News

Casablanca, Johannesburg, Cairo, Bangalore and Mumbai are the main 2010 openings of ...

VOGUE divas Anna Wintour and Carine Roitfeld

Interviewed by AFP, Jean-Jacques Picart (consultant of LVMH) and Donald Potard, ...

Italian luxury shoes and bags leather manufacturer TOD'S has launched in its Paris flagship ...

CPP, organizer of BUSINESS OF LUXURY FORUM 2010 edition annouces the main topic of the ...

Crisis is deepening in the auto sector in the Central and Eastern European region too. ...

In a recent interview to Italian daily IL SOLE 24 ORE, Mr Francesco Formiconi, COO of GIORGIO ...

MORE NEWS

People

Pierre Berge met Yves Saint Laurent in 1958, in Paris. At the time, Yves Saint Laurent was ...

Born with a humble background in the small town of Adjud in Romania, Angela Gheorghiu has not ...

Review

Although, some luxury hotels have been doing everything they could to ''ignore'' the ...

Sunday night Oscars have once again shined in full Hollywood style. An impressive elegant ...

Analysis

Those of you who frequently abroad, irrespectively of age, gender or sexual preference, ...

Mr Yves Saint Laurent with all time friend and muse Catherine Deneuve

For the fourth consecutive year, YSL has continued to be the black sheep of the GUCCI GROUP, ...

Luxury cosmetic salons, an opportunity for start up business in Central and Eastern Europe

Opportunities 09 January 2010

DIOR

Click on the picture to see gallery (1 picture)

The first such cosmetic salons were opened over a decade ago by ESTEE LAUDER in Budapest, Bucharest and Prague. They have been operating in the flagship store of ESTEE LAUDER as small salons with facial and body cosmetic treatments, most of them with 2 or 3 treatment rooms. Recently such branded salons have opened in Warsaw (Poland), the leading ones being DIOR, SHISEIDO and KANEBO. They are monobrand salons with small treatment rooms. Unlike Estee Lauder which is operated directly by the US company, these salons are franchised with local partners. Speaking to owners of these salons we were recently told they are fully booked sometimes talking more than a week for a lady to set up an appointment for a treatment. The majority clients are women in their mid 40's but there are also men who are clients of such salons. These salons are obsviously different than the salons which only use the products of the known luxury cosmetics brands. They present the advantage that they provide a luxurious environment which reflects the philosophy of each brand with their original furniture and branding. Unlike the regular salons, they also offer more confidence to customers as they are certain to get a quality service by personel which have been trained by the top luxury brands. The investment in such as salon is around EUR 2.000/sqm and there are royalty and franchise fees which are paid to the brands. These fees are calculated depending on the estimated turnover and of course potential of the market they are in. This is a winning business model for cosmetic companies as they can position themselves are more upmarket therefore distance themselves from the regular shelves at Sephora's or Douglas's. Further details can be obtained by emailing us: office@cpp-luxury.com