High-level Natural Cosmetics Conference

For the third time, NürnbergMesse invited players in the natural cosmetics market to their industry conference. More than 100 specialists used this platform to get the latest information about new trends and to discuss the hot topics around the market. The breaks were ideal for networking and attending firms’ presentations. The date of the next Natural Cosmetics Conference has already been fixed: it will take place from 20 – 21 September 2011. (Picture: The programme is introduced by the programme director Elfriede Dambacher)
With a quick run through the current market situation and the latest trends, Elfriede Dambacher, the managing director of Naturkosmetik Konzepte Dortmund and programme director of the Natural Cosmetics Conference, set the stage for the two days. The key concept was Green Consuming: boosted by the ethical consumption behaviour of modern heroes of the environment in public life (stars, actors, politicians), she said that the shopping habits of the masses were changing in the favour of sustainability. This dynamic was clearly finding expression in the natural cosmetics market in particular. With Schlecker joining the market, there are now around 40,000 outlets for natural cosmetics in Germany. Within two years, the turnover of natural cosmetics has risen by 100 million euros and has increased its market share to 5.6 %. The market research company GfK has calculated that there are about 14 million users of natural cosmetics, and in 2009 there were about 70,000 more purchases per day (of both nearly natural and certified cosmetics) compared with 2006.

Among new trends Dambacher pointed out “new aging” – she said “forever young’ is out, and lines are becoming sexy. Minerals are on the up, as was creating your own cosmetics (e.g. choice of nature). She said the modern trend in raw materials ranges from regional, exotic and innovative ingredients to apple stem cells. Sustainability is becoming a central theme in natural cosmetics too with, for example, CO₂-neutral products like the New Zealand brands Snowberry or brands such as choice of nature that donate a percentage of their turnover to promoting environmental protection. This also includes the efforts of the Unilever concern to source all its palm oil from certified agriculture by 2015. Dambacher went on to draw attention to the big challenges in marketing: “In the age of Facebook and Twitter there is no traditional marketing any more.” She said the online community (500 million users of Facebook, 65 million tweets a day) now plays a huge role and the consumers themselves are becoming a part of the brand. Garnier and Korres are creating a new dimension with their TV advertising of natural cosmetics that is sure to have an impact on consumer behaviour.

The impact of changing values was the topic dealt with by Dr. Wolfgang Adlwarth in his lecture (picture). He is the division manager for strategic marketing at GfK Panel Services in Nuremberg. GfK surveys show clearly that, despite the crisis, consumers’ orientation towards quality is continuing to grow. Although the financial crisis has made the biggest impact on the health of the German economy since the war, brands are once again gaining ground. The “stingy is cool” wave has subsided and, for the first time for a long while, the turnover of the discounters stagnated in 2009/2010. Seen in this light, the natural cosmetics market finds itself, according to Adlwarth, in an environment conducive to further above-average growth of the industry in the next few years and continuous expansion of product ranges.



The challenges of market development and effective product presentation, particularly at the POS, are considerable – a fact made abundantly clear in the lecture by Professor Dr. Marcus Schögel (picture) from the Institut für Marketing at the University of St.Gallen. The parameters that have to be considered are not only whether a target group can be reached, the image of the business and advertising but also keeping people in the shop by means of atmosphere, orientation, a good product range and knowledgeable and friendly staff. Over and above all of that, they have to be incentivised to buy. In motivating customers, price plays, according to Schögel, a more or less significant role: customers’ willingness to pay depends largely on the design of the POS. He said the modern customer wants to be taken on an emotional journey. He gave various examples of successful selling today through a mix of sales channels (multi-channel management), exclusivity and service (L’Oreal, Bogner, Nespresso). His conclusion: it is essential to have a high degree of professionalism in the retail trade, and market leadership is no longer down to the manufacturer alone. Creating a brand is more a question of intensive collaboration between the partners.

The panel discussion (picture), that produced some interesting approaches, was called “Eye-of-the-Needle Trade”. Juliane Eibl from Müller Drogeriemarkt stated that it was important for the company, using the existing means available, to develop a professional presentation of a product range at the POS through collaborating with the natural cosmetics manufacturers. “We try to ensure that the concepts and the two worlds are compatible.” Of the approximately 300 perfumeries, 100 are already selling a natural cosmetics range. She said that Müller recognised the long-term nature of the natural cosmetics trend and, as a cosmetics specialist, they are reacting consistently to the increasing customer demand. Barbara Summerer, the owner of Parfümerie und Wäschegalerie Boos in Andernach, has recently incorporated natural cosmetics in her product range. She called for strong brands that are specifically designed for perfumeries and cooperation between retail and manufacturers. (Picture: from left A. Ehrmann/ Saint Charles Apotheke, J Eibl/ Müller Drogeriemarkt, S. Schmidt/ Bio Konzept, B. Summerer/ Parfümerie Boos, Prof. M. Schögel/ University St. Gallen, S. Menti/ Biopartner Schweiz)

“All the general rules of packaging apply especially to natural cosmetics and small budgets,” explained Martina Kunert (picture), an expert in packaging design at the firm Lothar Böhm in Hamburg. The shape, colour, material and wording that have to satisfy the competing demands of authenticity, experience and science must at the same time meet all the practical requirements of product use all the way to disposal. At 45 %, packaging is the first criterion that induces customers at the POS to buy a product again. For a third of consumers, packaging is also an indicator of quality, and for 40 % it is an indicator of the environmental friendliness of a company. With plenty of examples, Kunert explained successful applications in the natural cosmetics segment. Whether it’s a sign of authenticity, as in the case of the brand Pangea Organics in the USA who insert seeds into the packaging, or it’s the scientific message that Kunert illustrated with the example of Laveré, the packaging should be the outcome of one coherent concept. She said the customer should be able to decode easily the signals on the shelf. Buyers of natural cosmetics were not impressed by over-packaging; on the contrary the trend was for as little packaging as possible and natural packaging.

Features of the third Natural Cosmetics Conference in Nuremberg were a full and interesting programme of lectures and a high proportion of decision-makers in the audience. Udo Funke, the head of events management at NürnbergMesse and among other things responsible for BioFach, Vivaness and the Natural Cosmetics Conference and Elfriede Dambacher, the programme director, were pleased with the positive feedback from participants. “The atmosphere was great, the discussions and contacts super!” said Sabine Beer, the managing director of Santa Verde in Hamburg. Stefan Menti, the managing director of Biopartner Schweiz similarly came to an upbeat conclusion: “Rarely do you find such a concentration of expertise in one place.” The fourth Natural Cosmetics Conference will be held from 20 – 21 September 2011. (Picture: Lively discussion in the breaks)

www.naturkosmetik-branchenkongress.de