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Personal Care Business Insight Alert Archive

Have a look at some of our recent alerts. These give broad coverage of the industry - if you want something more specific create your own here.

<<567891011121314>> Total issues:308

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January 30, 2016, to February 06, 2016

Walgreens Boots Alliance Plans To Expand Beauty Business In US

Drugstore chain Walgreens Boots Alliance plans to expand its beauty business in the United States, according to WBA executive vice chairman and CEO Stefano Pessina. Speaking at the company’s annual shareholder’s meeting in New York City, Pessina said WBA plans to duplicate Boot’s success in the UK beauty market. WBA is currently doing a pilot test of the Beauty Evolution initiative at 13 stores in the Houston area. Also, the company plans to launch another program it calls Beauty 2000 in the summer of 2016.

Hain Celestial's 2nd Quarter Sales Set A Record

Hain Celestial Group posted an eight percent increase in second quarter sales over the prior year, $753 million compared to $696 million. The company said sales were affected by $18 million in foreign exchange rate movements. Profit per diluted share increased 28 percent to $0.55 a share, while adjusted EPS was $0.57 a six percent increase. The company’s record sales reflect continuing strong performance from the U.K. and “Rest of World” markets that grew 12 percent. The Hain Pure Protein Corporation segment grew 21 percent, excluding the acquisition of Empire.  CEO Irwin D. Simon said the strong results reflect “our global diversified business model across Hain Celestial's organic and natural brands, product categories, customers and geographies."

Technology Plays Important Role In Unilever's Personal Care Product Development

Unilever integrates technology and innovation into its process of developing soaps, body washes, and other personal care products. According to the company, a focus on consumer benefits drives its efforts to create technology platforms. Unilever employs a research team working on ideas in a two- to five-year timeframe, as well as design centers by product category. Always, the company develops technology in line with its global sustainability objectives. Dove’s applications of technology include body washes with gentler tech and its Advanced Care Antiperspirant Deodorant line.

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January 23, 2016, to January 30, 2016

Sephora Announces Program For Women-Owned Beauty Startups

Beauty retailer Sephora announced the Sephora Accelerate program to help support beauty startups established by women entrepreneurs. Part of the company’s Sephora Stands social impact initiative, the program aims to inspire confidence and fearlessness among women. With data showing women entrepreneurs do not have the same access to funding, connections, or business instructions as their male counterparts, Sephora Accelerate was designed to build a community of female business founders in all areas of the beauty industry. Qualified candidates are encouraged to apply for one of up to 10 spots in the year-long program. Sephora Accelerate fellows will participate in a boot camp at the company’s San Francisco headquarters to learn the necessary skills to run and build their businesses.

Seven Scent Becomes First Halal-Certified Fragrances Company In UK

Seven Scent secured halal certification for all of its lines of fragrances. To achieve this, the company had to go through an extensive audit of its manufacturing process by The Halal Trust. Based on principles of Islamic law emphasizing safety and wholesomeness, the certification audit covers cleaning and manufacturing systems. Also, the process included laboratory testing of fragrances randomly selected to establish qualitative and quantitative validation.

Old Spice Launches Twitter Campaign With Future Selves Asking Consumers' Questions

Procter & Gamble’s men’s grooming brand Old Spice launched a social media campaign on Twitter. Created by Wieden + Kennedy, the Twitter campaign began with a post asking consumers what they would like to ask their future self. Consumers who replied to the tweet received an answer from a Twitter account created by the brand for their “future selves.”

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January 16, 2016, to January 23, 2016

Marketers Face Growing Consumer Efforts To Avoid Ads

Consumer packaged goods companies are trying to find ways of maximizing marketing efficiency when consumers are doing their best to avoid advertisements. For example, Unilever spends $7.7 billion on advertising worldwide and another $15 million to protect that investment by working with marketing-technology startups through its Foundry program. In the United States, the Great Recession and economic policy changes have battered the middle class, pushing more people into the lower class. Clorox shifted more than 40 percent of its media spending to digital marketing, which uses programmatic media, to serve most relevant ads to consumers. Also, marketers are putting their ad spending into media where ads are harder to avoid, such as sports and other live TV programs.

World Cosmetics Market Continues Move Toward Cruelty-Free Products

After the European Union banned animal testing for cosmetics in 2013, a number of countries have also outlawed the practice. Although some cosmetics companies still use animals to test the safety of their products before releasing to the market, consumers are increasingly voicing their opposition to the cruel practice, with 57 percent of adults surveyed by Nielsen saying they prefer products with packaging that indicates the manufacturer did not perform animal testing. There are alternatives to animal testing, including in vitro testing and the use of human skin equivalent systems. Manufacturers can also use established ingredients to ensure that their products are safe for humans. Obstacles to achieving “animal testing free” status include the animal testing law in China, one of the world’s largest cosmetics market, and government policies that neither ban nor encourage animal testing in Japan.

Dettol Looks Back At 2015 Kumbh Mela Campaign

RB’s hygiene and household cleaning brand Dettol partnered with advertising agency McCann to launch its “Kam Paani Mein Zyada Suraksha” campaign aimed at pilgrims attending the 2015 Kumbh Mela event. As part of the marketing campaign, the company distributed Dettol hand sanitizers and assigned volunteers at various locations, including food centers, health centers, and bathing areas. Also, the brand promoted health- and sanitation-related messages using flyers and radio channels.

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January 09, 2016, to January 16, 2016

Old Spice Launches Hardest Working Collection Line Of Deodorants And Body Washes

Old Spice launched the Hardest Working Collection line of anti-perspirants and body washes for men. Described by the company as the most powerful Old Spice products yet, the line is designed to provide men with “performance” protection from odor and sweat, as well as body washes that clean. Includes in the Hardest Working Collection are the Odor Blocker Anti-Perspirant/Deodorant, Sweat Defense Anti-Perspirant/Deodorant, and the Dirt Destroyer Body Wash. To help support the launch, the brand introduced the Legendary Protection for Legendary Men integrated marketing campaign developed with advertising agency Wieden+Kennedy.

The Goodwell Company Offers Consumers A Toothbrush That Lasts Forever

E-commerce startup The Goodwell Company is selling a $29.99 sustainable toothbrush that company founder Patrick Triato says is designed to last forever. Designed to be compostable, several accessories for the toothbrush include head replacements, floss, and tongue scrapers. These can be bought as a one-time purchase or through a subscription service offered by the company. Oral care sales are forecast to expand at 3.1 percent per year in the next five years, according to market research firm IBISWorld; however, the company faces serious competition in the market from major brands, including Procter & Gamble’s Oral-B.

Sephora Looks At Amazon And Prestige Beauty Market For Growth Ideas

Beauty retailer Sephora Americas president and CEO Calvin McDonald said his company aims to further grow its business by integrating lessons it has learned from online retailer Amazon and the prestige beauty market. Stating that Sephora’s success depends on balancing exclusive, limited, and broad brands, McDonald said Amazon’s success as a mass merchant poses a threat to the beauty retail market. Sephora’s Beauty Tip Workshop strategy, which combines brick-and-mortar, mobile, and digital channels aims to help the company compete with the online retail giant.

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January 02, 2016, to January 09, 2016

L'Oreal Introduces Smart Skin Patch That Measures Skin's UV Exposure

Beauty brand L’Oreal introduced a smart skin patch, which can monitor the skin’s exposure to harmful UV rays, at the 2016 CES electronics trade show in Las Vegas. To be launched in 16 countries, including the UK, this summer, the product will be offered for free. Developed by the company’s technology incubator department, the patch includes a photosensitive blue dye, which changes colors when exposed to UV light.

Forty-four House Brands Of British Supermarkets Win “Best Buy” Nod

The U.K. product testing website Which? announced its list of 44 supermarket own-brand “Best Buy” awards for 2015, naming Waitrose as the leader. Forty-seven percent of the company’s products were recommended as a Best Buy. Second on the list was Aldi with 40 percent. Which? tested 160 supermarket own-brand products, including food, drink, cleaning products, batteries and sunscreens to determine which ones shoppers can leave on the shelves. Sainsbury’s and M&S had at least a third of their products named as Best Buys. Sainsbury’s and Lidl were awarded Best Buys for food, drink and household products. Asda and Tesco fared the worst overall, with only five percent of their house brands awarded Best Buys.

Sephora Comes To New Zealand

Cosmetics retailer Sephora plans to launch its business in New Zealand. By acquiring the beauty website Luxola New Zealand, and transforming it to Sephora NZ, the company will be able to ship products to their local consumers. While Sephora’s acquisition of the website means consumers can now access other brands, such as Kat Von D, Marc Jacobs, and BECCA, the online store will now stop selling Maybelline and L’Oreal Paris products.

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December 26, 2015, to January 02, 2016

Shiseido's Board Of Directors Names New Representative Director

Shiseido Company, Ltd. announced the appointment of Tsunehiko Iwai as representative director. According to the company, at present, its board of directors has two representative posts, occupied by company president and CEO Masahiko Uotani and Toru Sakai. Iwai was elected to the board to take charge of legal and corporate governance starting in 2016.

Chanel Launches Video Campaign Featuring Fashion Model Gisele Bundchen

France-based fashion company Chanel launched a video advertising campaign for its N°5 fragrance brand featuring fashion model Gisele Bundchen. Titled “An Intimate Conversation with Gisele Bundchen About Nature,” the video takes a personal approach to marketing, highlighting the significance of scents for consumers and people around them.

Shiseido's YouTube Video Ad Wins Top Honors At Epica Awards 2015

Shiseido’s online video advertisement, “High School Girls? - The Secret of High School Girls,” won the Gold prize in the Online Campaigns – Luxury and Direction & Cinematography categories at the Epica Awards 2015 held in Berlin. Also, the video won the Grand Prix Film prize after it was unanimously chosen by members of the judging committee. Released only on YouTube, the ad aims to highlight the fun of makeup for young people.

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December 19, 2015, to December 26, 2015

Reckitt Benckiser Says Peter Harf Leaving Board Of Directors

Reckitt Benckiser Group announced that Peter Harf will leave the company’s board of directors to focus on his job as chief executive officer at JAB. Marking 16 years of service on the RB board of directors, Harf said “it has been a pleasure to work with the company.” RB chairman Adrian Bellamy said Harf has been a highly valued member of the board.

Sephora Launches Environment-Friendly Logistics Solutions In China

Cosmetics retailer Sephora launched its Green City Logistics, a supply chain solution designed to be environment-friendly by using electric vehicles in delivery, in Shanghai and Beijing. Part of the company’s latest efforts to protect the environment and cut pollution, the initiative seeks to reduce the emission of carbon dioxide from logistics and transportation in fast-expanding mega-cities. Electric vehicles will be used to transport goods between Sephora warehouses and retail stores.

Sephora Receives Recognition For Its Sustainability Efforts

Beauty retailer Sephora received the Sustainable Brand and the 2015 R Award for eco-design from Generation Responsible. Recognizing the specialty retailer’s sustainable development initiatives, the awards form part of the organization’s efforts to promote corporate efforts to protect the environment. Sephora agreed to support the organization’s sustainability campaign.

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December 12, 2015, to December 19, 2015

Unilever’s Foray Into Prestige Skin Care

Is Unilever changing its spots? The company’s emphasis on personal care and specifically prestige skin care suggests it wants to move from its detergents, soaps and foods heritage to become a beauty player
 
Double the Business, with Personal Care leading
Unilever aims to double the size of the business and deliver this partly, and probably largely,through growth in its Personal Care category.
 
It’s been getting steadily more reliant onPersonal Care: the category contributed nearly 37% of total sales in the first half of 2015, up from just over 30% five years ago. And Personal Care is increasing its share of operating profit, from 36% in 2010 to almost 45% today. Moreover, its share of operating profit is larger than its share of sales, underlining its importance to both turnover and margin growth.
Food divestments partly explain this: Unilever has jettisoned certain food brands, but there has also been an explicit strategy to build up the Personal Care business.
Unilever’s CEO, Paul Polman said he would like to see Personal Care contribute half of all company sales, adding that Unilever’s personal care business is now the second largest in the world, after L’Oréal.
 
 
Betting big in Prestige
Even with this context, Unilever surprised many with its announcement, backed by a number of recent acquisitions, that it is making a serious move into prestige skin care.
 
At the Q3 2015 earnings call, Unilever’s new CFO, Graeme Pitkethly, said that the priority for Personal Care is continuing to grow the core while also building premium.
Mass still remains critical for Unilever. Skin care and hair care account for some 70% of its Personal Care sales. It has large individual brands, like TRESemmé, “well on its way” to being a billion euro brand, and other brands that already sell a billion dollars a year: Dove, Rexona deodorants and antiperspirants, Lux soaps and shampoos, Axe male grooming products, and Sunsilk women's hair care products.
But, Unilever is now betting big on prestige/premium, with the launch of premium products from TRESemmé and Dove, and notable skin care acquisitions this year, which now reside in a new prestige business, alongside existing premium brands, like IOMA and Regenerate.
 
Unilever expects this new business to become a major prestige player. Sales are “rapidly approaching” €500 million, but the company is moving cautiously and acquisitions have been paused. Polman wants to take it gradually, with “moderate acquisitions… learning our way into this in a very mindful way.”
 
Hoping to tap emerging market demand
As well as Personal Care, a major strategic driver for the company is the emerging market space and its growing numbers of increasingly affluent middle classes.
Emerging markets already account for well over half of Unilever’s total revenue (58% in the first nine months of 2015), and this share should continue to grow.
Another reason for the move is the rapid growth of the prestige market globally. It is growing faster than the market overall and remains relatively unconsolidated, providing white space opportunities.
 
With an aging and increasingly wealthy global population looking to turn back the clock, Unilever would not be alone in eyeing the opportunity for professional and prestige skin care options. The premium segment now drives much of global skin care market growth.
 
Even when economic growth has waned in developed markets, demand for premium products has grown while mass market demand has struggled.
 
The acquired brands
In 2015 Unilever purchased four prestige skin care brands: REN Skincare, an “iconic” British skincare brand; Kate Somerville Skincare, “one of the most trusted names in the premium US skincare market”; Dermalogica, a professional skin care brand available in salons and spas; and Murad, a “leading clinical skincare brand”.
Taken together they represent about $430 billion in fast-growing sales.
 
 
What has Unilever bought?
Except for Kate Somerville, which is mainly US-focused, but with a small Asian presence, the brands have a fairly broad geographic reach, in both developed and emerging markets.
 
They also offer different types of products and channels, enabling Unilever to fill what one commentator calls “capability gaps”.
For example, REN provides access to the prestige naturals segment, where Unilever is otherwise under-represented, as does Kate Somerville, but with a different geographic perspective.
 
According to Kline, the acquisitions allow “Unilever to make a dent in channels such as prestige, specialty, and professional, which until now were not the firm’s forte.”
Dermalogica and Murad are more focused on the professional business, with skin health expertise.
 
Dermalogica draws on expert endorsement and education, and has a presence in complementary channels.
 
Murad is an expert “Doctor brand” that offers clinical and holistic wellbeing, and has a loyal following. In 2014, it purchased its UK distributor to drive expansion in Europe. It is also expanding in Asia, where China would seem a good fit for the brand.
 
At a minimum, the acquisitions help Unilever build a hedge against soft growth in mass channels, provide sales opportunities in both advanced and emerging markets, and give Unilever access to new channels and segments.
They also bring new, dynamic and innovative talent and expertise required to build smaller “indie” brands that compete with larger, established players in skin care and other categories.
 
Will the strategy work?
A broader question is whether the company can use these assets to become a successful major prestige player.
 
Paul Polman believes Unilever is already at “critical mass” in prestige, enabling it to be a “major player right away,” but buying scale is different from delivering success.
Euromonitor’s Ildiko Szalai believes the brands are relatively narrow geographically, too niche, and the new prestige business too small, and it might struggle to compete with the established, global prestige powerhouses like L’Oréal, Estee Lauder and LVMH.
 
History is littered with companies that overreach, pushing too far beyond their core competency, and the skills required in prestige (high-touch marketing, higher R&D spend, different channels…) are very different from Unilever’s traditional capabilities.
But, perhaps in today’s world of fast and massive disruption, core competency might be an outdated principle. Think Nike’s push into digital, Apple’s iPhone, Netflix’s original content, and Google’s Android program. Closer to personal care, we have Clorox’s acquisition of the Burt’s Bees brand.
 
In 2013, Nike CEO, Mark Parker, told FastCompany that "business models are not meant to be static…In the world we live in today, you have to adapt and change. One of my fears is being this big, slow, constipated, bureaucratic company that's happy with its success. That will wind up being your death in the end."
 
Business360’s take
Success will depend on well Unilever allows its acquisitions to continue to be the indie brands they are, distinct from Unilever’s corporate culture and bureaucracy, at the same time as providing them with the resources and support they need to scale. A tricky balance.
 
Unilever next reports its financial results January 19, 2016 and we may get a better sense then. In the absence of hard data we would look for early warning signs, such as employee churn at the acquired brands and possible competitor response from other prestige players.   

Lancome Launches Social Media Campaign In US Market

Cosmetics brand Lancome launched a social media-enabled marketing campaign in the United States. Featuring videos depicting a Parisian woman and some of her daily events as she prepares for the holiday season, the campaign aims to give American consumers a chance to experience French culture. Lancome started the campaign on December 1, 2015, with videos posted daily on the brand’s Instagram and Facebook accounts.

Unilever UK Adds Hair-Repair Products To Dove Advanced Line

Unilever’s Dove Advanced haircare brand launched the Regenerate Nourishment line of products designed for damaged hair in the UK. Available by the start of January 2016, the lineup includes shampoo, conditioner, serum, and crème mask. According to brand manager Olivia Kirby, the products contain a combination of red algae and keratin.

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December 05, 2015, to December 12, 2015

Balmain Partners With H&M Anew To Launch Perfume

Perfume company Balmain continued its partnership with retailer H&M to launch the Balmain x H&M fragrance. Priced at $40, the unisex perfume will be available online and at H&M stores starting December 3, 2015. Marketed as an affordable high-end perfume, the scent was created by Balmain’s creative director Olivier Rousteing and H&M’s head of design Anne-Sofie Johansson.

Disney Launches Minions Eau De Toilette Fragrance

Walt Disney released Minions Eau de Toilette, a fragrance brand inspired by the movie studio’s Minions animated characters. Coming in a coffret for the 2015 holiday season, the product includes a metallic lunch box for school children. Designed to be unisex, the fragrance comes in a 100ml bottle and is dermatologically tested.

Ulta Beauty Sponsors Second-Screen Companion Of Bravo Media's TV Series

Ulta Beauty agreed to sponsor the mobile-optimized second-screen feature created by Bravo Media for the TV program “Girlfriends’ Guide to Divorce.” Viewers of the TV program may access the Lookbook site on their smartphones and purchase clothing and cosmetics worn by cast members. Marking the beauty retailer’s first attempt at multi-platform marketing, the sponsorship deal is part of Ulta Beauty’s efforts to create an omnichannel marketing strategy.

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November 28, 2015, to December 05, 2015

Unilever Opens Oleochemical Processing Facility In Indonesia

PT Unilever opened its first ever oleochemical processing plant at the Sei Mangkei special economic zone in Simalungun, North Sumatra. Worth 2 trillion Rupiah, the facility became the SEZ’s anchor investor and is expected to help boost economic growth in the region. It will be operated by the company’s PT Unilever Oleochemical Indonesia unit.

Japanese Chemical Company's New Fiber Paves Way For Wearable Skin Care

Teijin Frontier, a subsidiary of Teijin Ltd., developed a new textile fiber, which contains a skincare ingredient. Described as a “wearable cosmetics” clothing range, the polyester fibers contain malic acid that helps retain the skin’s low acidity to keep the skin healthy. Also, the fiber releases compounds that interact with the skin’s moisture to improve beauty.

Sales Of Men's And Women's Mists Outpace Other Fragrance Segments, Study Shows

For the year ending October 19, 2015, sales of men’s body spray perfumes and colognes grew more than 45 percent to $339.6 million, while women’s mists expanded more than 19 percent to $162.1 million, according to IRI. In contrast, sales of men’s fragrance dropped 2.45 percent and women’s fragrance declined 7.36 percent. Data revealed Unilever’s Axe brand dominated the top 10 brands in terms of sales, with Axe Apollo accounting for $38.3 million, an increase of 117.8 percent from the previous year. Axe’s Phoenix and Anarchy variants occupied the next two spots, with Procter & Gamble’s Old Spice variants taking the remaining spots.
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