Procter & Gamble’s chief brand officer Marc Pritchard called on big digital players to prove that marketing investment results in sales and not just excess frequency. He revealed that P&G cut $200m from its digital ad budget last year after new data showed that average view time for an ad on a mobile newsfeed was just 1.7 seconds. The multinational consumer goods giant also reduced spend on “long tail” marketing after re-evaluating its approach to programmatic. Citing the opportunity for full integration of media, shopping and data, Pritchard noted that P&G maintained its overall media investment with e-commerce players such as Amazon as well as Alibaba, Tencent and JD in China, where the company’s focus is increasing. P&G also plans to change the way it works with agency partners in order to align with the company’s new direction of more brand entrepreneurship and less project management.
"P&G’s Marc Pritchard on the next frontier of digital: We want to know our investment results in a sale", Marketing Week, March 27, 2018
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The Patents Office has ruled that the L’Oréal patent and one of its community registered designs were infringed by RN Ventures’ “Magnitone” electronic brush for deep cleansing of face pores. Another L’Oreal company, the exclusive licensee of L’Oreal’s rights in the UK, was the second claimant in the case. The case used the shorter trials procedure pilot scheme introduced to the High Court in October 2015 and will be available until September 2018. The case is of interest because it used the shorter trials procedure in considering one patent and two registered designs involving significant cross-examination with regard to expert evidence. The shorter trials procedure is intended for commercial and business cases not requiring extensive disclosure, witness or expert evidence. It aims to reduce costs and shorten trials to three to four days.
"L’Oréal wins skincare device case using shorter trials procedure pilot scheme.", Lexology United Kingdom , March 27, 2018
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Henkel seeks to leverage big data to reach ambitious efficiency goals. By 2030 it aims to triple its efficiency and reduce its carbon footprint globally by 75 percent. Critical to its efforts is an Environmental Management System (EMS) that it implemented in 2014 in collaboration with Schneider Electric. The EMS captures over 3,000 data points across a wide range of the company’s global production network, including metrics on consumption of electricity, fossil fuels, compressed air and water. Through capturing data centrally the company is able to identify best practice. The company estimates its Laundry & Home Care unit could reduce energy use by 24 percent.
"Reducing the environmental footprint through Big Data", Henkel, March 28, 2018
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The U.K.’s Advertising Standards Authority (ASA) has banned Sensodyne True White toothpaste and Alpecin Caffeine C1 adverts, following a review revealing that the claims made were misleading. Colgate Palmolive initially lodged a complaint against Sensodyne, prompting producer GlaxoSmithKline to present supporting studies. The ASA found no evidence to support the claim that Sensodyne True White was more whitening than standard toothpaste that did not make a whitening claim. Similarly, evidence provided to support Alpecin’s claim as a hair loss-reducing shampoo, by manufacturers Dr. Kurt Wolff., was rejected.
"Misleading adverts for ‘whitening’ toothpaste and a shampoo which boasted of beating hair loss have been banned", Mail Online, March 28, 2018
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Oral care in the U.S. is dominated by three well established brands, Colgate, Crest and Sensodyne, but some smaller brands are getting traction. Hello Products has a natural formation without triclosan, an FDA-banned antibacterial chemical, or saccharin. Both of its non-fluoride and fluoride versions are also be without glutens, parabens, microbeads, artificial flavors, and dyes. Packaging is simple and striking. The adult toothpaste has a minimalist black tube with white lettering. The company claims to be the #2 natural toothpaste product and this year expects sales of $20 million.
"Taking On The Toothpaste Giants: How One Entrepreneur Built A Fresh $20 Million Brand", Forbes, March 29, 2018
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A review of venture investments into direct-to-consumer (DTC) startups shows strong interest in businesses focused on beauty and personal care. Crunchbase estimates that Harry's, which offers male grooming products, has most funds raised of the startups it reviewed, at nearly $475 million. This compares to $164 million raised by Dollar Shave Club up to the point Unilever acquired it in 2016. Glossier, which launched in 2014 after the success of the beauty blog, Into The Gloss, has raised $86 million. Many of the companies seek to disrupt established businesses much the way Warby Parker changed eyewear. Launched In 2010, Warby Parker has raised a total of $290 million with the latest round of $75 million carrying a $1.75 billion valuation.
"Mastering The Consumer: Top 15 D2C Startups By Funding", Wiredfocus Tech News, May 28, 2018
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Direct-to-consumer wellness startup Hims provides a range of products aimed at American men worried about hair loss. Some 85 percent below the age of 50 experience thinning hair to some extent. The Complete Hair Kit costs $44.00 a month and comprises Finasteride pills, a shampoo, a bottle of Minoxidil, and 30 Biotin Gummies. The items can also be purchased separately. Buying the complete kit or Finasteride pills separately involves an additional $5 for an online medical examination with a licensed doctor. Finasteride is currently allowed in only 18 US states. Hims's products cost up to 80% less than the products sold at retail stores.
"A men's wellness startup is redefining how guys approach hair loss by making modern treatments affordable and accessible", Business Insider, May 29, 2018
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Direct-to-consumer makeup brand Mented, which focuses products for women of color, raised $3 million in seed funding from CircleUp Growth Partners. Founded in 2017 by Harvard Business alumni KJ Miller and Amanda Johnson, Mented sells lipstick, lip gloss, eyeshadow, nail polish, and cosmetics accessories with neutral shades that fit the skin tones of women of color, broadly defined as black, Hispanic, Middle Eastern and Southeast Asian women. Mented plans to use the funding to expand its staff, diversify its products, and fund marketing strategies. The firm plans to have a product for every cosmetic category by the end of next year. The investor has a series of DTC investments, including Hum Nutrition, Kosås, and Pop & Bottle.
"Mented, A Makeup Brand By And For Women Of Color, Receives $3M From CircleUp Growth Partners", Beauty Independent, May 29, 2018
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Selling direct to the consumer online remains a huge opportunity for brands, and one that is likely to transform the industry, but brands need to do more than just sell to consumers. Instead, they must offer solutions to their specific needs. Glossier, in the cosmetics category is a good example of how brands should rethink their consumer relationships. The brand is positioned strongly towards millennials, focusing on social media to build engagement by offering a sense of community and personalization, and by offering solutions. It has on offline store, in New York, geared to encourage visitors to share their experience online. The growth Glossier and other dynamic are generating demonstrates the potential impact of a better consumer focus.
"‘To’ or ‘For’ Consumers? Shifting Perspectives for Driving Growth", Consumer Goods, May 29, 2018
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French beauty brand L’Oreal has received approval from the U.S. Bankruptcy Court in Delaware to acquire customer data from bankrupt department store chain The Bon-Ton Stores Inc. L’Oreal has agreed to pay $312,900 for the information after winning the right to buy the mailing list in an auction in July 2018. However, the purchase price could still change, with L’Oreal having to pay 35 cents per customer if the customer count falls below 894,000.
"L’Oréal USA, CSC Ink Deals for Bon-Ton’s IP Assets", Women’s Wear Daily, September 07, 2018
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Skincare brand Paula’s Choice is facing growing consumer complaints over some steps taken by the company and its founder Paula Begoun. After the company was acquired by private equity firm TA Associates in 2016, Begoun was replaced by Tara Poseley as chief executive officer in 2017. Negative consumer reaction began when the company started raising the prices of its products and after the company launched an eye cream. Also, the direct-to-consumer brand is facing growing competition from emerging skincare brands, such as The Ordinary, Cosrx, and Drunk Elephant. According to Poseley, the company urgently needed a rebranding and speeding up the rate it brings new products to the market.
"The Original Internet Beauty Brand Is Under Attack", Beauty of Fashion, September 08, 2018
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MoonBox offers a subscription box service that includes beauty and personal care products that consumers can use depending on the lunar cycle. Company founders Paula Pavlova and Katie Huang believe there is an incredible potential market in the “growing intersection of holistic wellness and beauty”. For them, beauty and wellness are linked to an increase in demand for products that offer mental wellness in addition to the usual physical benefits.
"MoonBox: a look at the metaphysical beauty movement", Cosmetics Design Europe, September 11, 2018
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Drugstores are expanding their lineups of products and services to address the shift in consumer concept of health and wellness. According to the 2017 report, “Well Economy,” by JWT Intelligence, 77 percent of respondents link health with physical condition; however, 75 percent say mental health comes to mind when they think of health. Also, only 17 percent of consumers seek out prescribed medication when they are ill. Casino Group partnered with L’Oreal in June 2018 to launch Le Drugstore Parisien in Paris where customers can avail themselves of personal care services, including light therapy, dry cleaning, and shoe shining. In August 2018, pharmacy chain CVS launched BeautyIRL, a retail concept designed to highlight the company’s locations as beauty destinations where customers can receive treatments, test products, and access information about new brands.
"The destination drugstore", JWT Intelligence, September 12, 2018
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Rituals Cosmetics plans to open a new store at London’s Kings Cross train station. Part of the beauty brand’s efforts to attract tourists, the store will offer customers with a “unique and immersive” shopping experience. According to the company, the store will embody the company’s holistic and well-being ethos.
"Rituals entices tourists with new Kings Cross store", Cosmetics Business, September 12, 2018
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Instagram has announced that users of the photo and video-sharing social media platform can now add shopping stickers to their Instagram Stories. With more than 400 million daily active users, Instagram Stories offers brands a place for showcasing their products, as well as a high potential for engaging with consumers.
"Shopping on Instagram expands to Stories", Shopify Team , September 17, 2018
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Brazil-based beauty company Natura Cosmeticos SA has expressed its interest to acquire Avon Products Inc. With its market value having dropped to $900 million, the once powerful direct-sales beauty brand has gained the interest of other companies seeking to take over the company. For its part, Avon has been focused on turning its business around and resuscitating its shares.
"Brazil’s Natura Recently Approached Avon About a Takeover", Wall Street Journal, September 17, 2018
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Parfums, Inc., subsidiary, Interstellar Brands LLC, announced a partnership with supermodel Lily Aldridge to develop a new fragrance line. Marking the start of a strategic partnership between Interstellar and model management agency IMG Models, the deal aims create direct-to-consumer ecommerce fragrance and beauty businesses targeting the talent agency’s client base.
"Interstellar Brands, A Subsidiary Of Inter Parfums, Inc., To Develop A New Fragrance Line With Lily Aldridge", Inter Parfums, September 18, 2018
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Procter & Gamble Co. is selling its new Heated Razor men’s shaving product to early adopters through the Indiegogo crowd-funding platform. Priced at $109, the Heated Razor comes with a fast-warming bar, making every shave feel like a hot-towel luxury. Available in limited quantities, the prices is expected to rise, based on how fast it sells and the accessories bought by consumers.
"P&G puts its latest tech to the test on Indiegogo", Cincinnati Business Courier, September 18, 2018
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Retailer Public Goods said it has received $3 million in seed funding to sell natural products directly to consumers. According to the company, the financing round was led by venture capital firm Yes VC with Listen Ventures, Day One Ventures, and current investors. Its business model involves selling premium, natural, and environment-friendly products directly to consumers for a monthly fee of $59. Products sold include shampoo, conditioner, body wash, and dental floss.
"Public Goods raises $3M to sell natural products direct to consumer", Vator.tv, September 19, 2018
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