ISSUE #40 JANUARY 29, 2021

A Publication of WWD

The Priyanka Project Hot on the heels of her Netflix hit, “The White Tiger,” and gearing up for the publication of her memoirs, Priyanka Chopra Jonas is launching her new hair care line, called Anomaly, at Target on Feb. 1. For an exclusive first look, see pages 7 to 8. PLUS: Everything you need to know about China’s evolving regulatory landscape. PHOTOGRAPHED EXCLUSIVELY FOR WWD BEAUTY INC BY KYLE GAVIN THE BUZZ 2 JANUARY 29, 2021 Beauty Bulletin

Broadfoot joins the company in the role from RFi Group, replacing interim CFO Peter Mayston. The change By the comes in the wake of other key hires at the company. Panni Morshedi Numbers: was appointed the chief operating officer last year, following her role as Celebrity managing director at Funding Circle UK. At the same time, Rob Weston Beauty became the chief marketing officer,

FROM TOP LEFT: joining from M&S. Brands, Gianni Pieraccioni; Roberto Canevari; Andrea Harrison; Swiss fragrance and flavors supplier Ranked Gillian Gorman Round; Firmenich has named Matteo Matteo Magnani; Celebrity brands performed Marie Charlet; Magnani its chief consumer and the best when tapping into Ryan Nelson innovation officer, global perfumery, a larger mission, data from a newly created position. Magnani Tribe Dynamics shows. most recently worked at Procter & BY JAMES MANSO Gamble, where he served as vice president of fabric care for Europe. The Latest Beauty AS THE LANDSCAPE of celebrity- owned beauty brands gets more At the L’Occitane Group, Yves Blouin crowded, some of the space’s Executive Moves has been selected as both executive original players are still gaining the Beauty brand incubator Maesa has succeeds Gregory F. Polcer. Polcer director and managing director. Bouin most social media traction. Data a new chief executive officer. Coty will retire, effective July 1. most recently served as the managing from Tribe Dynamics shows that alum Gianni Pieraccioni is joining the director and general manager for for the year of 2020, Beauty and Kylie remained top company in the top slot, effective CVS Pharmacy has promoted Chanel in Southeast Asia, China, players in the space. February 1. He replaces founder and Andrea Harrison to the role of vice Japan, the Middle East and India. The winning strategy for celebrity chief executive officer Julien Saada, president of beauty and personal brands, however, doesn’t have to Peace Out Skincare’s growth has who will stay with the company as care. Harrison most recently led the do with just star power. “The brands chief strategy officer and chairman beauty portion of CVS Pharmacy’s also led to new C-suite positions for that are doing really well leverage of the board. Pieraccioni most business, according to a statement the brand. Marie Charlet joined the beyond their celebrity to create that reecntly served as executive vice from the retailer. She succeeds Maly brand as director of finance, following excitement, and they give people president and president, Europe, Bernstein, who was promoted to vice a stint at Sears Holding Company more than just the recognition and Middle East and Africa at Coty Inc. president of digital and omnichannel. developing financial tools. Also joining glamour to engage with,” said Brit the brand is Ryan Nelson, who is the McCorquodale, senior vice president The Estée Lauder Cos. Inc. has named Clean makeup and skin-care brand new global director of education. of revenue at Tribe. “It has always a new leader of its global supply Kjaer Weis has a new chief executive He most recently served as director been incredibly important for a brand to stand for something, to be chain. Roberto Canevari has been officer. Gillian Gorman Round, who most of education for Drunk Elephant. about something bigger than just the named executive vice president, recently served as the global and North products they put out. We’ve really Oribe alum Jay Morris, formerly global supply chain, effective May 1. America general manager of American seen that extend in a meaningful vice president at the hair care Canevari will report to Fabrizio Freda, Crew and CND at , joined the way into brand values.” chief executive officer and president. brand, effective earlier this year. brand, has joined the ranks at Canevari, who was most recently Iles Formula, where he serves 1. executive vice president of supply Beauty Pie has ended its search as vice president of global sales. $555,195,705 chain, Europe at Unilever PLC, for a chief financial officer. Eleena —WWD Staff 2. $187,859,638

Beauty, with the hero product, improvement of health,” Ghalichi 3. Hairtamin Advanced Formula, going into all said. “It’s been a really expansive $141,764,661 Launches at Ulta doors. The rest of its lineup, which year, we’ve had so many customers 4. kkw beauty includes a , conditioner, discover us because the pandemic $98,558,293 Tk Caption gummy vitamins, an immunity has been so long.” 5. rare beauty supplement and a postnatal Integral to growing their business supplement, will be available on is their relationship with consumers, $60,024,579 Ulta’s website. Prices range from $20 Milani said. “Our decision has always 6. kylie skin to $30. Hairtamin didn't comment on been very thoughtful in that we really $31,486,411 sales, but industry sources estimate wanted to crawl before we walked, 7. fenty skin wholesale sales to reach between to understand our core customer, $8 million and $10 million for the who she is and what’s important $25,819,197 Tk Caption brand's first year at Ulta. to her,” she said, adding that the 8. florence by mills The retail expansion comes at brand's database of over 700,000 $16,143,718 ¬ Hairtamin, the hair-care and a time of growth for Hairtamin, customers is a goldmine of data 9. honest beauty supplement brand founded by TV which benefited from consumer’s and consumer insights. “You can’t personalities and entrepreneurs skyrocketing interest in self care really gain that sort of data in a retail $14,012,195 Lilly Ghalichi and Leyla Milani, has and health. “The pandemic has space. With our business being 10. victoria beckham beauty found its first retail partner. really put a focus on a brand primarily d-to-c, we really wanted to $12,989,038 The brand will launch at Ulta like ours that focuses on overall use that.” —James Manso Source: Tribe Dynamics, 2020 HELPING 1000+ RETAILERS ENGAGE CUSTOMERS & DRIVE RESULTS. Email | SMS | Identity Resolution Behavioral Marketing | Predictive Analytics Customer Insights | Personalization

www.listrak.com NEWS FEED 4 JANUARY 29, 2021

the company will launch Marc Jacob’s Fragrance Sales Bounce Back Perfect fragrance in China, capitalizing on its number-one position as the top In a tough year, scent sales were a bright spot for beauty. BY PETE BORN launch for 2020 in the U.S. and the U.K., said Isabelle Bonfanti, Coty’s A CHARGED UP fragrance of a fragrance is 14 to 15 percent of by selling small sizes of scents for a low chief commercial officer, luxury. business has stepped into 2021 with sales. For My Way, it was 30 percent. price. The cost can then be applied to “The luxury market is booming,” an inspired attitude. “The discoverability and even the the purchase of a larger size. said Bonfanti, adding that Coty “We see a tremendous acceleration propensity to purchase online was Environmental fragrance has also outpaced the market last year. of fragrance in general,” said much stronger,” Grant said. seen a boom, powered by consumers Looking into 2021, she noted that Stéphane de La Faverie, group “The way that we brought the looking for a sense of comfort. a number of companies had held president of Estée Lauder Cos. Inc. fragrance to life online was also “We are putting a lot of innovation back on launches last year, and as a “It’s not only a U.S. phenomenon, very different in terms of really on this area of candles, bath and body, result, the second half of the year is it’s global,” with growing markets in ingredients, the in-real-life imagery body oil, some diffusers — all of these expected to be particularly robust. China, Russia and the Middle East. of how consumers are using the things that accelerated tremendously,” Bonfanti stressed that Coty will As for the U.S., the prestige fragrance, different types of close ups de La Faverie said. “When you be on the hunt for innovation and fragrance business was up 2 percent on the bottle.” combine the idea of being a safe sustainability, particularly new materials for the third quarter of 2020, Grant also pointed to “a really big haven and add the ability to move that can yield products for emerging according to NPD. evolution in terms of how consumers luxury fragrance high touch from a categories like clean fragrances. In the key month of December, are digesting the fragrance category store to online, you have the perfect “Clean beauty today is about fragrance sales increased by 3 and understanding the fragrance equation to accelerate fragrance and meeting the consumer desire for percent in the U.S., while skin care elements (online),” adding that engage more consumers.” minimalist formulas and more dropped by 9 percent and makeup L’Oréal is striving to improve content De La Faverie believes the transparency,” she said. “We can use plunged by 32 percent, according to and tools of engagement. The momentum is here to stay, sentiments those natural ingredients. Last year, preliminary figures. company has experiment with TikTok shared by Ulta Beauty. “Candles are we got a Cradle to Cradle Product Sales were driven largely by high and influencers, such as with its new on fire,” joked Monica Arnaudo, chief Innovation Institute Award for value products — with heavier Valentino Voce Viva scent. merchandising officer. “Fragrance is Ck Everyone. concentrations of juice — leading the There also has been an uptick in a feel good category,” she continued, “We are going to look at our way. Eau de parfum versions moved demand for juices, heavy and light, noting the momentum of brands like portfolio,” she continued. “What better than less expensive eau de novel and new. “We saw very intense HomeWorx and Nest. “We definitely see you want is to find a way to toilettes, and the new and the novel fragrances doing exceptionally well it as a category of self care and people create new fragrances with clean also resonated. The apparent taste using fragrance to pamper themselves ingredients — with renewable for a little bit of luxury was matched and feel good,” Arnaudo said. ingredients — that bring something by desire for comfort, as home We definitely Home scent also has been a strong new to the market. It is also fragrances sold well. performer at Coty, along with the important that you get the quality “Anything with a higher see fragrance company’s deep portfolio of designer of the smell by exploiting (these) concentration of fragrance oil has been as a category and classic fragrances. Next month, new ingredients.” doing very well and driving growth,” said Larissa Jensen, vice president and of self care Perfect was the beauty industry adviser at NPD. and people top-selling launch of 2020. Since April, when the COVID-19 clampdown trapped fragrance sales using fragrance in a deep, minus 68 percent crater, to feel good the business rebounded, month by month. By September, sales volume and pamper showed a 5 percent monthly gain. Fragrance continues to be one themselves. of Macy's strongest businesses, -MONICA ARNAUDO, ULTA BEAUTY outpacing both skin care and makeup, according to Julie Walsh, divisional business manager for during the second half of the year, and fragrance. The spring lineup of especially in the fourth quarter with launches includes entries from brands like YSL Libre. L’Oréal also Versace, Jimmy Choo, Kate Spade registered success with lighter scents and Gucci, among others. like Atelier Cologne’s number one juice Megan Grant, president of the California Clementine,” Grant said. Luxe Division of L’Oréal USA, noted, De La Faverie sees several consumer that what was “most unexpected” trends in the works, led by a conversion was fragrance’s ability to “make the of the luxury high-touch selling rebound the quickest.” that fired in-store retailing. The Luxe Division scored a “When you used to go to a store with December fragrance gain nearly a brand like Kilian Paris or Jo Malone 2 percent higher than the market London, you had a tremendous level of increase. experience with storytelling — with the Just as important, there seems to tone of voice, sampling, demonstration,” be a shift happening in consumer he said. “We had to move all of that buying habits. After years of hearing from the store to online.” that fragrance can’t be sold online, De La Faverie said online sales are some executives have noted a showing high-double-digit growth, cracking of the smell barrier. driven by discovery. “It is no longer During the pandemic, many have just for replenishment,” he said. pivoted launches to the web. L’Oréal “People are discovering first time Luxe launched Giorgio Armani My fragrances online. We have put a lot Way women’s fragrance both online of things in to enable that.” and off. Usually the digital penetration One move was to reinvent sampling NEWS FEED 5 JANUARY 29, 2021 Skin Inc Raises $7 Million The brand is known for its custom serums. BY ALLISON COLLINS

CUSTOM SKIN CARE business has ties to major tech company Skin Inc Supplement Bar has raised SoftBank. Mistletoe is owned by $7 million from Singapore investment Taizo Son, brother of SoftBank fund Mistletoe. chairman Masayoshi Son, and the Skin Inc makes a skin care line firm is led by Atsushi Taira, a former that has been used backstage at SoftBank executive. New York Fashion Week. The brand “We are broadly pursuing the future is best known for My Daily Dose of people's wellbeing and wellness,”

Custom Blended Serum, $84, which Taira said in a statement. “Beauty Skin Inc's Milan store. is blended after shoppers go through powered with technology is one of our an online assessment called the Skin interests. Skin Inc has been creatively Industry sources estimated that the data to create the Voyage Tri-Light ID Check. That process was created thriving in this direction since its company did about $39 million in sales and Tri-Light glasses, and to launch by the company in partnership with inception and we find that Sabrina for 2020, and could double in 2021. products in 2020 that meet skin care Shekhar Mitra, a former global is a like-minded founder to work “The funds will be utilized for needs mid-coronavirus pandemic. vice president of research and together to achieve our goals.” Skin Inc Cloud…e-commerce and Recent launches include Mask Liner, development for Procter & Gamble, Tan said the investment came at omnichannel global expansion. It meant to reduce face mask-related and is meant to determine what the right time, and that the business will also fuel the tech-led innovation acne, or Serum Glow Filter, meant ingredients a serum should include to is growing. that will set us apart and propel to provide a light glow during Zoom address individual skin concerns. The company plans to strengthen the beauty and wellness industry calls. Skin Inc also launched a Detox Skin Inc also makes a Pure DeepSea its existing presence in Southeast forward by bringing to life the supplement with Vitamin C last year. Hydrating Overnight Mask, $45, and Asia, where it is sold in China, brand promise of 'customize, don't Additionally, Skin Inc has hired Oxy Recharge Bubble Mask, $55, as Hong Kong, Australia and other compromise' and providing 'one-size- William Gaultier as chief commercial well as the $295, Optimizer Voyage markets, and North America, fits-me' solutions,” Tan said. officer. Previously, Gaultier was with Tri-Light device, and the $195 according to Tan. Right now Skin Skin Inc will continue to use data , leading the e-commerce Optimizer Voyage Tri Light Glasses Inc is distributed with Sephora, from more than 1 million Skin ID P&L and marketing organization for for Bright Eyes. The business was Nordstrom, Bergdorf Goodman, Check profiles to create new products the Asia Pacific and Oceania regions. founded by Sabrina Tan in 2008. Tmall, Lazada, Shopee, Amazon, going forward. Before that, he was with Alibaba's Skin Inc's new investor, Mistletoe, Feel Unique and Urban Outfitters. Already, Skin Inc has used that Lazada Group.

to delivery involving all functions. It Chromavis Unveils Atelier Project required careful planning in order to be able to reduce the timing of some Clients of the Italian cosmetics supplier will be able to create customized steps in our time to market process products in one day and take them to market in just three weeks. as well as to design a dedicated BY SANDRA SALIBIAN production unit.” “This is for us a huge opportunity division of French pharmaceutical of learning by doing,” she continued, firm Fareva founded by Bernard adding that the project will serve as Fraisse — officially kicked off the booster to accelerate the production program this month, said senior vice pace of the whole company. president of marketing and business To wit, over the last couple of years, development, Cecilia Schena. the supplier, which is best known for “The [inception] of Atelier dates its baked powders, strengthened its back to late 2018 and it took us two commitment to improving its speed years to be able to deliver it,” she said, of innovation, including investing adding that the idea was prompted in a new facility in Offanengo, an by clients' demands. “For different hour’s drive from Milan. Covering an reasons, most of them need to have area of over one million square feet, small amounts of products delivered the hub brings together workspaces in a very short time.” and production units, in addition to Hence, Atelier targets different types housing the Atelier factory. of clients, encompassing “big brands At the same time, Chromavis also [that want] to run some market fine-tuned its top management to research, retailers doing some in-store further enhance its competitiveness. tests or indie brands and celebrities Last year, Thibaut Fraisse succeeded that want to [launch] a new product Fabrizio Buscaini in the role of chief

Inside Chromavis' new Atelier. online and test the market.” executive officer, while Beryl Faure In addition to the products, Kelley and Perrine Bequignon were MILAN — “A factory within a In particular, Atelier's speed Atelier's offering also includes a range later promoted to vice president factory” is the latest concept Italian to market is ensured by the of packaging options that clients can of global sales and vice president cosmetics manufacturer Chromavis wide assortment of ready-to-go customize with the support of the of research and development, has introduced to improve its time-to- formulations — including clean company's graphic designers. respectively. market performance. beauty and natural ones — and “To be able to deliver a finished Chromavis serves over 340 Dubbed “Atelier,” the project offers the production of small batches of product in three weeks, you need clients in 75 countries and has 800 the company's clients the opportunity to products, ranging from 100 to much more than just selecting employees, while Fareva Group create a customized product or an entire 2,000 pieces. some formulas and packaging,” said counts 39 production sites and over makeup range in one day and take them After running a few tests in Schena. “We had to conceive the 12,000 employees. In 2019, Fareva to the market in just three weeks. December, Chromavis — which is a whole process from product design had a turnover of 1.81 billion euros. VIRTUAL Digital Forum THE PACESETTERS: TRACKING BEAUTY’S DIGITAL ACCELERATION

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For more information visit fairchildlive.com DEEP DIVE 7 JANUARY 29, 2021

Priyanka Chopra Jonas has partnered with Maesa for her new hair care line. I love the ability to, as an entrepreneur, find a gap in the market and try to fill that.

—PRIYANKA CHOPRA JONAS

much buzzed about “The Matrix 4” with Keanu Reeves, then wrapped Sony Pictures’ “Text for You” (“with Sam Heughan and Dion — her acting debut, which is very exciting,” she said). And now, she can be seen in Netflix’s “The White Tiger,” the film adaptation of Aravind Adiga's debut novel, and is getting ready to shoot the Russo Brothers’ Amazon series “Citadel,” which she stars opposite Richard Madden. Throughout it all, she managed to create her own beauty line, hair-care brand Anomaly, available exclusively at Target on Feb. 1. “I just find it fascinating,” she said of the new venture. “I love the ability to, as an entrepreneur, find a gap in the market and try to fill that.” Anomaly, a partnership with beauty brand creator and incubator Maesa, is providing accessibility and sustainable packaging, while investing in results-driven formulas. Every item — , conditioners, a hair mask and dry shampoo — costs $5.99. Gender-neutral and produced entirely in the U.S., Anomaly is labeled cruelty-free, free of harmful chemicals and packaged in recyclable bottles made with post-consumer recycled materials. The shampoo and conditioner bottles use 100 percent PCR content, while the mask container uses 70 percent. The dry shampoo bottle, made with recycled aluminum, is also recyclable. Industry sources share a projected sales growth of $20 million for the brand. The beauty and personal care market is valued at about $500 billion globally, according to Statista, a market and consumer data firm. In a report released in December, PRIYANKA CHOPRA JONAS IS the company notes that hair care — very busy — despite the pandemic. which is expected to grow worldwide Priyanka Chopra Jonas “Unusually busy,” she said, on a from $85.5 billion (as valued in 2017) video call from London. “It’s crazy.” to $102 billion by 2024 — is most Releases Hair Care She typically lives a fast-paced life profitable in the U.S., with a domestic (alongside pop star husband Nick annual revenue of approximately Jonas) as an actor and producer, $12,861.9 million in 2019. And though Beauty Brand, Anomaly balancing several projects at once, revenue growth saw a dip in 2020 she explained. And while confined to due to the coronavirus pandemic, it’s The line will be available exclusively at Target on Feb. 1. her home in lockdown for six months anticipated to reach $13,745.5 million BY RYMA CHIKHOUNE PORTRAIT BY KYLE GAVIN last year, she continued to keep busy. in 2025. The market value for dry She worked on developing TV shampoo alone will grow from shows, signed a multimillion-dollar $3 billion in 2017 to $4 billion in first-look deal with Amazon and 2022, reports Statista. wrote a memoir, “Unfinished,” which The beauty industry has been will be released on Feb. 9. When reshaped by the rise of e-commerce, she was able to leave her house in shoppable apps and social media October, she returned to the set of marketing, and those with the highest Lana Wachowski’s upcoming and number of engaged followers, „ NEWS FEED 8 JANUARY 29, 2021

notably celebrities, have a leg up. The rise of celebrity-owned beauty brands has been a topic of conversation of late, as the beauty world continues to see a boom of these brands enter the market across categories. Known personalities in all areas of entertainment — music, film, television — have found significant success with their beauty brands, transitioning from endorsement deals to seeking ownership of their intellectual property. Wellness, too, has grown in popularity. The category, which incorporates “clean” and eco-friendly beauty, is valued at $4.5 trillion globally, according to the Global Wellness Institute. The nonprofit released its 2021 wellness report this week, listing “Hollywood and the entertainment industries jump into wellness” as a rising new trend. The organization notes that the mass market’s embrace of the category has created “unprecedented reach and affordability.” “We are going to constantly push innovation to be able to reach a place where we’re amazingly sustainable, but at the same time have superior product for a very affordable cost,” said Chopra Jonas, adding that the bottle caps cost just 3 cents to produce. “We’ve spent less on the bottle and spent so much more on the product. And it’s better for the earth than most. It’s a step in the right direction, and you can afford it. I think it’s the trifecta of that — that was the gap for me.” “What we do is we create, develop and scale meaningful brands for retailers exclusively, so we’re constantly asking ourselves, pushing the envelope: ‘How can we make products better, how we can make them different and how we can make them relevant,’” said Megan Fay, Maesa’s vice president of marketing and product development in hair care. “When we speak about Priyanka, she’s an anomaly in her own right. Anomaly is launching exclusively at Target. She’s one of the first women to cross over from Bollywood to Hollywood. sustainability has been a key, As the subject of public gaze very intimate experience now. For She’s a UNICEF ambassador, and she’s forward-looking human and since her teens, how does she define me, beauty is not about everyone also quite the business entrepreneur. environmental issue that she has beauty today? else. Beauty for me is when I look in Maesa really just helped her bring the discussed many times. “Beauty itself, they say, lies in the the mirror, how I feel.…And when brand to life.” “I think it’s high time that beauty eye of the beholder, so anything can you feel beautiful, when you feel For Chopra Jonas, hair is also very and fashion take responsibility,” she be beautiful,” said Chopra Jonas, now confident, that’s what the world sees. personal. added. “You know, take responsibility 38. “Everything has its own way of It shouldn’t be how people look at “I have a really important on how much waste there is being being beautiful, and just like that, I you, it should be about how you look relationship with my hair,” she said. created in the earth.…Beauty think human beings do, too. And we at yourself. And that took me a long “I remember when I used to go to shouldn’t cost us the earth. As large have to find our own sort of beauty.” time to understand, by the way. Now buy shampoo as a 15, 16-year-old, just as the beauty market is, that’s how It’s a lesson she’s had to learn, she in my 30s, I can tell you that. In my about discovering my teenage vanity at large our responsibility should be.” added: “I’ve had low self-esteem. 20s, that was not the case.” that point, all the really amazing, good For those unaware, Chopra Jonas When I was growing up, I was really With Anomaly, she’s promoting stuff was so expensive. I’ve always rose to fame in India, where she was aware and conscious of the way I universal acceptance of self and beauty. been aware of what I use and what born and raised. She was crowned looked, how my weight was, how “In the campaign that we do I consume. I saw that in hair care, Miss India and Miss World 2000 my color was, the fact that I had dry for Anomaly, it’s natural everyday we’ve not really had environmentally at the age of 18 and became one of skin, my hair was super frizzy. I used beauty,” she said. “Not the blown- sustainable sort of hair care which is Bollywood’s biggest stars. It was in to be super conscious about every out, silky hair. It’s all kinds of hair, clean and really good for you but also 2015 that the U.S. truly took notice of part about everything about myself.” everyone’s hair. It’s every gender. It’s affordable for everyone.” her, when she starred in ABC’s thriller Over time, she’s developed a every color. It’s every kind. That is As a global UNICEF Goodwill series “Quantico.” She currently has sense of self and confidence, she the idea of Anomaly, that all of us are Ambassador, the topic of 59.9 million followers on . continued. “Beauty has become a anomalies.” ■ 2021 WEBI NARS Partner with Beauty Inc Editors on the virtual event medium of the moment, focusing on the following topics:

BeautyVest Webinar Series: Masterclass Webinar Series: Taking a deep dive into Showcasing top level brand executives who will emerging brands, markets, share their strategic vision and strategies to innovation and leadership implement in 2021 and beyond

FOR MORE INFORMATION, PLEASE CONTACT RACHAEL DESANTIS, BEAUTY DIRECTOR AT 203-581-3868 OR [email protected] SPECIAL REPORT China's Changing Regulatory Landscape 10 JANUARY 29, 2021 An Expected Change in China’s Animal-Testing Policy Whips Up Excitement Beauty industry experts foresee a new law regarding imported ordinary cosmetics could be implemented in coming weeks. BY JENNIFER WEIL, TIFFANY AP AND RYMA CHIKHOUNE

IT’S LOOKING EVER MORE imported products from any country likely that ethically-minded beauty must have a certificate issued by brands will be able to sell what's the authorities of the exporting known as ordinary cosmetics to China country declaring the product has directly without the current requisite been produced according to Good animal testing, even if an official Manufacturing Practices. announcement hasn’t been made A second draft of the legislation there yet. was released in November 2020 for Over the past two weeks some public comment. European nations, led by France, have “Publication of the final started laying the groundwork for their implementing law is expected in the beauty companies to begin filing the coming weeks,” said the Cosmetics paperwork possibly needed to launch Europe representative. ordinary cosmetics — such as shampoo, Special cosmetics, which include blush, mascara and fragrance — in products for children or with active the world’s second-largest and swiftly claims like SPF, brightening or growing beauty market. anti-wrinkle, will not be affected by China is a country that until now the anticipated changes and still be many brands, particularly indies with required to undergo animal testing. The Colorist, one of China’s a strong animal-welfare ethos, have Many EU nations — including fastest-growing retail concepts. eschewed, although it offers massive Poland, Spain, Belgium and Austria — sales potential. follow GMP for manufacturing and can “It will take time for all the hesitated to enter the market may The onshore Chinese beauty market issue GMP certificates for exports, but regulatory changes to be finalized now do so while getting less criticism was estimated to reach 425 billion yuan, there is not currently an EU-wide legal and testing to be done for all these from animal-rights activities. The or $65.75 billion, as of 2019, according basis for EU Member State authorities brands. The initial focus will be on keyword here is ‘less,’ because brands to a December 2020 Goldman Sachs to issue GMP certificates that would be larger corporations like L’Oréal,” are not completely off the hook from report. The bank expects China’s required by the Chinese authorities. continued Lau. “I think they will get animal testing in China.” domestic cosmetics spending will grow “Given the importance of the the first wave of approvals for sure.” Until now, some cruelty-free at a 12 percent compound annual Chinese market for EU exporters, The race to enter China should be on brands wanting to launch in China growth rate between 2019 and 2025, to more and more EU Member States everywhere in the EU — and around use cross-border e-commerce to more than 1 trillion yuan. have started reviewing their policy the globe — at some point soon. forego pre-market testing, although Big beauty players are lauding the and are working on a process that will “It’s illegal to privilege one country there are per-shopper spending caps. probable shift in China’s policy. allow them [to issue] GMP certificates over the other when it comes to “Fenty Beauty, for example, has “We are pleased with this in the future,” said the Cosmetics the EU,” said Jean-Philippe Benoist, entered the Hong Kong and Macau significant progress for which we Europe representative. “Thanks to founder of China-based distribution market, where animal testing is not have worked with industry and an intense collaboration between the company GED. “And then it will required, and can reach Mainland public authorities to achieve,” said a industry and authorities, France has be the U.S., Japan and Korea. It’s Chinese consumers through L’Oréal spokeswoman. succeeded to newly develop a process the same. It’s breaking the rule of Xiaohongshu,” said Malmsten, At Unilever Prestige, Vasiliki Petrou, for issuing GMP certificates, and it is the WTO to privilege one series of referring to the social media and vice president and group chief executive hoped that more European countries, countries [over] others.” e-commerce platform. officer, said: “We are continuing to who do not have such processes in The hope is that those beauty Tmall Global sells the brands Drunk sell cross-border e-commerce and feel place yet, will follow soon.” brands that fulfill the criteria would Elephant, , , optimistic about the changes due to Yet Amanda Nordstrom, no longer need to have their products and to Mainland China. Some happen in China, but are waiting for the company liaison for PETA’s Global tested on animals for eye and skin brick-and-mortar retailers there have full details to be published.” Beauty Without Bunnies program, irritation in Chinese laboratories. in-store corners where consumers Over the last few years, China cautioned: “It’s important to note, “We believe China is undergoing a can try out Western brands and then has gradually been loosening its however, that these proposals are major change in terms of cosmetics order them online. Harmay, a Chinese regulations on animal testing. currently awaiting feedback from the imports,” said Benoist. “You have beauty e-tailer from TaoBao, has also In 2014, China introduced the Chinese government as to whether or to be cautious when it comes to begun opening offline stores, such as a option for local manufacturers to not they will meet the requirements, announcements. It’s not official yet.” Beijing-based outlet, with cross-border replace mandatory animal tests of and have not yet been approved.” And new policy doesn’t necessarily products to sample. ordinary cosmetics with an in-house “There are still many unclear mean that tests will never be done Meanwhile, beauty brands like NYX, safety assessment. That incentivized factors to how they will actually on animals for ordinary cosmetics Cosmetics, CoverGirl, BareMinerals some foreign beauty brands to proceed with testing in China,” imported to China. and ColourPop have opted to remain establish production facilities there. continued William Lau, vice “Products may be subject to ‘post- outside of China. According to a Updated Chinese cosmetics president of brands at Ushopal market’ testing,” explained Allison Cosmetics Europe report. legislation, or CSAR, was adopted by Group, a beauty distributor that Malmsten, China market analyst at China’s domestic beauty market is the country’s State Council in June partners with brands including Daxue Consulting, who said special expected to be 10-times bigger than 2020, and a draft implementing law Natura Bissé and Chantecaille in products will still require animal the cross-border e-commerce market, came out in August 2020. China. “From an overall impact testing. according to Benoist. “It foresees the possibility for perspective, it should still have a one- Post-market testing is an unlikely That could be boosted by an influx imported ordinary cosmetics to waive to-two-year gap … purely due to all event but one that could still occur, for of Western brick-and-mortar beauty the mandatory animal tests by an in- the brands coming into the market.” example, in the case of a product recall. retailers, as well as brands, into China. house safety assessment,” explained Still, he doesn’t expect ordinary “This means that brands for whom “It’s going to be very interesting to a representative from personal-care Western brands to start popping cruelty-free is central their image will see the landscape in a few years,” said association Cosmetics Europe. up left and right just because the likely not enter China,” she continued. Mette Knudsen, CEO and partner at

The draft legislation states that regulatory environment is more open. “However, brands that had previously Knudsen & CRC, based in Shanghai. Photograph by Tiffany Ap SPECIAL REPORT China's Changing Regulatory Landscape 11 JANUARY 29, 2021

— which is currently sold on TaoBao and will be launching on Tmall on Feb. 1. What sets these U.S. brands apart is the quality of their products, said Benoist, adding both RéVive and Clark’s Botanicals focus on clinically proven, result-driven formulas. “The way that we’ve been approaching the Chinese market is from the very core, basic intent of: ‘How do we make your skin look better tomorrow than today?’” said Clark's Botanicals founder Francesco Clark. “‘Let’s look at the clinical data of human skin, and how we boost your radiance from the inside out.’ When you start to look at it that way, from a scientific point of view, then you start to have more quantifiable data as to why your product works and that’s exactly what the Chinese market likes.” Clark's Botanicals’ projection of growth this year is “10-times more than last year.” added Clark. “[The new regulation] is an opportunity for Young Chinese consumers are increasingly interested in pets. independent, quality brands to really grow and scale in a sustainable way.” the craze for pets rises in China. “The Chinese consumer does not How China’s Beauty “The Chinese consumer — just buy on impulse — most of them specifically the young generation — is research about the brand’s values totally addicted to pets,” said Florence and ingredients, what’s good for Bernardin, owner of Asia Cosme Lab, them and harmful,” said Knudsen. Market Might Morph a trends and consulting agency. “The brands that understand this If China shifts its stance on animal testing on In China, the pet industry is type of consumer will definitely be products, as expected, the country’s beauty expected to reach $66.8 billion 2023, successful in China.” up tenfold from 2013, according Yu noted the top and bottom tier market could see a significant transformation. to market research firm Frost & of the Chinese beauty market are BY JENNIFER WEIL, TIFFANY AP AND RYMA CHIKHOUNE Sullivan. Chinese Millennials are the booming. driving force behind this booming “Our recommendation is that brands IF THE GREEN LIGHT IS China already: that during the last market, with people under 30 start to prepare [to enter the market],” given to foreign ordinary beauty six months numerous beauty brands accounting for 45.2 percent of total said Knudsen, ticking off elements brands to enter China without have been moving part of their pet ownership in the country in 2019. such as documents for product mandatory animal testing, it could be production to the country in order to “I think it's still premature to ingredients and raw materials. transformational. launch there without animal tests. assume that the concern around One of the biggest stumbling “It will have a huge effect. Indie Another possible reason for the cruelty-free can naturally and blocks for a Western brand entering brands are so much in demand in shift is that during the COVID-19 consciously drive mass shopper China is if they do not protect their China now,” said Mette Knudsen, crisis, sustainability has become behaviors in a short time,” said Amie intellectual property rights. chief executive officer and partner at more important to Chinese beauty Wang, a director at the consultancy “My best advice is to treat [China] foreign investment consulting firm consumers, especially young ones, WE Red Bridge. “But [as] we saw as their second home market, in Knudsen & CRC, based in Shanghai. who might be critical of brands the pet ownership rising with the regard to resources,” she continued. “This will obviously make the shipping products from far away. youth, I think consumers will change “It’s very important to research the market more diversified and “There is a good opportunity for their perspective, which will help the market and really understand who probably open to more competition,” Western brands with a sustainability cruelty-free brands’ boom.” they are targeting and what they said Jason Yu, managing director of concept, to be able to educate “Zero tolerance to animal cruelty stand for,” added Yu. “They must Greater China at Kantar Worldpanel. consumers in China,” said Yu. “More is going to be more on people’s have a hero product or a hero “For the brands, this will bring some and more middle-class consumers agendas. They will start supporting sku that can be a blockbuster — significance,” he continued, adding will become [increasingly] conscious brands that have a similar ideology,” very easily communicated on the that for the Chinese consumers, maybe about the environment and their agreed Yu. “That is probably going internet, on social media, which it will not be as significant, since many social responsibilities.” to be a very interesting, longer-term is very important.” are already very familiar with and However, for the time being, growth opportunity for some brands.” “China is the only country where if buying foreign beauty brands thanks awareness surrounding animal Jean-Philippe Benoist, founder of you have one successful product, you to social media and travel. testing and cruelty free is still low. China-based distribution company can really create big business,” added Especially during the coronavirus “Frankly speaking, Chinese GED, believes that clean U.S. beauty Bernardin. pandemic, when travel was limited consumers are not so aware of brands that have successfully entered Filorga, for instance, made its or stopped, e-commerce — including non-animal testing in cosmetics the Chinese market are “supported name in China with one mask. cross-boarder commerce — has been — perhaps just a small number of by their success in the U.S., not Another complication for foreign booming in China. Online sales today people,” said Angelita Hu, managing because they are clean per se. The beauty brands entering China is generate more than 40 percent of editor and regulatory analyst Chinese, above all, they want results,” figuring out how they should be overall beauty revenues in the country. at ChemLinked, a compliance he said. “They don’t care about distributed through brick-and-mortar And when there are no travel consultancy. “But in recent years, bling-bling. They don’t care about in a market that’s largely online. restrictions, the daigou cross-border consumers have increasingly favored noise. They want quality and results. Still, such hurdles are not likely channel and travel retail are other clean beauty, which also includes If they don’t get it, [the brand] will going to be dissuasive. popular ways for the Chinese to cruelty-free cosmetics.” disappear. It will vanish.” “All the brands will come [to purchase foreign beauty brands. Cruelty-free and vegan brands GED works with RéVive Skincare China],” said Benoist. “I see this

Knudsen noted a recent shift in should strike a chord, particularly as and, more recently, Clark's Botanicals coming already.” Imagine china photograph via AP Images EYE CANDY 12 JANUARY 29, 2021

Fendi Prada Missoni Ermenegildo Zegna Mr. Original

¬ A celebration of individuality self-expression often resulted in reverberated from the recent Paris longer coifs, like the various bobs and Milan’s men's ready-to-wear noted at Prada, MSGM and Etro, virtual presentations for fall 2021, for among others. which makeup artists and hairstylists “The look took inspiration generally opted to enhance each from the desire of freedom and model's own personal beauty — rather travel, but at the same time, it than shoehorn them into a single look. was intended to enhance the ’s creative and image individuality and uniqueness director for makeup Peter Philips of each person,” said Davide kept things unfussy. Diodovich at Etro. In particular, “It’s a very natural look, with he referenced mullets because beautiful skin,” he said before “it's a very fluid and unisex cut.” shooting the fashion collection’s “Respecting the individuality video. “There are nice hydrated of each model, this style was lips and a little bit on the eyebrows. customized according to each hair There’s no conceptual makeup.” texture,” he said. Similarly, hairstylists respected In Paris, individual beauty was each texture, delivering an array of also featured at Homme Plissé different looks, as seen at houses Issey Miyake, Isabel Marant, Dries including Ermenegildo Zegna and Van Noten and Officine Generale. in Milan. Such a freedom of —Sandra Salibian and Jennifer Weil Etro

Dior Dries Van Noten

Homme Plissé Issey Miyake

Isabel Marant Ofcine Générale Prada photograph by Simone Lezzi; Etro Giovanni Giannoni