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When Thomas launched Caudalie in the early 1990s from the idea of using polyphenol, the antioxidant in grape seeds, for antiaging products, there was nothing like it on the market. Now there are Vinothérapie spas in France, Italy and Sonoma Valley in California, and the brand is sold in 10,000 doors around the world. Thomas estimates that part of the appeal of Caudalie in the U.S. is the bigger picture as well as the patented scientific aspect of their product. "Consumers love the idea—this story of the art of the vine—that is so different," says Thomas.
One of the latest beauty brands to emerge out of Europe is called Icy Beauty, a company that has developed antiaging products that use high-speed cooling techniques pioneered at the European Space Agency. Its growing popularity in the U.S. speaks to the continuing interest in European niche brands. "I spend a lot of time on the sales floor," says Lauren Freedman, who, after two decades at a cosmetics major, started her own company, called Clé Specialty Cosmetic Services, which focuses on bringing emerging European brands to the upscale U.S. market. "They all say they like things that are European, and they still believe that France is the leader in skin care. It's just sort of a given. The French get luxury cosmetics."
While most niche brands, such as Caudalie and Icy Beauty, are distributed in prestige venues like department and specialty stores, mass-market retailers are quickly catching on to the popular European niche trend. This October select Walgreens pharmacies will begin offering more than 130 skin-care products from seven European brands, including Red Water from Greece, Spain's Olí, Art Deco from Germany, the Swiss brand Skincode and, from France, Institut Arnaud, La Fleur Organic and Spa Aquatique.
Paul-Noël Ortlieb, export manager for Institut Arnaud's parent company, Groupe Panther, says the deal with Walgreens is a practical one. "We wouldn't dream of being able to enter the American market on our own because it would be beyond our financial means," he says, noting that the participating brands collectively share the marketing costs. Indeed, selling their skin-care products in an American drugstore chain is a bit different from selling them in French pharmacies, which, unlike their U.S. counterparts with their groceries, magazines, candy and toys, retain an austere, medicinal environment. Ortlieb believes it will be a good fit. "The displays will be strategically conceived, well placed with attractive lighting and marked as a European Beauty Collection on the floor of the aisle. It will give a French-style grand magasin universe in an American drugstore chain."
This "masstige" deal is a bit of a sea change for a chain like Walgreens, which has until now stocked its shelves with the major beauty products from the global leaders. "[American] women are searching for alternatives," says Kathy Steirly, divisional vice president and general merchandise manager for Walgreen Co., "to have the department-store experience without the hassle and at a better price."