Copyright © 2020 HPCiMedia. This publication may not be distributed without prior permission. 27 July 2020 Issue 28 cosmeticsbusiness.com NEWS BUSINESS 2 EXPERT ADVICE 7 DIGITAL 8 PEOPLE 11 The US hits French cosmetics How technology is driving Huda Beauty crowned 2020’s Journalist Stacey Dooley lands companies with 25% duties Gen Z to beauty brands most popular beauty brand ambassador role with Clairol L’ORÉAL CLOSES CLARISONIC SKIN DEVICE BRAND The facial cleansing device brand was aquired by L’Oréal USA in 2011 ’Oréal is closing down its facial cleansing device brand Clarisonic. L The brand, acquired by L’Oréal USA in 2011, will be shutting down as of 30 September 2020, when it will cease to sell devices, brush heads and attachments. In a statement shared with Cosmetics Business, L’Oréal said: “Clarisonic has played an instrumental role in up-skilling and ultimately expanding L’Oréal’s knowledge and expertise beyond cosmetics and personal care products to the benefit of all L’Oréal brands. “L’Oréal will continue to leverage the know- how acquired through Clarisonic to continue to develop our own brands’ devices.” Clarisonic confirmed it would not manufacture its products under a third-party nor would they be available under any other brand name. In FAQs on its website, it stated: “This difficult decision was made so that L’Oréal can focus its attention on its other core business offerings.” It added: “We want to thank all of our loyal customers, dermatologists and partners who have helped put this brand on the map. It has been our absolute pleasure to serve you all of these years.” The brand is running a 50% off sale and is encouraging consumers to ‘take advantage’ of offers in order to have enough brush heads to use on devices already bought. © Filippo Monteforte, Getty images It said that it could not guarantee stock after VALENTINO has revealed singer-songwriter and actress Lady Gaga as the the brand’s closure, although some partner face of its new fragrance launch Voce Viva. retailers may continue to have skus. The perfume, designed by Creative Director Pierpaolo Piccioli with The brand’s subscription service and loyalty Valentino Beauty, is inspired by inclusivity and individuality. Lady Gaga said: rewards will cease from 1 October. “Be yourself, love who you are and never give up your dreams.” Regarding customer information registered The multi-award winning musician and actress – a recipient of an Oscar, with the brand, it stated: “Clarisonic is part of the Grammy, BAFTA and Golden Globe – is described by the luxury Italian brand L’Oréal family of brands. as ‘the voice of a generation’. The Voce Viva advertising campaign will be “So while the Clarisonic brand will not be revealed in September, when the new fragrance will hit shelves worldwide. marketing new products, we hope to keep caring for your skin.” @cb_beautynews Cosmetics Business cosmeticsbusiness BUSINESS Copyright © 2020 HPCiMedia. This publication may not be distributed without prior permission. LUSH TO DISCONTINUE 150 PRODUCTS AFTER CEO REFLECTS ON LOCKDOWN NEWS ush has announced the discontinuation of more opportunities as we make room to create 27 July 2020 150 products, representing over 20% of its things that are best in their class – fewer entire collection. products, that give you better results.” Issue 28 L The UK-based cosmetics maker said its CEO The brand said it would “take a while” before cosmeticsbusiness.com Mark Constantine had used his time spent on all of the products are gone, but its newly- lockdown to reflect on the brand’s products and launched Lush Kitchen Subscription Box would identify those that no longer align with its contain some of its retro favourites and give Editor ‘master plan’. subscribers the chance to vote on its contents, Lucy Tandon Copp Constantine considered whether each product which could result in the return of a much-loved Features Editor was number one in its category, served customers’ but discontinued product. Sarah Parsons needs and were part of a so- Senior News & Social called ‘cosmetic revolution’. Media Reporter Among the products being Becky Bargh culled are skus from across many Sub Editor categories including bath bombs, Austyn King bath oils, bubbles, shower, body, face, make-up, oral care and hair. Head of Print & The brand’s entire Beyond Digital Production Foundation Liquid Foundation Ross Murdoch range will be discontinued, along Art Editor with long-time staples such as Sibylla Duffy Karma Kream, Naked Dream Digital Production Cream, Shimmy Shimmy, Ultra Megan Daly balm and Baby Face cleanser. Managing Director In a release, Lush noted: Colin Bailey-Wood “There are bound to be some disappointments but far many PHYTO OWNER ALÈS GROUPE The US hits French companies ENTERS ADMINISTRATION with 25% duties in tax row Cosmetics Business Alès Groupe, the owner of beauty brands Phyto HPCi Media Limited and Lierac, has entered administration. French cosmetics companies will be required to Natraj Building The company filed for bankruptcy proceedings pay a new 25% tax on products imported with The Tanneries, at the Tribunal de Commerce de Paris in France, a trade value of approximately US$1.3bn. 55 Bermondsey St, where it is headquartered, on 6 July. The Office of the United States Trade London SE1 3XG Alès Groupe said it would consider all options Representative (USTR) announced that the +44 20 7193 1279 to allow it to continue operations and support its additional duties were being rolled out in [email protected] employees, including outside investment. While response to France’s Digital Services Tax (DST), it hopes to secure a recovery plan, a company which it deemed “unreasonable or discriminatory” Subscriptions closure could also be on the cards. and to “burden or restrict” US commerce, +44 20 7193 1279 On 29 June the company suspended the trading following an investigation. [email protected] of its shares. The cosmetics company has been in Although President Trump’s administration has Editorial financial difficulty for some time; between 2015 confirmed a 180-day suspension period before +44 20 7193 9502 and 2018 it lost approximately h30m and the tax comes into effect, it outlines the exact [email protected] implemented a recovery plan. products that will be slapped with the new duties. In 2019, cosmetics These include products for lips, eyes and nails, distributor Co-Capital including manicure and pedicure skus, as well as acquired a minority stake skin care products, sunscreen, soap and, in the group and appointed specifically, organic skin washes in liquid or ©HPCi Media Limited Frédéric Poux as Chairman. cream formats. Articles published in this publication may only be reproduced with permission. The Founded by Spanish-born France’s DST is 3% and covers transactions publisher accepts no responsibility for any hairdresser Patrick Alès in of US companies with estimated revenues of statements made in signed contributions or in approximately $15bn in 2020. Expected those reproduced from any other source. 1969 with Phytosolba ISSN 2057-1984 Laboratories, Alès Groupe collections equal $450m in taxes from US carved a niche in the hair care companies in 2020, and anticipated collections sector. Alès, credited with could reach over $500m in 2021. inventing ‘le brushing’ blow- The US conducted an investigation into the dry technique, died aged 88 DST in 2019, which included public comments in 2019. and a hearing with witnesses. 2 cosmetics business 27 July 2020 Copyright © 2020 HPCiMedia. This publication may not be distributed without prior permission. BUSINESS BEAUTY BRAND VELOUR COMMITS TO NEWS IN BRIEF DROPPING MINK FUR EYELASHES BY 2021 elour, the eyebrow and eyelash brand, has Its Luxe Faux Mink Collection was created confirmed it will remove the sale of its exclusively for Ulta Beauty and each sku features V mink fur eyelashes by 2021. a band made of cotton. The US brand’s founder and CEO Mabel Lee The decision follows a campaign by animal said that Velour is committed to “transitioning rights group Peta US, which said it had sent the out of mink” and as of this year has not restocked brand a box of vegan chocolates to show its any of its mink skus. gratitude. “When it comes to cruelty to animals, She said: “2020 has been a year of trials, fur eyelashes are no different from a fur coat,” THE NPD GROUP has revealed Germany’s sales of triumphs and uncertainty, but most importantly – said Peta Director Elisa Allen, when discussing luxury beauty products education and growth. the cruelty suffered by animals. outperformed in the first five “We, at Velour Beauty, are known for our months of the year, with the innovative, high-quality portfolio of natural country registering a loss of lashes. When I first started the brand, our 23%. The figure is the mission was to make lashes approachable to smallest decline experienced everyone and the promise is to provide high- among the five biggest quality lashes that are soft, natural-looking, and European prestige beauty markets with the UK, Spain, easy to apply for all-day comfort. France and Italy all “To achieve the standards that we are known experiencing larger sales for, some of our collections have included mink impacts. Part of the reason as a key component. behind Germany’s relative “Velour will always stand by our commitment success is that it endured to innovation and challenging the status quo as the shortest period of store we evolve and grow as a brand.” closures due to the Covid-19 The brand already sells alternative faux mink pandemic, with retail fronts shuttered for five weeks eyelashes made from 100% synthetic hair, which from 16 March to 19 April. are said to have a natural shine and be lightweight During the closure, upon application.