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Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. Business Retail Innovation Brands Concern for PZ He-Shi adds new Marionnaud chooses Cussons in Nigeria retailers Albéa takes green tea page 2 page 6 page 9 page 10

cosmeticsbusiness.com .com/cb_beautynews 6 April 2015 NEWS Issue 12 Kat Von D responds to Underage criticism

Kat Von D, US TV personality, tattoo artist and founder of the eponymous colour line, has come under fire from beauty consumers and the media alike for the name of a shade in her line - Underage Red. It is a colour option of Everlasting Liquid and Studded Kiss Lipstick. Von D, along with retailer which exclusively carries the products, has been the subject of intense criticism after writer and Twitter user Parker Molloy (@ParkerMolloy) brought the shade name to light, tweeting a picture from a shopping trip. Critics claimed that the name promoted the sexualisation of young teenagers and was even glamorising and advocating CLEAN & CLEAR FEATURES underage sex, suggesting that the lipstick and lipgloss be pulled from TRANSGENDER TEEN IN CAMPAIGN the line, or that Sephora drop Von The skin care brand chose transgender teen Jazz Jennings to feature in its D’s range all together. #SeeTheRealMe campaign, celebrating unique qualities of each subject Von D responded with a lengthy message on her official Facebook n an attempt to promote and normalise not targeted at LGBTQ (lesbian, gay, bisexual, page, branding the claims “wild transgender values, teen skin care brand Clean trans, or questioning) youth, but rather all teens and horrific accusations”, and I& Clear has featured 14 year old transgender who are going through difficult moments in their stating: “I am the one responsible activist, vlogger and author, Jazz Jennings in an lives. Her video is part of the much larger, for naming every single shade, so I instalment of its #SeeTheRealMe campaign. overarching campaign and brand mission to don't see why anyone should aim US-born Jennings is one of the youngest inspire and help teen girls feel happy in their own any backlash towards such a great people ever to be diagnosed with gender skin.” company like Sephora, who dysphoria, a condition where a person ultimately has no creative input on experiences discomfort or distress because there The purpose is to provide teens “ such matters”, and “To me, is a mismatch between their biological sex and with a platform to showcase their Underage Red is feminine gender identity. She has recently published a “ rebellion...it has never been a goal book based on her experience of transitioning, real selves without being judged of mine to inspire sexualisation of called I Am Jazz. any sort, let alone promote a The Johnson & Johnson-owned brand saw Professional hair care brand Redken employed destructive lifestyle.” Jennings as the ideal representative for the transgender model Lea T to front its advertising MAC Cosmetics also has a campaign, which centres on personal videos campaign last year. “Rather than brands telling shade of its Lipglass named celebrating the unique qualities of each subject. the audience what is beautiful, they are listening Underage. Responding to Hadley Claire Domoney, Brand Manager of Clean & to the larger social media conversation where the Freeman, writing for , Clear UK & Ireland, commented on Jenning's audience is communicating their desire for Terry Barber, MAC’s Director of inclusion in the campaign: “The purpose of the realness and authenticity. The consumer is more Makeup Artistry, said: “Underage campaign is to empower teens by providing them empowered as they are the ones driving change,” is a gorgeous baby pink which with a platform to showcase their real selves said a brand representative. looks really youthful (hence the without the fear of being judged. Jazz’s story is Read more at cosmeticsbusiness.com name) if worn in the right way.”

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business

CHINESE MARKET CONTINUES GROWTH hina’s cosmetics market, the second largest Inneov, an oral medical cosmetic which was in the world behind only the US, with withdrawn from China in 2013, and in May of Cannual sales in the neighbourhood of 2014, Estée Lauder began to allow its products to NEWS ¥200bn, grew at a rate of 12.3% in 2014. This be sold on the T-mall e-commerce website, the marked its lowest growth since 2005. largest e-tailer in China for luxury goods. However, industry analysts expect the market Locally-owned companies are also helping to CONTENTS to continue to see steady growth in the future as grow the market: skin care company Marubi has second and third-tier cities in China push recently implemented strategic and construction Business: Major Coty investor sells $30m stake 4 demand upwards, possibly reaching a total of planning which could increase its capacity by ¥245bn in sales nationwide by 2017. 160%, while Shanghai Jahwa, one of China’s Trends: CBN gives an insight into Foreign-owned enterprises still comprise the major cosmetics companies, embarked on an hair care usage in Western Europe 5 majority of the Chinese market with over 80% of ambitious new building project of ¥1.3bn, which Retail: Benefit Cosmetics to open first all retail sales. In 2014, L’Oreal re-introduced will also help to expand its production. Canadian boutique 6

Expert Advice: QVC’s Kate James talks beauty buying 7 More concern for PZ Digital: La Roche-Posay shares SkinChecker film 8 Cussons in Nigeria There is concern for PZ Cussons' Nigeria Innovation: Tracy Doherty from MWV discusses packaging demands 9 business - the company saw nine month pre-tax profits slump more than 20%, though it would not Brands: Collistar teams up with confirm a figure, compared to the same time the Kartell for collection 10 previous year. People: Emilia Fox for Ladival 11 PZ Cussons - manufactuer of St Tropez, The Final Word: Gazelli’s Jamila Original Source and Carex - is not helped by the Askarova on wellbeing and beauty 12 volatility of the Nigerian currency or widespread CRODA CHIEF EXECUTIVE STEVE tension from Nigerian elections and terrorist News Editor Lucy Copp FOOTS SEES 2015 SALARY DIVE attacks from Boko Haram. Reporter Georgia Seago Croda Chief Executive Steve Foots last year saw One Nigerian business insider told CBN that, Freelance correspondents despite the Boko Haram worries, he was Sarah Cohen, Adrian Holliday, his full-year pay crack the £1.4m barrier. This Patricia Mansfield-Devine year however, Foots sees his total salary package optimistic about business prospects generally, Production Designer Ross Murdoch fall close to 45% to just under £770,000. not just for Manchester-based PZ Cussons: “You Art Editor Sibylla Duffy Croda claimed the difference in Foots’ salary need to remember that this is a story more about Digital Production Nita Salem was down to 2013’s package, which included “a the south and the west [of Nigeria] rather than the Editorial Director Erika Hatva long term incentive payment of £716,108”. Foots’ north [Boko Haram presence] which is where the Managing Director Colin Bailey-Wood base salary in 2014 increased from £535,000 to real population is. People broadly are buoyed up £600,000 while all other benefits were broadly about commercial prospects. There’s more HPCi Media Limited the same. spending and more forward planning generally.” Unit 1, Vogans Mill Wharf, 17 Mill Street, Corporate governance specialist Peter Walker He added that PZ Cussons had been clipped SE1 2BZ, UK +44 20 7193 1279 from Pielle Consulting said that the last 12 by local bank credit restraint from the Nigerian months have seen some moderation of UK Central Bank. Former Ebola worries are now Editorial +44 20 7193 9502 corporate pay, though hard-and-fast patterns are substantially under control. Operating profit for [email protected] yet to emerge: “What seems to be happening in the company overall saw revenues Subscriptions +44 20 7193 1279 order to provide a response against accusations of dip more than 10% to £386.7m for [email protected] super high pay, is that actual pay is being deferred last audited half- and put into the context of shares performance. year numbers, The argument, though simplistic, is binding while operating people to the business. If everything goes pear- profit slumped Subscription Details shaped, the shares, however they’re vested, can 4.4% to £46m. The subscription includes full digital access to the still be drawn down, even if someone is let go of The company cosmeticsbusiness.com website, for poor performance.” more broadly as well as the weekly Cosmetics Croda shares remain close to a 10-year high at received a Buy Business News and monthly 2,751p (before going to press). Recent sterling rating from Cosmetics Business Markets weakness may help profits further, making Canaccord print magazines. exports cheaper. Genuity in The High Pay Centre recently claimed pay for February with a ©HPCi Media Limited Britain’s top bosses hit almost £120m between new 403p share Articles published in this newsletter may only them. It also claimed a recent poll of 1,000 SME price target. be reproduced with permission. The publisher accepts no responsibility for any statements bosses found the majority agreed that executive Before going to made in signed contributions or in those pay eroded trust between big business press PZ Cussons reproduce from any other and the public. shares were selling source. HPCi ISSN 2057-1984 media Read more at cosmeticsbusiness.com at 342.30p.

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INTERPARFUMS TO ACQUIRE ROCHAS NEWS IN BRIEF nterparfums has entered into an agreement net sales of US$46m in the 2013/2014 financial Statistics released by eBay with Procter & Gamble to acquire the Rochas year, driven mainly by the Eau de Rochas Korea show that cosmetics Ibrand. The transaction will fragrance line. were the most commonly cover all brand names and Philippe Benacin, Chairman traded good in terms of both registered trademarks for and CEO of Interparfums, growth and sales revenue in Rochas, including Femme, commented: “For the first 2014. Cosmetics sales Madame and Eau de Rochas. time, this acquisition will expanded into such markets The deal will be payable in integrate both fragrances and as the Middle East and cash for US$108m and fashion. It will open up new South America beyond the typical Chinese and financed entirely through a opportunities in terms of Southeast Asian medium term loan. This creativity as well as aesthetic markets of previous years. transaction is expected to be design and marketing choices. completed within the first half It will also allow us to apply a has reached a of 2015, subject to closing global approach to managing a settlement with a former conditions. fragrance brand boasting very employee who claimed that the Interparfums is the fragrance high name recognition and company’s CEO made partner for fashion brands without time constraints. derogatory statements in the workplace. The settlement was including Jimmy Choo, Lanvin Finally, this acquisition has disclosed in papers filed in a and Balmain. generated enormous Manhattan federal court. Revlon Founded by Marcel Roches enthusiasm internally and high issued a statement that the in 1925, the Rochas brand motivation by all to re-establish lawsuit was “amicably resolved” began as a fashion house and Rochas’ position. Under with the former employee, Alan expanded into perfumery in the 1950s under Interparfums’ scope, we could generate Meyers. Helene Rochas' direction. The brand achieved approximately u25m in sales in 2016.” The NPD Group has reported that during the year ending February 2015, prestige FDA WARNS BEAUTY COMPANIES body and devices grew AGAINST MEDICAL CLAIMS in both dollars and units. The Food and Drug Administration is the US has Laser or light therapy warned beauty and personal care companies devices grew by over 90% in which make claims about their products that dollar sales after two straight classify them as drugs, not cosmetics. years of decline. Cleansing The FDA has issued warning letters citing drug devices, the largest part of the market, grew by 12%. claims associated with topical skin care, hair care, The skin care industry as a and eyelash/ preparations, noted on both whole grew by 2% during the product labelling and brand websites. same time period. Some examples of the drug claims cited are of products said to increase production of collagen A lawsuit has been filed in a federal court Personal care company Natura and elastin, resulting in skin that is firmer and in California by law firm Christiansen is the latest Brazilian firm to lay with fewer wrinkles. Others made promises to Davis LLC on behalf of multiple women off workers, saying that it was regenerate cells or boost the activity of genes, or from at least six US states who claim to letting around 70 employees go. The lay-offs represent just to treat medical conditions such as acne. have been injured by WEN hair care under 1% of the company's The letters state that the products are being products, which are marketed by Guthy- Renker. 7,000 employees in Brazil. After marketed with drug claims, indicating that they The women are seeking damages for years of near full employment, are ‘intended to treat or prevent disease, or personal injuries caused by the products. companies in Brazil are change the body’s structure or functions’. The The brand is presented by Chaz Dean, a beginning to fire workers as the agency has told companies that they need to ‘holistic’ Hollywood stylist, and the economy slows and consumer remove any such drug claims from product products are intended to repair damage confidence hits record lows, labelling or seek FDA approval to market the caused by daily styling. accoring to Reuters. products in question as drugs. The complaint alleges that advertising Global travel retailer Dufry “Consumers need to know that these drug for the products in infomercials, celebrity testimonials and print advertising has entered into a binding claims have not been proven to FDA when they encourages the use of large quantities by agreement with Edizione to are making a decision to purchase one of these saying that they are ‘gentle enough to use acquire its 50.1% stake in products,” said Linda Katz, Director of the FDA’s every day’ and that ‘you can never use too World Duty Free. Following Office of Cosmetics and Colors. She added: much! The more you use, the better the completion of the “These products must be evaluated by the FDA results’. transaction, Dufry will launch as drugs before the companies can make claims The complaint goes on to claim that a mandatory tender offer for the remaining 49.9% about changing the skin or treating disease.” using these products as advertised will in outstanding WDF shares. If the companies contacted fail to comply, the fact cause severe and possibly permanent damage to hair, including hair loss that The deal will enhance Dufry's FDA warns that it may take additional action can lead to bald spots. Read more position in the industry. beyond a warning letter, which could include at cosmeticsbusiness.com removal of a product from the market.

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NEWS IN BRIEF MAJOR COTY INVESTOR SELLS $30M STAKE major Coty shareholder has sold $30m Fragrances - it holds the fragrance license for Mktg Industry, an Italian worth of shares at almost $21 a share. The brands including Balenciaga, Chloé, David start-up company that is only eight months old, won the Asell-off was from one of Coty’s biggest Beckham, Jennifer Lopez and - award for best Eco-Design investors, Cosmetics B.V.Jab, part steered by remain hugely important for Coty, responsible Packaging at Cosmopack former Reckitt Benckiser CEO, Bart Becht. for more than 70% of the company’s operating 2015. The award was Cosmetics B.V.Jab still owns a large chunk of profits last year. However, analysts point to an presented to CEO Stefano Coty and remains the biggest controlling investor increasingly competitive market, putting pressure Focolari during an awards by some margin (it also remains a large investor on margins. ceremony at the in Reckitt Benckiser). The Coty cost-cutting will likely continue but International Buyer Lounge The sell-off appears not to have done damage organic growth remains tricky, despite its large at Cosmopack in Bologna. to Coty’s share price ($24.14 before going to stock of ‘power brands’ and strong management For the fifth year running, press), but the shares off-loading is close to the team, including widely admired Becht. Recent Giorgio Armani has launched top of the French company’s full-year sticker Coty revenues for the second quarter were valued the Acqua for Life campaign to price (in the last year Coty’s share price has at $1.26bn, slightly below estimates. support communities that are touched as low as $14.7). Read more at cosmeticsbusiness.com living in water poverty. The campaign, which was launched in 2011, is to support the COLOUR COSMETICS MARKET development of water systems in communities around the FLOURISHING, FINDS REPORT world that are deprived of safe The colour cosmetics market is projected to grow and sustainable water. The at a CAGR of 4% from 2014-2019, eventually campaign will sponsor new reaching US$47bn, according to market research developments in seven different firm MarketsandMarkets. nations. The report - Color Cosmetics Market by Target Market (Prestige Products and Mass Products), by The global demand for wipes Application (Nail Products, Lip Products, Eye Make- is expected to increase 5% annually to 2018, reaching up, Facial Make-up, Hair Color Products and Special US$13.5bn in worldwide Effect Products) and by Geography - Forecasts and sales, according to a new Trends to 2019 - splits the forecasts into two study from The Freedonia target markets, mass products and prestige Group. The increasing products, and also splits the markets into four demand for wipes will be different geographical regions, Asia Pacific, driven by both developed North America, Europe, and the rest of the and developing markets. Mintel has pinpointed seasonality as a key world. Sales in developed markets beauty trend, finding that the seasons are will increase to allow for Across the board, the market is flourishing as now defining beauty and personal care specialisation in the use of consumers continue to explore new looks and routines around the world. wipes, with application- manufacturers are producing more pleasing Rather than simply using the change of specific wipes and wipes formulas and textures to cater to rising demand. seasons as a reason to introduce colour that incorporate high-value The North American and European markets stories or scents, beauty manufacturers features. are increasingly introducing innovative are the largest for colour cosmetics, with the UK products that offer defence against the being the largest market within Europe, expected A new survey by Nielsen asked cosmetic and emotional effects of specific to itself grow by 20% over the forecast period. 1,000 consumers of varying weather conditions, Mintel’s research ages which beauty buzzwords The rise in disposable incomes in these developed found. Seasonal products accounted for are most important to them. Top regions coupled with new product launches in the as many as 11.1% of all beauty and of the list was animal welfare, colour cosmetics market has contributed to the personal care launches in 2014, up from with ‘cruelty-free’ and ‘not growth of the US and UK markets. 9.8% in 2011. What’s more, seasonal facial tested on animals’ listed as the The developing economies in the Asia Pacific skin care launches rose from 0.5% of global launches in 2009 to 1.2% in 2014, most important packaging region, with India and China at the forefront, and 30% of Brazilian hair care consumers claim in the survey at 57%, will lead to a projected high growth rate over the followed by SPF claims (56%) claimed they would pay more for products next five years, according to the report. Growth and ‘all natural’ at 53%. to protect their hair from sun damage. in the region is due to increasing consumer Jane Henderson, Global President of Ulta Director Robert incomes and a rise in awareness in the consumer Mintel’s Beauty and Personal Care Diromualdo has sold 7,000 market of personal care products. Other drivers Division, commented: “Consumers are shares of the company’s include new product innovation, technological becoming increasingly aware of - and stock. The stock was sold at advancements and a rise in demand for colour concerned about - how changes in the environment are affecting the condition of an average price of $153.98, cosmetics due to age-related ‘imperfections’. their skin and hair. Already, beauty for a total value of In 2013, the prestige product area showed very $1,077,860. The sale was manufacturers have started to go beyond strong growth as the consumer market moved disclosed in a document taking simple seasonal approaches filed with the SEC. At the away from the mass product area to the prestige geared to public holidays or gifting time of going to press Ulta market, due again to rising disposable incomes. occasions and instead are taking on the shares were at $152.45. This is a trend that the report expects to continue elements within their product innovation.” in the next five years.

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trends

INSIGHTS INTO HAIR CARE

Hair care continues to be a popular category across the whole of Western Europe, with consumers from France, Germany, Italy, Spain USAGE and the UK consistently stocking up on and conditioners, Users across all countries are concerned with hair damage, though as well as products that bring something new to the market. the key benefits consumers look for vary from country to country. According to data provider and analyst Kantar Worldpanel, hair Below are the most important benefits to consumers in each country care products were used by 75.9% of consumers in the 12 months ending December 2014. Within this, France led the way with 79.9% WESTERN EUROPE (TOTAL) ITALY penetration, while Italy was at the lower end, with 70.8% penetration ✔ Gentle on hair ✔ Adds shine among men and women. ✔ Nourishes ✔ Conditions Across all countries, it seems that consumers are concerned with ✔ Adds shine ✔ Gentle on hair hair damage and, as a result, are seeking out products that can deliver moisturising benefits. Notably, across the whole of Western Europe, the top three qualities that consumers consider as important when buying shampoo are: being gentle, nourishing and FRANCE SPAIN adding shine to hair. In Italy, the primary motivator is adding shine, ✔ Conditions ✔ Gentle on hair while in France and the UK, the factor considered most important is ✔ Adds shine ✔ Leaves hair soft and silky conditioning. In Germany, consumers prioritise nourishing benefits, ✔ Gentle on hair ✔ Controls dandruff while in Spain, they look out for products that are gentle on hair. Somewhat unexpectedly, when buying conditioners, the main motivator is moisturisation and nourishment. GERMANY GB Looking at colouring products, around half of women have ✔ Nourishes ✔ Conditions coloured their hair in the past six months, with Italians leading the ✔ Gentle on hair ✔ Gentle on hair way at 57.2% penetration in this sub-category. On the flipside, fewer ✔ Controls dandruff ✔ Controls dandruff women colour their hair in Germany with 48% penetration. Source: Kantar Worldpanel

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NEWS IN BRIEF

SheaCocoMango, a new online marketplace offering a range of natural beauty products from various brands, has debuted. Offering a range of items for the face, body and hair, SheaCocoMango aims to provide users with the highest quality products that contain ingredients such as shea butter, argan oil and avocado oil.

Online beauty retailer Escentual.com has come top of a list of fastest growing beauty retailers in the London Stock Exchange’s list of 1,000 Companies to Inspire Britain. Parent company RK Aggarwal French perfumery chain Marionnaud is expediting the roll-out of its was named in the report as the new-look stores, created by London-based design agency Wham. fastest growing company in the After trialling the look in the rue des Martyrs store in Paris, then beauty sector and had a in eight new stores opened in 2014 in the Île de France region, the turnover of over £14m in 2014. company is now aiming to convert 60 of its existing stores by the The LSE commended it for end of the year, plus opening another 20 stores with the new look. sustained revenue growth in the The new concept creates a ‘warm’ atmosphere, says the company, with natural wood and white past four years. tones inspired by minimalist architecture. Priority is given to customer service and several free services are being proposed as part of the package, including a ‘makeup flash’ space in the centre Organic tanning brand of each shop for quick makeovers, and the skin diagnostic service Ioma Link. TanOrganic is now available The roll-out will be deployed primarily in 150 stores that have not had a refit for more than six at Superdrug online, having years, at a proposed rate of 60 stores per year. The first two will be the store in the rue des Francs already secured listings with Bourgeois in Paris, and the recently relocated store in Chateauroux. Holland & Barrett, several “2015 is an extremely dynamic Marionnaud year full of opportunities,” said Eileen Yeo, Managing independent high-street Director of Marionnaud France. “This is an opportunity for redevelopment of the network around stores and other online relocations of dead spots, in order to get into new catchment areas. We want to offer customers a retailers including unique shopping experience with a warm ambience and on a human scale.” Debenhams, Feel Unique, Digital innovations such as Click & Collect, Store to Door, and Reserve and Collect are now at Naturismo and Amazon. the heart of the company’s customer strategy, said Yeo. “Our priority is to link digital innovation and TanOrganic has seen strong store offers, to provide a comprehensive shopping experience.” sales since launching in the UK in 2014. Product level marketing, data BENEFIT COSMETICS TO OPEN He-Shi adds new retailers quality and performance FIRST BOUTIQUE IN CANADA company Intelligent Reach has In May, LVMH-owned Benefit Cosmetics is Self-tanning brand He-Shi, owned by 4Beauty advised retailers to re-examine their online sales strategy in line opening its first boutique in Toronto, Canada. Group, has recently rolled-out into 370 Boots with the first day of spring. The freestanding store will be the first in the stores in the UK, and is this month also joining Consumers often view the start country, and will be located in Uptown Toronto on the beauty offering in high-street department of the new season as an Yonge Street. It will retail the brand’s products as store chain Debenhams. 4Beauty Group opportunity to purchase well as provide beauty services such as quick Managing Director, Nick McDowell, told CBN: summer items, so retailers must ‘make-uppers’, spray tanning, brow shaping and “Debenhams has the environment and staffing capitalise on sales opportunities tinting, and facial and body and . support that gives the consumer a consultant led by promoting new stock and The two-level, 1,500sqft retail space is purchasing experience; especially good for those maximising conversion rates, it said. surrounded by upscale stores such as yoga wear seeking something different or wanting to know brand LuluLemon. Construction is taking place more about what it is they’re buying into. Boots Italian pharmacy and now, with a grand opening set for May. on the other hand is a fantastic retailer for healthcare store Dr Fleming Benefit has freestanding boutiques across the offering unrivalled convenience in self-select has opened a 860sqft US, in the UK and Ireland and in several countries purchase on the high street”. location in Milan with a in Europe and Asia. In addition to the self-tan line up, Debenhams space-age theme designed The brand is currently stocked in other beauty will exclusively sell the brand’s new anti-ageing by interior designer retailers in Canada including Sephora and Overnight Ageless Tanning Balm for the face. In Alessandro Luciani. The concept store is a result of Shoppers Drug Mart. 2013, He-Shi became the top selling tanning the company rethinking its Benefit is slated to open more locations across brand in high-end department store Harvey conventional approach. Canada in the future. Read more at Nichols and has long held the number one cosmeticsbusiness.com position in its native Ireland.

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expert advice

ingredients, clever packaging and a truly interesting story. Another recent example is Eve THE BUSINESS Pearl, a US Emmy award-winning author and make-up artist. We launched Eve Pearl Cosmetics after discovering her at Cosmoprof in OF BUYING Italy last year. Eve attended our customer beauty event earlier this year and launched during an QVC has grown into a global, multi-channel beauty powerhouse. hour-long show on our Beauty Weekend Event - Kate James, Head of Beauty Buying at QVC UK, is at the centre. she sold out in 45 minutes. Can you explain your role? We educate our Why do you think beauty brands want to be I manage and develop a customer and bring a stocked on QVC? dynamic beauty team who buy “ We educate our customer and bring a product to for our multi-channel platform, product to life, raising life, raising brand awareness through stories that including approximately 25 brand awareness engage, inspire and explain why - or why not - hours of live TV a week. The through stories that customers might be interested in a product. team manages over 200 beauty engage, inspire and Stories that answer the real-life questions we all and personal care brands. have, but seldom have the opportunity to ask. explain why – or why What makes a beauty brand stand out to you? not – customers“ might How do you identify a gap in QVC beauty’s Most importantly the brand must have a be interested in a offering from a customer perspective? compelling story. We look for innovation and product We map out the brands in terms of price, market niche products. We like to discover new brands to and ingredient positioning to determine where Kate James, Head of Buying for market and tell their story, be it new ingredients Beauty, QVC UK we have gaps in our portfolio. or a new product innovation. Other key characteristics in a brand are to be demonstrable, How do you ensure your brands don’t problem solve, have limited distribution, and an cannibalise each other? element of exclusivity. Our customers are highly We are very protective of our portfolio of brands. educated in beauty products and are always Brands that are selected to come on QVC delighted when we bring our latest discoveries to become our brand partners, and we work them. together on strategies to build their brand on QVC. We ensure that brands don’t cannibalise Can you talk us through an example of a new each other through careful positioning and brand brand's journey with QVC? mapping. If we come across a brand we’d love to We recently launched a competition in stock but the category is already covered, we conjunction with CEW to launch a new beauty always review them at a later date with a view to brand on QVC. After an audition process, which launching, as long as they are positioned included being in front of the TV cameras, we differently to other brands within our portfolio. announced Soapsmith as our winner. The brand went on to exhibit at our beauty customer event How can you be sure a new brand will sell? in January, attended by over 5,000 of our Through the experience of the team and the very customers, and then launched live on air at the close relationship we have with our customer end of January, selling out. Soapsmith’s winning base, we make sure to only select the formula is that the brand offers QVC’s discerning brands we know we can sell on QVC. customers everything they look for – quality Read more at cosmeticsbusiness.com 169m The number of products shipped worldwide in 2013 (including all product categories at QVC) 2 QVC is the second largest multi-category mobile retailer, according to Internet Retailer 105,000 The number of Elemis kits sold as a Today’s Special Value on 17 November 2014 Source:QVC

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NEWS IN BRIEF LA ROCHE-POSAY DEBUTS SKINCHECKER 'Oreal-owned pharmacy skin care brand La Baby care brand Mustela has launched its first online Roche-Posay has released a YouTube video customer loyalty program, Lfeaturing dalmatians, highlighting the need my Mustela eRewards. By to check skin for sun damage regularly and offering exclusive access to protect it from the sun. new products and The video is part of the brand's international promotions, as well as multimedia and social media-based SkinChecker traditional loyalty program campaign, which also includes guidance on how perks such as deluxe to develop good sun habits and evaluate moles on samples and premium gifts, the body. Citing that ‘90% of melanomas the program allows customers to connect, learn, detected on time can be treated successfully’, the and shop all in one place. brand advocates the ABCDE method to monitor changes in moles, tracking the asymmetry, The SkinChecker campaign utilises research Kendall Jenner stars in Estée border, colour, diameter and evolution of moles. studies showing that 65% of people care more for Lauder’s new advert for its La Roche-Posay is the sun protection brand a loved one's health than their own. limited edition colour cosmetics partner of the British Association of In the feel-good video, therefore, footage of collection in collaboration with Dermatologists’ 2015 Sun Awareness Campaign, Dalmatian adults and puppies is intercut with the French fashion house and its website quotes United Nations figures on slogan “If you care for somebody, have a look at Courrèges. In the 23-second video, which can be viewed on the cost of lack of protection from the sun: more their beauty spots." YouTube, Jenner wears several than two million skin care cancers are diagnosed The digital campaign will be bolstered by a UK products from the collection annually around the world, a number that is ‘set road show with free mole screenings, starting in along with an orange visor and to double between 2000 and 2015 in countries London during Sun Awareness Week, from 4-10 hot pink cropped vinyl jacket. where the majority of the population has white May. skin’. Watch the video at cosmeticsbusiness.com As part of its Innovation Lab program, Sephora has released the Pocket Contour app, hailed as a new ‘digital Be a princess for a day with experience’ in partnership L'Oreal Paris Advanced Haircare has with Map My Beauty. The launched its #POWERON campaign, a multi- YouCam Makeup app cross-platform personal channel women's empowerment initiative CyberLink, a consumer multimedia software virtual make-up artist that includes social media conversations company, has released a Cinderella theme on its application has been across platforms, events in the US, and an YouCam Makeup app. opportunity to win ‘Power Time’ with designed to take the mystery Users can transform themselves into a ‘virtual out of contouring the face. spokesmodel Karlie Kloss. To kick off the princess’ by applying the new Cinderella styles to By analysing a photo of the campaign, L'Oreal Paris spokesmodels and user on mobile, the app celebrity brand hair experts will take to social their own selfies and photos. helps identify face-shape media to share their own powerful hair “With our new princess looks, we wanted to and gives personalised step- moments, describing and showing how they empower users with beauty tools to help them by-step application feel when their hair is ‘on’ with the hashtag visualise themselves as the hero of their own guidance. #POWERON. Women everywhere can take story and feel more confident in their photos,” part in the conversation, sharing their explained Alice Chang, CEO of CyberLink. powerful hair moments by uploading photos, Evine Live, a digital commerce Along with the release of the new Cinderella company, hosted its first Before quotes or images to Facebook, Twitter, and looks, CyberLink is hosting a competition to & After Beauty Day, a live 24- tagging @LOrealParisUSA and hour broadcast celebrating #POWERON. give one lucky user the chance to turn their what's hot in the beauty world. princess dreams into a reality. Users are Starting on 26 March, the event encouraged to apply the princess template to included head-to-toe trends their own photos for a chance to receive an and debuts from new brands exclusive ‘princess for a day’ makeover package. Beekman 1802 and dpHUE, One winner will be selected from the pool of top among others. 50 entrants with the most votes. Other prizes include a ‘fairy tale cosmetic kit’ and ‘princess LVMH-owned online content platform Nowness marked makeup palette’. Users are being encouraged to its fifth anniversary with a share their entries using the hashtag new logo and a series of #InstantPrincess and by including daily exclusive films. It @YouCamPerfectOfficial. specialises in fashion, Downloaded more than ten million times since beauty, art and media its launch last summer, YouCam Makeup uses the content. The logo was latest facial detection and skin analysis designed by design student technology to precisely apply realistic cosmetic Christian Heikoop, whose concept was chosen from looks on photos. The app features a complete set more than 600 entries. of true-to-life make-up effects as well as and skin effects. The app is available to download free on the App store and Google Play.

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

innovation

What consumers want from SUPPLIERS NEWS packaging in today’s market CAUGHT IN A BUBBLE Consumers aren’t just looking for innovative products, One of Albéa’s tubes has been they want packaging to match. Tracy Doherty, Senior chosen by Marionnaud Paris Director of Customer Marketing at MWV discusses for the launch of its new Hydra&Sublim ate last month, MWV officially BB Eye Cream. The launched Packaging Matters 2015 – Artist Bubble tube L our third annual study of the impact features a sponge of packaging on product satisfaction and pad for the purchasing behaviour. application of a athlete’s foot and acne, as well This year’s study examined the attitudes of variety of formulas as supporting intimate hygiene consumers in five markets – Brazil, China, including anti-wrinkle and formulas for hand sanitiser. Germany, France and the US – and across cream, The anti-microbial targets 11 FMCG product categories, including cream, liquid blush or bacteria, mould and yeast and fragrance, beauty and personal care products. gloss. The applicator is also designed to soften skin. The goal here was to come away with key insights for brand dispenses product managers that would tell them how considerations for packaging gradually so that it can USING YEAST can make a positive impact on their business. be blended in by Ashland has brought So, what did we find? Few consumers are completely satisfied gentle patting. out an extract derived with packaging today – and beauty, personal care and fragrance from yeast protein that product packaging is no different. Only 12% of consumers report SECOND SKIN is said to help maintain being completely satisfied with Evonik has unveiled a low- skin’s cellular rhythm beauty packaging, while 13%, viscous formulation concept and guard against UV and 17% report being satisfied Packaging is no to meet Asian consumers’ damage. The company for personal care and fragrance longer just a container demands for products that said using a small packaging, respectively. to“ hold a product, but have a light feel on the skin. concentration of What’s more, close to 40% The brand identified that Chronogen YSTT of consumers rated packaging a vehicle that enables“ around two thirds of Asian biofunctional in skin for beauty, personal care and brands to increase territory is either a tropical or creams may help to fragrance as ‘very or extremely trust with shoppers subtropical zone, therefore its resynchronise the skin’s impactful’ when it comes to and foster loyalty new formulations aim to create circadian clock. making purchase decisions. a non-oily and non-tacky feel. Read more at Tracy Doherty, Senior Director, What does that mean exactly? The formulations include: All cosmeticsbusiness.com Customer Marketing, MWV Consumers say they will try Day Hydration Skin Relief Rich new products because the , Energizing Light Serum, SQUARING UP packaging catches their eye, because they appreciate its functional Daily Protection Sun Care M&H Plastics has launched design, because it makes the product safer to use, and because they Spray SPF 30 PA+++, three square and rectangular are able to learn more about the brand directly through the Smoothing Air Cushion products. The 75ml Non- packaging. Packaging is no longer just a container to hold a ; Silky Smooth Aerosol Tall Square and 175ml product, but a vehicle that enables brands to increase trust with and Even Brilliant Mask; Non-Aerosol Tall Rectangular shoppers, which can ultimately foster what brands covet most – and Intensive Hydrating are both available in PVC or customer loyalty. and Refining Mask. PETG, while the 250ml One other key findings related to beauty, personal care and Rectangular is availale in HDPE fragrance packaging was that, when it comes to packaging or BMPP. The new packs attributes, those that consumers deem most important are related feature crisp lines and multiple to a package’s functionality, safety and convenience, not aesthetics. options when it comes to Consumers who identified with this point were seen to care decoration areas and types. that their product’s packaging prevents spilling and leaks; keeps the The company said the product fresh, effective and safe; is easy to reclose or reseal; and is additions are suitable for a easy to get the right amount of wide range of products product out, every time. spanning different sectors. In that case, do aesthetics still KEY TRENDS IN matter? Absolutely. They are EXPLORING ALTERNATIVES key to drawing consumers in for PACKAGING Natural actives manufacturer ❒ trial purchases. But if consumers Premiumisation across Lachemi has announced the product classes are disappointed with packaging launch of a natural triclosan ❒ functionality after purchase, New on-the-go solutions alternative, called La’Lact. The ❒ when they take the product Enhanced spray offerings alternative is said to tackle ❒ home and store it, during use or Globalisation of customer microorganisms that can cause bases disposal, they are likely to move skin disorders such as dandruff, on. Smart packaging matters.

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

brands

NEW PRODUCTS

1 MELVITA is adding to its chamomile, which are known to remove toxins, according to has a light scent. The mascara Nectar Bright range with a new restore and balance skin; and The Body Shop. features a Precision Brush that is Brightening Concentrate (£38). oats, which are packed with Launch: 7 April shaped to push lashes up and The concentrate is designed to minerals and vitamins, and are out. The brush is also designed tackle dark spots and to help hailed for their naturally 4 COLLISTAR is teaming up to wrap each eyelash with skin regain its luminosity and moisturising and soothing with Italian design brand Kartell defined, clump-free volume, brightness. The gel formula qualities. The packaging features to launch a colour cosmetics lifting and stretching them all the comes packaged with a dropper intricate designs by artist and range for summer. The collection way up for an ‘eye-awakening’ for precise dispensing over any designer Amanda Ross. includes a number of brightly effect, according to the brand. pigmented areas. The formula Launch: out now coloured products (u7.25-u32.80) Launch: May contains the brand’s patented 5 including: Trasparenze Multi- White Flowers Complex, as well 3 THE BODY SHOP is releasing Blush Eye Shadow, Gloss Design 6 SALLY HANSEN has brought as a new ingredient obtained its Fuji Green Tea collection. The and Professional Lip Pencil, out two new nail products that from the brown alga Ascophyllum bath and body range (£4-16) Gloss Nail Lacquer Gel Effect, are said to be infused with real nodosum, which is found on the is based around the antioxidant Silk Effect Eye Shadow and 18-karat gold. The 18K Gold Nail North Western coast of Europe qualities of Japanese green tea, Professional Eye Pencil, and Hardener and 18K Cuticle Eraser and the North Eastern coast of said to have been celebrated Sexy Look Sensual Oil Face and (£7.95 each) form a duo that is North America. The seaweed has for its detoxifying benefits for Body Illuminator. The partnership claimed to instantly treat and developed a balancing system over 400 years. The products between the two companies beautify nails and cuticles in one of its pigmentation process, after are infused with real green tea began in 2014 as part of the Ti step. The hardener is designed being exposed daily to UV rays, leaves, handpicked in the Mount amo Italia project, which focuses to lock in moisture; it combines according to the brand. Fuji region of Japan. They are: on pride in belonging to Italy and gold with peptides and amino Launch: May Exfoliating Soap, Body Scrub, making or doing things by hand. acids, that are known for their Body Butter, Body Sorbet, Body The products themselves revolve nail growth benefits. Meanwhile, 2 ELEMIS is launching a product , Body Wash, Eau de around the theme of transparency the eraser, which has a nibbed to be used in the shower that is Cologne, Bath Tea and a Bath and feature modulating hues and exfoliator and built-in cuticle inspired by an English garden. Infuser accessory. The Eau fragments of colour. pusher, is made to renew and The British Botanical Shower de Cologne blends green tea, Launch: out now soften cuticles. The formula Cream (£24) makes a feature of bergamot, lemon and mandarin Read more at contains gold and quartz scent and naturally moisturising top notes with a floral heart cosmeticsbusiness.com particles to eliminate excess skin plant actives. Key actives in the of camellia, jasmine and violet, and polish the nail’s surface. cream include rosemary and while the Bath Tea uses real 5 is due to launch a Launch: out now omega-rich echium oil, which are whole green tea leaves to create mascara that is said to help Read more at said to soften the skin; lavender, a cleansing bath, helping to ‘wake up eyes’. The Wonder’full cosmeticsbusiness.com geranium, palmarosa and Wake Me Up Mascara With Vitamins & Cucumber (£7.99) contains Pro Vitamin B5, vitamin E and cucumber extract, which is said to help eyelashes feel conditioned. The formula also 5

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

people

German sun care brand Ladival Sun Protection has announced that British actress Emilia Fox will be fronting its UK awareness and education campaign: Think Infrared Defence. The public awareness campaign aims to educate UK consumers on the relatively unknown dangers of Infrared-A rays from the sun and to help them understand the effect that these damaging rays can have on the skin. As a genuine advocate of sun safety, Fox will be leading the campaign to coincide with Ladival’s products rolling out into stores nationwide - the first time its products have been available in the UK. She commented: “I think lots of people, including myself, hadn’t even heard of Infrared-A before now. Of course I know the importance of looking after my skin in the sun, and now being a mum I feel incredibly protective of my daughter’s skin and health. I’m hoping that by becoming involved with the campaign, I can make more people aware of how important it is to protect our skin against Infrared-A and enjoy the sun safely.”

THE LATEST APPOINTMENTS

Johnson & Johnson-owned contact lens MICRO POWDERS has appointed AIROPACK GROUP has announced EARL brand ACUVUE has made celebrity make- ARVIND SHAH as Senior Chemist of its TROUT as its new Vice President of Global up artist COLLETTE CASEY its official Personal Care Division. He will be Sales & Marketing. In this new role, Trout make-up artist for 1-Day Acuvue Define responsible for the development of new and will be part of Airopack’s leadership team lenses. Casey's work has apppeared on the innovative products for skin care, colour with a focus on sales, new business covers of national magazines and she has cosmetics, hair care and other applications development and marketing. He has worked with many high profile clients within the personal care market. Shah has previously worked for packaging companies including beauty and fashion brands and over 30 years of experience in the cosmetics MWV, Calmar, Hallmark and Wells Fargo. celebrities. industry, including roles with Revlon, Read more at cosmeticsbusiness.com P&G, and Avon. Brazilian-American actress JORDANA BREWSTER is the new face of skin care Luxury skin care brand BELLATORRA has Model, TV personality and mother brand POND’S and its Rejuveness Anti- appointed EVA BOWEN as its Vice DANIELLE LLOYD is the new face of Wrinkle Cream. In the partnership, President of US sales. She has assumed the British skin care brand FLINT + FLINT’s Brewster will be introducing Rejuveness responsibilities of helping launch new campaign. The brand’s nine-sku product Anti-Wrinkle Cream to a new generation of store-front distribution, acting as the key range focuses on looking after the skin and women. She announced the news to her point person and creator for immersion slowing down the ageing process in the fans via her social media channels with a training, sales collateral, sales strategies and most nurturing way. video announcement filmed on-set at her presentations. Read more at cosmeticsbusiness.com campaign shoot.

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

the final word

hands to their own face and, guided by their WHAT PART SHOULD Facial Expert, learn how to read their own skin, Q WELLBEING PLAY how to care for it and monitor its progress. A holistic approach IN BEAUTY? The Gazelli House, launching in September this The two should always be aligned in a holistic approach, says year, is guided by the belief that our skin care Jamila Askarova, Founder of Gazelli Skincare should be honest, authentic and effective, and we hope to provide every customer with the tools to Luxury Azerbaijani When a person is understand and nurture their own skin. It is also skin care brand our aspiration to offer customers a service that

A Gazelli is founded on “balanced, fulfilled and extends beyond the treatment room and beyond years of research into confident, we believe the skin; we hope to inspire people to want the preventative medicine and that they achieve a best for themselves, to help them find balance, phyto-therapy. Today, it glow that cannot be “ harmony and inner contentment. combines education, diagnostics In the ever-evolving Gazelli House, immersed and realistic advice with a distinct style of service attained only through in art and culture, we will hold inspiring seminars to consumers of its retail products and those who superficial means and interactive workshops on an eclectic range of indulge in its professional treatments. In Jamila Askarova, Founder of topics, and celebrate the transformative powers of September, the brand brings its Gazelli House Gazelli Skincare conversation with like-minded people. We will concept to London to offer a home for those also offer a place to connect with a diverse seeking high-end healing rituals. calendar of visiting experts, who give support for the pressures of modern life by re-educating the Positive thinking senses and helping us all to become our happiest, The Gazelli vision is to lead a shift in the way most authentic selves. that we think not only about skin care, but also We believe that wellbeing is a journey that our cultural attitude towards beauty and starts with positive intention, and Gazelli will wellbeing. When a person is balanced, fulfilled inspire people to begin that journey. and confident, we believe that they achieve a glow Read more at cosmeticsbusiness.com that cannot be attained only through superficial means. There is a growing movement of those who are beginning to realise the importance of holistic approaches, and the beauty industry will inevitably be increasingly aligned with the The Gazelli wellbeing industry, but for Gazelli with our mantra to live beautifully, the two have always prescription been somewhat inseparable. Gazelli’s Prescriptive Facial is For this reason my mother and I dedicated its most popular treatment. ourselves to build something that was much more Exclusive to the Josh Wood than another skin care brand. We wanted first Atelier in London, each and foremost to bring a positive attitude to skin treatment is different and based care, and also offer consumers a brand founded on the client’s needs on the important principles of honesty and education, and care and emotional support. It’s Products are mixed and layered our belief that to deserve the loyalty of the for specific, customised blends modern consumer we must offer not only to deep cleanse, enhance powerful and innovative formulations, but also a cellular renewal and nourish skin strong and trustworthy philosophy and ethos.

Education and support An OXYjet facial device is used to My mother, Dr Hamzayeva, before becoming a help active ingredients penetrate distinguished cosmetics formulator in her native the epidermis by the appliance of high pulsed pressure country of Azerbaijan, worked as a pioneering doctor in preventative medicine, gene science and phytotherapy. The treatment aims to replenish It is this scientifically informed yet rounded skin tone and elasticity and leave approach that has inspired our distinctive attitude the complexion plumper and to skin care and the unique Skin Diagnostics more radiant Programme that goes beyond the surface of the Submit your questions for the next client’s skin, seeking to understand them as a The Final Word column by tweeting Gazelli’s famed White Oil is at whole and taking into account the fundamental Cosmetics Business @cb_beautynews the heart of every treatment, to impact of nutrition, lifestyle and emotional using #TheFinalWord rejuvenate and enhance the skin factors on their skin. The client is also invited to introduce their

6 April 2015 cosmetics business news 12