Europe’s largest trade show has hit the big four-0, but it isn't showing any signs of a mid-life crisis. Instead organiser Sogecos is working hard to put a spring in the trade show's step and, if Italy's C&T market is anything to go by, its efforts are paying off. Georgina Caldwell reports from the 40th edition of the exhibition
At 40 years and counting anyone would forgive Sogecos (BolognaFiere) for thinking that it had hit upon a winning formula for Cosmoprof – but the organiser certainly isn't prepared to allow Cosmoprof to get stuck in a rut. Indeed, the organiser is all too aware that trade shows require constant fine-tuning if they are to stay in rude health. As Florio Terenzi, president of Sogecos admits: "It's been 40 years of intense work – back in 1982, when I took the helm, we had just 600 foreign visitors and 20,000 sq m. Last year we covered 86,000 sq m and hosted 135,000 visitors from 168 countries."
Taking centre stage
Juggling the needs of so many different aspects of the industry within such a vast exhibition space is no easy task and last year Sogecos realised that it would have to pull out all the stops if it was to continue to keep all of the exhibitors happy. The packaging halls, collectively known as Cosmopack, were opened a day early, to reinforce the message that Cosmoprof is primarily about business and to allow the industry time and space to make themselves heard. The selective perfumery pavilions were also treated to a platform for their message in the guise of Beauty on Stage, beauty's equivalent of a fashion show, streamed live on Fashion TV.
And this year Sogecos has built on last year's innovation to provide its exhibitors and visitors with a bustling and vibrant backdrop to all of their business transactions.
As Laura Zaccagnini, international marketing and strategies director of Cosmoprof told ECM: "It's 40 years of beauty which has made Cosmoprof the beauty event rather than just a trade show. That's how we like to see the evolution of the exhibition."
The selective perfumery halls, for example, joined Cosmopack in opening a day early. "Cosmopack is much more business oriented and we need to take care of the business. Last year the early opening was very successful. Pavilion 18 has more than 3000 visitors and lots of exhibitors, so we felt that it too needed more time in order to spread the demand. This will hopefully help to tap into the synergies between the two areas and make better use of the physical connection between the two halls," explained Terenzi.
The Beauty on Stage area has also been tweaked in response to some of the feedback from last year's event. The stage was reoriented so that the shows could be viewed from the surrounding stands. And judging by the number of exhibitors that have returned to Cosmoprof this year, the event has been well received. P&G Prestige was on the list of newcomers to Beauty on Stage this year, along with Selective Beauty and Puig Italia – who joined Bvlgari, Estée Lauder, L'Oréal Prodotti di Lusso, Ferragamo Parfums, Shiseido Cosmetici Italia and ITF. Both Sisley and Monarimport, Italian distributor for Clarins, declined to return this year.
The Italian equivalent of the FiFis, the Accademia del Profumo awards, also took place in the Beauty on Stage arena. This year the academy adjusted the voting process slightly, meaning that the winners of each category were automatically disqualified from winning a further award. This meant that the prizes were more evenly distributed between the industry players.
The award for best women’s fragrance went to Chanel’s Allure Sensuelle, while Cartier’s Délices took the prize for best women’s packaging. Armani Code (L’Oréal) picked up the gong for best communication. In the men’s category best fragrance went to Terre d’Hermès (Monarimport/Clarins) and Prada (Puig Italia) went home with best packaging, while Coty’s Euphoria Men beat the competition to best communication.
In the event
It seems that Cosmoprof has hit on a formula that has found favour with the rather disillusioned selective perfumery sector of previous years. New recruit Aureliana De Sanctis, who has joined Sogecos as managing director, is confident that these events are the way forward. "In a sense I am an unusual candidate for this role, I have not worked on a trade fair before. Instead my background is with L'Oréal and I participated in Cosmoprof as an exhibitor for many years. I think I was appointed because I would provide a different perspective on the exhibition. Trade shows cannot just sell floor space, but they need to create unique events that promote the work of different international partners," she revealed.
This year, Sogecos, in collaboration with Unipro and Gruppo Editoriale Estetica welcomed yet another event to the roster – CosmoLounge – a tailor made space for hairstylists. The 1000 sq m space is reserved for salon owners and managers and offers a series of customised events that are designed to facilitate contacts between top members of the international hairdressing industry. "Developing the extremely modern structure for CosmoLounge is a way to revamp and revisit trade fairs. They are no longer seen as a marketplace, but now have become more of a reference point for the whole world. We can't rest on our laurels," explained Terenzi.
Spinning around
Providing an area for each aspect of the beauty industry to come together and share problems and solutions has been firmly on the agenda for Cosmoprof in the last few years. Initially in the guise of the Cosmopack roundtable and Beauty on Stage, talking shops are being rolled out across the fair. As Zaccagnini put it: “Under the guise of our worldwide observatory we have brought together some experts in their field to share their knowledge of the industry with us.”
This year’s Cosmopack roundtable focused on the difficulty of marrying creativity with technical and economic constraints. Vera Strubi, former president of Thierry Mugler Parfums was on hand to describe how consumers appreciate real innovation and are prepared to pay for it, using the iconic scent Angel as an example. The conclusion of the day was that cosmetics companies would do well to build in long-term strategic thinking to their businesses, that would allow creativity to thrive.
This year's conference Future Store – The coming perfumery: How to win the challenge in the retailing sector also included a roundtable with speakers including Jorg Mingers, president of Profumerie Douglas Italia, Hans-Peter Raab, president of the European Federation of Perfume Retailers, Massimo Zonca, president of Ethos Group and Luigi Marazzi, president of Keybe.
The overwhelming message of the day was that the perfumery channel needs to look at external influences in order to succeed. The real challenge is to keep up with examples of retail excellence from other retailers – the record business and coffee industry in particular – and to bear in mind that they are now playing on an international stage. Retailers are also being encouraged not to try to be everything for everyone; in today’s overcrowded market, niche and specialist players are often more successful because consumers can identify with their message.
L’Oréal Prodotti di Lusso used its stand to convey exactly that message and decked out the stall to look like L’Oréal’s ideal perfumery environment for men. With dark woods, prominent product information and relaxation areas fitted with the latest gadgets for men to play with, the company says that it thinks this is the future of the male grooming market.
“"It's 40 years of beauty which has made Cosmoprof the beauty event rather than just a trade show. That's how we like to see the evolution of the exhibition."” |
Laura Zaccagnini, international marketing and strategies director of Cosmoprof |
“We are the leader in men’s skin care and fragrance in Italy and we’ve conducted a number of studies into what men want from a perfumery. This is a visual expression of the results: clear, directional signage and obvious merchandising. Cosmoprof is about expressing an opinion for us,” says brand manager Camilla Schiavone.
Sogecos has also come up with another way to help the industry use its collective expertise. Cosmoprof has teamed up with the Anti-Counterfeiting Study to provide a team of experts who will now be on hand throughout each edition of the show to advise any exhibitor who discovers incidences of counterfeiting at the event. All exhibitors also received a brochure containing advice on how best to safeguard against counterfeiting, detailing the intellectual property laws in Italy.
A world of beauty
It is clear that Sogecos’ goal for the Cosmoprof brand rests on both providing opportunities for industry to make themselves heard and also to create as international an event as possible. Several of the exhibitors ECM spoke to were adamant that the international element to Cosmoprof was the show’s main selling point. As Christophe Cervasel, founder and ceo of Selective Beauty said: “I think Cosmoprof is a very good opportunity to meet with our Italian clients and more and more it is becoming an international show.”
And Zaccagnini will certainly be pleased to hear that the message is getting through. “I do hope people see Cosmoprof as an international exhibition, that is held in a neutral place.”
The show will surely benefit from the influences of the many international Cosmoprof flanker events. Cosmoprof Shanghai, a regional edition of Cosmoprof Asia made its debut in January of this year and Sogecos’ first edition of The Monaco Spa Event was also a success story, with 53 countries present. Sogecos has plans to extend Cosmoprof North America and is also looking into possibilities for further editions of the show. “The Russian market is an opportunity, but there are still logistical problems that would hinder development. We’d also like to organise something in Brazil to represent the Latin American markets. However, we only want to associate the Cosmoprof name with high quality events. We won’t use it on shows that don’t measure up to our high standards,” explained Terenzi.
In recovery
While Sogecos is casting its net further afield, Unipro, the trade association for the Italian C&T market, is concentrating on what’s happening closer to home.
And all signs point to good news from the Italian C&T market in 2006. Overall the domestic market put on 2.2% to reach €8.792bn in 2006 – a considerable improvement on last year’s static market.
Even in the context of the wider European market, Italy’s performance was up to standard with France gaining 3.5%, Germany growing 3.9%, Spain putting on 4.1% and the UK market increasing 6.5% in 2006, according to Colipa. And these positive results naturally impact on Italian exports, with France being the most important market for Italy’s output, followed by Germany, the UK, the US, Spain, Russia and the Netherlands, according to Fabio Franchina, president of Unipro.
Skin care was the big success story of 2006, with facial skin care, body care and baby care all reporting strong growth. The facial skin care sector jumped 3.9% to €1.152bn and is now a serious contender to become the biggest category in the market, with the hair products sector – which currently holds the crown – diminishing in value by 1.2% for a total of €1.168bn. The anti-ageing and beauty masks subsectors are among the most popular with the Italians, growing at a rate of 6.9% and 9.7% respectively.
Patricia Milton was hot on the tail of this trend with its new skin care duo Riattivare Defining Filler and Rimodellare Advanced Filler displayed prominently on stand.
In the body care arena anti-cellulite treatments was the hero subsector, contributing €103.75m (+14%) to the sector’s €586.56m total, up 6.3% on 2005. Perlier’s Venus brand introduced Aqua Slim Gel Ultra-rapido Anti Cellulite at the show. Foot care products were also flagged as a big climber, up 20.6% for a still tiny total of €27.98m.
The colour cosmetics sector began to reverse its fortunes in 2006, pulling back from 2005’s 1.6% drop to deliver a total of €953.72m, up 1%. The big news of this year will be the launch of the much anticipated Calvin Klein make-up range, which will hit shelves in Italy in June. Manufacturer Markwins was keen to give the industry a sneak preview, with a large stand at Cosmoprof to accommodate the 200-sku strong range.
Women’s fragrance was also buoyant with a heady 4.5% rise to €524.9m and men’s fragrances didn’t do too badly either, up 1.4% to €335.78m. This year’s launches should serve both categories well, with L’Oréal unveiling the latest Armani scent for men, Attitude, at Cosmoprof this year, a men’s fragrance for Ferragamo’s F expected in September and a new Ungaro fragrance for women pencilled in for the year-end. Selective Beauty is also gearing up for a big women’s launch. “Next year we will reveal a major feminine launch and we’ve also signed a license deal with John Galliano for a women’s fragrance, that will be launched at the end of 2008,” says Cervasel.
Men’s lines were less scintillating, with a small gain of 0.8% to €212.13m. Still the men’s cream lotions category is still showing steady growth of 7.2% for €44.74m.
The only categories to lose ground were the hair and bathroom products sectors. Styling products were the thorn in hair care’s side as the gels subsector’s 10.6% loss and the hairsprays’ 6.8% dip impacted on the entire category. Bathroom products just aren’t hitting a chord with consumers and only the liquid soaps subsector managed to eke out any growth – though at 0.4% it’s not exactly anything to write home about. Hopefully Paglieri’s latest gourmand offering and Kelémata’s extensive bath range will go some way towards redressing the balance in 2007.
Unsurprisingly for such an impressive display of sales in each category, the retail channels also reported positive growth in 2006. The biggest channel, the mass market, was the lowest climber with a 0.9% increase (€2.684bn) – most probably affected by the mass market’s darlings, the lacklustre hair products and bathroom products sectors. The perfumery channel was back in the black, putting on 2.5% to €1.268bn and the chemist channel reported a 6% rise to €685.0m. The herbalist channel also continued its march on the more traditional channels, gaining 6% for €146.9m. Giancarlo Bruson, president of the Herbalist Shop Sales Group attributes this growth to the growing interest in all things natural. “The market in natural products is increasing and good growth is expected again for 2007.”
With both Cosmoprof and the Italian market hitting a high note in 2007, Sogecos has a lot to celebrate on the show’s 40th anniversary. And with Sogecos’ ability to innovate, no doubt the next 40 years will be just as spectacular.
Don't rain on my parade
Cosmoprof has now reached such epic proportions that the cracks are
showing in Bologna's infrastructure and the city is finding it difficult to cope with the annual influx of visitors. Sogecos is the first to recognise this problem. As Terenzi admits: "Cosmoprof is using every last resource Bologna has to offer: transport, restaurants and hotels. We have several initiatives designed to ease the pressure. First, spreading the event over several days makes sense and visitors can combine business and leisure time more
easily. We hope for 140,000 visitors, but the rain has caused problems. It often causes overcrowding indoors, which makes cleaning very difficult."
As Michele Porcelli, managing director of BolognaFiere continues: "A lot of money is being channelled into improving the fairground, we've built covered walkways to connect different pavilions and by the end of 2008 we hope to begin the construction of another pavilion. At the same time we will
continue with the refurbishment schedule. We've opened a dedicated motorway exit and now we're the only fairground in Italy to have one. Our events are still hindered by lack of infrastructure. In Bologna we have taken the attitude that its easier to pay for our own infrastructure rather than wait for the government to provide one for us. Next year we will open a large covered car park and we're investing t53m in this project."
Cosmoprof: The visitor
This year ECM spoke to some of the trade visitors to Cosmoprof, to gain a
different perspective on the show. George Hammer, chairman of Urban Retreats, revealed that he visits Cosmoprof every year and has used the show to source packaging ideas for his latest venture. "I visit the show with a team of three to eight people and we will divide the show between us. Each year it’s getting busier and bigger. The decision to start the show one day earlier was definitely a good one. It gives everyone a chance to do business in relative peace and means that visitors don't have to give up their weekends to visit the show. I always find something interesting at this show. There are lots of manufacturers who use the show as their launch pad and it’s also a good way to see niche/small companies that I simply wouldn't have the time to see in London. This year I've seen a great organic Australian company, and a perfect backwash chair that I'm considering for Urban Retreat."
Hammer also told ECM that he is developing a new range of products branded under the Urban Retreat banner. The line will launch this autumn. "We sourced the packaging and components for the range last year at Cosmoprof Bologna and now we are here to prepare the next phase. Urban Retreat is a platform for British beauty experts and so we have come up with a capsule collection of problem solvers for Urban Retreat."
According to Hammer, consumers are looking for products that are backed by real people and are less inspired when brand names do not reflect a passion for beauty or a reputation for excellence. "At Urban Retreat we've got England's crème de la crème, the premiere league of the British beauty industry. The line will be a reflection of the knowledge and expertise that these experts have built up over the years," says Hammer. "Each of these experts have their own personality and we've tried to represent this within the line so the packaging will be consistent but personalised."
Cosmoprof: The exhibitors
Luigi Parola, marketing director at Weruska & Joel thinks that Cosmoprof continues to provide a very important service. "As every year, the tradeshow is certainly an opportunity for us in the perfumery business to talk amongst ourselves. But for us it’s also about business and it gives us an opportunity to meet our international clients. At Cosmoprof, more than Cannes, it’s also a way to talk to our Italian customers and journalists all in one go."
Luciano Bertinelli, managing director at Ferragamo Parfums, is more concerned about the international visitors: "Cosmoprof is a great display case – but it’s still not the best it could be. For us it’s about meeting our international clients without having to fly all over the world, especially our clients from India and Russia. Italian clients aren't such a priority, especially compared to Cannes which is a less international show – though it’s still young. Cannes is an extraordinary show, for us it’s fundamental. However, if Cosmoprof were just about Italy I wouldn't be here. It's the international element that is the show's backbone. It’s not that Cosmoprof has to improve, it’s that it needs to keep up the momentum. They've got to push and tell the world about this show. As for Beauty on Stage it has been a very interesting second year.”