Arcancil accelerates its development
“We have partnerships with strong and highly motivated international distributors, and in markets with high potential but where barriers to entry are lower than in France. We are growing in all countries we have open. The first step was to limit the number of doors to reconstruct a high quality positioning and we are now in a second phase with the expansion of our distribution network in each market. Our goal now is to strengthen Arcancil at all levels, including its distribution in France and the expansion of the product portfolio to double our turnover within three years,” explains Anne Delleur.
To get the best from this new stage and accelerate growth, the President of Institut Caméane made sure to stabilize the company’s financial structure and increase its funding. CAM Cereals, which held 51% of Institut Caméane came out of the capital and Anne Delleur, which controlled the remaining shares, took the majority with the support of French equity funds OSEO and FSI Régions.
Thus, the company is ready to address new challenges. Effective May 2012, the end of the exclusive distribution agreement with Galeries Lafayette, should allow Arcancil to reach 300 or 500 doors within three years, therefore increasing its potential on the French territory. Internationally, Arcancil prepares its return to Russia and the rest of Eastern Europe where the brand still enjoys a strong reputation.
In this context, Arcancil is broadening its products portfolio and aims to reach more than 500 references within three years. The brand’s displays for eyes products have been completely redesigned and are being deployed at Galeries Lafayette. "We came out from the usual pattern with mascaras on a side and eyeliners or eye shadows on the other, and we have created an ’Eye Color Bar’, presenting products according to their colour range, not their category. Assorted colours of eye shadows, eyeliners and mascaras are gathered. This new ’Eye Color Bar’ has been tested and facilitates consumers’ choice and encourage impulse buying. In order to further increase the average purchase, we have also placed our Smoky Eyes Cabaret makeup kits, available in eight colour assortments, next to the matching colours in the bar,” says Anne Delleur.
Parallel to the development of Arcancil, Institut Caméane is launching its new private labelling division. “Our goal is to be recognized as a makeup expert,” announces Anne Delleur.
According to the Institut Caméane’s President, the demand for private make-up brands is particularly strong. “Retailers we work with around the world generally express common requirements: a European brand, possibly French or Italian, with products offering good value for money and the possibility of exclusive agreements. But when we look at the make-up market, brands there are hardly any brands that meet all these criteria. Private labelling therefore comes as the solution.”
But in the makeup sector, where 30% of all SKUs are replaced every year, there are challenges to overcome. Not only in terms of development, but also in terms of stock management and merchandising. “This product category requires real expertise,” confirms Anne Delleur. And retailers that have to handle all kinds of cosmetics cannot be experts in all areas. "We have this expertise, and the fact that we develop our own brand is a real asset because we have a real knowledge of markets and of the operational reality. We will not recreate Arcancil under another name, but offer our expertise for the development of specific lines, adapted to local market needs.”
Institut Caméane also plans to draw on the expertise gained in ethnic makeup lines including the specific developments for certain skin tones, as well as on its knowledge of makeup habits around the world.
Indeed, in the context of its strategy to boost Arcancil on international markets, Institut Caméane continuously grew a very good knowledge regarding the particularities of each market. This led to the development, for darker skin types, of mattifying foundations formulated with specific rates of pigments, or alternatively, of liquid foundations and powders in pinky shades adapted to carnations of a market as Kuwait, or even ultra-pigmented eyeshadows for the Brazilian market.
Institut Caméane more specifically targets retailers with 100 to 500 outlets. The first contract has been signed for a launch scheduled for late 2013 / early 2014 and the company aims to develop about ten lines in the next five years. Ultimately, this may require acquiring manufacturing or filling industrial facilities.