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Period: December 18, 2018 to January 8, 2019
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

Venus Launches Limited Edition Razor In Partnership With Remi Cruz

Gillette Venus has teamed up with Remi Cruz, an entrepreneur and YouTube personality, for the launch of a limited-edition razor. The Venus x Remi razor has a handle printed with a tropical design and is available for the holiday season exclusively on the new Venus Direct subscription platform. 

"Gillette Venus Teams Up with YouTube Star Remi Cruz for Limited-Edition Razor", Procter & Gamble, December 07, 2018

Ukrainian Startup Has Developed A Disposable Toothbrush Based on Paper

Effa, a Ukrainian company, is producing toothbrushes with a paper body covered by a nano-layer of PLA, a cornstarch-based polymer. The head is also made from PLA, and the bristles from nylon mixed with castor oil. The packaging is water-soluble. Effa is looking to develop a range of everyday goods that are more environmentally-friendly, targeting hotels, airlines and prisons. 

"Disposable toothbrush is made from paper", Springwise, December 10, 2018

Showfields Is A New Retail Concept For Digital Native Brands

A New York City concept store has opened, providing physical space for a number of digitally-native direct-to-consumer brands. Showfields is something of a hybrid store – more than just a pop-up, but not necessarily permanent. It will accommodate brands including Function of Beauty, Nuria and Quip, and offers a space for influencers to showcase products for a month at a time. The brands will be there until March, and possibly beyond, occupying the first floor. Three additional floors will art exhibitions and event space. Showfields is planning opening a similar store in another city in 2019, with a target of 100 locations in 10 years. 

"New Retail Concept Showfields Unveils Downtown New York Destination For Digitally Native Brands", Beauty Independent, December 12, 2018

Procter & Gamble To Acquire Walker & Co.

Walker & Company Brands, which makes health and beauty products for people of color, announced it will be acquired by Procter & Gamble for an undisclosed amount. The company’s brands include grooming line Bevel, targeting men with coarse or curly hair, and FORM Beauty, a hair care line for women with textured hair. The brands are primarily sold direct-to-consumer, but Bevel can also be found in Target stores, and Sephora stocks Form Beauty products. Bevel has taken a different approach to marketing Dollar Shave Club, relying less on paid media and more on social-media and word-of-mouth. P&G says it wants to learn about how Walker builds and uses authentic connections, and Walker aims to leverage P&G's expertise in developing, distributing and marketing products, and how to build the brand internationally. 

"Procter & Gamble buys Walker & Co.", Advertising Age, December 12, 2018

Shopify Aims To Offer A One-Stop Shop For D2C Brands

Shopify, the e-commerce platform underpinning thousands of direct-to-consumer sites, is projecting 2018 sales of over $1 billion. It continues to develop its marketing services and aims to be a one-stop shop. It is moving into paid media, launching a service that enables merchants to run and track campaigns on Google and Facebook. It offers an alternative for brands wary of relying on Amazon, but it cannot currently match the traffic generated by Amazon, which also can handle the merchants’ warehousing and shipping needs. Shopify has developed a point-of-sale platform that enables it to extend its relationship with any brands that are seeking to open physical outlets.

"Shopify wants to become the 'back office' for direct-to-consumer brands' ad budgets and marketing", Business Insider, December 13, 2018

Ilia Beauty Gets Investment From Silas Capital To Help Grow Online D2C Sales

Ilia Beauty is receiving investment from Silas Capital to help it develop direct-to-consumer sales. The clean makeup brand initially focused on lip products but has since introduced True Skin Serum Foundation and Limitless Lash Mascara. The brand claims to use organic and natural bases, but also includes synthetics to deliver product performance aims. The terms of the deal were not made public. Brand sales are thought to have doubled in each of the last three years, and 2018 sales are estimated at $20 million. In the spring, it will launch True Skin Radiant Priming Serum, and will also introduce True Skin Serum Concealer. Later in the year, it will expand beyond cream-based formulations to gel-bases, and launch more eye products. The brand is sold in some 40 Sephora stores, as well as in a number of other outlets, including Detox Market, Bluemercury and Space NK. It plans to gain distribution in more mainstream beauty retailers and expects distribution in some 500 stores globally by ...  More

"Clean Makeup Brand Ilia Beauty Secures Investment From Silas Capital", Women’s Wear Daily, December 17, 2018

The Decision To Sell D2C Requires Consideration Of Many Moving Parts

An article in Supply Chain Quarterly looks at the potential benefits and pitfalls in direct-to-consumer sales for CPG companies. D2C startups have managed to disrupt the traditional oligopolistic market structure in CPG. Large established companies have been cautious about adopting D2C as a channel, but they have been catching up. The pitfalls include potential damage to traditional relationships with retailers and losing high-value shelf-space developed and paid for over many years. D2C sales may cannibalize traditional retail sales, and the move to D2C also involves a significant cultural shift and investment in new distribution networks. Potential benefits include better access to the consumer and their preferences, and it enables the brand to better control its image online. However, the choice doesn’t need to be binary. An omnichannel approach can allow brands to leverage the advantages of both channels. Selling D2C, however, will have involve significant supply chain challenges, ...  More

"Delivering on "direct to consumer" in the CPG industry", Supply Chain , December 19, 2018

Moondust Hair Wash, A New Powder Shampoo, To Be Sold D2C

Travel is to get easier with a powder shampoo that can be rehydrated when needed. Kailey Bradt’s company OWA has secured $200,000 in funding to launch Moondust Hair Wash. The shampoo contains no water and is also free of artificial coloring, parabens, sulphates and silicones, and has no fragrance. OWA has also developed a water-free hair mask and styling lotion. Moondust Hair Wash should be available soon direct-to-consumer.

"Powder shampoo can be rehydrated with water", Springwise, December 21, 2018

D2C Brands Closing The Search Volume Gap To Big Brands In The UK

A Google search trends study for the UK found direct-to-consumer brands lagged larger brands in search interest last year, but some are closing the gap. Gillette had double the searches of Dollar Shave Club in 2018, according to the study commissioned by Marketing Week. Searches for DSC grew by over 430 percent, and but searches for Gillette fell 2 percent. Huel, a meal replacement drink brand, saw about two-thirds of the search volume of established rival SlimFast, and its UK search volumes grew 92 percent in the year. The top fastest-growing D2C brands for search volumes in 2018 were Dollar Shave Club, Brushbox (403 percent), Huel, Glossier (85 percent) and Simply Cook (45 percent).  

"Interest in direct-to-consumer brands lags big rivals – but maybe not for long", Marketing Week, December 21, 2018

Kerotin Hair Care Brand Receives Backing from Virtù Equity For Expansion

Canada-based direct-to-consumer haircare brand Kerotin announced an investment from Miami-based private equity firm Virtù Equity. A new board will include a Virtù Equity partner, Marcos Fabio Lopes, as the new president. The brand was launched two years ago. China will become its first major target outside English-speaking markets.

"Virtù Equity Partners to Enter Joint Venture With Kerotin Hair Care Products", PR Newswire, December 21, 2018

The Honey Pot Company Founder Reveals How She Aims To Build The Brand Through Multi-Channel

Beatrice Feliu-Espada, founder of The Honey Pot Company, aims to alter how women shop for feminine care products, and says they are not luxuries but a human right. The products are sold online, direct-to-consumer, and in Target and Whole Foods, as well as on Amazon. She says that important elements include product assortment and innovation. The products are all-natural, free from chemicals, sulfates, parabens and carcinogens, but contain herbs, essential oils and nutraceuticals. The range includes pads and tampons, as well as washes and wipes, sprays and lubricants. Coming soon is a CBD-infused pain salve for menstrual cramps. Other key elements are brand awareness and diversified distribution. In an interview with Forbes, Feliu-Espada said that consumers are becoming smarter and understand better how the products they consume affect their bodies. She also believes that multi-channel is the right approach, but says that she wants the company to become big and believes that means ...  More

"How This Feminine Care Entrepreneur And Advocate Tackles Multichannel Retail", Forbes, December 28, 2018

How Andrew Dudum Aims To Build Hims And Hers Into A $20 Billion Wellness Powerhouse

The Hims male wellness brand, launched at the end of 2017, offers products to address conditions such as erectile dysfunction and baldness, with customers answering questions on the site so a physician can approve the sale of prescription products. Following three funding rounds that have raised nearly $100 million, it has expanded into female wellness, with the Hers brand, which offers prescribed products for birth control, loss of libido and hair loss. The founder and CEO, Andrew Dudum, said he is aiming to simplify healthcare. In its first week, the company took $1 million, and has grown rapidly from there. He believes he is building towards $10-20 billion a year in the next few years rather than a D2C brand to be acquired by a large CPG player, and says that the key to building a long-term sustainable business is to ensure its financials are “incredible” very quickly, to diversify in revenue and customers, and to develop a loyal following that will last.

"How Hims founder Andrew Dudum plans to build a $20 billion business", Digiday, December 28, 2018

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