Business Retail Innovation Brands Unilever sales figures ...

The market for Halal beauty products is predicted to grow at a CAGR of 13.67%over the next few years, representing growth opportunities for brands and suppliers

The popularity of Halal cosmetics has beengaining ground over the past few years,with initial interest largely being sparked

by Muslim women looking for products thatadhere to their beliefs.

However, a new report from TechNavio hasrevealed that the Halal cosmetics market looks setto boom – and not just in markets where Islam isthe prevalent religion.

The global Halal cosmetics market is predictedto grow at a CAGR of 13.67% from 2014-2019,representing huge growth opportunities forbrands. According to the report, the market isbeing driven by higher demand for safe andquality cosmetics, powered by Halal certificationfrom Muslim and non-Muslim countries.

Muslim consumers often choose to buy Halal,an Arabic term that means ‘permissible’ or‘lawful’, because the certification guarantees theproducts do not contain alcohol, are not tested on animals and do not contain certain non-permissible animal-derived ingredients. However, Halal-certified cosmetics are also

gaining popularity with non-Muslim consumerswho associate Halal-certification as a mark ofpurity with cruelty-free processes.

As the market grows, scope is emerging foringredients and packaging companies to adopt

Halal principles too. Just last year, ingredientscompany Croda announced that its UK RawcliffeBridge manufacturing site was now able to offer avariety of Halal-approved cosmetic ingredients,while speciality chemical manufacturer Evoniksaw its Essen and Duisburg plants classified asHalal back in 2013. Meanwhile, cosmetics brandscontinue to seek out Halal certification across theworld: Talent Cosmetics became the first Koreanbrand to gain Halal certification from theMalaysian government just two months ago.

BusinessUnilever sales figures take a tumble in 2014page 2

InnovationAn insider’s guide to theaerosol market in Mexicopage 9

RetailLa Prairie opensboutique in Parispage 6

BrandsClinique debutsAromatics inWhite collectionpage 10

Puig strengthensfragrance portfolioSpanish fashion and fragrancecompany Puig has acquiredtwo new fragrance brands.

The third-generation, family-owned business announced on23 January that it had acquiredfragrance brands Penhaligon’sand L’Artisan Parfumeur fromFox Paine & Company.

The two brands now join anumber of successful premiumPuig-owned fragrance names,including Prada Parfums,Comme Des Garçons Parfums,Nina Ricci, Paco Rabanne,Carolina Herrera and ValentinoParfums. Puig also holds thefragrance licenses for DavidBustamante, Pull & Bear and Springfield.

Terms of the Penhaligon’sand L’Artisan Parfumeur dealshave not been disclosed.However, in a statement, Puignoted: “Puig is committed tocontinue expanding itspresence in the prestigeperfumery category. Thisacquisition firmly positions Puig in the growing exclusive,high end fragrance category.”

British fragrance house Penhaligon’s was established in 1870 and today has its ownstores in the UK, France, HongKong and Singapore, as well asdistribution partners in “everymajor fragrances market”,according to the company’sHead of Global Marketing,Matthew Huband.

L’Artisan Parfumeur Paris,meanwhile, was founded in1976 and operates retailboutiques in France. It also has a global presence.

The current Penhaligon’s andL’Artisan Parfumeur team willcontinue to operate both brandsled by Lance Patterson.

2 February 2015 cosmetics business news 1

The market is driven by higherdemand for safe cosmetics, poweredby Halal certification from Muslimand non-Muslim countries

“ “NEWS

cosmeticsbusiness.com twitter.com/cb_beautynews 2 February 2015 Issue 3

HALAL-CERTIFIED COSMETICS GAINGROUND WITH GLOBAL AUDIENCE

Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission.permission.

Unilever has registered a 2.7% dip in total2014 sales, falling to u48.4bn. And itsoutlook was not particularly bright either.

Unilever said: “We do not plan on a significantimprovement in market conditions in 2015... we expect our full year performance to be similarto 2014 with the first quarter being softer butgrowth improving during the year.”

However, net profits were up 5% to u5.5bn andUnilever remains in a relatively strong position,able to take advantage of plummeting oil prices to save on raw material costs. Asian sales anddestocking in China could be concerning though:

Breast augmentations, tummy tucks and nose jobs have fallen out of favour in the UK,according to the latest statistics to be released by the British Association of Aesthetic PlasticSurgeons (BAAPS).

Despite still retaining its spot at the top of thecosmetic surgery list in terms of popularity, thenumber of women having breast augmentationsplummeted by 20%. And it was a similar story fortummy tucks, or abdominoplasty, which fell 20%,down one place in the popularity stakes from2013. The number of women having rhinoplastyalso fell 20%, down to sixth place from fifth in2013. The shift in the number of theseprocedures taking place was reflected in thenumber of overall cosmetic operations performedlast year. BAAPS reported that cosmeticoperations fell 9% overall from 2013.

Rajiv Grover, consultant plastic surgeon andformer President of the BAAPS, said: “Thedifference between 2013 and 2014 may seemsurprising, but the dramatic double digit rise lastyear was very clearly a post-austerity ‘boom’ andfigures are simply returning to a more rationallevel. It might seem counter-intuitive that asplastic surgeons we could possibly welcome sucha change, but we are pleased that the public arenow so much more thoughtful, cautious andeducated in their approach to cosmetic surgery.”

Grover added that aesthetic preferencesnaturally evolve over time, with current trendstending towards a ‘less-is-more’ look,where natural features are favoured.Read more at cosmeticsbusiness.com

sales growth in emerging markets in Asia was just5.7% in 2014. Unilever’s results were boosted byDove Nutrium Moisture Body Wash and Brazil’slaunch of Baby Dove.

But JP Morgan Cazenove noted its shares –selling at 2901p before going to press – are closeto a 12-month peak. “We see downside risks to a share price at historical highs,” Analyst CelinePannuti said. Unilever’s market share gain, sheadded, “has lost steam, while it may face a morecompetitive environment. Having delivered bestin class top-line, we caution that top-line like-for-like [sales] could disappoint.”

business

COSMETIC SURGERY IN DECLINE

UNILEVER SALES FIGURES TAKE A TUMBLE

Two US packaging companies have entered intoa combination agreement in a transaction with a combined equity value of $16bn.

MeadWestvaco Corporation (MWV) andRockTenn will join together in a transaction, whichis estimated to generate total annnual synergiesof $300m over three years.

The combined company, the name of which will be decided upon when the deal is closed,aims to become a leading global provider ofconsumer and corrugated packaging. It will havea combined net sales of $15.7bn and adjustedEBITDA of $2.9bn.

The agreement was unanimously approved by both companies’ Boards of Directors. MWVstockholders are said to recieve 0.78 shares ofthe new company for each share of MWV alreadyheld. Meanwhile, RockTenn shareholders will beable to choose whether they want to recieveeither 1.00 shares of the new company, or cash inan amount equal to the volume weighted averageprice of RockTenn common stock during a five-day period.

Steven Voorhees, Chief Executive Officer ofRockTenn, said: “This transaction brings togethertwo highly complementary organisations to createa new, more powerful company with leadershippositions in the global consumer and corrugatedpackaging markets. This is a terrific opportunityfor shareholders, employees and customers ofboth companies, all of whom stand to benefitenormously from the combination. Importantly,our two companies are also an exceptionalcultural fit, sharing a commitment to exceedingcustomer expectations and a focus on developinginnovative packaging solutions. Planning for theintegration of these two companies has alreadystarted and we expect to expeditiously realise thefull value of cost synergies we have identified.”

Voorhees will serve as Chief Executive Officerand President of the new company, while JohnLuke, Jr, currently Chairman and Chief ExecutiveOfficer of RockTenn, will become Non-ExecutiveChairman of the Board of Directors.

US packaging companiesenter combination deal

Business: Swiss crisis impactsGivaudan shares 4

Trends: Cosmetics Business Marketspreview: global skin care 5

Retail: La Prairie opens flagshipboutique in Paris 6

Expert Advice: Yvette Snowden onhow to break into major markets 7

Digital: REN and Rankin team up fortelevision advertisement 8

Innovation: An insider’s guide toaerosols in Mexico 9

Brands: MTherapy makes UK debutwith Beauty Pods and Podlets 10

People: Gallimore for NARS 11

The Final Word: Godrej UK’s JulieLardieg talks NPD and lack of it 12

News Editor Lucy Copp

Reporter Georgia Seago

Sub-Editor Austyn King

Freelance correspondentsSarah Cohen, Hannah Berry George, Adrian Holliday, PatriciaMansfield-Devine

Production Designer Ross Murdoch

Art Editor Sibylla Duffy

Digital Production Nita Salem

Editorial Director Erika Hatva

Managing Director Colin Bailey-Wood

HPCi Media LimitedUnit 1, Vogans Mill Wharf, 17 Mill Street,London SE1 2BZ, UK+44 20 7193 1279

Editorial +44 20 7193 [email protected]

Subscriptions +44 20 7193 1279 [email protected]

Articles published in this newsletter may onlybe reproduced with permission. The publisheraccepts no responsibility for any statementsmade in signed contributions or in thosereproduce from any othersource.ISSN 2057-1984

CONTENTS

HPCimedia

Subscription DetailsThe subscription includes full digital access to thecosmeticsbusiness.com website,as well as the weekly CosmeticsBusiness News and monthlyCosmetics Business Marketsprint magazines.

NEWS


Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission.

business

Europe’s largest health and beautymarketplace, Wahanda, has acquiredLemon Labs, a Lithuanian-based app

development consultancy.The acquisition was made as part of a strategic

focus for Wahanda to become a mobile-firstcompany. Wahanda currently allows onlineclients to search for andmake bookings for healthand beauty related servicesand treatments via itsbooking service atwahanda.com.

Lemon Labs marksWahanda's secondacquisition in recentmonths; in November lastyear, Wahanda acquiredGerman companySalonmeister, after raising $26m in investmentfunding in 2014. Meanwhile, Wahanda alsoacquired Salonium in 2012, a Lithuanian salonmanagement system. Lopo Champalimaud, CEOand founder of Wahanda, said: “We have been

Budget retailer Poundland – which introduced its100-sku Make Up Gallery colour cosmetics rangeat the end of 2014 – has revealed a new set ofnumbers that are not as polished as expected.

Sales climbed 10.2% in the 13 weeks to 28December on a constant currency basis. Butactual sales came in at £328m, a 9.8% climb. Butthe brand’s numbers could be viewed with someconcern: overall growth has slowed since the 15%rate claimed from the first half of the year.

The discounter would not reveal how muchbeauty and personal care sales were worth, butPoundland told CBN that sales of its Make UpGallery have been “extremely successful”(boosted by a positive write-up in Vogue).

Make Up Gallery is the result of trials betweenits own products and high-end competitors, it said. An industry insider told CBN thatPoundland is completely serious about its beautyefforts: “They’ve teamed up with Lornamead(part of the Li and Fung group). They’ve got itmade properly and taken packaging cues from anumber of brands. The prices are astonishing.”

Poundland, which floated on London’s stockexchange in 2014, plans to open 60 new stores inthe next 12 months and has more than 500 storescurrently. City analysts are divided on immediateprospects. JP Morgan Chase raised its target priceto 381p, while Jefferies Group set the bar muchlower at 260p and put an Underperform rating onthe stock. Just before going to press Poundlandstock was selling at 342.2p. Some investorsremain cautious on a counter-attack by bigretailers such as Tesco and Morrisons.

working with the Lemon Labs team for the pastsix months in building our consumer and businessapps, and the results speak for themselves. Lastweek we broke through the 150,000 downloadsmark, and that number is growing 20% month on month.”

“The future of Wahanda is in mobile, and weare delighted the LemonLabs team is now officially an integrated part of ourtechnology team and cancontinue to lead our productthinking and development, to ensure we deliver the bestpossible mobile experiencefor our users.”

Tomas Dirvonskas, Co-Founder of Lemon Labs, said: “Wahanda’s

bookings show that 50% of all hair and beautyappointments are now made via a mobile device.” He added: “By becoming part of the in-house team we will be able to shape Wahanda’sproduct offering to an even greater degree.”

WAHANDA ACQUIRES LEMON LABS

BUDGET RETAILER POUNDLANDREGISTERS SALES CLIMB

NEWS IN BRIEF

The president of malegrooming brand Kiehl’s hassecured a multi-book dealwith the Crown Publishing

Group. The first of thebooks, which focus on men’s

grooming and lifestyleadvice, will hit the market as

part of Crown Senior VicePresident Pam Krauss’

spring 2016 list.

More than 300 Henkelemployees across different

business functions have movedinto the company’s new

Shanghai management centre.The modern office complex is

located in the city’s fast-growingYangpu district, and has been

designed to encourage aculture of cooperation and

transparency, featuring a varietyof workspaces.

Actor Bruce Willis is toprolong his contract with

LR Health & Beauty Systemsuntil 2019. The partnership

has already developed threefragrances, which are

internationally marketedthrough sales partners

and an online shop. Thecollaboration started in 2010

with the first fragrance,Bruce Willis. Two years later,

Willis presented his firstwomen’s fragrance, Lovingly,and at the beginning of 2014launched his third fragrance,

Personal Edition.

UK-based natural and organicbeauty distributor Pravera has

agreed a sponsorship deal withEnglish Netball as part of itsstrategy to increase brand

awareness for natural make-upbrand benecos, one of the

highest performing brands in itsportfolio in the UK. The

agreement includes a series ofadvertisements and pull-out

brochures in the official Netball Magazine.

Botanically-derivedingredients supplier

Floratech has announcedRoss Organic, based in

California, as its newdistributor in the western

region of the US. Thepartnership aims to continue

to help Floratech provide its products to customers

in the region.


The trend for cosmetics that complement a healthy lifestyle is continuing to grow,according to analysts. Ina Mitskavets,Senior Consumer Analyst at Mintel, notedthat young adults in the UK are continuingto develop healthier habits. “Intenseeconomic hardship has forced youngpeople to re-evaluate how they spend theirmoney,” she said. “As a result they areincreasingly shunning vices like smokingand drinking. Millennials are also growingup more informed, with more than halfciting that having good health is imperativeto being successful and accomplishingtheir goals.” This trend has prompted aflurry of NPD from beauty brands looking to tap into this growing market. One of thelatest launches is activbod, which aims to appeal to fitness fanatics of both sexes. It is specifically formulated to help the bodyprepare for, and recover from, a workout.The range comprises six non-genderedproducts at low-mid price points includingskin coolers, muscle warmers andanti-redness treatments. Read moreat cosmeticsbusiness.com


The Swiss Central Bank abandoned itscurrency cap two weeks ago, in a move that stunned financial markets.

But the knock-on effect for some domesticcompanies was particularly significant: Givaudan’sshare price tumbled by more than 16% shortlyafter the three-year-old cap on the franc (CHF)was made.

However, Analyst Adam Collins from Liberum said Givaudan is unusual among export-orientated Swiss operators because it has little profit exposure to the Eurozone.

He said “[Givaudan] has only a very smallEurozone profit base because of expensiveoperations in the region such as the perfumeschool/fragrance clinic near Paris and R&Dcentres, so movements in the Euro/CHF have a negligible impact on profit margins andabsolute earnings.”

However, Collins said the move will affectEurozone revenues for Givaudan. Broadly,

The sputtering pace of Chinese economicgrowth could be cause for alarm. China’s 7.4%growth rate in 2014 appears impressive, but inreality it is poor given China’s previous break-neck pace and its lowest economic clip since1990. How the country’s burgeoning cosmeticsplayers – such as Chinfie, Houdy, Herborist andJahwa – will perform remains to be seen.

In order to understand the current economy, a grip on the Chinese property market is needed.Property isn’t just economically important butsymbolically perceived as solid. In recent times,many middle class Chinese house-hunters havebeen borrowing heavily in order to invest inproperty. But such borrowing has a profoundeffect on disposal spend.

Demographically, Euromonitor has pointedout that Chinese woman are increasinglyfinancially independent, computer literate andwilling to spend. But beauty sales remain lowcompared with other emerging economies suchas Brazil. The downturn in Chinese personal care spend already began some time ago: overallpersonal care sales plunged to $21.9bn in 2013compared to $24bn in 2012, according to datafrom analyst Research In China. Mintel AnalystJamie Rosenberg says Jahwa, which controls ten local brands, is one Chinese player that willemerge stronger from the situation, despite hugepressure from P&G, Unilever and L’Oréal.

“It is highly likely that foreign products willlose their appeal,” he noted, “and many Chineseconsumers will favour Chinese products in partdue to growing nationalism, but also becausebuying quality will no longer mean buyingforeign.” Read more at cosmeticsbusiness.com

national currency movements of up to 2% or 3%are generally considered big. Following the Swissmove the CHF appreciated by close to 40%.

Nicholas Ebisch from currency broker CaxtonFX told CBN: “For me, it was a completesurprise. No one saw this coming.”

Perfume and flavour company Firmenich may also be affected. However, it is important to note the Geneva-based business does not havepublic shareholders.

The Swiss move may be good news forGivaudan’s non-Swiss-based competitors, such asGerman-based Symrise and US-based IFF,making their products more price-competitive in comparison.

For smaller Swiss companies, “the move isdisastrous,” Ebisch added.

Before going to press Givaudan shares sold for1,718 CHF. Earlier in January its shares sold foras high as 1,943 CHF. Read more at cosmeticsbusiness.com

business

CHINA’S ECONOMIC GROWTHSLOWEST IN DECADES

SWISS CRISIS IMPACTS GIVAUDAN SHARES


NEWS IN BRIEF

India will host a newcosmetics trade show fromAugust 19-21 this year. ThePersonal Care India Expo

2015, held in Delhi, is said tobe India’s first internationaltrade event catering to thepersonal care, cosmetics

and home care ingredients,machinery and packagingindustries. Organised byUBM India, the event willalso include a series of

seminars and workshops.

Packaging company Albéa hasopened a new production site in

Bottanuco, near Milan in Italy.The $7m site comprises

18,400sqm of space, 250employees and a production

capacity of 160 million units peryear. It has been named thegroup’s European Center of

Excellence for mascara,lipgloss and eyeliner.

Yankee candle providerJarden has announced

its preliminary results for Q4 and the full year. The

company expects net salesof at least $2.4bn for Q42014. For 2015, Jarden

anticipates organic net salesgrowth to fall within itsaverage target range of

3-5%. It expects to deliveradjusted eps in the range

of $2.75-$2.90.

Cosmetic packaging partsupplier The Marchesini Grouphas announced growth of 11%in turnover in 2014, rising fromu222m in 2013 to u247m. The

growth was all the morepoignant set against a troubledeconomy in Italy, where GDP

was -0.4%. In 2013, Italianexports grew by 14%, while over

the past five years they haverisen 64%. The group has also

seen an increase in ordersrising to 217 million in 2013.

Specialty chemicalscompany Clariant is to

establish an alliance withsustainable technology

company Beraca, acquiring a 30% share in its Health andPersonal Care division. Thepartnership aims to enhance

Clariant’s innovationcapabilities in the naturalingredients industry and

widen its offering.

High margins and low ship-to-weight ratioshave made prestige beauty an attractivecategory for e-commerce, according to L2 Thinktank.

Although the direct-to-consumer sales of prestige beauty brands have becomeimportant sources of revenue and customercontact, brands’ own sites are no match forthe traffic driven by prestige retail partners.

“Prestige department store and specialtystore retailers are important e-commercepartners for prestige beauty brands,” studyauthor Eleanor Powers told CBN. “Keyplayers, including Nordstrom and Macy’s,continue to make significant e-commerceand infrastructure investments to increaseonline sales and integrate them with theirbricks-and-mortar operations.”

In terms of unique visitors, Macy’s sees15.84 million per month, Nordstrom has 8.6million and Sephora 2.72 million. In contrastthe average brand recieves 0.12 million.

Eunice Byun, L2’s Vice President ofbeauty and consumer packaged goods,told CBN: “The battle remains the same. It’sabout space and location but now bothphysical and virtual.” Estée Lauder’s earlyfocus on premium department stores ispaying off in digital, added Byun. Readmore at cosmeticsbusiness.com


trends


ANTI-AGEING AT FACE VALUE

This week’s Trends page provides a preview of the second issue ofCosmetics Business Markets, which will focus on global skin care.

The global anti-ageing market was worth $122.3bn in 2013according to Transparency Market Research, and for manycountries it remains the largest skin care category. Yet recent figuresshow anti-ageing products experienced a slight decline in valuesales in France, Italy, the UK and even in Spain where, in anotherwise growing market, anti-ageing sales were flat. However, inGermany, which has a smaller anti-ageing category compared withthe size of its basic skin care category, anti-ageing productsbecame a major growth sector in 2014, up 5.6% to w183.942(source: IRI Germany).

Beyond Europe, one of the world’s fastest growing skin caremarkets is Chile. Here, anti-ageing products shot up by 9.7% in2013 (source: Canadean) fuelling the country’s overall growth infacial skin care. Anti-ageing products are expected to lead marketgrowth in the country over the next five years, rising 12.2% annuallyto 2018.

Even in the mature markets, anti-ageing products remain highlylucrative categories. So why the slowdown in sales for some?Cosmetics Business Markets research reveals that the boom in BBand CC creams and the emergence of skin perfecting creams thatfocus on even skin tone, minimised pores and illuminated skin havestolen the limelight in many of Europe’s mature markets, while facialoils have also nourished the trend towards fresher and, ironically,younger formats.

FACIAL CLEANSING FORMATSFace wash is the most popular format of facial cleansing productacross Europe, especially in Russia, used by 58% of women, andItaly, used by 49%. In Spain, wipes are more popular than any othercleansing format, used by 24% of women, while in Russia only 12%of women use this format

Source: Kantar Worldpanel

Total France Germany Italy Spain GB

Facial wash/scrub Cleanser

Russia

38

Wipes Toner/astringent

11

21

17

37

812

17

31

6

24

16

49

13

22

17 1819

24

13

35

14

32

11

58

1312

25

% Penetration (women)

MARKETREPORTPREVIEW


retail

La Prairie has opened a new flagship boutique at 199 rue SaintHonoré in the 1st arrondissement in Paris.

The 2,000sqft boutique, which spans three levels, housestreatment rooms and sells the brand’s offering of skin, body care,foundation and fragrance products.

The design of the boutique was partly inspired by a Parisian-styleapartment and makes use of ‘tranquil’ colours such as grey, whiteand silver. The main floor features a ‘collection wall’ comprising a walk-through of La Prairie’s products showcased by collection.Meanwhile, the brand has incorporated a number of digital features:clients are able to use iPads to explore the products in more detail,while the brand’s latest news is projected onto a giant screen.Clients reach the second floor, where they are invited to undergo apersonalised consultation prior to treatment, via a glass staircase.

Laurent Leblond, General Manager for France, said: “La Prairie’s success story continues. Weare proud to inaugurate our first Paris flagship store that fully expresses the brand’s DNA whileshowcasing our products beautifully in a location so perfectly suited for La Prairie.” There are threeexclusive treatments to the new boutique, including: La Prairie’s Parisian Beauty, La Prairie’sParisian Harmony and La Prairie’s Parisian Essence.

NEWS IN BRIEF

German retail giant GaleriaKaufhof has revealed how it is increasingly turning to

e-commerce to generate profits.In a report by The EconomicTimes, the retailer revealed in2013-2014 bricks-and-mortar

sales declined by 0.3%, while itsmail order and online shopping

division grew by 5.5%. E-commerce rates have beenrising gradually in Germany

over the past four years, withdrugstore sales of cosmetics

specifically growing 67%.

Investment in UK shoppingcentres reached £5.6bn in2014 – the highest level innearly ten years. Research

by CBRE revealed there wasa 33% increase on the

£4.2bn transacted in 2013.Among the ‘landmark

transactions’ last year wasLand Securities’ £656m

purchase of Lend Lease’s30% stake in Bluewater.

L’Oréal USA’s ProfessionalProducts Division has teamedup with StyleSeat, an onlineplatform for beauty services.

The partnership allowsconsumers to buy L’Oréal

Professional products online,which have up until now onlybeen available in salons andspas. StyleSeat also allows

users to book appointments.

The British RetailConsortium has revealed itslatest Retail Crime Survey

results. There were roughlythree million offences

against UK retailers in 2013-2014, directly adding £603m

to retailers’ costs. Fraudincreased 12% and accounts

for 37% of the total cost ofretail crime. Retailers citedcyber attacks as a ‘criticalthreat’ to their businesses.

Elizabeth Arden has launchedits first direct-to-consumer

e-commerce site in the UK andROI. The site is powered by TheHut Group, which has providedthe infrastructure and consumer

analytics to provide a tailoredexperience. The launch is The

Hut Group’s 25th brand launch.It powers more than 50 sites

across its own health andbeauty brands with currency

and language variants.


Tesco steals the beauty showOne UK supermarket retailer in particular wasseen to dominate this year’s Product of the Yearawards, recently held in London’s West End.

Tesco’s brands scooped four cosmetic awards,voted for by more than 10,000 consumers. Itswinning products included Pro FormulaRadiance Micellar Water, which won the skincare category, and Pro Formula Q10 Anti-AgeDay Cream, which won best moisturiser.

Pro Formula Satin Smooth Ladies Razor was named best in hair removal, and BD TradeSecrets Dream Shine Highlighter was selected as a hero beauty item.

Mike Nolan, CEO at Product of the Year, said:“For newer, innovative items the process ofbuilding trust is vital to success and our seal ofapproval is essential as consumers report that theyare 86% more likely to buy a winning item. Thisbadge of trust leads Product of the Year winnersacross the globe to report more than a 10-15%average sales increase following their win.”

Retail congolmerate A.S. Watson is due toacquire all 50 stores of Netherlands-based healthand beauty retail network Dirx Drogist.

In addition to the acquisition of the stores, themajority of which are based in North Holland andSouth Holland, another five locations are said tobe in the pipeline. All of Dirx’s current employeeswill join A.S. Watson and the Dirx stores willcontinue under the store concepts of Kruidvat or Trekpleister.

Gerard van Breen, CEO of A.S. Watson Health& Beauty Benelux, said: “We are delighted withthis acquisition. The addition of these storesexpands our national coverage, making ourstores accessible to even more consumers. Weare pleased to welcome the employees to ourorganisation. The stores will operate under thebanner of Kruidvat or Trekpleister. We are lookingforward to having customers here benefit fromour large range of bargain-price products.”Read more at cosmeticsbusiness.com

A.S. WATSON TO ACQUIRE 50DIRX DROGIST STORES


Where is eve snow distributed?It is available through 50 select Boots storesnationwide and we’ll be launching into another30 over the next couple of months as well in-storeat Space NK and online at Net-A-Porter.

Eve snow has signed in the US. Tell us more...We just signed our first US contracts with Net-A-Porter US, where we’ll be one of its few globalbeauty brands available via their UK and USchannels. We’ve also signed with Space NK US,which has pushed back our launch to March.

What tips would you give to new brandsthinking about approaching a retailer?I would tell them not to give up and really focus on creating great products which wouldhave a unique selling point the retailers might not already have in their assortment, thereforemaking the brand more attractive to the retailer.

How do you source eve snow’s ingredients?We source our ingredients from around the worldand the key thing is that we manufacture ourproducts in the UK, working with a UKmanufacturer. Prior to launching eve snow, I haddone a lot of research into the nail care categoryand I work closely with my manufacturer andtheir in-house lab team into coming up withexciting new nail care products for eve snow.

How has UK manufacturing impacted costs?I wouldn’t say manufacturing in the UK is themost cost effective process. However, it wasalways important for me to have the brandmanufactured in the UK as we have some greatsuppliers in this country. I’m quite a control-freakand it was important for me to oversee all areas ofproduction closely, which I couldn’t do if thefactory was based in the Far East, for example.

How do you think the nail category is faring?I think there’s going to be a change in focus fornext year, whereas nail art and nail texturespeaked for the past two to three years. I thinkwe’re going to see a change in focus to nail treatments.Read more at cosmeticsbusiness.com

expert advice

What factors have been keyto eve snow’s success?A unique USP, first to marketproducts and luxury packaging.We launched into a verycrowded market with a USPwithin the nail category and Ithink the customer’s need for more natural,nourishing nail products is why we’ve been ableto grow so quickly when there are still new nailbrands launching every month. Then, becausewe’re still quite a small team, we’re able to bringproducts to market quite quickly – one of the newproducts we launched earlier this year was ourfirst-to-market BB Base coat, which we proudlywon a Pure Beauty award for. Finally, it was alwaysimportant for me to make our customers feelspecial, as if they’re receiving a gift every timethey purchase eve snow. So whether the customerpurchases any of our products via our ownwebsite or our retail partners, we invest in keyPOS and GWP to ensure the customer feels likethey’re receiving a gift every time.

What challenges have you faced?When I started eve snow, finding a good UKmanufacturer who would agree to my smallquantity runs was the biggest issue. Once I wasable to get over that hurdle, I was able to presentthe brand to key publications: once British Vogueagreed to launch the brand, I secured fundingfrom initial angel investors.

How did you overcome these challenges?Persistency and determination. If you don’tbelieve in your products or brand wholeheartedly,no-one else will.

Source: eve snow

2000%

80

2013

Eve snow’s predicted percentage growth in revenue

The number of UK stores eve snow will be availablein by the end of this quarter

The year eve snow was founded

A POLISHEDPERFORMANCE

In two short years, nail brand eve snow has broken into two majormarkets amid fierce competition. Founder Yvette Snowden explains


TOP 10Eve snow’s top selling nailpolish shades:1 Racey2 Prima Donna3 Wanderlust4 Opium5 Top Coat6 Harlot7 Birthday Suit8 Pixie9 Poppy10 Film Noir

If you don’t believein your products orbrand wholeheartedly,no-one else willYvette Snowden, Founder, eve snow

““

Source: eve snow


digital

Skin care brand REN recently enlistedphotographer Rankin to direct a televisioncommercial to bring the brand’s

‘performance, purity, pleasure’ ethos to life.Antony Buck, Chief Executive Officer of REN,

has been happy with the response to the advertsso far. “The advertising was developed primarilyto support REN in Scandinavia, where the brandis available in around 1,600 stores and on track tobecoming the biggest independent skin carebrand,” he said. “We appointed London adagency Lucky Generals to produce theadvertising and were delighted to have Rankindirecting the ads. Initial results have been veryencouraging with sales increases of around 100%in Sweden where the advertising was first shown.”

Having already aired in Sweden, where RENbecame the biggest TV skin care advertiser forthe second half of 2014, further exposure is nowplanned across Norway, Denmark and the UK.

Legendary photographer Rankin was deemedperfect for the campaign. Shot in Rankin’sLondon studio, the advert includes a mix ofprofessional and amateur models, which allowed

for a wide range of skin tones, ages andpersonalities to be featured.

Speaking about the project, Rankin said: “I’m a big fan of REN, so was really happy to beapproached. We wanted to bring out the brand’splayful side and so cast models that conveyed thepurity of the products.

“We also enlisted the help of puppies on set to capture some genuine reactions from our cast.The end result is a campaign that’s honest,vibrant and spirited.”Read more at cosmeticsbusiness.com

Unisex hair styling brand got2b has createdits first how-to videos, showing style-savvyconsumers the techniques and productsneeded to create the latest hair looks. Hostedon the SchwarzkopfUK YouTube channel,there is one male-focused video (grungespikes) and six celebrating the latest femalehair trends, including fishtail braids, texturedponytails, retro curls, top knots, smooth chichair and beachy waves. Designed to inspireand educate, the videos aim to present easilyachievable looks using got2b’s hair heroproducts. Each video takes the latest trendsand adds a got2b twist. Indicating a boldmove into the digital sphere, the newcollection of how-to videos has enabledgot2b to develop interactive contentdesigned to inspire everyone to achieveexpressive and impressive styles.

NEWS IN BRIEF

Korean cosmetics brand O HUI has launched a newcampaign called BeautifulLips, which aims to help

individuals send messagesto loved ones via a ‘digital

lipstick’. Couples can recordmessages on the device that

resembles a lipstick; themessages are then activatedto play when two sticks arebrought together and touch.

Dove has launched a newcampaign encouraging womenwith curly hair to embrace theirnatural waves. The Dove Hair:Love Your Curls campaign and

film features a selection ofstories that show young girls’relationships with their curls.The campaign has launchedalongside the brand’s new

range Dove Quench Absolute.The campaign is using thehashtag #LoveYourCurls.

L’Oréal Paris has launchedwhat it says is the world’s firstonline international make-up

artist contest on YouTube.Those that enter are in the

running for a u100,000 prizeand the title of 2015 L’Oréal

Paris Makeup Designer.Contestants can enter from13 countries including theUK, US, Canada, Australia,Germany, China, Thailand,Italy and Turkey. To enter,applicants must submit 3-minute video tutorials.

Soapsmith, a London-basedluxury soap, bath and body

brand, has won QVC’s Find aBeauty Brand competition, in

association with CEW. Thebrand will now join QVC’s

portfolio of over 200 beautybrands. After being whittleddown to six the finalists were

asked to present their productsin full glare of the TV cameras,judged by a panel of seven.

Victoria’s Secret advertisedduring NBC’s broadcast of

the National FootballLeague’s Super Bowl XLIX,which aired on 1 February.

The ad was part of thebrand’s Valentine’s Day

marketing efforts. The adfeatured Victoria’s Secret

‘angels’ Candice Swanepoel,Lily Aldridge and KarlieKloss, among others.


Yves Rocher hits Frenchtelevision screensFrench naturals brand Yves Rocher returned toFrench television screens on 19 February, with anadvertising campaign to promote its new SérumVégétal range.

The advertisements, which were devised byM&C Saatchi GAD and rolled-out by Vizeumand Amplifi, consist of a 10-second ‘taster’ advertpreceding a 30-second standard advert.

As well as running on all the major televisionchannels, the company simultaneously ran advertson Facebook, in leading newspapers such as LeFigaro, Libération and Le Monde, the TVprogramme 20 Minutes and on eight leadingwebsites. It is estimated that in 24 hours, thecampaign could have been seen by eight out often French women.

“This film, an ode to Cosmétique Végétale, is a total breakthrough when compared with thecommunications of other cosmetic brands,” arepresentative from the company told CBN. “In effect, when it comes to skin care, they focustheir advertising mainly on the power of newmolecules, but Cosmétique Végétale focuses on a unique belief – that skin care is only effectivewhen it is well absorbed by the skin.” Theyadded: “One could speak also of a film that isequally a breakthrough in its form. There is nostar, no attempt at numbers showing higheffectiveness, but a unique representation that isvery aesthetic, showing the processing of theplant, from the raw plant to the skin.”

The advert will run until mid-April in all 90countries in which Yves Rocher has a presence.

REN SWEDEN SALES SPIKE AFTER ADVERT


innovation

SUPPLIERS NEWSFERMENTATION TECHEvolva and L’Oréal havecompleted the first part of theirR&D collaboration, whichstarted in February last year.Through the partnership,L’Oréal hopes to use Evolva’sfermentation technology todevelop a yeast strainoptimised for sustainable andcost-effective production ofcosmetics ingredients.

ALL THAT GLITTERS...Fashion house Ghost hasunveiled its newly designed giftboxes. In total, 500,000 boxeswere designed by FalconerPrint & Packaging, which wasasked to source a material tomimic a glittery handbag.

THE PERFECT FIXAshland has commerciallylaunched a new hair fixative,Advantage 4910 polymer. Thepolymer is said to be used in more hairspray productlaunches than any other hairfixative. A range of polymerscan be used together with theAdvantage 4910 hair fixative to enhance its qualities, forexample adding humidityresistance benefits. DennisHublitz, Sales Director ofAshland Specialty Ingredients,said: “Including this polymerwithin our portfolio of polymersfor hairspray, such aspolyvinylpyrrolidone-basedpolymers and methyl vinylether and maleic acid

(PVM/MA) copolymers, allowsus to deliver a dynamic set ofsolutions to manufacturers,from a flexible to stiff hold.”

LABELS GOGREENIn a bid toreduce theenvironmentalimpact ofpackaginglabels, AveryDennison andL’Oréal Americashave joined forces. They haveidentified using a thinner labelmaterial can reduce theirimpact on the environment.L’Oréal has also been makinguse of Avery Dennison'sGreenprint method, to identifythe impact of raw materialextraction, manufacturing andthe label’s end of life.

NO MORE DOWN TIMEAestheticians can now carryout non-invasive cosmetictreatments that up until nowhave only been possible withsurgery. Plexr allowsprofessionals to carry outblepharoplasty, face and bodylifts and removal of fibromas,naevi, verrucas and tattoos. It is said to be the first timeaestheticians have been able to perform blepharoplastywithout surgery.Read more atcosmeticsbusiness.com

This is an exciting time for the aerosolindustry in Mexico and throughout LatinAmerica, due to a confluence of factors.

We recently announced our investment of$3.5+ million in our Mexican facility. In addition,we launched local valve production, and acquiredall rights to Lindal de Mexico.

Mexico is one of the biggest markets for personal care productsin Latin America, and the country’s projected growth in overallaerosol demand holds great promise for us.

Furthermore, the worldwide quest for packaging premiumisationhas come to the region and we foresee great acceleration here inthe coming year for both domestically-consumed goods and thosemade for export. The market for aerosol products is extremelycompetitive and, as companies fight for market share, they requiregreater product differentiation andpackaging premiumisation.

We also cannot overlook thechanging state of the Mexicanconsumer marketplace, as well asthe increase in exports. Industryreports show that the nature ofconsumerism in Mexico haschanged dramatically. Nearly halfof all Mexicans are under 30 yearsof age and, with a rise inpurchasing power, these younger consumers are more informedand open to innovative, high-value products. The development ofalternative formats, such as half sizes, encourages trial of new products in the Mexican market.

Another big trend here is the changing consumption patternamong male consumers. Male Mexicans are increasingly aware ofpersonal care product benefits and are receptive to marketing from multinationals. This is particularly important to our overallgrowth projections.

The incremental increase in disposable income is certainly a bigfactor, but consumers here will continue to seek value for theirmoney. For Lindal, this means delivering aerosol packaging thathelps build our customers’ brands and delivers a positive end-user experience.

These factors combine to create new demand for personal careproducts and aerosol packaging solutions.

An insider’s guide to theMexican aerosol marketLindal Group is a world leader in the design,manufacture and sale of aerosol productcomponents. Worldwide Marketing Director PhilipBrand explains why Mexico is looking so promising


“

The worldwidequest for packagingpremiumisation hascome to the region, and we foresee greatacceleration here in the coming year

“

TOP 5 FACTORS AFFECTING THEMEXICAN AEROSOL MARKET✔ Packaging premiumisation✔ Compressed/half size formats✔ Changing patterns of male consumption✔ Incremental increase in disposable income✔ Increase in exports


brands

NEW PRODUCTS1 PÜR MINERALS has unveiledits Liquid Veil 4-in-1 SprayFoundation (£26). The spray iseco-friendly and designed todeliver ultra-light, skin-perfectingcoverage and includes thebrand’s Ceretin Complex. Theformula also includes liquidcrystals to provide the skin withincreased moisturisation, whilethe spray component is butane-free. The shades come in Light,Medium, Tan and Dark.Launch: out nowRead more atcosmeticsbusiness.com

2 CLINIQUE has launched itsAromatics in White collection,headed up by a fragrance of the same name. Described as a confident interplay of serenewoods, transparent petals andwarm amber notes, the scent(from £50) opens with violet leaf,cistus and sichuan pepper,before moving to a heart of rosewater essential, orange flowerand patchouli. The base is madeup of amber gris, skin musk andbenzoin. The are also two colourofferings: All About Shadow 6-Pan Palette (£30) and Long Last Glosswear inCrystallized (£16).Launch: out now

3 ORIGINS has launchedKissZing lip crayons (£16 each),for soft, sheer colour. The crayonis formulated with a blend ofnatural butters and oils includingmeadowfoam seed extract,mango seed butter and jojobaextract to nourish lips. It is subtlyfragranced with vanilla and mintand has a light texture to providecomfort and glide. Available infive shades: Pink Charming,Peach Peck, Coral Crush,Rosemance, Peonies In a Podand Begonia Blush. Launch: out now

4 MTHERAPY has debuted inthe UK. The new at-home beautysystem allows users to choosewhich anti-ageing serum theywant to use that day, similar toan coffee machine. It consists ofa Beauty Pod, which deliverssteam to the face containingingredients from the chosenBeauty Podlet. The steamtechnique is said to help the skinabsorb the 20 ingredients casedinside the Podlets.Launch: out now

5 RMK has announced its s/s15make-up collection, VintageSweets (£14-£33). The nine-sku

7 ACQUA DI PARMA hascreated a 20ml Leather PurseSpray version of its Rosa Nobilefragrance (£84). Designed toreflect the values of authenticItalian traditions and created byFlorentine craftsmen, the bottleis wrapped in soft pink calfskinembossed with the Acqua diParma logo. The scent itself isblend of bergamot and mandarinwith top notes enhanced bypepper, a heart of Italiancentifolia rose, violet, peony andlily, and a base of virginia cedarwood, grey amber and musk.Launch: out nowRead more atcosmeticsbusiness.com

8 O’RIGHT has launchedRecoffee, a line of hair productsmade of 100% recycled coffeegrounds. The grounds arecollected from cafes and storesacross Taiwan: each bottlecontains a minimum of 98%natural ingredients and groundsfrom 16 cups of coffee. Thebottles are also made of 100%recycled coffee waste, while theshampoo bottle is said to growinto a coffee tree if planted in theground: it contains seeds builtinto the base.Launch: out now

1

7

collection takes inspiration fromold-fashioned sweet shops,reflected in the colours andpackaging of the products, withsoft pastel hues swirled intogether. The collection includesFace Color; Candy Cheeks; DropGloss; and W Color Mascara.Launch: out now

6 BENEFIT is set to launchRoller Lash (£19.50), a mascarathat is designed to lift and curleyelashes the same way curlerslift and curl hair. The mascarafeatures a patent-pending Hook‘n’ Roll brush with tiny hooks onthe bristles, which catch lashes,lifting and gently pulling them tocreate curl. The ink-blackformula contains provitamin B5and serin, known for their lash-conditioning benefits, and is said to provide a 12-hour curl-setting effect. Launch: MarchRead more atcosmeticsbusiness.com

63

2

4

5



people

LA PRAIRIE has made two senior levelappointments. GREG PRODROMIDEShas been named Senior Vice PresidentGlobal Marketing, filling Lynne Florio’sposition. He is responsible for the evolutionof global brand equity, and the developmentof products and marketing programmes.Meanwhile, KIRSTEN HANGARTER hasbeen promoted to Vice President, EMEAregion, succeeding Pascal Hyafil.

YANAGIYA, a Japanese brand founded in 1615, has named 20-year-old movie andtelevision actress UMIKA KAWASHIMA as the face of its new hair oil brandYanagiya Apricot Oil. The brand is said tohave signed Kawashima due to her “cuteand pure image”. Read moreat cosmeticsbusiness.com

OWENS-ILLINOIS, a glass manufacturingcompany, has named VITALIANO TORNOas Managing Director of O-I Europe.Torno succeeds Erik Bouts and will report to Andres Lopez, President of GlassContainers and Chief Operating Officer.Torno will steer the company through itslong-term asset optimisation programme.

JESSICA WRIGHT, star of reality showThe Only Way Is Essex, has been announcedas the first abassador of WHITNEY MARIE.Wright will model the brand’s range of clip-in hair extensions, made from 100% humanBrazilian Remy hair. The partnershipstarted online last month and will alsofeature in Whitney Marie’s spring/summer2015 campaign. Whitney Marie hairextensions can be washed and curled.

SYNERON MEDICAL, a global aestheticdevice company, has appointed ILANNACASCH to the newly created positionof Chief Brand Officer. He will beresponsible for global marketing andbranding of all Syneron-Candela products,with a strong focus on the growth of theBody Shaping business in the US.

ANGIE INOUYE has been elected asChairperson of the California Chapter ofthe SOCIETY OF COSMETICCHEMISTS (SCC). In her role, Inouyewill preside at all chapter and executivecommittee meetings and will guide chapteractivities, including educational meetingsand scientific seminars. The chapter is saidto comprise of about 700 members and isone of 19 nationwide chapters.

THE LATEST APPOINTMENTS


NARS has appointed make-up artist ANDREW GALLIMORE as its new UK Makeup Artist Ambassador. Gallimore brings over a decadeof experience to NARS, having worked alongside photographers including David Bailey and Patrick Demarchelier. He has also workedwith publications including Vogue, Dazed & Confused and Love. In his new role for NARS, Gallimore will showcase the brand’s productoffering via his own artistry through editorial, media interviews and events. Gallimore said: “François Nars is a true visionary – make-upartist, photographer, creative director. I’ve long been an admirer of his work and I am excited to be able to contribute to this brand hehas built.” Frederique Lampert, NARS’ Regional Executive Director for Europe, added: “Andrew’s affinity for bold, boundary pushingartistry marries beautifully with the philosophies François Nars established the brand with 20 years ago, which we still embrace today.”


about their own skin and see their scars in adifferent way. Ultimately it’s all about nurturingbrand advocates to encourage recommendation tosupport brand growth.

Be creative with PROur brand awareness survey highlighted that18% of people who have heard about Bio-Oilread about it in a magazine, demonstrating theimportance of press coverage. Our PR campaignsneed to be creative in order to give the press newreasons to write about the same product year onyear so we take a very integrated approach andmaximise all channels.

Invest in clinical trialsWith just one product in the range, it’s importantto be confident in its performance. Over the yearswe have gone beyond what is required of acosmetic product and conducted clinical trialsinto how effective Bio-Oil is. These trials armhealth care professionals with the knowledge thatBio-Oil may be able to help their customers,which plays a key role in our strategy: 9% ofpeople who have heard about Bio-Oil discoveredit via health care professional recommendation.

While some may consider not creating newproduct skus a hindrance, we see the fact that wehave one product, tried and trusted by millionsaround the world, that delivers results and doesn’tneed to change, a definite strength.Read more at cosmeticsbusiness.com

the final word

For most brands,having a diverse – and expanding –product portfolio is

something to be expected andencouraged. Investment inNPD is all part and parcel ofcreating a brand that remains relevant toconsumers. But is this always the case and, if so,should it be? Bio-Oil has been in the UK for over10 years now and has become a household namesynonymous with helping to improve theappearance of scars and stretch marks as well asuneven skin tone, dehydrated skin and signs ofageing. It’s just one product available in 60ml,125ml and 200ml; the latter is the second biggest selling skin care product in the UK, according to IRI data. So how have we managed to build a brand around just oneproduct with no new product development to talkabout in a skin care market that is increasinglycrowded and largely driven by innovation?

Know your customerUnderstanding our customers and how they areusing Bio-Oil has helped us to establish ourposition and make sure we’re two steps ahead ofthe emerging oils trend. While Bio-Oil is widelyrecognised as a treatment product for scars andstretch marks, we found that people use Bio-Oilin many different ways. It is a product foreverybody with a skin concern, from teenagers tomore mature consumers. This formed the base ofour marketing strategy, which helped us toposition Bio-Oil as a multi-tasking, everyday skinessential ahead of the oils trend in skin care.

Maximise peer-to-peer channelsWith such different target groups, we have avaried communication strategy in place, but it has one clear aim: harnessing the power of peer-to-peer recommendation.

Almost everyone seems to have a Bio-Oil storyto tell, whether Bio-Oil has helped to improvethe appearance of a scar or it’s been used duringpregnancy to help prevent stretch marks. Ourstrategy for Bio-Oil is about getting people toshare these stories. One in three who have heardof Bio-Oil found out about it from a friend orfamily member, which goes to show how vitalrecommendation is for our brand.

It was a natural evolution for us to create aFacebook page. We’ve forged a real communityof over 200,000 fans by encouraging people toshare the stories behind their skin. We alsocelebrate stories that will inspire and empowerour Facebook community to think differently

Ultimately it’s allabout nurturing brandadvocates to encouragerecommendation tosupport growth Julie Lardieg, Bio-Oil Senior BrandManager at Godrej UK

“

HOW CAN I KEEP A BRANDALIVE WITH NO NPD?Q

A

Source: (from top) IRI, 2014 BrandAwareness Survey and Bio-Oil

Submit your questions for the next The Final Word column by tweetingCosmetics Business @cb_beautynewsusing #TheFinalWord


No1

34%

16

Bio-Oil is the top selling scar andstretch mark product in the UK

Percentage of people that learnedof Bio-Oil through friends or family

The number of consumer awardsBio-Oil won in 2014

Know your customer and keep spreading the word, says JulieLardieg, Bio-Oil Senior Brand Manager at Godrej UK

“


Business Retail Innovation Brands Unilever sales figures ...

Documents

Transcript of Business Retail Innovation Brands Unilever sales figures ...