Gloss.com Nine Core Brands To Differentiate Revamped Beauty Site

When beauty e-tail site gloss.com relaunches this spring under the ownership of Estee Lauder, Chanel and Clarins, the site will feature "the collection of the brands that people most want," Chanel President Arie Kopelman said during a Cosmetic Executive Women meeting in New York City Feb. 12.

The brands are what will differentiate the portal from the slew of beauty sites that debuted in late 1999, Kopelman said, noting, "We learned that the companies that went out of business did not have the big brands."

Gloss.com will feature nine brands when it debuts, according to Clinique President William Lauder. In addition to the Clarins, Chanel and Estee Lauder brands, the site is expected to include additional Lauder labels such as Clinique, MAC, Stila and Bobbi Brown.

Lauder, Chanel and Clarins announced they would partner to recreate the beauty site in July after Lauder conducted consumer research showing online shoppers were interested in a multi-brand offering, but not an infinite number of products (¹ ).

An aggressive marketing initiative will back the gloss.com launch, Kopelman added. All three of the firms will put gloss.com tags on advertising and promotional materials, and the site eventually will have a "major" advertising budget.

"We plan to be extremely aggressive, and there is no reason whatsoever that this can't be and won't be a huge success," Kopelman maintained.

Clarins President and CEO Joseph Horowitz expects e-commerce to account for 6%-10% of Clarins sales, with half coming from gloss.com and Clarins' namesake site and half from the sites of other retail partners.

A strategic goal for Chanel is to gain a "fat share" of the online beauty business, which would total $350 mil. if only 5% of the $7 bil. prestige beauty market moves online, Kopelman said. "It's a very serious business and that would be much larger by far than any 10 key doors put together," he added.

Online beauty sales could become even more significant, Ernst & Young Global Director of Retail and Consumer Products Stephanie Shern said. By 2005, 10%-12% of beauty and fragrance sales will occur online, she predicted.

"Brands are where consumers are going, and it's where they want to go for buying online," Shern said. "Consumers like a multi-channel strategy, so they go into stores, they see the things that they like, they get to know the brands that they like and they go online to look for the consistency of the products."

Lauder noted the gloss.com experience will reflect a similar selection and service level to shopping in-store. "Essentially, the experience the consumer gets when they shop at a better store like Saks Fifth Avenue or Bloomindale's will be replicated online," the exec said.

Gloss.com will be a "progressive customer interaction" experience, Horowitz concurred. A visit to the site will be similar "to the human environment that you have when you go into a store and talk to a well-trained...skin care specialist."

"We have ended up with a module that I believe feels, acts and is like Clarins," the exec added. "This will be a friendly, warm, informative, highly professional result."

The interactive site is built around information collection, Horowitz said. Visitors will answer questions, allowing the three firms to gain consumer data while providing a "beauty prescription."

A panel of sales representatives will respond to questions via e-mail in as close to real time as possible, Horowitz said. Additionally, the firms plan to overcome sampling issues associated with the online business by offering incentives to drive consumers in store or by including samples with product purchases, he added.

The site is an enjoyable and pleasant place to shop, the exec said. "Not only can you get your best brands, but you can have a good time, and every time you come... we learn more about you for the next time you come."

"Gloss.com is a chance to become sort of a good friend for a PC user, and the combination of all those attributes should make us clearly different from the casualties," Horowitz maintained.

Co-founded by Sarah Kugelman and Deanna Kangas, gloss.com was launched in 1999 (² (Also see "Gloss.com Offers First Web Site "Founded By Beauty Insiders"" - HBW Insight, 9 Aug, 1999.)). Lauder acquired the site in April, establishing its first stronghold in the online market (³ (Also see "Estee Lauder's Gloss.com Acquisition Ensures Survival Of Beauty Site" - HBW Insight, 17 Apr, 2000.)).