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.”

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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

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LEE STAFFORD EXPANDS US FOOTPRINT NEWS IN BRIEF ritish hair care brand Lee Stafford has in the spotlight in the US – just look at the recent The facial mask category has revealed it is expanding its product range Vanity Fair article on British talent in Hollywood experienced an upsurge in Band reach in the US this year. or the explosion of British fashion in the US usage, from 35% in 2013 to Having first launched into US stores Ulta retail market – [so] it’s a perfect time for us to 39% in 2014, according to and Target several years ago, 2015 marks a big expand our presence. Our vision is to bring over Mintel research in the US. expansion drive in this region as many products from the full Now considered more than for the brand. Stafford told family collections as possible an emerging category trend, CBN: “My product line has in the next year.” Mintel researchers suggest been a beloved and bestselling The brand launched its Dry the rise in popularity of masks stems from a wider brand in the UK for a long Shampoo product in Ulta and industry move toward more time and it’s always been ulta.com this week, which customised, diagnostic-led my intention to see the US followed the mid-February skin care solutions. product availability mimic launch of the Ubuntu Oils the wide range of products collection. “My products are Plastic parts manufacturer carried in the UK. It’s such unique and fit a variety of hair Sinclair & Rush, through an exciting time for my brand care needs, so being able to offer its VisiPak division, has and I feel the US consumer has a range of products allows successfully completed the acquisition of the assets of really taken to the products the brand to cater to what Tulox Plastics Corporation of available to them now, and the customer requires, which Marion, Indiana, a manufacturer I look forward to seeing what could vary day-to-day, but also of clear plastic packaging else is to come.” by hairstyle and season,” Stafford revealed. containers. The move expands Stafford explained that the US is particularly “We hope to bring over the Hair Growth the current line of plastic tube receptive to British brands at the moment: Shampoo and Conditioner, which complement containers to include additional “British brands and talent are definitely my Hair Growth Treatment available at Ulta.” shapes, sizes and closure styles.

Ingredients company Seppic INTER PARFUMS RETURNS TO has been awarded the Mass PROFIT IN FOURTH QUARTER Balance supply chain Inter Parfums, the fragrance partner for brands certification for its main including Karl Lagerfeld, Lanvin and Jimmy production site in Castres, Choo, has reported $3.3m worth of fourth France. The certification quarter profits on revenues of $125.1m. ensures that the amount Though modest, the positive profits news of sustainable palm oil derivatives entering the contrasts with a 2013 loss for the same period. production chain is equal The stronger numbers saw Inter Parfums’ share to the amount of sustainable price inch higher to $27.8 (though its stock has palm derivatives for sale. sold for as high as $37.7 in the last year). The more bullish financials saw the New York- WomenCorporateDirectors based company hike 2015 earnings guidance (WCD), an organisation that to $1 per share from $0.98, and an 8% increase recognises companies and in the annual dividend to $0.52 per share. CEOs who lead their industries in corporate governance “In 2014 ongoing brand sales were ahead in practices, has named its 2015 all regions; in particular, our three largest China’s advertising watchdog has fined Visionary Award winners. markets: Western Europe, North America and P&G’s Crest toothpaste division over L’Oréal won the award for Asia had sales growth of 14.4%, 13.6% and 9.2%, false advertising. Leadership and Governance respectively,” said Inter Parfums Chairman Jean The Shanghai Administration for Industry of a Private Company. Women Madar. “However, net Inter Parfums sales are & Commerce posted on its official Sina manage nearly half of L’Oréal’s now expected at $470m, down from the previous Weibo microblog – a social media site akin global brands, and 70% of the $480m guidance implying,” said Raymond James, to Twitter or Facebook – to announce it had company’s global Research & Innovation workforce is female. Analyst at Joseph Altobello – a decline of 6% fined P&G nearly ¥6.03m (US$963,000). The post said the brand had overplayed from last year’s $499m. “Since a portion of Inter the effects of some of its toothpaste and Cornish organic skin care Parfums’ sales represents exports of products used software to ‘touch up’ images to make company Spiezia Organics to the US, this provides a boost to margins,” teeth look whiter. The fine was described is planning to expand after added Altobello. by different Chinese media outlets as the securing a contract to supply Inter Parfums was also boosted by a resurgent biggest fine of its type ever to be recorded. a new selection of shampoo, US dollar. “While we are encouraged by these Crest also took to its microblog over the conditioner and body wash results,” Altobello said, “we believe this local issue. It said that it had removed the advert products to Brown’s Hotel in Mayfair, London, for currency top-line momentum, along with Inter in question in the middle of 2014. It did not reveal whether it had plans to appeal the guests to use from April. Parfums’ strong balance sheet – $9 per share fine. Read more at The company plans to in net cash – is largely priced into shares at this cosmeticsbusiness.com expand its manufacturing point.” Inter Parfums releases its first scent for and production base. Oscar de la Renta, Extraordinary, in May.

NEWS IN BRIEF BRAZIL SPEEDS UP APPROVAL PROCESSES razil’s National Health Surveillance undergoing the process of full registration. German packaging group Agency (Anvisa) has enforced changes However, those considered high-risk, such Optima has reported a 10% growth in fiscal year 2014. Bto its cosmetics approval system, as sunscreen, hand gel, children’s products and Turnover was u33m, showing in a bid to simplify and speed up its lengthy self-tan, will require registration and must positive development that regulatory process. be approved by Anvisa. is expected to continue. The new system states that some cosmetics, In its announcement, Anvisa reiterated that Over 85% of the company’s such as face cream and the standard does not change packaging machines were toothpaste, are now only the parameters or safety sold abroad. The company required to undergo requirements of cosmetics employs 1,900 people. a notification process, while in Brazil, and that to ensure In comparison with the previous year, the number others will require an in-depth quality is not affected, ‘periodic’ of employees worldwide registration process. and ‘random verification’ rose by almost 6%. The aim of the rule change procedures will be carried out. is to simplify and streamline the The latest change to the Full service provider processing of certain cosmetics system follows years of lengthy Swallowfield has increased in the country so that Anvisa approval processes for cosmetics its hot pour capability and will be able to ‘focus its analysis in Brazil, which are said to have extended its range of specific on riskier products’. resulted in industry complaints hot pour products, allowing it to compete with Far Eastern Cosmetics are separated based on their risk surrounding the delay of new product releases, manufacturers. The company level; those that are deemed low-risk can which also similarly affects the launches of new has invested in two highly be cleared for market entry with just an online drugs and medical devices. automated hot pour lines at its pre-marketing notification, saving them from Read more at cosmeticsbusiness.com cosmetics site in Devon, UK, to offer a wider range of pack options and products. P&G TO HIKE COSMETICS PRICES IN RUSSIA BY 30-50% L’Oréal USA has announced a partnership with mobile Russian retail chains and specialised beauty platform PowaTag, whose retailers may suspend the purchase of cosmetics technology can transform from some global cosmetics producers operating any consumer touch point – in the market due to potential price increases, from print and TV advertising which have already grown by 10-15% since to e-commerce, retail stores December 2014. and social media – into The reaction follows a recent announcement a platform for mobile from P&G – a leader in the Russian cosmetics transactions and promotions on a smartphone. Instant market – which revealed the company plans to purchases can be completed increase its prices in Russia by 30-50% from online through PowaTag 17 March onwards. on mobile and desktop. According to the company, prices will increase both for imported and domestically-made Fragrance, flavour and cosmetic ingredient Packaging company Smurfit products. For the latter, the increase is mainly supplier Symrise has surpassed its financial Kappa has agreed to acquire due to the use of imported substances and targets for 2014 – and topped the u2bn Grupo CYBSA, a non-integrated components in production. sales mark for the first time. corrugated, folding cartons and The company has already notified Russian Sales grew by 18% at local currency rates flexible packaging manufacturer to u2.12bn, while EBITDA shot up 24% retail chains about the forthcoming price hikes, with operations in El Salvador to u464.5m. Net income saw growth and Costa Rica. CYBSA has which have prompted some criticism. of 23% to u211.6m, and dividends rose roughly 1,000 employees and According to Catherine Kumanina, an official to u0.75 per share. net assets of around US$40m. spokesperson for Dixy, one of Russia’s leading Symrise is said to have benefited from It operates five packaging retailers, the main reason for P&G’s decision ‘good demand’ in all of its regions and plants located in El Salvador is the current economic crisis in Russia and in both segments – Scent & Care and and Costa Rica, from which devaluation of the ruble, which has resulted Flavor & Nutrition – as well as a strong Q4. it services a growing customer in cost increases for raw materials and packaging Dr Heinz-Jürgen Bertram, Symrise CEO, base in its domestic markets, said: “2014 was a very successful year for materials, among others. plus Guatemala and Honduras. Symrise. We... expanded our market According to Kumanina, P&G is not position in mature and emerging markets, Eurofragance has generated the only global cosmetics producer to increase and significantly broadened our portfolio u53.7m in revenue, increasing prices in Russia: this marks the second wave of natural ingredients through the sales by 14.5% compared of price increases on the Russian cosmetics acquisition of Diana. But, most importantly, u with the 46.9m obtained market in the past several weeks. we once more created value and by the fragrance division The first wave of price rises took place substantially increased sales, earnings and in 2013. With these results, at the end of December, and involved a 10% profitability. We are in an excellent position Eurofragance has exceeded to continue our profitable growth in 2015 price increase by several global cosmetics its sales objectives for and to outperform the market again.” the previous fiscal year. producers operating in Russia. Read more at cosmeticsbusiness.com

trends

MARKET REPORT PREVIEW

GLOBAL SUN CARE MARKET SHINES ON

This week’s Trends page previews the April issue of Cosmetics Business Markets, which focuses on sun care. ADDED PROTECTION The global sun care market was worth roughly US$10bn in 2014, The trend for combining SPF protection in facial moisturising according to Euromonitor, with sun protection accounting for nearly products is not new: however, consumers continue to stock 90% of this category, and self-tan and aftersun making up the rest. up on these products, especially in Brazil, Spain, the UK and US Although mature markets such as the UK, France and Italy saw declines in sun care, according to Mintel, emerging markets in Asia 26 Pacific and Latin America experienced soaring growth rates. 23 China’s sun care market was worth $739.94m, having grown by 9.6%, said Canadean, while Brazil generated estimated sales 19 of $926.38m in 2014, according to Mintel, up 4.6%. By 2018 the sun 18 care category in China is predicted to reach $1bn, and together with Brazil and the US, these three countries could account for 50% 13 of the category’s global revenue by 2018, said Euromonitor. 9 Smaller emerging markets are also hotting up in this sector. India 8 8 grew by 16.9% in 2014, reaching INR2.4bn ($38.49m), according 6 to Canadean. In 2014, Indian consumers used 1.4 million more sun care product units than in 2013. Meanwhile, Saudi Arabia’s sun care category is forecast to grow by 10.2% to 2018, worth $70.99m. Oru Mohiuddin, Senior Beauty and Personal Care Analyst France Germany Italy Spain GB Russia Poland Brazil US at Euromonitor, said in a recent online conference: “In Brazil, where there is high penetration of facial make-up, sun care would benefit Facial SPF moisturiser from offering different versions of sun protection. In Asia Pacific, however, the best combination would be anti-ageing and sun Source: Kantar Worldpanel. Data refers to percentage of women using facial protection, given consumers’ preoccupation with skin care.” SPF moisturiser in the 12 m/e September 2014.

NEWS IN BRIEF

French consumers are now buying their organic cosmetics from pharmacies as well as organic and health food shops, according to a new survey by French website L’Observatoire des Cosmétiques. The organic channel remained the most popular place to buy, at 66%, which includes increasingly popular health food stores, but 55% also buy from pharmacies, 47% online and 36% from supermarkets.

Retailer Nordstrom has opened a new store at the Rideau Centre in Ottawa, Ontario. The 157,000sqft store comprises a large cosmetics section as well as a bistro-style restaurant L’Oréal has opened a boutique in Milan, Italy, which the company and espresso bar. It is the has decided to dedicate solely to its L’Oréal Paris brand. company’s first location in The shop is said to be a way for the company to test out its new eastern Canada and second model of direct distribution; until now, L’Oréal Paris has been sold international location, after mainly in supermarkets and department stores in Europe. the store at Chinook Centre The 100sqm outlet features an open facade and sells make-up, in Calgary, Alberta. These are skin care and sun care skus, along with a selected offering of other two of six stores Nordstrom brands. The whole L’Oréal Paris range is present and can be tested plans to open through to 2017. by customers, and there are also five trained make-up artists on site. Barbara Bonfanti, Communications Executive at L’Oréal, told CBN: Hair care brand Alikay “We are currently evaluating incentive mechanisms that are not only Naturals has confirmed its quantitative but also qualitative, given the aim of the flagship being expansion into Sally Beauty primarily a listening point with the consumer.” Supply stores. The brand The outlet will act as a ‘dialogue workshop with the consumer’, a space where consumers can is said to have experienced preview trends, discover products and use new multimedia tools. These include a magic mirror and ‘tremendous growth’ over the Genius app. The interior of the shop was created by French design agency Ux In Situ. the last several months. L’Oréal would not say whether there will be a further roll-out of stores, but did say development Sally Beauty owns and would be ‘piecemeal’. The Milan store is the company’s 11th overall and its fourth in Europe, operates more than 2,800 following the opening of outlets in Stockholm and Oslo in 2013, and Madrid in 2014. Sally Beauty Supply stores worldwide. Alikay will join over 7,000 professional quality brands offered SEPHORA UNVEILS INNOVATION Rituals opens Paris store by Sally Beauty Supply. LAB RETAIL CONCEPT Beauty retailer Sephora is launching a new retail In May, Dutch skin care brand Rituals will open French retailer Marionnaud has opened a new outlet in the rue innovation concept: the Innovation Lab. its first French boutique, located in Paris. Victor Hugo in the town The Lab will encompass both a physical space The shop will be at 24 rue Vieille du Temple of Chateauroux in the Centre in San Francisco and programmes that foster the with neighbours including Australian cosmetics region of France, and closed culture of retail innovation, inspiring Sephora’s brand Aesop and perfumery chain Marionnaud. its existing site in the city’s next generation of digital leaders. “Over the past ten years, Rituals has become îlot Molière shopping centre. The Innovation Lab is a space in the Dogpatch one of the fastest-growing luxury brands The new site, which was neighbourhood of San Francisco where the team in Europe,” said Raymond Cloosterman, Founder formerly occupied by French can “ideate, test, dream, experiment and learn”. of the brand. “We are convinced that the French shoe shop chain Eram, offers improved services for The Think Tank programme will inspire and market has great potential.” customers, said the company. train the next generation of leaders, who will A year ago, the company announced that be developing the ‘next big idea’ in retail. it had enlisted the services of specialist estate Macy’s has completed its The Lab will also oversee Idea Central, agent Cushman & Wakefield to find locations for acquisition of Bluemercury a programme that seeks to source and deliver 100 planned boutiques, to open over the next for $210m cash. Bluemercury on ideas from employees nationwide – regardless decade. At that time, the first shop was slated operates about 60 speciality of rank or function within the company. to be in the Forum des Halles covered market stores in 18 US states, “The Innovation Lab and dedicated in Paris, with another in Saint-Germain-des-Près. and an online business. Macy’s plans to expand management team gives us an incredible The brand is sold in France in Douglas and Bluemercury’s standalone opportunity to drive the future of innovation,” via its website. Other points of sale will be in the stores and online capabilities. commented Bridget Dolan, Vice President form of shop-in-shops in Paris stores. of the Innovation Lab. Read more at cosmeticsbusiness.com

expert advice COSMETICS WITH A CONSCIENCE Driven by fair trade principles, Purearth helps marginalised producers engage with urban markets, as Founder Kavita Khosa explains

You used to be a lawyer – why did you go into beauty? My heart was never in the corporate world and I quit in 2010. I wanted to bring social change, so I decided to start an enterprise revolving around three criteria: women, India and the Earth.

The brand sources its products from the Himalayas. Tell us more... Gravitating to the Himalayas was a surprise for me too. I was born and raised in Pune, India, and I am based in Hong Kong. Years ago, on a trip to Tibet, I experienced the raw power and sheer majesty of the Himalayas. The mountain air and spirituality left a deep impact on me. Since then, I’ve taken many trips to different parts of the Himalayas, including Leh, Kashmir, Kullu The ingredients we and Kumaon, to research and study the forest, source are hand-picked skin care products. In some cases, we provide agricultural and demographic landscape. I met from“ the remote high equipment for picking and processing of with many NGOs and grassroots producer ingredients. They use income from the sale of groups and this has resulted in collaborations and altitude regions in the goods to Purearth to obtain micro-financing or partnerships with them over the past two years. Himalayas and are purchase raw materials to produce goods and sell extracted using green, “ them at prices they’ve established themselves. Purearth supports fair trade. Can you tell us clean methods that are We’re in the process of setting up the Purearth more about the brand’s work here? Foundation, which will direct 100% of funds As mentioned, we partner with several NGOs safe for the workers received through CSR initiatives from other and community-based organisations Kavita Khosa, Founder, Purearth corporates towards health, sanitation, education in the Himalayas that have established clusters and income, generating projects for the women’s of self-help and micro-credit savings groups for groups we work with. women. Each group has 10-20 women from a particular village. They are paid fair trade prices How is this reflected in Purearth products? for picking non-timber forest produce that we use Food democracy is a movement very close to create our products. The NGO sets up a joint to my heart. I am an advocate of open source bank account for each group and I have funded seeds, non-GMO farming and bio-diversity, but vocational training, teaching them how to make I couldn’t see myself running a business of food grains. I came up with the idea of using fabulous ingredients in skin care based on ancient Ayurvedic recipes, such as ‘ubtans’, ‘lepas’ and ‘kachha ghani’ oils. The ingredients we source – rosehip seed and sea buckthorn oil – are hand- $250k picked from the remote high altitude regions Purearth’s expected turnover for 2015 in the Himalayas and extracted employing RETAIL green, clean methods that are safe for the workers Purearth’s global retail handling the ingredients and the environment. outlets include: 1 Hong Kong (5) What have your biggest challenges been? 2 India (6) I work in areas that have poor infrastructure and 100 my biggest challenges have been the backward 3 Dubai (2) The brand’s target self-help group figure integration of resources, implementing good for 2018. It currently works with 16 groups 4 Canada (1) management practices and providing adequate 5 New York (1) - online training, which all take time. Source: Purearth Read more at cosmeticsbusiness.com

NEWS IN BRIEF SOCIAL MEDIA STARS ‘BLOG FOR BUNNIES’ n a new push to raise awareness about Skin care brand Yes! Nurse debuted a video on YouTube the testing of cosmetics on animals, beauty and Facebook in the run-up Ibloggers from around the world have been to Mother’s Day in the UK. putting their support behind the Humane Society The video was created International’s #BeCrueltyFree campaign. by Yes! Nurse Co-Founder Bloggers and vloggers from Australia, Brazil, Jonny Philp, who made his Canada, Japan, Korea, New Zealand, Thailand, own relationship with his Taiwan, the UK and US have all taken to social mother the focus. The video media to demonstrate their support for turning saw a “flood of comments” the whole world cruelty-free. from viewers, and the brand encouraged viewers to share Among the bloggers publicly standing against memories of how their own animal testing for cosmetics is Meagan Kerr from mothers inspired them using New Zealand, who runs This is Meagan Kerr. animals are still being used for cosmetics testing #InspiredByMum. She said: “It’s definitely time for New Zealand here in the US,” she said, “and once they know, to make animal testing of cosmetics illegal, there’s a lot of public support for a ban. Salon hair brand Hershesons just like Europe and India has done. We have She added: “With the 28 countries in the has announced the launch some awesome cruelty-free brands here in New European Union, Israel and India having banned of a “Tinder-style” matchmaker Zealand and it would be so great for consumers animal testing in cosmetics, I hope [the US] will service on its website, Find The One. Visitors to the site will to be able to buy ‘made in New Zealand’ be the next to follow suit.” now be invited to experience knowing that no animals were hurt in the testing.” Concluding, Piper added: “There are so many the brand by having a virtual Meanwhile, from the US, Ashlee Piper from incredible, awesome, kind alternatives on the hair consultation, selecting their The Little Foxes has also put her support behind market, there’s simply no excuse or reason for stylist and/or colourist of choice the campaign and what it stands for. “Most cosmetics cruelty.” before even going to a salon. consumers I speak to are appalled to learn that Read more at cosmeticsbusiness.com They are also able to have Skype consultations with all of the brand’s hair stylists via a live chat pop-up function. Memebox raises funding

New research on the for e-commerce expansion impact of mobile payments South Korean beauty e-commerce company on businesses has been Memebox has raised $29.35m in funding, which released. Dr Mark Perry, from it plans to use to expand its mobile and e- Brunel University London, commerce offerings to China, the US and Korea. and Professor Sriram Memebox received funding from Formation 8, Subramanian, from the University of Bristol, Goodwater Capital, AME Cloud Ventures, found that while mobile Pejman Mar Ventures, Y Combinator, payments may appear faster, Winklevoss Capital, FundersClub, Cowboy simpler and effortless, Ventures and Altos Ventures, among others. evidence suggests that this The company has more than 1,000 brands method puts the value available on its website and is the world’s largest of social interactions at the online Korean beauty store. point of sale in jeopardy. In 2014, Memebox launched a new iOS and Luxury retailer Saks Fifth Following the launch of Penhaligon’s’ new Android mobile app for the Korean, Chinese and Avenue has brought out its solar floral fragrance Ostara, which was the US markets. Today, Memebox’s apps generate spring 2015 Magalog, which official scent of London Fashion Week, the 80% of the company’s total sales in Korea, and is available to shoppers brand has created a short film to celebrate its it has plans to launch more than ten apps partnership with the British Fashion Council. in a shoppable, digital version, in the near future, building on this success. for the very first time. The film, created in partnership with Bespoke Film & Communication Agency, Hyungseok ‘Dino’ Ha, CEO of Memebox, The Magalog is 240 pages long said: “From retail distribution to content and is the largest spring issue has been designed to reflect Penhaligon’s’ consumption, the world is shifting towards in the retailer’s 90-year history. increasing presence at the event; the brand has been the official scent of London a mobile-centric lifestyle. As this shift becomes UK brand HD Brows has Fashion Week for the last four seasons. more prominent, there is an opportunity opened a training academy The Ostara fragrance is inspired to capture the $630bn (by 2017) global market in Glasgow, Scotland. The by the daffodil, although it does not contain for beauty and personal care products. Our any notes of the flower: it is meant launch of the academy, on substantial financial backing will drive our 24 March, will allow bloggers to represent a modern interpretation from bulb to bud to bloom, with notes of juniper innovation even further, helping Memebox to and press to experience the become a leading mobile beauty brand that offers premises. In February, the and hyacinth. The fragrance was created a unique experience for the millions of customers company had more than by Master Perfumer Bertrand Duchaufour. 4,800 unique visitors to Penhaligon’s is using the hashtag that have an insatiable demand for our service.” its website from Scottish #bulbtobloom. Watch the video Since 2012, Memebox, which also sells beauty consumers. at cosmeticsbusiness.com boxes and has its own private label brand, saw more than 400% growth year-on-year.

innovation

MANUFACTURERS EXPLORE SUPPLIERS NEWS

ANTI-POLLUTION EXTRACTS MICROBEAD ALTERNATIVES n a bid to protect consumers against everyday exposure ROLL-OUT ONTO MARKET to pollutants, cosmetic manufacturers are further investigating Worlée has debuted a new Iingredients’ ability to fight the negative effects of urban living. biodegradable product that The increased use of plant extracts was highlighted in a recent acts as an alternative to plastic report by Datamonitor. Researcher Aleksandrina Yotova noted: exfoliant particles. WorléeBeads “Plant extracts that are commonly seen include white and green HCO is based on castor oil and tea, moringa seeds and berry extracts, such as acai and blackberry.” can be used in numerous The report highlighted that more Asia Pacific anti-pollution cosmetic rinse-off products for products were claiming an anti-PM 2.5 effect. Yotova clarified: the face and body. Odourless “PM 2.5 is smog: a particulate matter with particles smaller than and colourless, the alternative Pentiol). It is COSMOS 2.5 micrometres, thought to cause skin damage, and is now is free from additives and approved, making it suitable for reported in weather forecasts for many Chinese cities.” Discussing derived from 100% renewable natural and organic cosmetics. the possibility of this in Europe, Yotova added: “Anti-PM 2.5 resources, according to Worlée. products are likely to become important in Europe too. London has a high level of PM 2.5 pollution, which is regularly reported by the Met Office. As consumers’ awareness of the damage rises, the interest in [anti-pollution] products can be expected to rise.” Despite some brands’ novel approach, Yotova believes there is long-term scope for this type of product: “There’s enough evidence that anti-pollution cosmetics are a trend. Opportunities could be related to novel plant ingredients research, as well as widening the EMPEROR’S NEW JAR category outside skin and hair care.” Italian skin care company ESI Shiseido National Trainer SpA has selected the Empress Rebecca Chantrell agreed: “Day DROPPING A NEW LOOK thick-walled crème jar from care products in our Future Spanish packaging company RPC Bramlage for its Solution LX line now contain Pujolasos has launched new Aloedermal anti-ageing cream. an anti-pollution powder, and cosmetic droppers with The jar has the lightweight and we will continue to launch items wooden tops. The droppers shatterproof advantages of with protection against pollution.” are available in different plastic with a premium look. colours and finishes, while It is injection-moulded and the wood finish is said to bring features an inner layer in blue “a unique touch of distinction” polypropylene. The double-wall POPULARITY OF NEEM EXTRACTS SET and to reflect a subtle design helps to maximise the TO BOOM OVER NEXT FIVE YEARS relationship with nature. jar’s on-shelf impact. The global neem extracts market is expected to reach USD$1.32bn Read more at by 2020, according to a new study by Grand View Research. cosmeticsbusiness.com THE SEA IN CELEBRITY Neem, also known as Azadirachta indica, is a tree, the bark, leaves Seppic has launched what it and seeds of which can be used to make medicine. It also has other says is the first technology to applications such as biofertiliser, and is becoming an increasingly cultivate macroalgal cells in the popular ingredient in beauty products. According to the report, the laboratory, for active cosmetic global neem extracts market size will grow to $ 1.32bn by 2020 from ingredients. The technology, $0.50m in 2013, registering a CAGR of 14.8% from 2014 to 2020. called Celebrity, creates a At present, neem extracts are used in the manufacture of many bank of macroalgal cells from herbal cosmetics and personal care products; beauty brand Dr. species that are gathered Hauschka uses neem extract in its Neem Nail & Cuticle Oil and by Seppic from the sea Neem Hair Lotion. Demand for these products is increasing surrounding France’s Bréhat globally, owing to their apparent efficiency and low side effects. INDUSTRIAL ACTION archipelago, which has a rich The demand for neem extracts in personal care products Bio-ingredients supplier biodiversity. accounted for less than 15% of market revenue in 2013. However, Minasolve has announced Read more at the segment is expected to witness fast growth on account of an the industrial availability of its cosmeticsbusiness.com increase in demand for herbal cosmetics and beauty products, multifunctional bio-sourced especially in Asia Pacific and Europe. ingredient MinaCare Pentiol Asia Pacific was the largest market, accounting for more than Green+. The product 40% of global revenue, in 2013, while Europe is expected to is an efficient skin humectant, witness growth in this category due to the increasing popularity which has the same physico- of herbal beauty products in the personal care segment. chemical properties as its The study predicts that raw material availability in China and analogue, derived from fossil Brazil is expected to open new market avenues for neem extracts carbon sources (MinaCare over the next six years.

brands

NEW PRODUCTS

1 BAREMINERALS is due 3 HERRA has launched Herra is designed for refreshing the Mask (£34). The first is based to launch Complexion Rescue Protect Hair Perfume Clutch Gift face, body and hair, with a blend on clay and charcoal, formulated (£26), a tinted hydrating gel Set (£35), featuring a full size of 99% Rosa damascena. The to unclog pores, control excess cream said to be “the best of and mini version Hair Perfume rose hydrosol is said to renew oil and help detoxify impurities a BB, CC and tinted moisturiser”. held inside an exclusive clutch moisture, balancing out mature and environmental toxins. The The gel cream encapsulates bag. The hair perfume is skin for a rejuvenated feeling. second is designed to bring skin hydrating humectants and designed to be a finishing Launch: April “to a new level of luminosity”, pigment, mineral-infused water product to protect the hair Read more at helping to restore radiance to to lock in moisture upon contact from UV, pollution, food odours, cosmeticsbusiness.com dull, dehydrated complexions with skin, and SPF30 protection smoke, air conditioning and while imparting moisture. via a mineral-based SPF. Heart- body perspiration, while 5 THE BLUEBEARDS REVENGE Launch: April leaf globe daisy helps protect skin imparting Herra’s signature has moved into hair styling with against environmental stressors. fragrance. three new products: matt clay, 7 SOTHYS has unveiled three Launch: April Launch: out now matt paste and pomade (£9.99 new products to be used at each). The clay is said to be home alongside its new 2 BD TRADE SECRETS 4 001 SKINCARE is tapping ideal for providing invisible hold, spring/summer Oxygenating has chosen candy hues for its into the Asian trend for sheet “creating an effortless look that Facial Treatment. The products spring/summer nail collection. masks with the launch of its Silk appears natural yet defined”, include: 2-in-1 Mask Exfoliant The nail varnishes (£3.99 each) Skin Mask Sheets (£35) and while the paste is said to suit (£15.50); Oxy-Vitamin Treatment are available in four limited Rosa Damascena Essence Mist men that prefer a rugged, more (£18); and Complexion Beautifier edition shades: Crazy Days, (£28-£48). The DIY masks textured look. However, the (£19). All are enriched with purple with a luminescent sheen; are designed to be soaked pomade is being singled out as pineapple, said to refresh and Dizzy Days, candy pink with a in a product before use; the hero product, “becoming a purify the skin, and guava, hailed hint of silver glitter; Daisy Days, the brand recommends its new go-to for slick back, high shine for its smoothing properties. The clear with pink confetti particles; mist or Pure Hydrolat Lavender styles”. The three products join ingredients combine with a and Lazy Days, neon coral, to Toner, and a jar comes with each the brand’s pre-existing hair care complex of multifunctional anti- complement the other products mask for this purpose. Once line-up, which comprises a toxins to help “reactivate cell in the BD Trade Secrets Summer soaked, the user can apply the shampoo and conditioner. regeneration”, according to collection. mask to their face. The masks Launch: out now Sothys. The formulations contain Launch: out now feature 2ndSKN technology and vitamin C, PP and provitamin B5. Read more at are said to merge with the skin’s 6 CLINIQUE has announced Launch: out now cosmeticsbusiness.com natural proteins. The new Mist the launch of two new masks: Read more at the Pore Refining Solutions cosmeticsbusiness.com Charcoal Mask (£22) and Even Better Brightening Moisture

6 4

1 2

people

Model Luma Grothe, who has German, Japanese and African roots, has been announced as L’Oréal’s latest spokesperson. Speaking about Grothe’s appointment, Cyril Chapuy, L’Oréal Paris Brand Global President, said: “Luma’s boundless determination coupled with her remarkable deep emerald eyes have made her the fashion scene’s rising star. Her magnetic charm and unique personality are the embodiment of contemporary, multicultural beauty. We are delighted to welcome this promising young supermodel to the L’Oréal Paris family.” Grothe has walked for designers including Burberry, Vivienne Westwood, Versace and Dsquared2 at Paris, Milan and New York fashion weeks, and has posed for famed photographers Mario Testino, Ellen Von Unwerth and Mert & Marcus. Grothe said: “I am deeply honoured to represent such an inspirational brand; ‘because you’re worth it’ is much more than the legendary slogan I grew up with, it’s a motto that embodies a timeless attitude that continues to resonate with my generation. L’Oréal Paris has been promoting the beauty of diversity for generations, showing women that self-confidence is the key to well-being. These are the reasons why I am both thrilled and proud to officially become part of the L’Oréal Paris family.”

THE LATEST APPOINTMENTS

NIP+FAB, skin and body care brand, CRUELTY FREE INTERNATIONAL has LANCÔME has announced an exclusive and sister to Rodial, has signed US reality teamed up with Cuban-American actor make-up collection by fashion designer TV and social media personality KYLIE and comedian OSCAR NUNEZ to call ANTHONY VACCARELLO. The project JENNER as its new Global Brand on the US to match the EU in ending forms part of a long tradition at Lancôme; Ambassador. According to the brand, cosmetics testing on animals. Nunez is best since the brand’s creation 80 years ago, Jenner has long been a fan of its products known for his role as accountant Oscar it has continually collaborated with the and has shared her love for its Glycolic Fix Martinez on the US version of television worlds of art and fashion. The Anthony range on image sharing site Instagram. comedy series The Office. Nunez joins the Vaccarello for Lancôme limited editions Read more at cosmeticsbusiness.com star of the UK version, Ricky Gervais, will be available from October 2015 at in supporting the organisation. Net-a-Porter online. CHROMADEX, an ingredient technology Read more at cosmeticsbusiness.com company, has announced the appointment BOET BRINKGREVE has been appointed of STEVE ALLEN as Chairman of the China President at fragrance and flavours NARS COSMETICS is due to launch a Board. Allen, aged 65, joined the company’s company FIRMENICH, in addition to his make-up collaboration collection with Board as an Independent Director in current responsibilities as President of the fashion photographer STEVEN KLEIN. January 2014. Prior to his involvement with global ingredient business unit. In this new The limited edition 23-sku collection will Chromadex, Allen retired from Nestlé in role, Brinkgreve will relocate to Shanghai be available from November 2015 and will December 2009 after a 30-year career in to oversee the group’s business strategy and showcase new and innovative packaging, sales, marketing and general management. lead its performance. formulas and shades.

the final word

WHERE IS THE TREND FOR Q ANTI-POLLUTION GOING? It’s growing with urbanisation and calling for complex, adaptive formulations, says Cedric Khan, International Research and Development Skin Care Expert at L’Occitane en Provence

Urban dwellers want to work on their skin quality, often aggressed With worldwide

A by an urban lifestyle. “urbanisation, more

Working women have little time to and more women spare, but that doesn’t stop them from wanting need intelligent “ the best for their skin: immediate results with long-term action, a fresh, rosy complexion, and products to protect skin that feels as soft as velvet and looks flawless, their skin and give Clever complexes even without make-up. them all they need The creams and the serum are formulated with The skin is subject to regular discomfort from Cedric Khan, International a new, unique complex: the Perfecting Peony temperature changes, sun and tiredness as well Research and Development Skin Complex, an active fraction obtained by as other environmental aggressors, which can Care Expert at L’Occitane enzymatic hydrolysis. result in imperfections, such as loss of radiance, We cut big molecules of sugars (polysaccharides) dullness, uneven surface texture, dilated pores into small molecules (oligosaccharides), and these and the appearance of the first fine lines. Most molecules become active inside the skin, helping importantly, it causes the destruction of the transform the epidermis by acting on the extracellular matrix. characteristics of perfect skin. It significantly improves the quality of all types of skin. To The power of peony recreate a perfect complexion, we have added Natural and perfection are the key words of this innovative pigments and mineral optical market. With Pivoine Sublime [L’Occitane’s new correctors to the Peony Complex. Travelling range targeted at urban dwellers] we are targeting pigments help light to spread multi-directionally young, urban active women (between 25-35 years and adapt according to the skin’s condition; old), who do not have much time to spend interferential nacres provide skin with an in the bathroom in the morning. They are immediate fresh glow; and soft focus powders looking for immediate beauty benefits with help smooth skin for a blurring effect. Our a natural, fresh and healthy finish. The nude research has developed a patented (in France) effect is all about natural beauty. It doesn’t aim formulation that boasts a 100% natural, to create an illusion, but to reveal perfection, intelligent texture agent formulated from beeswax whatever the skin tone, without suffocating and jojoba wax. This scientifically tested the consumer’s skin. chameleon agent is able to adapt its action to the We wanted to act on the characteristics of climate and humidity levels. All skin types can perfect skin: hydration, even skin tone and skin enjoy its benefits: optimal hydration and a long texture, tightened and invisible pores, radiance, lasting, light, non-oily finish in any circumstances. protected skin, and soft and beautiful lips. We have developed a new generation of skin care Answering urbanisation to achieve perfect skin, working in our Provençal Trends for ‘perfect’ and ‘natural’ skin represent environment with the peony flower. 750 a strong and growing market. To reach this This is a collaboration of five years with our The number of peony varities perfect skin promise, brands will keep developing producer, Jean-Luc Rivière, in the Drôme region. in Jean-Luc Rivière’s nursery multifunctional products, which protect, Drôme is the perfect place to grow peonies for moisturise, even skin tone and soothe at the same several reasons: the soil is fresh, sunshine is good time. With worldwide urbanisation, more and thanks to the southern France climate, and more women need intelligent products to temperatures are rather fresh thanks to the 97% protect their skin and give them all they need. Vercors Massif mountain range and wind The percentage of women who Environmental issues cause concerns about skin from the Valley du Rhône. Since 2010 and in reported 24-hour hydration from health, and consequently effective responses need collaboration with Rivière, our laboratory has the Perfecting Cream* to be found. The Pivoine Sublime range is a studied the properties of peony. sensorial answer for those women. This flower has been adulated since Ancient Read more at cosmeticsbusiness.com Greece. In skin care, peony acts on two things: Submit your questions for the next it increases cell renewal and protects the skin’s 2 The number of patents L’Occitane The Final Word column by tweeting support fibres (collagen and elastin). Pivoine holds in France for its Peony Cosmetics Business @cb_beautynews Sublime is a complete range of easy-to-use, Sublime collection** using #TheFinalWord multifunctional products. It creates a natural and *skin hydration levels measured radiant look, lastingly improving skin condition. by corneometry on 12 women **patents pending

23 March 2015 cosmetics business news 12