Page 24 - BWConfidential24

Best of BW highlights BW Confdential delivers an electronic publication by email to subscribers every two weeks, with a focus on analysis of major issues facing the international industry, interviews with key players and insight into new trends. Here we bring you excerpts of some of our reports. To see the articles in full, log on to our website www.bwconfdential.com Beauty insight Mexico’s beauty market Russian travelers The beauty market in Mexico this year The decline in Russian travelers has been shows a mixed picture. The Mexican cited as one of the major problems for economy has had its share of challenges the travel-retail beauty industry, and over the past 18 months, including the situation is not set to get better any government-implemented tax reforms time soon. According to market-research which have seen consumers rein in frm Euromonitor International, Russian spending. These new measures include an travel saw a 15% decline in 2014. increase in the number of audits, which is “This downward trend is expected to continue in 2015 as the Russian an additional worry, especially for the prestige consumer. economy contracted in the frst quarter of the year. Consumer confdence However, prestige sales, which make up less than 10% of the beauty fell to its lowest level in six years as a result of the confict in Ukraine and market, fared better. Prestige beauty sales increased 7.1% in value in ensuing international sanctions, compounded by falling oil revenues,” 2014, says market-research company Segmenta, nearly on a par with the explains Euromonitor International head of travel Caroline Bremner. 7.7% growth recorded in 2013. Make-up was the star category last year, Falling outbound Russian demand had a knock-on effect on destinations with growth of 14.3%. far and wide, including Turkey, Greece, Switzerland and Thailand. Private label in prestige Spain’s beauty market The private-label beauty Things are fnally starting to landscape has changed look up for the Spanish beauty dramatically in just a few market. For the frst time in years. Within prestige, nearly a decade, cosmetics and especially in perfumeries, fragrance sales in the country more players have sought are beginning to rise as to emulate Sephora and consumers regain confdence Boots’ successes in the category. in the economy and begin According to research company Planet Retail, Sephora’s private-label spending again after several years of recession. sales accounted for 50% of its business in 2014. Alliance Boots’ (in In 2014, Spain’s total beauty sales decreased by 1.1% to health and beauty combined) private label share was 37%, according to $9.09bn, according to Euromonitor International. Prestige the frm. Industry sources estimate that for a private-label line, selective fragrance sales increased by 7.3% from January to May this year, beauty retailers have an operating margin of between 70 and 75%, while the make-up category witnessed growth of 6.2% during the compared with around 50% for a traditional prestige brand. period, according to NPD. 24 November-December 2015 - N°24 - BW Confidential