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Period: April 16, 2016 to April 23, 2016
Comment & Opinion or Companies, Organizations or Consumers or Controversies & Disputes or Deals, M&A, JVs, Licensing or Earnings Release or Finance, Economics, Tax or Innovation & New Ideas or Legal, Legislation, Regulation, Policy or Market News or Marketing & Advertising or Other or People & Personalities or Press Release or Products & Brands or Research, Studies, Advice or Supply Chain or Trends

Johnson & Johnson Readies Relaunch Of Baby Care Business

Johnson & Johnson plans to relaunch its baby care business, because millennial mothers are abandoning the company’s talcum powders and shampoos and are turning to more expensive organic products. In the first quarter of 2016, sales of the company’s baby care products in the United States fell 14 percent year on year to $95 million, a record low for Johnson & Johnson in a decade. Chief financial officer Dominic Caruso said the decline in sales was due to the emergence of new competitors, especially those that manufacture high-end, natural products. Caruso, however, said the company has “robust plans” for relaunching the business.

"J&J to relaunch baby brand as millennials go organic", Financial Times , April 19, 2016

Hair Experts Expose Lies Told By Shampoo Marketers

According to a panel of hair experts, there are at least eight marketing claims that shampoo makers cannot back up with scientific evidence. Shampoos claimed by their manufacturers as capable of making the hair healthier are unlikely to be able to do so, because the hair is dead. Reversing hair damage by using a shampoo is not possible, while shampoos claimed capable of thickening the hair does so by putting something on the surface. Also, the panel of experts discovered that some shampoo packaging comes with fine print indicating the claim depended on using more than one product from the same brand.

"Eight shampoo claims that don't quite stack up ", Which? , April 20, 2016

Companies, Organizations  

Burberry Launches Mr. Burberry Men's Fragrance

Burberry launched the Mr. Burberry men’s fragrance, which is inspired by the brand’s heritage trench. To support the product launch, the company released a capsule collection and a grooming line it will promote on social media platform Snapchat. Described as herbal and woody, the fragrance was designed by chief creative and CEO Christopher Bailey with perfumer Francis Kurkdjian.

"Burberry Debuts Mr. Burberry Men’s Fragrance, Grooming", Women’s Wear Daily, April 04, 2016

Symrise Launches New Campaign Highlighting Company Heritage And Innovation

Symrise Fragrances launched a new branding campaign, with the tagline “We exist to deliver better living through scent.” As part of the campaign, the company highlights its rich legacy in the perfume business and focuses on the cross-disciplinary collaboration that helps the company innovate and develop new scents. Symrise has put in place a permanent collaboration and mentorship program, under which the company’s most experienced and successful master perfumers train the younger perfumers.

"Storyline Launch: Better Living through Scent Symrise Fragrance Division Shapes New Era in Fragrances", Symrise, April 08, 2016

Gillette Launches Razor Subscription Service In UK

Procter & Gamble’s Gillette brand launched the Gillette Club razor subscription service in the UK. To support the launch of the subscription service, the brand also unveiled a campaign that promotes the service as “an offer so good, it should probably be illegal.” By launching the service, P&G says it can compete better with new rivals, including Bearded Colonel, King of Shaves, Cornerstone, and Close Shave Society. In 2015, Gillette filed a patent lawsuit against Dollar Shave Club, which has grabbed 8 percent of the $3 billion US market for razors and blades since 2013.

"‘Loyalty Pays’: Gillette Expands Razor Subscription Service to the UK", BrandChannel, April 11, 2016

Unilever Says 1Q 2016 Report Reflects Volatile Market

Unilever said sales in Europe declined 0.6 percent in the first quarter of 2016, compared with the same quarter of the previous year. According to the company, the slower growth was due to the impact of Eurozone deflation and aggressive price discounting. Underlying sales increased 4.7 percent during the quarter, boosted by the 8.3 percent increase in sales in emerging markets. Unilever CEO Paul Polman said the market remained volatile, with sales growth “weakening across emerging markets and negative in Europe.”

"Unilever warns of fragile consumer market", The Guardian, April 14, 2016

Shiseido Opens NYC Makeup Center Of Excellence

Shiseido Co., Ltd.’s US-based subsidiary, Shiseido Americas Corporation, opened a Makeup Center of Excellence in New York City. According to the company, the facility will be used to promote innovation in color cosmetics. Company officials said the center of excellence will develop new color brands and play a leading role in “transformational projects” within the makeup segment.

"Shiseido Americas Corporation Opens Makeup Center Of Excellence In New York City", Area Development News Desk, April 15, 2016

Shiseido Names Jill Scalamandre As President Of NYC Global Makeup Center Of Excellence

Shiseido Americas Corporation announced the appointment of Jill Scalamandre as president of the company’s newly opened Global Makeup Center of Excellence in New York City. Part of Scalamandre’s responsibilities will be managing and supporting projects across the company to improve and expand its prestige color cosmetics business and capabilities. Under her leadership, the facility will cooperate with Shiseido’s lineup of makeup brands worldwide to test new product concepts, develop expertise, and make use of market and consumer insights to improve customer relations.

"Shiseido Announces Appointment of Jill Scalamandre as President of Global Makeup Center of Excellence", Business Wire, April 15, 2016

Dubai's High-End Nail Salon Chain Joins International Brands Coming To Post-Sanctions Iran

Dubai-based businesswoman Negin Fattahi-Dasmal is expanding her luxurious nail salon chain, N.Bar, in Iran in 2016. Following the Western powers’ lifting of international sanctions against the country, the entrepreneur thinks it is time for high-end international brands to enter the market. Many leading international beauty and personal care brands intend to do so, attracted by the country’s beauty and cosmetics market valued by the Iranian parliament’s research center at $4 billion a year.

"Nail polish and mascara: beauty brands eye up Iran", Reuters, April 17, 2016

New Avon Names J. Scott White As CEO

New Avon LLC named J. Scott White as chief executive officer effective April 25, 2016. White’s appointment comes following New Avon’s separation from Avon Products, Inc., and sale of majority ownership to Cerberus Capital Management, L.P. In partnership with New Avon and Cerberus teams, White will lead the reorganization of the company’s North American business.

"New Avon LLC Appoints Scott White CEO", PRNewswire , April 18, 2016

Reckitt Benckiser Offers Profit Sharing To India E-Commerce Team

Reckitt Benckiser launched a profit-sharing program for its e-commerce team in India. Aimed at driving growth and providing employees a stake in the business, the program covers five employees from the sales, marketing, and digital operations of the ecommerce team. RB South Asia regional HR director Udayan Dutt said net revenue and gross margin would determine the employees’ payout.

"Reckitt Benckiser to have profit-sharing arrangement with its India Ecommerce staff", Economic Times, April 19, 2016

L'Oreal VP For CSR And Sustainability Describes Efforts To Reach 2020 Sustainability Goals

Seeking to reduce by 60 percent its overall environmental footprint by 2020, L’Oreal wants to incorporate sustainability into its innovation model in order to make each beauty category more sustainable, according to Jonathan Maher, vice president of CSR and Sustainability. Maher said part of his job involves coordinating the company’s Sharing Beauty with All sustainability campaign in the United States. To measure the company’s sustainability achievements, L’Oreal developed a customized eco-design tool that helps product development teams in determining ways to improve new product’s environmental profile.

"L’Oréal puts words into action on sustainability", Cosmetics Design , April 19, 2016

L'Oreal Paris Joins YouTube To Launch Online Beauty Academy For Rising Stars

L’Oreal Paris partnered with YouTube to launch BeautyTUBE, an online beauty academy and business incubator for new talents in France. BeautyTUBE’s first edition, which will start in June 2016, will feature 10 people selected through the online video-sharing website based on their personalities and points of view on beauty. According to the company, the participations will be filmed for six months while being trained and mentored by L’Oreal Paris and YouTube executives on topics, such as video production, YouTube channel management, and development of beauty expertise.

"L’Oréal Paris, YouTube to Launch BeautyTUBE in France", Women’s Wear Daily, April 19, 2016

Unilever Joins Hispanicize 2016 Campaign For Latino Newsmakers

Unilever joined the lineup of official sponsors of Hispanicize 2016, a campaign aimed at highlighting Latino trendsetters and newsmakers in the United States. Corporate sponsors of the event support the Tu Twist and #100PorCientoTu programs. Unilever’s personal care brands offered an intimate VIP experience with the campaign, in celebration of Latinos’ individuality and self-expression.

"Unilever U.S. Celebrates Latino Trendsetters and Newsmakers at Hispanicize 2016", MultiVu/ PR Newswire , April 20, 2016

Unilever Spends 24 Percent Of Ad Budget On Digital Media

Unilever spent 24 percent of its total advertising budget on digital media in the first quarter of 2016, compared with 20 percent in the same quarter in 2015. In digitally advanced markets, such as the United States and China, that number goes up to almost 50 percent. Unilever, the second-biggest spender on advertising in the world, after rival Procter & Gamble, spent $8.3 billion on advertising in 2014, according to AdAge.

"Unilever now spends quarter of ad budget on digital", Net Imperative, April 20, 2016

Unilever Nigeria Posts Strong Revenue Growth In 1Q 2016

Unilever Nigeria reported revenue grew 12 percent to N16.78 billion in the first quarter of 2016, compared with N14.9 billion in the same quarter of 2015. Profit after tax jumped 76 percent to N1.05 billion from N590 million, while profit before tax rose 64 percent to N1.42 billion from N860 million. Gross profit grew to N6.03 billion from N5.06 billion in 2015, the company said. Gross margin improved by 33.95 percent in 2015 to 33.95 percent in 2016, while EBIT margin rose from 10.88 percent in 2015 to 11.37 percent.

"Nigeria: Unilever Finally Turns the Corner", AllAfrica, April 20, 2016

Kimberly-Clark: Why sustainability matters

Future Ready Singapore, April 19, 2016

Earnings Release  

L'Oreal Says Sales Grew Slower In 1Q 2016; Blames Strong Euro

L’Oreal SA reported sales grew 1.7 percent to €6.55 billion in the first quarter of 2016, compared with the same period in the previous year. Sales growth slowed from 8.5 percent in the fourth quarter of 2015, with the strong euro offsetting increased revenues in emerging markets. Like-for-like sales grew 4.2 percent, with the next impact of changes in consolidation at 0.4 percent. According to the company, currency fluctuations had a negative impact of 2.8 percent, with sales growth at constant currency rates at 4.6 percent.

"L’Oreal First quarter 2016 sales: A SOLID FIRST QUARTER THAT FURTHER STRENGTHENS OUR CONFIDENCE", L’Oréal, April 18, 2016

Johnson & Johnson Reports Slight Sales Rise In First Quarter 2016

Johnson & Johnson reported sales increased 0.6 percent to $17.5 billion in the first quarter of 2016, compared with the same quarter in 2015. Operational sales rose 3.9 percent, with negative impact of currency at 3.3 percent. According to the company, domestic sales increased 7.2 percent, while international sales dropped 6.0 percent during the quarter. Net earnings for the quarter were $4.3 billion, with diluted earnings per share at $1.54, the company said.

"Johnson & Johnson Reports 2016 First-Quarter Results", Johnson & Johnson, April 19, 2016

Market News  

Unilever Says 1Q 2016 Revenue Performance Hurt By Currency Fluctuations, Deflation

Unilever reported underlying sales grew 4.7 percent in the first quarter of 2016, compared with the same quarter in the previous year. Sales growth slowed from 4.9 percent recorded in the fourth quarter of 2015, with the company blaming weaker volumes and deflation for the decline. According to the company, currency fluctuations reduced quarterly revenue by 7 percent.

"Unilever Finds Growth More Elusive as Sales Meet Estimates", Bloomberg, April 14, 2016

Italy's Beauty Market Sees Stronger Revenue Growth In 2015

Revenues for Italy’s fragrance and cosmetics market grew 6.6 percent to €10.03 billion, or $11.13 billion, in 2015, compared with the previous year, according to Cosmetica Italia. Data from the cosmetics industry trade association revealed beauty revenues grew 2.2 percent to €6.22 billion in 2015. Growth was driven by the improvement in the country’s economy, an increase in number of visitors to the country, and growth in disposable income, due to lower oil prices. Exports grew 14.3 percent to €3.81 billion, or $4.23 billion, as local beauty companies expanded their focus on overseas market to boost growth.

"Italy Bounces Back in Beauty", Women’s Wear Daily, April 20, 2016

Hair conditioner category shows modest growth

Drug Store News, April 14, 2016

Marketing & Advertising  

Landing International Launches B2B Online Marketplace For Hard-To-Find Beauty Brands

Los Angeles-based Landing International launched Marketplace, a business-to-business online platform for the beauty care industry. Designed to enable buyers to identify and connect with brands from anywhere in the world, Marketplace will focus on hard-to-source beauty products. Company founder and CEO Sarah Chung said the platform will focus on South Korean products at the start. By providing a brand a profile with products, marketing materials, sales channels, and other related information, the platform will make it easier for buyers to find alternative and niche brands.

"New B2B US digital platform debuts with Korean and Asian products", CosmeticsDesign-Asia.com, April 08, 2016

Benefit Cosmetics, Other Brands Start Using Facebook Live To Connect With Consumers

Benefit Cosmetics has been using Facebook Live video-streaming service to run “Tipsy Tricks with Benefit!,” a live stream where a guest and a host discuss a beauty topic and give out advice to viewers. Brands have been slow to adopt Facebook Live as a tool for marketing and keeping in touch with customers. Other brands using the service include Matches Fashion, iHeart Radio, and Dunkin’ Donuts.

"'It's about scale': How 5 brands are using Facebook Live", Digiday, April 15, 2016

Unilever Expands Efforts To Promote Packaging Recycling

Unilever is expanding its #RethinkRecycling campaign to promote recycling of empty bottles and other packaging of bathroom products in the United States. According to the company, an estimated $11 billion of used packaging materials go to landfills instead of recycling centers each year. Unilever became a founding investor in the Closed Loop Fund to help promote recycling in the country.

"Closing The Loop: Boosting Recycling In The Bathroom And Beyond", Unilever, April 19, 2016

Shiseido Launches Consolidated Duty Free And Travel Retail Business In Singapore

Japanese beauty brand Shiseido plans to launch its Shiseido Travel Retail duty-free and travel-retail business in Singapore by May 1, 2016. Expected to generate ¥18.5 billion, or $169.6 million, in revenue in fiscal year 2016, the business combines skincare, make-up, and fragrances operations and will have 210 employees worldwide. It will also have a network of almost 1,000 beauty consultants. In 2015, STR reported sales of ¥17.2 billion, an increase of 7.6 percent from the previous year.

"New Shiseido TR unit targets $170m in 2016", TRBUSINESS , April 20, 2016

Procter & Gamble Becomes Corporate Sponsor Of Bayern Munich FC

Procter & Gamble agreed to become a corporate sponsor of Bayern Munich football club. Running for three years, the contract is focused on P&G’s brands Gillette, Braun, Head & Shoulders, and Oral-B. As part of the sponsorship deal, the partners plan to launch TV and digital marketing campaigns, as well as in-store marketing and special product editions.

"Bayern sign new sponsorship with Procter & Gamble", Bayern Central, April 20, 2016

Kose Corporation Pushes Global Expansion With R&D And Innovation

Japanese cosmetics company Kose Corporation reported net sales grew 20 percent and operating profit rose 90 percent year on year for the third quarter in 2015. According to company president and CEO Kazutoshi Kobayashi, the company’s focus on research and development has enabled it to expand its global operations and gain recognition in the market. Expected to help the company grow as a global business, its Vision 2020 long-term strategic plan is aimed at expanding sales to 250 billion yen by 2020. Kobayashi said his company will continue its emphasis on R&D and will keep on diversifying and improving products in order to achieve its Vision 2020 targets.

"R&D and new products add an edge to Japanese cosmetics leader’s global push", The Worldfolio, April 20, 2016

100% Kosher Head & Shoulders

Cream Global, April 15, 2016

Press Release  

Old Spice Agrees To Sponsor Tough Mudder Endurance Series

Old Spice agreed to sponsor the Tough Mudder as the official Men’s Body Wash and Anti-Perspirant//Deodorant Partner of the series of endurance events. To help promote the sponsorship deal, Old Spice endorser Bob Giovanni, also known as the actor Steven Ogg, is featured in a TV commercial with a Hardest Working Training Tips. Also, the partnership deal highlights the Hardest Working Collection lineup of men’s grooming products.

"Old Spice Partners with Tough Mudder to Provide the Ultimate Proving Ground for Its New Hardest Working Collection of Anti-Perspirants and Body Washes", Procter & Gamble, April 15, 2016

L'Oreal Reveals A Number Of Senior Executive Changes

L’Oreal announced Marc Menesguen’s plan to retire as president of the company’s Consumer Products Division in 2017. Menesguen joined the company in 1985 as product manager, rising through the ranks and contributing to L’Oreal’s development for more than 30 years. Current EVP for Asia Pacific Zone, Alexis Perakis-Valat will succeed Menesguen, with EVP Western Europe Zone Jochen Zaumseil taking over Perakis-Valat’s position. In turn, Zaumseil will be succeeded by Vianney Derville, general manager of the company’s Consumer Products Division North America.

"Appointments to L’Oreal’s Executive Committee", L’Oréal, April 18, 2016

Reckitt Benckiser Reports Strong Sales Growth In 1Q 2016; Fears Slowdown In Emerging Markets

Reckitt Benckiser reported like-for-like net sales grew 5 percent in the first quarter of 2016, compared with the same quarter in the previous year. According to the company, its health unit boosted total sales by 10 percent. During the quarter, sales in developing markets grew 10 percent, driven by growth in India and China. RB cited tougher business conditions in emerging markets, particularly in Brazil.

"Reckitt Benckiser Q1 Results 2016: A good start to the year", Reckitt Benckiser, April 18, 2016

L'Oreal Says It Has Reduced Environmental Footprint Of 74 Percent Of New Products In 2015

L’Oreal said 74 percent of its new or renovated products have an improved environmental or social profile in 2015, against the company’s 100 percent target. According to the company, the calculation corresponds to 85 percent of volumes of products manufactured and includes all product categories, but excludes range extensions. Also, the company said 22 percent of new or renovated products have become more environment-friendly, due to a new formula that lowers their impact on the environment. In addition, 14 percent have an improved social profile because they include raw materials from Solidarity Sourcing programs, while 43 percent have an improved environmental profile, due to a reduction in the environmental footprint of packaging.

"L’Oréal 2015 Progress report", L’Oréal, April 20, 2016

Corporate Responsibility’s The 100 Best Corporate Citizens 2016

Corporate Responsibility Magazine, April 21, 2016


Unilever, April 21, 2016

Products & Brands  

L'Oreal Mexico Launches Campaign Focusing On Colorblind Men Who See Red For The First Time

L’Oreal launched in Mexico a marketing campaign, which features a digital video depicting colorblind men seeing their partners wearing red lipstick for the first time. Created by advertising agency McCann Mexico, the video campaign is based on the insight that one in 12 men cannot see the color red due to color blindness. Using a pair of special eyeglasses with Enchroma technology, the men were able to see red for the first time.

"L’Oréal lets colorblind men see red for the first time", Digiday, April 19, 2016

Reverse-Wash Products Turn Haircare On Its Head

Personal care manufacturers are developing products for consumers looking for haircare products designed for reverse-wash routine. Driven by its growing popularity among bloggers and social media users, reverse-wash routine calls for using the conditioner first to soften the hair, then the hair is washed with shampoo to remove weight, leaving the hair “smooth, polished, and voluminous.” Also, according to experts in haircare science, reverse-wash is backed by scientific evidence. Haircare brand TRESemme partnered with model and TV host Chrissy Teigen to launch Beauty-Full Volume, a haircare system designed for reverse-wash.

"Reverse-wash products emerge as the trend enters the mainstream", Mintel, April 20, 2016

Dove Hair Wants Women To Feel Good About Their Hair

Unilever’s haircare brand Dove Hair said only 11 percent of women love everything about their hair enough not to change anything about it. Results of the study commissioned by the company revealed 86 percent of women in the United States believe media and society put a lot of pressure on women to have hair that looks a certain way. According to 81 percent of women, the hair featured in advertisements and in the media makes women feel about the hair they have. To address this issue, Dove Hair announced the #LoveYourHair campaign and video, which seeks to encourage women to feel good and proud of their hair.

"Dove Hair Calls for an Expanded View of ‘Beautiful Hair’", MultiVu/ PR Newswire, April 21, 2016

Perfumes to match your fave emojis

The Perfume Shop, April 01, 2016

Future 100: MENA Trends and Change to Watch in 2016

JWT The Innovation Group, April 20, 2016

Developed by Yuri Ingultsov Software Lab.