Cosmetic News Weekly
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COSMETIC NEWS WEEKLY No 604 / June 16 2014 www.cosmeticsbusiness.com Crowdfunding to bring in business rowdfunding company Kickstarter the Swiss Alps, which would also appeal to INSIDE THIS ISSUE this month changed its rules to many. The product is now in production. Callow bath and beauty products UK hair care brand Concoction is also BUSINESS and a range of other projects to access its using Indiegogo to crowdfund for further Givaudan has put the finishing platform. While other crowdfunders have development, while beauty and jewellery touches to buying up Soliance long been open to cosmetics, Kickstarter startup Obo kicked off on the site in May to page 3 remained a hard one to access. And raise funds for its fragrance business. So far though it has opened the door for many, it has raised over u20,000. ASIA FOCUS for some, it may still be restricted. Kickstarter has developed a Creator Kosé outlines its approach to Among the projects still prohibited are: Handbook to help startups avoid the its growing business in China “Any item claiming to cure, treat, or prevent pitfalls that cause businesses to fail. It page 4 an illness or condition (whether via a includes a number of tips for creating a device, app, book, nutritional supplement, successful campaign. They include having a INTERVIEW or other means).” Whether this will exclude, realistic budget for the project on the Mark Buxton, perfumer, for example, skin care products that claim campaign page – the minimum amount Nose / Mark Buxton Perfumes to treat dry skin, ageing and other needed to complete the project and fulfill page 5 conditions remains to be seen. any promised rewards. Ideally, the project Crowdfunding is increasingly being used should be no more than 60 days; SUPPLIERS by startups to help bring their brand to Kickstarter said the most successful Perfume can make a woman’s market. Kickstarter says its service has so projects on its platform tend to be those face more attractive far seen more than US$1bn pledged to that are 30 days and less. Fundseekers page 7 projects and the relaxation in its rules need to tap into core networks – although should bring in even more. the platform will introduce a brand to new RETAIL But not all crowdfunding campaigns are audiences, most support is likely to come Cocokara Fine opens China successful. The vast majority fail to reach from those who are already familiar with the chain and details expansion their goal, whether because their strategy work. Individual follow-ups and updates on page 8 was inadequate or they neglected to reaching successful milestones are also key. include key details in their pitch. It is all common sense but there are PRODUCT One campaign that did work was that of many out there with great ideas but no Oceanyx explores the sea to Swiss-Indian cosmetics collaboration practical business sense. And they are likely launch anti-age serums Abhati Suisse. It raised over $25,000 to fail. Crowdfunding platforms are opening page 9 between October and December 2013 on up opportunities to a wide range of Indiegogo with its handwash product interesting brands that may never have SPOTLIGHT launch ‘One Hand Washes the Other’. It seen the light of day trying to make it in the High-quality personal care had a strong campaign, tying its product in cosmetics world through traditional routes. products still vital in Venezuela with its hygiene and health project in India. But to make it successful in the short and page 12 The product itself was based on natural long run, the strategy needs to be sharp. ingredients from the Indian Himalayas and Kathleen Armstrong 1 • CosmeticNews Weekly No604/June 16 2014 • www.cosmeticsbusiness.com People Ulta Beauty has announced that industry, encompassing new product CosmeticNews Weekly Vanessa Wittman, Senior Vice President development and marketing for finished and Chief Financial Officer of Motorola formulations and raw materials, technical HPCi Media Limited Mobility, a subsidiary of Google, has been support and business and account Unit 1, Vogans Mill Wharf, 17 Mill Street, London SE1 2BZ, UK appointed to its Board of Directors and as management for sales and marketing. +44 20 7193 1279 a member of its Audit Committee. Wittman [email protected] brings with her more than 25 years’ The International Confederation of Acting Editor experience in finance and technology. Plastics Packaging Manufacturers Kathleen Armstrong Mary Dillon, Ulta Beauty’s Chief (ICPP ) has elected Jerry Geyer from Greif +44 20 7193 8184 Executive Officer, said: “We are delighted Inc (US) as President for a four-year term. [email protected] Reporter to welcome Vanessa to Ulta Beauty’s He follows Benoît Cheval from Georgia Seago Board of Directors. Her experience as a Sotralentz Packaging (France) who had +44 20 7617 7114 Chief Financial Officer and as a Board completed his term as President. Vice [email protected] member for several public companies will Presidents Chris Lind (Mauser Corp/US) Layout Sub-editor Ross Murdoch bring valuable insights to our company and Dave Tatz (Megapack/South Africa) [email protected] on a broad range of topics, including were re-elected for another four years. finance, strategy, technology and Correspondents: corporate governance.” Levi Moriarty has joined L’Occitane Argentina Muireann Prendergast Australia & New Zealand Sarah de Castro Group as Communications Assistant. Brazil Sueli Ortega Tristan Farabet has joined Groupe Previously at Tom Ford Beauty, Moriarty Canada Marjo Johne Pochet as Managing Director as well as will be working on the Melvita brand, as China Keith Crane France Patricia Mansfield-Devine joining the company’s Board of Directors. well as new brand Le Couvent des Germany Annie Kruse Prior to joining, Farabet was CEO of Coca Minimes, launching this autumn. In India Chitra Gopalak Cola Entreprise France. addition, Sophie Oliver, previously PR Italy Corinne Blanché Japan David Kilburn “I was attracted by Groupe Pochet Manager, has been promoted to Group PR Russia Eugene Gerden because its family culture, deeply humane & Communications Manager; while South Africa Bambina Wise and at the boundary between art and Shimon Kalichman is now Director of Spain Lola Gavarrón UK Imogen Matthews industry, resonates with my values,” Marketing & Communications. US - East Coast Laura Klepacki Farabet commented. He began in the US - West Coast Kavita Daswani position on 1 May. To celebrate UK retailer John Lewis’ Travel Retail Kevin Rozario 150th anniversary – and raise money for US Sales Manager L’Oréal USA has named Marie Gulin as domestic violence charity Refuge – six Spy Suzi Richardson Chief Marketing Officer, replacing Marc Gals from Benefit Cosmetics UK & IRE, +1 305 461 0861 [email protected] Speichert who left the company last John Lewis and Refuge abseiled down the Managing Director month to join Google. Gulin has over 15 Oxford Street store. The Spy Gals from Colin Bailey-Wood years’ experience in communications and Benefit were General Manager Gail +44 20 7193 6066 [email protected] digital marketing management, most Bojarski, Sales Director Sarah Harbon Chairman recently as Global Head of Integrated and Head Make-up & Trend Artist Lisa Michael Harrington Marketing Communications for L’Oréal Potter Dixon. They were joined by John +44 20 7193 1092 Paris. Lewis Head of Buying – Women’s [email protected] www.cosmeticsbusiness.com Accessories & Beauty Amanda Scott, Skin care brand Gazelli has appointed Refuge Director of Communications and Subscriptions +44 20 7193 1279 Tina Surelia as Sourcing Coordinator. Fundraising Lisa King and blogger/DJ [email protected] She will be working alongside the @zoelondondj. one year subscription: US$1,585/a1,250/£990 two year subscription: US$2,800/a2,250/£1,780 Marketing Department and Creative Director to develop Gazelli’s Retail, BRAND AMBASSADORS Professional and Lifestyle Ranges. CosmeticNews Weekly Hair colour removal brand ColourB4 has CosmeticNews Weekly no604 16 June 2014 Micronised wax additives company Micro appointed British entrepreneur and Articles published in this newsletter may only be reproduced with Powders has hired Diana Smith as Sales former model Katie Price as its first permission. The publisher accepts no responsibility for any statements made in signed contributions or in those reproduced Manager for its Personal Care Division Global Ambassador. “Over the years Katie from any other source. ISSN 1953-0633 based out of Tarrytown, NY. Smith will be Price has proved to be the ultimate ‘style HPCi responsible for the northeast and chameleon’, changing overnight from media southern territories in the US, as well as ‘raven haired sultry siren’ to ‘blonde boho Canada and Asia. Smith has around 34 beach babe’, and it is all thanks to years’ experience in the cosmetics ColourB4,” the company said. 2 • CosmeticNews Weekly No604/June 16 2014 • www.cosmeticsbusiness.com Business Avon calling on a new owner? Avon investors have reason to rue Coty’s buy-out US$24.75 offer of 2012. Currently Obo kicks off with Indiegogo Avon shares have sunk more than 35% in the last year alone and are now worth ew startup beauty jewellery company, Obo, is using crowdfunding site around $14.68 (before going to press). Indiegogo to raise funds for its fragrance business. The firm is the brainchild The company is still in the midst a turn- Nof designer Julien Cohen and is a subsidiary of Aesthete, the agency founded around strategy while cleaning up the mess by fragrance bottle designer Thierry Baschmakoff. Its product is fine fragrance ‘pearls’ – and a $500m legal bill – from Chinese that fit into jewellery such as a watch or a pendant, an idea the firm bills as “the bribery allegations. But its stuttering smallest perfume bottle in the world” and it is launching with eight fragrances progress – last month Avon share price created by Anne-Sophie Behaghel and Amélie Bourgeois of Flair and is now looking slipped to its lowest point, $13.30, in for funds on Indiegogo.