U.S. sales of health and personal care (HPC) products slowed in the first quarter by one percent year-over-year, mainly in brick-and-mortar stores. Online sales were up in the quarter, led by Amazon.com. As of the first quarter of 2017, the U.S. HPC market was valued at $80.6 billion, while Amazon sales represented $1.3 billion. Year over year growth of HPC sales on Amazon in the first quarter was 30 percent. According to One Click Retail, consumers are abandoning in-store shopping for HPC products in favor of online shopping. Within Amazon, the rate of growth for HPC is highest in Prime Pantry, with top categories multiplying revenue by as much as five times.
"Amazon Pantry Drives Health & Personal Care Sales: The Amazon Effect", One Click Retail, May 31, 2017
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Chinese conglomerate Fosun International should discontinue its efforts to secure the rights to buy The Body Shop, the beauty retailer owned by L'Oreal SA. There are several reasons why Fosun would be better off looking for another company to acquire. These include the lack of positive forecasts for the retail sector, including the beauty retail segment. Also, The Body Shop's emphasis on all-natural beauty products no longer differentiates it from rival retailers, as reflected by the 4.8 percent drop in revenue in 2016. With a price tag of $900 million, which is expected to significantly jump once a likely bidding war starts, The Body Shop is quite expensive.
"Fosun's Fruitless Beauty Search", Bloomberg, June 06, 2017
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Unilever Indonesia will spend half a billion dollars over the next five years to improve its production capacity in nine factories in the country. The money will be spent to improve production capacity for products in its two main businesses: home and personal care, and food and refreshment. The company posted first quarter sales of $812 million, representing a year-on-year growth 8.9 percent.
"Unilever Indonesia to Invest $500 Million in Production Expansion", Indonesia Investments, June 07, 2017
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