an abstract from the article by\u00a0 SANDRA SALIBIAN AND JENNIFER WEIL<\/p>\n
WWD Daily Edition, March 27th 2019<\/p>\n
BOLOGNA, Italy \u2014 It\u2019s testing times for makeup suppliers. In the recent past, they have seen the pace of their category\u2019s sales slow, following years of meteoric rise, and the skin-care segment becoming far and away the fastest-growing beauty category. \u201cLast year we went through an unexpected change,\u201d said Dario Ferrari, founder and president of Intercos, the world\u2019s largest color-cosmetics maker, whose top line suffered in 2018. \u201cWe try to understand why.\u201d
\nHe said for makeup suppliers \u201cthe United States is really messy and confusing,\u201d due partially to the ongoing difficulties at department stores and Sephora beginning to suffer. \u201cDrugstores don\u2019t really have a precise strategy,\u201d he continued, adding that even in California, where there had been a boom in indie color-cosmetics brands, there\u2019s a slowdown.
\n\u201cThe consumers change,\u201d he said. \u201cGen Z, they have a completely different attitude, and I think this is really going to change the world. So we have to create new tools, systems, ways of understanding what is going to happen, and we are really working on that.\u201d
\nThe company plans to implement methods of gathering big data differently. It will cull information from customers, for instance. \u201cThey all like to tell us what they dream of, what\u2019s going to be the future, what they sell, what they don\u2019t sell,\u201d he said.
\nWhat\u2019s gleaned from social media can also be poured into an algorithm. \u201cWe\u2019re going to do a system, which is
\ngoing to really help us understand what [consumers are] thinking,\u201d he said. \u201cWe used to be an authority in color,
\nthen we decided that\u2019s not our job anymore. But it\u2019s wrong,\u201d said Ferrari.
\n\u201cWe want to become [that once again]. We want to understand what are going to be the changes. We are going to have a billion new consumers in the next five, six, seven years.\u201d
\nIn tandem, Ferrari believes makeup will need to be reinterpreted. \u201cLook at lipstick.
\nIt has been the same for 200 years,\u201d he said, comparing it to the phone, which has made major leaps in advancement in the same time frame.
\n\u201cWhen you consider, roughly, the number-one company in cosmetics is L\u2019Or\u00e9al, which does 26 billion [euros], take Samsung. They invest 25 billion in research and innovation,\u201d he said.
\nThe relatively small cosmetics industry, he believes, will have to borrow technology from other businesses.
\nDistribution is also in the executive\u2019s scope. \u201cBetween Europe, the United States and Asia, there are three different stories,\u201d
\nhe said, adding: \u201cToday we cannot run everything out of Italy. We have a strong team in Asia, in the U.S., and that includes marketing, R&D and local needs.\u201d
\nIntercos has invested in South Korea, where the company is developing products for Asia \u2014 China, mainly \u2014 but
\nthe Korean products are also selling around the world, with big success, for
\ninstance, in California.
\nIntercos was presenting future-facing trends, including more than 500 products, at its headquarters in Agrate Brianza, Italy.
\nThe display was titled Studio 47, referring to the company\u2019s 47 years in existence.
\nIt was comprised of seven rooms, each themed and catering to a category and particular regions. \u201cCult,\u201d for instance,
\nwas about feeling special and idolized, with a focus on lipsticks and mascaras. It
\nwas centered on what could be tomorrow\u2019s cult classic, and was Europe- and U.S.-driven.
\nOther trends were:
\n\u2022 \u201cLa Divina,\u201d with gold and glitz, channeled the feeling of being excessive and adorned. Its product focus was on
\neyes and face, bringing back contouring, and a regional focus on the U.S., Europe and Middle East.
\n\u2022 \u201cFight Club,\u201d with a nod to the U.S. and Korea, had to do with feeling guarded and in control, and largely offered skincare solutions.
\n\u2022 \u201cLuminary\u201d \u2014 think lit and glowing \u2014 concerned the way light hits skin, and subtle glow and glossy effects.
\n\u2022 \u201cClash\u201d referred to feelings of being chaotic, happy and unique, with clashes coming from today\u2019s collaboration
\nculture. This theme was skewed toward Asia and America.
\n\u2022 \u201c5G\u201d translated into products that can reshape and augment features, with a concentration on eyes and lips.
\n\u2022 \u201cVoodoo Den\u201d took a cue from modern-day witches, with the idea that potions, beauty rituals and ingredients can be incorporated into products for a more robust marketing story.
\nIntercos has committed to integrating sustainability processes and activities throughout its supply chain, explained Gianandrea Ferrari, the company\u2019s strategic marketing account director, vice president for Europe and the Middle East.
\nHe believes products that are sustainable are those that are good for you \u2014 in other words, clean \u2014 and that Intercos is putting that philosophy into practice.
\nThe executive showed a cardboard makeup palette with aluminum trays that can be recycled, as an example. It\u2019s due out in March, and the company plans\u00a0 to introduce new products following its sustainable principles every six months.
\nOverall, Intercos has 11 innovation centers, 15 factories and 6,000 employees, of which 900 are dedicated to innovation. \u201cI think the future is all in our hands,\u201d said Dario Ferrari. \u201cThe future is to understand better and before the others where the market is going.\u201d
\nHe explained: \u201cWe have done everything necessary to really win the battle.\u201d<\/p>\n
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