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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.

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August 21, 2018, to August 28, 2018

L’Oréal And Facebook Team Up For AR Makeup Experience Using Modiface

L’Oréal, using its recently-acquired ModiFace solution, is collaborating with Facebook on creating an augmented reality makeup try-on experience through the social media platform’s camera products. Facebook says this brings AR into the mainstream. L’Oréal’s Chief Digital Officer, Lubomira Rochet, said that the two companies share a belief that AR is becoming an increasingly crucial way for consumers to discover brands and products.

Some CPG Companies Are Still Ignoring DTC Opportunities

An article on Forbes.com suggests that CPG companies are facing myriad challenges, and many are losing market share by neglecting to address some of the changes in industry, notably the direct-to-consumer channel. The DTC model is not a panacea, but brands should consider how they might benefit from a DTC approach. The author highlighted a number of reasons for exploring DTC opportunities. Online sales are expected to contribute half of retail growth through 2025. Other benefits include the ability to test and launch new products in a less constrained environment; opportunities to gather consumer data; and interacting with consumers directly, to build a direct relationship and loyalty. Products that proved successful online could be extended to offline channels, and the testing period can be shortened significantly. NatureBox, for example, introduces over 40-50 new products each year, selecting those to keep on the basis of customer feedback. Traditionally, brands have had little chance to get to know their consumers, but DTC offers them a way of talking to them directly without having to rely on syndicated or panel data. However, the decision to go DTC needs to be backed up by a strong proposition and a strategy to retain customers.

My Specialist From Schwarzkopf Provides Online Personalized Hair Care

Schwarzkopf’s new My Specialist brand claims to offer customized hair care online, based on microscopic testing, through an exclusive deal in China with T-Mall. The Henkel brand, together with the Shanghai Advanced Research Institute, has created a test that assesses the hair’s dryness and damage. This is supplemented by a questionnaire to provide an evaluation that can be treated with personalized products.

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June 26, 2018, to August 21, 2018

Beauty Marketers Enlist AI Apps For Personalized Campaigns

Beauty brands are adopting artificial intelligence technologies, including augmented reality, to create personalized marketing. With 70 percent of American women beauty buyers claiming being overwhelmed by product choices in a May 2018 survey by marketing firm Automat, beauty marketers see the need to provide consumers with product recommendations tailored to their needs. Beauty retailer Sephora’s Virtual Artist, for example, lets users upload photos in Messenger to virtually try on lipstick shades recommended by bots. However, marketers need to convince consumers to try and be comfortable with AI-enabled initiatives, with about a third of respondents saying they were unsure about using a virtual beauty advisor.

Facebook Lets Advertisers Use AR To Display Products On News Feed

Facebook has announced plans to allow advertisers to display their products on its Messenger and News Feed platforms using new technologies, including augmented reality. Facebook VP for product marketing for global marketing solutions, Ty Ahmad-Taylor, introduced AR-enabled ads that let consumers virtually try on sunglasses and makeup products. Beauty brand Michael Kors was the first advertiser to try AR ads, which include a “Tap to try it on” option.

Technology-Driven Personalized Marketing Lets Beauty Retailers Avoid Bankruptcy Fate Suffered By Other Retailers

Beauty retailers’ adoption of technology to create personalized marketing has helped them avoid the bankruptcies affecting the rest of the retail market. Data from the timeline released by CB Insights in March 2018 showed beauty retail is growing faster than the apparel and footwear segment of the retail market. Marketing technology investments made by beauty retailers include L’Oreal’s acquisition of ModiFace, a company that integrates augmented reality into apps operated by several beauty brands, including retailer Sephora. Department stores, including Target and Saks Fifth Avenue, are implementing AR-enabled apps and platforms. 

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May 29, 2018, to June 26, 2018

Times Square To Host COVERGIRL’s First-Ever Physical Store

Following the recent relaunch of the COVERGIRL brand, beauty company Coty is scheduled to open the brand's first ever physical outlet, a flagship store in New York City. Coty signed a 10-year leasing deal for the 10,000-square foot multi-level space at 30 Times Square. Scheduled to open its doors later this year, the store will be launched as part of COVERGIRL's "I Am What I Make Up" brand message, which replaces its "Easy, breezy, beautiful" tagline. To keep up with the tech-savvy consumers, the store will have experiential beauty playrooms equipped with interactive digital technologies and full-service makeup application. Coty also hinted of an "exclusive innovation" that will be available in the store.

Manscaped, Dr. Squatch Create Limited-Edition Grooming Kit

San Diego-based direct-to-consumer male vanity brands Manscaped and Dr. Squatch Soap have collaborated to create the Tame Your Beast Kit, a limited-edition affordable grooming set. The kit is available on both brands’ websites for $29.99 and includes Dr. Squatch's Pine Tar soap and soap stand, Manscaped's signature The Plow razor, and a non-powder deodorant. It also comes with a complimentary set of four disposable shaving mats.

Madison Reed Unveils DIY Balayage Highlighting Kit

Direct-to-consumer hair color brand Madison Reed launched its first do-it-yourself highlighting kit, Light Works, a two-step process which involves first lightening and then toning for a balayage look. The ammonia-free kit also includes one application of Bond Building Cleansing Treatment for strengthening the newly-treated hair. Light Works kits are available at Madison-Reed.com, and will aso appear at Madison Reed Color Bars and at Ulta, online and in stores.

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March 13, 2018, to May 29, 2018

Over 40 Firms Form UK Plastics Pact, Promising To Cut Single-Use Plastic Packaging

Over 40 firms, responsible for over 80% of plastic packaging on products sold in the United Kingdom, have joined the government and several trade organizations in establishing the UK Plastics Pact, led by sustainability group WRAP. The agreement lays out a set of pledges undertaken by firms to reduce plastic pollution over the next seven years. It promises to eliminate single-use plastic packaging, including 2025 goals to make 100% of packaging recyclable or compostable, to recycle or compost 70%, and to use 30% recycled material in plastic packaging. The pact signatories include Coca-Cola, Asda, Procter & Gamble, and Marks & Spencer. Environmental groups including Friends of the Earth and Ellen MacArthur Foundation expressed their support. 

LG’s Household & Health Care Arm Acquires Avon Japan

Ginza Stefany, a Japanese subsidiary of LG’s Household & Health Care (LG H&H) business, has agreed to acquire Avon’s Japanese operation, Avon Japan for 10.5 billion yen (approximately US$96 million). Direct-seller Avon Japan was established 50 years ago and is ranked 21st in the country in terms of retail sales. LG H&H, which has built its Japanese operation with two local acquisitions, Ginza Stefany Cosmetics in 2012 and Everlife in 2013, has been developing its business presence in Japan, which Euromonitor International estimates is the third largest beauty and personal care market in the world, with 2017 sales of US$ 36.1 billion.

Dollar Shave Club Gears Up For Further Expansion

Direct-to-Consumer e-commerce male grooming brand Dollar Shave Club (DSC) has announced a number of hires to the digital team aimed at continuing its growth momentum. Alan Wizemann becomes Chief Digital Officer. He previously worked at Target, Lululemon and WebMD. Danny Miles, the company’s first Chief Technology Officer, joined in 2017. Gloria Synn is the new Vice President of Member Strategy and David Kujda becomes Vice President of Product Design. The company says its headcount has expanded by over 25% during the past 12 months and it has relocated to larger office space in Marina del Rey, CA.

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January 23, 2018, to March 13, 2018

L'Oréal Debuts Wearable UV-Sensing Technology At Electronics Show

L'Oréal recently showcased two technology products from the La Roche-Posay brand designed to advance skin safety in the sun. Introduced at the Consumer Electronics Show in Las Vegas in February, UV Sense is a battery-free wearable -- on the thumbnail -- electronic UV sensor that provides crucial information about individual ultraviolet (UV) exposure levels. A limited-edition variant of My UV Patch was also on display. Both technologies, designed by Yves Béhar’s fuseproject design studio, will be available from the La Roche-Posay brand this year. The company launched My UV Patch, a stretchable skin sensor to monitor UV exposure, in 2016.

Survey: Americans Are Neglecting To Moisturize Their Skin In Winter

An online survey conducted by Harris Poll has found that 65 percent of participants believe the winds, low temperatures, hot showers, and warm houses of January contribute to dry skin. The poll, sponsored by skincare company CeraVe, found that 42 percent believe dry skin in the winter is one of the things they dislike most – more than going to the DMV, filing taxes, and shoveling snow – and wish there were a “quick fix” for the problem. Many of those polled (25 percent) said they are neglecting a skincare routine that could bring them the fix they're seeking. Fifteen percent admitted they never moisturize their skin at all. CeraVe announced the poll results in conjunction with its declaration that January 8 is Winter Skin Relief Day, a good time to start moisturizing with products like CeraVe Healing Ointment.

Ceramide Skincare Market Has A New Player

Personal care company ESN Group has entered the ceramide skincare market with its Ceramedx line of formulations, including a cleanser, moisturizing cream, and body lotion. The products feature a “plant-based ceramide technology” known as Riceramide-3 Complex. They are fragrance-free and made without parabens or petrolatum. Ceramide-based skincare products entered the market with the launch of Nestlé subsidiary Galderma’s Cetaphil product line, which now includes formulations for men. Another major competitor for California-based ESN Group is L’Oréal, which paid more than a billion dollars to acquire the Valeant skincare brands, which include CeraVe. In the Ceramedx press release, a dermatologist noted that the new product line offers “a more natural alternative for patients of mine with dry skin who need a therapeutic product.”

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November 14, 2017, to January 23, 2018

New Tests For Skin Allergy, Eye Irritation Offer Alternatives To Animal Testing

L’Oréal has developed two ways to test compounds for skin allergy and eye irritation that can be used instead of animal testing. The two new alternatives have been adopted by the Organisation for Economic Cooperation and Development (OECD). U-SENS predicts the sensitizing potential of formulations, while HCE EIT can detect the eye irritation potential of chemicals. The U-SENS method for detecting and predicting a skin allergy is based on tests performed in vitro on human cells that express a specific marker of immunity. HCE EIT is based on a human cornea epithelium model reconstructed in vitro that faithfully reproduces human histological and morphological properties. 

Avon Uses CDP's Smart Packaging Tech To Determine How Consumers Use New Anti-Aging Product

Beauty brand Avon worked with technology consulting firm Cambridge Design Partnership for the launch of the ANEW Reversalist Infinite Effects Night Treatment Cream skincare product. Using smart packaging technology, the companies hope to determine how participants in the product test are really using the skincare product. Avon said in order to make the most of the product's anti-aging effects, consumers should rotate its Phyto+ and SuperRetinol complexes every seven days.

Target Launches Good Chemistry Brand Of Fragrances

Target said it plans to launch Good Chemistry, the retailer's first exclusive fragrance brand. According to the company, the brand includes four collections it says are inspired by different personalities: Confident and Charming, Good and Grounded, Vibrant and Playful, and Cool and Collected. Featuring paraben-free scents, the vegan fragrances are made with essential oils and will be available at all Target branches from January 21, 2018.

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October 24, 2017, to November 14, 2017

Australian-Made Beauty, Personal Care Products Attract Chinese Consumers

Chinese consumer demand for Australian-made beauty and personal care products is strong, thanks to the country’s clean and green reputations, strict regulations, and quarantine control. Demand for Australian products will remain strong, according to Euromonitor, because they are more trusted and perceived as higher quality, with consumers willing to pay a premium. Australian companies can expect increasing sales, including via direct-to-consumer channels like Chinese e-commerce sites Tmall and JD.com. Australian companies and retailers have opened their own sites through these channels as well. 

Stagnant Indonesia Economy Could Drive Unilever To Tinker With Product Portfolio

A PT Unilever Indonesia executive said a stagnant business environment tends to increase the cost of living and push middle-class consumers toward smaller, cheaper products. More affluent consumers, however, continue to buy premium-priced goods. Consumer research in Indonesia shows that the composition of high-income, middle-income, and low-income consumers is now 10 percent-40 percent-50 percent, respectively. The middle-income segment could decline, however, if the stagnant environment persisted. Anticipating that, Unilever would “need to change our portfolio." 

L’Oréal Sees “Big Potential” In International Deployment Of CeraVe

L’Oréal’s nine-month financial performance was solid, with a 2.4 percent increase in sales to $22.6 billion. Changes related to company consolidation led to a net 2.2 percent drop in sales. These included the acquisition of ECosmetics (September 2016) and CeraVe (March 207), and the sale of the Body Shop. Like-for-like sales were up 4.5 percent, and currencies had a -3.5 percent impact. Active Cosmetics sales grew at better than five percent. CEO Jean-Paul Agon said the Active Cosmetics business would prosper because of strong demand for skincare products recommended by dermatologists. He also said the company next year would begin international deployment of CeraVe, “which I think has a very big potential." Company execs said they were confident sales and profit of the company overall would again outperform the cosmetics market in 2017.

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October 10, 2017, to October 24, 2017

Reckitt Benckiser Plans To Break Up Business Into Two Divisions

Reckitt Benckiser announced plans to restructure its business into two distinct operations, a health division and another covering hygiene and home products. RB's decision to reorganize came following its acquisition of US-based baby formula manufacturer Mead Johnson in June 2017. Also, the company, which has been seeing a tough year, reported its worst quarter ever in July 2017.

Upcoming GDPR Legislation Set To Have Global Impact

New General Data Protection Regulations (GDPR) are due to arrive in May 2018. GDPR will create a standardized data privacy law for EU members. It will also affect companies and individuals selling goods or services to EU citizens. The legislation will give individuals more rights to their data, including the “right to be forgotten” and asking consent for data processing. Potential fines for not adhering to the regulations can be up to $24m, or 4% of a company’s annual turnover. A recent PwC survey revealed that GDPR is a top data priority for more than 50 percent of US multinationals. 

Global Men’s Grooming Market At US$47 Billion With LATAM Growing Fastest

Euromonitor estimates the 2016 global men’s grooming market at US$ 47 billion, about 11% of the total global beauty and personal care market. Latin America accounts for 21% of the total (US$10 billion) with a 5-year CAGR of 12% and is the region with the highest projected growth. Brazil, Mexico and Argentina have 76% of the region’s market but cultural variations make the markets very different. In Brazil men’s fragrances have 60% share, driven by a strong gifting culture, while in Mexico men’s skin care is the is the main category with just 5% of total sales.

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October 03, 2017, to October 10, 2017

Lancome Names Actress Neelofa First Malaysian Brand Ambassador

Cosmetics brand Lancome has named Malaysian actress, TV host, and entrepreneur Neelofa, also known as Noor Neelofa Mohd, as official ambassador. This makes Neelofa the brand's first Malaysian ambassador, as well as the its first hijab-wearing representative.

Bulldog Skincare For Men Launches New TV Ad Campaign

Bulldog Skincare for Men has launched a new advertising campaign featuring a telepathic dog. Created by Adam&Eve/DDB, the TV advertisement, “Bank Robbery,” stars a telepathic dog that “truly understands men.”

Majority Of "Hypoallergenic" And "Fragrance-Free" Moisturizers Not What Their Manufacturers Claim, Study Shows

Among moisturizers advertised by their manufacturers as hypoallergenic and fragrance-free, a larger number actually contain skin irritants and scents, according to researchers from Northwestern University in Chicago. Results of the study, which covered moisturizers that were top-selling from Amazon, Walmart, and Target, revealed these products are putting consumers with sensitive skin at risk of rashes. Moisturizers are considered cosmetics by the US Food and Drug Administration and, hence, are barely regulated before they are sold on the market.

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September 19, 2017, to October 03, 2017

Unilever Joins Better Than Cash Alliance's Push For Digital Finance

Unilever announced a collaboration with the UN-based group Better Than Cash Alliance, which promotes digital payment as a means of supporting women and smallholder farmers. Part of Unilever's Sustainable Living Plan, the consumer goods company's deal with the organization signals its commitment to move away from cash as a payment platform for its value chain. According to Better Than Cash Alliance, digital modes of repaying loans have enabled farmers to reduce payment losses and collections costs, as well as “improved transparency and efficiency.”

Unilever Indonesia Launches Body Moisturizer For Hijab-Wearing Women

Unilever launched the Pureline Hijab Fresh, a body moisturizer designed for Muslim women who wear hijabs in Indonesia. According to Unilever Indonesia VP for personal care, Ira Noviarti, there are at least 20 million women who wear hijabs in the country. Muslim women who wear hijabs account for 68 percent of total sales of fast-moving consumer goods in the country, Noviarti added.

China's FMCG Market Grows 4.6 Percent In August 2017 Quarter

In China, sales of fast-moving consumer goods grew 4.6 percent during the 12-week period ending August 11, 2017, compared with the same period of the previous year, according to Kantar Worldpanel. Data from the market research firm revealed lower-tier cities saw faster growth at 4.9 percent compared with 4.1 percent for leading cities and provincial capitals.
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