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Personal Care Business Insight Alert Archive

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<<12345678910>> Total issues:308

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August 08, 2017, to September 19, 2017

Skincare Products Get A New Lease On Life Around The Globe

L'Oréal sees the skincare market reviving globally, especially in China, and that’s a “good phenomenon,” according to CEO Jean-Paul Agon. Skincare sales at the company are up by single-digit rates. Active Cosmetics was its second-biggest growth story in the first six months of the year, behind L’Oréal Luxe, which grew 15.4 percent. The consumer division, however, was its second-weakest in the first half of fiscal 2017, with sales up 3.8 percent to about $6.4 billion, hurt particularly by mass market makeup in the U.S. L'Oréal thinks the reasons might be “a certain transfer into higher-price items and maybe a reallocation of [consumer] spending" to different categories.

Acquisitions, Divestitures, Keep L'Oréal Growing

L'Oréal is rapidly gaining on household and personal products market leader Unilever in the international top 30 companies list compiled by Happi.com. Despite the company’s agreement to sell The Body Shop to Natura – “the best new owner we could imagine to nurture the brand,” said CEO Jean-Paul Agon – the company grew in size after acquiring CeraVe, AcneFree, and Ambi from Valeant for $1.3 billion. Last year, L'Oréal acquired IT Cosmetics for $1.2 billion and Atelier Cologne. The Active Cosmetics unit, parent of CeraVe and other product lines, saw sales rise 5.7 percent, driven by a 12 percent increase in La Roche-Posay sales. The division is also ramping up efforts to reduce skin cancer with an array of sun care products.

Americans Are Woefully Ignorant Of How To Properly Wash Their Faces

A national survey sponsored by L’Oréal’s CeraVe skincare brand found that 80 percent of Americans are not cleaning their faces properly, making mistakes like using bath wash or hand soap, water alone, or not washing at all. The survey of 1,000 adult Americans found that 60 percent feel uninformed about proper skin cleansing methods. Nearly two-thirds had no idea what ingredients to look for when purchasing a facial cleanser, and fewer than 10 percent had heard of the skin ingredients called ceramides – a key ingredient of the CeraVe line of products – that restore moisture and strengthen the skin barrier. A N.Y dermatologist said the results are “troubling” but not surprising.

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July 25, 2017, to August 08, 2017

L’Oréal Displays Beauty Innovations At Paris Technology Show

L’Oréal showcased its latest beauty innovations at Viva Technology Paris in June. Lancome, Kerastase, L'Oreal Paris, La Roche-Posay and L'Oreal Professionnel showed how they applied advanced digital technologies to create personalized services for consumers. The L’Oréal display area in the center of the Hall of Tech also included a startup corner highlighting partnerships with young companies in the area of human resources. Among other innovations, the company presented in Europe for the first time Lancome's Le Teint Particulier Custom Made Foundation that matches skin tone to a personalized foundation at the point of sale.

Procter & Gamble Cuts $140 Million From Digital Advertising Spend

Procter & Gamble reduced spending on digital advertising by $140 million in the second quarter of 2017. With the company reporting no adverse impact on revenue performance during the quarter, marketers have to ask their marketing and media agencies some questions, including how they are measuring the effectiveness of digital marketing spending. Also, clients need to understand the methods used by digital and publishing partners to measure the effectiveness of digital campaigns.

Proper Skin Cleansing Is Apparently Not An American Talent

A national survey or 1,000 American men and women found that facial cleansing – and skin cleaning in general – is not a major skill. Eighty percent err when cleansing their face, according to the CeraVe study, which also found that: 60 percent of Americans are generally unaware of how to properly cleanse their skin; more than half use bath wash or hand soap to cleanse their face (a third use only water); and nearly two thirds (65 percent) are clueless when it comes to ingredients to look for when shopping for a facial cleanser. Sixty-three percent don't know what those ingredients are for. The survey was conducted by the makers of skincare brand CeraVe to mark National Cleanse Your Skin Week.

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June 27, 2017, to July 25, 2017

RB Posts Lower Net Revenue In First Half Of 2017

Reckitt Benckiser reported net revenue declined like for like to ₤5.017 billion in the first half of 2017, compared with the same period of the previous year. Operating profit for the period was ₤1.063 billion, an increase of 50 percent compared with the same period in 2016. Operating profit rose 16 percent to ₤1.19 billion on an adjusted basis. According to the company, net finance expense for the period was ₤47 million, the increase caused by the increased net debt cost related to its acquisition of Mead Johnson Nutrition.

Aldi Says It Will Not Sell Flushable Toilet Wipes In Australia

Discount retailer Aldi has canceled plans to sell the Green Action line of bathroom cleaning wipes the company described as “flushable.” Aldi's action came following complaints by consumers and warnings by the Australian Competition and Consumer Commission regarding how “flushable” wipes harm the environment when disposed of in toilet. In December 2016, the ACCC sued Kimberly-Clark Australia and Pental for making misleading claims by describing their products as biodegradable.

Unilever’s Tinkering With Marketing Spending Boosts 2nd Q Profits

Unilever’s second quarter financials mostly beat Wall Street expectations – sales growth fell three percent short – but the rise in profit came from cuts in marketing expenses. In April the company said about $2.3 billion of its planned three-year $7 billion cost-cutting program would come from marketing and overhead. During the first half of this fiscal year, however, nearly a third of the cuts came only from marketing; half were attributable to both marketing and overhead. The company is cutting ad agency and production spending, but marketing spending overall will rebound in the second half when 60 percent of Unilever's new-product launches for the year will take place.

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June 13, 2017, to June 27, 2017

Unilever's Lifebuoy Brand Launches Campaign To Reduce Child Mortality In Kenya

Unilever's Lifebuoy bath soap brand launched a public information campaign aimed at reducing child mortality in Kenya. Part of the company's Lifebuoy Help a Child Reach 5 program, the 21-day campaign focuses on raising awareness and changing personal hygiene habits of 12 million people in the country by 2020. To achieve these goals, the campaign promotes handwashing with antibacterial soaps and supports a continent-wide campaign to encourage behavior change for more than 1 billion people across Africa.

Hain Celestial Reports Healthy Financial Numbers

Organic and natural products company Hain Celestial posted an adjusted profit of $192.9 million on net sales of $2.9 billion for fiscal 2016, an 11 percent increase over 2015, and 13 percent on a constant currency basis, compared to fiscal 2015 sales of $2.6 billion. Sales figures were buffeted by $69.2 million in foreign exchange fluctuations over the prior year. For the first nine months of fiscal 2017, the company reported flat net sales of $2.1 billion over the prior year, but a four percent increase on a constant currency basis. Sales were affected by $96.2 million from foreign exchange rate movements over the prior year. CEO Irwin Simon said the company accomplished “substantial cost-savings, enhancing customer-centric, go-to market initiatives and fueling innovation.”

Langrock Named CFO At Hain Celestial

Organic and natural products company Hain Celestial has named James M. Langrock as executive vice president and chief financial officer to succeed Pasquale Conte, who is leaving to pursue other opportunities. Langrock, who joined the company in November 2015 as senior vice president, finance and treasurer, has more than 25 years’ experience at companies like Monster Worldwide, Motorola's Enterprise Mobility Division, Symbol Technologies, and Citibank.

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May 30, 2017, to June 13, 2017

Unilever To Expand Indonesian Production Capacity

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. 

Fosun Should Find Better Takeover Target Than The Body Shop, Analyst Says

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.

Health And Personal Care Sales Booming Online, Led By Amazon

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.

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May 23, 2017, to May 30, 2017

Unilever Claims Politics Keeps It From Employing Refugees In UK

Politics has prevented Unilever from hiring refugees in the UK, according to the company's CEO, Paul Polman. He said that employing refugees could provide Europe an “economic boost” similar to what helped rebuild the continent after the second World War. Polman called on European governments to encourage companies to hire people seeking asylum.

Reckitt Benckiser Names Dec PR Its Public Relations Agency In Australia

Reckitt Benckiser Australia has named Dec PR its public relations agency in the country. Dec PR's appointment follows the public relations problems encountered by RB Australia after its Nurofen brand of pain relievers was fined $6 million by the country's Federal Court. Claiming RB made misleading claims with its marketing for Nurofen, the Australian Competition and Consumer Commission appealed the initial fine of $1.7 million imposed by the Federal Court on RB. Australia's High Court upheld the lower court's ruling.

Ulta Beauty Posts Strong Sales Gains In 1Q Of 2017

Ulta Beauty said net sales jumped 22.5 percent to $1.315 billion in the first quarter of 2017, compared with the same period in the previous year. Comparable sales rose 14.3 percent during the period, compared with the 15.2-percent growth in the same quarter of fiscal 2016. According to the company, retail comparable sales grew 10.9 percent, including salon comparable sales growth of 9.9 percent. Salon sales grew 16.7 percent to $68.7 million, compared with the same period in the previous year.

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May 16, 2017, to May 23, 2017

Unilever Indonesia Joins Local Online Shopping Platform Blibli.com

PT Unilever Indonesia has opened a Unilever Anchor Store on local online shopping website, Blibli.com. According to Unilever Indonesia e-commerce manager Hira Triadi, all of the company's products are featured on the online store. Through the online store, Unilever Indonesia hopes to widen its reach to include millennials and consumers who like using social media.

Shiseido Plans R&D Center For Asia-Pacific Region In Singapore

Shiseido plans to establish a research and development center in Singapore, barely more than a year after putting up a regional headquarters in the island state. Also, the Japanese cosmetics company is preparing a collection of beauty brands from among its leading global brands from the US and Japan. These brands will be offered to consumers in the Asia-Pacific region, according to Shiseido Asia Pacific president Jean-Philippe Charrier. According to the company, Indonesia, Vietnam, and the Philippines are among its high-growth areas in the region.

Sustainable Living Brands Initiative Has Positive Impact At Unilever

Products that Unilever six years ago designated as “sustainable living brands” – they offer a strong social or environmental purpose – have proven to be generally more successful than the rest of its product lineup, the company says. They have grown 50 percent faster and delivered more than 60 percent of the growth in 2016. Eighteen ended up in Unilever’s top 40 brands. Most successful sustainable living products include Lifebuoy, Ben & Jerry’s, Dove and Hellmann’s, with high single- and double-digit sales over the past six years. CEO Paul Polman said the results show that “sustainability is good for business” because consumers want sustainable products. A Unilever-commissioned survey found that more than half of all consumers already buy or want to buy sustainably.

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May 09, 2017, to May 16, 2017

India's Deodorant Market Explodes, Euromonitor Reports

Sales of deodorants in India grew 177 percent from 2011 to 2016, according to Euromonitor International. Data from a report by the market research firm revealed deodorant sales reached Rs 1,130 crore in 2011, which grew threefold to Rs 3,130 crore in 2016. For years, Indian consumers have relied on fragrant talcum powders to help control body odor. At present, younger consumers with stronger purchasing power have increasingly relied on deodorants for protection from body odor.

Schmidt's Naturals Expands Sensitive Skin Collection Of Deodorants

Schmidt's Naturals has added the Coconut Pineapple, Jasmine Tea, and Lavender Tips scents to its Sensitive Skin collection of deodorants for people with sensitive underarm skin. Designed to provide consumers with a “smooth, creamy formula” for sensitive skin, the products are made without toxic ingredients, such as aluminum and propylene glycol. First launch in 2010, the brand is famous for its efforts to listen to what customers want and need.

Popular Beauty Brands Fail Ethics Test, Ethical Consumer Magazine Says

Popular and leading beauty brands have failed a corporate ethics analysis by the Ethical Consumer magazine. Focused on workers' rights, environmental policies, and animal testing, the test revealed that even brands perceived by consumers as ethical were actually guilty by association with their parent companies. Some brands sold by retailer Boots were rated poor because parent company Walgreens Boots Alliance does not require suppliers to ban animal testing. LVMH's beauty brand Benefit got a terrible score of 1.5 points out of 20 for its parent company's refusal to join the Roundtable on Sustainable Palm Oil.

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May 02, 2017, to May 09, 2017

Pond's Withdraws Marketing Claim For Pimple Clear Face Wash Product

Unilever South Africa voluntarily withdrew Pond's “pimple free in 3 days” marketing claim for the Pimple Clear Face Wash product. While the Advertising Standards Authority found the advertisement did not violate the country's medical-related-marketing rules, the company's decision to withdraw the claim means Pond's has to stop using it. Beiersdorf, maker of Nivea and Eucerin products, filed the complaint against Pond's marketing claim.

Certification To Transform Unilever Philippines Factory Into “Halal Hub”

Fortified with its new halal certification, the Unilever Philippines factory in Cavite will begin producing products across its home care, personal care, food, and refreshment segments for domestic and foreign Muslim markets. The company said the Cavite factory will become the “halal hub” for the Southeast Asia and Australia markets. A new mega-distribution center in Cabuyao, Laguna, expected to be finished by October, would handle distribution and transport of Unilever products manufactured in Cavite and Paco, Manila.

Sally Beauty President Sharon Leite Leaves Company

Sally Beauty Holdings announced Sharon Leite's resignation as president of the company's Sally Beauty chain of beauty and personal care stores effective May 1, 2017. According to the company, it has tasked an executive search firm to find Leite's successor and that, for the meantime, CEO Chris Brickman will act as the business unit's president.

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April 25, 2017, to May 02, 2017

Shiseido's Prestige Brand Cle De Peau Beaute Opens Ginza Store

Shiseido Group's prestige brand Cle de Peau Beaute opened its brand store Cle de Peau Beaute Ginza Six in Ginza Six, a commercial complex in Tokyo. Located in the country's prime shopping address, the store is designed to represent the brand's value described by the company as the combination of beauty and science. In partnership with architect Tsuyoshi Tane, the brand came up with the design concept it calls “Brilliant Cell” for the store.

Helen Of Troy Sees Weaker Revenue Numbers In 4Q Of FY 2017

Helen of Troy Limited reported consolidated net sales revenue dropped 2.3 percent in the quarter ending February 28, 2017. Factors adversely affecting revenue performance included an 8.3 percent decline in core business, 1.2 percent decrease from Venezuela re-measurement, and 0.5 percent from currency fluctuations. According to the company, its consolidated gross profit margin expanded by 2.0 percentage points, with 0.6 percentage points from the core business.

Procter & Gamble Posts Weaker Sales, Earnings In 3Q Of Fiscal Year 2017

Procter & Gamble Company said net sales declined 1 percent to $15.6 billion in the third quarter of fiscal year 2017, compared with the same quarter in the previous year. Organic sales increased 1 percent, with diluted net earnings per share dropped 4 percent to $0.93 from the previous year. Core earnings per share increased 12 percent to $0.96. Operating cash flow was $3.0 billion, the company said.
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