Nars Skin Care, Free-Standing Stores Planned Under Shiseido

Makeup artist brand Nars will enter the skin care category in November backed with funding and R&D from Shiseido.

Although Francois Nars remains the creative force behind the brand, Shiseido's experience in the category has helped create high-performance formulations for Nars' skin care, CEO and Exec VP Jennifer Lister said.

"Skin care has been something Francois has wanted to do since the day we started the company," Lister maintained. "Shiseido has really empowered us to get Francois' vision out there in a very pure and global way." The Japanese beauty giant acquired Nars nearly one year ago (¹ (Also see "Shiseido Product Portfolio Gaps Filled With Nars, Zirh Buys" - HBW Insight, 29 May, 2000.)).

The skin care line was developed by a "formidable team" including Shiseido and Nars in collaboration with packaging designer Fabien Baron. Although packaging for the line is "complementary" to the cosmetics collection, it will stray from Nars' traditional black boxes and cases, Lister said.

The initial 13-SKU line will include basic cleansers, moisturizers and masques, Lister explained, noting "Francois is committed to regimes that are easy and simple to use" with a "visible payoff." Between two and four new products will launch subsequently each year for the following two years.

"It's a direct extension of our color, so it is going to be targeted toward our current consumer, and we'll have a very strong outreach to extend that customer base," the exec said. Skin care is a natural progression for Nars because it is an essential component of beauty, Lister said, noting skin is "the canvas on which color is created."

Makeup artist Nars will continue building his cosmetics collection as well. Liquid liners are planned for fall and cream eyeshadows are in development. Nars' premiere fragrance is slated for introduction in 2003, Lister added.

With its current product portfolio rapidly expanding, Nars is "aggressively" working on designing and building a free-standing store concept. The company's first store is expected to open in New York City's SoHo district by the end of the year.

The store will focus on service, education and customer interaction, Nars said. The flagship will act as a marketing vehicle portraying the "purest form" of what Nars represents.

Although only one store currently is under development, an aggressive stand-alone store strategy is in place. When Shiseido acquired the company last year, the firm said Tokyo would be an ideal location for a Nars flagship store.

Aside from the possible free-standing store expansion, Nars will commence distribution in Japan in September, Lister said, adding Shiseido's strong international infrastructure is helping build the brand's overseas presence. The company also is reviewing distribution in China and is further expanding in France, Germany and the UK.

"While the essence of the company hasn't changed, our identity has really been strengthened and become more visible through the Shiseido acquisition," Lister noted.

In the U.S., Nars has more than doubled its 75-door distribution since the acquisition. The brand is now sold in 154 stores and will be available in 168 doors by the end of 2001. The company added Neiman Marcus and Bergdorf Goodman as retailers during the past year.

"I think we have a huge potential for expansion right now," Lister said. "Primarily because of the restricted finances of an independent brand, we were very cautious of our early roll out." The company now is planning to expand significantly over the next 36 months, the exec said.

The firm's namesake Web site is scheduled to launch in the third quarter, operating both as a marketing vehicle and sales generator. Positioned as a destination site representing Nars' vision of where beauty meets fashion, the site will feature makeup tips from Nars, fashion news and a guest editor column. The first column will be written by actress Sandra Bernhart.

Although Nars created targeted advertising prior to its acquisition by Shiseido, the firm has now trebled its advertising efforts, Lister said.

A new full-page print ad for summer color, breaking in Vogue in June, features a model photographed by Nars. The makeup artist is releasing a new book featuring before-and-after shots and makeup application strategies, which will be available at Nars makeup counters.