US Prestige Beauty Grows, Consumers Look for Experience

Posted: February 4, 2015

The NPD Group presented the beauty industry’s first look at 2014 global year-end results for makeup, fragrance, and skin care at their 18th annual “Hot Off The Press” event at the Union League Club in New York on January 29, 2015. CEW partnered to host the event for the third consecutive year.

At the event, NPD shared that the U.S. prestige beauty* industry reached $11.2 billion and grew 3% in dollar sales in 2014, compared to 2013. Makeup experienced the healthiest gain, 6%, while fragrance dollars grew 2% and skin care increased by 1%.

“The beauty industry had a solid annual performance in a somewhat difficult retail environment, but there’s still plenty of room for improvement and development,” said Karen Grant, global beauty industry analyst, The NPD Group. “We saw that fewer consumers, especially beauty shoppers, cut spending in 2014.

"At the same time, 2014 reported the fewest number shopping for beauty in six years. This tells me that beauty shoppers are happy, but some may be seeking happiness elsewhere. This ‘elsewhere’ is in other products and services, as well as experiences; consumers today are not just pursuing ‘products for me,’ so much as they are seeking ‘experiences for us.’ The challenge for the beauty industry, therefore, doesn’t lie solely in the products, but in fulfilling this sense of experience, and having both play together in harmony.”

The prestige market outpaced the U.S. mass** channel, where sales remained flat for total beauty in 2014, versus 2013, as per Nielsen. The skin care category, with 2% growth, buoyed the overall market, while fragrance and makeup experienced dollar declines, by 4% and 1%, respectively.

“Beauty today is all about the base,” said Grant. “Understanding how the consumer base has changed in population and lifestyle. Each category reflects this dynamic. Before consumers apply their makeup, they want a soft, unblemished, anti-aging face. They want to feel confident about their ‘I woke up like this’ look, and are being proactive rather than reactive about their beauty choices. There continues to be growing popularity in products that are more organic and offer advanced benefits, from natural, clinical and alternative brands to artisanal scents. While consumers look at craftsmanship and point of difference, they continue to seek instant gratification, from facial masks and bronzers that offer radiance, to bold lips and a mood-boosting scent.”

Prestige makeup, skin care, and fragrance in the U.S. all experienced 2 to 4% growth in average price. The lip segment was key to makeup’s growth, driven by lip color. Of the top 100 new shades on counter in 2014, pink surpassed red as the leading color, bringing in 23% more dollars. Sets and kits drove the growth for skin care, with anti-aging sets serving as the catalyst. Fine fragrance experienced the largest increase for women’s fragrance, while it was fragrance gift sets posting the largest growth for men.

“Beauty is an industry where consumers are willing to spend, and where the majority of them—more than 80% of U.S. women alone—invest,” added Grant. “While there is brand loyalty, consumers at the same time are always on the hunt for products that will perform better, and are willing to add to their routine if a product proves worthwhile. The industry is at an advantage in the U.S.—at a crossroads, where world beauty comes together in one place, and the innovation and types of products that connect with consumers and satisfy their needs and desires show themselves in a natural light.”

Source: The NPD Group, Inc./BeautyTrends report

*Prestige Beauty: Products sold mainly in U.S. Department Stores

**Source: Nielsen, Food/Drug/Mass (516) 625 2203



Article source: http://www.gcimagazine.com/business/marketing/US-Prestige-Beauty-Grows-3-in-2014-290798121.html

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Unilever to Acquire REN Skincare

Posted: March 3, 2015

Unilever announced that it has signed an agreement to acquire REN Skincare, a British skin care brand created in 2000. REN's brand position ("performance; purity; pleasure") gives the brand, according to Unilever, a highly distinctive market position that has global relevance.

“We are delighted to be adding REN to the Unilever portfolio of personal care brands," said Vasiliki Petrou, Unilever SVP Prestige Brands. "It is a brand with an incredibly loyal following, with a unique proposition that no doubt gives it potential for even further growth, especially given that the naturals category is one of the fastest growing in skin care globally. Its premium positioning complements well our existing portfolio.”

The multi-award winning brand is currently sold in 50 countries, and is sold predominantly in specialty stores and pharmacies.

“It’s been an amazing experience creating and building REN over the last 15 years, but it’s time for the brand to go to the next level," said Antony Buck, CEO, REN. "Unilever is a great company with great principles, it has a profound understanding of brands and global reach, and it makes the perfect partner to help REN fulfil its future potential worldwide.”

Terms of the deal were not disclosed. The acquisition is expected to close in May 2015, subject to customary regulatory approvals.



Article source: http://www.gcimagazine.com/business/marketers/acquisitions/Unilever-to-Acquire-REN-Skincare-294868901.html

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How Natural Looks Can Invigorate the Beauty Industry

Posted: March 2, 2015

The natural look trend, according to Datamonitor Consumer, is here to stay, and that means the beauty industry needs to figure out how to enhance the “imperfect” beauty of every person rather than unify everyone under the same standard.

Examples of the high influence of natural looks can be found in the recent campaign from the fashion brand Desigual starring a model with vitiligo, or in the release of Cindy Crawford’s unretouched photos for Marie Claire magazine that showed her body's "flaws." This went viral, sparking thousands of positive comments for once showing a model without Photoshopping.

Reacting to the disproportionate presence of “artificial looks” with hair extensions, false eyelashes and extreme anti-aging treatments, consumers now want to be proud of their imperfections. Datamonitor Consumer has shown that 45% of consumers want their looks to reflect their age, and 55% believe that images of beauty showed on advertising are unrealistic. Consumers are tired of unachievable beauty models that are so ideal they are impossible to reach by regular consumers. Because shoppers feel they are not represented by the current standards of beauty, the logical step is toward something real.

The concept of “real beauty,” identified as looks without makeup or showing natural imperfections, is likely motivated by a feeling of nostalgia where consumers perceive values from the past—when their grandmothers were not afraid of showing their wrinkles—as the right thing, far from over-Photoshopped and unrealistic models. To this, it must be noted consumers’ lack of time for time-consuming beauty treatments and the idea of being different from the crowd as a representation of a strong personality play a role in the trend.

Beauty companies can capitalize on this idea. Dove was one of the first brands that capitalized on the value of “real beauty” by showing normal bodies in its advertisements. Now it is strengthening its positioning with a new campaign, where the company advocates for the beauty of natural curly hair, designed in relation to the launch of its new Advanced Hair Series Quench Absolute line of products.

Hair care, in fact, is one of the segments that can benefit from this natural approach; in regions like Europe the expected overall growth for the hair care market is only 9% 2014–18, much less than the 14% expected for the skin care market for the same time period. This “natural looks” approach can encourage companies to energize their offer and thus, invigorate the market.

What can we expect in the future? Surely we will see more derivations from this idea from consumers proud of frizzy hair styles to “no nail polish” looks. Natural looks can even involve the male audience in the cosmetics market in a way that they can feel comfortable even with makeup.



Article source: http://www.gcimagazine.com/business/marketing/How-Natural-Looks-Can-Invigorate-the-Beauty-Industry-294693011.html

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Hain Celestial Acquires Canadian Brand Owner

Posted: February 23, 2015

The Hain Celestial Group, Inc. announced the acquisition of Belvedere International, Inc., which owns the Live Clean brand as several mass market brands sold primarily in Canada and manufactured in a company facility in Ontario, Canada.

"We are excited by the acquisition of the Live Clean brand, which expands our presence in the personal care category and complements our Avalon Organics, Alba Botanica and Jason brands that we sell into Canada," said Irwin D. Simon, founder, president and CEO, Hain Celestial. "This acquisition increases the scale of our Canadian operations to over $150 million in net sales, and provides us with opportunities for sales expansion and cost efficiencies as we leverage our existing infrastructure in Canada and our manufacturing and research and development expertise in personal care." 

The Live Clean brand, according to the acquisition press release, is the leading natural hair care and baby care brand in Canada. In calendar year 2014, Belvedere had approximately $25 million in net sales, and is expected to be accretive to Hain Celestial's earnings in fiscal year 2016. Belvedere, which was founded by Rocco Donald Belvedere in 1981, was a family-owned company led by Larry Romagnuolo, president and CEO.

"The Live Clean brand establishes a personal care base of operations in Canada for Hain Celestial, which can serve as the foundation for the continued growth of all our personal care brands and provide us with an opportunity to expand the brand beyond the Canadian mass channel," said Beena Goldenberg, president, Hain Celestial Canada.

"I am pleased the employees of Belvedere are joining Hain Celestial Canada, who can ensure the next level of growth for the personal care business established by my family 34 years ago, and I look forward to working with Beena Goldenberg and the Hain Celestial team in pursuing new opportunities," said Romagnuolo.

Related Topics: Acquisitions (Marketers)



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Energizer Announces Creation of Edgewell Personal Care

Posted: February 23, 2015

In the next step of separating household products and personal care businesses, Energizer Holdings, Inc. announced the names of each of the two new companies upon separation, which is targeted for completion by July 1, 2015. The personal care division will be named Edgewell Personal Care upon its separation to become an independent company. The household product division will retain the Energizer Holdings, Inc. name and logo.

The Edgewell logo will be accompanied by a hummingbird symbol in aqua blue with clean, modern lines. As alluded to by its name, Edgewell intends to continue Energizer's legacy as a challenger brand.

"It's an emotionally engaging symbol that expresses our values, and it will help us to stand apart from the more traditional corporate logos in our industry," said Al Robertson, global chief marketing officerof the Energizer personal care division.

Related Topics: Announcements (Marketers)



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Mark Cuban Returning to Cosmoprof North America

Posted: February 25, 2015

Cosmoprof North America (CPNA) has partnered with The Professional Beauty Association (PBA) to bring back businessman, TV personality and Dallas Mavericks owner Mark Cuban during PBA Beauty Week hosted by CPNA. After keynoting in 2014, Cuban's specific role in the 2015 event has not been announced.

“Mark is a passionate business man with a massive amount of success, yet he remains an approachable and genuine advocate for all entrepreneurs,” said Scott Buchanan, chairman of PBA. “We’re pleased to present business owners with a glimpse into the mind of a leading entrepreneur and know that the takeaway for all attendees will serve as an invaluable tool as they continue to write their brand stories.”

Mark Cuban first participated at Cosmoprof during the 2014 event, in which he served as a keynote speaker for the PBA Business Forum. In his presentation, he challenged brand owners to up their game in striving for success, remarking “you have to know your competition, be prepared and understand your industry better than anyone else.”

“Before I was 'Mark Cuban successful entrepreneur,' I was 'Mark Cuban aspiring entrepreneur,'” said Cuban. “The steps a business owner takes in the growth phase are crucial to success and it was important to me to share the lessons that I’ve learned through both winning and losing in the business world.”

“The business of beauty is always evolving, and we are constantly brainstorming new programs for our event that will make an impact with brands and retailers alike,” said Daniela Ciocan, marketing director, CPNA. “We’re thrilled to have Mark on board, and can't wait to unveil how his participation will change the game for Cosmoprof North America and PBA Beauty Week.”

Cosmoprof North America will be held July 12–14, 2015, at Mandalay Bay Convention Center in Las Vegas.



Article source: http://www.gcimagazine.com/networking/coverage/Mark-Cuban-to-Return-as-Cosmoprof-North-America-Keynoter-294049081.html

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Shiseido Empowers Its Beauty Consultants with Mobile Apps

Posted: February 26, 2015

IBM collaborated with Shiseido to empower its nearly 10,000 beauty consultants in Japan with mobile apps designed to provide new customer services, customer-centric product improvements and social innovations.

With the global beauty care products industry forecasted to reach approximately $265 billion in 20171, Shiseido has been investing across its product lines and in technologies, including information technology, to empower its global brand ambassadors/consultants to gain market share and improve customer satisfaction.

Shiseido selected the IBM MobileFirst Platform to develop and secure an enterprise app for its "Beauty Tablet," which it launched in 2013. The mobile app built on the IBM MobileFirst Platform has multiple modules and increasing capabilities for internal operations. Integrated to Shiseido's back-end systems, the app is a beauty consultant's one-stop mobile solution for communications, scheduling, reporting and other tasks that increase productivity.

"We are marking the 80th anniversary of the Shiseido beauty consultant (a role that continues to transform the relationship between the customer and our products), and with new mobile apps, Shiseido Beauty Consultants continue to engage customers with 'Omotenashi' (the Japanese spirit of hospitality) to differentiate the Shiseido customer experience," said Chikako Sekine, corporate executive officer, Shiseido Co., Ltd. "IBM is a valuable partner, supporting our company's long term vision to continuously enhance our brand value and drive growth and leadership in the global beauty industry."

One module in the app creates a virtual community for beauty consultants to learn from each other. By sharing photos, tips and tricks, and commenting on each other's work, consultants across Japan build a greater sense of pride and teamwork, according to the company. Social data analytics identify best practices and incorporate knowledge and know-how into future training, toward building consistent service and skills.

"With more consumers expecting personalized experiences across every channel, brands must empower their salespeople with the tools and insight to provide greater customer service," said Phil Buckellew, vice president, enterprise mobile, IBM. "IBM's partnership with Shiseido will help maximize and accelerate its mobile strategies to drive greater brand differentiation and higher levels of engagement."

1. Lucintel, "Global Beauty Care Products Industry 2012-2017: Trend, Profit, and Forecast Analysis"



Article source: http://www.gcimagazine.com/business/marketers/announcements/Shiseido-Empowers-Its-Beauty-Consultants-with-Mobile-Apps-294222661.html

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H2O+ Appoints New CEO

Posted: February 24, 2015

H2O+, which markets marine-based skin care products and is owned by Pola Orbis Holdings, announced the appointment of Joy Chen as the company's new president and chief executive officer.

Chen brings over 20 years of industry experience and a track record, according to the company, of driving sales and profit growth in demanding, complex turnaround situations. She is most noted for her motivation of multifunctional teams, innovative problem solving and decisive executive leadership skills instrumental to building successful businesses.

 "I am thrilled to join H2O+ and expand upon what the brand has accomplished in its 25-plus year history,” said Chen. “It’s exciting to be working with a company that is so passionate about their brand and has so much opportunity.”

Prior to her current appointment, Chen served as the CEO of Yes To Inc., where she managed the skin and body care portfolio’s expansion of North America and International distribution. And prior to her role at Yes To , she served as vice president of sales and marketing at Clorox Company before transitioning to become the general manager of the company's laundry business unit.

“Pola Orbis welcomes another well-rounded executive to our leadership team,” said Yutaka Den, chief business global director of Pola Orbis Holdings. “More than ever, the Pola Orbis Group is committed to H2O+, and we are very much looking forward to working closely with Joy.”

Related Topics: Announcements (Marketers)



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Mark Cuban to Return as Cosmoprof North America

Posted: February 25, 2015

Cosmoprof North America (CPNA) has partnered with The Professional Beauty Association (PBA) to bring back businessman, TV personality and Dallas Mavericks owner Mark Cuban during PBA Beauty Week hosted by CPNA. After keynoting in 2014, Cuban's specific role in the 2015 event has not been announced.

“Mark is a passionate business man with a massive amount of success, yet he remains an approachable and genuine advocate for all entrepreneurs,” said Scott Buchanan, chairman of PBA. “We’re pleased to present business owners with a glimpse into the mind of a leading entrepreneur and know that the takeaway for all attendees will serve as an invaluable tool as they continue to write their brand stories.”

Mark Cuban first participated at Cosmoprof during the 2014 event, in which he served as a keynote speaker for the PBA Business Forum. In his presentation, he challenged brand owners to up their game in striving for success, remarking “you have to know your competition, be prepared and understand your industry better than anyone else.”

“Before I was 'Mark Cuban successful entrepreneur,' I was 'Mark Cuban aspiring entrepreneur,'” said Cuban. “The steps a business owner takes in the growth phase are crucial to success and it was important to me to share the lessons that I’ve learned through both winning and losing in the business world.”

“The business of beauty is always evolving, and we are constantly brainstorming new programs for our event that will make an impact with brands and retailers alike,” said Daniela Ciocan, marketing director, CPNA. “We’re thrilled to have Mark on board, and can't wait to unveil how his participation will change the game for Cosmoprof North America and PBA Beauty Week.”

Cosmoprof North America will be held July 12–14, 2015, at Mandalay Bay Convention Center in Las Vegas.



Article source: http://www.gcimagazine.com/networking/coverage/Mark-Cuban-to-Return-as-Cosmoprof-North-America-Keynoter-294049081.html

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Glossybox Announces Profitability After a Year of Restructuring

Posted: February 24, 2015

Beauty-discovery subscription platform Glossybox ended 2014 profitably, posting seven-digit sales. Further, the beauty box company, which does business in more than 10 countries, was profitable every month in 2014. The company’s customer base simultaneously grew by more than 25%, while marketing costs were reduced by 33%.

For Glossybox, the most important key to success has been a focus on customer satisfaction, which, on average, increased from 68% in 2013 to well over 80% in 2014, with a maximum increase of 95%. The company cites transformations that it began in late 2013 and completed in early 2014, and notes that changes it made have been far-reaching. Glossybox is now less centralized, its efficiency and processes improved, and a stronger focus on its 10 core countries has been established.

“The entire Glossybox team is excited about the great corporate development,” said Glossybox founder and CEO Charles von Abercron. “We’ve worked very hard for this success, and had to make some difficult yet necessary changes. It appears to have paid off as we have opened up opportunities by becoming profitable. We will use these opportunities to work on making our vision—to become the number one source for beauty discoveries worldwide—a reality even sooner.”



Article source: http://www.gcimagazine.com/business/marketers/announcements/Glossybox-Announces-Profitability-After-a-Year-of-Restructuring-293868631.html

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