An exciting program, a stellar breakfast and a glimpse into the future of beauty marked The Fashion Group International’s Beauty Visionaries presentation held at The Hilton’s Mercury Ballroom in New York City on May 14, 2015. The expert panelists provided an insightful look at today’s trends and the predominance of personalization in the evolving beauty market.
 
Margaret Hayes, president, The Fashion Group International, welcomed moderator Caroline Fabrigas, president, Scent Marketing, Inc., who introduced guest speaker, April Long, executive beauty editor, Elle, and the Beauty Visionaries panel, including, Doreen Arbel, SVP-marketing, Lancôme; Katia Beauchamp, founder, Birchbox; Trudi Loren, SVP-corporate fragrance, The Estée Lauder Companies; Salvatore Mauceri, CEO, Wella North America; and Kate Oldham, SVP/GMM-beauty, lingerie and swim, Saks Fifth Avenue.
 
Fabrigas announced that the Beauty Visionaries program was the perfect opportunity to celebrate beauty’s vision, as well as the 85^th anniversary of The Fashion Group International. Scent Marketing Inc. created a signature scent for the occasion, inspired by FGI’s president, Margaret Hayes, who wanted to create a scent that was, like its membership, “fearless, purposeful, powerful, compassionate and creative.”
 
Innovation in the Beauty Market
 
April Long, executive beauty editor, Elle, provided a preamble to the discussion, noting that of the 10,000 products launched each year, only one in five is on-shelf 18 months later.
 
“We are not chasing trends, but rather representing the here and now. Just being new doesn’t guarantee success,” she said, adding that there are three types of products that enter the market:

1. The pivot products, which take pre-existing products and adapt or pivot them, like the interpretations of the Clarisonic Cleansing device. The pivot products offer an element of surprise.
2. Refinement. New launches optimize technological advances; for example, with sheer face masks in the skin care category, and fragrance refinements.
3. The lightning bolt, which includes products like Lip Venom and Biore Pore Strips.

 
“These products prove themselves and resonate with consumers via their innovation. Lightning bolt products, rather than ‘me-too’ products, make a significant impact on the market,” Long explained.
    
Fabrigas of Scent Marketing began her presentation with a look at innovation and reinvention, asking the panel to address recent disruptions in the beauty market.
 
“Our Grandiose Mascara by Lancôme was the biggest launch for us this past year. The design and the collaboration with our makeup artist took the industry by storm, with 11% of market share,” she explained.
   
Beauchamp, who co-founded Birchbox four years ago, said she and her business partner saw an opportunity to create a monthly subscription program, offering five different beauty products to customers. Customers could try a range of products and ultimately navigate the overwhelming beauty market to select their favorites.
    
Loren noted that, at The Estée Lauder Companies, the consumer is most important.
 
“The way we’re approaching the consumer is key. Putting the consumer at the center of the experience, like with Le Labo, with personalized perfumery, shows the importance of this high-touch model.”
 
Mauceri of Wella also emphasized the customer.
 
“I have managed global marketing in Europe, South America and Africa, and I’ve really learned about the lifestyles of beauty consumers,” he explained. “If you focus on specific innovations and on the biggest blockbusters, you are successful. We found that 90% of consumers color their hair. Our Color ID, which we’ve had for 20 years, delivers color on color for consumers. We’ve combined science and creativity for our colorists to use in salons and this is now becoming more mainstream.”
 
Beauty and Differentiation
 
Kate Oldham, Saks, explained how experiencing a product drives differentiation.
 
“We have created a ‘Stop and Stare’ moment for our customers with our windows at Saks. We are letting them know that there is something new for them at Saks.”
 
Arbel, in response to the topic of leading and empowering women, said, “Lancôme is celebrating their 80^th anniversary. Women are coming to the counter to look more beautiful and they leave feeling happier. That mission will not change. It will continue to drive Lancôme. We’ve elevated our image and modernity and have chosen Lupita Nyong’o as a perfect fit for Lancôme in representing happiness and self-confidence for the brand.”
    
The unique point of differentiation at Birchbox is that it is re-imaging the beauty industry forever by delivering a personalized selection of beauty brands for its customers, according to Beauchamp.
 
Loren noted the creation of new molecules introduced each year that impact the quality and performance of Estée Lauder’s fragranced products.
 
“In every case, we’re talking about creativity. The connection with the consumer through scent is always significant. Rollerballs and solids have been with us for years, but innovation comes from quality and creativity,” she said.
 
According to Mauceri, stylists need to be reached and educated.
 
“We help them create an experience for the customer in the chair, and educate them about the product and how to deliver the service,” he explained. “Stylists working with clients that have thick, coarse hair are educated appropriately in a relevant way through our educators.”
 
Mauceri also noted the impact of digital as having both an e-commerce and educational aspect, taking stylists from one level to the next to deliver higher quality and innovation; and, noted Fabrigas, salons have become entrepreneurial with this approach.
 
Oldham said Saks leverages the digital world to create stronger links to their customers, allowing associates to virtually “view their closets,” to understand their needs, what they’re buying and what they will need for the future.
 
“The digital age has given us a lot of new opportunities to reach consumers,” added Fabrigas.
 
Market Trends
 
Arbel of Lancôme emphasized product development and digital communication, adding that most innovation is coming in the makeup category.
 
Meanwhile, “highlighting and contouring are on fire this year,” she added.
 
Lancôme launched Le Duo with a dual-ended highlighter and contouring ends. The second trend was cushion technology, which is very popular in Asia. Lancôme launched Miracle Cushion in Asia and one million units sold in two months. According to Arbel, quick, fast and portable on-the-go are key factors.
 
At the same time, technology is impacting the beauty space.
 
“We’re going through this digital revolution together,” said Arbel, noting that a variety of social influences are bringing relevancy to consumers, reflecting the brand and creating authenticity. But just bricks must become clicks in this revolution; web-based companies must look outside their online worlds.
 
Beauchamp detailed why Birchbox transitioned from being solely an online entity to brick and mortar.
 
“We recognized anecdotally that the concept was changing for the beauty customer. We saw that the average Birchbox consumer was doubling her beauty product consumption, so we also wanted to try to be offline for her with unique brick and mortar. It’s a marriage of data and technology to turn consumers into purchasers of the right products.”
 
High-end niche brands are bringing the qualities of this métier into the industry, particularly in the fragrance segment, noted Loren. In the Middle East, for example, fragrance represents 76% of the beauty market. It is significant in Brazil, too, with Orientals, spices, and mixed woods coming into play in high quality products.
 
“This is important in emerging markets as well, so we are addressing all levels of consumer interest,” Loren added.
 
Traditionally, Wella has worked with fashion houses, as well as tapping into local trends, by exploring digital influences. In South Beach, for example, “we’re looking at Latin influences, and our analysts educate and train our salon stylists so they can interpret local markets. Our stylists are our biggest source of connection,” he said.
 
Saks is offering an elevated experience for its consumers, letting them know they’re in the right place for the products they want, according to Oldham.
 
“The whole store has aligned with consumers’ product needs,” she added.
 
At Lancôme, the company has expanded its portfolio and is addressing different ethnicities, skin types and foundation shades.
 
“We offer 200 different shades; and we’ve opened our portfolio as well as sought an ambassador to represent our brand. Lupita Nyong’o perfectly marries our philosophy and has brought modernity to the brand,” Arpel said.
 
Birchbox engages with more than 50 million consumers each month, so it’s no surprise when Beauchamp pointed out “consumer data is at the core of what we do.”
 
It starts with a quick beauty profile, which becomes living, breathing data.
 
“We use algorithms to adapt to your profile and customize your Birchbox,” she explained. “When you log in, we know what is relevant to you.”
 
Loren noted that while testing is a tool used to determine if a concept is viable, it should not be used without knowledge of what a consumer will love. She said that some of her fragrance partners are doing research into what drives a consumer’s attraction to a certain scent, which she referred to as “liquid emotion.”
   
At Saks, everything is put through a filter, according to Oldham.
 
“We see how our customers react when they walk into the store and we differentiate the fragrance experience for our customers, letting them know that we have everything from Le Labo to Frederic Malle and beyond,” she said.
 
Birchbox’s demographic is diverse as well, with customers ranging in age from 16 to 65; but the real emphasis is on psychographics.
 
“Our customer is by definition ‘underserved,’ because she doesn’t have time in her life,” explained Beauchamp. “She’s a multi-tasker. Our personalization ability allows us to speak to customers in six markets, and soon to be more. Using personalization, individual experience, and micro-data is highly efficient for us.”
 
The panelists agreed that being consumer-centric in creative ways and offering innovation and quality, are key. Product exclusivity, personalization and customization are all significant.
 
“It’s always important to have a 360-degree view,” concluded Fabrigas.