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CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

The year 2015 has been a busy one in beauty, marked by a string of events likely to have a lasting impact on the market.

It was the year that was characterized by major acquisitions. These included what was described as beauty’s biggest deal of the decade: the announcement of Coty’s acquisition of 43 of P&G’s cosmetics and fragrance brands. Another big deal was Swiss travel retailer Dufry’s purchase of World Duty Free, hot on the heels of its takeover of Nuance in 2014. Also significant was Unilever’s series of acquisitions in prestige skincare, which included Dermalogica, Kate Somerville Skincare, Ren and Murad.

On the retail side, there was private-equity company CVC Capital Partners’ takeover of German perfumery chain Douglas. It was also the year that saw beauty players take digital a lot more seriously. L’Oréal

teamed up with US-based General Assembly, a digital training specialist, for the creation of an online learning platform for its marketing employees, while Coty acquired digital marketing firm Beamly. In addition, LVMH appointed former apple executive Ian Rogers as its first chief digital officer. Also in 2015, indie brands continued to see strong growth (partly due to digital initiatives)

and more brands—big and small—opened standalone stores. All of this came against a background of a tough economy in key developed markets, slowing growth in emerging countries, turbulence in travel retail and volatile exchange rates. In short, it was a year of much change, and one that illustrates how complex the market has become.We wish you a peaceful and prosperous New Year and we look forward to bringing you

more news, commentary and analysis in 2016.

A year of market shifts The buzz 2News roundup

Netwatch 6Social media monitor

Interview 7Lise Watier ceo Pierre Plassard

Insight 9Trend outlook

Store visit 12Sephora Beauty TIP Workshop, San Francisco, US

Oonagh PhillipsEditor in [email protected]

www.bwconfidential.com The inside view on the international beauty industry December 17, 2015 - January 6, 2016 #122

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www.bwconfidential.com - December 17, 2015 - January 6, 2016 #122 - CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

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At a glance...

Strategy

It has been a busy couple of weeks for Avon. Following news reports that the ailing firm is preparing to sell off its North American business as well as a minority stake in the parent company to Cerberus Capital Management, the company’s chairman received an open letter from a group of activist investors criticizing its recent strategy, management team and reported divestment plans.Avon issued a statement following the publication of the letter from Barington

Capital. “We remain focused on taking strategic actions to drive sustainable, profitable growth, address changing and challenging industry dynamics, create opportunity for our representatives and enhance value for all Avon shareholders,” Avon said. “This includes the actions we have taken and continue to take to drive improved performance in the North American business.”In its letter, Barington Capital called for the company’s senior management to be

replaced, criticizing current ceo Sheri McCoy as a “poor choice.” It also said it would oppose any sale of Avon’s North American activity, as well as the sale of an equity stake if terms were disadvantageous.

Chemical industry leaders DuPont and Dow Chemical have announced they are to combine in what they call a “merger of equals”, creating a joint company called DowDuPont. They then plan to spin the combined firm off into three independent, publicly traded companies specializing in agriculture, material science and specialty products respectively. DuPont’s Performance Materials business, which includes its Surlyn material used in beauty packaging, would become part of the new material science activity.The all-stock merger is expected to close in the second half of 2016, subject to regulatory

approval, with the spin off scheduled to take place within two years of completion.

Tengram Capital Partners is expanding its presence in the beauty space. The private-equity firm has made an investment in US-based specialty store chain Cos Bar. The high-end retailer, which launched in 1976, has 14 stores in affluent locations offering skincare, make-up, fragrance, bath and body, haircare and men’s products as well as tools and accessories from luxury and niche beauty brands. The investment is expected to help Cos Bar grow its store footprint as well as expand its

omnichannel and digital offer. Tengram’s other beauty investments include Laura Geller, Nest Fragrances, DevaCurl and This Works. n n n

Stay informed with our daily news headlines on www.bwconfidential.com

n Troubled times at Avon

n Tengram Capital invests in Cos Bar

n Catterton completes Steiner Leisure acquisition

n Unilever divests ethnic haircare brands

CONFIDENTIAL CONFIDENTIAL CONFIDENTIALCONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

www.bwconfidential.com - December 17, 2015 - January 6, 2016 #122 -

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n n n US private-equity firm Catterton Partners has completed its acquisition of beauty and wellness firm Steiner Leisure. Affiliates of Catterton have now acquired all outstanding shares in Bahamas-based Steiner Leisure for approximately $925m, including assumption of debt. Steiner Leisure’s portfolio includes skincare brands Elemis and Bliss.

Anglo-Dutch consumer-goods firm Unilever has sold off its Motions, Just for Me, Consort and Groom & Clean hair care and men’s grooming brands, as well as the TCB brand in Africa, to multicultural haircare specialist Strength of Nature for an undisclosed sum. The company said it remains committed to the ethnic haircare and men’s grooming

categories, and believes the brands will be able to fulfil their potential under the new owner. “We will continue to focus on the specific needs of both multicultural and male consumers with our global brands,” said Unilever North America president Kees Kruythoff.

US-based flavor and fragrance company IFF has undergone a corporate rebrand, unveiling a new website, visual identity, purpose statement and tone of voice. IFF says that the new branding initiative, which is based on its 126-year history and “commitment to discovery and pioneering firsts,” specifically supports the commercial excellence pillar of its Vision 2020 business strategy. The new branding will flex to include recent acquisitions by IFF, the company said, the

latest of which was cosmetics ingredients producer Lucas Meyer Cosmetics.

Germany-based Symrise has launched a mobile app for its fine fragrance genealogy tool, which it describes as a “family tree of fragrances.” The app enables users to access details of the most popular fragrances over the past 40 years. Fragrances are grouped into masculine and feminine categories and the nine fragrance families. Consumers can use the alphabetical index or direct search function to find a fragrance, and can add preferred scents to their favorites and share them via email.

US-based packaging firm WestRock has announced the acquisition of folded carton and litho-laminated display packaging manufacturer Cenveo Packaging. Cenveo Packaging, currently owned by Cenveo Inc, has six facilities in North America

and registered revenues of more than $190m over the past 12 months, WestRock said. The activity will be added to WestRock’s consumer packaging activity to broaden its

offer. The transaction is valued at $105m and is expected to close early in 2016, subject to regulatory approval.

Results

US specialty beauty retailer Ulta saw a 22% rise in sales in the third quarter ended October 31, to $910.7m. The sales increase was driven by double-digit traffic growth, the company said. Comparable store sales rose 12.8%, driven by 10.6% growth in the number of transactions and 2.2% growth in the average ticket size. Ulta opened 45 new stores in the quarter, ending the period with 860 branches. Its

e-commerce sales for the period rose 56.3% to $46.2m. Ulta is predicting a sales increase of between 15% and 18% for the fourth quarter. n n n

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n n n Retail

French fragrance brand Atelier Cologne opened a new boutique in Paris in December 2015, its third in the French capital and its sixth worldwide. Located at 38 Rue du Bac, the 50m2 (538ft2) shop features the brand’s signature Venetian blue storefront and industrial décor. There is also an engraving workshop, where consumers can have a leather pouch for a travel spray engraved with a name, initials or message. The store stocks Atelier Cologne’s entire product offer.Atelier Cologne also unveiled a new fragrance collection, Collection Orient, which

comprises five fragrances and is set to launch in spring 2016. The fragrances are priced at €165 for 100ml and €240 for 200ml, with a coffret comprising a 200ml fragrance, a 30ml rechargeable travel spray and leather case selling for €265.

Data

Sales of make-up palettes in Europe delivered a mixed performance in November 2015, according to data from market-research company NPD.Sales of make-up palettes in Italy and the UK witnessed double-digit growth during

the period, increasing 42% and 49% respectively. In Spain, sales of make-up palettes declined 13% in November compared with the corresponding prior-year period. In France, sales grew 3%.

People

Japanese beauty firm Pola Orbis Holdings has named a new representative director and president for its Pola Inc subsidiary, effective January 1, 2016. Yoshikazu Yokote, who has been corporate officer in charge of marketing at Pola since January this year, will assume the role. He takes over from Hiroki Suzuki, who will become a corporate adviser to the firm when he retires at the end of the year.

Italian budget beauty brand and retailer Kiko has appointed Jan Heere as general manager. He replaces Massimo Dell’Acqua, named ceo and general manager of Odissea Srl, the holding company for Kiko’s parent company Percassi, after 11 years managing the beauty brand’s development. Heere has previously worked at Inditex and Marks & Spencer. At Kiko, he reports directly to Percassi ceo Stefano Percassi. n n n

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Make-up palette sales in Europe % change Nov 2015 vs Nov 2014Country % changeFrance +3Italy +42Spain -13UK +49

Source: NPD BeautyTrends

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n n n Fragrance creation specialist Iberchem has appointed Louis Lecoeur as global sales director. Lecoeur will lead Iberchem’s global sales team and oversee the expansion of its commercial activities in key markets, the company said. Lecoeur has over 17 years experience in the sector, the majority of which were spent at Firmenich.

Launches

Yves Saint Laurent (L’Oréal) has unveiled its first exclusive fragrance collection, a line of five scents called Le Vestiaire des Parfums inspired by five iconic items from the late designer’s collections. Created as a “wardrobe,” the unisex collection comprises Tuxedo, a spicy patchouli

scent, Caban, built around pink pepper and tonka bean, Saharienne, based on neroli and white musks, Trench, a citrus and iris fragrance, and Caftan, created with incense and benzoin. Housed in tall, square heavy glass bottles and topped with black caps designed to look

like tuxedo fabric, the collection initially arrived at Bergdorf Goodman in New York in October. Launching in one or two key doors in each market, the line arrives at Galeries Lafayette Haussmann in Paris as well as Harvey Nichols and Bloomingdale’s in Dubai, UAE and NK in Stockholm, Sweden this month. The fragrances retail at €240 for 125ml.

LVMH-owned Dior is launching a reformulated version of its Diorskin Forever foundation in mid-January 2016. The foundation is claimed to provide long-lasting wear thanks to the Wear Lock complex, which combines a water- and sebum-resistant acrylic polymer that Dior says forms a film that adheres to the skin to boost hold, with a hydro-formulated polymer that creates a supple mesh to ensure comfort and flexibility. It also contains the Activ-mat complex that combines mattifying and soft-focus powders,

as well as poreless effect technology to tighten and refine pores. The foundation is priced at €50. Dior is also launching Diorskin Forever make-up base,

priced at €42.50, and a loose powder priced at €48.50.

Communication

LVMH’s Kendo Brands is launching a print and digital campaign for its Marc Jacobs Beauty brand featuring Winona Ryder. The actress will feature in print ads and a short film shot by David Sims for the brand’s 2016 campaign, featuring products from its spring collection, to launch in February at Sephora stores, selected Marc Jacobs boutiques and online.

Trade shows

Technology event CES (Consumer Technology Association), to be held in Las Vegas from January 6-9, 2016, will host its inaugural BeautyTech Summit alongside its main show. The two-day event from January 6-7 will highlight the latest technological innovations in the beauty space as well as hosting several panel discussions on subjects including virtual makeovers and integrating technology into the retail experience. n



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BW Confidential reports on what’s being said about beauty on social networks

Social media monitor

Many bloggers have commented on Moschino’s latest scent, Fresh Couture. The fragrance, which comes in a bottle that resembles a cleaning product, has been described as original and quirky. Commentators also say the bottle is likely to stand out among traditional fragrance bottles in store and grab consumers’ attention

Beauty advent calendars, of which there have been a slew of launches, are described as “big business” and great for sampling. Christmas cracker formats and tree decoration designs, which have also been trending, are seen as interesting sampling techniques.

The launch of Birchbox’s first own-beauty brand, Love of Color, has created a buzz, although bloggers wonder how this will affect relationships with partner brands.

The new Paint Can Polish by Nails Inc has been a huge hit with bloggers. Describing the product as a revolution in nail color application, the spray can innovation is expected to be a sell-out.

Glass nails, or decorative nail stickers that catch the light like a crystal, are said to be the latest Instagram trend in South Korea. Experts predict they will hit Western markets next.

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Inte

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Seven years after its exit from international markets, Canadian beauty brand Lise Watier is relaunching its export business. Company ceo Pierre Plassard, who joined the brand two years ago, updates BW Confidential on the brand’s strategy

International reboot

Why is now the right time to relaunch export?In 2007, the brand changed ownership. Instead of focusing on international markets, which was the vision of founder Lise Watier, the new shareholders wanted to develop the brand in the US; it was not successful. We attacked a very complex, expensive market without a structured approach, so after a while the shareholders decided to pull out. Today, we have our shareholders’ full support and the means to invest internationally.

What are your plans for relaunching the international business?We are targeting several geographic zones. In the Philippines we should launch by January 2016. In Australia, we will be present before year end. Thanks to the TFWA World Exhibition in Cannes, we had other contacts in Southeast Asia, notably in Indonesia and Vietnam, and in the Middle East, mainly Saudi Arabia, UAE, Kuwait and Iran. We hope to open all these countries by the beginning of 2017. It is not a race to grow sales. Today, business is very good in Canada, so we don’t need to go looking for revenues in international markets. Our idea is to build business in the right countries with the right partners, between five and 10 countries in the next five years, and slowly broaden our distribution. In Europe, we are registering our products, and we have advanced leads for online distribution. In five years, we hope international will represent 25% of sales.

What challenges do you face in relaunching internationally?It’s complicated to relaunch the international business, because even though we were present before, people forget you. It’s been nearly 10 years, so the brand has lost some of its awareness internationally. The markets are more saturated with brands trying to carve out a place. You really need to convince people of your brand positioning and execution capacity in terms of investment and human resources.

What type of distribution channel will you target internationally? We will have the same type of distribution as in Canada, prestige distribution. It could be Ulta in the US, pharmacies like Boots in the UK, traditional perfumeries in Western Europe and Russia, and department stores. We are also looking closely at e-commerce. We have our own e-commerce site in Canada and the US. We are studying the possibility of working with pure players in certain countries that could help us to develop the brand.

Will you be launching your full product offer internationally?Today we have a range of 500 skus. In international markets, we will launch a smaller range of between 250 and 350 products in make-up, skincare and a single fragrance, Neiges. Neiges was successful in many countries before 2007, and we want to maintain it in our portfolio. I want the brand to be the same in every country. n n n

Lise Watier ceo Pierre Plassard

Lise Watierl Sales: C$45m (US$33.7m)

l Sales by product category: make-up 65%; skincare 20%;

fragrance 15% l Sales by distribution

channel in Canada: pharmacies 84%

department stores 13% e-commerce 3%

l No of points of sale: 1,000 l Market share Canada: 7.4%

”Lise Watier ceo Pierre Plassard

It’s complicated to relaunch the international business.You really need to convince people of your brand positioning and execution capacity

“



Inte

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w Lise Watier ceo Pierre Plassard

s Lise Watier has 1,000 points of sale

n n n How is your domestic business performing?This year, we are up 9% in sell-in and 10% in sell-out, while the prestige market is growing at +4-5%. This is firstly linked to our growth in make-up, for which our sales are up 11%. Make-up is our core business, and we have a strong expertise and launch four collections per year. We are also seeing strong growth in skincare, which is up nearly 20%. Our skincare is growing fast thanks to our development with Canadian active ingredients, and we believe that this could resonate outside Canada.

How do you plan to grow your skincare activity?We have plenty of room for growth in skincare, and the launches this year of La Crème Sublime and Sublimessence serum have allowed us to grow strongly in the segment. At the beginning of 2016, we will launch a major product in the hydration segment, in which we are not yet truly present, with a Canadian active ingredient, Gaspésie algae.

What is your strategy in fragrance?Our fragrance business has declined 4% because of our strategic choices; we don’t have the means to support the three axes in the same way, so we have invested energy in make-up and skincare. In fragrance, we decided to concentrate on a single product, Neiges, which is ninth-ranked on the Canadian market.

Would you consider opening standalone stores?We will test the concept in 2016 in Canada with one or two stores, to see how consumers react. We haven’t yet selected locations, but probably somewhere where we are well known, a city in Quebec, like Montreal, and a city where we are not so well known, like Calgary or Vancouver, to have two different approaches. We have repositioned the brand from something that was very centered on Mrs Watier to a brand that is proud of its Canadian and Montreal origins. A standalone in Quebec would also allow us to express that and in the other cities, it would give the brand more visibility, so we are working on both possibilities. n

“

”Lise Watier ceo Pierre Plassard

We have repositioned the brand from something that was very centered on Mrs Watier to a brand that is proud of its Canadian and Montreal origins

s The brand, which has 500 skus, plans to launch a smaller range of 250-300 references internationally

s



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BW Confidential highlights 10 trends expected to dominate the industry in 2016 and beyond. Many products arriving on the market tap into several of these categories—food ingredients, technology and the environment are common threads transcending several areas highlighted, for example

Tomorrow’s top-10 trends

Trend outlook

Renewed innovation in skincareIn most markets, skincare has seen a slowdown over the past few years as beauty firms concentrated more on the fast-growing make-up category. However, pockets of growth, especially in specialized segments and niches are expected to be boosted by continued innovation. “From a branding standpoint, more brands will be coming out of micro-niches,” says Brand Growth Management principal Kelly Kovack. Masks, for example, are one area that is not expected to slow down any time soon.

Ingredients from AsiaTrend agency WGSN is predicting an ongoing focus on ingredients from Asia, which are gaining relevance in the West as brands seek new stories. WGSN highlights the use of traditional remedies by Japanese and South Korean brands especially. These include bee venom, which promotes collagen and elastin production, fermented products like rice, and ginseng, used by several South Korean brands like The History of Whoo and Sulwhasoo. The fermented product trend was launched by P&G-owned SK-II, whose story began

at a sake factory where workers had soft hands because of contact with fermented rice, but this has now been picked up by many other brands from the region.

PersonalizationConsumers are seeking more meaning and less marketing in their beauty products and are looking for an experience rather than a specific product or brand. Beauty companies, especially in the startup space, are looking

to tap into this in various ways. Machines for creating hydrogel-like masks at home using fruit and vegetables and collagen capsules are proliferating in Asia, while French startup Romy Paris

has developed Figure, an at-home skincare formulating machine that creates targeted products. Meanwhile, Italian startup Hekaté offers an online platform for personalized product formulation. In the US, fragrance firm Mix-O-Logie (pictured) recently launched a kit made up of rollerball

scents to be blended to create personalized fragrance, complete with recipe cards. Another American firm, Loli, champions the “kitchen beauty” trend, offering a monthly box filled with beauty ingredients. The web, meanwhile, is filled with DIY beauty tutorials, proving consumer interest in this segment. n n n



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n n n Seamless online/offline experiencesBlending online and offline elements of service seamlessly has been an aim for beauty brands and retailers for some time, but it is a case of easier said than done. Observers say that in store, technology should not be used for technology’s sake, but when it provides a real added service. Sephora has consistently been one of the leaders in this area, integrating

digital elements into its stores in a relevant manner that taps into consumer desires and enhances the in-store experience (see p.12 for

a visit to its latest US store concept). Kovack also highlights Paris-based niche fragrance store Nose as a good example of blending online and offline services successfully. Digital tools can be used to enhance the human experience in store, too, she says. For example with online training and digital tools, BAs have access to product information that allows them to offer more personalized consultations. Marionnaud, for example, launched Code Beauté (pictured) this year, an iPad tool that lets BAs suggest products suited to consumer tastes following a series of questions.

Ecology: no longer just a nicheThe environment is no longer just a niche category, and many of beauty’s biggest players, with L’Oréal at their head, have integrated Corporate Social Responsibility (CSR) policy at all levels of their business. Events like the recent COP21 summit in Paris, with which L’Oréal partnered, are bringing increased focus to the segment. Consumers are expected to be increasingly attentive to environmental

concerns, says UK-based Mintel. The research firm has highlighted the growing importance of water sourcing, for example, and suggests consumers are becoming more open to using products that are less water-dependent or even waterless, with millennial consumers particularly receptive to such messages. Two in five UK consumers and one third of Italians said they would be interested in double-concentrated bath or shower products, for example, according to Mintel’s research. In beauty, this will involve more interest and innovation in wipes and dry body washes as well as botanical powders, plant waters and botanical oils as water alternatives, the research firm believes.

Small is beautifulBrands have been tapping into the on-the-go trend for some time now, offering portable products to cater to consumers’ busy lifestyles. In addition, retailers like Sephora have been increasingly adding specific areas for smaller product sizes. But one aspect that has been less of a focus until recently is

waste: particularly in the make-up category, product expiry advice means that huge amounts of products are thrown away. Brands are beginning to tap into this niche, all the while offering consumers more portable solutions, which drive additional business. US-based startup TrèStiQue (pictured), founded by two former Intercos employees, is a good example. The brand’s two-in-one system of eight different products, each with integrated tools like sponges, brushes and sharpeners, means accessories and tools can be replaced as necessary, reducing waste and meaning users have fewer products to carry around. The increasing pressure consumers are under in terms of living space and free time will also push toward more mono-dose products, according to Mintel, as a means of saving space, energy and materials. n n n

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n n n Bringing tech expertise in-houseBeauty brands are great at creating and marketing their products, but when it comes to keeping up with the latest tech developments, it is easy to be left behind. Brand Growth Management’s Kovack predicts that beauty companies will increasingly tap into the tech space, via acquisitions for example, in order to master capabilities they cannot

easily develop in-house. Coty’s acquisition of digital marketing specialist Beamly is a case in point. Partnerships between tech companies and beauty houses may also become more common, like the recently announced tie-up between L’Oréal and US-based digital training specialist General Assembly.

Closer to homeWith growth rates slowing in many emerging markets, beauty companies are looking closer to home—both in terms of growth and in their purchasing decisions. In Europe, suppliers

say there is renewed demand for their products, as China in particular becomes less cost-attractive as a production base. But this trend does not just apply to sourcing: smaller brands are increasingly tapping into consumers’ desires to buy local products, mirroring what has happened in the food world. Examples include Sardinia-based skincare brand Soha (pictured), which bases its products on the Mediterranean island’s Cannonau grape and other local ingredients like obsidian stone. Smaller retailers also cite growing demand for local products, while NPD global beauty industry analyst Karen Grant predicts that even larger retailers will have to better target their offer to local demographics in future.

Beauty textiles: category crossoverCosmeto-textiles have been pitted for growth for several years, but have so far largely failed to take off. This could be set to change. Nivea now offers leggings and shorts with micro-encapsulated Q10 on supermarket shelves. UK-based Matrix APA has launched Hydra Active (pictured), a range of sleepwear micro-encapsulated with aloe vera, which it claims moisturizes the skin while you sleep. The

company is targeting airlines with the offer. With an increasing number of wellbeing brands like Rituals offering leisure clothing in addition to their cosmetics offer, this is a category with potential. In February, Messe Frankfurt will stage the second edition of its Avantex trade event for intelligent fabrics, with materials combining nanotechnology and cosmetic properties one of its areas of focus.

Halal cosmeticsNo longer just a niche, halal cosmetics are expected to be big business going forward as brands tap into demand not just in the Middle East, but in Southeast Asia and the Indian subcontinent. Some 88% of Indonesia’s population is Muslim, according to the CIA World Factbook, making it the largest Muslim population worldwide, while in

Malaysia, the proportion stands at 60%. Coupled with these nations’ growing appetite for cosmetics, the potential is huge: market-research firm Technavio anticipates a CAGR of 13.7% for the global halal cosmetics market between 2014 and 2019. While halal

beauty products are mainly offered by niche and local brands, major international companies, such as Shiseido, are beginning to tap into the segment. n


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Sephora Beauty TIP Workshop

l Opened: November 2015 l Location: San Francisco, US

l Size: 8,500ft2 (787m2)l Special features:

focus on teaching, inspiration and play with central workstation

area, a larger makeover space, new digital features and spaces

to experiment with and learn about a curated selection

of products

Sephora US is looking to enhance the in-store beauty experience with its new concept, Sephora Beauty TIP Workshop—TIP stands for “teach, inspire, play”. The concept

showcases a range of new in-store experiences combining online and offline elements that the retailer describes as the “next generation” of the Sephora store.“By fusing hands-on service and technology we’re creating a new experience that will

teach and inspire, while allowing clients to play with beauty. This is just the beginning,” said Sephora Americas president and ceo Calvin McDonald. The 8,500ft2 (787m2) store on San Francisco’s Powell Street is built around The Beauty

Workshop, a central workstation area where up to 12 customers can join group beauty classes either during or after store opening hours, access tutorials on iPad stations and view The Beauty Board, a shoppable gallery that offers user-generated content on a large digital screen. Each workstation is equipped with an iPad, USB port and Wi-Fi to encourage maximum interactivity.Near the street entrance, the Beauty Studio offers larger areas for makeovers including

Sephora + Pantone Color IQ touchscreens with technology that has been updated to include lip color and concealer, as well as new lighting. The area is staffed by three make-up artists. For skincare consultations, Sephora has introduced the Skincare Studio. The San Francisco store is one of the first to integrate the concept, which includes a sink and four workstations offering a mini facial service and a touchscreen station to access the Skincare IQ diagnostic tool.Fragrance also gets the digital touch with the addition of InstaScent technology to

Sephora’s Fragrance IQ service. The technology allows customers to explore scent families by diffusing them in the air through a nozzle. This allows shoppers to test scents before discovering individual fragrances with one of the store’s fragrance experts.The idea of being able to play in the store is also visible in the presence of new Hair Play

Station and trend tables in each category to encourage customers to explore and try out a curated assortment of products. n

Sephora aims to teach, inspire and play with its new US store concept

Fun times in store





Stor

e vi

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s The Sephora Beauty TIP Workshop has a strong focus on digital, with iPads and color and fragrance IQ technology

s The store features Sephora’s new Skincare Studio concept

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