WWDSTYLE. Cat s Meow. A Tory Story Tory Burch opens second overseas unit, this time in London. See page 2.

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1 WWDSTYLE A Tory Story Tory Burch opens second overseas unit, this time in London. See page 2. PHOTO BY DELPHINE ACHARD Cat s Meow Couture beauty looks in Paris included the bold and the striking such as Dior s violet cat s-eye, above. For more, see page 4.

2 00 2 WWDSTYLE XXXXXXXXX, FRIDAY, JANUARY XXXXXXXX 28, 2011XX, 2011 retail Tory Burch Crosses the Pond By SAMANTHA CONTI LONDON Tory Burch is transporting her American lifestyle concept to Europe with her first stand-alone store here, joining one she already has opened in Rome. Earlier this week in London, guests including Joely Richardson, Rena Sindi, John Frieda, Avery Agnelli, Laura Bailey, Ashley Hicks, Allegra Hicks, Cosima Pavoncelli, and Santa and Simon Sebag Montefiore gathered at the store on 149 New Bond Street for cocktails, and later for dinner at Hakkasan in Mayfair. We Brits can do hard-core glamour, but what this city can use is some casual glamour and that s what Tory delivers, said Richardson. The 4,200-square-foot store spans two floors and is housed in a 19th-century town house. The space was most recently a haberdashery and was the site of one of the early Louis Vuitton stores. It has moss green floors, gold leaf mirrors, orange lacquer details and a tented ceiling with a skylight. The space has a residential, Park Avenue-meets- Palm Beach feel with a bohemian twist. There are raffia rugs, plum snow-leopard curtains, purple ikatinspired wallpaper and a collection of Japanese Imari vases. Upstairs is a VIP and special-events area that has the warmth of a living room. Burch said she was excited about opening in Europe and watching the shopping patterns. Bond Street gets British as well as international shoppers, so it will be interesting to see how the shop evolves. We also plan to use these stores as a laboratory and experiment with new categories and exclusives, she said. The designer added she is mulling the idea of doing home in a small way and testing it in London. She will also be stocking some eveningwear, with an emphasis on cocktail. She said her fall presentation in New York next month would include a Inside the London store. capsule collection of eveningwear. The brand will continue to sell in the U.K. at stores including Harrods, Selfridges and Harvey Nichols. Later in the week, Burch headed to Rome to cut the ribbon on her first Italian store, a 2,000-square-foot unit on via del Babuino, the street that runs between the Spanish Steps and Piazza del Popolo. The store, she said, is very modern for us, and is inspired by one of Donald Judd s sculptures. It has been open for several months already. She said the company is looking to open stand-alone stores in Germany and France, and is waiting for the right real estate opportunities. The company, which has 36 stores in the U.S. and nine internationally, has 14 openings planned for this year, mostly in the U.S. and Asia. In the spring, Burch and her team will head to the Far East to open a second unit in Hong Kong, as well as stores in Taiwan and Beijing. In the U.S., stores are planned for Madison Avenue, Los Angeles, Dallas and Chicago. The stores in China, Europe and the U.S. are all directly operated, while the brand has partnered with Samsung in Korea and Mitsubishi in Japan for retail outlets in those markets. Staff in Licensing Deal for Just Cavalli MILAN Roberto Cavalli Group and Staff International have signed a 10-year licensing agreement for the global production and distribution of the Just Cavalli line, starting with the spring 2012 season. The deal, which ends two years of speculation, could be extended for another five years. The 30-year-old Veneto, Italy-based Staff International, which is controlled by Diesel s parent company, Only the Brave Srl, produces and distributes collections for Maison Martin Margiela, Dsquared2, Viktor & Rolf, Vivienne Westwood and Marc Jacobs. During a press conference in Milan Thursday, Renzo Rosso, founder of Only the Brave, and designer Roberto Cavalli, both tanned and dressed in black, were in upbeat moods. We re longtime friends. We re very much alike, both creative minds, and we can do great things together, said Cavalli. This is the right conclusion after years of confusion, and we can bring back the brand to its original splendor. Just Cavalli was previously licensed to Ittierre SpA, which was part of the IT Holding SpA group that included the Gianfranco Ferré and Malo labels. The sale of Ittierre to Albisetti SpA was finalized earlier this month. The latter took control of the Italian manufacturing firm after almost two years of governmentbacked bankruptcy protection. The Just Cavalli innerwear, beachwear and silk collections previously were licensed to Albisetti and will continue to be produced and distributed by that company. In 2009, Cavalli had voiced his displeasure at Ittierre s delayed deliveries, substandard production and unpaid royalties, but eventually extended the contract, due to expire last year, until (The license was estimated to account for more than a third of IT Holding s revenues). Even then, Staff International was understood to be waiting in the wings. Gianluca Brozzetti, ceo of the Cavalli group, declined to elaborate on the contractual way-out clauses. Ittierre produces the C N C Costume National, Galliano and Ermanno Ermanno Scervino collections. Rosso said Staff International can produce a fresher, more innovative and more modern product, with its unique know-how and treatments. Staff will create a new contemporary division to manage Just Cavalli, which will add entry price pieces, feature more denim items and more of the brand s iconic prints, said Rosso. In five years, the companies expect to reach wholesale sales of 250 million euros, or $342.1 million at current exchange, up from the current 80 million euros, or $109.4 million. This is a much more avant-garde group. I can experiment more, it will be a completely new product another world compared to the past, said Cavalli. A flagship is expected to open in Milan early next year. The goal is to reach 80 stores in five years, up from the current 38, in addition to developing shopin-shops, corners and online sales. Points of sale will grow to 1,700 or 1,800 from the current 1,500, with some editing to do in the meantime, said Rosso. In the next few weeks, a dedicated Just Cavalli site will make its debut on Italian e-tailer Yoox SpA, which already runs a Roberto Cavalli e-site. Staff International is expected to close 2010 with sales of 180 million euros, or $237.6 million, up from 144 million euros, or $200 million, in Only the Brave is expected to report consolidated turnover of 1.3 billion euros, or $1.7 billion, in 2010, up 5 percent from Dollar figures were converted from the euro at average exchange rates for the periods to which they refer. Rosso said Staff International is preparing a project to make Martin Margiela s MM6 line more important, and implied another designer could join the firm s stable next year. LUISA ZARGANI MEMO PAD COUNTING THEM UP: Was Lady Gaga a hit with Vogue s advertisers? How did Katy Perry fare for People StyleWatch and Elle? The all-important March fashion and lifestyle magazines are about to hit newsstands, which means the first quarter and first real benchmark is ready to be revealed, and the report card is a mixed one. Vogue did well, rising 10.6 percent for the first quarter to 619 pages, but People StyleWatch was the big winner again. The magazine posted the largest increase in paging for the first quarter (and its largest increase ever), up 46.5 percent to 197 pages, according to Media Industry Newsletter. Publisher Karin Tracy said growth came in beauty, fashion and retail with new business from brands such as Tommy Hilfiger, Dillard s and Lacoste. Elle, which will soon leave its longtime home at Hachette for Hearst, posted a 14.3 percent rise in paging to 517, and Women s Health wasn t far behind, up 11.7 percent to pages. InStyle raised its pages by 10.9 percent to Allure s 20th anniversary issue for March resulted in a 7.5 percent increase in paging to After W had a 22 percent decline this time last year, the magazine, under editor in chief Stefano Tonchi, had a 6.5 percent increase to 267 pages. Essence gained almost 6 percent in paging to 282 pages, and Glamour posted a 5.5 percent increase to pages. Marie Claire, last year s ad page increase leader, posted a flat quarter, with 259 pages. Town & Country, which will have Lauren Santo Domingo on its cover, was also flat in paging, with As for the titles seeing declines, Lucky fell 14.3 percent to pages, a big change from this time last year, when the title was up 17 percent. Self wasn t far behind, down 12.6 percent to 178 pages, Cosmopolitan declined 12.5 percent to pages and Harper s Bazaar fell 11.6 percent to Advertising at Shape was off 7.5 percent to 269.6, while competitor Fitness was down 6.7 percent to 222 pages. For the first three months, Health was down 5.5 percent to 193 pages and O, The Oprah Magazine dropped 4.2 percent to 283. AMY WICKS DVF DEPARTURE: Alixe Boyer, Diane von Furstenberg s executive vice president of global image, is leaving the company this Friday. Boyer joined von Furstenberg in 2007, overseeing areas such as public relations and special events and working with the executive team on media buys, as well as art directors and the creative team. Prior to that, she had senior marketing and communications stints at Christian Dior and Ralph Lauren. Alixe joined our company as we were embarking on a new and exciting time for the DVF brand international expansion, the launch of new products and unifying the brand, von Furstenberg said. She has been a tremendous asset. I wish her all the best in her next journey. Boyer called her time at the company invaluable, and working with the designer a privilege. While it has been a great three years, it is time to pursue new challenges and opportunities, she said. MARC KARIMZADEH

3 SAVE THE DATE beauty FORUM May 17, 2011 New York City brand. new. FOR INFORMATION ON ATTENDING Marne Friedman / marne_friedman@condenast.com FOR INFORMATION ON SPONSORING Tina LoRegio / tina_loregio@condenast.com Sponsored by

4 4 WWDSTYLE FRIDAY, JANUARY 28, 2011 beauty P&G Zeros In on Beauty Ritual By MOLLY PRIOR PROcteR & GaMbLe co. is bent on changing consumers beauty rituals to expand existing categories and gain more traction in emerging markets. We need to innovate in everything we do, bob McDonald, chairman, president and chief executive officer, told analysts during an earnings call thursday. In some cases, he said, that means introducing new product categories, in others it means expanding categories by changing consumers habits. For instance, McDonald said, In china, it s getting consumers to wash their hair more than once a week. He also cited the marketing message of Head & Shoulders as an example. Head & Shoulders works better to prevent dandruff and take care of your scalp the more frequently you use it, said McDonald. as we advertise Head & Shoulders, the number-one selling shampoo around the world, we obviously work to get people to wash their hair more frequently because they get a better end result...we do work in existing categories to expand them. that strategy is helping, slowly but surely, to boost beauty sales. Kinerase s Mass Market Offshoot S By RacHeL brown etting off another quake along the fragile fault line separating prestige and mass beauty distribution, skin care brand Kinerase has created a lower-priced offering called Dr. LeWinn by Kinerase, slated to enter selected Wal-Mart and Walgreens stores in February. Dr. LeWinn by Kinerase gets its name from Dr. LeWinn s Private Formula, a line atop the australian premium skin care market founded by the late plastic surgeon Lawrence LeWinn. the company was acquired in a $74.5 million deal in 2009 by Kinerase parent Valeant Pharmaceuticals International. Dr. LeWinn by Kinerase builds upon Dr. LeWinn s medical heritage with ingredients Valeant believes advance skin care formulations at mass such as Dynalift, intended to tighten skin; Snap-8 peptide to address wrinkles, and Kinerase s signature plant-derived wrinkle fighter and moisture booster Kinetin. Dr. LeWinn by Kinerase will bring to mass not only a dermatology perspective but a plastic-surgery perspective, said Jen Smoot, marketing director for aliso Viejo, calif.-based Valeant s U.S. cosmeceuticals division. She added it will have the latest ingredients that you find in department stores but don t find outside of department stores until three of four years later. Still, she noted that Dr. LeWinn by Kinerase products would have only two to three cosmeceutical-grade ingredients versus 10 to 12 in a Kinerase prestige product. We look forward to the launch of Dr. LeWinn by Kinerase, said carmen bauza, vice president of beauty For the second quarter ended Dec. 31, the beauty unit s net earnings from continuing operations gained 2 percent to $896 million driven by higher sales and a lower effective tax rate, partially offset by a lower operating margin. Operating margin contracted mainly due to increased marketing spending and higher commodity costs, mostly offset by lower foreign currency exchange costs and reduced overhead spending, stated the company. beauty sales for the quarter ticked up 1 percent to $5.29 billion on volume growth of 5 percent, driven by double-digit growth in developing regions. Organic sales gained 3 percent. P&G s overall net earnings from continuing operations increased 5.8 percent to $3.33 billion, or $1.11 a diluted share, from $3.15 billion, or $1.01, a We should have growth plans to achieve goals and strategies without acquisitions. BOB MCDONALD, PROCTER & GAMBLE CO. year earlier. Sales grew 1.5 percent to $21.35 billion, up from $21.03 billion in the prior-year period, driven by 6 percent volume growth. Organic sales gained 3 percent. P&G said that businesses representing about 60 percent of net sales maintained or grew market share. for Wal-Mart. the arrival of the line at Wal-Mart reflects our commitment to listening to our customers and providing them with access to the quality brands that they want at affordable prices. Dr. LeWinn by Kinerase s 10 initial products will be priced from $10 to $35, while most of the products in Kinerase s prestige line sold at Ulta and Sephora and its Pro+therapy line aimed at physicians are at least double that amount and regularly top $100. according to Smoot, probable hero products in the Dr. LeWinn by Kinerase line are the Instant Dermal Wrinkle Filler she described as the first product in mass with an instant wrinkle-erasing effect, and three Lift & Resculpt products: anti-wrinkle Night cream, anti-wrinkle eye cream and Serum XK. Kinerase, which has registered annual sales in the $21 million to $27 million range, has a lot to gain from a successful mass launch. Industry sources forecast Dr. LeWinn by Kinerase could generate at least $15 million in first-year retail sales, and Kinerase could benefit substantially from a higher profile. Smoot estimated 10 to 20 percent of skin care shoppers are currently aware of the brand. Olay Professional Pro-X Advanced Cleansing System For the first half, net earnings from continuing operations gained 3.9 percent to $6.41 billion, or $2.13 a diluted share, from $6.18 billion, or $1.98, from a year earlier. Sales gained 1.6 percent to $41.47 billion. For the six-month period, beauty s net earnings gained 4 percent to $1.73 billion, while sales rose 1 percent to $10.22 billion. In the beauty business during the quarter, volume increases in the firm s retail hair care business were in the high-single digits, with asia leading the growth. both Pantene and Head & Shoulders shipments rose more than 25 percent in china, the Philippines and India. In brazil, shampoo value share increased more than 1.5 points with the launch of Pantene and Head & Shoulders shipments increasing more than 50 percent, said P&G. Female skin care grew at a double-digit pace as Olay continued its global sprawl. For instance, Olay shipments to Russia increased by roughly 80 percent. In the U.S., Olay increased in the high-single digits behind the launches of Regenerist Night Resurfacing elixir and the Olay Professional Pro-X advanced cleansing System device. Prestige products saw their volume fall in the low-single digits. Skin care, however, rose at a double-digit clip led by growth in china, where the SK-II skin care range gained about 60 percent. During an investor meeting in December, McDonald emphasized P&G s aim to grow vertically and horizontally. Following the meeting, caris & co. analyst Linda bolton-weiser wrote, He outlined strategies for pursuing white space growth opportunities in the next five years that should enable P&G to grow 1 to 2 points faster than global market growth. P&G is also integrating to operate as one company, which should help it penetrate new markets in multiple categories more quickly and with higher [return on investment]. asked on thursday if P&G is looking to add brands to the fold, Jon Moeller, chief financial officer, said, I continue to believe that a large acquisition while you would never rule it out completely is not a highly probable event. McDonald added, We should have growth plans to achieve goals and strategies without acquisitions. The Dr. LeWinn by Kinerase skin care range. In search of a broader audience at mass, however, the risk is that Kinerase could undermine its prestige sales. Frédéric Fekkai is the poster child for the perils of breaching the mass-class divide. Sephora dropped Fekkai when the P&G-owned hair care brand decided to head to target and Wal-Mart. Sephora declined to comment on whether Dr. LeWinn by Kinerase would impact Kinerase s standing at its stores. Smoot contended Kinerase s mass and prestige businesses aren t mutually exclusive. She said Dr. LeWinn by Kinerase would help grow the overall Kinerase base. Our attempt is to continue to build all these lines. I think that multiple lines can exist, said Smoot of the mass, professional and prestige branches of Kinerase. Smoot said Kinerase s entry into the mass market reflects the reality of multichannel shopping and current economic conditions. We want to be able to speak to women no matter what channel they are shopping in, she said. the women that we have spoken to say, I used to buy everything at Sephora. Now I buy my c8 [Kinerase bestseller], but I can t buy everything there.

5 WWDSTYLE FRIDAY, JANUARY 28, Wild At Heart PARIS How were the out-of-this-world hair and makeup looks conjured up for couture-clad models on catwalks for the spring 2011 season, which ended here Wednesday? At Valentino, David Hamilton photographs inspired Guido Palau for the coifs. He put Redken thickening lotion on models hair, parted it in the center and wove two braids along the sides of heads. At the back, Palau fashioned neat buns. It s very Seventies, romantic and young, he said. Another artist French illustrator René Gruau was channeled for beauty (and fashion) at Christian Dior. His drawings were very unfinished. It was sometimes a stroke and that was the whole hairdo, said hairstylist Orlando Pita. So what I am trying to do is put the hair up, to kind of give those painterly strokes with the brush. I don t want to roll the hair. I don t want to bun it. I don t want to do a French twist. I don t want the old-fashioned ways of putting hair up. It s all about flowing movement, and then everybody has different versions of that. Likewise, models at Dior had varied makeup looks created by Pat McGrath, save for their mouths, which were all painted the same orange red hue. Skin was paled down and black eyeliner applied to peepers. She called the result supergraphic, super-dior. Meanwhile, at Giorgio Armani Privé, precious stones were the starting point for both the fashion collection and the makeup, created by Linda Cantello. Opting for a modern take on couture, for lips she eschewed the traditional red and went instead for purple, made with a mix of an Armani lipstick and a pigment from the brand s spring collection. Faces were primarily matte, save for a small crystal applied on each model s mouth. Just to catch the light, she said. Oribe devised hairdos that wrapped around heads. It s kind of crisscrossed and just very polished and simple, he explained. To achieve the look, Oribe used his eponymous brand s Soft Lacquer and Superfine Hairspray. JENNIFER WEIL Clockwise from top right: Jean Paul Gaultier; Giorgio Armani Privé; Valentino; Jean Paul Gaultier; Giorgio Armani Privé. PHOTOS BY DELPHINE ACHARD It s very Seventies, romantic and young. GUIDO PALAU, AT VALENTINO

6 6 WWDSTYLE FRIDAY, JANUARY 28, 2011 beauty La Prairie s Infusion By MATTHEW W. EVANS LA PrAiriE is LookiNg to charge up with Cellular Power infusion, an antiaging treatment product designed to boost skin repair and be used with existing regimens. The item, which includes four 7.8-ml. bottles in a white leather box and is priced at $475, is meant to last 30 to 40 days, according to Lynne Florio, president of La Prairie. it enhances the natural cellular renewal cycle, she said. it s also intended to protect epidermal stem cells. Each bottle has a silver base, and, in a novel concept, when it is twisted, the formulation begins to turn a lilac hue a process called the accelerant activation. Cellular Power infusion was launched with a bit of fanfare at the brand s counter at Bloomingdale s 59th Street flagship last week. That afternoon, customers were introduced to the product, and it was the same for a bevy of editors and bloggers in the evening. This is a new step in cosmetics products and in the company, said Patrick rasquinet, president and chief executive officer of La Prairie group, who came in from Switzerland for the launch event. innovation brings a lot of energy to the company. Cellular Power Infusion [La Prairie has] the highest repeat business in cosmetics [at the store]. it is due on shelves Feb. 1 at Bloomingdale s, Bergdorf goodman, Neiman Marcus, Nordstrom and Saks Fifth Avenue. A worldwide rollout is to follow in six months. Any event is about customer interaction, said Howard kreitzman, vice president of cosmetics and fragrances at Bloomingdale s. What s most meaningful for us is [being] able to work with La Prairie to celebrate something very unusual. Michael gould, Bloomingdale s chairman and ceo, agreed, saying, La Prairie is one of the most important resources we have. its upscale positioning is [key] to the brand s strategy. They ve kept true to that. Speaking on the topic of loyalty from upmarket customers, gould pointed out that La Prairie has the highest repeat business in cosmetics at the store. The product employs Swiss snow algae to protect the skin, a peptide to foster mitochondrial DNA repair and phyto stem cell extracts of red grapes. Cellular Power infusion also includes panthenol, glycerol, sodium hyaluronate and extracts of grape seed and papaya. The item could generate $10 million in first-year retail sales in the U.S., industry sources speculated, adding the global 12-month total may reach $50 million. Photo by John Aquino Swarovski Unveils Aura Scent By NiNA JoNES LoNDoN Swarovski is taking its first plunge into the world of fragrance with Aura by Swarovski, due out this spring. The crystal maker created the women s scent with its beauty licensee groupe Clarins. The inspiration was all the grace and the magnetism of light, according to Joël Palix, president of Clarins Fragrance group. The soul of crystal is light, continued Markus Langes-Swarovski, a member of the Swarovski board and the great-great grandson of the company s founder, Daniel Swarovski. Langes-Swarovski explained Swarovski has for about one decade been expanding its business beyond crystal. Michaelgould, bloomingdale s Swarovski s fragrance and makeup items. Aura is the perfect visual expression for the soul of crystal, he added. Swarovski and Clarins executives went through 2,000 iterations of the juice before deciding on the final one. The original brief, said Langes-Swarovski, was to create liquid crystal. We wanted to identify the smell of crystal, in a way. Pierre Aulas, olfactory artistic director for Clarins Fragrance group, imagined the liquid crystal as creating a magic aura and prism of energy. Firmenich s Jean-Pierre Bethouart and olivier Cresp composed the fruity floral incandescent juice. it combines notes of amber, benzoin resin and white musk, along with what Aulas described as rays of juicy lychee, pure white tuberose and pink pepper that punctuate the scent. Aura s refillable bottle is a narrow glass tube set in a metal base, with a metal top that encases the flacon. A single asymmetric crystal sits on the top. We basically wanted to create something which is not only a pure crystal-decorated flacon, said Langes-Swarovski. Photo by John Aquino We can really play with the bottle, added Palix. We will have a lot of limited editions because i think there is a collector s business around Swarovski. Aura s outer packaging is made from recycled, recyclable cardboard and doesn t contain inserts. Aura s print campaign (including single and double pages) was shot by Craig McDean in New York and features model Vlada roslyakova bathed in an ethereal pink light, while a prism of light shines from the fragrance s bottle. McDean also shot the television campaign, which will appear as 10-, 15-, 20-, 25- and 30-second spots. Aura is to launch first in the U.k., on March 3, exclusively in Selfridges before rolling out nationwide on March 31. Then on April 1, the fragrance is to be introduced in the rest of the world, save China, which is to start selling the scent in September, and the Americas, which are to get Aura in At launch, the fragrance should enter some 10,000 doors, including approximately 500 Swarovski stores, according to Palix. The scent will come as 30-, 50- and 75-ml. eau de parfum sprays, which will retail in the U.k. for 44 pounds, 59 pounds and 71 pounds, or $68, $91 and $110 at current exchange, respectively. The 50-ml. refill is to be 46 pounds, or $71. Ancillaries include three makeup jewels, crystal-studded pendants containing glosses for the lip, face and body, whose formulas are made with micronized Swarovski crystal and Crystal Shine iridescent pearls. These will retail for 48 pounds to 55 pounds, or $74 to $85. For the Asian market exclusively, Aura will be an eau de toilette in slightly different packaging than that of the eau de parfum version. Clarins executives would not discuss sales projections, but industry sources estimate Aura will generate between $50 million and $60 million in retail sales in its first 12 months. Clarins Fragrance group and Swarovski signed a 10- year license in 2008 to develop fragrance, cosmetics and beauty accessories under the Swarovski Beauty name. What i personally love about this first launch is it has modernity and yet it feels timeless, said Langes-Swarovski. Clarins and Swarovski really share the same values. Jonathan Zrihen, president and chief executive officer of Clarins groupe USA, said the rollout will be staged over a two-year period to make sure the fragrance introduction has maximum impact in each hemisphere. Also by starting out in Asia, Europe and the Middle East, Clarins will be taking advantage of the strength of the jewelry brand in those areas. Zrihen noted the perceptions and positioning of Swarovski is more upmarket in Asia. Both the positioning and stores in the U.S. are being upgraded, he said, noting that by 2012, the renovation is expected to be up to speed. We want to be part of the repositioning, he said, we want to make sure that we introduce the fragrance at the same time they roll out the new stores. it s a prestige brand with mass appeal. Zrihen said Clarins will launch the fragrance in the U.S. in a certain number of Swarovski s more than 200 American stores, plus specialty and department stores. WithcontributionsFroMJenniFerWeil

7 WWDSTYLE FRIDAY, JANUARY 28, A Shift to Upscale Offerings at Mass new YorK Buoyed by the success of premium skin care, mass merchants plan to further increase upscale assortments while adding enhanced services. That s not to say, however, there won t still be a focus on value pricing with more space allocated to inexpensive brands, too. according to data presented during The npd Group s Hot off the press conference, beauty in the food, drug and mass arenas experienced 3 percent sales growth in 2010, versus a flat makeup sales posted the biggest increase, followed by skin care, while fragrance sales declined slightly. Skin care has, indeed, been a growth engine for the mass market for the past three years as women felt more confident buying the brands, especially the olay franchise, in a self-service setting. If many of the top visionaries in the field have their way, however, shoppers are going to find more assistance at the A Lewis drug location in Sioux Falls. local drug or discount stores. duane reade president Joe magnacca predicts that providing advice is one of the top three trends for the remainder of Beauty adviser knowledge remains the key to success. With information overload for today s consumer, the beauty adviser must be able to help her understand what products will work for her, he said. He also believes that not only can in-store experts help edit the shopper s decisions, but retailers owe it to consumers to do their homework and offer the best of breed in assortments. Today s shopper wants the best of everything. She doesn t want to have to stay within one brand to get all her products if she feels she is settling on any particular product in the range, he explained. To give shoppers what they want, duane reade just added two lines to its successful Look Boutique H2o and Gosh, a trendy line from denmark. parent company Walgreens also Compared WITH a 10 percent decrease in prestige fragrance sales in 2009, one might say 2010 was a sort of banner year. Total prestige fragrance sales last year were $2.5 billion, up 1 percent from 2009, according to The npd Group. The success rippled through the entire prestige beauty market, with skin care catching fire, growing 8 percent to $2.7 billion, while sales of makeup the largest of the three businesses rose 3 percent to $3.2 billion. Looking at the 4 percent growth in the total prestige beauty market to about $8.5 billion and the 11 percent positive swing in fragrance sales, Karen Grant, vice president and global industry analyst at The npd Group, peered into her crystal ball and said, positive. [Beauty] is off to a good start. discussing trends in an interview after presenting 2010 beauty sales to top industry executives Tuesday at The plaza, Grant noted that by June of last year, skin care sales surpassed pre-recession levels. Thursday she added that the upturn in just borrowed a page from duane reade and stocked Borba, a line made popular at mass in duane reade s Look Boutiques at select Walgreens. In particular, Borba plays off another big trend at drugstores: combining beauty and wellness. our customers see us as a valued destination for health and wellness needs, from the trusted standby beauty staples to the latest innovations, said Shannon petree, Walgreens divisional vice president and general merchandise manager for beauty. Borba has created a buzz in the beauty world and among celebrities. now, we re excited to bring these items to the masses so everyday women can achieve total beauty in a healthy, unique and affordable way. For magnacca, it isn t only about the products, but presentation, too. He thinks more retailers will install product fixtures that help elevate a brand or a category to new heights. That is certainly a goal of Lewis drug s president and chief executive mark Griffin who recently oversaw the launch of a new prototype for the regional chain. The store sports a beauty boutique with wood flooring and upscale displays. The beauty department further burnishes the image of the store which also has a four-seasons room with a retractable roof to merchandise items such as Christmas trees or garden items. There is also a walk-in cooler with minikegs and chilled wine. The kitchen department has granite-like counters and brands like Cuisinart. Griffin said the store got off to a strong start over the holidays and the momentum built in december with a promotion called a Sunday block party. Invitations with one-day gift certificates were mailed to consumers near the store and the event featured activities, samples and goody bags. Griffin said his 32-store chain aimed to do something special with the store and break out of the cookie-cutter chain drugstore mold. overall, Lewis operates 32 drug stores in South dakota, Iowa and minnesota. already many efforts in beauty are paying off with frontend sales on the rise. rite aid, in fact, just reported a 2.2 percent increase in comp-store, front-end sales. as the ambiance of the local drugstore improves, buyers hope to see even more lines arrive. There s optimism lines will extend distribution to mass sometimes even via acquisitions such as Coty s purchase of opi. To get fragrance sales pumping again, some buyers suggested less push on celebrity and more on building true brands with big marketing support and the chance of longevity such as Stetson. FAYE BROOKMAN milan Sephora is ramping up its Italian expansion plans. The LVmH moët Hennessy Louis Vuitton-owned perfumery is continuing its quest to snare the retail leadership of the highly fragmented Italian beauty market. To this end, the French beauty chain said this week it intends to bolster its presence further with a 2,691-squarefoot store inside the city s central train station. Slated to open in march, the store will join brands such as armani Jeans in the recently renovated station said to receive 320,000 visitors a day. an additional store is scheduled to follow later this year in the Corso Vercelli shopping district. The retail expansion plans to follow in the footsteps of Sephora s first Italian flagship unveiled in march and located on one of milan s busiest shopping streets, Corso Vittorio emanuele. The beauty chain has 102 stores in Italy. To spearhead its latest plans, Sephora Italy has appointed antonio Ferreira de almeida as managing director. de almeida was most recently managing director of Sephora portugal and succeeds roberto Forcherio, who left the company. KERRY OlsEN Outlook Brightens for Prestige Beauty This year, new products had a halo effect, benefiting existing products. KAREN GRANT, ThE Npd GRoup photo by stephen leek Sephora s Milan flagship. Sephora s Italy Push Hits Milan makeup began around mother s day and fragrance by late summer. In the last few years, new products were selling at the expense of existing products, said Grant. Consumers did an either-or. This year, new products had a halo effect, benefiting existing products. When it came to brands, notable introductions included the Bleu de Chanel fragrance launch for the fall season, followed by Gucci Guilty and Chance eau Tendre, a spring entry. Chanel, Clinique and Lancôme were highlights of the makeup category, while Clinique and the estée Lauder brand swept the top three spots in skin care. This year, the U.S. skin care market has to contend with strong comparative sales from Grant expects all three categories to do well, in 2011, with skin care perhaps up 4 percent and makeup maybe up 3 to 5 percent. Fragrance, she said, could pick up 1 to 3 percent, possibly due to easier comparisons from a less-than-stellar (but still positive) That will depend on the performance of fragrances launched later this year, Grant remarked. M.W.E.

8 00 8 WWDSTYLE XXXXXXXXX, FRIDAY, JANUARY XXXXXXXX 28, 2011XX, 2011 eye Europe s most famed royal courts are about to add two very fresh faces, both sure to draw comparisons to their forebears and each other. WWD took an early look at the coming princess prizefight. Battle Royale It s been 53 years since Grace Kelly married Prince Rainier III, thereby ascending from Hollywood royalty to the real thing, and 29 years since Diana Spencer walked down the aisle at St. Paul s Cathedral to wed Prince Charles. So the world seems a bit overdue for a new variation on that classic fairy-tale ending: the commoner who becomes princess. In the coming months, Princess Grace of Monaco and Princess Diana may finally begin to cede their spot in the public imagination to a new generation of royal women (and their wouldhave-been daughters-in-law). After Kate Middleton and Charlene Wittstock marry their princes Prince William of Wales and Prince Albert II of Monaco, respectively fashion folk will wait to see whether they ll be setting the trends or simply following them. The jury is still out, and so far designers have been diplomatic in their evaluations of both women s styles. Giorgio Armani has been dressing Wittstock a onetime Olympic swimmer for her native South Africa with a lean build and toned shoulders for the past two years. Not surprisingly, Mr. Armani is full of praise for the princess-to-be. Tall, sporty and at the same time sophisticated, Charlene knows how to wear even the grandest evening dresses with the nonchalance and freshness of youth, he told WWD this month. Karl Lagerfeld, who knows Wittstock well and has photographed her for several magazines, says he s hopeful the beauty will have a positive impact on her new country. I think she wants to give some sparkle to Monaco, he says. A place like this needs a beautiful princess, and she s very handsome and stunning. The tall, slim Middleton, meanwhile, has already been forging something of a reputation as a fashion plate: Her blue Issa dress spawned myriad cut-price knockoffs, and versions of the high street designs she wore for her recent engagement photos will be reissued. Armani calls Middleton so discreet and straightforward, but highly aware of fashion trends. He adds: She will have all the time in the world to become fully integrated into her new role and choose the most sophisticated and precious dresses and outfits for official occasions. Lagerfeld says Middleton is very different from Princess Diana and seems very well balanced and a happy person. She is chic in a way the position needs. Let s wait and see. Below, the tale of the tape for the soon-to-be princesses. Queensberry Rules, of course, apply. SAMANTHA CONTI, LONDON, AND CHANTAL GOUPIL, PARIS Kate Middleton, age 28 vs. Charlene Wittstock, age 32 An unapologetically classic dresser, Middleton is a tweed-and-flatboots or jersey-wrap-dress-and-discreet-jewelry kind of gal. She s clearly a considered consumer, too: She aggressively shopped her closet for the Mario Testino engagement photos, sending out a Make-do and Mend message meant for Britain s age of austerity. In one photo, she wore a white Reiss dress that cost 159 pounds, or $253. The white winter coat that she frequently wears is also old Reiss. In the other Testino photo, Middleton donned a white silk, vintage-inspired blouse from Whistles autumn 2008 season. Prince William and Kate Middleton in their engagement photo. Style The statuesque swimming champion has certainly made strides since her first, disastrous appearance at Monaco s Red Cross Ball in Wearing a green muslin dress she d borrowed from a friend and sporting red fingernails that she d painted herself, Wittstock admitted to Tatler: I looked like a Christmas tree. She didn t do much better the following year, when she wore a long, pink one-shoulder dress and undone hair to a Monaco charity event in May But then, in 2008, Armani and his team took her under their wing, made her an ambassador and began dressing her for official events. Since then, she s been working a sober, elegant and sophisticated look, wearing long, strapless dresses with bustiers or draping, and she s not shy about showing off her muscled shoulders and creamy décolleté. For more relaxed events, the future princess has also worn Ralph Lauren dresses and sporty scarves. Although Bruce Oldfield has been widely tipped as the man to create Middleton s wedding gown, it now appears there is another very serious contender: The London-based bridal designer Phillipa Lepley. Although Lepley, who designed wedding gowns for British celebrities including Ulrika Jonsson and Davina McCall, has always been in the running, the latest buzz in London is that she will design the dress. Potential Wedding Gown Armani let slip during a news conference at Milan Men s Fashion Week earlier this month that he would be designing Charlene s dress for the wedding. He didn t elaborate, and the news was not confirmed by his press office. Prince s Palace of Monaco. Middleton has been snapped in outfits by Issa, Alice Temperley, Collette Dinnigan and Diane von Furstenberg, and the high street s Reiss, Whistles, Kew, and BCBG Max Azria. She s also a fan of the tailored jackets from English designer Katherine Hooker. Favorite Labels Industry sources tell WWD that the folks over at Dior are aggressively courting Wittstock in a bid to fill her closet at her new home in Monaco s 12th-century palace. So far, she s swapped her poolside gear for some serious Armani chiefly Armani Privé and has hinted that he might be the man to design her wedding gown. She also wears Ralph Lauren and Michael Kors, and told Tatler that her fashion icon is fellow South African Charlize Theron. Not surprisingly, Middleton favors practical carryalls from Longchamp and Bric s. She has her long, chocolate brown hair and grooming done at Richard Ward in Sloane Square a favorite of Chelsea socialites and TV presenters and wears hats by Philip Treacy. She favors small jewelry and, in particular, pieces by Patrick Mavros, whose designs are inspired by the wild animals of Africa. Grooming She doesn t do much with her hair except pull it into a chignon once in a while. As far as jewelry is concerned, she often wears Repossi earrings. Her engagement ring, a pear-shape diamond, is also from the Italian jeweler. Charlene Wittstock in Armani. Kate Middleton in Issa. She will inevitably be compared to Diana, who found her own fashion feet with help from Anna Harvey, a former deputy editor of Vogue who is credited with helping to update her style from Sloaney to sophisticated. Middleton, who hasn t had a public misstep since she began dating Prince William, risks treading safe fashion ground for the rest of her life, which would result in a collective yawn in Britain and abroad. Future Prince Rainier III and Princess Grace Monaco is a Frenchspeaking country, and her French needs work. She resembles Princess Grace, but she will be constantly compared to Prince Albert s mother and that could be deeply annoying. Also, she can tend to look stiff and slightly uncomfortable in designer duds. She needs to relax and smile more. She will be a princess, after all.