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COSMETICS with a CONSCIENCE Driven by Fair Trade Principles, Purearth Helps Marginalised Producers Engage with Urban Markets, As Founder Kavita Khosa Explains

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COSMETICS with a CONSCIENCE Driven by Fair Trade Principles, Purearth Helps Marginalised Producers Engage with Urban Markets, As Founder Kavita Khosa Explains Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. Business Retail Innovation Brands ASA orders L’Oréal Paris opens retail Cosmetic manufacturers fight Bluebeards Nourkrin to outlet in Milan pollution with plant extracts moves into change advert page 6 page 9 hair styling page 2 page 10 cosmeticsbusiness.com twitter.com/cb_beautynews 23 March 2015 NEWS Issue 10 Revlon sees strong growth in 2014 Revlon put in a sterling financial performance for the year ended 31 December, 2014. Total company net sales grew from $1,494.7m to $1,941.0m, with growth registered across Revlon’s consumer and professional divisions. Total segment profit also increased, up from $352.3m to $452.4m. EBITDA grew from $265.7m to $338.1m, while diluted EPS grew from $0.47 to $0.76. Looking at the consumer segment, net sales were driven by colour, Revlon ColorSilk hair colour and Mitchum products, partially offset by lower net sales of fragrances, Almay colour cosmetics, SinfulColors and Pure Ice colour cosmetics. LONDON’S SOMERSET HOUSE PAYS Meanwhile, in the professional segment, growth was fuelled by HOMAGE TO ART OF GROOMING higher sales of American Crew, A free exhibition is now on show that celebrates the ongoing trend for facial hair Revlon Professional, CND nail featuring more than 80 pogonophiles – or beard lovers – from around the world products and Creme of Nature. Revlon President and Chief ocusing on the growing trend for facial set up by Australian charity campaigner Jimmy Executive Officer, Lorenzo hair, London arts venue Somerset House Niggles in support of early skin cancer detection Delpani, said: “2014 was a Fis currently hosting an exhibition featuring and treatment.” The images have been posted year of significant change and images of more than 80 pogonophiles – a term on Instagram, while a grid-like gallery display transformation, resulting in for people that love or study beards. on one wall nods to this social media tie-in. strong growth for Revlon’s The free exhibition, called BEARD, runs from business. We integrated TCG 5-29 March and comprises a series of portraits The exhibition comes at a time into the company and delivered of men from across the world, captured by award- when the trend for facial“ hair is at the expected synergies and winning photographer Brock Elbank. “ related cost reductions. We Curator of the exhibition, Stephen Doherty, its peak – and shaving product sales re-designed our organisation told CBN: “The idea of the exhibition is to are on the decline and significantly increased our showcase a wide range of styles of beards on a investment to build and support broad cross-section of people and to demonstrate The exhibition comes at a time when the trend our key brands.” that beards are worn and cultivated by more for facial hair is at its peak – and shaving product Delpani continued: “We than just ‘hipsters’ from East London. We have sales are on the decline. The overall male launched our Revlon Love everything from a footballer to a fisherman, and grooming market continued to stay afloat in Is On campaign in November a knight of the realm to a gentleman in his 70s several European countries in 2014; the UK 2014 and our Almay Simply who spends his time collecting tractors.” registered growth of 1.4% to £659m, according to American campaign in January Not only is the exhibition representative of a Kantar Worldpanel. However France, Germany, 2015. Thanks to our strategy major male grooming trend, but it also has a Italy, Spain, the UK and the US all experienced of value creation and the charitable aspect too. Doherty revealed: “The a slide in sales of shaving products. Tellingly integration synergies, our photographs were taken as a series of images in P&G recently reported a 2% dip in razors and 2014 financial performance support of the charity Beard Season, which was shaving accessories to $3.7bn. was the best in many years.” 23 March 2015 cosmetics business news 1 Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission. business L’ORÉAL MOVES INTO THE IVORY COAST osmetics giant L’Oréal has signed Coast is a fast-growing market where beauty an exclusive agreement with distributor products have a strong appeal among local CCFAO, which will see its cosmetics consumers. It is crucial for L’Oréal to increase NEWS produced and distributed in the Ivory Coast. its presence in these expanding markets.” Through the agreement, the company aims Richard Bielle, Chairman of CFAO’s to accelerate the expansion of its brands into Management Board, added: “Our strategy CONTENTS key markets in French-speaking West Africa. in West Africa is to offer major international There is already a manufacturing facility brands a manufacturing and distribution tool Business: Brazil speeds up cosmetics approval processes 4 in the Ivory Coast that L’Oréal will be able to suited to the markets they wish to tap into. This use to develop its hair and body care brands new partnership is in line with CFAO’s strategy Trends: Global sun care market in the region more efficiently. of encouraging the consumption of innovative, boosted by emerging markets 5 Geoff Skingsley, L’Oréal’s Managing Director quality products in West Africa.” Retail: L’Oréal Paris opens for Africa Middle-East Zone, said: “The Ivory Read more at cosmeticsbusiness.com Milan boutique 6 Expert Advice: Purearth’s Kavita Khosa discusses ethical beauty 7 ASA orders Nourkrin to Digital: Social media stars ‘blog for bunnies’ 8 change supplement advert Hair supplement brand Nourkrin has been Innovation: Manufacturers investigate anti-pollution extracts 9 instructed to change one of its adverts displayed on a London Underground platform by the Brands: Clinique launches new Advertising Standards Authority (ASA). masks 10 A complaint was lodged with the ASA People: Luma Grothe for L’Oréal 11 challenging a Nourkrin Woman advert over The Final Word: L’Occitane’s Cedric claims that it is “scientifically proven” and health Khan talks anti-pollution trends 12 claims that are required to be authorised on the EU register. News Editor Lucy Copp LAUDER SHARES HIT YEAR HIGH The complainant also challenged ‘before and Reporter Georgia Seago Estée Lauder shares touched $81.2 shortly before after’ images of a women who had used Nourkrin Freelance correspondents going to press, marking a 12-month high. in relation to claims in the advert. Sarah Cohen, Eugene Gerden, Adrian Lauder’s CEO is taking advantage of the share When ASA investigated this matter, they Holliday, Patricia Mansfield-Devine, price spike, selling close to the top; in the past considered text that read “The original hair growth Kamala Thiagarajan few weeks Fabrizio Freda sold 36,000 shares supplement” and “supports the normal hair Production Designer Ross Murdoch at an average $82.24 price, worth almost $3m. growth cycle”, alongside photos of a woman with Art Editor Sibylla Duffy Another Director, Charlene Barshefsky, also thicker hair allegedly after using Nourkrin. Digital Production Nita Salem sold shares recently, worth almost $270,000. The ASA said in its ruling: “We considered that, Editorial Director Erika Hatva In addition, Lauder – parent company to Aveda, in the context of the ad, the text “...scientifically Managing Director Colin Bailey-Wood Aramis, Clinique and Jo Malone – revealed proven” suggested that it was scientifically proven HPCi Media Limited upbeat earnings per share of $1.13 for that the product could increase hair growth Unit 1, Vogans Mill Wharf, 17 Mill Street, the quarter – better than expected. in women who experienced thinning hair. London SE1 2BZ, UK Lauder’s Chinese fortunes appear particularly “We were concerned, therefore, that the implied +44 20 7193 1279 encouraging, with investment in e-commerce and claim in the ad that Nourkrin helped to increase mobile platforms. Colour cosmetics was hair growth in women who experienced thinning Editorial +44 20 7193 9502 [email protected] the growth driving category for Lauder in Q2 hair went beyond the authorised health claim and Subscriptions +44 20 7193 1279 2015, said Ildiko Szalai, Beauty and Personal suggested that Nourkrin would help to reverse [email protected] Care Senior Analyst at Euromonitor, and is now the issue of hair that was thinning, rather than responsible “for some 40% of Estée Lauder’s only contributing $3bn revenues for the quarter. Innovation to the maintenance Subscription Details in multifunctional colour cosmetics and of normal hair growth.” The subscription includes full digital access to the expansion of distribution channels with free The ASA investigated cosmeticsbusiness.com website, standing, flagship brand stores, such as MAC, the other issues raised as well as the weekly Cosmetics are driving trends in the category”. and upheld the Business News and monthly Financial analysis website Seeking Alpha complaint, meaning that Cosmetics Business Markets claimed shares of Estée Lauder trade at a 62% the ad must not appear print magazines. premium in terms of its price-sales ratio. It said: again in its current form. “Compared to Coty, Estée Lauder is expected Nourkrin is a UK ©HPCi Media Limited to grow revenues more than five times faster next brand that specialises Articles published in this newsletter may only year. In our view, this premium is worth it.” in hair loss products be reproduced with permission. The publisher accepts no responsibility for any statements However, the analyst community does not and treatments for both made in signed contributions or in those speak with one voice; share price target estimates men and women. reproduce from any other for Lauder vary from $95 to $75. Read more at source. HPCi ISSN 2057-1984 media Read more at cosmeticsbusiness.com cosmeticsbusiness.com 23 March 2015 cosmetics business news 2 Copyright © 2015 HPCi Media.
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