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Kao Likely To See 10-Percent Profit Boost In 2016, Analysts Say

Kao is expected to have raised its group operating profit 10 percent to approximately 190 billion yen, or $1.66 billion, in 2016. Earlier, the company has projected operating profit to reach 184 billion yen for the year, with sales expected to have reached about 1.55 trillion yen. Sales were driven by the growing number of households in the country.

"Kao seen boosting profit 10% for 2016", Nikkei, January 17, 2017

More South Korean Men Wear Make-Up, Boosting Male Beauty Market

Sales of men’s skincare products in South Korea rose more than 80 percent in the past five years. Driven by the country’s weakening economy and competitive job market, the men’s cosmetics segment now accounts for 10 percent of South Korea’s $10 billion beauty market. Toners, lotions, and BB creams are some of the favorite skincare products of male consumers, who are increasingly convinced that putting on makeup helps improve their self-confidence and, consequently, their chances of landing a job or finding a new partner.

"Men in South Korea are wearing make-up to boost their self-confidence",, January 16, 2017

Target Launches Haircare Product Range Developed By Celebrity Stylist Kristin Ess

Retailer Target will launch Kristin Ess Hair, a line of haircare products developed by celebrity hairstylist Kristin Ess on January 5, 2017. Featuring 15 products, the range includes styling powder and a reconstructive mask, with prices ranging from $10 to $14. As part of the company's efforts to promote the product launch, Target will launch a related social media campaign.

"Target Taps Social Star for Hair-Care Collection", Women’s Wear Daily, January 11, 2017

L’Oreal’s Smart Brush Demonstrates Internet Of Things Application For The Beauty Industry

L’Oreal’s smart brush, unveiled at CES 2017, is just one of a number of products responding to opportunities provided by the Internet of Things within the consumer products industry, including Beauty. Smart devices are allowing brands to brands to become more involved in consumers’ daily routines. The smart brush is being sold at around $200, and only time will tell if consumers regard that as a price worth paying for the benefits it provides – better and more personalized information, performance monitoring and suggestions for improvements, as well as tips and recommendations. These aren’t necessary attributes for a hairbrush or toothbrush, but they will make life a bit easier for consumers, and brands can become better connected to ...  More

"How the beauty industry is embracing the Internet of Things", Econsultancy, January 11, 2017

Amorepacific Joins Alshaya Group To Expand Middle East Operations

South Korean cosmetics company Amorepacific Group partnered with local retailer Alshaya Group to expand its business operations in the Middle East. With the Middle Eastern cosmetics market forecast to expand at a CAGR of 15 percent from $18 billion in 2015 to $36 billion in 2020, Amorepacific plans to open its first Etude House store in Dubai in the second half of 2017. Amorepacific has invested years in developing “regional expertise” in the Middle East by appointing regional experts, called Hyecho, to major urban areas in the region, such as Dubai, Abu Dhabi, and Teheran.

"Amorepacific Group Expands to Middle East Market", Amorepacific, January 11, 2017

Coty Partners With Online Social Selling Platform Younique

Coty Inc. said it has partnered with Younique, an online peer-to-peer social selling platform focused on the beauty market. As part of the agreement between the companies, Coty plans to purchase a 60-percent stake in Younique, with the online company's founders holding on to the remaining 40 percent. Also, Younique founder and CEO Derek Maxfield and chief visionary officer Melanie Huscroft will stay on in their leadership roles.

"Coty to Enter Into Partnership With Younique, a Leading Online Peer-to-Peer Social Selling Platform in Beauty", Coty, January 10, 2017

Shiseido Americas Names Papazian GM Of Laura Mercier Business

Shiseido Americas Corporation said it has named Alexandra Papazian as general manager of it Laura Mercier business. Effective March 1, 2017, Papazian will be based in New York and will be responsible for creating and implementing the overall strategy for the business in the US and overseas markets. She will also manage the brand's expanded marketing efforts, product development, digital marketing, and overseas expansion.

"Adding Multimedia Shiseido Americas Announces Appointment of Alexandra Papazian as General Manager of Laura Mercier", Business Wire, January 10, 2017

New Skin Nourishment Range From Burt's Bees With Royal Jelly

The Burt’s Bees natural skincare brand is introducing a new Skin Nourishment range for the face, containing vitamins, amino acids, antioxidants, and minerals. The range also contains royal jelly, which is produced by honeybees to feed the queen, and cleanses, hydrates and softens the skin. The products will be available in the natural grocery, drug, gift and specialty store channels as well as select mass retailers, including Target and Walmart. [ Image credit: © Cadalpe ]

"Burt’s Bees Debuts Royal Jelly Skin Care", Happi, January 10, 2017

L'Oreal Buys Skincare Brands From Valeant

L'Oreal SA has agreed to acquire the skincare brands CeraVe, AcneFree, and Ambi from Valeant Pharmaceuticals International Inc. Worth more than $1.3 billion in cash, the deal covers the brands, which account for $168 million in combined annual revenue. Aside from supporting L'Oreal's fastest-growing businesses, the acquisition of Valeant's skincare brands is also expected to help the company expand its US operations.

"L'Oreal's Pricey Problem Solvers", Bloomberg Gadfly, January 10, 2017

New Versions Of Consumer Goods Sound The Death Knell For Older Products

New versions of consumer staples – alkaline batteries, bar soup, ground coffee, etc. – have led to the gradual decline in sales of the older versions. As consumer habits evolve, devotees of the older versions of staples – which may start to disappear from store shelves – may have to start stockpiling. IRI tracks sales on the older iterations of products, and here are some examples of the trend since 2011: margarine sales have fallen 24 percent as consumers turn to full-fat dairy products like butter; bar soap sales have dropped seven percent, as body wash sales surged; powder laundry detergent is down 47 percent, surpassed by pods, pacs, and liquids; single-serve coffee pods have pushed ground coffee sales down by eight percent; and frozen ...  More

"Last on the Shelf: How Products Dwindle Out of Favor", The Wall Street Journal, January 10, 2017

Chinese Consumers Are Adapting Priorities As China Changes

In an interview, Delon Wang, Manager of Asia Pacific Trends at Mintel, warned that the rapid growth seen in China’s consumer goods industry might slow as economic growth decelerates and the population adapts priorities to the new China, focusing for example on buzzwords like ‘ancient’ and ‘old’. Mintel’s Global New Products Database indicates that product claims including the word "ancient” on packaging grew 56% in the first half of 2016 within China’s beauty and personal care and food and drink and categories. Wang said that consumers are demanding authenticity, and they are increasingly concerned about health and the environment. Value remains another key attribute for consumers. More consumers are also looking at opportunities to be ...  More

"China’s cosmetics and consumer trends in 2017 part I: A change of pace", Cosmetics Design, January 10, 2017

L'Oréal To Buy Three Skincare Brands From Valeant

L'Oréal is continuing its run of acquisitions into 2017, signing an agreement to acquire three US-based skincare brands from Valeant for US$1.3 billion. Founded in 20015, CeraVe is a fast-growing skincare brand that offers skin cleansers, moisturizers, sunscreens, and baby products through drug stores, mass and beauty retailers, as well as online. AcneFree offers over-the-counter treatments for acne. Ambi’s skincare products treat dark spots and brighten skin. Combined sales are some US$170 million. L'Oréal USA says that the three brands are founded on relationships with health professionals and will nearly double sales for the Active Cosmetics Division. [ Image credit: © Sandro Hyams ]

"L'Oreal signs agreement with Valeant to acquire CeraVe and two other brands", L'Oréal, January 10, 2017

Amazon Making Progress With Prestige Skin Care, Provides Rich Content To Engage Consumers

Amazon continues to build out its offering across new categories and its Amazon Luxury Beauty store shows it will be a contender in premium segments. The company recently added a page targeted at prestige shoppers - Amazon Professional Skin Care-that provides a range of ‘tools and kits to help you develop a complete daily care regimen.’ Amazon offers simple to use filters (shop by concern, expert advice…) along with videos and educational features that engage consumers. Color cosmetic players have for a while offered rich and engaging content but skin care brands have lagged and Amazon is moving to plug the gap - content on the Amazon page exceeds what is available at retailer websites and many beauty blogs.  It also looks to be winning
...  More

"Amazon Makes Strides in Skin Care", L2 Daily, January 09, 2017

Unilever's Premium Skincare Play Could Improve Margins And Valuation

Industry analysts Trefis believes that Unilever’s move into premium skincare, through a number of acquisitions, will help the company improve its EBITDA margins from a relatively low 18 percent to something closer to those generated by industry rivals. Trefis says that Unilever’s margins have been held down by relatively high marketing costs as a percentage of revenues; a reliance on mass, low-margin products; and increasing costs of raw materials, exacerbated by the impact of Brexit on sterling. A higher-margin, more premium-oriented portfolio will help address some of the pressures, supported by expected growth in the premium skin care segment and Unilever’s attack on costs from adoption of Zero Based Budgeting. Trefis believes Unilever ...  More

"Unilever’s Valuation Could Increase By 20% If Its Margins Rise Up to 25%", Trefis, January 05, 2017

Companies, Organizations  

Unilever Indonesia Unveils Smaller Capex For 2017

Unilever Indonesia announced its plan to spend €115 million, or $120 million, to expand its factories in 2017. In 2016, the company spent Rp 2 trillion, or $150 million, an amount 20 percent higher than the 2017 figure, because the company needed to relocate to a larger headquarters. Unilever Indonesia operates nine factories across the country.

"Unilever Indonesia Cuts Capex for 2017", Jakarta Globe, January 12, 2017

Revlon Names Gwen Stefani As Brand Ambassador

Revlon announced the appointment of celebrity Gwen Stefani as its latest brand ambassador. With the brand planning to feature Stefani in various digital-first campaigns, the pop singer will appear in Revlon’s Choose Love campaign, which will run on broadcast, digital, and social media. Also, the brand’s designed-for-mobile website offers behind-the-scenes looks and content from the celebrity’s campaigns. Content will also be available on Facebook, Twitter, Instagram, YouTube, and Snapchat.

"Revlon will Feature New Brand Ambassador Gwen Stefani in Digital Content", Mobile Marketer, January 04, 2017

Products & Brands  

Aquafresh Marketing Claims Misleading, Advertising Standards Authority Says

Aquafresh has been ordered by the Advertising Standards Authority to stop claiming that its Aquafresh Complete Care protects teeth better than other brands do. Colgate-Palmolive filed the complaint against the marketing claims made by Aquafresh in an advertising campaign and on packaging, which claimed the product offered “24-hour sugar acid protection. Aquafresh admitted its product had no “unique ingredients” but claimed its advertisements made no “unsubstantiated claims.”

"Aquafresh and Colgate go head to head in ad war", HeraldLIVE, January 16, 2017

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