Western Europe: Mature and Vibrant

Much is written about the iconic companies of the beauty industry that make their corporate homes in Western Europe, a region that market data reports call “mature.” Still, that mature region continues to drive growth and innovation in the industry around the world. This report focuses on three organizations that provide structure, support and expanding opportunity to the people and companies doing business in Western Europe and beyond: Cosmetic Executive Women (CEW) UK, Cosmetic Valley in France’s Loire Valley and Cosmoprof Bologna.

Professional Development, Recognition, Philanthropy Cosmetic Executive Women (CEW) UK follows a tradition that started in the United States in 1954, crossed the Atlantic to France in 1986, and took root in the United Kingdom in 1992. Like its U.S. model, CEW (UK) has a philanthropic mission, raising money for Centrepoint, a charity that helps young, homeless women find new direction, and for Cancer and Careers, supported by Roche.

The board of directors reads like the microcosm of the industry that CEW is, and the association announced newly appointed members of its board of directors on January 25. Nancy Cruickshank, managing director, handbag.com; Jan Adcock, group publishing director, The National Magazine Company; Daniela Rinaldi, perfumery, cosmetics and concessions controller, Harvey Nichols; Tracy Stone, head of beauty buying, House of Fraser; Roisin Donnelly, senior marketing director, P&G; Debbie Lewis, commercial director, Clarins; Sally Scott, marketing director, Selfridges; Sue Peart, editor, You Magazine; and Emma Dawson, communications director, L’Oréal Luxury Products. Their terms began March 1.

“In appointing these senior women to the board, we looked to having a cross section of skill-sets representing the beauty industry,” said Caroline Neville, president, CEW (UK). Organization leadership also includes chairman Liz Garrett, Lancaster Group UK; Sarah Griffith, The Estée Lauder Companies; Aileen Taylor, Eric Salmon & Partners; Karen Berman, The Karen Berman Consultancy; Eileen Cavalier, The London College of Beauty Therapy; Trudi Collister, Aramis & Designer Fragrances; Jenny Halpern, Prince, Halpern, Ltd.; Linda Harmon, Quest International; Sarah Jezard, World Duty Free/BAA Retail; Imogen Matthews, Imogen Matthews Associates; Nicola Mendelsohn, Grey London; Jo Morrell, eve magazine; Simone Plaskow, JSL Concepts Ltd.; Rachel Reavley, Vogue; Justine Southall, National Magazine Company; and Amy Taylor, Clinique.

An ambitious program schedule has brought CEW (UK) members face-to-face with industry icons, stars of stage and screen, and members of the royal family. In 2005, Emma Soames, Jasper Conran, Elle Macpherson, Elizabeth Hurley and Sarah Jessica Parker shared their insights with members. In previous years, the Duchess of York, Ruby Wax and Liz Earle have been on the program.

For the first time, CEW (UK) will hold its own Beauty Awards this year. Just as in the United States, the Beauty Awards schedule opens with a product demonstration evening where products entered into the competition are on display for members to review and sample. It proceeds to voting by secret ballot by the group’s 500 members and the announcement of finalists. Winners will be announced at the Beauty Awards Luncheon to be held in London on April 25. More information is available at www.cewuk.co.uk.

The Beauty Event

When the ribbon is cut next month on the 39th edition of Cosmoprof, The Beauty Event, attendees will again find representatives from perfumery and cosmetics, hair care, beauty, packaging and contract manufacturing in four distinct show sectors.

The Italian-based company SoGeCos Spa was established in 1996 to manage the Cosmoprof brand. Since then, SoGeCos has developed a proactive strategy for exporting the brand throughout the world through joint-venture agreements with international organizations. Today, the brand includes Cosmoprof Asia (held in Hong Kong, China), Cosmoprof Cosmetica (Sao Paolo, Brazil), Cosmoprof North America (Las Vegas, USA) and Cosmoprof ExpoBeauty (Moscow, Russia), in addition to Cosmoprof Bologna.

In February 2005, SoGeCos became part of the BolognaFiere Group, and joined forces with ESE (European Spa Exhibition) at the end of 2005 to organize the annual European Spa exhibition in Monte Carlo (Principality of Monaco).

The 2005 edition of Cosmoprof grew by 12,000 square meters of total exhibit space in the areas dedicated to perfumery, cosmetics and accessories, hair care, beauty salons and packaging. There were 316 more exhibitors than were at the 2004 show, and the number of visitors was up by 4% over the year before, for a total 137,247 over the four days of the show.

With 52 countries exhibiting (five more than last year)—including first-time appearances at Cosmoprof from Slovenia, Iceland, Hungary, Czech Republic, the Philippines and Malaysia, growth is evident. Cosmoprof 2006 also will host no fewer than 21 national groups—including new pavilions from Japan, Greece and Egypt. But the business opportunities available here also are strengthened by the International Buyer Programme, an initiative organized by Cosmoprof, which selects the most qualified international buyers for each country and category of goods, and invites them to the fair for appointments with exhibitors. In 2006, the International Buyer Programme will bring buyers from India, Turkey, Russia and the United States, countries that are now of particular interest on the international beauty scene.

Representing a major change for the show, Cosmopack, the section of Cosmoprof dedicated to packaging and contract manufacturing, will open and close one day earlier than the rest of Cosmoprof, so representatives from the entire supply chain will be able to benefit from having one extra weekday available for pure business and focused training. New to Cosmopack this year is the organization of a round table—chaired by J.Y. Bourgeois, a French journalist with more than 30 years of experience in international packaging—offering a unique opportunity for packaging sector buyers and sellers to meet and discuss topics of mutual interest.

Also of interest for 2006 will be the presentation of the results of an international survey of leading trends in communication in perfumery points-of- sale. Conducted in partnership with POPAI (Point Of Purchase Advertising International) and TRADELAB, the survey was sent to production and distribution managers working in international companies including Shiseido, Chanel, Coty Italia, La Prairie, L’Oréal, Collistar, Douglas, Sephora and Ethos.

Competitiveness Cluster

France’s Cosmetic Valley was created in 1994 to promote synergy among cosmetics and perfumery businesses concentrated in the Orleans Loire Valley, southwest of Paris. Today, the Cosmetic Valley comprises 200 companies, three universities, dozens of public and private research operations and training organizations, 10 local government organizations and about 1,000 researchers.

“Everybody agrees that the Cosmetic Valley Competitiveness Cluster will bring great benefits for everyone,” said Daniel Guillermin, president of Shiseido France in Orleans and vice-president of the Cosmetic Valley. “The cluster is fundamental to the prestigious image of our profession. Work groups have been formed and Shiseido plays an active role in several of the recent joint projects.” Nicolas Doutriaux of LVMH-Guerlain and Gerald Guillaumet, University of Orleans, also serve as vice-presidents of the Cosmetic Valley. Alban Muller, of Alban Muller International, is the group’s president. Home to some of the most renowned names in luxury products—including Parfums Christian Dior, L’Oréal, Guerlain, Hermes, Shiseido, Paco Rabanne and Yves Saint Laurent—the Cosmetic Valley represents every aspect of product development. The activities of its companies range from the cultivation of aromatic plants and plant extraction to research, formulation, plastic injection, manufacturing, packaging and logistics.

In July 2005, the French Government officially recognized the Cosmetic Valley as a National Competitiveness Cluster. The recognition came one month after the Cosmetic Valley expanded geographically and welcomed new companies, research organizations, training centers and economic development authorities. Its purpose remains to stimulate economic development and international competitiveness through joint innovation and research projects in the areas of the beauty and well-being sciences.

Among the recent Cosmetic Valley projects, the LVMH Group plans to create a Skin and Well-Being Institute, centered on the worldwide production, distribution and product development of Parfums Christian Dior. The institute’s mission is to develop new molecules and establish a system of quality control.

The Alban Muller Group, producer of herbal extracts and natural ingredients, leads another project: Herboretum. The Herboretum is a 23-acre beauty and health garden near Orleans that is dedicated to medicinal, tinctorial and aromatic plants and plants for perfumes. The Herboretum includes a greenhouse with exotic plants, an arboretum, an orchard of rare fruit trees and a vegetable garden planted with forgotten species. The Herboretum’s mission is to be a forum where botanists, biochemists and pharmacists can collaborate in research. Another goal of the project is to become a “think-tank” for natural ingredient applications for botanical, cosmetic, pharmaceutical and health-food products.

The Cosmetic Valley continues to reinvent itself to ensure that the cluster’s vigorous economic development and global leadership are maintained. With a budget of €30 million, 12 joint research and innovation projects are already being implemented.

Pharmaceutical, medical, packaging, agricultural, waste management and biotechnology companies keen on contributing to scientific developments in the beauty industry are attracted to Cosmetic Valley. Newcomers value the location one hour from Paris, as well as the relatively low operating costs and proximity to a large number of cosmetic, perfumery and other manufacturers in the area. The nonprofit economic development organization Orleans Loire Valley Development (OVLD), an active member of the Cosmetic Valley, works to help such companies locate facilities and attract workers, facilitate setup and technology transfer, and obtain financial incentives. In 2005, OVLD helped Caudalie, a producer of skin care products based on grape seed polyphenols, set up the company’s European packaging and distribution center in Orleans. OVLD also has been assisting Bottlemate, a cosmetic packaging manufacturer from Taiwan, in opening an office in Orleans and identifying locations for future construction.

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