ISSUE #37 JANUARY 8, 2021

A Publication of WWD

Say It Loud In an age of digital activism, consumers are looking for brands to stand beside them — and help amplify their voice — when it comes to their key issues. For more, see pages 9 and 10. PLUS: Estée Lauder’s Stéphane de la Faverie reflects on a major milestone and Cindy Crawford’s New Year’s resolution. ILLUSTRATION BY MATTHEW BILLINGTON THE BUZZ 2 JANUARY 8, 2021 Beauty Bulletin

spring, when people started clapping on their balconies for frontline workers, I, of course, joined them,” Green said. “Doctors By the and nurses don’t want to admit that they’re the type to need Numbers: emotional help. I began thinking about if there’s something more TikTok helpful that might be done, more of a person-to-person kind of thing.” Aesthetics When Green found out about the hospital’s plans for resting spaces Gain Search for its staff, called “recharge rooms,” she saw a path to a more direct Traction impact by raising funds to create Data from Spate shows them. The rooms, Green said, would growing search volume be reserved for relaxation, music, or for different social media one-on-one mental health counseling. aesthetics. BY JAMES MANSO The funds will also go to meditation and physical fitness apps for workers THE E-GIRL CRAZE taking over TikTok — and Google search — to use. “That really struck me, that was just the tip of the iceberg. A was something I could really wrap my multiplicity of alternative aesthetics mind around and was something from TikTok are bleeding into search I could focus on,” she said. engine traffic, growing as much as Green’s goal for her campaign, 5,000 percent, in the case of the which can be donated to on New cottagecore trend. “Even the term York-Presbyterian’s website, is to “aesthetics” has seen a strong raise $100,000. Thus far, she is growth over the past few years, halfway there. According to her but it really took off in 2020,” said campaign’s page, the Estée Lauder Yarden Horwitz, cofounder of Spate. Cos. Inc. and members of the “What I’ve seen in my own online Lauder family — chairman emeritus research is that these aesthetics are tied to a few different things, like Leonard A. Lauder and executive clothing and makeup.” Annette Green chairman William P. Lauder — have The aesthetics most popular donated a combined $50,000. include cottagecore, named for Fund-raises for Frontline According to Green, philanthropy its emphasis on prairie dresses and fragrance both take similar and agriculture. More fringe are Workers’ Mental Health qualities for success. “I tried to nostalgia-oriented ones, such as bring positive results to the industry the Nineties and Y2K aesthetics. ¬ Annette Green is bringing her the Fragrance , is raising which needed it so desperately More eccentric looks include trademark vigor to the frontline funds to support the mental health in those early days,” she said. angelcore, which focuses on white workers of the coronavirus of New York-Presbyterian Hospital’s “I’m a very determined person, and dresses, angel wings, ethereal pandemic. staff, which includes more than I always try to not be deterred by makeup and kidcore, which plays Green, president emeritus of 48,000 employees. “In the early the odds.” —­ James Manso with oversaturated primary colors. “When it comes to standing out online, the more bold your look is, the more you’ll be noticed on social Beauty by PopSugar Goes Out of Business media,” Horwitz said. “So, I think Beauty by PopSugar launched these looks are just going to get bolder.” Here, the top 10 growing with 19 products and 85 stock- aesthetics by search volume, year- keeping units, and was sold at Ulta, over-year through December 2020. on QVC and online. When it debuted, industry sources predicted it could Tk Caption TOP 10 AESTHETICS do more than $20 million in retail BY SEARCH VOLUME sales in year one. Creditors include Cosmax Ltd., 1. cottagecore: 286,190 O.T. Delivery Systems, Packaging 2. baddie aesthetic: 80,590 and Distribution Resources LLC, 3. soft girl aesthetic: 53,850 Performance Sourse II Ltd. and 4. kid core: 45,770 Beauty by PopSugar Woolston Consulting Group LLC, launched in 2018. according to court papers. 5. y2k aesthetic: 32,370 ¬ The parent company of a questionnaire to PopSugar The business listed between 6. kawaii aesthetic: 21,770 Beauty by PopSugar, a line of readers in order to map out a $100,000 and $500,000 in 7. clowncore: 16,580 products that made its debut at Ulta product line. PopSugar founder assets, and between $500,000 8. e-girl aesthetic: 15,260 Beauty in 2018, has filed for Chapter Lisa Sugar called launching and $1 million in liabilities in court 7 bankruptcy with plans to liquidate. beauty a “no brainer” given papers. The parent company 9. glitchcore: 14,940 The brand was founded by the popularity of beauty content of Beauty by PopSugar filed for 10. scenecore: 12,100

beauty veterans Pam Baxter on the website, which is geared bankruptcy on Dec. 31. ­ source: spate and Cathy O'Brien, who sent out toward Millennial women. —Allison Collins now available at

Clinically- Effective, Biocompatible Skincare NEWS FEED 4 JANUARY 8, 2021

Later this month, Hero will Hero Cosmetics Lands launch a new line called Clear Collective. PE Investment Hero’s sales grew 300 percent in 2020, according to founder Ju Rhyu. BY ALLISON COLLINS

HERO COSMETICS, a beauty line with Dwight Lee and Andrew Lee. best known for its line of hydrocolloid The business has focused on selling acne patches, has secured a minority skin-care products online on its own investment from private equity firm site, as well as and Target. Aria Growth Partners. “We're a problem-solution brand. Terms of the deal were not disclosed, We want to help people who suffer but Hero is growing swiftly — the from acne or any type of breakout company said it posted 300 percent from products that work, and use our growth in 2020 and expects to do more products,” Rhyu said. than $80 million in retail sales in 2021. With the investment, Hero plans to This is the first time the company has develop more products and build out raised any outside capital. a leadership team, Rhyu said. “We're “We knew we were sort of at this at that point of really scaling the moment of scale and big growth, business so we're going to be hiring a and we knew it was time to get other bunch of leadership roles,” she said. people who could help us take the Later this month, Hero will launch business to the next level,” said Ju a three-step acne-prevention system Rhyu, Hero cofounder and chief called Clear Collective, which will executive officer. be sold at Target and on the brand's This is also the first deal from Aria, site. Hero's products are also sold at 'magic moment' with Mighty Patch Dunkalau noted that Hero has a new private equity firm founded Ulta Beauty, CVS, Anthropologie and — into other product format and been able to establish itself as a “skin by partner Trevor Nelson, formerly Urban Outfitters. product categories,” Rhyu said. authority and solution-based skin- of Alliance Consumer Growth, and Hero's focus has been on acne Nelson said Aria wanted to invest care company” in the competitive principal Jackie Dunklau, formerly treatment for the face, but the brand in Hero because the company has acne-patch market. of Cavu Ventures. They plan to is considering expanding into body built a “thoughtful platform” for “It feels like there is a lot of white invest in founder-led businesses care as well for a more “holistic” functional skin care. space for the brand both from across consumer product categories, approach, Rhyu said. “If you bring innovative products physical products because they have including beauty and personal care, “We've actually done a lot in other parts over time of skin a limited assortment now, and also as well as food and beverage and with a pretty tight [stockkeeping care, we believe there's going to be distribution,” Dunkalau said. household products. unit] assortment. There's a ton of an audience there,” he said. “The Michael Toure of Toure Capital Hero was founded in 2017 by Rhyu whitespace to bring — we call it the opportunity is huge.” advised Hero on the deal.

Longwear franchise, and its Treat Essie Love and Color line. Its most recent launch, the Expressie line, was already vegan and eight-free. Goes Vegan, The reformulations were not without the occasional hiccup. “We have consumers that know exactly ‘Eight-Free’ what our colors look like, so we As of the end of 2020, had to hold ourselves to the highest Essie is only producing standards for performance,” said and distributing Carolyn Holba, general manager of formulas that are Essie. “That’s why it’s taken us several vegan and free of eight years to get here. There was a lot of testing done.” potentially harmful Essie’s vegan, eight-free status ingredients. BY JAMES MANSO will be a pillar of the brand’s Essie is now only producing and distributing formulas that are vegan and eight-free. communications going forward. ESSIE ended 2020 on a high note. “Consumers will increasingly see historically been used.” to do what we can to be positive forces As of the end of last year, the brand that communication in an in-store Holba also said new formula is extremely high,” she said. “If it’s is only producing formulas that are environment, digitally and wherever claims should inform the consumer, important to consumers that choose vegan and free of eight potentially consumers are interacting with the not confuse them. “We know, even to bring Essie into their homes, then it harmful ingredients traditionally brand,” said Alanna Mcdonald, U.S. as consumers ourselves, that the needs to be important to us.” found in , such as toluene, president of Essie, and marketplace can be really confusing,” The brands’ communications dibutyl phthalate, formaldehyde, . “It can be quite a confusing she said. “We wanted to keep our will vary slightly from market to formaldehyde resin, camphor, ethyl environment for consumers, but our lists simple and straightforward, and market, given the different regulatory tosylamide, xylene, triphenyl and point of view is that we will only not communicate we were free of landscapes in each. “In , there phosphate. Consumers can reach communicate free-of, when those ingredients that aren’t normally in are certain requirements for calling out to Essie customer care to see ingredients have been traditionally nail polish.” out being eight-free. For that, the whether or not their bottles have the included in nail polish. Our In the U.S. market, McDonald vegan aspect is extremely important updated formulas. commitment is to transparency. sees growing consumer expectations in Europe,” Holba said. “But we, as Essie’s reformulations have been Formaldehyde, we’re communicating for clear ingredient lists. “The a global brand, have actually seen a in the works since the beginning that it’s not in our nail polishes, target consumer is an even younger desire from consumers around the of 2018, focusing on its original but you won’t see us saying we’re consumer, and we’re seeing that the world to understand ingredients namesake line, its Gel Couture gluten-free because that has never expectations on brands and companies and marketing claims.” PRESENTED BY: A Roadmap for Good Firmenich’s Ilaria Resta finds success in channeling the positive voice of today’s conscious consumer.

laria Resta passionately believes safety, tranquility, and happiness for con- fragrance has the possibility to Ilaria Resta, sumers dealing with stressful situations. 56 touch every person, to help them president of percent also take comfort in scents more grow, feel better, live better, global perfumery than they used to. Today, there is a true and reconnect to self-care in an at Firmenich consumer shift towards Sereni-Clean™ emotional and exceptional way. fragrances that evoke feelings of safety, One of few women to hold a cleanliness, and serenity. leadership role in the industry, We are also preparing the emergence of a Resta is adamant that the beauty benefit and function-driven segment in fine Iindustry must become smarter and reinvent fragrance. There is a global trend towards according to new consumer expectations deeper, more personal relationships towards and behaviors for sustainability and inclu- [personal] fragrance. It is a trend that will sivity, while following the company’s bring lots of differentiation and creativity to purpose-driven credo, “For good, natu- our global market. We are touching here on rally,” which champions creating positive what might be the next generation of per- emotions to enhance the individual’s well- fume. Since physical interactions with other being as well as the planet. people are hard to handle right now, scent is Here, Ilaria Resta, president of global beginning to have a new narrative. perfumery at Firmenich, discusses her role in advancing sustainability within the beauty WWD Studios: Has the market mir- industry, listening to the consumer, and rored new consumer expectations what the future holds for fine fragrance. and behaviors? I.R.: The beauty industry, as a whole, is cur- WWD Studios: In your role at rently experiencing a real paradigm shift, Firmenich, how are you helping to starting with rapidly changing consumer drive sustainability goals? expectations, responding to a growing Ilaria Resta: One of my top priorities is to appetite for conscious and ethical brands further strengthen Firmenich’s leadership and products. At the same time, we are wit- position in sustainability, inclusive capitalism, nessing a revolution in terms of distribution and responsible business. Firmenich has been and points of sale with the co-existence of raising the bar of sustainability excellence specialized stores, classic beauty options, for several decades. Our corporate sustain- supermarkets, and above all a revival of ability strategy called “Pathways to Positive” online sampling and sales. I am impressed defines our roadmap to drive positive impact by the overflowing creativity of our com- for people, nature, and climate through our pany and industry, both in terms of smell business and throughout our value chain. and innovation, technology, and digital. We are also working together with suppliers, The industry must become smarter, rein- partners, and our customers to amplify the vent itself according to new market data and impact of our perfumery business. I am consumer behavior. looking at a broad scope for sustainable interventions, including improved product WWD Studios: From your perspec- performance to serve emerging critical con- tive, what does the future hold for the sumer needs. fine-fragrance industry? COVID-19 has put on the spotlight I.R.: Creatively, we need to be con- the importance of mental health on top of nected to consumers especially the new safety and hygiene. The perfumery industry trialists like Gen Z. We just finished has a role to play in these critical needs. an extensive examination of socio-eco- We know that fragrance can drive positive nomic trends and identified five different emotions and positive self-esteem. Through RE|GENERATION platforms to trans- our RE|GENERATION strategy, we are form human emotions into concepts and working with the fragrance community, cus- actions across all consumer touchpoints. tomers, artists, and influencers to innovate, We based our findings on copious amounts rejuvenate, and transform fine fragrance. a must, but while consumers expect products of research done by internal Firmenich We are also actively working to pre- “free-from” harsh chemicals, additives, pesti- research and development and social serve the climate. I believe it’s important to cides, and GMOs to reassure on safety, they media insights teams, as well as third leverage third-party certifications to guar- do not want to compromise on fragrance party insights, including our proprietary antee the highest standards and credibility It’s time to think performance and scents also play a role in Conscious Consumer study, our COVID-19 for our customers. We have made signifi- augmenting specific product benefits. global research, and a premium wellness cant progress across all the strategic areas of of fragrance During and after the first wave of global study. We examined what ails us as intervention. We are the first in our industry COVID-19 pandemic outbreak, we com- individuals and as a community to see how to be on track for full alignment on B-Corp in terms of its pleted additional consumer research to fragrance can help ‘heal’ and ‘grow’ us into a certification. We are one of only two compa- personal and see how attitudes and behaviors towards better state of being, through the following nies worldwide to have achieved a triple-A naturals and sustainability are evolving. themes: Reunion, innocence, order, danger, CDP ranking in climate, water, and forestry cultural impact.” Compared to life before COVID-19, and revelation. as well as ranking in their Supply Chain people declare buying more natural prod- The fragrance industry has never been Leaderboard for actively mobilizing our Ilaria Resta ucts. 52 percent of respondents are looking so open and active in reinventing its very suppliers on this journey as well. Finally, president of global for scents that are more natural, and natural traditional and long-standing rules. The EcoVadis gave us their highest Platinum perfumery at Firmenich scent is among the top 3 criteria in five out time is now to use data science, A.I., and rating for environmental and social perfor- of eleven countries. Fragrance is playing an technology to explore new ways to ensure mance. We also are now powered by 100 increasingly important role in people’s lives; that fine fragrance continues to deliver pos- percent renewable electricity across 100 per- it’s time to think of fragrance in terms of its itive emotional experiences. Creativity will cent of our operations worldwide. Across the categories of perfumery, from personal and cultural impact. always be the heart of that emotion, but fine fragrances to consumer fragrances, up by better understanding consumers, sus- WWD Studios: What are the con- to 90 percent of consumers consider natural WWD Studios: To that effect, how tainability, regulation, and even technical sumer’s expectations for brands and or eco-friendly values critical. Developing have consumer behaviors and senti- requirements, we can deliver emotions retailers around sustainability and brands and products that support these ments towards fine fragrance been more effectively. New technology, new social justice causes? benefits is essential today. The top three shifted during the pandemic? delivery, new distribution, and new ways I.R.: Even before COVID-19, we delved purchase drivers are natural ingredients, I.R.: During COVID-19, we conducted to incorporate personalization, customiza- deep into the understanding of the impact quality, and primary benefits. proprietary research with consumers to tion, and co-creation will also help respond of naturals and sustainability on fragrance. Scent remains essential t3o product understand how the pandemic is affecting to new consumer demands. It’s an exciting In 2019, our Conscious Consumer study purchase; it’s what’s inside that matters. their lives, experiences, perceptions, and time for change, and we all have this new identified very actionable and rich insights. Transparency and reassurance on safety are behaviors. Fragrance reinforces feelings of world ahead of us. NEWS FEED 6 JANUARY 8, 2021 Hard Candy Cofounders Team With Halsey on About-Face Cosmetics Brand “Every tenet of our business has to do with breaking the rules,” Dineh Mohajer said. BY ALEXA TIETJEN

THE ENTREPRENEURS behind vegan, cruelty-free and formulated Hard Candy and Smith and Cult without gluten, phthalates, parabens have teamed with Halsey on a beauty or synthetic fragrances. Some items venture. draw their names from Halsey's Jeanne Chavez and Dineh Mohajer friends and muses. have been in business together since “We decided to small-drop very Chavez met Mohajer at her Beverly fast,” Chavez said. “We have another Hills office 25 years ago. In late-1990s launch for Valentine's, which we're entrepreneurial fashion, Mohajer sat calling anti-Valentine's Day. We have on the floor of her office attempting another launch coming in March to work a fax machine when Chavez, and then April. When you look at who had been sent by Nordstrom to the end of 2021, [the launches will meet with Mohajer about her cult nail be] all intermingled and perform polish brand, Hard Candy, arrived. with each other.” “We went to work [on Hard Candy] in that moment and made it a partnership that we've actually never “[Halsey] has all even formalized,” Chavez said. “It's been like that for 25 years.” of these artistic The pair expanded Hard Candy disciplines about beyond pastel nail shades into a 100-plus-sku color cosmetics company, reinvention and drawing interest from LVMH Moët About-Face means Hennessy Louis Vuitton, which purchased it in 1999 and sold it three actually doing an years later to Falic Group. Chavez and about-face. She's Mohajer have since started Smith and Cult with Luxury Brand Partners and constantly in a mode Goldie with L Brands Inc., formerly ­ known as The Limited Inc. of transformation.” Their latest venture is About- — dineh mohajer Face, a cosmetics company created last January with singer Halsey, who then had yet to embark on her About-Face will be sold direct-to- pre-coronavirus “Manic” world tour. consumer in the U.S., Canada, U.K. About-Face is backed by Mohajer and Europe with prices ranging and Chavez's joint entity, We from $17 to $32. The brand has an About-Face is a joint venture by Hard Candy cofounders Dineh Mohajer and Jeanne Chavez Bleed Beauty, and exclusive, yearlong partnership with with singer Halsey, who holds an equity stake. investment. Halsey holds an equity Ipsy, which will feature About-Face stake, like other celebrities who products in its recently launched “COVID-19 has really slowed everything. And that doesn't mean have co-created beauty companies in Glam Bag X. everything down, but so far, so good,” it's clownish, it means that it's recent years. “Our plan from Day One, actually she continued. “You're going to be high-performance. That's where “Halsey's completely out of the box, pre-COVID-19, was always digital,” excited by the performance of these we're going to win in a sea of which is everything that we love,” Chavez said. products. It has the highest level of competition.” Mohajer said. “Every tenet of our About-Face's business has to do with breaking collection, Light Lock. the rules. “She has all of these artistic disciplines about reinvention and About-Face means actually doing an about-face,” she continued. “She's constantly in a mode of transformation.” On Jan. 25, About-Face will launch with three color collections — Light Lock, Matte and Shadowstick — that “have their own identities” and logos, Mohajer said. Light Lock consists of highlighters, Matte has high-intensity lip and eye colors and Shadowstick spans multipurpose cream crayons in pearl and matte finishes. The collections total 10 product categories — there are also beauty tools and makeup bags — and 40 sku's. The makeup products are WEEKLY ROUNDUP 7 JANUARY 8, 2021 In Case You Missed It Rounding up some big deals announced during the holidays.

Kim Kardashian West The Hut Group Acquires Dermstore

¬ England’s The Hut Group deal is subject to regulatory has bought specialist skin- approval in the U.S., which is care retailer Dermstore. expected in late January. com for $350 million in cash, THG, which listed on the adding to its burgeoning Stock Exchange earlier portfolio of U.S. and this year, said Dermstore international beauty brands. will contribute to 11 months Takami is best known THG, which purchased of THG’s 2021 financial year, for its skin-peel serum. Dermstore from Target Corp., adding sales of around described the company as $180 million and adjusted L’ORÉAL “the number-one pure-play earnings before interest, taxes, ACQUIRES online retailer in the U.S. depreciation and amortization of prestige skin-care and of approximately $4 million. JAPANESE specialty beauty brands.” The — Samantha Conti SKIN-CARE BRAND TAKAMI

¬ Signaling the importance of the Asian market for beauty firms, Coty Closes $200M KKW L’Oréal is snapping up and value creation,” said Japanese skin-care Beauty Deal Coty chief executive officer firm Takami Co., whose ¬ Coty Inc. has closed a deal Sue Nabi in a statement. peeling products are to acquire 20 percent of Kim She expects Coty will bring wildly popular in Japan Kardashian West’s beauty scientific knowledge around and China. Financial business, KKW Beauty, for formulation to the table, while terms were not $200 million. Kardashian West will bring disclosed. Millie Bobby Brown The deal was originally a massive following — she L’Oréal acquired unveiled in June. Coty plans has 197 million followers on Acquires Majority Stake to bring KKW beauty into new Instagram alone. Takami from Yuji categories, including skin care. Kardashian West's team is Okamura, chief In Florence by Mills “Kim shares our true to lead creative efforts, while executive officer of ¬ Millie Bobby Brown has brand in the summer of passion for beauty products, Coty will focus on developing Brandlift, the company purchased a majority stake in 2019 in partnership with and this acquisition allows skin-care, hair-care, personal- that markets and her Gen Z cosmetic and skin- Beach House Group, the us to leverage our respective care and nail products for the distributes Takami skin- care brand, Florence by Mills, company behind Kendall strengths for mutual benefit brand. — Allison Collins care products. from Beach House Group. Jenner’s Moon Oral Care Dr. Hiroshi Takami, “I feel really fortunate to deal and Tracee Ellis Ross’ who operates have been able to realize my own hair-care brand, Pattern Emmanuel and two eponymous dream of creating a beauty Beauty. While focused on Thomas Saujet and skin-care brand for my e-commerce and social ICP Signs dermatological clinics generation that represents so media marketing, Florence in Tokyo, is the founder Three New many things that are important by Mills is available at and owner of the to me,” the 16-year-old actress retailers Ulta Beauty, Boots, Fragrance Takami brand. said in a statement. Douglas, Asos, Nocibé, Brands L’Oréal said the Brown launched the Beauty Bay and Look acquisition “should cruelty-free and vegan Fantastic. — Ryma Chikhoune ¬ International Cosmetics be completed in the & Perfumes Inc. is launching next few weeks” and three brands in the U.S. that it also renewed a ICP, which has U.S. “very long-term brand distribution rights for the licensing agreement House of Creed, has taken five years, has three criteria with Doctor Takami.” on three family-run brands when curating its portfolio, The brand reported — Domaine Privé, Akro and said Emmanuel Saujet, chief Mizensir — at various price executive officer of ICP. revenues of about 50 points. Industry sources “Craftsmanship, quality and million euros in 2019 estimate the brands could heritage — all these three and logged growth this collectively reach $7 million in have been playing major year despite the impact retail sales by 2023. positioning in how we’ve of the pandemic, ICP, which has grown driven our business,” he said. according to L’Oréal.

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“Their social presence is a representation of who they are, and it’s a representation of their values,” she explained. “Because they’re supporting brands online, they’re effectively supporting their own values; the brand is something that’s representative of them.” Further, Millennials and Gen Zers love sharable content, don’t want to follow trends but develop them, and use platforms such as TikTok and Instagram Reels as content creators themselves. Industry experts point to Glossier as a pioneering beauty brand that changed the discourse with consumers. Its founder Emily Weiss started with the editorial platform Into the Gloss in 2010 that spoke to people like a friend and became the launch pad of her beauty brand. Milk Makeup, Girl Boss Cosmetics and Revolve are also considered among the frontrunners. “There are a lot of direct-to- consumer, female-founder brands [that] leveraged this idea of the female founder and being part of their journey, talking in a sort of intimate way with audiences via Instagram,” said Lucie Greene, futurist and founder of Light Years consultancy. Content now takes many guises and is key to making the relationship between brand and consumer chummier. At Trinny of London, for instance, founder Trinny Woodall invites other well-known women — an entrepreneur such as PING GOES YOUR cell phone, or actress like Elizabeth Hurley — for indicating a new message laden with videoed interviews, then comments Making Beauty emojis and full of advice. The text could about the spots tumble in online, have come from an old friend, but it erasing the boundaries between user- was in fact sent by a different, more and brand-generated content. Brands Into BFF's recent type of pal: a beauty brand. “Commentary is content,” noted Welcome to the age of peer-to- Greene, explaining that stems from the The most successful indie brands are tapping into the peer marketing, a tactic that gained video gaming world. Twitch, for one, evolving consumer zeitgeist of today. traction amid the coronavirus crisis. began as a platform for commentary BY JENNIFER WEIL ILLUSTRATION BY MATTHEW BILLINGTON Brands, particularly direct-to- on gaming but has moved into consumer indie labels, have been different verticals, such as beauty. focusing on creating their own “We’re shifting more towards a sort personas and bringing consumers, of communal type of entertainment,” especially Millennials and Gen continued Greene, who also sees Zers, into their worlds sooner and content and community as becoming differently as the COVID-19 pandemic inseparable. rages, aspirations shift and digital It’s about how one empowers this becomes ever more omnipresent. community to help the brand become “The younger generation wants the people and the people be the brands to be a platform for them to brand, added Gates. be amplify their voices even more,” Meanwhile, consumers are gaining said Cecilia Gates, chief executive earlier entrée into some brands. officer of Gates Creative agency. “The most influential new brands That leads brands to ask are starting out from the outset themselves new questions. “How do being driven by their audiences,” said they become a peer themselves, get Greene. “The appeal of that is feeling that emotional connection to the like you have some ownership, or a consumer? How do they share the part of it.” same values and interests, create A case in point is Merci Handy, conversations and discussions around the six-year-old French brand billed the interests of their consumers? to “create practical and colorful That’s really important,” Gates said. everyday cosmetics, using clean Katherine Mossman, beauty ingredients and rainbow extracts,” and wellness industry partner where building affection with at Brentwood Associates, said consumers is paramount. consumers and brands are converging “When the relationship is built on in a mind-meld. trust, it’s so easy to involve them in „ DEEP DIVE 10 JANUARY 8, 2021

product development, in marketing From Youth to campaigns,” explained Louis Marty, the People. cofounder and ceo of Merci Handy. He lovingly refers to his fans with the Key familiar “tu” rather than more formal “vous” — French words for “you.” Takeaways Incorporating consumer feedback came organically to the entrepreneur, 1. Friends & Family: who often evolves strategy from The lines between brands and the consumers that love them ideas generated from the fan base. are increasingly blurring as Most recently, Merci Handy took to shoppers look for an ever-closer Instagram to ask its friends for ideas emotional connection with the for the next collaboration, following a brands they support. two-and-a-half-year tie-in with Disney. Upward of 1,000 suggestions 2. Actions Speak Louder Than Words: Merci Handy's Flower Power kit. poured in (Harry Potter, Supreme, When it comes to purpose- Rihanna were among proposals). driven initiatives, consumers are consumers a forum to express them.” These sessions ended up serving The brand uses a funnel-formed looking for brands that show up Concurrently, beauty brands are another purpose, too. vetting process, collecting answers to – not show off. increasingly tapping into the do- “They reported that quite a large queries posted on its social platforms, good zeitgeist, sharing the passion of majority of these chats didn’t even narrowing them down, then inviting 3. All Together Now: Millennials and Gen Zers — especially end up discussing hair — they were a Consumers aren’t looking to a much smaller group of people into brands for all the answers — — along the way. chance for people to have a chat with the office or to hop on a video call to they want to know that they’re “That is just meant to be built into their stylist and talk to someone,” discuss thoughts. on the same page when it how you act, without being this big said Bishop, calling the phenomenon Currently, 30 are testing out a comes to finding solutions. declarative thing,” said Bishop. “We’ll “shifting it into this friend zone.” shower gel for two months before see the whole-purpose mind-set filter Friends help their buddies grapple giving the brand input. more into: ‘Are we doing enough for with complicated subjects, including Today, it is not only about such as Starface (with acne-fighting everybody?’” body positivity and inclusivity. pushing content, but rather creating patches) and Disco (skin care for Gonzalez explained that at YTTP: Industry experts point to Selena interaction online, something he men), that take a playful, tongue- “We have different pillars in our Gomez’s Rare Beauty as having a loves. And the strategy is bearing in-cheek approach on social media, brand that people are passionate clear purpose — to bring awareness tangible results. similar to how people might chat about: skin-care ingredients, to mental health — making the brand “It’s why we are the second with their buddies. sustainability, activism. We’re into an advocate. brand in the world with the highest “You feel like you’re having a interested in making sure that we’re “Something important for Gen Z is engagement rate [online],” said the conversation,” said Bishop. “They’re able to reach the people who are the perfection in the imperfect,” said executive. (Florence by Mills, Millie posting questions on their Instagram passionate about what we are.” Mossman. “That’s the centerpiece of Bobbi Brown's beauty line, is the first.) stories to their audience, almost in a The brand has just created its this brand, which is: You’re rare.” On TikTok, Merci Handy has about way that you might just be having a first philanthropic fund, which aims Its Rare Impact Fund has made 350,000 followers, but its engagement chat with a friend.” to donate $1 million by 2024 to a pledge to raise $100 million for rate is huge – with at least 50,000 Youth to the People also refers to its what it calls diverse and inclusive mental health services for people to 100,000 views per video. Ditto consumers and employees as “fam,” local, national and international from underserved communities over for Instagram, where the brand has “family” or “friends.” organizations fighting poverty and the next decade. almost a half-million followers, with “We built the brand that way,” said hunger. It is YTTP’s first of three Male supplements brand Hims an engagement rate of approximately Greg Gonzalez, a brand cofounder. intersectional giving funds. launched group therapy sessions on 25 percent. From the outset he and the Philanthropic organizations, even Zoom during the pandemic. “We want to create this link [with other cofounder Joe Cloyes were smaller ones concentrated on local “It was this shift from broadcast people],” said Marty. personally sending messages to areas, with a direct impact take priority. brand communications,” said Half of Merci Handy’s community YTTP’s community members, forging “We look at them across many Bishop. “You’re building a kind of is in France, with the top three friendships with them. different areas, but [they should relationship with that brand.” international markets being the U.K., “One thing that’s so amazing about have] a lot of alignment with our Hims & Hers sells products and U.S. and Australia. skin care and beauty is there’s the brand values,” said Cloyes. “So, food, operates a mental health platform. Sales are booming, too – the passion that everybody has,” said water and shelter are basic human It’s important a brand’s raison brand’s revenues grew by 2.3 times Gonzalez. “Around new products, rights, and that’s something we’re d’être is clear. To that end, this in 2020, and its website garners 30 ingredients, packaging. And so we get super passionate about.” month, Merci Handy plans to roll percent recurring orders. to share those discussions with them.” Diversity is a focus, as well, so the out on its platforms a culture book, “Social listening is key,” said Marty. “Building these friends as brand is helping bolster opportunities which outlines the company’s vision; “What we’re seeing now are brands community has helped us to for youths in the BIPOC and social mission, to fight against cyber- that literally live and breathe this evolve what we do within product LGBTQIA communities. bullying, and purpose, to make the brand-friend concept,” said Kathryn development, storytelling and “Our goal is to always do as much ordinary extraordinary. Bishop, foresight editor at consulting marketing,” continued Cloyes. as we can behind the scenes, working “This is also the role of a friend,” and trend forecasting agency The That recently has been the case for the with and learning from people. And said Marty. Future Laboratory, ticking off as brand’s new energy serum. Some fans of as we build out this platform with our Still, friends can be tricky, and examples labels such as The Inkey YTTP tried the product for four weeks organization, hopefully create change beauty executives say their biggest List and Q&A, which exchange and did before-and-after photos and outside of just skin care,” said Cloyes. challenges today as they scale include directly with consumers. videos that were used in a campaign. “That’s something we learned from remaining authentic, and in tune and The Inkey List launched an “It gives a different view on the my grandmother, our aunts — our in touch with their audience. #askINKEY campaign and rolled product, not just from us,” said whole family.” Tapping into consumers’ zeitgeist is out a beauty school for the everyday Gonzalez. “Everything that happened this year, all about evolution. consumer. Meanwhile, as its name The brand’s product nomenclature they’ve had an active voice in it,” said “The brands of the past were talking suggests, Q&A sets out to make taps into the young demographic’s Mossman, of YTTP. “And they’ve given at you,” said Mossman. “It was about natural skin care simple and aspirations. their consumers an active voice.” authority. The brands of today are accessible, allowing people to ask the “What’s your 18-year-old ambition Also on the philanthropic front, like: ‘We’re figuring this out together.’ brand questions directly. or dream?” asked Mossman. “Even in the U.K. during the pandemic, Those that represent a values-based “Like they’re your friend, to giving their products reflect that: the Hershesons launched Zoom evolution really resonate. you a bit of skin-care advice,” said ‘Dream Mask.’ They tease out those hairstyling appointments and “What is your friend? It’s somebody Bishop, who highlighted other labels, hopes and aspirations, and give their donated the proceeds to charities. who’s on a journey with you,” she said. ■ 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] BEAUTY ROLODEX 12 JANUARY 8, 2021

European Investors A listing of some key venture capital and private equity players in the beauty space. BY JENNIFER WEIL, SANDRA SALIBIAN AND SAMANTHA CONTI

EARLY-STAGE European investors concepts come to market. Here, key are multiplying swiftly in the beauty players the Continent and U.K., in sphere as a host of new brands and alphabetical order.

ALVEN CAPITAL HOLDING Oh My Cream!, Laboté, Même NEO INVESTMENT PARTNERS Headquarters: Paris Cosmetics, Merci Handy Headquarters: London and Headquarters: London Current Beauty Investments: Deal Size: Invests in Seed and Current Beauty Investments: Joone, Typology, Freda Series A stage in rounds from Current Beauty Investments: Miller Harris, Victoria Beckham Deal Size: Invests between 1 million euros to 8 million euros Glossier, Beauty Pie, Josh Wood Beauty 1 million euros and 10 million euros, Key Player: Camille Kriebitzsch, Colour, Beautystack, Boulevard Deal Size: Invests between mainly in Seed and Series A1 partner and cofounder Deal Size: Invests from Seed to 10 million euros and 30 million Key Player: Guillaume Auban, growth through to IPO, with check euros in companies with sales of managing partner, and EXPERIENCED CAPITAL sizes ranging from hundreds of 20 million euros to 40 million euros François Meteyer, partner Headquarters: Paris thousands of dollars to $80 million. Key Player: Kasia Drozd, Current Beauty Investments: Seven out of 10 of Index’s initial office manager BALDERTON CAPITAL L:a Bruket, Oh My Cream! investments are Seed or Series A. Headquarters: London Deal Size: Invests in brands with Key Player: Danny Rimer, partner PIPER PRIVATE EQUITY Current Beauty Investment: THG enterprise value between 10 million Headquarters: London Deal Size: Invests mainly in Series A euros and 100 million euros, and KAROT CAPITAL Current Beauty Investments: Key Player: Caye Hurtado, principal equity tickets between 10 million Headquarters: Paris Neom euros and 30 million euros Current Beauty Investments: Deal Size: Invests 5 million pounds BLUEGEM CAPITAL PARTNERS Key Player: Alban Gérard, director Sevessence, WAAM to 25 million pounds in brands with Headquarters: London Deal Size: Invests first 300,000 at least 5 million pounds in sales Current Beauty Investments: FIRSTMINUTE CAPITAL euros to 2 million euros as a Key Player: Dan Stern, investment QMS Medicosmetics, Iconic Headquarters: London minority shareholder director London, BeautyNova Group, Current Beauty Investments: Key Player: Charles-Antoine Dr. Vranjes Firenze Typology, Asystem, Kyra Morand, partner VAULTIER7 Deal Size: Invests 20 million euros Deal Size: Invests in pre-Seed Headquarters: London to 75 million euros in companies and Seed rounds, with an average LBO FRANCE Current Beauty Investments: across Europe with enterprise check size of 1 million euros Headquarters: Paris Gisou, Joone value of 50 million euros to Key Player: Clara Lindh Current Beauty Investments: Deal Size: Invests 2 million pounds 300 million euros Bergendorff, investor Payot to 10 million pounds in companies Key Player: Constantin Rojahn, Deal Size: Primary or secondary with sales of 3 million pounds to investment director FOUNDERS FUTURE LBO with an equity ticket of 15 million pounds Headquarters: Paris between 10 million euros and Key Players: Montse Suarez and EURAZEO BRANDS Current Beauty Investments: 25 million euros for companies with Anna Sweeting, cofounders Headquarters: New York and Paris Epycure, Dr. Elsa Jungman an enterprise value of 25 million Current Beauty Investments: Deal Size: Invests in Seed and euros to 100 million euros Nest New York, Pat McGrath Labs Series A rounds Key Player: Emmanuel Fiorentino, Deal Size: Invests 15 million euros Key Player: Victoire de Lavigne, investment director LBO Small Cap to 100 million euros, minority and investment associate Beauty Rolodex is a series majority stakes MADE IN ITALY FUND identifying key players in Key Player: Jill Granoff, chief GRAZIA EQUITY Headquarters: Luxembourg the finance community and executive officer (N.Y.); Headquarters: Stuttgart, Germany Current Beauty Investment: Rougj beyond. If there are aspects Adrianne Shapira, head of Current Beauty Investment: Deal Size: Invests in companies of the industry that you would North America (N.Y.), and Gitti Conscious Beauty with sales mainly ranging from like to see covered in our Laurent Droin, head of EMEA (Paris) Deal Size: Investment usually starts 10 million euros to 50 million euros pages, email your ideas to at around 1 million euros, and ranges Key Players: Alessandro Binello senior editor, beauty, EUTOPIA from 5 million euros to 10 million and Walter Ricciotti, founders and Allison Collins, at Headquarters: Paris and New York euros during a company’s lifecycle chief executive officers of parent [email protected].

Current Beauty Investments: Key Player: Jochen Klüeppel, partner company Quadrivio Group Illustration by Matthew Billington MASTER CLASS 13 JANUARY 8, 2021

family and of keeping the quality, is reinforcing. We have constantly the equity and the consumer at the reevaluated the distribution and center of everything we do. People evolved it, but we remain strategic are gravitating now more than ever and we will always distribute our to products they trust. It is the time product where we have control of of big brands and when they do the the equity and the positioning right thing — and know how to listen of the brand. to consumers and connect with them, the sky is the limit. Would you consider going into Ulta at Target? So much has changed in the last We are evaluating the new concept year. How did you pivot? What and looking at it. We will make long-term learnings will you decisions around the brand to make take away? sure that the consumer has access Last year felt much longer than 12 to the brands they love, with the months. We have achieved so much experience they want in the channel that is just unbelievable — the size where they shop. of the shift required to respond to the new normal. We had to do it — That doesn’t sound like a no? because inaction outweighed the risk We are evaluating it. of change. Early on, we pivoted our communication to be about self-care How has the recovery been and experience. The shift was quick. in China? Are you anticipating We would not have been able to do a similar trajectory here? it 10 years ago. Within a month, we China has been absolutely amazing. had changed our communications, Lauder has shown a tremendous creating new content. This agility level of growth — for 11/11, the brand is one of the things that will stay finished number one across the Tmall — what we did quickly was try to channel. The recovery in brick-and- establish one-to-one communication mortar is a bit slower. Some of the big with the consumer and not top doors in city centers are suffering, but down. The brand became a confidant, because people are moving around someone you wanted to interact with the country, there is a lot more local because she had the right tone of distribution that is seeing good voice. It was all about listening to the growth — people are neighborhood consumer. Estée herself gave us that shopping versus long-distance — she was always listening. shopping. So we are seeing a shift in where the recovery is. We are trying What did you hear that to help identify where the movement surprised you? is and where the growth is. We really shifted from e-commerce Stéphane de la Faverie experience to e-experience. We took Over the last 75 years, the core The global brand president of Estée Lauder on experience from point of sale and values of the brand have stayed cross-generational, cross-geograpical relevance brought it online. That has been the same, but what’s one of the the biggest unlock. This will change most difficult changes you’ve on the eve of Lauder's 75th anniversary. forever the way we communicate had to make? BY JENNY B. FINE with consumers. Stores will come When we had such strong loyalty with back; we will continue to interact the ageless consumer and we realized THIS YEAR, the Estée Lauder Cos., brand today, it is stronger than ever. with them. But we can now connect it was important to talk to a younger and its namesake flagship brand, Last year, we had double digit growth with consumers wherever they consumer, it was a moment where we turn 75. While the beauty industry in fiscal 2020 and we see continued are whenever they want, because had to ask ourselves how to make it is rife with brands that have been strong growth in the first quarter of we have beauty advisers online. happen without losing the appeal to unable to maintain their appeal this fiscal year. We have gained a lot of That gave us the ability to connect our beloved ageless consumer. Estée across generations, Lauder is the rare share, but what I’m most excited about with a more diverse consumer and said every woman can be beautiful — exception, adeptly evolving to meet the is we have been able to gain a lot of broader age. We have done it through she didn’t say what age, ethnicity and changing times, while also harnessing diverse consumers around the world. Facebook, Instagram, YouTube, background. When we realized that, the power of its history. The year The legacy of the brand is TikTok — everywhere. We retrained the hardest thing we had to do was go ahead looks to be another pivotal time creativity, innovation, fearlessness, our beauty advisers and developed from a traditional model — in terms of change, for Lauder and the industry quality in everything we do. an entire curriculum about how to of distribution and communication — overall: Distribution channels are We took this model and accelerated interact online versus in store. to a new model to give us an ability increasingly blurring as e-commerce it during the pandemic, taking what to tailor the communication for explodes; social media platforms are we were known for in-store and The distinctions between mass every single consumer by channel. proliferating, and consumers are building it online. As a heritage and prestige are increasingly We went from creating two to three looking for much more than a jar brand, you can use your strength and blurring. Historically, assets — print and TV and maybe a filled with promises. Here, Stéphane legacy and the famous roots of the distribution defines a brand — banner — to more than 400 pieces de la Faverie, global brand president brand and move them to where the is that still true today? per launch. And we have 50 launches. of Lauder and group president of the consumer has shifted. Brand building and distribution We are creating more assets in one company, talks about creating cross- Secondly — we are a brand founded are core to our central strength. year than we have created in the past generational, cross-geographical by a woman for a woman — we use We need to think about where the decade. That is really adapting to the appeal for today — and beyond. that a lot. Mrs. Estée Lauder taught consumer is. Where is she/he going consumer shift. It was the hardest us as about creating connections. and interacting? What I believe thing, but the most rewarding and What is the role of a heritage In the pandemic, when people were strongly is that the brand, wherever we have done it in a record amount brand today? What does it take stressed, we were focused on creating it operates, needs to be focused on of time. to maintain relevance with deeper connections. delivering high-quality products successive generations? The final thing is heritage. We have and services regardless of the DIRECT CONNECT: @sdlf12 When I look at the Estée Lauder an incredible legacy in the Lauder channel. That is what the pandemic LAST CALL 14 JANUARY 8, 2021 Good Intentions When it comes to 2021, is there anyone who isn’t planning for better days ahead? Here, New Year’s resolutions from some of beauty’s most forward-looking leaders. BY JENNY B. FINE

DREW ELLIOTT SENIOR VICE PRESIDENT, GLOBAL KENDRA KOLB CREATIVE DIRECTOR, BUTLER MAC COSMETICS FOUNDER AND CEO, “My New Year’s resolution CINDY CRAWFORD ALPYN BEAUTY is to bring joy, whether it FOUNDER, “For 2021, I’ve decided is in MAC and the creative MEANINGFUL BEAUTY to make a conscious COURTNEY ADELEYE we bring to market, ways “I usually have the same effort to create plenty of FOUNDER, THE MANE that I can help develop New Year’s resolution room for the people that CHOICE AND OLBALI talent or things I can do every year, which is to say support who I want to “My New Year’s resolution to make someone’s day. 'no' more, but since this be, from a business and is to use the knowledge This year will be all about has been a year of 'no’s,' personal perspective. It's I’ve learned from the everyday gifts, generosity that won’t work. One of the a reminder to edit the beauty industry to expand and positivity. While 2020 blessings of all this time at energy around me and and diversify my business was a hard year, home is that I was able to invest in relationships portfolio. I am dedicated it taught us a lot about commit to a more regular that promote positivity. to not only growing myself how we treat ourselves meditation. My resolution is And, chocolate. I think as a thought leader, but and each other. To me, to continue that into 2021 — I should definitely eat to help grow female-led joy is the ultimate uniter.” even when life gets busier.” more chocolate.” small businesses.”

CHARLOTTE CHO EMMA CHAMBERLAIN HUDA KATTAN TRISTAN WALKER COFOUNDER OF SOKO GLOBAL BRAND FOUNDER, HUDA BEAUTY FOUNDER AND CEO GLAM AND THEN I MET YOU AMBASSADOR AND “2020 was filled with “Choose wellness. “My New Year’s resolution CREATIVE DIRECTOR, the unexpected, and it This has always been a is to be gentle with BAD HABIT certainly wasn’t easy. personal value of mine myself. Becoming a mom “In 2021, I want to stop My focus for 2021 is to and for my company for the first time in the being so hard on myself, go into it with limited [Walker & Company middle of a pandemic, cook for myself more and expectations. It’s been a Brands]. If we’re not while growing our go on my phone less.” journey learning how to taking care of ourselves platform and our brand, approach life this way, but or our families, then is challenging. Giving I’m working on adjusting we’re not taking care myself opportunities for my outlook, setting of the business.” proper rest and self- realistic goals and starting care will allow me to be to accept change and to stronger physically and go with the flow a lot more mentally. It will also allow than I used to.” me to think creatively when approaching new challenges.” Crawford photograph by Eric Ray Davidson