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Period: September 4, 2018 to September 18, 2018
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

Direct-To-User Model Promises To Do More Than Typical DTC Does

Consumer packaged goods companies, whether users of the direct-to-consumer model or not, should focus on evolving from DTC to direct to user. By adopting a DTU approach, brands can expand their horizons when it comes to customer engagement. DTU provides brands the opportunity to avoid retail costs and the need to compete with established brands. Instead of focusing on what users think of a brand, companies should concentrate on what users experience during engagements. Also, a DTU model also offers brands an opportunity to have an uninterrupted exchange with users that can retain and protect user engagement that can help long-term growth. 

"How to Create Deeper Connections by Going “Direct to User”", Packaging Europe, August 06, 2018

Panacea Looks At Transparency And Minimalism As Corporate Guideposts

Panacea founder Terry Lee discussed how he established a direct-to-consumer beauty brand that depends on customer insights to create gender-neutral, closely managed collection of three skincare products. According to Lee, the outstanding feature of his company is its ability to create and sell products in ways that both women and men find attractive. Also, the company's approach to gender neutrality is highlighted by its product development process. Lee said transparency and minimalism are “very innate” in his company's character and “naturally showed up in the brand itself.” 

"Interview: How A DTC Skincare Brand Builds Consumer Routines Using Customer Insight", PSFK, August 09, 2018

Serena Williams Invests In Pro-Women Equality Shaving Brand Billie

Tennis Grand Slam champion Serena Williams has agreed to invest in female-first shaving brand Billie. By investing in the direct-to-consumer company, Williams continues supporting the campaign for equality for women. Billie's pricing aims to do away with the “pink tax”, or higher prices for products designed for women. Williams joins other celebrities, including Drew Barrymore and Lena Dunham, who have expressed support for the brand on social media. 

"Serena Williams joins the fight against sexist ‘pink tax’", Page Six, August 09, 2018

Odore's Dispenser Machines Give Consumers Perfume Samples For Personal Data

Odore provides fragrance samples dispenser machines that allow consumers to exchange personal data for free samples of perfume products. Designed to encourage consumer participation, the process requires users to answer questions that would take no more than 20 seconds to accomplish, company founder Armaan Mehta said. He said the device also meets millennial consumers' demand for interactive retail. 

"Odore: a new, intelligent way to collect data and engage fragrance consumers?", Cosmetics Design Europe, August 09, 2018

L'Oreal, ModiFace Partner With Facebook To Let Consumers Try Makeup Products Through AR-Enabled Experiences

L'Oreal and its recently purchased augmented reality and artificial intelligence company ModiFace have partnered with Facebook to create AR experiences for consumption by users of the social networking platform's camera products. Featuring a direct and seamless link between Facebook and ModiFace, the partners will deliver AR-based experiences, enabling consumers to virtually try on makeup products from leading beauty brands, including Maybelline, L'Oreal Paris, and NYX Professional Makeup. 

"L'Oreal's ModiFace launches long-term Augmented Reality collaboration with Facebook", L’Oreal, August 09, 2018

Three Reasons Compel CPG Companies To Adopt The Direct-To-Consumer Model

Consumer packaged goods companies should consider adopting the direct-to-consumer model for three reasons: new product launches, consumer data, and consumer loyalty. To improve the success rates of new product launches, 75 percent of which fail, according to the Harvard Business Review, CPG companies must test concepts with real consumers using their direct channels before introducing those products to the retail channel. By using the DTC model, CPG companies gain access to a huge collection of information about the consumer. Also, by using a DTC channel, CPG companies can have a source of proprietary data which gives them competitive advantage. Finally, a direct access to the consumer provides CPG companies with means to create more convincing ways to buy from them and gather more personal information from their customers. 

"3 Reasons Every CMO Should Consider The Direct-To-Consumer Model", Forbes.com, August 10, 2018

Schwarzkopf Launches My Specialist Brand Of Highly Personalized Haircare Products

Schwarzkopf has launched its My Specialist brand of personalized haircare products in China. Available online through an exclusive partnership with China-based online shopping website T-Mall, the brand offers consumers what the company describes as a “whole new level of personalization.” Developed by Henkel's research and development professionals, marketing teams, and the Shanghai Advanced Research Institute, the brand comes with an online dryness and damage assessment that measures the health status of the consumer's hair. Also, consumers are prompted to answer a series of questions to better assess their haircare needs. According to the company, the system checks the hair's cuticle array, cuticle lift-up, cortex exposure, and other aspects of the hair condition.

"Schwarzkopf hair care ‘e-brand’ launch: next level personalisation", Cosmetics Design Europe, August 10, 2018

Jouer Cosmetics Plans To Open Pop-Up Store In Los Angeles

Jouer Cosmetics plans to launch its Jouer Rose Gold Collection Pop-Up Shop in Los Angeles, California, on August 22, 2018. Located on Melrose Place, the shop's opening will feature a first-hand Rose Gold Collection experience for influential shoppers. Also, the first 25 followers to shop the store will receive a free gift. Shoppers will also be able to personalize select products with custom-painted monogram services.

"Jouer Cosmetics Launches First Ever Pop-Up Location In Los Angeles", PRNewswire , August 22, 2018

Pinterest-Enabled Campaign Boosts Brand Awareness, Online Traffic, Sales For Manscaped

After launching a marketing campaign on social media platform Pinterest, men's grooming company Manscaped saw significant increases in brand awareness, online traffic, and sales. Data from a case study shared with Mobile Marketer revealed the campaign gave the company 13 percent increase in online traffic, 9 percent increase in customer acquisition, and 11 percent gain in online sales. Pinterest helped Manscaped upload a list of customers who previously bought the company's products. Pinterest Analytics allowed the company to fine-tune the campaign for optimal performance.

"Men's grooming company Manscaped boosts web traffic 13% with Pinterest campaign", Mobile Marketer, August 22, 2018

Beauty Bakerie Grows Its Business Through Social Media and Direct-To-Consumer Business Model

Beauty Bakerie, established by company founder Cashmere Nicole, became profitable in a few years depending on social media and a direct-to-consumer business model. Nicole, who had no beauty industry connections at all, developed a collection of “functional makeup” for busy women. At present, the company is growing fast, selling its beauty products in more than 60 countries online and some offline stores around the world. With 25 employees and three facilities in San Diego, California, the company has received various honors and recognition from leading magazines, such as Cosmopolitan, Teen Vogue, and Essence.

"Cashmere Nicole Has The Right Recipe", Black Girl Cypher , August 24, 2018

Kelly Preston Plans To Launch DTC Organic Beauty Brand Breathe

Actress Kelly Preston plans to launch Breathe, a direct-to-consumer brand of organic beauty products in December 2018 or January 2019. At present, the company offers four anti-aging skincare products: a day serum, day crème, night serum, and night crème. Fully funded by Preston herself, Breathe is in negotiation with investors and plans to expand beyond skin care. Preston said she plans to transform Breathe into a totally organic lifestyle brand offering makeup, haircare, and products for men, babies, and the home.

"Kelly Preston readies natural beauty brand Breathe", Los Angeles Times, August 24, 2018

Big Companies Grab Direct-To-Consumer Startups That Fail To Secure Huge Investments

During the first eight months of 2018, Investors have placed a $1.2 billion bet on business startups that use the direct-to-consumer model to sell products. However, there has been several large acquisitions of DTC startups that have received little or nothing at all before being acquired. For example, natural deodorant brand Native failed to secure venture capital but instead received $550,000 from small investors, according to company founder Moiz Ali. Two years after creating his company, Ali sold Native to Procter & Gamble for $100 million in cash, while remaining CEO. Other deals involving acquisition of DTC startups include watchmaker Movado's plan to purchase DTC watch startup MVMT for as much as $200 million, with $100 million in cash, and mattress company Serta Simmons' plan to merge with Tuft & Needle, a startup that makes and sells foam mattresses in a box and sells them directly to consumers.

"The rise of giant consumer startups that said no to investor money", Recode, August 29, 2018

Glossier Plans To Create Social-Enabled Online Selling Platform For Own Beauty Products

After receiving an extra $52 million in venture capital funding, beauty brand Glossier plans to create a “social-selling website” for beauty products. According to company founder and CEO Emily Weiss, her company will build a website that combines social media and online shopping, which will allow consumers to get insights and buying tips from other users about beauty products. Weiss said the website will not be a social network that sells advertisements for revenue, but will instead be used by the company to sell its own beauty products. According to Weiss, her company's social commerce strategy aims to address the fact that despite advances in ecommerce and online retail, “the customer experience is pretty broken.”

"Inside Glossier’s Plans to Shake Up Your Makeup Routine", Bloomberg, August 30, 2018

Lynx Changes Directions To Focus More On Male Mental Health Without Losing Sense Of Humor

After its previous marketing strategies had linked its brand to “lad culture, sex, and misogyny”, Lynx embraced campaigns that focus on ideals of masculinity that are harmful to male mental health. In January 2016, the male-grooming brand launched its “Find your magic” campaign, which encouraged young men to “embrace their differences.” Lynx and other brands face the risk of unfavorable reaction from consumers, who might see their “brand purpose” efforts as a means to enhance reputation and sell products. According to Lynx global vice president Rik Strubel, part of the brand's more socially conscious efforts is remaining true to its humorous heritage. 

"Lynx refocuses on ‘humour with heart’ to challenge male stereotypes", Marketing Week, August 31, 2018

Glossier CEO Weiss Sees No Chance For Her Company Working With Amazon

Emily Weiss, founder and CEO of ecommerce beauty startup Glossier,said her company will never sell on online retailer Amazon's platform. Established in 2014, Glossier has received $87 million in venture funding, enabling it to create a beauty brand popular among women. Weiss said other ecommerce companies can grow outside Amazon's shadow and that the user experience offered by the online retail giant “may not be the best fit for beauty and fashion products”.

"Glossier CEO Emily Weiss on why the company won’t sell on Amazon", TechCrunch, September 07, 2018

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