la biosthetique latam
DESCRIPTION
Business assessmentTRANSCRIPT
1
2
Agenda
Company History 1
2
3
Brand Assets
Business Opportunity
3
4 The Team
5 Deal
Company revenues (millions)
€ 250
For over 40 years it focused on building reputation rather than sales
Founded in 1947 by the discoveries of physiological connections between hair and skin by biochemist Marcel Contier
Sales has grown for 33 years in a row
Company History - 65 years of continuous success (1/3)
With great products and outstanding service to Salons sales boosted.
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4
Canada France Germany Austria Benelux Denmark England Greece Italy Spain Switzerland Turkey
Belarus Bosnia Bulgaria Croatia Kazakhstan Lithuania Poland Romania Russia Serbia Slovenia Ukraine
Hong Kong Malaysia Singapore Taiwan Australia New Zealand
5
Now available in Colombia to take over LATAM
Company History - 29 countries (2/3) 1
6
Company History - 8,000 salons (3/3) 1
Agenda
Company History 1
2
3
Brand Assets
Business Opportunity
7
4 The Team
5 Deal
Brand Assets – A unique set
Strong concept � Superior
product �
Better � Salon�proposition�
Premium� experience�
2
Strong Concept: “Un cabello sano solo puede nacer de un cuero cabelludo sano.”
Mismos síntomas tienen diagnósticos diferentes
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9
La falta de brillo, suavidad, la caída del cabello, la caspa, o cabellos encrespados son solo síntomas, y un mismo síntoma puede tener orígenes muy disimiles.
Por medio del entendimiento profundo del cuero cabelludo y el cabello mejoramos la estructura capilar y los resultados no solo se sienten y se ven de forma inmediata, sino que el tratamiento también actúa en profundidad contra las causas del problema. Los principios activadores capilares y biomiméticos específicos para el cabello y el cuero cabelludo contenidos en los shampoos de LA BIOSTHETIQUE mejoran la calidad capilar ya desde el lavado y ejercen una influencia positiva sobre el cuero cabelludo. A diferencia de los demás productos que son fuertes en surfactantes, La Biosthetique es de origen natural, donde tensioactivos de azúcar de origen vegetal limpian de forma suave y en profundidad, respetando el manto protector del cuero cabelludo.
Strong concept: French beauty heritage with work-class German development
Every day the eyes of the international fashion community fall on this beautiful place - the Place Charles de Gaulle in the heart of Paris. Trends are born here and top designers reside here.�
Headquarter Paris, Place de l’Etoile
They apply the latest scientific findings and the highest quality standards to produce the best possible formulas
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10
State of the Art laboratory
LA BIOSTHETIQUE products are
developed by dedicated scientists in advanced modern laboratories in Germany�
Superior product: from head to toe (2/2)
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Scalp & Hair Care�
Skin Care & Body Care�
Skin & Hair Care for Men �
Styling & Finish�
Make up Collection �
Hair Colour�
LA BIOSTHETIQUE Academy Five First-class education and training center for international LA BIOSTHETIQUE Hairdressers in the heart of Paris, Madrid, Vienna, Verona and Pforzheim
5 international Academies 65 training modules, including “Salon Management” 60 full time international trainers 150 professional independent trainers and freelancers
Better salon proposition: unprecedented support to hairdressers (1/3)
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La Biosthetique exclusivity only for Salons accounts as one of its most appealing propositions to the channel
Better salon proposition: true exclusivity to Salons (2/3)
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La Biosthetique Availability outside the Salon ebay sample: 15 listings
Kérastase Availability outside the Salon ebay sample: 1,710 listings
1 Based on German hairdresser market, the brand commands superior business results. The following figures are approximate, as some provide from surveys. • average figure of the German hairdressing market ** average figure of a survey at La Biosthetique hairdressers
Salon performance results with and without La Biosthetique
Better salon proposition: superior business results to the Salon1 (3/3)
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Average Market Salon*
La Biosthetique Salon**
La Biosthetique Salon
Average Market Salon
€53.00
€36.00
Service turnover per female client
La Biosthetique Salon
Average Market Salon
3.3
2.1
Services per visit of a female client
La Biosthetique Salon
Average Market Salon €3.00
€11.00
Retail turnover per client (both sex)
La Biosthetique Salon
Average Market Salon €170
€284
Service turnover per day and employee
La Biosthetique Salon
Average Market Salon €15.00
€58.00
Retail turnover per day and employee
European typical salon: • 100sq mts • 5 employees • $30k-$40k monthly revenues • ~$7,500 La Biosthetique sales
The Beauty Ritual® conducted in Salons help to command a superior product experience with the consumer, developing a bond with the brand that result in strong advocacy
Premium experience: spa like treatment for the client
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Agenda
Company History 1
2
3
Brand Assets
Business Opportunity
16
4 The Team
5 Deal
1 Total Hair & Nail Salons revenue in 2011 was $46b, were salon revenues is estimated at 20%. 2 Based on team analysis from L’Oreal sales and market share on the Salon channel 3 Based on EuroMonitor 4 Christian Bardin, president of cosmetics consultancy CBA Associates
White space market in Americas Total Beauty and Personal Care sales in Salons
17
Business opportunity - no brand presence in Americas (1/5) 3
Market by 2014 $80.3B4
Total Beauty Market $54B3
Market by 2014 $62.3B4
Total Beauty Market $59B3
• Year II • Revenues: $5.4M
Early Expansion • Year III
• Revenues: $13.8M
Follow on • Year IV • Revenues: $21.8M
Potential Entry on US
Colombia 2013
Miami & FL 2014
Central America Countries
US Market: Besides FL exclusivity distribution agreement, we have the right to distribute across US, with continental exclusivity based upon performance
• Year I
Pilot Countries
Business opportunity - Four steps to our expansion plan
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3
Argentina Distribution exclusivity agreement based upon performance
Continental US
Chicago, IL
Los Angeles, CA
New York, NY
San Francisco, CA
Mexico Caribbean Countries
Venezuela
Peru Ecuador
Chile
Brazil
Assumptions
▪ Gross Margin: ~62%
▪ Shelf price slightly below Kerastase
▪ Market Share: 10% in year 7 of top Salons
▪ Salon gross margin: above competitors at 40%-45%
▪ Marketing investment: 15% - 10% of gross sales
▪ U$ to EUR E/R: 1.30
▪ Salons per Sales Rep: 30
▪ Average sales per Salon: $2,200 for first year
▪ Investments: working capital, Academy, flagship salons, marketing, SG&A
La Biosthetique represents a +$40 million revenue business
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Cash Flow from Operations (millions USD)
Operating Profits (millions USD)
Financial Breakdown (year 5) Revenues (millions USD)
Expect at least a 5x terminal value on top (~1.3x revenues)
0
5
10
15
20
25
30
35
40
45
1 2 3 4 5 6 7
Other LATAM
Caribbean
Chile
Colombia
Venezuela Peru Ecuador
Florida
Mexico
(0) (0) 1
3 5
6 7
13.6%
16.4% 17.9%
-‐25%
-‐20%
-‐15%
-‐10%
-‐5%
0%
5%
10%
15%
20%
(2)
-‐
2
4
6
8
10
12
1 2 3 4 5 6 7
OperaLng Profit
Profit aOer tax
Profit aOer tax to Revenues
(3.0)
(2.0)
(1.0)
-‐
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
1 2 3 4 5 6 7
Net Cash Flow
Expected Piad out Dividend
100%
38%
5% 12%
3% 15%
27%
Our Vision��
“Become the consumer and hair dresser brand of choice at the Salon, making La Biosthetique a $100 million distribution business in Americas in five years” �
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Agenda
Company History 1
2
3
Brand Assets
Business Opportunity
21
4 The Team
5 Deal
The team - Founded by highly experienced CPG executives
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4
Raul Lamus ▪ Highly seasoned finance expert, investor, and entrepreneur. Raul worked for over 18
years at Procter & Gamble as Argentina CFO and Fabric Care Finance Director, overseeing a $1.5B operation. He complemented his skills with tax and treasury experience at Kraft LATAM. As member of New World Angels, he is an active investor and entrepreneur, with a profound passion and experience on the CPG business.
Gustavo Souss ▪ Expert in marketing, retail and strategy with strong ties to the fashion industry. He worked
for over eight years at Procter & Gamble, managing a $300 million dollar business in Beauty Care Mexico. After completing his MBA from Harvard Business School he mastered his strategic thinking working two years at McKinsey & Co. Born and raised on the heart of the fashion and textile industry through his family background, he remains strongly connected and advises some top designers on business matters.
Carlos Eduardo Orozco ▪ Seasoned manager, expert in Salon channel, Beauty products, strategy and
organizational behaviors, highly knowledgeable of north Latinamerica countries. Carlos has over 28 years of work experience as Henkel Regional President North LATAM and an independent strategic and organizational consultant. Mr. Orozco has grown Schwarzkopf division to become the second largest player in the Salon channel behind L’Oreal. He has completed several Advanced Management Education programs at Harvard, INSEAD, UCLA and Thunderbird and is an active member at WPO.
Agenda
Company History 1
2
3
Brand Assets
Business Opportunity
23
4 The Team
5 Deal
We are set to succeed Superior product, brand and proven success in 28 countries and counting
Large cash generation with 30% gross profit
Above competition trade margin and superior service into an underserved channel
Marketing efforts highly productive, well targeted at the point of sale
Lean organization, low distribution cost, better execution
Salon channel seeking out alternatives to L’Oreal 24
Back up slides�
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Agenda
Colombia Early Results 6
7 Products Line up
8 LATAM Opportunity
26
9 Flagship Salons samples
10 Competition Overview
Agenda
Colombia Early Results 6
7 Products Line up
8 LATAM Opportunity
27
9 Flagship Salons samples
10 Competition Overview
Colombia – Early Results ¤ Top team assembled
¤ Team of six high talented and passionate individual. General Manager with 15 years of CPG experience in addition to Commercial Director, Sales Coordinator and Technical and Educational expert from L’Oreal
¤ Strong rump up of sales ¤ With start of sales on January, we count with already 10 salons up and running,
adding about 5 salons per month for a monthly sales rate at $50k by June 2013 ¤ Make up to be tested as of April, representing a white space with no players supplying
salons, representing a $50k to $100k sales/month
¤ High end positioning & Image ¤ Launch event with top 22 VIP salons in Colombia introduced to the brand ¤ Celebrities presence and PR coverage ¤ Top end merchandising and visuals to decorate Salons ¤ Click here for Brand Introduction and Event videos
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Large PR Coverage
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Mauricio Leal
Alvaro Pedrazza
Kariu Peluqueria
Mapi Peluqueria Jose Botero
Outstanding salon visibility
Colombia – Facebook fun page
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Paris Hilton using La
Biosthetique
Key marketing plan elements
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3. BUYING • First month purchase order
incentive thru free training • Salon incentives to offer the
product • Launch promotion of free
make up products
7. REPURCHASE • Stylist Award Contest • Web page and online social
media services • Additional training and services
8. ADVOCACY • Attend global academy • Paris trade show trip • New products launch • Webpage with exclusive access
to events and promotions
2. BROWSING • Display prominently in top salons • Academy training for hairdressers • La Biosthetique quarterly magazine • Large visuals on Salons • La Biosthetique merchandising and
brochure materials
1. AWARENESS • Sales Reps Salon Visits • Launch event • Newsletter, FB fun page, Social media • Press Release and Beauty Editors
Association
5. USAGE • Beauty Ritual & Scalp diagnostic • In Salon back-bar differentiated services
6. REMEMBERING • Subscription letter • Share your experience with
the world
Agenda
Colombia Early Results 6
7 Products Line up
8 LATAM Opportunity
33
9 Flagship Salons samples
10 Competition Overview
Products line up: Hair Care (1/6) 7
34
Scalp & Hair Care�
Dermosthetique � Natural Cosmetic� Edition de Luxe� Cheveux Longs� Structure �
Stabilizante� Regenerante� Pellicules� Soleil � Normalisante �
Methode Vitalisante �
Sensitive�
Products line up: Skin Care (2/6)
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Skin Care & Body Care�
Dermosthetique � Natural Cosmetic� Belesthetique� Methode Essentiale �
Methode Relaxante� Methode Clarifiante � Perfection Visage� Perfection Corps� Methode Soleil �
Methode Antiage�
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Products line up: Styling (3/6)
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Styling & Finish�
Formula Laque � Crème Texture� Crème Reparatrice� Cabellos Finos �
Brillo y Acabado � Toque Final �Forma� Control � Control y Cuerpo �
7
Products line up: Men Grooming (4/6)
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Skin & Hair Care for Men�
Le Gel Douche� Le Deodarant Spray�
Le Tonique Energie� Le Styling Gel �
Le Baume Apres Rasage�
Le Crème Energie�
7
Products line up: Make up (5/6)
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Make up Collection �
Ombre à paupières� Poudre crème
ombre à paupières �
Eye Performer� Le Rouge� Vernis à
ongles �Mascara Collection�
7
Products line up: Hair Colour (6/6)
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Hair Colour�
Tint & Tone - Permanent � Color & Light - Highlifting �
Shine & Tone - Temporary� Glam Color - Temporary�
Shampoo, Conditioner, Scalp Protect, Remover, Thickener - Supplement �
Tint & Tone- Semi Permanent �
7
Initial Product Line 2012 Introduction
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Cuidado del Cabello: Protección Color �Shampoo y Acondicionador�
2012 Introduction
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Cuidado del Cabello: Suavidad y Brillo �Shampoo, Acondicionador, Mascarilla, Scalp�
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2012 Introduction
Cuidado del Cabello: Reparación �Shampoo, Acondicionador, Texturizante, Spray Regenerante, Mascarilla �
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2012 Introduction
Cuidado del Cabello: Anti-frizz �Shampoo, Acondicionador, Serum�
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2012 Introduction
Cuidado del Cabello: Línea Scalp Graso, Caído, Caspa�Shampoo, Ampolletas, Scalp�
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2012 Introduction
Styling y Acabado:�Cera Crema Mate – Brillante – Mousse - Laca��
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2012 Introduction
2012 Introduction
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Coloración del Cabello �Color Permanente & Demi-Permanente en 1 mismo tubo �Oxidantes 10, 20, 30 y 40 Vol – Decolorante 7 tonos extra rápido �
Agenda
Colombia Early Results 6
7 Products Line up
8 LATAM Opportunity
48
9 Flagship Salons samples
10 Competition Overview
49 Source: World data Bank – GDP Growth 2007-2011
LATAM opportunity: outgrowing developed countries (1/4) 8
50
GDP growth rate (CAGR 2001 – 2011) GDP per Capita (USD)
Population by Country (millions 2011)
Total LATAM: $5.7B Brazil represents 44%
GDP by Country (billions USD)
0.0 0.5 1.0 1.5 2.0 2.5
Brazil
Mexico
Argentina
Colombia
Venezuela
Chile
Peru
Ecuador
0 50 100 150 200
Brazil
Mexico
Argentina
Colombia
Venezuela
Chile
Peru
Ecuador
- 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
Brazil
Mexico
Argentina
Colombia
Venezuela
Chile
Peru
Ecuador
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%
Brazil
Mexico
Argentina
Colombia
Venezuela
Chile
Peru
Ecuador
Total LATAM: 3.7% World: 2.6% Euro Area: 1.1% North America: 1.6%
Source: World data Bank and Cepal Stats
LATAM opportunity: strong macro-economic perspective (2/4) 8
51
11.3
8.5 7.4
15.8 13.8
11.5
0 2 4 6 8
10 12 14 16 18
Hair Care Fragrances Skin Care
2010 2014
Latin America Beauty Care Market Forecast USD Billions
1 HBA Global Expo 2010
"The Latin American market for beauty and personal care products, lead by Brazil, already nearly matches the US market and has huge growth potential," Christian Bardin, president of cosmetics consultancy CBA Associates
LATAM opportunity: High growth in Beauty Care Categories (3/4) 8
52
300 111
96
56
26 12
-
50
100
150
200
250
300
Brazil Hair Care Salon Market Size 2010 Euro, millions
Salon 7%
Hair Care Mass
Market 93%
Brazil Salon vs. Mass Market 2010, %
50%
20%
50%
80%
US Brazil
Salon Products Retail Products
Salon sales against retail sales 2010, %
Opportunity on retail sales based on: • High price of products vs. mass
market; • Lack of training and qualifications
of hairdressers to sale • Inadequate portfolio; • Poor visibility of retail products at
the Salon
400,000 Total Brazil Salons
120,000 Professional Salons
800 Kerastase Salons
650 La Biosthetique
Targets
Source; GCI based on The Latin America Klein Group - E/R: Euro to R$ 2.33 for 2010
LATAM opportunity: Salon is an underdeveloped channel (4/4) 8
Agenda
Colombia Early Results 6
7 Products Line up
8 LATAM Opportunity
53
9 Flagship Salons samples
10 Competition Overview
La Biosthetique Ossig, Vienna
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9
La Biosthetique Le Salon, Amsterdam and Munich
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9
La Biosthetique Sergio, Berlin
56
9
La Biosthetique Salon White, Madrid
57
9
La Biosthetique Ruth Nowark, Bocholt
58
9
La Biosthetique Goerner & Cuber, Berlin
59
9
La Biosthetique Steinhoff, Reutlingen
60
9
La Biosthetique Frank Koster, Hamburg
61
9
La Biosthetique Ossig Salon, Vienna
62
9
La Biosthetique Lehamann & Hauser, Stuttgart
63
9
La Biosthetique Haare&Mehr, Unterhaching
64
9
La Biosthetique Coiffure Beaute, Paris
65
9
La Biosthetique Wolf’s City SPA, Mannheim
66
9
La Biosthetique H&B, Australia
67
9
La Biosthetique Josef, Switzerland
68
9
La Biosthetique Dinter, Karlsruhe
69
9
Agenda
Colombia Early Results 6
7 Products Line up
8 LATAM Opportunity
70
9 Flagship Salons samples
10 Competition Overview
Exclusivity Total Beauty Premium line Academy Flagship Salons Margin & Service Available only in Salons through expert advice
Hair, Color, Styling, Skin, Make up and Men
Top tier price through superior product performance
World-class experts deliver the highest training caliber
Posses premium Spa like spaces
High margin, long term relationships and valuable services
High Medium Low
71
Competition Overview 10
Exclusivity Total Beauty Premium line Academy Flagship Salons Margin & Service Available only in Salons through expert advice
Hair, Color, Styling, Skin, Make up and Men
Top tier price through superior product performance
World-class experts deliver the highest training caliber
Posses premium Spa like spaces
High margin, long term relationships and valuable services
High Medium Low
72
Competition Overview
La Biosthetique company success is based on: Salons as unique channel, a total beauty concept with large range of high ticket products, and heavy investment in education through its Academies to drive hairdressers advocacy
10