Forum Moscow October 2006
A very special niche: love and sensuality


                                                            When cosmetics become a little naughty and
                                                            sensual… the result is a silky soft, refreshing
                                                            cream with aphrodisiac active ingredients.
                                                            Skin care for intimate use


                                                            Oh! Sensual Health Cream
                                                            A cream for women for sensual stimulation




                                                            Oh! Sensual Hot Lips Up to 40% more lip vo




              NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
A very special niche: love and sensuality



                                               SO

                                               So is a sumptuous range of products
                                               dedicated to love and sensuality. A
                                               subtle alliance of sensual tastes and
                                               fragrances.

                                               A delicate blend of natural, unique and
                                               aphrodisiac ingredients: the SO product
                                               line is the result of a collaboration
                                               between professionals and has been
                                               created to make you want to stop time
                                               and to celebrate the game of love.

                                               SO la caresse: bodypowder

                                               SO le baiser: massage oil

                                               SO l’étreinte: man balm

                                               SO l’étreinte: woman fragrance



              NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
A very special niche: love and sensuality




          Translated literally, the Japanese word SHUNGA means "Image of Spring". But SHUNGA,
          as it is more commonly known, is actually a word for Japanese works of art, specifically
          Japanese erotic paintings that were made from the 16th to 18th centuries, by reputable
          painter of the Ukiyo-e (floating world) period.

                     NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
A very special niche: love and sensuality




 The SHUNGA Erotic Art collection has been created first and foremost for genuine lovers, who
 conceive of their embrace as an art form.
 Inspired by Japanese erotic art works from the 16th to the 18th century, and by the history of the
 SHUNGA, these products act as a medium between lovers as they are about to meet in
 order to increase their peak of sexual arousal at their most intimate union.



                   NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Trend takes off


Demand for niche brands puts pressure on the mainstream industry.

Even big brands are trying to capture a new audience. The trend is definitely more toward niche brands,
giving more of a personal touch on the products in general.

For many in the niche business, the challenge is getting their products known.

Small perfume makers and niche cosmetic brands don't have the advertising budgets of their big
competitors. A lot of their business comes through word of mouth. A lot also comes from being online.
Blogs are another way to get your products out there!




                     NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Niche products continue emerging


Cosmetics and toiletries is expected to see rather uneven development in current value terms. Across
cosmetics and toiletries, a trend towards more expensive products is expected to take place, albeit to
varying degrees.

At the same time, niches of more sophisticated products are expected to form visible sales for the first
time. This trend seems to indicate that undeveloped areas cosmetics and toiletries will also emerge in the
forecast period.

Although the cosmetics industry is dominated by well established and successful global giants,
such as L'Oreal, Revlon and Estee Lauder, there is still room for launches of newer, more targeted
brands to compete for their share.

However, when these niche brands create such an impact on the market, that the larger
companies spend millions of pounds acquiring them, just like Estee Lauder acquired Aveda, it
begs the question: How can a new product establish itself and ensure its offer is unique and
attractive in such a crowded marketplace?




                     NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
What should be the strategy for a niche brand


How do you create your niche? How do you separate yourself from others in your area?


Here are some steps to take to separate you from your competition and grow your business.

•   Study your competitors.
•   Look at who is in your area and find out what they are doing that makes them special.
•   Research what services are most commonly done in your area and look for the gaps.
•   Find those services or value adding amenities that you can offer that no one else is doing. For
    example, red, rosé and white wine is being offered on all TGV trains in France by the glass: These
    little value added amenities go along way in serving the customer and has business and service
    become special in their mind.

•   Offer services that separate you from your competition. As you research your competition look
    for what you can offer as a service that separates you from the rest. Be the only one in the area
    offering a special and expensive service und use it to attract new business and set herself apart from
    the rest.

3) Research your demographics. Look at who lives in your area and find out what they like.
   Demographics can be found by visiting your local Chamber of Commerce website. They can support
   you by identifying vital statistics such as the average income, the average price of homes, what
   percentage of your potential client base is female, male, what age groups and ethnic groups are
   represented in your area, etc..




                    NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
What should be the strategy for a niche brand


4) Lastly, create your niche internally using your own philosophical approach to how you run your
   business, i.e., your values.

•   How do you want to be recognized as a company, what message do you want to send as an
    organization, what imprint will you leave, what level of customer service do you want to be known
    for?

•   It all starts with your philosophy, values and vision. Meet with your team and get everyone on
    the same page concerning your goals and values and the ways and methods you deliver customer
    service. Deliver a WOW customer service experience that exceeds the customer's expectations
    (as often the case in the US)

•   In closing, you can see there are many different factors at play when setting yourself apart from the
    competition and there are many segments of your business where you can create a customized
    niche. Take the time, do the research and set yourself apart from the rest.

•   Lastly, once you start the process don't stop there. Creating your niche is not something you
    do just once, it continues to evolve. Always look for opportunities where you can improve to
    separate yourself from the competition and be known as the place to go!




                    NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Cosmetique News Forum Moscow October 2006
What means organic?

Organic and ecocert certified (In France), it means that the products are natural. They respect the skin
and the environment.

The quality of an organic cosmetic product can be found in the selection and quality of its ingredients.

An organic cosmetic is only made out of natural ingredients (vegetal oils, flower waters, natural
waxes, essential oils).

Without any mineral oils or synthetic ingredients, an organic cosmetic can be made out of 100% active
ingredients.

Ecocert organic label certify that no parabens, phenoxyhanol, stainers, synthetic perfumes, animal raw
materials, petrochemy issued mineral oils or OGM are used in the composition of a cosmetic product and
that no test on animals in done.

And to respect environment conditionings can be recycled.



Why is nature a trend...???




                     NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Consumers: growing interest




                                WELL BEING


             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Consumers: growing interest



                            HEALTH




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Consumers: growing interest




                   Nature is essential




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Consumers: growing interest




                       The nature brings
                          Freshness




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Consumers: growing interest




                     BEAUTY




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Consumers are drawn to natural products

One of the main drivers of growth in natural cosmetics has been the consumer trend towards healthier
lifestyles.

Rightly or wrongly, good health is often associated in consumers’ minds with all things natural,
while chemicals are considered by some to be the root of all evil.

Consequently, these perceptions have given rise to demand for natural additives and ingredients used in
cosmetics.

Certain synthetic ingredients used in cosmetics have also faced considerable negative publicity,
which has only solidified consumers’ negative perceptions of chemicals. Media coverage of the possible
carcinogenic effects of phthalates and triclosan, used in hair care, oral hygiene and colour cosmetics,
have especially had an impact on consumers, encouraging them to shop for alternative products
containing natural ingredients.




                    NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Nature is very hot in consumers goods

                           Trend specialists are all of the same opinion: nature is very hot in
                           consumer goods now.

                           “From a general point of view, it is a very common consumption trend
                           now to try to rediscover natural codes, probably because inhabitants of
                           great urban areas are stressed by their daily life and feel a kind of
                           'green gap', they feel separated from natural rhythms,” explains Maryelle
                           Allemand responsible of the cosmetic department at the trend forecasting
                           agency Carlin International.

                           In western industrialized societies, the quest for natural products
                           responds to deep societal needs and is therefore bound to be one of the
                           major trends of the next decade.

                            “The desire for natural products has two consequences:

                           first, launches of botanicals-based cosmetics remain plethoric,

                           and second, cosmetics makers integrate natural symbols and images in
                           their communication, in the product's packaging and in advertising
                           material,” Maryelle Allemand continues.




             NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Everything organic?


                            The organic trend in personal care products emerged in the wake of
                            the food sector. Boosted by health, safety and environmental
                            concerns, organic foods and agriculture have grown steadily in
                            most developed markets.

                            Cosmetics and toiletries products containing natural ingredients are
                            reviving growth in maturing cosmetics markets, according to a new
                            report from Euromonitor International - "The Growth of Natural
                            Ingredients".

                            Over the past five years, developed markets, such as the United States,
                            have been facing stagnating cosmetics and toiletries sales and slowing
                            growth. In an effort to improve sales, manufacturers have capitalised on
                            growing consumer interest in health and wellness and have started to
                            invest in new products containing natural ingredients.

                            This investment looks to be paying off, with certain industry sources
                            predicting that the natural/organic skin care, hair care and colour
                            cosmetics markets will grow by an impressive average of 9% a year
                            between 2003 and 2008. This growth is expected to provide a boost to
                            the total cosmetics and toiletries sector, which Euromonitor International
                            forecasts to grow by only 1% a year to 2009.



              NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Everything organic?


Consumer are drawn to cosmetics containing natural ingredients not just because of their perceived
health benefits, but also because many believe they have higher standards of quality.

This has enabled cosmetics manufacturers to charge higher prices for natural products, thereby
injecting value into the market.

Major manufacturers have also used this perception of quality to drive packaging developments, which
convey fresher, more upscale appearances for natural products. Origins and Aveda, for example,
have achieved success by emphasising the quality of their products, which in turn have prompted smaller
producers to introduce competing products and rejuvenate their packaging.




Over the past three years, natural and organic cosmetics have blossomed on all retail shelves.
Organic cosmetics are no longer confined to organic-specialised channels but have conquered all retail
segments
All drugstores, department stores and even mass retailers offer at least one line of organic or natural
cosmetics and toiletries. With demand and offer growing at impressive rates, many websites have
specialised in the distribution of such products, essenceology.com being one of the most recent.




                   NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Labels' jungle
Apart from the Guidelines on Natural Cosmetic Products, approved by the Council of Europe in
2000, there is no official definition of natural or organic cosmetics. Each country, and sometimes,
each association or producer, may therefore propose its own definition(s) and criteria.

                                     GERMANY - BDIH was the first, in 1986, to launch a certification
                                     for natural cosmetics. At that time, the organic trend was still
                                     insignificant in the cosmetic segment and BDIH did not specifically
                                     address this aspect through certification.

                                     In order to be certified, cosmetic products must comply with a list
                                     of general principles and are also prohibited to contain certain
                                     substances such as: organic-synthetic dyes, synthetic fragrances,
                                     ethoxylised raw materials, silicones, paraffin and other petroleum
                                     products.



                                     ITALY - The Italian Organic Farming Association (AIAB) and the
                                     Institute for the Ethic Certification (ICEA) together with a group of
                                     manufacturers, have developed guidelines for natural and organic
                                     cosmetics. Certification and control procedures have to be carried
                                     out by an external independent certification body. Once certified,
                                     products can claim to be “AIAB Organic, environmental friendly
                                     beauty products” (i.e. Bio Eco cosmesi AIAB), and be labelled with
                                     the AIAB logo.


                   NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Labels' jungle                     FRANCE - The main certifier is EcoCert, who started to control
                                   cosmetic products in 2003 and now have an entire department
                                   devoted to these products.

                                   EcoCert has created its own standard for both natural and organic
                                   cosmetics:

                                   “Ecocert ECO”: 95% of total ingredients have a natural origin, 5%
                                   of total ingredients are certified organic and 50% of total vegetal
                                   ingredients are certified organic.

                                   “Ecocert BIO”: 95% of total ingredients have a natural origin, 10%
                                   of total ingredients are certified organic and 95% of total vegetal
                                   ingredients are certified organic.


                                   Furthermore, in order to promote natural and organic
                                   products in France, some companies have formed a trade
                                   association and signed the “Charte Cosmébio”, which recalls
                                   the main principles of the EcoCert standard, and allows them to
                                   label their products with another specific logo.
                                   However, while the EcoCert logo can only be applied on a duly
                                   certified product, the Cosmébio logo may also be used on a
                                   product which is not certified, provided that 60% of the company's
                                   products have obtained the EcoCert labelling.


                 NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Labels' jungle

                                   USA - There is no specific standard applicable to non-food
                                   products in the US. In its memo dated August 2005, the USDA
                                   clearly allows cosmetics and, although not specifically mentioned,
                                   dietary supplements and other non-food products to bear the
                                   USDA organic seal, provided they comply with organic standards.

                                   Three different types of labels and claims may be used:

                                   “100 percent organic”, where the product contains 100%
                                   organically produced ingredients

                                   “organic”, where the product contains at least 95% organic
                                   ingredients

                                   “made with organic ingredients”, where the product contains
                                   less than 95% organic ingredients, but in that case it is not
                                   possible to use the USDA Organic label.




                 NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Labels' jungle

                                   AUSTRALIA - The
                                   National Association for Sustainable Agriculture Australia (NASAA)
                                   is the leading organic certifier.

                                   So far, NASAA's standards were only applicable to food products.
                                   However, in response to the growing range of cosmetics, health
                                   and beauty products in the marketplace claiming 'organic' or
                                   'natural' status, NASAA has developed a draft series of
                                   Health and Beauty Care Standards




                                   UNITED KINGDOM - The Soil Association Health and Beauty
                                   Care Standard was launched in 2001 and the Soil Association also
                                   proposes certification services through the
                                   Soil Association Certification Limited.




                 NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
NICHE BRAND'S CREATION AND LAUNCH

             Margherita Ghel




 Cosmetique News Forum Moscow October 2006
The natural gesture: Margherita Ghel




 Margherita Ghel is an etiopath and eye yoga therapist. After years of practice, she decided to launch her
 own beauty brand after having developed products to accompany her therapies.

 Her idea was to create an organic skincare line, associated with the right applications inspired by Chinese
 and Indian traditions, such as eye yoga.

 Bellis Fabula is an eight unit antiaeging face and body care collection, inspired by Chinese medicine, the
 environment and diet, wose formulas include not only the Bellis, but also include jojoba oil and Chilean
 Rose Musk

 The line targets older women and is competitively priced.



 Margherita Ghel: A French organic skincare brand which is also glamorous!




                      NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
The natural gesture: Margherita Ghel




                                        Keep as you are, be yourself!

                                        To the women who dare to cope with the energetic aspects
                                        of their maturity, together with the emotions resulting from the
                                        Psychological, physical and esthetical changes,

                                        To those who wish to « blossom out » in full harmony
                                        with themselves

                                        To those who choose to look natural and fully attractive

                                        To those who « do their best » everyday to get a healthy-
                                        looking and beautiful skin, who are sensitive to their personal
                                        story and who are willing to be free with their utmost intimacy,
                                        their bodily uncertainties




               NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
The natural gesture: Margherita Ghel




                                        The story of Margherita Ghel is first of all the story of a small
                                        flower, the daisy (Bellis Perennis).

                                        The Bellis oil has been used for skin beautification since
                                        renaissance times.

                                         It is known for having a toning effect on the skin. This effect
                                        is due to its toning effect on one’s blood vessels.

                                        In addition to general skin toning and tightening, the Daisy oil
                                        has been used for firming and tightening the breasts.




               NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
The natural gesture: Margherita Ghel




                                              BellisThe Margherita Ghel body care products refer to the
                                              main component: the Daisy (Latin word « Bellis ») which
                                              was up to now used in pharmacopoeia for skin problems, and
                                              the Chile Musk Rose, which, due to its anti-oxidizing active
                                              principles, was used for the face.

                                              Margherita Ghel selected the daisy, quite unknown in beauty
                                              care, or its precious virtues the main of which is a great toning
                                              power, the skin is then more toned, radiance-boosted and
                                              dynamised.


 The BellisFabula range for the body and its specific zones, is an authentic Daisy-oil based anti-ageing
 product. It is better used by mature women who have to cope with the physiological change when they
 reach their fifties, since the ageing process damages particularly the zones of the body which loose their
 density such as the zones locate under the chin, the inside of the arms, tights and breasts.




                     NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
The natural gesture: Margherita Ghel




                                    The products are pleasant to apply. Their rich and nourishing texture
                                    makes the skin more toned and smooth.
                                    The Margherita Ghel products are great quality beauty products
                                    extracted from biological agriculture and natural plants.
                                    They are ECOCERT certified, registered under number 32600

                                    The products are presented in airless bottles for a complete
                                    protection against oxidization effects and are thus absolutely fresh.
                                    Thanks to the glass bottles, the product preservation is excellent:
                                    7 months (2 years if kept in the refrigerator)

                                    The packaging is enriched with lively little daisy flowers,
                                    symbolizing energy.




               NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
The natural gesture: Margherita Ghel




                                        POS and distribution strategy

                                        Brochures , samples and a DVD on eye yoga at points of
                                        sale explain the philosophy.

                                        In terms of distribution, Margherita Ghel is focusing on
                                        department stores to reach the maximum of consumers.

                                        The line is sold in 14 doors in France, including the
                                        Printemps department store and the Resonance chain of
                                        home and beauty products.

                                        BellisFabula is to enter Belgium, Italy and Luxemburg this
                                        fall and the US (New York) for Christmas.

                                        Prices rum from about 25€ for a face balm to 87€ for a
                                        moisturizer.



               NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
Cosmetique News Forum Moscow October 2006
NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006

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Niche Cosmetics: When Small Is Best

  • 1. Cosmetique News Forum Moscow October 2006
  • 2. What is « niche » ??? Dictionary: An open hollow in a wall (as for a statue) A place, a job or use for which a person or a thing is best fitted (you’ve found your niche) Marketing: It can be a niche market, a niche product, a niche player... A small part of...target, need, distribution etc. which has not been filled out According to many business dictionaries, a niche is defined as any small specialized business market. Unfortunately, small is defined in many ways and often used to avoid pursuing a given segment of the population. The real question here is “When is a niche not a niche”? and “What really defines small”? Is it: • 1 million? • 5 million? • 15 million? NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 3. What is « niche » ??? A niche brand is rare exclusive Expensive (?) gets its specificity from its originality, target a very well-defined public convey an image governed by its own very special special story, with a unique and innovative concept. A niche brand's distribution is limited to rare, selective sales outlets, where prices are high. A niche is something that you offer that sets you apart from other businesses. It is what makes you special in the minds of current clients and it is what attracts potential new clients to you. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 4. Cosmetique News Forum Moscow October 2006
  • 5. Some niche examples: fragrances IUNX 48-50 rue de l’Université, 75 007 Paris l’Eclaireur, 3 ter rue des Rosiers, 75 004 Paris Belongs to Shiseido Group. After l’Eau Juste, l’Eau Aztèque or l’Eau Baptiste, IUNX launched l’Eau Sento, Beautiful bottles, but very high (more than 20cm) Very high prices The project Iunx didn’t meet the consumers… NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 6. Some niche examples: fragrances Editions de Parfums Frédéric Malle The market, which has become too large, no longer offers perfumers (noses) the opportunity to create rare scents. The Editions de Parfums Frédéric Malle is a platform from which these artists may demonstrate their talents. It is also the occasion for the public to obtain access to an artists’ perfumery, created without norms or limits of any kind. The Editions de Parfums Frédéric Malle today gives birth to eight exceptional fragrances, each invested with an assertive personality. These authentic artistic creations are all presented in the same bottle, whose form evokes a laboratory aesthetic. Only their quality betrays a luxurious minimalism. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 7. Some niche examples: fragrances Editions de Parfums Frédéric Malle Different Stores At 37, rue de Grenelle, scientific techniques and laboratory instruments in a house of curiosities. Our secondary parisian store. 140 Avenue Victor Hugo Located 21 rue du Mont Thabor, Frédéric Malle’s atelier is now opened to the public. The brand is expanding in Europe, Asia and US NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 8. Some niche examples: fragrances Parfumerie Générale Parfums Pierre Guillaume Exhale your difference Beautiful fragrances and names: Coze Iris Taïzo Brûlure de rose Intriguant patchouli Cuir venenum etc. Eaux de toilette, eau de parfum Scented candles The store had to close A website still exists NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 9. Some niche examples: fragrances Les Salons du Palais Royal A house of perfume designed by Serge Lutens for Shiseido A world of unique perfumes that reflects the imagination of their author A attentive and discreet service NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 10. Some niche examples: fragrances Les Salons du Palais Royal A collection of 23 fragrances Each year for Christmas, since 1996, Serge Lutens designs a new and original engraved bottle Moorish leather NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 11. Some niche examples: fragrances Serge Lutens or the Fine Art of Fragrance Serge s created his own range of fragrances, sold in a very limited and selective distribution. The most recent ones: Chypre rouge, Gris Clair, Miel de Bois, Daim Blond… Sleek bottles, beautiful and exquisite fragrances High priced NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 12. Some niche examples: fragrances Crazy Libellule and the Poppies A brand imagined and designed in Paris in 2005. Pretty boxes containing fragrances of every olfactory kind, in the form of concretes, They are manufactured on the South of France, in the Provence and distributed among the best French and English retailers. Crazy Libelulle is a very Parisian brand, which opens the market for solid perfumes. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 13. Some niche examples: fragrances Juliette Has A Gun, A New French Fragrance Line Romano Ricci of A&R Parfums announced the creation of a new French fragrance brand, Juliette Has A Gun, inspired by a modernized vision of the Shakespearean universe. It was recently presented for competition at the Beyond Beauty Cosmeeting. Ricci said he wanted to create a new line of fragrances for women who “pursue today, more than ever, an intense desire for freedom”. The brand plans to develop five fragrances which will be distributed internationally. The perfumes are created by Francis Kurkdjian. The two first fragrances slated to come out are Lady Vengeance and Miss Charming. The first one features notes of Italian rose absolute, vanilla and patchouli. The second one is composed with Moroccan rose, wild strawberry and lychee. They sound, to me, like the right fragrances to wear while re-watching Baz Luhrmann's adaptation of Romeo and Juliet! NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 14. Some niche examples: fragrances Issey Miyaké and Jean Paul Gaulthier fragrances were niche at launch… And became real successes… NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 15. Some niche examples: fragrances In 2001, TERRY ended her collaboration with Yves Saint Laurent in order to devote herself entirely to the development of her brand and the design of new concepts in beauty care. The concept When TERRY talks about beauty, luxury is the first thing, which comes to her mind, because "luxury is what is rare, what is made conscientiously and consistently. It is made with care and based on know-how". by Terry adopts a new concept of luxury applied to the world of makeup and cosmetics, in which rarity and creativity are the essential raw materials. "I found the world of luxury slipping into standardization. The idea was to take the same structures and the same standards of perfection, know-how and luxury as those of Haute-Couture. But I had been feeling this need for personalization for a very long time. After the over-consumption of the Eighties, the trend toward minimalism and the revivals that marked the first half of the Nineties, I was convinced it was inevitable that we would swing back to a thirst for elegance and personalization". NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 16. Some niche examples: make up Complexion So far away from methods and restraints, by Terry’s complexion products are the perfect frames of a luminous beauty. An extreme technology to reach a perfect glow Lips A total care of your lips’ beauty: precise contours, a sublimated mouth between a “colored care” and a “careful color”. Multiple- variations’ shades for ultra-shining or chic satiny effects. Eyes Elegance of a line, which enhances the pupils: lashes are stretched, eyelids are glazed with silky eye shadows, professional gestures for an intense or natural look. Nails Beautiful to your fingertips. Radiance, sensational lacquers, in motion mother-of-pearl for a vivid glamour or nimble fingers Very selective distribution, from Bon Marché in Paris to Barneys in New York, Tsum or own shop in Moscow NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 17. Some niche examples: cosmetics The creator Caroline Wachsmuth, an ex-journalist, who has always been passionate about cosmetics, got the idea of "Doux me" when she presented an aromatherapy seminar based on the theme of natural cosmetics to the students of the Aveda Institute in New York. She devoted herself to the study of essential oils (Aromatherapy and Massage Therapy - South African College of Natural Therapies - Johannesburg, Massage Therapy and Spa Esthetics - Aveda Institute - Minneapolis). When she came back to Europe, she fulfilled her dream and gave birth to a unique skincare line that truly meant natural skincare : "Doux me". Her company, Daylily, is a member of Cosmebio, the Professional Association of Ecological and Organic Cosmetic in France. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 18. Some niche examples: cosmetics The "Doux me" skincare ritual: launched in November 2002, the new line is a pioneer and has proved to be, from the very beginning, a new cosmetic brand infused with both ethical and sensorial values! "Doux me" allows each client to create her/his own skincare ritual by choosing among eight delicate and specific products: it is a true organic food for body and face two floral mists, two flower milk cleansers, three day and night face creams, and one eye contour. Formulated according to the ethical values of the brand, all the products are made of 100% organic essential oils, floral waters, and vegetable oils. They are adapted to all skin types, even the most fragile ones. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 19. Some niche examples: cosmetics Adding value to the living forest... Endless green...the earth... The river... A very strong claim... Cristina Gomes Ferreira has worked in the Brazilian Perfumery and Cosmetics segment for over 15 years now. Having a great passion for the Amazon, 3 years ago, she began an in depth study of the active ingredients present in the rich biodiversity of the forest for use in cosmetics: trips to the Forest, to the Marajo Island, visits to universities and research centers, a pursuit of state-of-the-art knowledge in cosmetics. The Amazonia Viva brand was born. Amazonia Viva is a Botanical Cosmetics line, placed in the prestige segment of the market. The products are formulated with fewer synthetic ingredients, they use no petroleum byproducts, and have a high concentration of 10% renewable botanical actives from the Amazon working in synergy with other botanical actives. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 20. Some niche examples: cosmetics Amazonia Viva Cosmetics: a complete body and hair care range, completed with Eaux de Toilette and candles. Cristina Gomes Ferreira works exclusively <with forest actives that are 10% renewable, obtained according to sustainability standards and with full social and environmental concerns and fair trade. Cupuassu, a native Amazonian tree 20 to 30 meters tall, whose giant fruit bears seeds that offer a wonderful butter of high moisturizing, nutritional and restorative powers... Buriti, palm that grows along the banks of the Negro river and is known as the tree of life, one of the richest known natural source of vitamin A precursors Brazil nut... Whose oil is rich in vitamins A and E and presents highly moisturizing properties Guarana, whose extract has toning and astringent properties Copalba, a tree whose resin is employed as a natural antibiotic... NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 21. Some niche examples: cosmetics Amazonia Viva has also a range of Eaux de Toilette and scented candles. All fragrances were developed with natural essential oils native to the Amazon. Moving against the current trend of the perfumery industry, Amazonia Viva have high concentrations of natural essential oils. Roots, leaves, barks, resins, balsams that release smells of earth, woods, forest, sun.. Unveiling an entirely new universe of aromas. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 22. Some niche examples: cosmetics Voyage des Thés has been presented at Cosmeeting in September 2006 in Paris, in the niche program. Voyage des Thés was the winner for innovation. Sandra Gasmi created Voyages des Thés: a universal elixir formulated thanks to the incomparable active ingredient of green tea. Voyages des Thés is a range of unperfumed and organic care products made out of fair trade ingredients and respectful of the person and nature. The Voyage des thés project is created as the cosmetic facet of a hotel-spa concept on the roads of tea. Because the numerous and interesting virtues of green tea have been clinically proven and are so benefic to humans, the idea naturally came through to use it as a base for all the products of a cosmetic line called “ Voyage des Thés”. The Voyage des thés products are organic Ecocert certified. They mix the universal virtues of green tea with the aromatherapeuthic virtues of essential oils. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 23. Some niche examples: cosmetics Voyage des thés naturally beautiful with made-to-measure cosmetic products Voyage des thés cosmetic line: a synergy of 4 approaches beauty, well-being, care and nature 1) Beauty: A cosmetic approach The virtues of organic green tea keep you younger longer 2) Well being: An aromatherapeutic approach the 100% natural and organic Voyage des thés perfumes relax the mind 3) Care: A therapeutic approach: The benefits of Voyage des thés essential oils act upon the specific needs of the body 4) Nature: An ethical, environment and person friendly approach: all the ingredients contained in Voyage des Thés products are organic and Ecocert certified and Voyage des Thés urns are all made of ceramic and refillable. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 24. Some niche examples: cosmetics MIRACLE Even now, it is not entirely clear how Crème de la Mer works. For us schooled in logic, it is something of a jolt to the imagination. But facts are facts and certainly the proof can be seen on the faces of those who use it. In a short time, skin becomes softer, firmer, looks virtually creaseless. Aging lines and pores are noticeably less visible. Even the driest of complexions are healed. Now La Mer is a complete range of skin care: face, body. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 25. Cosmetique News Forum Moscow October 2006
  • 26. A very special niche: love and sensuality When cosmetics become a little naughty and sensual… the result is a silky soft, refreshing cream with aphrodisiac active ingredients. Skin care for intimate use Oh! Sensual Health Cream A cream for women for sensual stimulation Oh! Sensual Hot Lips Up to 40% more lip vo NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 27. A very special niche: love and sensuality SO So is a sumptuous range of products dedicated to love and sensuality. A subtle alliance of sensual tastes and fragrances. A delicate blend of natural, unique and aphrodisiac ingredients: the SO product line is the result of a collaboration between professionals and has been created to make you want to stop time and to celebrate the game of love. SO la caresse: bodypowder SO le baiser: massage oil SO l’étreinte: man balm SO l’étreinte: woman fragrance NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 28. A very special niche: love and sensuality Translated literally, the Japanese word SHUNGA means "Image of Spring". But SHUNGA, as it is more commonly known, is actually a word for Japanese works of art, specifically Japanese erotic paintings that were made from the 16th to 18th centuries, by reputable painter of the Ukiyo-e (floating world) period. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 29. A very special niche: love and sensuality The SHUNGA Erotic Art collection has been created first and foremost for genuine lovers, who conceive of their embrace as an art form. Inspired by Japanese erotic art works from the 16th to the 18th century, and by the history of the SHUNGA, these products act as a medium between lovers as they are about to meet in order to increase their peak of sexual arousal at their most intimate union. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 30. Trend takes off Demand for niche brands puts pressure on the mainstream industry. Even big brands are trying to capture a new audience. The trend is definitely more toward niche brands, giving more of a personal touch on the products in general. For many in the niche business, the challenge is getting their products known. Small perfume makers and niche cosmetic brands don't have the advertising budgets of their big competitors. A lot of their business comes through word of mouth. A lot also comes from being online. Blogs are another way to get your products out there! NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 31. Niche products continue emerging Cosmetics and toiletries is expected to see rather uneven development in current value terms. Across cosmetics and toiletries, a trend towards more expensive products is expected to take place, albeit to varying degrees. At the same time, niches of more sophisticated products are expected to form visible sales for the first time. This trend seems to indicate that undeveloped areas cosmetics and toiletries will also emerge in the forecast period. Although the cosmetics industry is dominated by well established and successful global giants, such as L'Oreal, Revlon and Estee Lauder, there is still room for launches of newer, more targeted brands to compete for their share. However, when these niche brands create such an impact on the market, that the larger companies spend millions of pounds acquiring them, just like Estee Lauder acquired Aveda, it begs the question: How can a new product establish itself and ensure its offer is unique and attractive in such a crowded marketplace? NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 32. What should be the strategy for a niche brand How do you create your niche? How do you separate yourself from others in your area? Here are some steps to take to separate you from your competition and grow your business. • Study your competitors. • Look at who is in your area and find out what they are doing that makes them special. • Research what services are most commonly done in your area and look for the gaps. • Find those services or value adding amenities that you can offer that no one else is doing. For example, red, rosé and white wine is being offered on all TGV trains in France by the glass: These little value added amenities go along way in serving the customer and has business and service become special in their mind. • Offer services that separate you from your competition. As you research your competition look for what you can offer as a service that separates you from the rest. Be the only one in the area offering a special and expensive service und use it to attract new business and set herself apart from the rest. 3) Research your demographics. Look at who lives in your area and find out what they like. Demographics can be found by visiting your local Chamber of Commerce website. They can support you by identifying vital statistics such as the average income, the average price of homes, what percentage of your potential client base is female, male, what age groups and ethnic groups are represented in your area, etc.. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 33. What should be the strategy for a niche brand 4) Lastly, create your niche internally using your own philosophical approach to how you run your business, i.e., your values. • How do you want to be recognized as a company, what message do you want to send as an organization, what imprint will you leave, what level of customer service do you want to be known for? • It all starts with your philosophy, values and vision. Meet with your team and get everyone on the same page concerning your goals and values and the ways and methods you deliver customer service. Deliver a WOW customer service experience that exceeds the customer's expectations (as often the case in the US) • In closing, you can see there are many different factors at play when setting yourself apart from the competition and there are many segments of your business where you can create a customized niche. Take the time, do the research and set yourself apart from the rest. • Lastly, once you start the process don't stop there. Creating your niche is not something you do just once, it continues to evolve. Always look for opportunities where you can improve to separate yourself from the competition and be known as the place to go! NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 34. Cosmetique News Forum Moscow October 2006
  • 35. What means organic? Organic and ecocert certified (In France), it means that the products are natural. They respect the skin and the environment. The quality of an organic cosmetic product can be found in the selection and quality of its ingredients. An organic cosmetic is only made out of natural ingredients (vegetal oils, flower waters, natural waxes, essential oils). Without any mineral oils or synthetic ingredients, an organic cosmetic can be made out of 100% active ingredients. Ecocert organic label certify that no parabens, phenoxyhanol, stainers, synthetic perfumes, animal raw materials, petrochemy issued mineral oils or OGM are used in the composition of a cosmetic product and that no test on animals in done. And to respect environment conditionings can be recycled. Why is nature a trend...??? NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 36. Consumers: growing interest WELL BEING NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 37. Consumers: growing interest HEALTH NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 38. Consumers: growing interest Nature is essential NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 39. Consumers: growing interest The nature brings Freshness NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 40. Consumers: growing interest BEAUTY NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 41. Consumers are drawn to natural products One of the main drivers of growth in natural cosmetics has been the consumer trend towards healthier lifestyles. Rightly or wrongly, good health is often associated in consumers’ minds with all things natural, while chemicals are considered by some to be the root of all evil. Consequently, these perceptions have given rise to demand for natural additives and ingredients used in cosmetics. Certain synthetic ingredients used in cosmetics have also faced considerable negative publicity, which has only solidified consumers’ negative perceptions of chemicals. Media coverage of the possible carcinogenic effects of phthalates and triclosan, used in hair care, oral hygiene and colour cosmetics, have especially had an impact on consumers, encouraging them to shop for alternative products containing natural ingredients. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 42. Nature is very hot in consumers goods Trend specialists are all of the same opinion: nature is very hot in consumer goods now. “From a general point of view, it is a very common consumption trend now to try to rediscover natural codes, probably because inhabitants of great urban areas are stressed by their daily life and feel a kind of 'green gap', they feel separated from natural rhythms,” explains Maryelle Allemand responsible of the cosmetic department at the trend forecasting agency Carlin International. In western industrialized societies, the quest for natural products responds to deep societal needs and is therefore bound to be one of the major trends of the next decade. “The desire for natural products has two consequences: first, launches of botanicals-based cosmetics remain plethoric, and second, cosmetics makers integrate natural symbols and images in their communication, in the product's packaging and in advertising material,” Maryelle Allemand continues. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 43. Everything organic? The organic trend in personal care products emerged in the wake of the food sector. Boosted by health, safety and environmental concerns, organic foods and agriculture have grown steadily in most developed markets. Cosmetics and toiletries products containing natural ingredients are reviving growth in maturing cosmetics markets, according to a new report from Euromonitor International - "The Growth of Natural Ingredients". Over the past five years, developed markets, such as the United States, have been facing stagnating cosmetics and toiletries sales and slowing growth. In an effort to improve sales, manufacturers have capitalised on growing consumer interest in health and wellness and have started to invest in new products containing natural ingredients. This investment looks to be paying off, with certain industry sources predicting that the natural/organic skin care, hair care and colour cosmetics markets will grow by an impressive average of 9% a year between 2003 and 2008. This growth is expected to provide a boost to the total cosmetics and toiletries sector, which Euromonitor International forecasts to grow by only 1% a year to 2009. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 44. Everything organic? Consumer are drawn to cosmetics containing natural ingredients not just because of their perceived health benefits, but also because many believe they have higher standards of quality. This has enabled cosmetics manufacturers to charge higher prices for natural products, thereby injecting value into the market. Major manufacturers have also used this perception of quality to drive packaging developments, which convey fresher, more upscale appearances for natural products. Origins and Aveda, for example, have achieved success by emphasising the quality of their products, which in turn have prompted smaller producers to introduce competing products and rejuvenate their packaging. Over the past three years, natural and organic cosmetics have blossomed on all retail shelves. Organic cosmetics are no longer confined to organic-specialised channels but have conquered all retail segments All drugstores, department stores and even mass retailers offer at least one line of organic or natural cosmetics and toiletries. With demand and offer growing at impressive rates, many websites have specialised in the distribution of such products, essenceology.com being one of the most recent. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 45. Labels' jungle Apart from the Guidelines on Natural Cosmetic Products, approved by the Council of Europe in 2000, there is no official definition of natural or organic cosmetics. Each country, and sometimes, each association or producer, may therefore propose its own definition(s) and criteria. GERMANY - BDIH was the first, in 1986, to launch a certification for natural cosmetics. At that time, the organic trend was still insignificant in the cosmetic segment and BDIH did not specifically address this aspect through certification. In order to be certified, cosmetic products must comply with a list of general principles and are also prohibited to contain certain substances such as: organic-synthetic dyes, synthetic fragrances, ethoxylised raw materials, silicones, paraffin and other petroleum products. ITALY - The Italian Organic Farming Association (AIAB) and the Institute for the Ethic Certification (ICEA) together with a group of manufacturers, have developed guidelines for natural and organic cosmetics. Certification and control procedures have to be carried out by an external independent certification body. Once certified, products can claim to be “AIAB Organic, environmental friendly beauty products” (i.e. Bio Eco cosmesi AIAB), and be labelled with the AIAB logo. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 46. Labels' jungle FRANCE - The main certifier is EcoCert, who started to control cosmetic products in 2003 and now have an entire department devoted to these products. EcoCert has created its own standard for both natural and organic cosmetics: “Ecocert ECO”: 95% of total ingredients have a natural origin, 5% of total ingredients are certified organic and 50% of total vegetal ingredients are certified organic. “Ecocert BIO”: 95% of total ingredients have a natural origin, 10% of total ingredients are certified organic and 95% of total vegetal ingredients are certified organic. Furthermore, in order to promote natural and organic products in France, some companies have formed a trade association and signed the “Charte Cosmébio”, which recalls the main principles of the EcoCert standard, and allows them to label their products with another specific logo. However, while the EcoCert logo can only be applied on a duly certified product, the Cosmébio logo may also be used on a product which is not certified, provided that 60% of the company's products have obtained the EcoCert labelling. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 47. Labels' jungle USA - There is no specific standard applicable to non-food products in the US. In its memo dated August 2005, the USDA clearly allows cosmetics and, although not specifically mentioned, dietary supplements and other non-food products to bear the USDA organic seal, provided they comply with organic standards. Three different types of labels and claims may be used: “100 percent organic”, where the product contains 100% organically produced ingredients “organic”, where the product contains at least 95% organic ingredients “made with organic ingredients”, where the product contains less than 95% organic ingredients, but in that case it is not possible to use the USDA Organic label. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 48. Labels' jungle AUSTRALIA - The National Association for Sustainable Agriculture Australia (NASAA) is the leading organic certifier. So far, NASAA's standards were only applicable to food products. However, in response to the growing range of cosmetics, health and beauty products in the marketplace claiming 'organic' or 'natural' status, NASAA has developed a draft series of Health and Beauty Care Standards UNITED KINGDOM - The Soil Association Health and Beauty Care Standard was launched in 2001 and the Soil Association also proposes certification services through the Soil Association Certification Limited. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 49. NICHE BRAND'S CREATION AND LAUNCH Margherita Ghel Cosmetique News Forum Moscow October 2006
  • 50. The natural gesture: Margherita Ghel Margherita Ghel is an etiopath and eye yoga therapist. After years of practice, she decided to launch her own beauty brand after having developed products to accompany her therapies. Her idea was to create an organic skincare line, associated with the right applications inspired by Chinese and Indian traditions, such as eye yoga. Bellis Fabula is an eight unit antiaeging face and body care collection, inspired by Chinese medicine, the environment and diet, wose formulas include not only the Bellis, but also include jojoba oil and Chilean Rose Musk The line targets older women and is competitively priced. Margherita Ghel: A French organic skincare brand which is also glamorous! NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 51. The natural gesture: Margherita Ghel Keep as you are, be yourself! To the women who dare to cope with the energetic aspects of their maturity, together with the emotions resulting from the Psychological, physical and esthetical changes, To those who wish to « blossom out » in full harmony with themselves To those who choose to look natural and fully attractive To those who « do their best » everyday to get a healthy- looking and beautiful skin, who are sensitive to their personal story and who are willing to be free with their utmost intimacy, their bodily uncertainties NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 52. The natural gesture: Margherita Ghel The story of Margherita Ghel is first of all the story of a small flower, the daisy (Bellis Perennis). The Bellis oil has been used for skin beautification since renaissance times. It is known for having a toning effect on the skin. This effect is due to its toning effect on one’s blood vessels. In addition to general skin toning and tightening, the Daisy oil has been used for firming and tightening the breasts. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 53. The natural gesture: Margherita Ghel BellisThe Margherita Ghel body care products refer to the main component: the Daisy (Latin word « Bellis ») which was up to now used in pharmacopoeia for skin problems, and the Chile Musk Rose, which, due to its anti-oxidizing active principles, was used for the face. Margherita Ghel selected the daisy, quite unknown in beauty care, or its precious virtues the main of which is a great toning power, the skin is then more toned, radiance-boosted and dynamised. The BellisFabula range for the body and its specific zones, is an authentic Daisy-oil based anti-ageing product. It is better used by mature women who have to cope with the physiological change when they reach their fifties, since the ageing process damages particularly the zones of the body which loose their density such as the zones locate under the chin, the inside of the arms, tights and breasts. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 54. The natural gesture: Margherita Ghel The products are pleasant to apply. Their rich and nourishing texture makes the skin more toned and smooth. The Margherita Ghel products are great quality beauty products extracted from biological agriculture and natural plants. They are ECOCERT certified, registered under number 32600 The products are presented in airless bottles for a complete protection against oxidization effects and are thus absolutely fresh. Thanks to the glass bottles, the product preservation is excellent: 7 months (2 years if kept in the refrigerator) The packaging is enriched with lively little daisy flowers, symbolizing energy. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
  • 55. The natural gesture: Margherita Ghel POS and distribution strategy Brochures , samples and a DVD on eye yoga at points of sale explain the philosophy. In terms of distribution, Margherita Ghel is focusing on department stores to reach the maximum of consumers. The line is sold in 14 doors in France, including the Printemps department store and the Resonance chain of home and beauty products. BellisFabula is to enter Belgium, Italy and Luxemburg this fall and the US (New York) for Christmas. Prices rum from about 25€ for a face balm to 87€ for a moisturizer. NICHE : TO BE OR NOT TO BE Cosmetique News Forum Moscow October 2006
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