Premium Beauty News - What is the positioning of Cosnova today?

Javier González - With its strongly focused corporate philosophy of offering high quality, innovative, trendy and modern products at exceptionally affordable prices, Cosnova has revolutionized the market for decorative cosmetics with its two brands - Essence and Catrice - in Germany and internationally.

Regarding our positioning, Essence is Cosnova’s designated brand for younger consumers, the core target are the 14 to 25 years old, while Catrice is intended for women aged between 25 to 50.

Black Mania, product of the year 2010

Premium Beauty News - How did you address the latest economic crisis?

Javier González - Cosnova recorded healthy growth rates and navigated through the crisis very well because of its focus on the low-price segment. In Germany and northern European countries consumers have not been too sensitive to the crisis. Consumption has continued normally or almost normally. In the southern Europe, where the overall consumption was more strongly impacted, Cosnova benefited from the crisis. Actually, women do not see colour cosmetics as a luxury category, but as a primary need, and they will not use less cosmetics because of an economic crisis but clearly they will definitely try to save money and try to find better value. Cosnova is at the crossroads of this process. For us the crisis is more a friend than a foe!

Premium Beauty News - What about product innovation?

Javier González - Cosnova is characterised by an enormous creativity. One thing that makes us so unique is our huge volume of new products. Every year Cosnova is able to launch 1,000 new products and colours.

Among our latest and most remarkable innovations are the “Essence Blackmania” eyeliner, which contains carbon black pigments and which were launched very successfully in 2009 and voted to “Product of the year 2010“, or the “Essence Colour & Shine” eyeshadow, which features an innovative application device and special pigment effects. That is outstanding in the mass market, and Cosnova is one of the first brands to have such a product on shelf.

Also mentionable is the “Essence Nail Art” which represents an extensive range of nail styling and nail art products especially for the young consumers. With “Nail Art” it is really easy to make your own nice nail styling at home. Because the “Nail Art” launch was so successful, the range was widened at the beginning of 2010.

Another new and innovative product sub-range is the “essence Pocket Beauty”, which features very convenient beauty products to carry in handbags.

As far as our Catrice brand is concerned, let’s mention the state of the art nail polish, which combines long lasting effect with extreme shine, and which is available in over 30 shades. Let’s also mention the “Maximum Resist” Mascara that offers full volume and long lasting characteristics.

Within 12 months, new colours, new packaging and new formulas will replace half of the standard range. Each year, Cosnova launches 30 theme-orientated, limited editions - 18 for essence and 12 for Catrice.

Premium Beauty News - What were Cosnova’s latest investments and developments relating to technology or manufacturing process?

Javier González - Despite the crisis we have maintained high investment rates. Considering our high growth rate, we absolutely need to invest continuously. Two years ago, in just six months, Cosnova implemented SAP. Furthermore, considering that consumer prices for Essence products are about 2.00 euros and 3.50 euros for Catrice products, Cosnova has no other choice than to keep all processes extremely focused and efficient. Additionally, Cosnova has invested in new displays - the so-called beauty-shops. 6,000 to 7,000 older displays had been already replaced in shops in Germany and Switzerland at the beginning of 2010. We observed immediately a significant increase in product sales.

The last point to mention is our flagship store. Cosnova has established its first retail shop in Offenbach. It is an experiment because we’re not in the retail business, but we’ll definitely learn much about our own retail potential and the shop represents a very good platform to sell other products than cosmetics, for example jewellery, hair accessories, sunglasses, scarves and so on. We want to know if there a potential for a move of Essence outside cosmetics market into a wider world of beauty to offer the consumers the whole beauty package.

Premium Beauty News - Internationally, Cosnova is concentrating its expansion in Middle East, Africa and the USA.

Javier González - The positioning of Cosnova in these areas is exactly the same as in Germany. Cosnova has founded and established a company in the US, Cosnova Inc., two years ago. It was definitely the right decision to expand in the middle of the crisis that hit the consumption especially hard. Our corporate philosophy to offer always high quality and up-to-date products at exceptional prices is paying off. The average price of Essence products in the US is about 2 dollars (excluding sales taxes).

One year ago Cosnova has successfully started to work with Clicks, a strong retailer in South Africa. South African consumers consist also in an economically very strong and growing middle class of black people. In regard to different pigmentation, colours and textures, Cosnova has developed and launched specific products for the South African market. Actually, we did the same for the US market, where there are various ethnic groups with a wide array of different skin types.

Premium Beauty News - What are you expectations for 2011?

Javier González - In 2010 Cosnova will cross the 100 million euro line in net sales for the first time and we expect a very strong and healthy double-digit growth rate this year as well as next year.