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ISSUE #52 MAY 7, 2021

A Publication of WWD

Makeup Makeover Makeup artists were inspired to use more color during the recent collections — and the sector could certainly use a lift. Here, leading marketers and retailers on what's working now and their plans to revive sagging sales. For more, see pages 8 to 11. PLUS: Assessing how Black brands are faring and why (beauty) moms know best. COLLAGE BY JILLIAN SOLLAZZO THE BUZZ 2 MAY 7, 2021 Beauty Bulletin

Neutrogena Studios' new campaign, For People With Skin. Partners By The With Numbers: Walgreens, TikTok's Top Melanoma Research Trends From K-Beauty to chlorophyll, what's hot on TikTok when it comes ¬ Neutrogena has teamed up to skin care. BY JAMES MANSO with retailer Walgreens and the Melanoma Research Foundation to PER NEW DATA FROM retailer educate consumers on healthy sun SkinStore, which cross-referenced practices. how to self-check for skin cancer marked tubes will provide $1 to the beauty trends on the platform with The joint effort coincides with the and aid in its prevention. Melanoma Research Foundation, up Google searches, TikTok users' beginning of skin cancer awareness The partnership is also planning to $120,000. interests run the gamut from internal supplements to skin care month and includes several prongs, to leverage social media, namely “We’re dedicated to the tools and procedures. starting with brick-and-mortar Facebook Live, to further catch eradication of preventable skin Topping the list was gua sha, retail sales employees. Neutrogena consumers’ eyes. Its launch cancer and have long advocated for with nearly 3 million Google has trained 3,000 of Walgreens’ coincides with the release of greater education and promotion searches, and over 250 million beauty consultants to “facilitate “In the Sun,” the inaugural film of sun safe behaviors because views on TikTok. Dermaplaning in-aisle education and product from Neutrogena Studios. Kerry we know it is imperative to total didn't see the same search recommendations,” per a statement Washington, brand ambassador for skin health and well being,” said resonance, but had 1 billion views from the retailer. Neutrogena, worked as an executive Kerry Sullivan, general manager of on the popular platform. Jade Part of the partnership’s in-store producer on the film, which centers Neutrogena, in a statement. rolling made the list with over push will include product packaging around sun care. Last month, Neutrogena debuted 43 million views. for its , which will start Lastly, Neutrogena will be its “For People With Skin” initiative, Different philosophies toward featuring scannable QR codes. producing limited-edition aimed at making its products — and skin care — and skin wellness The codes will direct consumers to sunscreens for sale exclusively at skin health practices — accessible — also dotted the round-up. “Skinimalism,” or the paring several digital resources, including Walgreens. Each of the specially to more consumers. —James Manso back of skin care regimens, took the second slot on the list, as did face-mapping, which ties troubled complexions to different Prestige Beauty Grew 11 Percent in Q1, Per NPD Group systems and organs in the body. Here, the top 10 TikTok ¬ According to the first perfumes and sets growing trends, as ranked by Google quarterly data of 2021 from the triple-digits ahead of the holiday. search volume. NPD Group, the U.S. market's By contrast, success in the prestige beauty categories are hair category is indicative of 1. gua sha bouncing back. the larger trend toward self- 2,858,210 Prestige beauty sales almost care, which consumers seem 2. skinimalism hit $4.2 billion in the first to be sticking with. Hair masks, 1,860,310 quarter of 2021, up 11 percent face and body serums, nail care from the same period in 2020 and home fragrance continued 3. blackheads removal (which included the onset of the 1,329,620 to perform well. Hand soaps Tk Caption coronavirus pandemic). also sold well. 4. dermaplaning Digital sales continued to track Makeup was the only 909,290 gains, and were up 33 percent. category that declined in the 5. drinking chlorophyll However, brick-and-mortar sales quarter, down 9 percent to 908,770 also had a positive quarter $1.5 billion. It is still the market's 6. jade roller with a 3 percent increase. biggest category, and saw 711,270 Per a statement from NPD, highlighters and bronzers 7. micellar water hair care and fragrance — lift 12 percent and 2 percent, 64,0200 the two categories with the respectively. Eyes also 8. hydrocolloid bandages highest growth at 48 percent outshone the rest of 582,140 and 45 percent, respectively the category. — drove growth in the channel. Skin care, up 12 percent, is 9. korean skin care Fragrance sales reached now just shy of overtaking 198,940 $953 million during the Hair care posted the most growth in Q1 2021. makeup's spot as the top 10. face mapping period, while hair hit the Valentine's Day buoyed the category in the market at 178, 240 $300 million mark. fragrance category, with both $1.4 billion. —James Manso BRIDGING THE DIGITAL DIVIDE

THE NEXT GENERATION OF INNOVATION Announcing the Project Connect Council Members, who will review applications of this unique grant opportunity, spotlighting a new generation of business leaders and entrepreneurs. Grant-funded support. Mentorship. Brand exposure.

THE PROJECT CONNECT COUNCIL MEMBERS:

VASILIKI PETROU AMANDA SMITH CARLA NELSON KEVIN FRIED Executive Vice President and President, Fairchild Founder, Black Fashion Director of Retail, Group CEO, Unilever Prestige Fashion Media World Foundation Google

To learn more and apply for this unique opportunity, TAP HERE

JOHN MELO VICKY TSAI President and CEO, Amyris Founder, Tatcha

Applications must be submitted by 05/28 and will be reviewed by a full panel of industry experts including FMG President Amanda Smith and EVP of Unilever Powered by Prestige Vasiliki Petrou. All interested in applying for the “Project Connect – Bridging the Digital Divide” grant are encouraged to visit the link above. PRESTIGE NEWS FEED 4 MAY 7, 2021 What the Beauty Industry Isn’t Getting About How to Support Black Businesses Despite increased support over the last year, inequity is still a very real problem for Black-owned brands.

BY TARA DONALDSON

TURNS OUT, the beauty industry is only addressing one petal on the flower of its inclusion problem. Despite the visible outpourings of support (like donations, mentoring, sudden shelf space at times sans adequate retail support) for Black- owned businesses in the last year, beauty hasn’t quite come to terms with the real issue keeping the sector from substantive progress on diversity: equalizing the economic playing field. In a first-of-its-kind study that digs into the economic realities for the Black/African American beauty market, findings from “Readiness Is the New Green” paint a picture of very disparate business realities between Black-owned brands and their general market counterparts. This isn’t news to people of color who have been battling these imbalances for generations, but as Corey Huggins, founder and The "Readiness Is the New Green” survey paints a picture of very disparate business managing director of global think realities between Black-owned brands and their tank Ready to Beauty, puts it, “there general market counterparts. can’t be real economic change without real economic data.” And the in light of the pandemic, plus what overall business than their general It’s a concern most in the general industry at large needs the data to they believe the beauty sector could market peers who are more likely to market don’t have at all. Seventy- know where it is and where it needs be doing to better support Black work for bigger global companies, six percent of respondents in the to go from here now that summer of entrepreneurs and brands. according to the study; and two, broader market group said the 2020’s racial reckoning has forced Their responses were juxtaposed Black consumers and consumers of question about access to financial everyone into the conversation—and against those of an industry panel color generally overindex in beauty resources wasn’t applicable. prompted some to dish out cash of more than 70 professionals from spending, so the panelists who more “This is in stark contrast to the without much consideration. the general beauty market (reflecting often cater to this cohort may have Black/African American panel in “I knew that some of the the spectrum of races and ethnicities greater confidence in demand for our study, who are heavily involved opportunities that were coming [for across the broader industry), their products and services. in their own financial management, people-of-color-owned businesses] including graduate students and As far as financing, that’s where yet lack access to the resources were just so misdirected—just alumni from The Fashion Institute of the gap between the two market necessary to do so at parity with really, really misdirected—I thought Technology’s & Fragrance groups widens even further. the general market, which often [we’re] not going to be able to seize Marketing Management master’s Asked which financial resources they has layers of experts dedicated to this moment unless we have the program, who are all currently had access to in order to keep business handling such endeavors,” the baseline,” said Huggins, whose think working in the industry. going amid the pandemic, 70 percent of survey noted. tank is a passion project among its What it found was divergent the Black/African American panel said Hyper Skin founder and chief central team of former L’Oréal USA perspectives on a range of issues. they funded themselves, 23 percent executive officer Desiree Verdejo executives (himself included) to help For example, just 8 percent of had to use credit cards and 22 percent understands the heavy involvement draw the blueprints for multicultural respondents from the Black/African turned to bank loans or lines of credit. in her own financial management. brands’ successes and legacy American panel feel the U.S. economy When describing the relationship they “We launched Hyper with $12,000. creation. “This is sort of the missed is healthy versus the 19 percent from have with their banking officer, 34 We didn’t have an angel round, a half of the happenings.” the general market panel who believe percent said there is no relationship at venture capital round, and so for us The study—done in conjunction so—which may speak to the former all and 35 percent called it “OK.” the boom of [summer 2020 and the with Cosmoprof North America, being more greatly disadvantaged “The health of your business resulting attention on Black business The Fashion Institute of Technology, during the pandemic than the latter. is like the health of your body,” in light of the racial reckoning] was NielsenIQ, American Express and When it came to the beauty Huggins said. “I don’t want an OK equivalent to what would have been media marketing agency Ivy Digital— industry specifically, the Black/ relationship with my doctor.” an angel round. And so I will say that called on an invitation-only panel of African American panel of The parallel pulls into perspective that was a peak, it was a moment,” more than 70 leading Black/African respondents was bullish, with 70 what it would be like to have what she said. American beauty business founders, percent believing the beauty sector to he described as “a less than stellar” Admitting that she only “tipped C-suite execs and thought leaders, be healthy compared to 46 percent of relationship with a banking officer, her toe” into the pre-seed investment as well as marketers, distributors, general market respondents who said which more than two-thirds of the round, it still didn’t bear fruit for retailers and other industry the same. That may largely be owed Black respondents do. Most people Hyper before the brand launched late stakeholders. The panel was asked to two factors: one, as founders and might opt to take matters into their in 2019. about their current industry and entrepreneurs, the Black respondents own hands, which could only carry a “Taking a look at the resources in

business sentiments, particularly often have more direct impact on the body—or a business—so far. terms of time that it would take  Photograph by Maksimvostrikov/Adobe Stock NEWS FEED 5 MAY 7, 2021

Hyper Skin founder and CEO Desiree Verdejo. programs if they involved access to “Diversity and inclusion and capital. That’s the real conversation representation and all those nice that needs to be had—access, buzzwords, they in themselves introduction to investors, sort of a don’t lead to changing the power lifting of the curtain to that process, relationships,” he continued. which is foreign to many people.” “If the bank has all the power and The disconnect between the two one gets through, what about all market groups and their realities is the other ones?” real, as Dr. Brooke Carlson, a professor The aim with the new banking in FIT’s School of Graduate Studies initiative, which will connect Cosmetics & Fragrance Marketing & entrepreneurs with financing from a Management master's program, who Black-owned national bank (Huggins also worked directly on the study, believes Black entrepreneurs can do noted. Bridging that divide will involve more to help themselves within the the industry working to correct its community, a nod to the formerly “lack of a deep cultural awareness flourishing Black Wall Street ) about the Black/African American is to get the economic playing field beauty business, which differs from leveled in a way that sustains. the general market.” Because, based on other insight “Intellectually, they get it, even from the survey, the commitments emotionally. However, the industry made in the wake of George Floyd’s has never had to adjust or assimilate, murder may not. whereas Black/African Americans, be “The fact that the general it business professionals or citizens market reported that the George in America, have always had to do Floyd/#BlackLivesMatter protests so. Therefore, beauty companies and and resulting calls for economic brands, retailers, and likely many equity impacted their thinking survey respondents in our general (86 percent said yes) is excellent, market panel, have never lived the and they are also aware that Black real-life experiences, day-to-day and Latinx consumers overindex to successfully raise what would active people in beauty, but they challenges and obstacles faced by in beauty purchasing and product have been a very small six-figure immediately went to mentoring Black/African American founders, usage (88 percent said yes) which is round, I decided that I would versus money. And for us, all things executives and thought leaders. a huge business opportunity if not invest in one product and build can be made equal if we have money, And because the power and control an under-met need,” Carslon said. traction and revisit funding at that if the playing field is equal. So there’s to effectuate change rested with “The wake-up call is that the general stage,” she said. Now, having gained a bit of paternalism involved.” others, this segment has always market panel said they reported that traction with that one product— Verbatims in the survey included: been disenfranchised,” she said. they were ‘unsure’ at 57 percent that Hyper Clear Brightening Clearing “Access to multiple high-trafficked “There must be a radical rethinking long-lasting, substantive economic Vitamin C Serum—and credibility distribution, marketing, mainstream of inclusion and belonging for the change/economic effects will come as a leading brand for addressing press opportunities would really benefit of everyone.” about, and a little over 10 percent hyperpigmentation, Hyper is working help put Black entrepreneurs & For Huggins, that radical flatly saying ‘no’ they don’t think on a venture capital round brands at a better ‘starting point’ rethinking will have a lot to do with things will change.” of funding to help the business in comparison to our non-Black financing, and that’s one reason That data begs the question, as continue to scale and bring peers. It often seems as if Black Ready to Beauty is working on a the survey notes: “If general market additional products to market. brands have to do more work to be “soon-to-launch” banking initiative professionals working for the largest The bootstrapping Black business taken ‘seriously’ in the mainstream along with Cosmoprof North America global beauty companies recognize story isn’t a unique one, it’s what markets. Why does this barrier to specifically to support niche and the dominant purchasing power many entrepreneurs have done entry have to exist?” emerging Black/African American of the Black and Latinx consumers and continue to do. The problem, Another response said, “Also, they beauty entrepreneurs and brands. they serve, yet are so unsure about separate from the inequity of the should stop these pseudo grant The nationwide initiative will work making systemic change for them, reality that other groups have easier opportunities that are only collecting in tandem with Ready to Beauty’s when will the beauty industry at access to capital, is that the industry, our data through applications to use “multimillion, multiexpert” capital large ever take action?” with its surfeit of promissory notes for their own business growth. They growth fund, Ready to Invest. Certainly, it’s an answer that to come good on the support it hasn’t should also stop offering us programs “When all these banks and funds remains unclear and a situation offered before, believes mentoring that don't include grant money.” were saying [in light of the George that’s still very much evolving. But and business skills development to Verdejo, for one, only opted into Floyd-spurred protests and racial one consensus emerging in light of be the fix for greater inclusion. programs and partnerships that justice movement, they’d give] the disparities in the survey findings Among the key findings in the would, in one way or another, this much money over this much and among the cohort undertaking survey was that while 93 percent facilitate access to capital. time, that’s for the exceptions—Mielle the research was, as Carlson said of the general market panel named “Mentoring is beneficial to some just hit $100 million, they are an quoting a survey respondent (and in mentoring and business management extent. I don’t think, though, exception,” Huggins said. “The only what she called one of her own “aha skills as the most important thing education is what Black founders way you got to Mielle is because moments”), “It just doesn’t help for the industry could be doing to are lacking,” she said. “For me, any there was a seeding, some type of white people to say what Black and better support Black-owned brands opportunity that I took advantage initiative that led to that. Brown people need.” ■ and businesses, 92 percent of the of had to specifically speak Mielle Organics' Black/African American panel said to my direct areas of where Rice Water and what they really need is access to I needed knowledge—and Aloe collection. investment and/or working capital. not general knowledge, “There's a disconnect between because there’s the what the Black/African American misunderstanding, and panel actually needs and what the the thought is that Black general market panel presumes founders are lacking general they need, and without constructive market or operations dialogue they’ll never be resolved,” knowledge. I have only Huggins said. “These are well- wanted to participate in any intended, smart, liberal-leaning accelerator or advancement NEWS FEED 6 MAY 7, 2021 Meet Skinlabo, The Next Italian Beauty Brand Coming to the U.S. The digital-native cosmetic label thriving amid the pandemic will expand in the American market this fall. BY SANDRA SALIBIAN

MILAN — When the pandemic hit Angelo Muratore, last year and reshaped consumers' founder and CEO of Skinlabo. shopping habits and product preferences, Italian beauty label Skinlabo was in an advantaged position compared to competitors in the market. Launched in 2017, the Turin- based brand had a wide product assortment, accessible price points and, most of all, a direct-to-consumer approach, comprising a 24/7 beauty consultancy service available via phone, chat and email. All the assets many local brands had to create after the COVID-19 outbreak to compensate losses caused by brick- and-mortar stores' closure and to secure customers' loyalty, Skinlabo had already tested and deployed. Not that other digitally native brands in the country lacked similar strategies, Skinlabo's "shots" are among the brand's bestsellers. but Skinlabo was more structured and not perceived to be too niche or only was supported by two rounds of makes the difference,” said Muratore. vitamin C and collagen, among Instagram-oriented. Heading into the investments in 2020, that raised 3.5 This particular approach others. pandemic, its brand awareness among million euros. These added to prior influenced the geography of With antiage products at the core consumers was strong. rounds in 2018 and in 2019, with Skinlabo's best-performing markets. of the offering, the brand has always Plus, the brand's core business is Skinlabo raising 7.5 million euros After the domestic one, Spain is the targeted women and men aged 35 in skin care, one of the categories so far. Muratore said the company biggest market in terms of sales, to 70, until it tiptoed into makeup that thrived over the past year, to the expects to get another of 7.6 followed by Greece and Portugal. earlier this year, launching a mascara detriment of makeup and fragrances. million euros this month, too. “Consumers in these countries like to and . This expanded the All these elements contributed to More than 80 investors have talk and create personal relationships reach to younger generations, too. the acceleration of sales in the past financed the business so far, with the consultants and the brand,” Next up product-wise, Skinlabo 12 months. As of today, the company including Quadrivio Group's founder said Muratore, who added that will widen its scope to include hair has more than 600,000 customers and CEO Walter Ricciotti; Club France is becoming increasingly products and beauty supplements. in its database and adds 60,000 degli Investitori, a community relevant, too. Asked if there are changes in new ones every month. It currently of entrepreneurs and managers In the longer term, Muratore aims sight in terms of distribution, too, generates monthly revenues of about investing in Italian startups and to exceed 4 million clients across Muratore said there are no plans 1.5 million euros and forecasts to SMEs; the Luiss University's Europe and the U.S. and 80 million to partner with other platforms or reach 20 million euros in sales and investment club Luiss Alumni 4 euros in annual sales by 2024. open monobrand outposts, 1.2 million clients in its database by Growth, and Maire Investments, Ahead of the big launch in the revealing that the only physical the end of 2021. among others. U.S., the founder said it won't adapt format he could consider in the “The cosmetics industry is made All the funds raised supported its strategy, but instead continue future are pop-up stores. of infidelity, because honestly, there's Skinlabo's expansion plans in terms the recipe that has worked wonders “The pandemic bought more and not a real, big difference between of workforce, distribution and for him so far. To wit, Skinlabo has more people to buy online, and products,” said Skinlabo's founder products. The company is currently developed an inviting marketing therefore discover and purchase and chief executive officer Angelo available in 12 markets, including activity to gain consumers' trust, indie, digital brands. It's incredible Muratore. “All products communicate Italy, Spain, Germany, France, successfully repaying the company in to think that in brick-and-mortar active and natural ingredients, green the U.K., Greece, Portugal, The terms of loyalty and credibility. channels the tendency to try new, and sustainable properties and Netherlands, Austria, Ireland, Poland “To get noticed, we had to give niche brands is very low, with only overall, with small differences, all the and Belgium. This month it will them the opportunity to test the 10 percent to 15 percent of customers premium-luxury segment is similar in launch in Sweden and, in September, product for free, so the first purchase doing so, while online it's the terms of formulations.” it will land in the U.S. is indeed free. And I don't mean a opposite, as 80 percent of people are “So if we wanted to sell a product “As a start-up, we didn't have sample size, but a real product. Now, willing to buy indie brands,” said priced 35 euros to 60 euros, we other options than to embrace the if you have the chance to try a new Muratore. He mentioned a wider would have had a hard time to direct-to-consumer approach. We product paying only the shipment assortment and variety of products, find customers. But we understood could have partnered with third- fee, won't you do it?,” said Muratore. more convenient prices and a faster, that the gap to fill was one offering party platforms, but we preferred to Skinlabo's assortment include simpler user experience among the quality skin care products at sell exclusively on our own website, 60 references, ranging from face pros of e-commerce. democratic prices and that a developing vertical stores in different creams, serums and masks to body “And that's the beauty of the consultancy service was essential languages. So we're not talking scrubs and oils. The best-selling cosmetics industry: There's so much to convince consumers,” added to consumers in other markets in products are the ones targeting space for indie brands, which is great Muratore. To wit, Skinlabo's price English but in their own language, specific skin conditions and areas, because you can do business and points range from roughly 10 euros having beauty consultants and such as eyes and , in addition scale up quickly internationally if you to 40 euros. customer care managers speaking to the brand's signature “shots” have good ideas and can implement The brand's exponential growth their local language, which really of concentrated hyaluronic acid, them correctly,” concluded Muratore. BIG IDEAS. BOLD THINKING. AUDACIOUS INNOVATION.

MAY 19–20 / VIRTUAL

SPEAKERS INCLUDE

Sir John Barnett Abena Boamah Sharon Chuter Jo Horgan Tara James Taylor Vicky Tsai Laney Crowell Global Artist & - Acheampong CEO & Founder Co-CEO & Founder SVP, Beauty & CEO & Founder CEO & Founder Activist CEO & Founder UOMA BEAUTY MECCA BRANDS Vertical TATCHA GROVE HANAHANA NIELSENIQ COLLABORATIVE BEAUTY

Nicola Kilner Stuart Landesberg Gemma Lionello Liah Yoo Carol Hargrave Kelly Vanasse Anastasia Soare CEO & Co-founder CEO & Co-founder EVP & General CEO & Founder Senior Director, CCO & SVP, CEO & Founder DECIEM GROVE Merchandise Manager, KRAVEBEAUTY Commerce Product Grooming & Health ANASTASIA COLLABORATIVE Accessories & Beauty Marketing, Product Communications BEVERLY HILLS NORDSTROM INC. Marketing P&G BEAUTY PAYPAL

Barbara Paldus Charlotte Katherine Power Joel Schlessinger, Alexis Schrimpf Mazdack Rassi Stéphane CEO & Founder Palermino CEO & Founder M.D. VP, Global Skin CBO & Co-founder Rinderknech CODEX BEAUTY CEO & Co-founder VERSED + MERIT FAAD, President & Personal Care MILK MAKEUP President & CEO DIEUX LOVELYSKIN.COM Design, and Founder, L’ORÉAL USA & Chief Editor, SeeME Beauty Cosmetic Surgery P&G BEAUTY PRACTICAL DERMATOLOGY MAGAZINE

BUY TICKETS Marie La France John Melo Alex Lorestani VP, Strategy CEO CEO & Co-founder DASH HUDSON AMYRIS GELTOR

ATTENDEE INQUIRIES SUE JIN LEE [email protected] | SPONSORSHIP INQUIRIES AMANDA SMITH [email protected]

EVENT SPONSORS:

For more information visit fairchildlive.com DEEP DIVE 8 MAY 7, 2021

Direct feedback is driving product development. The Future of Makeup As color cosmetics sales slowly start to rebound, beauty's leading brands and retailers reveal what's working now — and how growth can be restored to the category. BY JENNY B. FINE COLLAGE BY JILLIAN SOLLAZZO

EVEN BEFORE THE pandemic, HUDA KATTAN makes people feel good in today’s wanted it from us, and we delivered. sales of color cosmetics were FOUNDER, HUDA BEAUTY environment) and authentic It's a stick format making it easy declining as “palette fatigue” set community connection is working; to use and the buildable but light in across much of the U.S. But The decline during the pandemic building trust and brand love will in formula was perfect for “Zoom glam.” COVID-19 proved to be an especially was a struggle for many companies, turn drive brand and product interest. Audiences and consumers are tough hurdle to overcome, as but we managed it pretty well Content is king and we’ve tried to hungrier now more than ever for socializing came to a standstill, retail compared, thanks to a clear vision recreate that same connection through something unique; they’ve seen it doors shuttered and mask wearing and an amazing team. We made a unique product innovation that focuses all (and probably tried it all) during became mandated. commitment that there would be zero on what consumers want right now: quarantine so serving looks, products Still, makeup remains the largest COVID-19-related layoffs and because multiuse, easy-to-use, and good for the and content that feels different than single category in prestige beauty — of that we really came together lifestyle and behavioral changes. what they’ve seen before is key. And just — according to data from and finished 2020 as strongly as It’s all about staying close to your it goes without saying results and NPD Group, and the long-term possible. With that, we definitely saw community, listening to them and payoff matter, too. High-performance health of the industry is tied to a resurgence and we’re specifically delivering. A great example of this and high-quality close the sale and its revitalization. Here, leading seeing interest in formula and was the launch of our #FauxFilter create loyalty; you have to walk the founders, marketers and retailers format innovation across all makeup Skin Finish Stick foundation in walk if you want to talk the talk and assess what’s working right now — categories, especially complexion. October. It was our first light you can’t afford to skimp out on and how to reestablish relevance We’ve noticed that contextually coverage foundation, and it was so performance anymore. Consumers in a world that is forever changed. relevant content (i.e., that which well received because our community are too informed and invested. DEEP DIVE 9 MAY 7, 2021

MONICA ARNAUDO CHIEF MERCHANDISING OFFICER,

Makeup has, and continues to be, an essential form of self-expression for beauty enthusiasts. The past year drove increased interest in self- care and wellness, with significant engagement across the skin care, hair and bath categories. While the ways consumers are engaging with makeup may have shifted with scaled-back beauty routines, as we emerge from the pandemic we’re seeing renewed interest in color cosmetics. The change in seasons, increased optimism and pent-up energy are driving this resurgence. We’re already seeing promising signs following our 21 Days of Beauty event, which showed strong engagement amongst makeup steals. Many guests are eager to experience moments of togetherness again and with vaccinations well underway, the reality feels like it’s on the horizon. ]As we look forward to the new JOHN DEMSEY EXECUTIVE GROUP PRESIDENT, normal, makeup will provide guests THE ESTÉE LAUDER COS. INC. ]a source of fun, discovering will create excitement and beauty ease back into the category, two-in- routines will be revitalized. Our Overall, we expect the category to one, multiuse products that achieve research shows 88 percent of beauty gradually restabilize and return to a more natural, monochromatic look enthusiasts feel most activities will growth as the world settles into a are seeing strong engagement. The return by summer 2021 and they plan post-pandemic normal and usage W3ll People Nudist Multi-Use Stick, to purchase products like and occasions increase. Where vaccination Nars The Multiple and Axiology 3-in-1 foundation that were often skipped rates are high, we’re seeing the Balmies Trio are great examples of during the pandemic. category bounce back and, in some buildable color that can be used on As consumer behaviors continue cases, outperform expectations. eyes, cheeks and lips for an effortless to evolve, we remain optimistic People’s social and professional yet elevated finish. about the category and anticipate calendars are starting to fill up again We know self-care and wellness its continued comeback. Satisfying and they want to project their best ’s new hyrbrid foundation serum is a hit. will remain essential within beauty our guests’ need to self-express, selves in every way. Makeup plays a We are also seeing great success and see exciting opportunities to we’re encouraged by many elements big part in this. Foundation, brow and with cult-favorite products that are greater personalize through the within the makeup category. In gloss categories are booming while on trend in the recovery such as lens of makeup and inclusivity. addition to brow, mascara and other categories are growing toward graphic eyeliner and plumping gloss. As consumers are increasingly products performing pre-pandemic levels. Our strategy of Too Faced Lip Injection Maximum more conscientious about making well, eyeshadow continues to trend, promoting hero products along with Plump emerged as the number- informed product choices, clean and especially as guests update their newness continues to fuel growth. two prestige in America sustainable makeup will be wardrobes seasonally. MAC Cosmetics helps consumers calendar-year-to-date. Lip Injection critical to the category’s growth. We Guests are also opting for below- make their comeback though trend- Extreme Lip Plumper is the number- launched Conscious Beauty at Ulta the-mask makeup again, specifically based content brought to life by hero one prestige lip gloss, boosted by Beauty last fall to simplify product lip products in pigmented, long- and innovative products, including the brand’s laser-like focus of the choice as focused on five, meaningful lasting formulations. Brands like the recently launched Love Me product on TikTok — the hashtag pillars. Within the program, we are NYX, Juvia’s Place, Smashbox and Lip Colour. MAC's global brand #toofacedlipinjection has actively certifying more makeup Lancôme are among many that ambassador, Lisa from Blackpink, 42.1 million views. Too Faced now brands that meet conscious-minded have transfer-resistant solutions dropped content with her favorite owns 21.7 percent share of market in consumers’ beauty wants and needs promising long-wear results. cherry-red shade this spring. In the lip gloss calendar-year-to-date. TikTok across clean, vegan, cruelty-free and For those seeking to simplify and U.S., consumers are seeking ease of has had an undeniable effect on what sustainable packaging. use, comfort and long-wear benefits. people buy and Too Faced is utilizing As a result, is the platform to capitalize on social experiencing a surge in sales of its trends, amplify owned and influencer Longwear Shadow Sticks, which content and connect with fans in an have grown by 57 percent. authentic way. Over the past year, consumers It’s also important to consider the became savvier about skin care while emotion that comes with reentry makeup took a backseat. Introducing and getting ready to go out again. makeup products that deliver skin Our consultants and artists bring a care benefits resonates well, as it confidence boost to consumers. allows consumers to return to using After more than a year of staying makeup while still prioritizing skin home, there can be intimidation care. Clinique’s new Even Better and confusion with incorporating Clinical Serum Foundation is built makeup back into routines. on three serum technologies, so it It’s our job to help consumers take delivers the makeup benefits, while the guess work out of finding the The Chanel play area in Ulta’s also visibly improving skin. right products. newest store. DEEP DIVE 10 MAY 7, 2021

Maybelline’s Sky High was its biggest mascara launch ever. Our brands have been propelled by fantastic innovations that were accelerated on digital platforms, like NATHALIE GERSCHTEIN Lash Sensational PRESIDENT, CONSUMER PRODUCTS, Sky High Mascara, which delivers. L’ORÉAL USA Even as mascara leaders, Sky High has been our biggest mascara launch ever Although the category was hit and the best launch of this year. during COVID-19, we did see In past social recessions, it was all engagement with beauty remaining about the “lipstick index,” but now very strong. We witnessed some people are treating themselves with segments booming, such as nails, root mascara in the new normal. L'Oréal touch-up, “Zoom look” lip glosses, Paris Infallible 24HR Fresh Wear above-the-mask eye makeup and Foundation in a has also found comforting skin care for example. This great success. Finally, although lip was shows the resilience of the beauty the most challenged category, NYX PM category and how beauty is purpose- Shine Loud High Shine Lip Color, our driven and not frivolous as it answers a ultra-pigmented high-shine lip color AMANDA E. JOHNSON fundamental need and is deeply linked with up to 16 hours no color transfer, COFOUNDER AND CHIEF OPERATING to self-expression and self-confidence. even under the mask, was a complete OFFICER, MENTED COSMETICS The market began to turn around game changer. The product became early this year in some segments and NYX's number-one new franchise in The overall beauty industry has has been showing a real recovery 2021 and drove the entire lip category. been in decline for several years overall, especially in the last six NYX PM is a great example of pre-pandemic because the rise weeks, not only versus 2020 but pivoting in the digital space. NYX of indie beauty brands that more growing versus 2019. There are many created multi-touchpoint experiences specifically address customer needs factors at play, including the stimulus that truly bring omni-experience to has provided customers an alternative. checks, tax refunds and highest-ever life and make consumer shopping Mented Cosmetics is no different. savings. As more vaccinations are easier. An example is our use of virtual Mented has given our customers happening and states are relaxing try-on where we saw a record-breaking highly pigmented everyday beauty their mask guidelines, we’re seeing month in March with more than 16 that is authentically inclusive. More makeup growing. Markets with higher percent of total sessions engaging in conscious consumers have leaned into indie beauty brands giving them what vaccination rates and less social VTO on our direct-to-consumer site. Mented’s lip category has shown resilience. restrictions are outperforming others This is something we can bring to life they want, how they want it, and that versus 2020 and are also exhibiting in store through QR codes, and we demand has not ceased. category is about innovation. To reach category growth versus 2019. are invested in growing the digital During the pandemic, Mented customers, a product needs to stand Following a social recession, we shopping journey in a seamless way. Cosmetics has experienced a out on a crowded shelf, it needs to are seeing the desire to celebrate But more than just products, tremendous surge in demand while provide some meaningful effect and recovered freedom, and the beginning consumers desire connection. We experiencing a severe slowdown in lastly needs to have the ingredients of the Roaring Twenties. The Beauty are continuing our efforts across our our supply chain. While the high or sustainability they want. All three Boom has already started. The brands to strengthen our communities. demand of 2020 has maintained, needs need to be addressed and pendulum has swung from minimal For example, on Maybelline New York, the resurgence has really been in that’s where indie beauty brands (2019 bare-skin look) to maximal, with our brand cause, Brave Together, is a our supply chain. We’ve been able will continue to win. For us, our bold, glam, bright looks surging. global initiative for those experiencing to restock at a higher rate and that’s hero products this year have been Google search data for makeup/ anxiety and/or depression. We have helping us fulfill the demand and our Skin by Mented foundation line cosmetics are higher today than 2020 pledged to give $10 million over the expand in retail. In the last year we’ve for coverage and hydration, our and 2019. Consumers are ready to next five years to leading mental added three new retail partners; Sunkissed palette to glow, update their makeup and embrace health nonprofit organizations. We HSN, Target and Ulta Beauty, which our Everyday Eyeshadow for some bold colors and full looks. And the know this will bring our community has helped us reach more customers above-the-mask beauty, and our answer lies in strong innovations that closer together and give help where it and continue to grow. semi-matte lipstick collection for connect with consumers. is needed during difficult times. I think meaningful growth in the everyday nudes and neutrals. DEEP DIVE 11 MAY 7, 2021

ARTEMIS PATRICK from trusted brands like Kosas, Ilia, EXECUTIVE VICE PRESIDENT AND Tower28, Milk Makeup and Bite Beauty. GLOBAL CHIEF MERCHANDISING When we dive further into the OFFICER, makeup category, there are a few key areas where we continue to see strong Sephora is constantly soliciting and performance. Starting with foundation, listening to client feedback around we’ve seen an uptick in skin tints, JILL SCALAMANDRE the globe in order to stay ahead of which are lightweight foundations GLOBAL PRESIDENT, changing client needs and evolve our that feel barely there on the skin and BAREMINERALS AND BUXOM offerings based on the latest interests, reveal a healthy glow. Fenty Eaze Drop trends and product innovation. Blurring Skin Tint and Ilia Super The makeup category continues The pandemic has created some Serum Skin Tint SPF 40 have had a to struggle, however it’s improved shifts in what our clients are seeking great response as they provide that since January. It has been a gradual from the makeup category and we’ve natural, dewy look. improvement. January and February adapted our offerings to address We have also seen a rise in liquid had significant declines, but we this, while continuing to evolve the blushes and cream pigments for a are starting to see, in March, a experience and bring a best-in-class, flushed look with Rare Beauty Soft strengthening. I’m not going to differentiated product assortment. Pinch Liquid Blush and Danessa say a return to positivity — but a One recent shift that’s definitely Myricks Beauty Colorfix Eye, Cheek & strengthening, with overall makeup become a trend is that they want Lip Cream Pigment. Onto brows, the sales down 8 percent year-to-date, and to achieve a fresh, modern “lit from brushed-up, natural feathered look is growth of 42 percent in March. When within” look with makeup. One of the absolutely driving interest in brow you compare it to 2020, it looks great. Hybrids like this tinted drivers working well for this is our and brow products. Lastly with But that is a false positive. You have Clean Makeup category. We continue lips, we see our clients looking for a to look at 2019 to see how healthy it is are selling well. to see an increase in demand for clean healthy, plumped look. and the market is still down makeup products — especially as the At Sephora, we recognize that every 28 percent to 2019. We’re not there that on social and at retail. We have pandemic has also reignited a focus on individual has unique beauty needs and yet. So we still need to get consumers seen an uptick with our BarePro wellness — and have worked closely wants, and it’s our job to always deliver back engaged with the category. concealer, foundation and lip, because with new and existing brands to deliver an evolving assortment of products What can get us there? When you we’re promoting it and demonstrating on this growing interest. Earlier this to meet these diverse needs. Despite think about the barriers with the to consumers how to use it. year, we launched some exciting new the challenges with the pandemic, consumers, number one is the mask. Promoting things that work with the clean makeup brands, including Merit, interest in our makeup assortment Number two is working from home mask is one way to get consumers to Saie, LYS Beauty, Freck and Westman remains strong and we anticipate it will and not feeling as if you have to put start using makeup. We need to get Atelier, as well as some new products continue to grow throughout 2021. makeup on, and number three is the them back in the groove. consumer’s continued focus on self Secondly, talk about the skin care care with skin care. benefits within makeup. Tinted Our task is to get consumers are performing better. excited about wearing makeup again. Our Complexion Rescue Tinted There are several levers. If she is Moisturizer is the number-one tinted going to wear makeup, show her how moisturizer in prestige and we to wear makeup with the mask. You continue to see new users. It is also can see that lip is doing the worst, a multitasker, it doubles hydration in down 23 percent, which totally makes the skin, and also has sun protection sense. Face is also declining, down 10 and sheer tint. Making it easy with percent and the eye category is doing multitasking products will start to better — only down 2 percent. get her back into the routine of using What do you do with lip and makeup. We believe as businesses face with the mask? Drive your start opening up and consumers foundations that are transfer- return to the office, we will see Shoppers are eager to play with color again. resistant. You have to keep promoting makeup come back to life. ANALYZE THIS 12 MAY 7, 2021

Testers of different lipsticks lip scrub, both out on May 26. in a cosmetic store. “A lot of competitors have been holding back on their innovations during the whole COVID-19 period,” Lau added. “We actually took a very different approach. We embraced the environment and said to ourselves, ‘Everyone is probably going to be pulling back on their launches and their innovations, and in order to really stand apart, we should be doing something different.’” It’s safe to assume that companies pushed back their launches amid the pandemic, noted Jensen. And research shows that beauty launches are up in 2021 compared to 2020. “Right now, if you start to look at weekly sales, you're seeing crazy triple-digit gains across every single category,” said Jensen. But it’s misleading, she added: “We're looking at a very unusual year…You're up against a time in 2020 where we're starting to have some lockdowns, and it was also a very challenging time with launches. Brands weren't really coming out with launches, so, of course, you're Down But Not Out: going to see growth.” When comparing 2021 to 2019, a more realistic measurement, overall Lip Struggles to Come Back launches are down, she added, including in lip. There are less Mask-proof, matte and products with skin care benefits are the focus. lipstick releases, especially, however, BY RYMA CHIKHOUNE the category is seeing an uptick in products with “treatments” — WHEN IT COMES TO the lip “Matte was really big for a while, delivered on what we always do cosmetics and skin care hybrids. category, there's not much to smile back when Kylie [Jenner] had her which is amazing color payoff and Luxury clean makeup brand Roén about. first launch of lip kits, and everybody shine, but it’s the mask-proof piece released its “Kiss My Liquid “The bottom line is that lip in was going for the matte look,” Jensen that was what consumers didn't Shimmer,” a gloss with the benefits of 2020 was the worst hit category in said. “Then, it kind of tapered off a know they needed or wanted,” a balm, about a year ago in April 2020. the worst hit category,” said Larissa little bit. But what was interesting is Dastmalchi said. “Ironically, it was in the pipeline,” Jensen, vice president of beauty and that as soon as mask mandates took Meanwhile, most other brands used said Tiffany Thurston Scott, industry adviser at the NPD Group. hold last year, we started to see a rise technology to focus on skin care. cofounder of Roén — which was Makeup suffered the most last in dollar share of matte lipsticks, and Makeup artist Charlotte Tilbury, launched in 2019. “It seems like, year, down 34 percent overall year- that's really because these are the for one, launched six shades of her obviously, a little bit of a nervous over-year, according to the market lipsticks that have the better staying $34 “Tinted Love Lip and Cheek time to launch something, but we research company. In comparison, power under your mask.” Tint,” made with vitamin E and did have it in the pipeline. We had skin care declined 11 percent and Dior released 11 colors — neutrals hyaluronic acid, and Avon showcased formulated it well before launch. And fragrance was down by 8 percent, to reds — as part of its “ Dior 10 shades of its $22 “Cashmere it did better than expected. I really while hair grew 7 percent. And Forever Liquid” collection, a highly Essence Lipcream,” which has a bio- attribute it to the formula.” within makeup — encompassing face, pigmented, matte and transfer- retinol core. The brand says it’s the The brand just introduced three eye and lip products — lip was down resistant line of liquid lipsticks, first of its kind to hit the U.S. market. new shades to the line, at $26 each. by 41 percent. while NYX Professional Makeup “We were noticing that products “We were getting a tremendous And yet, early 2021 has seen an introduced a $9 “Lip Lingerie XXL that had more of a skin care benefit amount of feedback from people influx of lip launches. In March and Matte Lipstick,” which comes in 24 storyline definitely were outshining during the pandemic,” Scott April alone, there were about two- shades made for long-wear. It, too, is the rest,” said Avon’s color marketing continued. “Everybody was saying, dozen new lines introduced by major transfer proof. director, Eva Lau. ‘Look, we're dying for more colors.’” beauty brands. “I think for us it was really about The company, which works with Though it's been a challenging time From luxury to mass, the likes reading our consumer reviews and brand representatives nationwide, for the lip category due to COVID-19 of Chanel, Hermès, Too Faced, seeing the performance of our lip examined what resonated most with for obvious reasons (“You're covering Westman Atelier and Lady 's category,” said Yasmin Dastmalchi, customers in various markets. your mouth and also makeup is very Haus Laboratories have released senior vice president of marketing at “Cashmere Essence Lipcream” highly tied to usage occasions like news in lip this year. And when the NYX Professional Makeup. The new — a vegan product, made with going out, which is something that “Lizzie McGuire” and ColourPop launch was always in the pipeline, she meadowfoam seed oil, vitamin E and we didn't do last year,” said Jensen), collaboration dropped, it included stressed, and partly inspired by the plant-based ingredients targeting events have turned around recently, gloss — of course — while Jen Atkin's “strong growth” the brand saw with antiaging — “outperformed” sales which will impact the market. first cosmetic line, a partnership previous releases in 2020, including expectations by 41 percent, said “I think we're just starting to get with E.l.f., featured a duo-sided the “Shine Loud High Shine Lip Lau. The forecasting department ramped up,” she said. “I think this matte lipstick and liner combo. Color” — a vegan gloss that promises compared it to similar launches is going to be a great year for the The majority of recent product to be non-sticky yet have “long wear” while taking into account market industry, because in the U.S. especially, launches are, in fact, largely matte and “no transfer wear” that came out conditions, and the brand plans you're starting to see a turnaround in formulations — and mask-proof — or toward the end of the year. to release more in lip this year, terms of the consumer sentiment and infused with skin care benefits. “The new technology not only including a vitamin C lip mask and case counts going down.” LAUNCH PAD 13 MAY 7, 2021

Beauty's New Lease On Lips Brands are hoping that innovation will give a much-needed boost to the lip category. Here, 12 of the latest Avon Cashmere Charlotte Tilbury Tinted Love launches. BY JAMES MANSO Essence Lipcream Lip and Cheek Tint AVAILABLE IN 10 SHADES, $22 EACH AVAILABLE IN SIX SHADES, $34 EACH Avon’s newest doubles as antiaging treatments, Tinted Love lip and cheek balms include thanks to its bio-retinol core — which the brand include vitamin E and hyaluronic acid for says is first-to-market in the U.S. non-drying color.

Dior Rouge Dior E.l.f. xx Jen Atkin Haus Laboratories Kjaer Weis Matte, Lancôme L’Absolu Forever Liquid XXtra Lip Duo PhD Hybrid Naturally Lipstick Rouge Drama Ink AVAILABLE IN AVAILABLE IN THREE Lip Oil Stain AVAILABLE IN AVAILABLE IN 11 SHADES, $38 EACH SHADES, $8 EACH AVAILABLE IN SIX SHADES $30 EACH 13 SHADES, $28 EACH The newest addition to E.l.f. Beauty’s collaboration FIVE SHADES, $24 EACH Kirsten Kjaer Weis’ elegant With a water-in-oil formula Dior's lip lineup is a with star hairstylist Jen Atkin 's latest contains organic formulas are also and patented petal applicator, transfer-proof, liquid includes these dual-sided self-adjusting pigments that eco-friendly, available with Lancôme’s promises formula that promises lipsticks based on Atkins’ react with the pH level of refills for $22 each. long-wear and striking colors long-wear. favorite shades. the wearer’s skin to create a with one swipe. personalized lip shade.

MAC Cosmetics Love NYX Professional Roén Kiss My Too Faced Lip Westman Atelier Me Liquid Lipcolour Makeup Lip Liquid Lip Balm Injection Liquid Squeaky Clean AVAILABLE IN 17 SHADES, Lingerie XXL Shimmer Lipstick Liquid Lip Balm $24 EACH Matte Lipstick AVAILABLE IN THREE AVAILABLE IN AVAILABLE IN MAC’s addition to the Love Me AVAILABLE IN SHADES, $26 EACH 10 SHADES, $25 EACH SIX SHADES, $38 EACH franchise counts 17 shades 24 SHADES, $9 Meant to mimic a lip gloss’ Pucker up: Too Faced Makeup artist extraordinaire and two types of technology: NYX's newest boasts finish with the benefits of promises volumizing and Gucci Westman’s latest TLC Lip Complex for moisture, long-wear — up to 16 hours a balm, Roén’s glittery moisturizing benefits with its launch can be layered and ColorCling technology for — and a transfer-resistant new offering contains newest product. over traditional lipstick a 12-hour wear. moisturizing formula. a slew of botanicals. or worn alone. WORDS OF WISDOM 14 MAY 7, 2021 Mothers Know Best As families everywhere prepare to celebrate Mother’s Day this Sunday, we asked some leading women in

beauty: What has being a mother taught you about business? BY JENNY B. FINE

VENNETTE HO ERICA CULPEPPER MANAGING DIRECTOR, GLOBAL GENERAL MANAGER, L’ORÉAL USA HEAD OF BEAUTY AND PERSONAL CARE, FINANCO RAYMOND JAMES MOTHER TO JABRIL, 23, AND JALIL, 17 SARAH CURTIS HENRY Being a mom taught me the art of designing CHIEF MARKETING OFFICER, TATCHA MOTHER TO DYLAN, 11, AND KIRA, 7 a life, a family, a team and a business that My mother taught me to see a world MOTHER TO RJ, 5 I would want to be a part of. I learned to without limits, and to think about Being a mother has enabled me to break up bring my own sunshine, and to focus on every problem as having a . with the idea of control, both in life and in the task at hand for us, and not worry This is an incredibly valuable mind- business. I can guide my son and attempt to about what everyone else is doing. set in investment banking, as a plan his every move, but ultimately forces huge part of this job is about solving beyond my control, including his own free complicated problems! She loves the will and the ever-changing world around us, word “tenacity” — and it’s a key part will influence the outcome and who he will of being successful in any business. become. This holds true in business. I can plan down to the nth degree, but disruption is a constant and fluidity is critical. I wouldn’t have it any other way.

CHARLOTTE CHO LAUREN BRINDLEY FOUNDER, SOKO GLAM GROUP VICE PRESIDENT, WALGREENS MOTHER TO KENNEDY, MOTHER TO AUSTIN, 10; SEBASTIAN, 8, 5 1/2 MONTHS AND JASPER, 1. The concept of 'Leaning Being a mum to three wonderful young sons In' is great in theory, hard all with different personalities, different ages, AMY GORDINIER in execution. Motherhood different needs and desires...means FOUNDER AND CEO, SKINFIX is extremely complex and I am constantly on my toes. Being a parent is difficult, and sometimes, the greatest learning curve you will ever face MOTHER TO IZZIE, 17, AND WILL, 15 something’s gotta give. and that learning never ends. I love that. Being a mom has taught me to pay more attention Motherhood has changed My children have taught me to look to what I can learn from every person on the me in that I'm forced forward, constantly assess the changing team — regardless of their business experience or to work more efficiently environment and adapt my approach to tenure. Kids arrive in this world with wisdom and and learn how to prioritize achieve the most successful outcome. gifts. I’m constantly learning from my children — better. Lastly, motherhood They’ve also taught me to enjoy the they help me grow and follow my purpose. In the has helped me be more journey…the exploration…the innovation… same way, I constantly learn profound lessons empathetic to those around and to have lots of fun along the way. My from my team about things like managing people, me who are also juggling life is certainly full both professionally and effective communication, culture, partnership, a dual role as a caretaker, personally and I wouldn’t change a thing. balance and grace. because life happens!