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Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. Business Retail Innovation Brands no!no! aims to regain Erborian opens debut Water-based polishes Jo Malone launches Blue leading position in bricks-and-mortar store gain popularity with Skies & Blossoms collection page 6 children page 10 page 2 page 9

cosmeticsbusiness.com twitter.com/cb_beautynews 20 April 2015 NEWS Issue 14 Sumitomo makes strategic acquisition

Trading company Sumitomo Group has acquired a cosmetic ingredient distribution business from Kyowa Hakko Europe and, as a result, will make full entry into the region. Sumitomo Group will purchase the right to market cosmetic ingredients including vitamins and moisturising agents for hair and skin care products. Sales business will primarily be conducted in , as well as a number of other European countries, and the Middle East. The group made its first move into the sector by exporting ingredients made in Japan. However, in 2010 SIERRA LEONE CLAMPS DOWN ON it made further ground in this sector with the acquisition WHITENING COSMETIC INGREDIENTS of US cosmetic ingredient The country’s Pharmacy Board has issued a notice stating that imported cosmetics distribution company Presperse must not contain more than 2% of the lightening compound hydroquinone Corporation. Later, in 2013, Sumitomo invested in ierra Leone has made a renewed effort In the notice, signed by Wiltshire Johnson, Cosmotec International to ensure that cosmetics imported into Registrar at the Pharmacy Board, it read: Especialidades Cosmeticas, a Sthe country are safe to use. “The board hereby informs the general public supplier of ingredients in Brazil. The Pharmacy Board of Sierra Leone, the and importers of cosmetic products that stringent Kenichi Nakamura, General country’s medicines regulatory agency, issued measures to regulate these products are currently Manager of the Medical Science a public notice recently that directed all those Department at Sumitomo concerned with the importation of cosmetic Stringent measures to regulate Corporation, said: “I am products into the country to ensure that all these products are currently being “ confident that we can grow products only contain the regulated amount “ the business globally with of hydroquinone content – no more than 2%. implemented to ensure the right Presperse and Cosmotec by Hydroquinone has a wide variety of uses; products are being distributed gaining the excellent customer however, in cosmetic applications it is largely base through this deal and by used as a or lightening agent. being implemented in order to ensure that supplying unique ingredients The use of hydroquinone is banned in some the right products are being distributed to the to the market in the future. I am countries, including in the EU under Directive general public. In this regard, importers of hoping to grow the business 76/768/EEC: 1976, due in part to concerns over cosmetics products in Sierra Leone are kindly together with the talented potential carcinogenic qualities. requested to take the necessary action to register employees of Kyowa Hakko In Sierra Leone, however, the compound is all cosmetic products they are importing with the Europe who will join us.” legal for use in low concentrations. In its latest Pharmacy Board of Sierra Leone in the interest Sumitomo Group presently notice, the Pharmacy Board reiterated that all of public safety and health.” operates in Europe, the US, cosmetic products that contain hydroquinone The Pharmacy Board of Sierra Leone was set Brazil, Japan and . must clearly indicate the ingredient’s presence up in 1988 by an Act of Parliament. It hopes to generate annual on the label of the container. Read more at cosmeticsbusiness.com sales of $200m in three years.

20 April 2015 cosmetics business news 1 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission.

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COACH INKS DEAL WITH INTERPARFUMS ccessories and lifestyle brand Coach has of our fragrance business since our launch. entered into an 11-year exclusive As our brand transformation continues to Aworldwide fragrance license agreement progress, and with Interparfums as our partner, NEWS with Paris-based Interparfums SA. we know we can leverage this category into Under the agreement, Interparfums will create, a much larger global opportunity.” produce and distribute new fragrances, including Meanwhile, Jean Madar, Chairman and CEO CONTENTS new men’s and women’s scents for Coach. of Interparfums, added: “Coach is an iconic brand The fragrances and fragrance-related products focused on relevance and innovation. We greatly Business: Coty demoted by BMO 4 will be distributed to department and speciality respect what the company has already Trends: Women’s fragrance market stores and duty-free shops, as well as in Coach’s accomplished in the realm of fragrance, most attracts growth 5 own retail stores from autumn 2016. notably with Signature and Poppy, the brand’s Retail: Erborian opens debut Victor Luis, Chief Executive Officer of Coach, well-established top selling scents.” bricks-and-mortar store 6 said: “We’ve been pleased with the performance Read more at cosmeticsbusiness.com Expert Advice: Eyeko’s Nina Leykind on standing out in the industry 7

Digital: Schick and Skintimate launch no!no! aims ‘Rock Your Legs’ campaign 8 to regain position in Japan Innovation: Water-based polishes The no!no! hair removal brand will soon be gain popularity with children 9 expanding its presence on the Japanese market, Brands: Jo Malone launches Blue following the signing of an exclusive distribution Skies & Blossoms collection 10 agreement by PhotoMedex’s Radiancy subsidiary People: Noah Galloway for Cole 11 and Synergy Trading Corporation. The agreement will see the no!no! 8800 and The Final Word: Nominet’s Nick Wenban-Smith on fighting fraud 12 no!no! PRO distributed in Japan by Synergy, which is based in Osaka and is a prominent Japanese importer of US and European News Editor Lucy Copp SUSSEXIM EXPANSION PAYS OFF consumer products in the country. Synergy has Acting Reporter Kathleen Armstrong US-based SussexIM, a design, engineering, lean placed an initial stocking order of $1.2m for Freelance Correspondents manufacturer and post-moulding plastics-related immediate shipment. Sarah Cohen, Adrian Holliday, company, has reported a 15% increase in In addition to the two models above, Synergy Patricia Mansfield-Devine production capacity and 12% more personnel is also due to launch two new no!no! models Production Designer Ross Murdoch as a result of a long term project for major facility next year and has a right of first refusal Art Editor Sibylla Duffy and personnel expansion. to market other Radiancy consumer products. Digital Production Nita Salem The company invested more than $1m in the The current distribution agreement is binding Editorial Director Erika Hatva expansion; its annual growth rate has averaged at until 31 December 2016 and is said to be Managing Director Colin Bailey-Wood 11% over the last five years. renewable after that date. President Keith Everson said: “Our annual Dr Dolev Rafaeli, Chief Executive Officer of HPCi Media Limited Unit 1, Vogans Mill Wharf, 17 Mill Street, growth rate... is an exciting example of how US PhotoMedex, said: “Synergy Trading Corporation, London SE1 2BZ, UK production know-how can compete globally, with its proven marketing capabilities and a +44 20 7193 1279 against offshore providers, by delivering superior strong track record with global brands, is an ideal quality, innovation and return on investment.” choice for no!no! in Japan.” He added: Editorial +44 20 7193 9502 SussexIM, which creates packaging for the likes “Synergy’s President and CEO, Toshihiro [email protected] of cosmetics brands such as L’Oréal, became part Haranaka, has built a powerhouse marketer in Subscriptions +44 20 7193 1279 [email protected] of REXAM in 1999 and emerged as SussexIM via only 15 years. Its reach includes more than 6,000 a management buy-out in 2010. retail sites including all the leading department The company recently announced a stores, speciality electronics stores and general partnership with InkWorks Printing – said to be merchandisers throughout Japan. In addition, Subscription Details “the first commercially-available combination of Synergy’s print, television, radio The subscription includes full digital access to the in-mould labelling and digital watermarking with and web-based advertising and cosmeticsbusiness.com website, engineered results”, according to the company. its established call centre will as well as the weekly Cosmetics “Now, brand owners in cosmetics, personal support the return of no!no! Business News and monthly care and household products and more have to a country that historically Cosmetics Business Markets quick turnaround access to a visually exciting and accounted for a significant print magazines. cost efficient alternative to pad printing and hot portion of our consumer sales.” stamping,” Everson said. “Our alliance is another Haranaka added: “no!no! ©HPCi Media Limited example of how we at SussexIM continually strive Hair is held in high regard by Articles published in this newsletter may only to offer the value-added technology our consumers in Japan and we be reproduced with permission. The publisher accepts no responsibility for any statements customer-partners need to differentiate their are confident in the brand’s made in signed contributions or in those products and capture market attention strength to regain its reproduce from any other at a time of unprecedented competition.” leading position in the source. HPCi ISSN 2057-1984 media Read more at cosmeticsbusiness.com Japanese market.”

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AVON RECEIVES ANOTHER DOWNGRADE NEWS IN BRIEF here has been more investor disillusion Avon’s performance in the last year has seen Sustainable ingredients with : investment research its sticker price collapse by more than 40% and specialist Amyris has Tplayer Vetr has snipped its rating to Hold its earnings are down significantly, which has entered into an agreement from Buy in its latest research note on the not been helped by increasing pressure from with Squalan Natural Health struggling direct seller. rival companies such as Nu Skin, Unilever and for the production and Vetr’s downgrade joins similar recent Herbalife. marketing of personal care downgrades on Avon from RBC Capital, The company has been criticised for putting products based on the as well as other players. cost-cutting ahead of long term emollient Neossance However, the pessimism – investment growth. Squalane. Amyris will have the option to acquire an Avon’s share price has recovered Avon’s position in Brazil, for ownership stake in the slightly at $8 from a $7.28 instance (see p4) appears company and appoint March low – is not somewhat confusing: Brazil’s a member of its Board overwhelming: recently beauty market is booming on of Directors. Deutsche Bank (DB) stuck a a number of levels. Buy rating on the stock with Yet “[Avon] Active Chile-based multi-brand retailer an ambitious $15 target price Representatives declined Cencosud has announced (Sanford Bernstein lists modestly,” Avon admitted in its a 6.8% increase in revenues, to CLP2.7 trillion, in the third a $11 target price). recent quarterly update. “Brazil quarter, driven by sales in “Though not for the faint of heart,” said DB continues to be impacted by a challenging its supermarkets, home Analyst Bill Schmitz, “valuation provides macroeconomic and competitive environment.” improvement, shopping centres downside support, short interest is high, investor Avon revenues were also down in and financial services divisions. sentiment is lousy and intrinsic value in a less (-29%), (-11%) and (-1%). Gross profit rose 2.7% to volatile emerging markets environment is well Avon remains lumbered with a sizeable debt- CLP737bn, while operating above current trading value.” to-equity ratio, higher than the industry average. income neither rose nor fell at CLP132bn.

Spectra Packaging has EMERGES AS WORLD’S appointed Fidel Fillaud as its LARGEST COSMETICS EXPORTER official distributor in France. French cosmetics exports rose by 4% last year, Founded in 1929, Fidel according to French trade body FEBEA, making Fillaud has built up a base of it the world’s largest cosmetics exporter. almost 8,000 customers from The cosmetics industry is France’s largest all business sectors. “Fidel export other than aeronautics, said FEBEA, with Fillaud’s leading position in France will almost certainly sales of u8.9bn in 2014 (compared with u23.6bn u open up more channels for for aeronautics and 6.5bn for the food and us in what is a huge market,” agriculture industries). said Edward Wilson, Export It’s also the sector with the strongest growth, Sales Representative said FEBEA, at 4%, compared with 2.5% for at Spectra. aeronautics and a 8% fall in food and agriculture. The Scentbird fragrance subscription “The 2014 results confirm the leading position service will launch in the US from mid-April. Rejuvel Int’l, a subsidiary of of France in the international cosmetics market,” The service, which costs $14.95 per Rejuvel 3D Anti-Aging Cream creator Technology Patrick O’Quin, President of FEBEA, told CBN. month, aims to offer subscribers a unique Applications International, has “The companies in our industry, SMEs, ETIs journey of fragrance exploration, resulting in personalised perfume choices delivered announced that it is about or large groups, cater to markets with very direct to their door. to conclude the registration different consumption habits. The French Rachel ten Brink, CMO & Co-Founder of process to conduct business cosmetics industry is also one of the foremost Scentbird, said: “The number one reason in . The company’s sectors in terms of innovation.” women purchase perfume is to buy agent in Mexico, Juan Carlos The EU remains France’s chief export market, something new or different. About a year Palma Espejel, will work with accounting for 48.2% of sales. France’s exports to ago, we started running ‘perfume tastings’ DISISA, a group that aims to help repair the self-esteem Asia grew by 11.7%, and its exports to China to help women learn about scent and of obesity sufferers. grew by 16%. The region as a whole accounts for discover what they loved. “We wanted to bring this to a broader only 16.9% of France’s exports but it is seen to be audience, but realised that less than 9% of Lubrizol has selected growing fast. fragrances are being bought online today, Essential Ingredients as French cosmetics exports to the Middle East and that it’s predominantly re-buying scents the exclusive distributor for increased by 7.1% in 2014, with hubs such as you already know. Meanwhile, the its Active Organics platform, Dubai and Hong Kong acting as important experience of shopping in-store is including its range of distributors, while sales to the US increased by challenging and perfume takes time to botanical extracts, for its US customers east of the Rocky 7.6%. overall develop so it’s not ideal for a rushed retail Mountains. The agreement Skin care and perfume represent two thirds of experience. Our objective was to create a perfume playground, geared towards covers the full range French cosmetic exports, followed by millennial women.” excluding the Advanced and hair care products (6.6%) and make-up for Botanical Ingredients. the eyes and lips (6.5%).

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NEWS IN BRIEF COTY DEMOTED BY BMO CAPITAL MARKETS rench beauty player Coty has been like many other beauty companies, it has been While the range of green downgraded from a rating of Outperform affected by dips in celebrity fragrance popularity cosmetics is undoubtedly growing, traceability, supply Fto Market Perform in a move by analysts and flat organic growth. fluctuations and price at BMO Capital Markets. Recent Skin & Body Care revenues were down volatility are inhibiting their BMO’s worry is part built on Coty’s valuation 6%, a figure which was not helped by the adoption, according to since it snapped up the Bourjois cosmetics brand Chinese corruption crackdown on gift-giving; specialist research company from Chanel – which subsequently saw Coty’s Coty also saw poor numbers from both North Organic Monitor. It said share price surge 50%. “We don’t think the risk- and South America. green materials have reward is in investors’ favour,” said BMO Analyst Fierce competition from brands including expanded beyond consumer Connie Maneaty last week. L’Oréal and Estée Lauder, among others, concerns about safety to address environmental Maneaty also points to further pressure on the continue to pile on the pressure. concerns – issues which strong US dollar and its effects on personal care However, the pessimism for the group’s future will be addressed at The and household products corporate profits for prospects isn’t completely overwhelming: BTIG Sustainable Cosmetics 2015, more widely. Research recently reiterated its Buy rating on Summit, taking place in New “With anaemic growth prospects and margin Coty, while Citigroup has hiked the company’s York on 14-16 May. expansion to come in below expectations, Coty stock price target to $25. shares are destined to disappoint by next year,” Recently, major Coty shareholder BV Jab Cruelty Free International said Seeking Alpha commented recently. offloaded a substantial number of Coty shares. it has received, in principle, agreement from The Ministry Analyst B Riley has also cut its rating on Coty, Coty shares were valued at $23.52 before going of Public Health in Thailand to snipping it from Neutral to Sell. to press, close to a 12-month high. They have look at ending animal testing Coty has a number of power brands, including dipped as low as $15.1 in the last year. for cosmetics in the country. Calvin Klein, Adidas and Marc Jacobs. However, Read more at cosmeticsbusiness.com The government is now reviewing the availability of local laboratories and decision BRAZILIAN COSMETICS MARKET makers with regard to options BENDS UNDER PRESSURE for non-animal safety testing for cosmetics. Despite considerable currency volatility and multiple pressures on consumers, the Brazilian Avery Dennison has filed a cosmetics market surged 11% last year according lawsuit in Germany against to new stats from the Brazilian Association of the UPM Raflatac, saying that Cosmetic, Toiletry and Fragrance Industry Raflex MDO infringes the (ABIHPEC), with sales surging to b29.6bn. patent for its pressure Both Unilever and P&G – which have been sensitive film product Global busy streamlining their brand line – are MDO. Avery Dennison is asking the court to prevent ploughing into these markets, although Unilever Affiliates of specialty chemical company UPM Raflatac from reports in euros rather than dollars, giving it INOLEX have signed an agreement to manufacturing, marketing better protection currently (the strong dollar is acquire ieS LABO, a manufacturer of high or selling Raflex MDO hurting the profitability of many US companies). quality natural and organic plant and herbal without a licence. The depreciating euro gives Unilever the edge: extracts for the . in the first quarter of 2015: the US dollar was up INOLEX, a US-based company, is a major Sales of and face 20% against the euro while the Brazilian real player in the green chemistry industry, masks in the UK reported turning natural vegetable materials into climbed 5%. Western multinationals do not have double digit growth in 2014, cosmetic ingredients. according to The NPD Group. the same grip in markets like Brazil that they have It is expected that INOLEX and ieS LABO, The observation is said to at home, and hiking prices against weakening which hails from Oraison, France, will reflect “a wider trend in the domestic currencies is a tough balancing act. combine their expertise to bring innovative market for consumers to seek Brazilian direct sellers Natura Brasil and new natural ingredients to market over a healthy, natural glow, often Boticário also remain popular. the coming months. cited as ageless beauty”. Meanwhile, Brazil’s own economy is in rough David Plimpton, CEO of INOLEX, said: Cleansers grew by 13.9% shape: GDP is expected to contract in 2015 and “The leadership of ieS LABO, Pierre in 2014 to £58.6m, while masks Cappanera and Maria-Paz Zuniga, have inflation is on the up. On the retail front, Mintel grew 11.2% to £6.5m. built a wonderful business focusing on claims Brazil’s sun care market is increasingly the demands for health and wellness in Cosmoprof North America important and likely to grow 14% this year. the cosmetic market. Their products and has announced plans “Women aged 24-35 are savvier about sun philosophy are an ideal match for INOLEX. to launch its first ever protection with 66% using sunscreen in the last We are excited to help ieS LABO expand multicultural programme for six months,” said Mintel. its presence, and to collaborate on its 2015 edition, due to be Male usage gradually decreases with age, with new technologies.” held on 12-15 July in Las younger men (16-24 years) appearing the highest ieS LABO was founded in 1986 and is Vegas, US. It is said the based in Provence. It is organic certified by users at 51%, it added. “To encourage use for programme, Tones of Beauty, Ecocert France as well as by the National will showcase a group of the older age groups, brands could create ad Organic Program (USA), NATRUE multicultural brands across campaigns aimed specifically at men and (Germany) and COSMOS (Europe). different beauty categories. easy-to-apply products (eg spray on).” Read more at cosmeticsbusiness.com

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trends

MARKET REPORT PREVIEW

FRAGRANCE MARKET ATTRACTS FRESH GROWTH

This week’s Trends page previews the May isssue of Cosmetics Business Markets, which focuses on women’s fragrances. SCENTS OF PURPOSE Women are more facially attractive when they wear pleasant Brazilian women not only use the most fragrance but also apply it to perfume, according to a study conducted by Monell Chemical more body parts than women elsewhere, spritzing scent on their Senses Center last year, and the latest figures would certainly reflect neck, wrists and behind the ears the continued, global popularity of fragrance among women. The global women’s fragrance market was worth a combined US$29.67bn in 2014, according to Statistica, increasing by 6.6% 68 compared with 2013, with premium women’s fragrances accounting 58 49 30 66 for the largest proportion, $16,517.4m. 49 61 Brazil is currently the world’s leading fragrance market. According 42 39 to Canadean, Brazilians use, on average, three times more fragrance 73 57 69 67 by volume than US consumers, the next most valuable market, while 50 52 26 44 90% own fragrance and 84% wear it regularly, according to Mintel. 51 The market has certainly boomed over the past five years, as João

Carlos Basilio, President of ABIHPEC, the Brazilian Association of 81 86 74 81 71 79 Toiletries, Perfumes and Cosmetics, said: “From 2009 to 2014 the 70 67 71 consumption of fragrances doubled in size.” Other Latin American and Asian markets have also registered high Total France Germany GB Russia Brazil CAGRs over the past five years, while Canadean predicts that , Peru and the UAE will be among the fastest growing markets to Behind my ears Wrists Neck 2018. Meanwhile in Europe, has been quietly booming % Penetration (women) – the country’s fragrance category grew by 11.7% between 2013 and 2014 to $158.02m, according to Canadean. Source: Kantar Worldpanel

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NEWS IN BRIEF

Organic beauty brand Michael Todd is launching into Ulta Beauty stores across the US and online at Ulta.com from 19 April. The launch will include beauty tools like the Soniclear antimicrobial sonic skin cleansing system and the Eye Eraser hydrating serum infuser, and a range of skin care products.

British cosmetics brand is to open its 31st store in California. The 1,220sqft store in San Luis Obispo is expected to open in the first week of May. “We are fortunate to have very loyal customers across California and we’re delighted to be bringing a new store At the beginning of May, Franco-Korean beauty brand Erborian to the area,” said Alyssa Gates, will open its first ever bricks-and-mortar shop at 45 Avenue de Lush Cosmetics Director of l’Opéra in Paris. US Real Estate. The shop will cover 75sqm on three levels and is meant to embody the “story of a French woman who goes to Korea and Avery Perfume Gallery brings Korean beauty treasures back with her to her Paris opened in London’s Fortnum apartment,” said Katalin Berenyi, Co-Founder of Erborian. & Mason on 16 April. The The shop will stock all of Erborian’s 40 products – soon to opening formed part of the expand to 50 – and will feature mouldings and parquet floors, store’s new beauty launch: alongside furniture referencing the traditional Korean herbal London’s Finest Curation medicine on which the brand is based. It will also offer a ‘BB bar’ of Fragrance and Beauty. based around facial make-up, particularly the company’s Ginseng BB Cream. The second floor gallery The location has been noted by Paris commentators because it is a main artery that is busy with space will feature the five- foreign tourists and is close to the Japanese enclave of Rue Saint-Anne. In its l’Opéra location, perfume Avery Fragrance Erborian will also be close to another Korean skin care brand, Herborist, which is set to open Collection, as well as other its first European outlet in mid-April at number 38 in the same avenue. brands Boadicea the The Herborist store will cover 102sqm on three levels. It will include: a 32sqm ground floor Victorious, soOud, Be selling Herborist cosmetics; a 33sqm first floor with a relaxation area and tea room; and Profumo and L-Automobili a 28sqm spa area, offering massages using Herborist products. Lamborghini.

Revlon is taking its Love Is On beauty movement L’ETOILE ADDS TO RUSSIAN Dabbs moves into Liberty to select cities across the US OUTLETS AND SLASHES PRICES with a series of pop-up shops. L’Etoile, Russia’s leading beauty retailer, plans to Foot specialist Margaret Dabbs is to relaunch her Starting in Dallas on 3-5 April and Atlanta on 10-12 April, open up to new 100 stores in Russia this year, Sole Spa at Liberty in London later this month. the mobile beauty shop will also according to Tatiana Volodina, CEO of Alcor & The brand will offer an extensive range of visit New York, Boston and Co, L’Etoile’s management company. treatments, including corporate ‘sole searching’ Minneapolis before finishing At present the company operates more than days. Founder Dabbs said: “We closed the Sole in Chicago on 10-12 July. 900 stores in 200 cities in Russia. By the end of Spa for refurbishment and to increase the space 2015 this figure will exceed 1,000 outlets. we have available to do treatments to meet India-based premium hair In addition, L’Etoile has decided to reduce demand. We will now be able to offer all of the extensions brand Indique prices for its cheap and mid-priced range (up to services available at our flagship clinic in Hair has opened its 14th boutique in the US, and its 1,000 rubles or US$23) by 25-60%. According to Marylebone, including medical and 15th worldwide, in Miami, Volodina, this will affect about a third of the , which are massively on the increase.” Florida. “We’ve had loyal company’s range. Mikhail Sklyarov, L’Etoile’s The spa is designed with a mix of visibility and customers in South Florida Financial Director, believes the price cuts will non-visibility, allowing clients privacy or for years,” said Co-Founder increase consumer traffic by at least 30% and interactivity. Dabbs said: “We have a combination and Creative Director Ericka keep the operating profit on par with 2014. of private treatment rooms for foot health or Dotson. “We’re excited to Russian Ministry of Industry and Trade Analysts podiatry treatments and then a more social space service the diversity of believe price cuts may bring significant benefits for our cosmetic medical manicures and African-American, Caribbean and Latina women here and for L’Etoile, drawing in consumers from other pedicures. Shoppers can walk past and see us, give them the full brand and channels such as drogeries and hypermarkets, but we have moved our treatment space back to store experience.” which have seen growth in cosmetics sales. give more privacy.” Read more at cosmeticsbusiness.com Read more at cosmeticsbusiness.com

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expert advice AN EYE FOR INNOVATION Nina Leykind, Co-Founder and Creative Director of Eyeko, discusses why innovation is key to the brand’s new Bespoke Mascara Service

How important is innovation and personalisation to Eyeko? Brands that have We have always championed longevity“ appear to be innovation and design since those that are true to we launched Eyeko over 15 their USP, providing years ago. In fact we’ve often a point of difference in been too ahead of our time, so “ it’s great to capitalise on the zeitgeist mood for a crowded marketplace personal service, bespoke products and as opposed to being a connecting with consumers to create an open ‘me-too’ brand dialogue that informs the end product. Nina Leykind, Co-Founder and Creative Director, Eyeko formulas before deciding on the combination, What research and development was behind culminating in a custom-made mascara presented your innovative Bespoke Mascara Service? in couture monogrammed packaging. As an eye make-up brand, our focus and mission has always been to create the perfect mascara. How did you decide where to base the service? Over 15 years of research has seen us reinvent We’ve always had a close relationship with mascara with our unique zero-waste squeezy Harvey Nichols. Group Beauty Buying Director tubes to ensure your mascara never dries out, Daniela Rinaldi was the first to introduce Eyeko along with hand-finished bristle brushes and into her stores, so it was a natural home for our conditioning formulas featuring multiple first counter and the Bespoke Mascara Service. botanical benefits. We believe that there isn’t a ‘one size fits all’ approach to mascara and even Do you plan to build on the service? coined the term ‘mascara wardrobing’ to describe We have a number of new launches created how using more then one mascara allows you specifically in conjunction with our Bespoke to create an ideal lash look to suit not only your Mascara: for instance our Black Magic Lash lashes, but your style. Our new Bespoke Mascara Boost – brush-on extensions designed to Service offers the ultimate fulfilment of having maximise mascara for a dramatic lash look or to the perfect mascara custom-made for your eyes. act as as a quick, natural alternative to false lashes.

How is the product actually personalised? Where does Eyeko look for inspiration? There are 100 variants to choose from to create a As a London brand we are at the epicentre of art, bespoke product. The process starts with an open culture, fashion and music, which is an endless dialogue between the consumer and our Mascara source of inspiration along with our continual Editor to choose a number of brushes and travels across the globe from Asia to North America, Brazil to Europe. We are also continually engaged with our consumers via social media and in-store, which allows us to > innovate and improve from product feedback. 1m Two of our new launches are entrenched in More than one million Black Magic Mascaras fashions, with a 70s mood and a nod to rock’n’roll have been sold, making it the brand’s top seller that has inspired our latest Rock Out & Lash Out Mascara and Beatnik Black Double-Ended Eyeliner (pictured left), made for rock chic eyes. Top 5 So, how should brands stand out? Eyeko is listed in the top five bestselling mascara and liner brands in Space NK and ASOS Brands that have longevity appear to be those that are true to their own USP, providing a point of difference in a crowded marketplace as opposed to being a ‘me-too’ brand. Brands should No1 find their niche and focus on making the best Eyeko is the number one selling mascara and products possible, as ultimately, it’s all about liner brand in Selfridges Beauty Workshop the end product. Source:Eyeko Read more at cosmeticsbusiness.com

20 April 2015 cosmetics business news 7 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. digital

NEWS IN BRIEF SCHICK AND SKINTIMATE ROCK AND ROLL ncouraging women to enjoy ‘rocking their The music video uses the tagline, ‘Ready, UK supermarket retailer Tesco is partnering with UK legs’, Energizer brands Schick and Shave, Shine’ and aims to promote hair removal cosmetics brand Rimmel ESkintimate have teamed up with actress as part of a beauty ritual. Charlie King, Director to deliver free online beauty Brittany Snow and the upcoming movie Pitch of Schick and Skintimate brands at Energizer tutorials. The one-to-one Perfect 2 to launch a campaign. Personal Care, said: “Pitch Perfect 2 doesn’t tutorials will teach The campaign features a music just highlight great legs, it showcases the customers how to recreate video made with the help of great work that comes when women the hottest make-up trends Director and Choreographer work together.” He added: “We are of the season using key Adam Shankman, who has thrilled to partner Universal products from the Rimmel famously worked on Rock of Ages collection. Tesco has chosen Pictures’ Pitch Perfect 2 to celebrate four looks that customers and Hairspray, and his production the steps women take each day to frequently ask for and company, Independent Media, rock their legs with confidence and is offering weekly sessions as well as Cinematographer Mauro beauty.” from 10 April to 1 May. Fiore. Camilla Medeiros, Senior Brand In addition to the music video, Manager, Women’s Shave at PCA SKIN, a leader which is available to view on Energizer Personal Care, said: in professional skin health, has YouTube, the campaign also “Legs deserve to be treated with the launched a website that aims features limited edition product same care as a woman’s face... The to educate consumers about their skin health. Features in-store, an Aca-battle sweepstake, core of the Rock Your Legs of the new site include a skin a movie trivia game and in-film campaign is about introducing education portal, online skin product placement. women to a personalised three-step consultations, before and after The campaign supports the leg care ritual.” photos, an online shop to buy launch of the new Schick Hydro Read more at the brand’s products and Silk TrimStyle product launch. cosmeticsbusiness.com a PCA practitioner locater.

Men’s skin care brand Homme Top performing beauty is encouraging consumers to take care of the ocean adverts revealed in US by sponsoring a team , Herbal Essences and Always produced of scientists and athletes some of the top-performing US television and that set sail from video advertisements in the first quarter of 2015, Guadeloupe to Marseille according to analysis from Ace Metrix, a TV and on 8 April. The 72-day video advertising analytics company. adventure saw the team split their time between surfing, The company awarded advertisements an Ad cleaning beaches and of the Quarter title, with each having earned the collecting samples from the highest Ace Score within their category. The Atlantic ‘garbage patch’. winners were ranked based on the scorings of They used the hashtag a panel of at least 500 consumers. #careforthewave. Among the top scores in the personal care category were Almay’s advert featuring Carrie Estée Lauder saw the launch Most loyalty programmes continue Underwood, which gained an Ace Score of 562, of its digital flagship The Estée to reward consumers only for purchases Edit on 8 April. It launched with and are neglecting digital opportunities 12.9% above the category average. a video starring Danielle to engage them, according to Capgemini Herbal Essences received a score of 573 for its Copperman, Founder of Qnola, Consulting. The company said, however, Rejuvenate Every Hair advert, while Always a product line based around that ’s Beauty Insider loyalty pulled in a scored of 636, 15.3% above the programme is an exception. a sugar-free, paleo, vegan, category’s average, for its Super Bowl advert wheat and gluten-free diet. Assessing loyalty programmes on factors such as their ability to provide a seamless #LikeAGirl. The site also features make-up Meanwhile, Dove’s advert One Positive Tweet inspiration and street style experience across channels, the company to Start a Trend earned an Ace Score of 652, photos, as well as an interview found that 97% of companies use only with the brand’s newest transactional rewards, ie customers make 26.3% above the average and one of the highest faces, Kendall Jenner and a purchase and take their points in recorded in the quarter. Gabriella Wilde. exchange for gifts, merchandise or cash. Ace Scores are based on various creative Sephora, however, is using technology attributes, including persuasion, likeability, to deliver a superior customer experience. The results of the 2015 information, attention, change, relevance, desire Shopper Barometer showed “Members of Sephora’s loyalty programme can sync their loyalty accounts with and watchability. that 44% of British shoppers For Dove’s advert, high likeability scores now follow brands on social Sephora’s mobile app as well as the Apple are said to have driven the advert’s high ranking media in the hope to receive Passbook mobile wallet,” said Capgemini. discounts and rewards for Sephora’s Passbook users have double overall. The advert illustrated the domino their loyalty. More than 1,200 the annual spends and purchase twice as effect of negativity in beauty and body image consumers were surveyed. often as the average Sephora customer. speech. Read more at cosmeticsbusiness.com

20 April 2015 cosmetics business news 8 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission.

innovation

AROMATHERAPY KIT BRINGS SUPPLIERS NEWS

SPA EXPERIENCE HOME SPICK AND SPAN ssio has introduced a patented aromatherapy shower system, Nail care brand OPI has given aiming to bring the spa experience to bathrooms in the US. its Correct & Clean Up refillable EThe system uses disposable pods to slowly release a variety corrector pen a makeover. The of essential oils into the shower water, creating aromatic effects packaging, which is created by in six blends: Passion, Breathe, Unwind, Night, Wisdom and Clear. OPI, now features Aimed at essential oil users, the pods are easy to use and allow purple and white users to regulate the aroma intensity. The company has reported sides with outlined a positive response so far, noting that the product stands out due drawings of the designs of the products – for to a lack of direct competitors: “Many people are searching for product inside as instance, the eyeshadow duos alternative forms of wellness and the approach of essential oils well as demo feature packaging with stripes definitely satisfies that desire – it’s a growing trend. Having just images. The pen on one half of the lid and polka been featured on Good Morning America, there’s a huge interest is designed to dots on the other. “For summer, in our unique product,” said Peter Friis, Co-Founder of Essio, remove excess we were looking for a fresh, which only uses 100% USDA-certified organic essential oils. lacquer when pop and coloured He added: “The way our product stands out against the bath painting nails, collaboration,” Sephora bombs and diffusers while in the shower, and other forms while conditioning merchants told CBN. “Craig & of aromatherapy, is the convenience factor. Everybody showers, but cuticles. Karl are two unique and very not everybody has the the time to take a daily bath. Ours talented designers that truly is something that can be used daily, within the routine of starting SCALING DOWN share our brand image and the day or winding down at the end of a long day. As the economy M&H Plastics has launched brand values.” slowly rights itself, more discretionary income is available. While a new addition to its tubular people cannot afford to go to the spa and spend $200-$300, they Foamers range. Currently the SAMPLING CONVENIENCE can economically enjoy Essio, be it daily, weekly or at weekends.” collection includes tubular Qosmedix has brought out foamers in 150ml to 250ml, a new collection of sampling but now M&H is bringing out a jars. Each layer pack contains smaller 50ml version. The new 50 assembled jars and 50 addition is said to be an ideal writeable labels. Meanwhile, in volume for specialist products, the 3g and 5g polystyrene jars travel and sampling. It is there is a choice of clear, white available in PET (4284) and or black caps. Each pack HDPE/PP (5867). includes a sheet of white, Read more at round writeable labels. cosmeticsbusiness.com Read more at WATER-BASED NAIL VARNISHES FOR cosmeticsbusiness.com CHILDREN GAIN POPULARITY IN FRANCE Water-based nail varnishes for children are becoming a trend in MAKING MAGIC France, with several brands launching in the country recently, RPC Bramlage has designed according to industry monitor Observatoire des Cosmétiques. a new applicator for its Magic The new brands conform to European regulations, consisting of Star range of dispensers, 60-70% water, with other ingredients including styrene/acrylates created to enable creams and copolymer, which forms a film on the nails, along with solvents to be applied straight such as PPG-3 Methyl ether or PPG-2 Methyl ether, and traces of onto the skin from the tube. other ingredients such as the preservative phenoxyethanol, The bi-injection moulded silicones, clays such as bentonite and pigments. actuator is compatible with They contain no suspect chemicals such as formaldehyde, BRIGHTENING UP the standard Magic Star pump toluene, UV filters or acetone, and most of the formulations can be For spring, Sephora has head and can be used on all removed with soap and water. teamed up with illustrators and size containers. It also features The latest brand to enter the market is eco-friendly children’s graphic artists Craig & Karl, a nubbed surface to create make-up brand Namaki. Founded by a former employee of who have designed a range of a massaging sensation when Naturecos, this month it is introducing a range of eight nail colourful packaging for used on the skin. varnishes in colours such as pink, blue and violet. Sephora bath and make-up Maman va être Jalouse (‘Mum Will Be Jealous’), founded by a products. Craig Redman and former Head of Make-Up at , offers Karl Maier are based in New four nail varnishes. York and London respectively Meanwhile, Nailmatic Kid but work together on projects (pictured), which offers 11 and are known for their quirky shades, sells mainly via its 130 and brightly coloured designs. vending machines in stores in They have chosen to play up France. Read more at their relationship with the cosmeticsbusiness.com

20 April 2015 cosmetics business news 9 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission.

brands

NEW PRODUCTS

1 TERRY DE GUNZBURG has features ingredients including contains notes of pomarose, perfume and candle form (£49- rolled out two new scents oat kernel, olive seed, shea nutmeg, cinnamon, rare woods, £87) and was designed to following the launch of Terryfic butter and a blend of eight velvet suede, grapefruit, capture the vibrant colours and Oud in 2013. The duo includes essential oils. The kernels and cardamom, violet leaves, scents of the island. The scent Terryfic Oud L’Eau (£135) and olive seed granules help to patchouli and tonka bean. The has notes of mandarin, Terryfic Oud Extrême (£320). remove any dead cells while bottle has also been given a osmanthus and white musks as The former contains citrus notes, promoting new cell growth, makeover; it is now lacquered in well as tea absolute. The edt is said to be reminiscent of the according to the brand. Bulldog metal and said to be inspired by presented in feminine and Mediterranean, delivering “fierce said it is “proud” to have never the Meisterstück Solitaire Doué masculine bottles, while the 210g freshness” as well as touches used microbeads in any of its Stainless Steel Classique – a candle is a limited edition and is of lavender, rose, cumin, saffron products and hopes that its new writing instrument made in resin presented in a biscuit jar with a and cedar. Meanwhile, the latter sku will encourage other big and silver. soft matte layer stamped with the is described as “even more brands to explore natural Launch: February Annick Goutal monogram. alluringly sibylline and alternatives to plastic. Read more at Launch: out now provocative, more voluptuous Launch: out now cosmeticsbusiness.com and imperial” than the original. 8 has brought Launch: out now 4 GC AESTHETICS has made 6 JO MALONE has launched out a new designed its Silgel product available direct three new limited edition floral to hide imperfections and create 2 SANCTUARY SPA is due to the consumer for the first time. scents for the spring season. The a ‘flawless canvas’. Laura to unveil two new body care The scar management product fragrances (£86 each) make up Mercier Silk Crème Moisturizing offerings. Air-Whipped Soufflé (£35.99) is a clear, non-sticky the Blue Skies & Blossoms (£35) joins the original Silk Bodycare is described as a pure silicone gel that is said to collection. The first, Sakura Crème Oil Free foundation. The ‘decadent dessert for your body’ be proven to be effective in Cherry Blossom, is said to be a new product is said to build on and comprises Air-Whipped treating both new and existing delicate floral scent with notes of the original, described as ideal Soufflé Scrub, Creme Soufflé red and raised scars by reducing rose and bergamot. The second for use on photoshoots, by and Shower Soufflé (£7-£10.50). and flattening them. The global is Osmanthus Blossom and has providing extra moisturisation. The second collection is called scar treatment market was peach notes layered with Launch: out now Cooling Sorbet Bodycare, which valued at $15bn in 2014, and is petitgrain. Finally, the third, Plum Read more at includes Cooling Body Sorbet, expected to grow at a rate of Blossom, features notes of cosmeticsbusiness.com Shower Drench and Glacial 10% through to 2019 to reach yellow plum. Scrub (£7-£8). It is said to be $24bn, according to Technavio. Launch: out now refreshing to use and an ideal Launch: out now ‘wake-me-up’ range. 7 ANNICK GOUTAL has taken Launch: May 5 MONT BLANC has debuted inspiration from the volcanic Read more at Emblem Intense (£44.50), a island Jeju, off the coast of cosmeticsbusiness.com flanker to its predecessor Korea, for its latest fragrance. Emblem. The men’s scent L’Ile Au Thé is available in 3 BULLDOG has unveiled a new face scrub for men. Bulldog Original Face Scrub (£4.99)

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20 April 2015 cosmetics business news 10 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission.

people

Featuring in a new campaign for KENNETH COLE’s latest fragrance MANKIND Ultimate is Iraq war veteran, double amputee, personal trainer and motivational speaker NOAH GALLOWAY. Cole is said to have been inspired by Galloway’s story when they met through the brand’s partnership with the Men’s Health Ultimate Guy Search in 2014. Cole said: “Noah is a true representation of the modern man. He is a remarkable guy with an inspiring story. I believe people will be drawn to and inspired by him, in the same way we were.” Meanwhile, Galloway added: “It’s truly an honour to get to work with Kenneth Cole and I couldn’t be happier with how the whole campaign came together. The entire experience has been incredible and I’m so grateful for the opportunities that MANKIND has brought me.” The scent contains notes of citrus accord, cashmere woods and oak moss. Read more at cosmeticsbusiness.com

THE LATEST APPOINTMENTS

DAVID PRITCHETT has been appointed THE PERFUME SOCIETY has appointed LONZA GROUP has announced the President of RIEKE. He replaces LYNN INES SOCARRAS as Head of Marketing, re-election of ROLF SOIRON BROOKS who has retired after 18 years PR and Business Development. Socarras as Chairperson of its Board of Directors for but will continue to act as an adviser to the has ten years of experience in the luxury a further term of one year. There were also company. Pritchett joined Rieke in 1996 as beauty industry, most recently as PR eight other board members re-elected at Business Development Director and has Manager of Kenneth Green Associates. Her Lonza’s AGM, held on 8 April. held positions including Vice President of other roles include working for the PR arm Read more at cosmeticsbusiness.com the Dispensing Group and Vice President of the consumer division of Grey of Corporate Development within the Communications and working for Parfums has announced that its Global company. Christian Dior at LVMH. Artistic Director GUCCI WESTMAN is stepping down after seven years in the UNIGEN has appointed REGAN MILES Skin care brand CLOUD 9 SOLUTIONS position. “Gucci has left a lasting as President and CEO. Miles previously has partnered with skin expert TERESA impression on our brand that will not be served as the company’s President from TARMEY for a series of bespoke face and soon forgotten,” Martine Williamson, 2002 to 2007 during which time, the body treatments to prepare skin for the Revlon’s SVP of Global Marketing said in a company said, he grew the business from a summer, in addition to developing a ‘skin statement to CBN. “We wish her all the new R&D company to a profitable patented saviour’ travel programme. Tarmey will also best going forward in her exciting and ingredient supplier, launching ten answer skin care questions on Cloud 9’s colourful career.” proprietary branded ingredients. social media platforms. Read more at cosmeticsbusiness.com

20 April 2015 cosmetics business news 11 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission.

the final word

HOW CAN I PROTECT MY Q WEBSITE FROM FRAUD? Select a domain name wisely and know your options when taking action, says Nick Wenban-Smith, Senior Legal Counsel at Nominet

Nominet’s last six- A strong brand

month report showed identity is key. The more A 846 .uk domains “ “ suspended for the supply of effort a company makes counterfeit goods and/or fraud. to enhance it, the easier Cases of fraud violate the terms it is to protect Be aware of what’s at stake and conditions of domain Nick Wenban-Smith, Senior Legal Counterfeiters reap small fortunes from registration, which prohibit criminal activity. Counsel, Nominet knowingly misleading customers. One of the Websites selling counterfeit goods can not only main dangers for brands is when a fraudster be dangerous for a brand’s image but also for the registers web domains using a brand’s name consumers purchasing the products. For example, to sell fake products – which can then, of course, there have been cases of fake GHD hair have a damaging impact on a consumer’s straighteners sold online causing customers perception of the brand. serious burns. This is why it’s so important for A brand name is a signal of a brand’s values, consumers to check who they are buying from and proof of quality for its products and services. and do the due diligence if they are not sure If a fraudster is taking advantage of your brand whether a site is genuine or not. and selling lower quality products in your name, it not only undermines the brand but can also Beware of domain name traps cause real injury to consumers – as well as injury I’d recommend thinking very carefully when to their wallets. Online monitoring is vital for choosing a new brand name and always carry out brands, who must keep an eye out for this sort plenty of due diligence. Identifying a distinctive of thing and immediately report any suspected and effective online identity while avoiding legal fraudulent activity using their name to the problems is more effective and less stressful than appropriate authorities. managing costly disputes. A strong brand identity First and foremost: brands should pay careful is key and the more effort a company makes attention to the monitoring of their brand name to enhance it, the easier it is to protect. online. There are specialist companies that can Once selected, always trademark your brand do this or it’s also possible to simply monitor name in your key markets: this makes it easier search engine rankings and keep an eye on any to resolve any disputes, should they arise. What to do as a complaints or social media postings. If and when Where in the past, brand owners might have they encounter counterfeiting activity, they defensively registered their key trademarks and victim of fraud... should report the site to the relevant law obvious alternatives and mis-spellings across all enforcement authority, starting with the police. Gather evidence – take top level domains (.com, .co.uk), thanks to the screenshots, contact advent of hundreds of new top level domains in 1 info, URLs etc. that Report suspicious activity the last year (including .shop, .wales, .london) demonstrate your claim If Nominet is advised that criminal activity is this is not a viable option for most but the taking place on a .uk website by a legitimate largest multinationals any more. law enforcement authority, we will suspend Instead, brands can register their trademarks Contact the registrar of the domain. Nominet does not permit criminal with ICANN’s Trademark Clearinghouse. This 2 the website, who may activity on .uk domains but has no role in will not lock registration of the brand’s mark by take immediate action policing that activity – just in enforcing it if third parties, but will give early warning in the needed. However, in most cases, if criminal event that a registration is made in one of the new activity is taking place on a website that is Contact law enforcement TLDs, which exactly match your trademark. registered or hosted in the UK, the internet with all your evidence. One of the most common tactics employed A good place to start community or the police will flag it to the web by criminals is to mis-spell a brand name to trick 3 is the National Trading host or site registrar, ie the company that consumers into thinking they’re on a legitimate Standards eCrime team registered the domain from Nominet, who may brand’s web page. Fraudsters will also use choose to take more summary action, with or variations on a brand’s real domain name adding without the intervention of law enforcement. Don’t panic – if someone hyphens, numbers or extra words that will look registers a .uk domain genuine to those unfamiliar with the real using your brand name, Submit your questions for the next web domain. For example PayPa1.com and 4 the dispute resolution The Final Word column by tweeting paypal.com look very similar in most browser process should be simple Cosmetics Business @cb_beautynews bars. Fraudsters also use increasingly sophisticated using #TheFinalWord websites that mirror the look and feel of the For more of Nick’s tips, visit original site with an uncanny degree of accuracy. cosmeticsbusiness.com

20 April 2015 cosmetics business news 12