Monday, September 28, 2009

BETTER WAY HIKES 2009 SALES TARGET TO BT8.6BN

       Better Way (Thailand), a leading direct-sales operator and owner of the Mistine brand, has revised its sales target for this year to Bt8.6 billion, up significantly form Bt8.1 billion set at the beginning of the year.
       Managing director Danai Deerojanawong said the new sales target had followed dramatic year-on-year growth in the third quarter, with figures 15-percent higher than those in last year's third quarter. Company sales grew 13 per cent last year from 2007.
       He said the company had also been encouraged to set the new target by growth in its exports, which would double this year to a value of about Bt300 million.
       "We've been able to open new markets for Mistine products, particularly in the Middle East and Africa, including Iran, Ghana and the Democratic Republic of the Congo. We plan to enter Mauritius by the end of this year and will turn to Ivory Coast and the UAE next year," Danai said.
       The company expects its export sales to grow at least 25 per cent next year.
       "We've achieved sales of Bt6 billion in the first nine months of this year, including exports. We expect sales for the whole year to show growth of 11-12 per cent," he said.
       Danai said the company had increased its number of sales representatives from 700,000 last year to 860,000 now.
       "We've also found the value of purchases per bill from our sales representatives has increased significantly in the third quarter, by more than 5 per cent."
       Danai said Better Way (Thailand) had set a conservative sales target for next year, with year-on-year growth of 10 per cent expected. Sales performance should be similar to this year, depending on "crucial factors", such as local political stability and oil prices.
       "We invested more than Bt100 million last year to upgrade our information-technology(IT) system, so that now we're able to analyse our costs more effectively.
       "The new system supports our Marketing, Sales and Logistics departments, helping them work more efficiently," Danai said.
       With its new IT investment, Better Way expects to shape itself to meet a new trend of "products and marketing on demand," The company will segment its customers geographically and according to their preferred types of merchandise.
       "We plan to open two new distribution centres next year in Chon Buri, which will be responsible for the Eastern Seaboard provinces and one province in the middle of the southern region," Danai said.
       Better Way will launch a new television commercial this week called "Beauty Mind", for its Mistine No 1 Diamond lipstick. Starring movie queen Petchara Chaowarat, the 45-second commercial will be screened for the first time tomorrow, on all channels.
       Part of the sales revenue will be donated to the Foundation for the Blind on Thailand.

       With its new IT investment, Better Way expects to shape itself to meet a new trend of "products and marketing on demand".

Starting from the top

       Even though the beauty industry has gone deeper and deeper into the skin to understand cellular and genetic ageing, don't overlook the surface and strengthening skin barrier function to restore a youthful looking complexion, emphasised Shiseido scientists.
       "It's as important as beauty from within to take care of the top layer of the skin because this is what you see when you look in the mirror. Asians, in particular,should consider it as a basic care because Asian skin is more sensitive, needing a strong skin barrier to weather the sun and pollution that contribute to the formation of premature wrinkles on the face," said Takanari Tsuda of Shiseido Skincare Product R&D Centre in Yokohama,Japan.
       Tsuda is one of the scientists behind the development of the newly launched Future Solution LX,which took seven years of R&D before landing at the cosmetics counters.
       The basic skincare line was developed based on Shiseido's award-winning research of how high levels of a protein called Serpin b3 negatively affects barrier function, making the skin more vulnerable to environmental aggressors.
       "Exposure to UV rays stimulates Serpin b3 production, which damages the skin barrier function. As a result the skin becomes dry and rough, which consequently leads to signs of ageing," explained Tsuda during his pr-
       sentation at the product launch, held at the Sukhothai Heritage Resort, in Sukhothai province.
       Future Solution reformulation features Shiseido's exclusive ingredient, Skingenecell 1P and a botanical blend of Asian plant extracts, including antioxidative premium Uji green tea extract, and biotech super yeast extract.
       The basic care range includes extra rich cleansing foam, concentrated balancing softener, protective day cream SPF15 and regenerating night cream.Scented with delicate notes of cherry blossom,rose and plum, the new products offer aromachology upon application.
       Using the products properly is also neglected, noted training manager Darin Youngfuengmon, who demonstrated how to whip up a rich lather of the cleansing foam for deep cleansing as well as how to massage in the cream with face-lifting movements and Japanese acupressure.
       "Basic care is not only about having quality products. Application techniques help with the absorption of ingredients, as well as lend a daily facial exercise to improve circulation and firm up the skin to make you look years younger," she said.

Osotspa keen on teen market

       Osotspa Co, a consumer products and pharmaceuticals manufacturer, is entering the cosmetics market to tap the lucrative teenage customer base.
       The 118-year-old company decided to make the move this year after conducting a market survey of Thai teenagers which revealed that they were starting to use cosmetics at much earlier age than before, said marketing director Vichien Santimahakullert.
       Foundation powder was the preferred product category for about 70% of the teenagers surveyed. The foundation market is estimated to be worth about 3-4 billion baht.
       Osotspa this week launched its "12 Plus Miracle BB Powder", a compact foundation powder, based on its research findings.
       The new product is now available from retail outlets and cosmetic shops.Direct sales will be introduced in the near future.
       The company hopes the product will help it expand into the new customer market, as well as maintain the 12 Plus brand's customer base that it has has developed over the past five years.
       The company spent 10 million baht developing the new product, with another 80 million baht to be spent on marketing it this year.
       Two members of Super Junior, the famous Korean boy band -Choi Siwon and Lee Dong Hae - and the famous actress and model Khemanit 'Pancake'Jamikorn are promoting the product.
       "After using Super Junior to promote our cologne product line, the market share of our cologne doubled to 60% in just one year," Mr Vichien said.
       The company expects sales of 12 Plus Miracle BB Powder to reach 200 million baht in the first year, rising to 500 million within three years.
       12 Plus foundation powder is made in Thailand but uses Korean ingredients,such as ziyu essence. The company will add more new product lines next month.The 12 Plus line now includes talcum powder, deodorant and cologne.
       Sales of all 12 Plus products are targeted at one billion baht for 2009. Osotspa expects the figure to double over the next three years.

Saturday, September 19, 2009

President of Avon leaving

       Avon Products Inc said on Thursday that its president, Elizabeth Smith, was leaving the beauty products company at the end of October to seek out a CEO position elsewhere.
       Smith joined Avon in January 2005 and has been president since September 2007. As president, Smith was in charge of the company's global marketing, supply chain and information technology divisions and also oversaw global sales.
       Andrea Jung has served as Avon's CEO since November 1999, according to CapitalIQ. Smith said in a statement that it was likely Jung would remain at the company's helm for some time.
       "With Andrea's commitment as a relatively young CEO to lead Avon for the foreseeable future and with her full support, the time is right for me to seek the next step of my career outside of Avon,"she said.
       Stifel Nicolaus analyst Mark Astrachan,said he thinks the announcement indicates that Jung will remain in her current role for the foreseeable future.
       "While we believe the departure of Ms Smith has the potential to create near-term business disruptions, we believe momentum in representative growth will continue to positively contribute to improving revenue and operating profit trends over the balance of 2009 and 2010," Astrachan wrote in a client note.
       Avon, which sells its products mostly by catalogue and door-to-door sales representatives, said it had no immediate plans to name a replacement for Smith.
       A slowdown in discretionary spending during the recession has squeezed demand for Avon's cosmetics and fragrances, so the company has started to offer more products at lower prices.
       In July the New York-based company said it would cut about 1,200 jobs, or about 2.8% of its global staff, by 2013 as part of a turnaround effort designed to save $200 million by 2012 to 2013.
       The job cuts exclude sales representatives.

Tuesday, September 15, 2009

Japanese Kinka cosmetics enter shopping malls

       Playmaxx, the sole distributor in Thailand of Japanese Kinka-brand gold-mixed cosmetics, will expand its distribution channels by entering shopping malls in a bid to increase sales 10-15 per cent.
       To date, it has been relying on a call-centre system for sales.
       Vice president Pornpimol Silakupt yesterday said the company began importing Kinka products early this year. There has been a good market response, with revenue of roughly Bt1 million a month generated despite the reliance on call-centre sales.
       Playmaxx will sell Kinka products over the counter for the first time in Siam Paragon by the end of this month. It expects to have a second counter in a high-end shopping mall later this year and plans thereafter to increase its counters by two locations every year.
       "We expect our sales to increase 10-15 per cent from roughly Bt1 million monthly after we expand into shopping malls. Our revenue target this year is Bt15 million," she said.
       In the first stages of marketing Kinka products in Thailand, Playmaxx has focused on giving out free samples. It now plans to begin advertising on television. Hakuichi, the manufacturer of Kinka, is considering approval for television commercials to be shot in Thailand.
       Kinka products are premium cosmetics in the Japanese market, where it is the leading brand in the gold-mixed cosmetics segment. All Kinka products have platinum as a main ingredient.
       Kinka has more than 30 products selling in Japan. Playmaxx has imported 12 of them for local sales, including skincare and makeup products. It plans to bring in another five products next year.
       Pornpimol said Playmaxx was also interested in expanding its distribution channels into spa-therapy centres. It is negotiating with some high-end spa centres and expects an early outcome.
       Playmaxx intends to market Kinka products through three distribution channels: the call-centre system, which will continue to serve clients upcountry; shopping malls; and spa centres, contributing 40 per cent, 50 per cent and 10 per cent of revenue, respectively. The company expects sales to grow 10 per cent next year.
       "We target consumers who are using premium brands priced at more than Bt10,000 apiece. We hope to persuade them to switch to our brand, which offers better value if you compare quantity with price," she said.
       Kinka's prices range from Bt2,000 to Bt7,000 per item.

Sunday, September 13, 2009

SEARCHING FOR BEAUTY IN SEOUL

       Wandering around Myeongdong or Ewha Women's University - two of Seould's better-known shopping areas - you're likely to run into more foreign shoppers than locals. It's common to hear salespeople shouting out, "Iratshaimase!" - Japanese for "welcome".
       Skinfood, one of the big local brands, promotes its skincare products by claiming the Thai royal family among its loyal customers.
       For years, travelling in South Korea meant exploring only its beautiful heritage and cultural attractions, but more recnetly, the ountry has m ad headway in packaging new options for visitors by promoting cosmetics and other beauty-related treatments.
       The cosmetics industry is expected to grow approximately 6 per cent this year, while its market size will reach around 7 trillion won (Bt194 million), according to Amore Pacific, the country's largest cosmetics producer.
       Amore Pacific says this growth was likely not only because of the rising popularity of high-end products, but also due to anticipated brisk sales of min-d-to low-priced beauty brands, which foreign shoppers tend to favour.
       The craze over Korean beauty products among foreign nationals, especially other Asians, is especially evident in Myeongdong, an area where there is a particular focus on so-called "brand cosmetics shops".
       Leading brands include Missha, Face Shop, Etude House (affilia wiht Amore Pacific), Skinfood, and newconer Nature Republic.
       The so-called hallyu of cosmetics was first initiated in 2005 by the huge popularity of BB (Blemish Balm) crdam.
       Although BB crema is a German skin-care product, it quickly becme a hot make-up item in Asia. Its popularity soared further with numerous celebrity endorsements.
       Referred to as "Teh secret fo Korean actresses", who are extremely popular thoughout Aisa, BB cream has become a favourite souvenir of Asian shoppers to buy for friends and family.
       "We have been selling more than 2,000 BB creams daily ever since the products became popular among Japanese tourists for their afforable prince and good quality," says Park Sung-eun, the maketing communication manager for Etude House.
       "Customers armed with a 'wish list' typically buy more than five of them."
       Other pouplar beauty products included mail polish and face masks - at a cost of 1,000 to 4,000 won - na danti - ageing products, according to the Face Shop.
       Nature Republic recently opened a store in one of the hottest spots in Myeongldong and named it the Myeongdong World Store.
       The five-storey building is intended for tourists - the second floor is geared specially toward Japanese tourists, while the third caters for Chinese and Southeast Asians. Free interpreatation as well as Internet services are provided.
       Even at stors that are not specifically organised for foreing consumers, brands often employ staff who can speak Japanese or Chiense.
       "Some of our employees have lived in China or Japan," says Seo from the Face Shop. Most other sales staff know basic Japanese or Chinese, including consmetics-specific phrases like "moisturise" and "good for anti-ageing", she adds.
       Many brand cosmetics use top stars as models to promote their products. Nature Republic recently signed singer Rain to promote a line of products under his own name. In the month after the line was launched, Nature Republic earned 700 millon won in sales.
       The Face Shop had had a similarly successful experience. Whe 40,000 posters of heartthrob actor Bae Yong-joon were handed ot as complimentary gifts to shoppers, they quickly ran out.
       After a busy day of shopping, tourists can get a quick makeover - simple beauty treatments are readily available in the shopping districts, including the Gangnam area, where there are many small, specialised salons that offer manicures and pedicures for as little a 10,000 won.
       Also offered are eyelash extensions and semi-permanent makeup - mineral-based permanent pigments placed in the dermal layer of the skin, the effect lasting months to years.

Saturday, September 12, 2009

Complicity of time and fragrance

       Leading Swiss watchmaker Omega has introduced its first fragrance for men with the name Omega Aqua Terra.Omega and fragrance: Do they have anything in common? More than you might think.
       Like the Omega watch, the fragrance conveys the essence of the wearer's personality. Just as there is a subtle complicity between the watch and its owner, there is an understated bond between a man and the fragrance he chooses.
       His watch is the first accessory he puts on in the morning and the last one he takes off at night (if,indeed, he takes it off). He also puts his fragrance on before he leaves the house in the morning and it will be an intimate expression of his personality throughout the day.
       Omega's Aqua Terra fragrance for men appropriately shares its name with the Seamaster Aqua Terra collection of watches. Like the new fragrance,the popular watch line seamlessly blends the elements of sport and elegance.
       Although it's not widely known,the fragrance industry has a strong Swiss accent:Geneva is home to two of the world's largest players in the fragrance and flavour industry.
       When Omega made the commitment to create a fragrance that would have the same emotional qualities as its exquisite timepieces, it sought the skills of someone who had mastered the mysteries of scent and who would understand implicitly how to express the brand's essence in a fragrance.
       Omega turned to master perfumer Alberto Morillas, the legendary nose behind some of the world's most successful perfumes for women and men.More than 100 of the most exclusive raw materials were blended to create Omega Aqua Terra and the result is a long-lasting fragrance with energetic,sophisticated, sensuous aspects.
       "The new Omega Aqua Terra for men belongs to the woody aromatic family," said Morillas."On
       the top,the fragrance opens on a blend of citrus (bergamot,grapefruit, tangerine) and herbs (clary, sage). They bring a fresh and natural sensation to this perfume.
       "After a few minutes,the heart of the creation reveals a spicy freshness and an elegant floral note thanks to the aromatic herbs, jasmine,red pepper and violet leaves.
       "Finally, the drydown unveils its mysterious facets: a trail of sensual and luxurious woods,refined oak moss, patchouli, vetiver and musk,that rounds the perfume out harmoniously."
       Omega Aqua Terra is presented in an innovative bottle whose sides feature windows with metric and English scales through which it is possible to see the perfume within. This feature is a nod in the direction of the highly technical watch industry,of which the brand has been a part for more than 160 years.
       Hot-stamped on top of the bottle's distinctive silver cap is an adaptation of the brand's famous seahorse logo found on the case backs of the Seamaster and Speedmaster watches. The textured cap itself recalls the precision tools used by the watchmakers.
       Each bottle of Omega Aqua Terra is delivered in a reusable micro-fibre pouch, which can also be used to polish a watch face, jewellery or glass.

Friday, September 11, 2009

Splashing on beauty water

       Have you watered your skin today?Just as plants need water to better soak up more nutrients from the soil to flourish, the skin requires constant hydration to keep it in top condition. Hydrating skincare therefore is never left out of the R&D agenda, enabling cosmetics companies
       to roll out oases-in-a jar every year.
       "In our research, we learned that Asian skin is fragile and more susceptible to dehydration because the protective outermost layer of the epidermis is not fully matured.Helping the skin form a stronger surface barrier therefore can help
       seal in moisture," said Dr Lieve Declercq, Origins executive manager of Biological Research for Europe.
       Dr Declercq observed that plants are experts at survival, always finding ways to respond to environmental changes including drought. Origins Make A Difference Skin Rejuvenating line contains The Rose of Jericho, a desert shrub that after losing its water curls up into a tight ball and tumbles around the desert until a sprinkle of rain brings it back to life.
       While Thais don't live in the desert, they endure outdoor sun and heat as well as indoor air conditioning - both dehydrating envir-onments. Dehydrated skin ages prematurely,bringing on fine lines and dullness.
       Dior researchers, who worked on the Hydra Life formulas, noted that with time the dehydration process in a chain reaction leads to deeper damage. Lacking water, the skin is no longer capable of fulfilling its youthful functions. For instance, water carries elements essential for enzymatic processes. Dior Hydra Life with antioxidative ingredients come in different formulas for climatic variations,including hot and humid Thailand.
       A big splash of beauty water, La Creme de L'Eau by Issey Miyake is a cooperation between the famed fashion designer and Shiseido. The costly cream is a technical feat with 57 percent of it being water from a hot spring in the volcanic Kirishima mountain range on Kyushu island.
       Legend has it that the Kirishima spring was discovered by a badly wounded samurai who drank its water,which helped him to regain his strength. Rich in minerals, the Kirishima water serves as a hydrating and anti-ageing ingredient in the haute couture cream.

Sunday, September 6, 2009

Anti-ageing priority at Nu Skin

       Nu Skin Enterprises, the US-based directselling business, will redefine itself as anti-ageing company after what it says is the biggest discovery in its 25 years,with new products to meet the needs of the rising population of older people globally.
       Dan Chard, the company's president of global sales and operations, said during a Bangkok visit last week that Nu Skin had been defined as a supplement and personal-care products company. But from now on it will be known as an "anti-ageing firm".
       Despite the poor economy and rising unemployment, the business of Nu Skin remains healthy with global sales up 4%to US$322 million in the second quarter of this year. This is because more people have turned to direct selling to earn additional income.
       "There are many places that have a big opportunity for us including Southeast Asia, Eastern Europe and even the US market where average purchasing rate has continued to increase over the past five years," Mr Chard said.
       In fact, he maintains that the only thing preventing direct-sales companies from growing steadily is failure to develop innovative products.
       He said Nu Skin next month would announce the introduction of "ageLoc",a new ingredient to be put into all Nu Skin anti-ageing lines, as well as its new anti-ageing strategies to grow in the long term. The new products will be launched in the US early next year and in Thailand in the middle of the same year.
       "The new product platform will [help]double sales of Nu Skin in Southeast Asia over the next three years, faster than its original plan," said Melisa Quijano, president of Nu Skin Enterprises,Southeast Asia.
       Currently, anti-ageing products are among the best-selling items of many skin-care and beauty firms, along with food supplements.
       Mrs Quijano said birth rates worldwide over the next 10 years would continue to drop while the number of ageing people is expected to grow significantly.Such customer groups also have high purchasing power, so companies such as Nu Skin will benefit.
       ageLoc, Nu Skin's new patented technology, is based on a research discovery that slows the effects of ageing sign on the skin.
       "We grew from nothing in the past 25 years to US$1.25 billion in 2009. With the newest anti-ageing discovery, it will help us to accelerate our growth faster than in the past," Mr Chard said.
       He said the company was highly confident of the growth potential of Thailand's direct selling business because it exceeded the sales target last year despite the economic downturn and political uncertainties.
       Currently, Nu Skin operates in 48 countries and will open another two new markets, in Colombia and Turkey.