Urban Retreat

Copyright © 2016 HPCi Media. This publication may not be distributed without prior permission. Business Retail Innovation Brands LatestinBeauty secures Pixi by Petra opens Quadpack packages Bobbi Brown unveils £500k investment temporary pop-up store Erborian range Valentine’s collection page 2 page 6 page 9 page 10

cosmeticsbusiness.com 8 February 2016 NEWS Issue 4 Birchbox lays off staff and suspends Canada operations US beauty subscription service and e-commerce company Birchbox has laid off 15% of its workforce and suspended business in Canada. The decision was described as “difficult” by the company’s Co-Founder and CEO Katia Beauchamp. She said: “In five years, we have built an immensely successful business and achieved rapid growth – and these people helped create Birchbox as we know it. They are our friends and we will always be grateful for their invaluable contributions. But we have learned a tremendous TIFFANY & CO SIGNS DEAL WITH amount about what we need to do to win in the beauty COTY IN FRAGRANCE COMEBACK category. The cuts made today will allow us to reinvest in our The New York-based jeweller plans to launch new perfumes developed, produced biggest opportunities and grow and distributed by Coty, after more than ten years without producing a fragrance even more quickly in the future. We now have a clear

S jeweller Tiffany & Co has entered into Tiffany’s luxury heritage lends understanding of how we can an agreement with Coty to create a new streamline our efforts and

line of fragrances for women and men. itself perfectly to Coty’s prestige operate more efficiently.” U “ “ As part of the new deal, Coty will develop, fragrance portfolio. We look forward Beauchamp explained that produce and distribute the fragrances, which will to bringing Coty’s unique expertise the cuts were not a reflection be sold at Tiffany & Co stores as well as other to Tiffany of a flagging business. She luxury retailers. added: “We are hitting all of Frédéric Cumenal, CEO of Tiffany & Co, said: Bart Becht, Chairman and interim CEO, Coty our growth goals and expect “Tiffany is among the world’s most important to nearly double our shop houses of luxury, and fragrances are an important Tiffany for Women. sales, while still experiencing expression of the brand. We are pleased to work The company, which is significant growth in with Coty, an industry leader in the prestige headquartered in New subscriptions in 2016. We will fragrance category, on the development of a more York, has been on do this as a leaner, stronger and meaningful fragrance portfolio through this something of a fragrance more resolved company.” licensing agreement.” NPD hiatus for the past According to Bloomberg Meanwhile, Bart Becht, Chairman and interim few years, however, with Business, the cuts will affect 45 CEO of Coty, added: “Tiffany’s luxury heritage its most recent launch people out of 300. Beauchamp lends itself perfectly to Coty’s prestige fragrance debuting back in 2003 called Pure Tiffany for added: “For all those portfolio. We look forward to bringing Coty’s Women. Other fragrances include Tiffany for impacted... there is no thank unique expertise to Tiffany by establishing a Men, Tiffany for Men Sport, Trueste and Sheer you that can properly convey strong fragrance business for the brand.” Tiffany. The company’s scents were made in the depth of my gratitude.” Tiffany & Co already has eight fragrances, with collaboration with perfumers Jacques Polge and For more details, visit the first being launched in the late eighties, called François Demachy. cosmeticsbusiness.com

Business

L’ORÉAL’S NIELY UNDERGOES MAKEOVER ust over one year ago L’Oréal acquired Pre-acquisition, in 2014, Niely generated a Brazilian brand Niely, formerly the leading record Brazilian reals BRL406m (around $100m) Jindependent manufacturer of hair care and in sales. Daniel Fonseca de Jesus, Founder of NEWS hair colouring products under the Niely Gold and Niely Group, said: “We are convinced this Cor & Ton brands in the region. operation will allow Cor & Ton and Niely Gold After a quiet year devoid of product launches, consumers to benefit from all of L’Oréal’s CONTENTS Niely is back with a whole new look and new marketing, research and innovation expertise.” hair care lines. The brand has opted for gold L’Oréal referred to the 2015 acquisition as a Business: Flame Tree Group buys packaging and new labels. It also introduced strategic operation for both Brazil and Latin Kenyan brand Suzie Beauty 4 two new hair care lines, Niely Gold Powerful America. Bianca Pi, Director for the Niely brand, Nutrition and Niely Gold Moisturised Curls, as has confirmed that the first eight months of the Markets: Facial masks drive growth in the global skin care market 5 well as a series of hair masks. To top it off, it also incorporation were positive, citing new product added two new colours to its hair dye range. launches and encouraging figures. Retail: Parfums de Marly opens first brick-and-mortar store in Paris 6 Expert Advice: How Come Round LatestinBeauty secures £500k parties boost a brand’s influence 7

Digital: Aurelia Probiotic Skincare LatestinBeauty Group has secured an investment unveils digital consultation tool 8 of £500,000 following a record year of profits. The Innovation: Could microalgae be the investment follows the acquisition of blogger next big ingredient in cosmetics? 9 website shesaidbeauty.com last year. Founded in 2010, LastestinBeauty creates Brands: Bobbi Brown launches Valentine’s Day collection 10 bespoke beauty boxes for customers using products from a portfolio of more than 300 People: Lewis for Kiss Products 11 brands. It is said to have a database of more than 11 million customers. Editor Lucy Copp The £500,000 investment is scheduled to help Reporter Rachel Lawler create the Libbie Club – a new initiative that will Sub Editor Austyn King see the brand move into direct selling. Members Freelance Correspondents of the public will be recruited to the Libbie Club Kati Chitrakorn, Sarah Cohen, Hannah Ferrett, Toyah Marondel, to create an online sales force. Carla McKirdy, Patricia Mansfield- Nort Janssen, Founder at LatestinBeauty Devine, Michaela Williams Group, explained: “LiB Group has worked Head of Print & Digital Production through 2015 to build the right set of tools and Ross Murdoch perfect the model of the club and we are now Art Editor Sibylla Duffy Credit: Yahoo from Sunnyvale, California, ready to build the biggest social sales force for USA via Wikimedia Commons Digital Production Nita Salem the beauty industry in the UK. We are aiming to Managing Director Colin Bailey-Wood have 2,000 ‘Libbies’ working on behalf of beauty brands, advocating their products to their social HPCi Media Limited VERGARA SUES VENUS CONCEPT Natraj Building, The Tanneries, Sofia Vergara has filed a lawsuit in Los Angeles circles, turning them into loyal customers.” He 55 Bermondsey St, London SE1 3XG against beauty company Venus Concept, claiming added: “We are planning to grow between 50- +44 20 7193 1279 that the brand is using her name and likeness 60% in the next year.” without her permission. The Modern Family LatestinBeauty Group is said to have a turnover Editorial +44 20 7193 9502 actress is asking for $15m in damages. of £3.5m and currently employs 15 people at its [email protected] Vergara used a Venus Concept treatment back London headquarters. Last year the company Subscriptions +44 20 7193 1279 [email protected] in August 2014. She posted a picture of herself teamed up with several media partners, including using the Venus Legacy machine on Instagram as Glamour, GQ and the Mail on Sunday, to create she got ready to attend the Emmy Awards. With tailored beauty boxes. Subscription Details a picture of Marilyn Monroe in the background, The subscription includes Vergara captioned the image: “What is so funny full digital access to the cosmeticsbusiness.com website, Marilyn?? Legacy massage at @drlancerrx”. as well as the weekly Cosmetics Since then, according to the court papers filed, Business News and monthly Venus Concept has been using images of Vergara Cosmetics Business Markets and the actress’ name to promote its products print magazines. online and at trade shows. Vergara, who has a number of endorsement ©HPCi Media Limited deals with brands including Head and Shoulders, Articles published in this newsletter may said her image was used without her consent. only be reproduced with permission. The publisher accepts no responsibility for any According to People magazine: “[She] tried the statements made in signed contributions or Legacy treatment, but ultimately did not like it.” in those reproduced from any other source. To view more images, visit ISSN 2057-1984 cosmeticsbusiness.com

Business

FRENCH SELECTIVE PERFUMERY SUFFERS NEWS IN BRIEF he French selective perfumery market in November or in December, said Lion, for two INTER PARFUMS has suffered in 2015, partly due to the Paris main reasons including “a decline in footfall in reported a decline of 6.2% Tterror attacks, market analyst NPD has said perfumeries and department stores and, in sales in fiscal 2015. The in an interview with CBN. especially, a decline in the number of tourists in financial year was rounded It was not just fragrances that struggled; the November and December.” off by a 5.5% drop in net sale of perfumes, make-up and skin care in Sales volumes also fell by 3% and although sales in Q4, the company perfumery chains and large outlets fell to a2.9bn. prices rose, it was by only by 1.8% compared announced on 26 January. NPD beauty expert Mathilde Lion said the with 2014’s figure of 3.7%. Overall for the full year, net year had been very turbulent and that the months Part of this was probably due to the strong sales amounted to $468.4m, down from the $499.3m in of January [2015], November and December promotions run by market leaders Sephora, 2014. Jimmy Choo was accounted for two thirds of the market losses. In Nocibé-Douglas and Marionnaud, which singled out as a frontrunner particular, the month of December is crucial depressed prices. in Inter Parfums’ portfolio. for the sector, which makes a quarter of its Fragrance prices rose by 1.9% It represented Inter Parfums’ annual sales in that month. “It still to an average of a59.45 per bottle, fastest growing brand, with seems indecent to talk this way, but but sales still fell by 2% over the sales up 18% in dollars and the attacks in January and November course of the year. For high end 41% in local currency. have had a direct impact on the fragrances in higher concentrations, GROUPE GM has inked a performance of prestige in France,” such as the a150+ ‘private three-year manufacturing and Lion told CBN: “The week of 13 collections’ of major labels, both supply deal with Kempinski November, sales dropped 18% in value and volume growth remain Handelsgesellschaft to supply value (stores were closed at weekends strong, said NPD. However, these its luxury hotel group Kempinski in Paris, including department stores) represent only 2-5% of the market. Hotels with a line of amenities. and 8% the week after the attacks.” For more on this story, visit Groupe GM has created a The market did not recover either cosmeticsbusiness.com personalised amenity range of products including a bergamot and aloe vera-inspired body lotion, shampoo, conditioner APTARGROUP ACQUIRES MEGA 3 and shower gel for Kempinski AIRLESS IN 200M DEAL Hotels standard rooms in AptarGroup has signed an agreement to acquire Europe and the Middle East. Mega Airless, a leading provider of airless Kempinski operates 73 five-star dispensing systems for the beauty, personal care hotels in 31 countries. and pharmaceutical markets. The a200m deal will be funded through an WALGREENS BOOTS ALLIANCE has announced existing credit facility and is expected to close in a quarterly dividend of the first quarter of this year. 36 cents per share. The Mega Airless has two manufacturing facilities: dividend is a 6.7% increase one in Germany and one in the US. Its projected compared with the dividend annual revenues for 2015 are said to be around announced at the same time a61m with EBITDA margins in excess of 30% last year. The dividend will be paid to all shareholders in the past three years. P&G has shared its second quarter results Steve Hagge, President and CEO at of record on 18 February. for fiscal year 2016, which showed a return Walgreens Boots Alliance AptarGroup, commented on the acquisition: to organic sales growth after a decline in has paid out dividends for “We are very pleased to announce this strategic the previous quarter. 333 quarters in a row over acquisition, which aligns with our disciplined Organic sales were up 2% while core a period of 88 years. An approach of acquiring well-managed, profitable earnings per share increased 9% to $1.04. increase has been observed businesses with innovative technology. Their Core operating profit margin also increased for 40 consecutive years. 350 base points. Overall, the company saw products and the markets they serve are net sales of $16.9bn – a decrease of 9% CIDP, a clinical research complementary to our own and we see significant largely due to the impact of foreign opportunities to leverage AptarGroup’s global company that operates in currency exchange. the cosmetics, nutrition and network to grow this business. David Taylor, President and CEO of pharmaceutical industries, “Today, dermal applications are growing and P&G, commented on the results: “We are has opened a subsidiary in evolving. Regulatory agencies in the prescription encouraged by our return to organic sales Singapore. The inauguration and over-the-counter pharmaceutical markets, growth in the quarter. With the top-line marks CIDP’s first step into and customers in the beauty and personal care improvement and continued cost reduction, the Asia Pacific region. CIDP we delivered solid core operating income markets, are seeking better ways to control already has subsidiaries in and EPS growth in the face of significant three other locations worldwide: dosing and preserve formulations across a variety macro-economic and geopolitical of products. This transaction will enable us to Romania, India and Brazil. headwinds.” French CEO of CIDP Jean- shape the future of airless solutions.” Last year P&G agreed a deal to sell 43 Louis Roule said the company AptarGroup supplies a broad range of of its beauty brands to Coty after years of was “confident that this new dispensing solutions for a number of industries declining growth, leaving core brands, such venture will bring CIDP including health care, home care, food, beauty as Gillette, as a point of focus. to greater heights”. and personal care.

Business

NEWS IN BRIEF FLAME TREE GROUP BUYS SUZIE BEAUTY auritian company Flame Tree Group is The Flame Tree Group said the colour PZ CUSSONS reported a taking new steps into the cosmetics cosmetics market is worth approximately Sh5.4bn steady set of financial results for the half year to 30 Msector by signing an acquisition and is expected to grow to Sh6.6bn by 2018. November 2015. Overall, agreement to buy Kenyan brand Suzie Beauty. According to George Theobold, Chairman of the group revenue reached The leading Kenyan colour cosmetics brand, Flame Tree Group, the acquisition will help the £385.9m, up 0.3% like-for- Suzie Beauty will be the third acquisition by company’s strategy to diversify and build a like on the half year in 2014. Flame Tree since it was listed in November 2014. portfolio of premium-positioned niche cosmetic The company said that a The company also acquired Miss Africa, Black brands. The group has been realigning and strong performance in Angel and Beautyplus hair brands from Beauty refocusing its product portfolio for its cosmetics Europe offset a difficult Plus Trading East Africa. category for both skin care and hair care. It aims trading environment in Nigeria – PZ Cussons’ to tap into the growing popularity of local hair largest market – and the care brands within the mass market. impact of weaker currencies “The link-up will help grow the brands by in Asia and Africa. broadening the reach,” said Suzie Beauty Founder Suzie Wokabi. The company was JOHNSON & JOHNSON established in 2009 and offers a range of facial has announced its full-year cosmetics including foundation, concealer, results for fiscal 2015. On the eyeshadow, eyeliner, mascara, lip gloss, blush, consumer side of the business, sales reached $13.5bn, down lipstick, powder and a full line of applicator 6.8% on 2014. The company brushes. Wokabi is set to be retained as the new said “positive contributors” to Chief Creative Director and brand ambassador consumer operational results of Flame Tree Group. included Listerine oral care products and Neutrogena skin care products. It also revealed EOS LIP BALM PRODUCTS RULED that international feminine SAFE IN LAWSUIT SETTLEMENT protection products performed well. Overall, including the Lip balm brand EOS has settled a lawsuit filed company’s pharma side of the against it last month by a group of consumers who business, Johnson & Johnson experienced adverse reactions to its products. made sales of $70.1bn for the The terms of the settlement have not been full-year 2015, down 5.7% on released but the brand has agreed to add more the year before. information to its packaging, despite reiterating that its products are safe. THE BRIT AWARDS 2016 In a statement, EOS said: “We are pleased to has named the six partners it will collaborate with for the announce that the class action lawsuit brought event on 24 February. The against EOS earlier this month [January] has brands will offer treatments been resolved. Our products are safe – and this HENKEL has announced its 2016 target of to performers at a dedicated settlement confirms that. Our lip balms are generating 320bn in sales, of which the Artists’ Bar & Spa. Laura hypoallergenic; dermatologist tested; made with Düsseldorf-based manufacturer expects Mercier has been named the the highest quality ingredients; meet or exceed all 310bn from emerging markets. Moreover, official Brits Backstage Spa safety and quality standards set by our industry its aim is to increase the percentage of Makeup Partner; Jo Malone and are validated by rigorous safety testing employees in emerging markets from 55% is Fragrance Partner; Colab in 2015 to 60% in 2016. by Ruth Crilly is Hair Partner; conducted by independent labs. We love our Currently Henkel is establishing seven Pixi is Skincare Partner; customers and their enjoyment of our products new R&D centres in emerging markets Aromatherapy Associates is is our top priority. We thank them for their including Russia, South Africa, Brazil and Aroma Massage Partner; and continued support.” India. Additionally, Henkel expects that 12 Leighton Denny has been Consumer Rachael Cronin filed the lawsuit out of 20 highest revenue countries will be named Nail Partner. after being left with blisters and bleeding, cracked in emerging markets. lips after using the product twice. Tens of Elsewhere, the manufacturer shows WEENER PLASTIK, a thousands of other consumers were reported to further interest in M&A deals in 2016. Germany-based packaging A spokesperson from Henkel told CBN: group, has unveiled a new have experienced similar issues. “Acquisitions form a substantial and integral corporate identity, which is Mark Geragos, who represented Cronin and part of our investment strategy. However, based around the concept of the consumers involved in the suit, said: “I am we do not restrict our preferences ‘clear and clean’ and includes a very pleased that we have been able to so quickly according to geographical location or new logo and company name: and amicably resolve the matter with EOS lip aspiring growth countries. We have three Weener Plastics. In addition balm products. This is a testament to EOS being main criteria: the suitable acquisition to this, Weener is moving its responsive to the concerns of their consumers.” targets must be a strategic fit for Henkel, headquarters from Weener, While fans of the brand have voiced support financially attractive and accessible.” Germany, to Ede in the Finally, Henkel plans to target fewer but Netherlands. The new, more for the decision on social media, the brand’s larger manufacturing sites and a reduced central location will be 100km Facebook page continues to receive reports of number of global suppliers in 2016. from Amsterdam Airport. adverse reactions. EOS maintains that it will not be changing the ingredients in its products.

Read more about the skin care market in this month’sCosmetics Business Markets Markets

Face masks offering multiple benefits continue to be a high growth area MARKET REPORT PREVIEW

AWAKENING FACIAL SKIN CARE

The largest skin care markets have been awash with dazzling trends over the past year. Sales of smart serums have soared while sales of WHERE IN THE WORLD? eye treatments lifted, and micellar cleansers and cleansing brushes Asian countries continue to account for the bulk of the global skin both scrubbed up well. care market with the US ranking behind both China and Japan. However, facial masks saw higher growth in many areas. It was the fastest growing facial skin care category both in China and the US, * 2.90 * scoring double digit growth. According to Kantar Worldpanel, masks UK 1.80 Russia 4.70* were bought by 48% of urban households in China at least once in 3.60* South 2014. And in the US, consumer demand for face masks rose sharply Germany Korea 3.20* in 2014, reaching a staggering 33% growth, according to Euromonitor 10.30* France 14.50* USA International. The demand attracted the attention of major category Japan 21.90* player Estée Lauder, which acquired Glamglow in January 2015. 1.80* China Italy In the US mass market, growth in masks was driven by sheet masks that have long been popular in South Korea, with popular brands including Korea’s The Face Shop and Japan’s Hada Labo 1.70 * Tokyo, which both claim to offer multiple benefits such as hydration, Brazil firming and skin brightening. The NPD Group recorded growth of 22.8% in sales of face masks in the UK for the year to October 2015 as the Instagram craze for ‘multi- masking’ stimulated demand. “It became the must-try skin care trend of the year,” said June Jensen, Director, UK at NPD. The trend looks set to continue, with Euromonitor predicting sales of face masks in the US and Europe to rise by a CAGR of 6% to 2018, compared with 4% for the total skin care market. *US$bn. Source: Euromonitor International

Retail

NEWS IN BRIEF

TFWA has found that beauty retailers are missing out on potential revenue at travel destinations. Just 14% of airport shoppers spend money on beauty despite three in ten visiting beauty halls at the airport. TFWA surveyed 1,000 consumers at various airport locations and found that many were looking for exclusive-to- travel products and more gifting opportunities.

SALLY BEAUTY has opened up its 5,000th store in Fort Worth, Texas, US. To celebrate, the brand hosted an opening party. Customers were offered expert consultations, prizes and samples. The first 500 customers were given a full size sample of Ion Styling Spray and PARFUMS DE MARLY has opened its first brick-and-mortar store were entered into a prize draw. at 26 Rue Cambon in Paris’s 1st arrondissement, France. Customers who purchased with “Rue Cambon is located in the prestigious 1st district in Paris. a loyalty card were also offered only a stone’s throw from the Place Vendôme and the Rue du a chance to win a $100 gift card. Faubourg Saint-Honoré, in the heart of a very fashionable part of the town,” a representative for the French fragrance company told CBN. “It is therefore the perfect AVERY PERFUME location for our high end brand.” GALLERY has opened a The interior of the 25sqm store uses materials such as marble and wooden mouldings “but in a concession in Selfridges, modernised way”, according to the company. The floors are white and black marble, while the London. Located on the walls are white and feature black mouldings and gilt-framed pictures. The counter and chairs are fourth floor of the store, near black with gilt detailing. The house has no plans to open further stores in France, but it is set to to the VIP Lounge, Avery has open a boutique in New York City in February, which will feature the same design concept. stocked its range of animal- “Our first Parisian boutique perfectly reflects the essence of the brand because it refers to the shaped diffusers and a 18th century, which is very precious to us as source of inspiration, when the greatest perfumes selection of fragrances. were created for King Louis XV,” said the representative. Other brands on shelves in Parfums de Marly began producing fragrances in 2011 and now has around 20 in production, the store include Agonist, most of them for men. The house also makes scented candles and accessories, all of which sell via soOud, S-Perfume and L- its website, pmarly.com, and selective outlets such as Fortnum & Mason in London. Automobili Lamborghini. The concession opened at the start of this month. NYX OPENS DIGITALLY ENHANCED Pixi unveils pop-up solution STORE IN SILICON VALLEY HOUSE OF FRASER has Colour brand NYX Professional Makeup has UK beauty brand Pixi by Petra has opened a teamed up with e-commerce platform Elevaate to offer unveiled a flagship store in California’s Silicon pop-up store in Covent Garden while its London brands a chance to buy space Valley with a focus on digital engagement. flagship is being renovated. on its online store. A selected The store, which opened on 22 January, was The temporary shop started trading on 17 number of partner brands will designed with NYX’s consumers in mind, offering January, and the newly-designed Foubert’s Place, be able to list their products on them a chance to try out new products and tools Carnaby Street, site is set to re-open in mid- the House of Fraser website. for a hands-on experience. NYX said its stores are March. The revamped flagship store will feature The platform will be offered to “truly a playground for beauty junkies who love to increased floor space, while the frontage is also all of the department store’s have fun with make-up”. due to undergo a makeover. existing brand partners. The new space includes the NYX Beauty Bar, The temporary pop-up stocks several TESCO has announced that an interactive make-up station equipped with exclusives, such as the spring/summer 2016 it is decreasing the number custom tutorials and products. Consumers can make-up line and a limited edition size of the of its superstores offering upload selfies to the system for a chance to be brand’s famous Glow Tonic exfoliating toner; 24-hour shopping. One in featured on the store’s ‘Instafeed’ digital wall. it is the first time the 100ml size has been four stores will no longer Scott Friedman, CEO at NYX Cosmetics, said: available in the UK (£10). offer round the clock sales. “We are so excited to bring NYX stores to Northern Amanda Bell, Head Make-Up Artist at Pixi A total of 74 stores will be California and provide a space for our fans to by Petra, explained the pop-up store has a affected while 300 stores will retain the service, although enjoy while they learn, play and most importantly “beautiful” makeover area with a separate bar this could end in the future if express their creativity through make-up.” for testing skin care products. it proves unsustainable. Read more about the store at For more details about the pop-up, visit cosmeticsbusiness.com cosmeticsbusiness.com

Expert advice

Come Round hosted 200 Panasonic parties to promote its new product

Does this model work for beauty brands? It’s proven itself to be incredibly successful at marketing beauty products, which lend themselves perfectly to a social event with trusted friends. For Panasonic we recruited 200 consumer influencers to take part in an exclusive trial of the new ES- WH80 Cordless IPL Hair Remover, predominantly to generate online product reviews. For Elizabeth Arden we ran a campaign in the UK, Germany and Austria recruiting a total of 400 consumer influencers. They trialled the new Taylor by Taylor Swift fragrance and created highly shareable user-generated content on social media.

How do you ensure that events are successful? HOW TO BRING We choose the consumers who best fit the audience that our clients are trying to engage, and How does the Come Round CONSUMERS TO then we give them the chance model work for brands? to get their hands on exclusive At Come Round parties, we put product or content. In our brands in the hands of relevant experience, people talk about and influential consumers to THE PARTY their parties for months create a deep level brand afterwards. We feel it’s engagement and allow them and Influencer marketing isn’t just about social media. Giles important to measure results their friends to sample and form Harris, Founder of Come Round, explains how fusing and that is why we use an opinion on the product, and online and offline interaction helps a brand’s reputation campaigns as an opportunity then share that opinion via social to gather data. media. We believe that nothing is more powerful than WHAT TO EXPECT... Do you have any advice for combining online and offline – brands looking to launch an physically putting your brand in Come Round uses its database of consumers to match influencer campaign? the hands of a consumer and brands with potential party hosts. Hosts invite their Over the past few years it then using social media to 1 family and friends to join in a special brand event. seems that tangible, in-hand amplify that experience. Hosts and guests are incentivised to share pictures on social experiences have been devalued 2 media and share their thoughts about the brand’s products. or pitted against perceived Do online and offline Last year, Come Round organised 200 parties for Panasonic’s ‘quick win’ social media platforms work well together? new ES-WH80 IPL Hair Removal System. It generated 2.2 interaction. While social media While social content is vital, it 3 million impressions on social media. has a crucial role, we believe it’s wouldn’t be possible without Come Round also recruits bloggers and social media vital to take a holistic approach tangible, real and fun influencers to join in with events to amplify the impact. For the by combining a consumer’s experiences. The physical 4 Panasonic campaign, 11 bloggers participated and reached online and offline experience to experience of a product allows 718,000 additional people. achieve meaningful engagement us to generate consumer Other brands that have taken part in Come Round that drives action. insights for clients, measuring campaigns include: Elizabeth Arden, Tesco, Lady Gaga, sentiment, likelihood of 5 French Connection and Sony Music. For the full interview, visit purchase and more. cosmeticsbusiness.com

Digital

NEWS IN BRIEF AURELIA GIVES ADVICE THROUGH SKIN TOOL K company Aurelia Probiotic Skincare has YOUCAM MAKEUP has launched a set of Makeup created a digital consultation tool with the Valentine’s Day looks and Uaim of putting bespoke skin care and a competition ahead of the lifestyle coaching into the hands of the consumer. celebration on 14 February. The Aurelia Skin Tool, available on the brand’s The competition requires website, aureliaskincare.com, can be used on a consumers to share a ‘make- computer or handheld device, and offers a up love letter’ on Beauty targeted approach for each user. Circle, an app created by The tool begins by asking users to submit the same company behind information about their typical morning, with YouCam Makeup. To create the love letter selfie, different options to select such as housework, consumers must take a breakfast or social media. It then goes on to ask photo of themselves, then on a sliding scale how the user feels upon waking apply YouCam Makeup’s up, from a low-end of “ready for bed” to a high- Coming to the end of the questionnaire, the Valentine’s Day styles to end of “ready for life”. tool asks users about what they are typically the image. Questions proceed to focus on the user’s typical doing at 5pm and how energised they feel at the skin care regime. It also accounts for those who end of the day. SHORTCUT, a New York- might not have one yet, with this being an option Upon completing the questions, a number of based on-demand barber service, has released an to select too. At this stage, users can be upfront products are recommended for use based on the optimised app to take its about whether they are happy with the results. responses. A £10 off incentive is also offered at services nationwide. The The tool also addresses how hydrated a user this stage, as well as the option to sign up to upgrades include instant and feels at 2pm. It recommends users to drink six receive a printable copy of the results. scheduled haircuts up to a glasses of water a day in order to keep skin cell To read more, visit week in advance; a clipper cut moisture levels up. cosmeticsbusiness.com offering at a lower price point; personalised hair preferences to match users with their most suited barber; mobile payment; Colgate hits runway with in-app rewards; and a feedback and rating system. Britain’s Next Top Model Oral care brand Colgate has embarked on a new SAVEASYOU has made its partnership with reality television series Britain’s debut in the UK, providing Next Top Model. shoppers with exclusive The first-of-a-kind deal for Colgate will see the offers and discounts based brand incorporated into the editorial of the new on their location. The app can be used on iOS and series as well as run exclusive content to promote Android mobile devices for the show and the partnership across social media. free. It was launched by The campaign was created by MEC Access and digital marketing agency Kal promotes Colgate’s Expert White Toothbrush Group, based in Lincolnshire. Plus Whitening Pen. The series is being aired on SaveAsYou features A+E Networks’ channel Lifetime. discounts from beauty Ana Sanchez, Marketing Director at Colgate, retailers including The Body ILLAMASQUA partnered with charity Jo’s said: “Colgate is excited to be working with MEC Shop, Browns Department Cervical Cancer Trust to raise awareness of Stores and Bella Fiore Access in forging a fully integrated partnership the importance of women attending smear Beauty Spa, among others. with Britain’s Next Top Model. The brands are tests. The two companies partnered during perfectly aligned, with Britain’s Next Top Model Cervical Cancer Prevention Week in the UK CARREFOUR has aired a offering a rich, engaging platform to launch our (24-30 January). new advert to promote an Illamasqua urged consumers to raise innovative new product – Colgate Expert White optimistic state of mind among awareness of booking and attending their Toothbrush Plus Whitening Pen.” its viewers. The ad features a tests by taking a smeared lipstick selfie and Sanchez added: “It has been a great process, child speaking over a series of posting it on social media using the working closely with Lifetime and show presenter filmed snapshots of adults hashtag #SmearForSmear. The campaign performing light-hearted acts as Abbey Clancy on a fully integrated solution that is also encouraged women to nominate a they go about their daily lives. set to bring the product to life from screen friend or relative to take a smeared lipstick The key messages of the ad are through to point of purchase. We look forward to selfie after they posted their own. It is the to do better and more with less, delighting consumers with our new whitening second year that Jo’s Cervical Cancer Trust not to waste anything, to help has run the selfie campaign. innovation and the partnership with Britain’s one another, not to compromise Every day in the UK, eight women are Next Top Model.” on taste or quality and to diagnosed with cervical cancer and three Terri Squibb, Account Director at MEC consume more effectively. The will die as a result of the disease. Today Access, said: “The deal highlights MEC’s ad was made by advertising cervical cancer is largely preventable due agency Publicis K4. It aired on diversity; we are not just a traditional media to cervical screenings and the HPV 22 January and will be live for agency but can truly deliver a 360 degree vaccination programme. three weeks from that date. campaign, in this case including everything from talent negotiation to planning a launch event.”

Innovation

IS MICROALGAE THE NEXT BIG SUPPLIER NEWS

INGREDIENT IN COSMETICS? KOREAN CONNECTIONS carbohydrate discovered in microscopic algae could find use Quadpack Group has supplied in cosmetic products. The substance was discovered by packaging for a new collection scientists at the Industrial Biotechnology Innovation Centre A of skin care products from (IBioIC) in Scotland as part of a project designed to highlight the beauty brand Erborian. Like potential impact of industrial biology on the UK economy. Quadpack, the brand has a Called Prasinococcus capsulatus, the ingredient has natural anti- presence in both France and inflammatory and anti-viral properties. It could potentially be used Korea, making the two natural in products such as sunscreens and moisturisers as well as first-aid partners. The new product creams. The ingredient requires only sea water, light and CO in 2 range includes solid cleansing order to grow, making it a natural and sustainable option for oil, herbal cleansing cream, with metal changing abilities to cosmetic manufacturers. exfoliating pearls and three prevent them from interacting IBioIC members Glycomar and MicroA have since co-founded Prasinotech – a joint venture business with an algae refinery built konjac sponges. The collection with the skin. The product also to manufacture these polysaccharides from microalgae. Prasinotech is designed to thoroughly contains potent free radical is the first company to expand following support from IBioIC. cleanse the skin, leaving it free scavengers to avoid oxidative Prasinotech plans to create two active from impurities. damage to the skin. ingredients for use in cosmetic skin care Read more at products. The two ingredients are expected cosmeticsbusiness.com to have a total annual value of £1m within three years of production. IBioIC said BACK TO BLACK that a range of similar ingredients could be Alliora created for other industrial biotechnology Coffrets has projects. The centre already works with more created a set than 50 companies and 200 academics. It aims of fragrance to bring an estimated £400m to the Scottish boxes for Yves economy by 2020. Saint Laurent. IBioIC plans to support seven start-ups before FUELLING UP The range includes 2020 while a further industrial biotechnology M&H Plastics has created a a black square box for Black Accelerator Programme will also back additional new range of foil wrapped Opium. The lid does not fully projects. tubes for male toiletries brand fit, revealing the pale pink Wingman. The Shower Fuel beneath. A thermoformed tubes have a metallic finish and wedge inside contains the LA ROCHE-POSAY RAISES SKIN CANCER hard-edged graphics. The bottle, a bag spray and make- AWARENESS IN CHILE WITH NEW CAMPAIGN brand continues to donate a up pouch. The package was La Roche-Posay has held its seventh consecutive skin cancer portion of its profits to veterans made at the Alliora Coffrets awareness campaign in Santiago, Chile, called My Skin Check charity Help For Heroes. factory in Fougères, France. 2016. The L’Oréal-owned skin care brand’s initiative shared Read more at Read more at information on prevention and detection of skin cancers to cosmeticsbusiness.com cosmeticsbusiness.com commuters in the Santiago metro system from its stand, which was strategically located in one of the busiest stations. STAMP OF APPROVAL Dermatologists worked around the clock, observing moles and RPC Bramlage has created a freckles for signs of melanoma. The company said: “According to new decoration line for the hot- data, 90% of skin cancers can be cured if detected on time.” foil stamping of its Twist Up This public campaign was the latest instalment in the campaign, Airless dispenser after high whieh has been running since 2009. A brand spokesperson from demand. The line adds eye- L’Oréal said that My Skin Check displayed the company’s catching effects to the “commitment to education and skin cancer prevention”. dispensing packages and can In Chile, skin cancer is the third most common type of cancer be used to create a glossy or and the number of cases is growing exponentially year by year, brushed metal effect. according to Chile’s CONAC agency. This year, the campaign also invited participants to “Become a Skin Checker”. La Roche-Posay CITY PROTECTION designed an interactive online Lipotec has created a new platform that teaches users the ingredient designed to protect importance of monitoring and early skin against urban pollution. detection to beat skin cancer. Pollushield provides a barrier The platform explains how to between the skin and pollutants assess if one’s skin is prone to the and boosts the antioxidative disease, and develop healthy sun defense of the skin. It binds habits based on skin type, exposure toxic metals with a polymer to the sun and age.

Brands

NEW PRODUCTS

1 COLOURPOP COSMETICS said to keep the brushes clear of butter from Cameroon, shea Palette, featuring 12 nude recently unveiled a limited bacteria such as E. coli. In tests, butter, burdock extract, zinc shades, was singled out by edition eyeshadow called Puppy the antibacterial treatment was sulphate and vitamin B7. The Lovato as one her personal Love ($5). As the name suggests, found to stop bacteria from product is also being used as favourites from the collection. the product supports animal settling and reduce the presence part of the brand’s Garden of The Lip and Cheek Tint comes welfare; all proceeds from the of E. coli by almost 100%. There England Rose Restore Hand in four shades: Cheeky Pink, sale of the eyeshadow are being are four brushes in the set: Large Treatment at The House of Cheeky Red, Cheeky Strawberry donated to Best Friends Animal Multi-Tasking Brush, Round Elemis in central London. and Cheeky Berry. Meanwhile, Society – a non-profit Foundation Brush, Eye Shading Launch: spring 2016 the Volume & Length Mascara organisation that aims to end Brush and Lip Brush. To read more, visit is said to provide up to 11 times the killing of dogs and cats in Launch: out now cosmeticsbusiness.com more volume and 64% more shelters. Specifically, the money length. Eyebrow liners in two is being put towards the 4 SOTHYS’ latest launch is a 6 BAREMINERALS has shades complete the range. organisation’s No Kill LA duo pack that comprises its strengthened its bareSkin make- Launch: out now initiative, which opposes Hydra-Nourishing Body Lotion in up offering with the launch of euthanasia on healthy animals. a bumper 400ml size with a free Complete Coverage Serum 8 PAULA’S CHOICE has Launch: out now limited edition Inspiration art & Concealer (£22). The concealer brought out a skin care range beauté shower body scrub is formulated with antioxidant that aims to help users that suffer 2 BOBBI BROWN has unveiled (£27.50). The products come lilac plant stem cells and from persistent redness and a limited edition nail and lip packaged inside an Inspiration humectants, which aid with provide a more unified collection ahead of Valentine’s art & beauté decorated box; the moisturisation. Available in six appearance to their complexion. Day, celebrated on 14 February. range is said to take inspiration shades, the concealer caters The Calm Redness Relief Rich Lip Color (£20) is available from art, music and sculpture for those with fair and dark skin Collection ($17-$32) features a in two shades: Ibiza Pink and to “give a 360 degree beauty colours. The product comes comprehensive range of skin Blazing Red. Meanwhile, Lip experience”, according to packaged inside a tube with care products including a Gloss (£19) – which contains the brand. a flattened doe-foot applicator, cleanser, toner, 1% BHA avocado and jojoba extracts which allows for more precise exfoliant, serum, moisturiser and – is available in Pink Lily and 5 ELEMIS has added a new application under the eye area. an SPF30 mineral moisturiser. Hollywood Red. Along the same product to its British Botanical Launch: out now Launch: out now red and pink theme, the brand range. The Hand & Nail Butter To read more, visit has also brought out its Nail (£18) features the same scent cosmeticsbusiness.com Polish (£12.50) in Pink Peony of lavender and chamomile, and Cherry Tomato. geranium and palmarosa. Other 7 N.Y.C. has brought out a Launch: out now key ingredients include moabi collection in partnership with Ambassador and singer Demi 3 LOOK GOOD FEEL BETTER Lovato. The Lovatics Collection (LGFB), a support charity for ($1.99-$4.99) features products women and teenagers dealing for eyes, face and lips. The with the visible side effects of Lovatics by Demi Eyeshadow cancer, has launched its Anti- Bacterial Brush Set (£35). The set was developed with the help of Bespoke Europe. The brushes are treated with a non-toxic, hypoallergenic compound that is 5 7 3

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UK singer LEONA LEWIS is the latest celebrity to front KISS PRODUCTS, which manufactures and distributes nail and lash products, including KISS Nails, KISS Lashes and imPRESS Nails. The brand said that since Lewis’ rise to global fame, her voice has captivated millions of people across the world. She’s broken countless sales records and smashed chart records, becoming one of the most successful British female artists to date and the perfect celebrity to promote the evolving KISS Nails, KISS Lashes and imPRESS Nails brands in 2016. Lewis said: “KISS Nails, KISS Lashes and imPRESS Nails are my handbag favourites and go-to products for any occasion! I love that I can use them when I’m on the go and within seconds, which is perfect with my schedule. Not only do they look completely natural, but they give the perfect salon finish, which I love. I’m so thrilled to be part of such an incredible and stylish brand.”

ON THE MOVE AT... URBAN RETREAT

URBAN RETREAT, can grow into the future. I am honoured Last year was a busy one for Urban the luxury hair and and very proud to lead and represent the Retreat as it unveiled two new offerings: beauty salon with Urban Retreat Group.” The Make-Up Salon, an area that provides its flagship store Meanwhile, George Hammer spoke of hair and make-up services, and The located in Harrods Reena Hammer’s successful progression Moroccan Hammam, a female-only spa in London, has within the company: “Reena has worked offering luxury cleansing and detoxifying announced that alongside me in the business for over ten rituals. In the same month as the launch of REENA HAMMER years, most recently as Creative & Brand The Make-Up Salon, Urban Retreat (pictured left) has Director. She has gained the support and announced that British celebrity hairdresser been appointed as Managing Director. respect of our staff, client base and Andrew Barton would be joining the team Hammer has worked for the family-run suppliers and has proved to be an invaluable as Creative Director. The move came as business for more than ten years. Prior to asset to our business. I am both delighted Barton closed his salon in Covent Garden. her promotion, she was Creative & Brand and proud to be able to announce her as the Urban Retreat also operates a diffusion Director. Her father, George Hammer Managing Director of our company.” arm of the business, U.R. Beautiful, located (pictured right) will remain as Chairman of This year, Urban Retreat is celebrating in Kingston-upon-Thames. the company, involved across all aspects. its 25th year in business and its 16th year Meanwhile, the company also has an Reena Hammer said: “I would like to in Harrods. Urban Retreat is owned by online store, the Urban Retreat Beautique, thank my father for building an amazing Hammer Holdings, which George which stocks a wide variety of products business that I, alongside our fantastic team, Hammer is also Chairman of. from the company’s partner brands.

What’s trending?

CROWD-SOURCED BEAUTY It’s every brand’s aim to get inside consumers’ minds, but is giving power to the people the right answer? ome would say there’s no better way to find out what consumers really want than by asking them directly. SIndustry experts have previously dubbed crowd-sourced beauty as the future of cosmetics, with benefits including the development of a stronger brand/consumer relationship, pre- approved access to product inspiration and increased consumer engagement. Not only does crowd-sourced beauty increase interest, but fostering two-way communication between a brand and consumer base also allows for quicker development, which could be hugely beneficial in today’s innovation-driven industry. But, with possible negatives including keeping up with demands and allowing for unpredictable changes in consumer preferences, will crowd-sourced beauty be as popular within the cosmetics industry as its potential could allow?

IN MY OPINION... IN MY OPINION...

I wouldn’t say it’s a growing trend of major I do think manufacturers are watching significance yet. The way consumers and listening to consumers more and shop in the category, however, suggests responding to the needs they see. While that crowd-sourced products could be not necessarily crowd-sourced, beauty an opportunity. Given consumers’ love is increasingly ‘crowd-inspired’. Recent of trying new and interesting brands, trends like contouring kits, which make there could definitely be an evolution of it easier to achieve contouring results, premium-niche products. The desire of reflect the response to consumer needs cosmetic buyers to try and buy new products will drive this seen through online talk and videos. The consumer base trend. The question for brands is whether they can source has changed; they now have more options and look for the products reliably and cost-effectively. The overall impact brands and products that work for them. For manufacturers, on more consumer involvement in product creation can’t the relationship with the consumer is more important. Finding help but have a modest, positive effect on demand. It is ways to let consumers know they are heard and valued is a unlikely, however, that there will be enough participants in reason this trend has grown. Another reason is the font of these processes to have a dramatic impact on the category. inspiration that can be heard from the voices of the consumer. Furthermore, believing that this involvement has major upside I think brands will increase efforts to incorporate consumer discounts the value that creative professional minds bring to voices into product creation and selection. While we can’t the product development process. However, if a manufacturer say that it has a direct impact on demand, we have seen that is content to stay as a niche brand then inviting consumer beauty brands that are quick to respond to consumer trends involvement is a good, inexpensive idea to expand their user are the ones that are outpacing growth. Karen Grant, base. Kurt Jetta, CEO and Founder of TABS Analytics Global Beauty Industry Analyst, The NPD Group

12 cosmetics business news 8 February 2016