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Aquafresh Marketing Claims Misleading, Advertising Standards Authority Says

January 16, 2017: 12:00 AM EST
Aquafresh has been ordered by the Advertising Standards Authority to stop claiming that its Aquafresh Complete Care protects teeth better than other brands do. Colgate-Palmolive filed the complaint against the marketing claims made by Aquafresh in an advertising campaign and on packaging, which claimed the product offered “24-hour sugar acid protection. Aquafresh admitted its product had no “unique ingredients” but claimed its advertisements made no “unsubstantiated claims.”
Roxanne Henderson , "Aquafresh and Colgate go head to head in ad war", HeraldLIVE, January 16, 2017, © HeraldLIVE
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Marketing
Regulation
Oral Care
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Worldwide
EMEA
Europe
United Kingdom

More South Korean Men Wear Make-Up, Boosting Male Beauty Market

January 16, 2017: 12:00 AM EST
Sales of men’s skincare products in South Korea rose more than 80 percent in the past five years. Driven by the country’s weakening economy and competitive job market, the men’s cosmetics segment now accounts for 10 percent of South Korea’s $10 billion beauty market. Toners, lotions, and BB creams are some of the favorite skincare products of male consumers, who are increasingly convinced that putting on makeup helps improve their self-confidence and, consequently, their chances of landing a job or finding a new partner.
Miranda Larbi , "Men in South Korea are wearing make-up to boost their self-confidence", Metro.co.uk, January 16, 2017, © Associated Newspapers Limited
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Unilever To Use 100% Recyclable Plastic Packaging By 2025

January 14, 2017: 12:00 AM EST
Unilever said all of its plastic packaging will be fully reusable, recyclable or compostable by 2025. In the next three years, Unilever will be reducing the weight of its plastic packaging by 30%, a commitment given under its Sustainable Living Plan.  The company also announced it has renewed its membership to the Ellen MacArthur Foundation (EMF) and will continue supporting the New Plastics Economy Initiative as part of its contribution to the Sustainable Development Goal 12 that focus on sustainable consumption and production. Unilever CEO Paul Polman called on the consumer goods industry to move towards a circular economy. Polman said the industry needs to do much more to help make sure plastic is managed responsibly and efficiently post-consumer use. According to EMF, only 14% of plastic packaging used globally is recycled, while 40% ends up in landfill and a third in fragile ecosystems. [Image credit © Nick White]
"Unilever commits to 100% recyclable plastic packaging by 2025", Unilever, January 14, 2017, © Unilever
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Unilever Indonesia Unveils Smaller Capex For 2017

January 12, 2017: 12:00 AM EST
Unilever Indonesia announced its plan to spend €115 million, or $120 million, to expand its factories in 2017. In 2016, the company spent Rp 2 trillion, or $150 million, an amount 20 percent higher than the 2017 figure, because the company needed to relocate to a larger headquarters. Unilever Indonesia operates nine factories across the country.
"Unilever Indonesia Cuts Capex for 2017", Jakarta Globe, January 12, 2017, © Jakarta Globe
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Indonesia

World Skincare Market To Reach $179 Billion In Value By 2022, Study Predicts

January 12, 2017: 12:00 AM EST
From 2016 to 2022, the world market for skincare products is forecast to expand with a CAGR of 4.7 percent to reach $179 billion in value by the end of that period, according to Allied Market Research. Data from the report “Skin Care Products Market by Type and Geography: Global Opportunity Analysis and Industry Forecast, 2014‒2022” revealed the Asia-Pacific region was the top market, accounting for more than 40 percent of the overall market revenue. Also, the face cream segment, including anti-aging creams and skin-brightening creams, contributed almost 75 percent of the market revenue, while the body care lotion segment accounted for 41 percent of the market.
"A Growth Trend for Skin Care Products", Beauty Packaging, January 12, 2017, © Rodman Media
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Target Launches Haircare Product Range Developed By Celebrity Stylist Kristin Ess

January 11, 2017: 12:00 AM EST
Retailer Target will launch Kristin Ess Hair, a line of haircare products developed by celebrity hairstylist Kristin Ess on January 5, 2017. Featuring 15 products, the range includes styling powder and a reconstructive mask, with prices ranging from $10 to $14. As part of the company's efforts to promote the product launch, Target will launch a related social media campaign.
Faye Brookman, "Target Taps Social Star for Hair-Care Collection", Women’s Wear Daily, January 11, 2017, © Penske Media Corporation
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L’Oreal’s Smart Brush Demonstrates Internet Of Things Application For The Beauty Industry

January 11, 2017: 12:00 AM EST
L’Oreal’s smart brush, unveiled at CES 2017, is just one of a number of products responding to opportunities provided by the Internet of Things within the consumer products industry, including Beauty. Smart devices are allowing brands to brands to become more involved in consumers’ daily routines. The smart brush is being sold at around $200, and only time will tell if consumers regard that as a price worth paying for the benefits it provides – better and more personalized information, performance monitoring and suggestions for improvements, as well as tips and recommendations. These aren’t necessary attributes for a hairbrush or toothbrush, but they will make life a bit easier for consumers, and brands can become better connected to consumers’ lifestyles and preferences, allowing valuable insights for future innovation and marketing efforts.  
Nikki Gilliland, "How the beauty industry is embracing the Internet of Things", Econsultancy, January 11, 2017, © Econsultancy.com Limited
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Amorepacific Joins Alshaya Group To Expand Middle East Operations

January 11, 2017: 12:00 AM EST
South Korean cosmetics company Amorepacific Group partnered with local retailer Alshaya Group to expand its business operations in the Middle East. With the Middle Eastern cosmetics market forecast to expand at a CAGR of 15 percent from $18 billion in 2015 to $36 billion in 2020, Amorepacific plans to open its first Etude House store in Dubai in the second half of 2017. Amorepacific has invested years in developing “regional expertise” in the Middle East by appointing regional experts, called Hyecho, to major urban areas in the region, such as Dubai, Abu Dhabi, and Teheran.
"Amorepacific Group Expands to Middle East Market", Amorepacific, January 11, 2017, © Amorepacific
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L'Oreal Buys Skincare Brands From Valeant

January 10, 2017: 12:00 AM EST
L'Oreal SA has agreed to acquire the skincare brands CeraVe, AcneFree, and Ambi from Valeant Pharmaceuticals International Inc. Worth more than $1.3 billion in cash, the deal covers the brands, which account for $168 million in combined annual revenue. Aside from supporting L'Oreal's fastest-growing businesses, the acquisition of Valeant's skincare brands is also expected to help the company expand its US operations.
Andrea Felsted, "L'Oreal's Pricey Problem Solvers", Bloomberg Gadfly, January 10, 2017, © BLOOMBERG L.P.
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New Versions Of Consumer Goods Sound The Death Knell For Older Products

January 10, 2017: 12:00 AM EST
New versions of consumer staples – alkaline batteries, bar soup, ground coffee, etc. – have led to the gradual decline in sales of the older versions. As consumer habits evolve, devotees of the older versions of staples – which may start to disappear from store shelves – may have to start stockpiling. IRI tracks sales on the older iterations of products, and here are some examples of the trend since 2011: margarine sales have fallen 24 percent as consumers turn to full-fat dairy products like butter; bar soap sales have dropped seven percent, as body wash sales surged; powder laundry detergent is down 47 percent, surpassed by pods, pacs, and liquids; single-serve coffee pods have pushed ground coffee sales down by eight percent; and frozen juice concentrate sales are down 37 percent as shoppers buy refrigerated brands or skip juice altogether.
Ellen Byron , "Last on the Shelf: How Products Dwindle Out of Favor", The Wall Street Journal, January 10, 2017, © Dow Jones & Company, Inc
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Chinese Consumers Are Adapting Priorities As China Changes

January 10, 2017: 12:00 AM EST
In an interview, Delon Wang, Manager of Asia Pacific Trends at Mintel, warned that the rapid growth seen in China’s consumer goods industry might slow as economic growth decelerates and the population adapts priorities to the new China, focusing for example on buzzwords like ‘ancient’ and ‘old’. Mintel’s Global New Products Database indicates that product claims including the word "ancient” on packaging grew 56% in the first half of 2016 within China’s beauty and personal care and food and drink and categories. Wang said that consumers are demanding authenticity, and they are increasingly concerned about health and the environment. Value remains another key attribute for consumers. More consumers are also looking at opportunities to be entrepreneurs themselves in a bid to improve financial security during turbulent economic times, and many are choosing subscription purchasing for their fitness and beauty items. Brand loyalty is highest among the middle-class consumers (68% versus 50% for consumers overall). Other factors at work within China include technological advance – such as the Internet of Everything and smart devices – and retail innovation and evolution, such as pop-up stores.
Natasha Spencer, "China’s cosmetics and consumer trends in 2017 part I: A change of pace", Cosmetics Design, January 10, 2017, © William Reed Business Media SAS
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Coty Partners With Online Social Selling Platform Younique

January 10, 2017: 12:00 AM EST
Coty Inc. said it has partnered with Younique, an online peer-to-peer social selling platform focused on the beauty market. As part of the agreement between the companies, Coty plans to purchase a 60-percent stake in Younique, with the online company's founders holding on to the remaining 40 percent. Also, Younique founder and CEO Derek Maxfield and chief visionary officer Melanie Huscroft will stay on in their leadership roles.
"Coty to Enter Into Partnership With Younique, a Leading Online Peer-to-Peer Social Selling Platform in Beauty", Coty, January 10, 2017, © Coty Inc.
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Online
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New Skin Nourishment Range From Burt's Bees With Royal Jelly

January 10, 2017: 12:00 AM EST
The Burt’s Bees natural skincare brand is introducing a new Skin Nourishment range for the face, containing vitamins, amino acids, antioxidants, and minerals. The range also contains royal jelly, which is produced by honeybees to feed the queen, and cleanses, hydrates and softens the skin. The products will be available in the natural grocery, drug, gift and specialty store channels as well as select mass retailers, including Target and Walmart. [ Image credit: © Cadalpe ]
"Burt’s Bees Debuts Royal Jelly Skin Care", Happi, January 10, 2017, © Rodman Media
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Shiseido Americas Names Papazian GM Of Laura Mercier Business

January 10, 2017: 12:00 AM EST
Shiseido Americas Corporation said it has named Alexandra Papazian as general manager of it Laura Mercier business. Effective March 1, 2017, Papazian will be based in New York and will be responsible for creating and implementing the overall strategy for the business in the US and overseas markets. She will also manage the brand's expanded marketing efforts, product development, digital marketing, and overseas expansion.
Jadzia Zielinski Tirsch, "Adding Multimedia Shiseido Americas Announces Appointment of Alexandra Papazian as General Manager of Laura Mercier", Business Wire, January 10, 2017, © Business Wire, Inc.
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L'Oréal To Buy Three Skincare Brands From Valeant

January 10, 2017: 12:00 AM EST
L'Oréal is continuing its run of acquisitions into 2017, signing an agreement to acquire three US-based skincare brands from Valeant for US$1.3 billion. Founded in 20015, CeraVe is a fast-growing skincare brand that offers skin cleansers, moisturizers, sunscreens, and baby products through drug stores, mass and beauty retailers, as well as online. AcneFree offers over-the-counter treatments for acne. Ambi’s skincare products treat dark spots and brighten skin. Combined sales are some US$170 million. L'Oréal USA says that the three brands are founded on relationships with health professionals and will nearly double sales for the Active Cosmetics Division.
"L'Oreal signs agreement with Valeant to acquire CeraVe and two other brands", L'Oréal, January 10, 2017, © L'Oréal
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Amazon Making Progress With Prestige Skin Care, Provides Rich Content To Engage Consumers

January 9, 2017: 12:00 AM EST
Amazon continues to build out its offering across new categories and its Amazon Luxury Beauty store shows it will be a contender in premium segments. The company recently added a page targeted at prestige shoppers - Amazon Professional Skin Care -that provides a range of ‘tools and kits to help you develop a complete daily care regimen.’ Amazon offers simple to use filters (shop by concern, expert advice…) along with videos and educational features that engage consumers. Color cosmetic players have for a while offered rich and engaging content but skin care brands have lagged and Amazon is moving to plug the gap - content on the Amazon page exceeds what is available at retailer websites and many beauty blogs.  It also looks to be winning over large brands that were previously dismissive. Elizabeth Arden recently became an official distributor on Amazon’s Luxury Beauty store, a move that will give the online retailer credibility. [Image credit © Innocentj]
Homa Zaryouni, "Amazon Makes Strides in Skin Care", L2 Daily, January 09, 2017, © L2 Inc.
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Beauty Brands Find Risk and Reward In Selling At Sephora

January 8, 2017: 12:00 AM EST
Sephora now has more than 2,300 stores worldwide and some beauty brands are increasingly finding the store challenging to deal with. The store, which is owned by LVMH Moët Hennessy Louis Vuitton SE, seems to favor LVMH brands, and also has a growing line of private label products that can give it an advantage. An assessment by The Wall Street Journal found that in the makeup area of a Sephora store, LVMH’s beauty brands can occupy nearly half of the shelf space, even though they have only 15 beauty brands compared with over 200 the retailer typically carries. Beauty brands are responding by trying to secure alternate outlets. Estée Lauder has promoted its own website as well as its MAC Cosmetics stores, while L’Oréal has opened stores for its Urban Decay brand. Some brands are also selling in lower market stores such as Ulta Salon Cosmetics & Fragrance Inc., a risky practice that can remove allure from a brand.  Brands selling at Sephora are also vulnerable to its own label Sephora Collection line. Sephpora can use its sales data to spot fast rising niches and then develop price competitive alternatives.  [Image credit © Caia Image]
Khadeeja Safdar and Sharon Terlep, "As Sephora Adds Products, Rivalry Heats Up at Its Stores", Wall Street Journal, January 08, 2017, © Dow Jones & Company, Inc.
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Shiseido Eyes Women Occupying 40 Percent Of Management Positions By 2020

January 6, 2017: 12:00 AM EST
Japanese cosmetics company Shiseido said it aims to have 40 percent of its management positions filled by women by 2020. In January 2017, the company has achieved its 30-percent objective. In Japan, the government wants 30 percent of leadership positions to be filled by women by 2020. [ Image credit: © Shiseido ]
"Japan's Shiseido aims for 40% female management by 2020", Nikkei, January 06, 2017, © Nikkei Inc.
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Rexona Launches Ad Featuring Cricketer Khawaja

January 6, 2017: 12:00 AM EST
Deodorant brand Rexona launched a video commercial featuring cricket player Usman Khawaja. Part of the brand's “Moments of Pressure” marketing campaign, the ad was produced by Milkmoney and highlights Rexona as the deodorant brand “for moments of pressure.”
Abigail Dawson , "Rexona uses Australian cricketer Usman Khawaja in new campaign", Mumbrella, January 06, 2017, © Mumbrella
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2017: The Year Of The Brand Chatbot?

January 6, 2017: 12:00 AM EST
2017 could the year of the chatbots for brands looking to automate consumer engagement. They reside within Messenger Services, like Skype and Facebook Messenger, as well as internal messenger services, like HipChat. They are becoming increasingly sophisticated with more user functionality, and as artificial intelligence becomes better understood, chatbots will be able to do even more, with development moving from what the bot builders believe consumers want to a machine-learned reflection of what they really want. Chatbots will proliferate and become an essential element of any integrated marketing campaign, supporting highly targeted campaigns delivered in the environment in which the consumer spends the majority of their online time.  
John Mccarthy, "What, Why and How: Chatbots for Brands", The Drum, January 06, 2017, © Carnyx Group Ltd.
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Mass And Premium Continue To Drive Growth In Color Cosmetics

January 5, 2017: 12:00 AM EST
According to Euromonitor International, the color cosmetics market was worth US$57 billion globally in 2015, driven by growing incomes for women in growth markets like India and China. Nearly two-thirds of the market (64%) was mass products in which consumers came from across the income spectrum, with some consumers limited to the mass market through income constraints and others choosing mass options over premium, with a new wave of mass “fast fashion” cosmetics brands that align with trends and rely on high volumes. Premium continues to grow faster than mass, and Euromonitor expects to see a CAGR for the premium segment of 4% over the next five years, versus 3% for mass. It also expects North America to be the first majority-premium color cosmetics market by 2020. The color cosmetics market will continue to encounter broad consumer megatrends, for example in the form of sustainability and healthy living. And customization remains a major opportunity for brands in this category, with brands catering for different skin tones, religions and cultures.  
Hannah Symons, "Reinventing Colour Cosmetics through Novel Growth Concepts", Euromonitor International, January 05, 2017, © Euromonitor
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Unilever's Premium Skincare Play Could Improve Margins And Valuation

January 5, 2017: 12:00 AM EST
Industry analysts Trefis believes that Unilever’s move into premium skincare, through a number of acquisitions, will help the company improve its EBITDA margins from a relatively low 18 percent to something closer to those generated by industry rivals. Trefis says that Unilever’s margins have been held down by relatively high marketing costs as a percentage of revenues; a reliance on mass, low-margin products; and increasing costs of raw materials, exacerbated by the impact of Brexit on sterling. A higher-margin, more premium-oriented portfolio will help address some of the pressures, supported by expected growth in the premium skin care segment and Unilever’s attack on costs from adoption of Zero Based Budgeting. Trefis believes Unilever could push up EBITDA margins to around 25 percent within a few years and the company’s valuation could improve by over 20 percent.
"Unilever’s Valuation Could Increase By 20% If Its Margins Rise Up to 25%", Trefis, January 05, 2017, © Insight Guru Inc.
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I Want My Beauty Treatment And I Want It NOW!

January 5, 2017: 12:00 AM EST
Consumers increasingly want their beauty treatments as and when they want them and new businesses are emerging to serve this demand. Two broad business models are competing – retail ‘bars’ and apps offering at-home service. Retail bars offer a very defined service, often on a walk-in basis. Examples include Skin Laundry for a ‘15-minute laser & light facial’ ($65 base price), drybar for a wash and blow dry ($45) or Madison Reed Color Bar that will touch up your roots for $45 in 45 minutes. Other services available from similar beauty bars include makeup applications, chemical peels and eyelash extension application.

Against these retail offerings are apps that seek to be the Uber of beauty services, bringing together a range of professionals who will provide services at-home. Leaders include Zeel Massage (‘same-day, in-home massages with the best licensed and vetted massage therapists’),  The Ritualist (‘in-home skin care treatment’), Glamsquad (‘Your pro team for hair, makeup and nails—anytime, anywhere’), Vênsette (‘Luxury blowouts, hairstyles, and makeup on demand’),and most recently, Colour (‘the first app for in-home hairstyling, on demand, created by women of color, for women of color’). Both business models work best in dense urban populations but this is truer of apps that need to balance demand and work flow for a team of contractors.  In both cases, venture funding is bankrolling service rollouts in the hope of securing a position in ‘convenient beauty.’ [Image credit © Image Source]
Rachel Strugatz, "Beauty Services War: Beauty ‘Bars’ Versus On-Demand", Women’s Wear Daily, January 05, 2017, © Penske Media Corporation
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Revlon Names Gwen Stefani As Brand Ambassador

January 4, 2017: 12:00 AM EST
Revlon announced the appointment of celebrity Gwen Stefani as its latest brand ambassador. With the brand planning to feature Stefani in various digital-first campaigns, the pop singer will appear in Revlon’s Choose Love campaign, which will run on broadcast, digital, and social media. Also, the brand’s designed-for-mobile website offers behind-the-scenes looks and content from the celebrity’s campaigns. Content will also be available on Facebook, Twitter, Instagram, YouTube, and Snapchat.
Rakin Azfar, "Revlon will Feature New Brand Ambassador Gwen Stefani in Digital Content", Mobile Marketer, January 04, 2017, © Napean LLC
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Kérastase And Withings Unveil Smart Hairbrush At CES

January 4, 2017: 12:00 AM EST
At the 2017 Consumer Electronics Show in Las Vegas, professional hair care brand Kérastase, together with connected health company Withings and L’Oréal’s Research and Innovation Technology Incubator, unveiled its new smart hairbrush - the Kérastase Hair Coach Powered by Withings. Fitted with advanced sensors and incorporating L’Oréal’s signal analysis algorithms, which score hair quality and track the impact of hair care routines, the hairbrush received this year’s International CES Innovation Award. Sensors capture sounds, the force applied when brushing, brushing patterns and the number of brush strokes, and whether the hair is wet or dry. The collected data are sent to the app via Wi-Fi or Bluetooth to a dedicated mobile app. Using external data, such as weather conditions, the app tracks the way the user cares for her hair and provides personalized tips and Kérastase product recommendations. It will be available around mid-2017 at select Kérastase hair salons, the brand’s website and through Withings’ online sales and distribution channels, for below $200.
"Kerastase and Withings Unveil World’s First Smart Hairbrush at CES 2017", L’Oreal, January 04, 2017, © L’Oréal
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Gen Z Is Techno-Savvy, But More Cautious, Conservative, Industrious

January 4, 2017: 12:00 AM EST
A college marketing agency survey has determined that Generation Z, known as the first “digital natives,” easily adapts to new technologies, expects instant gratification of needs and desires, and yet is more cautious and disciplined in the face of economic uncertainty than one might expect. The Fluent survey of 501 college students found that Gen Z-ers: have jobs (75 percent), spend less time gaming, use cash less often, prefer in-store shopping (54 percent), tend to avoid cable TV and radio, increasingly cook for themselves, are hooked on social media to connect with friends or get news updates, and want to work for midsize companies when they graduate.
"Fluent College Student Survey Reveals Rising, Falling Trends among Gen Z; New Behaviors Reflect Social and Economic Realities", Marketwired, January 04, 2017, © Nasdaq, Inc.
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Hawthorne For Men Matches Cologne To Consumer's Characteristics And Preferences

January 4, 2017: 12:00 AM EST
The Hawthorne for Men website invites visitors to answer questions about themselves and their habits and preferences, and then matches the responses to a cologne scent. The direct-to-consumer brand is targeting the eau de parfum market for men, which had sales of almost $70 million in 2015, according to NPD. The user is offered two options from the 10 formulas available: one a bold scent and another that is subtler. Each bottle costs $100. The company is confident it can accurately match the scent, but exchanges and returns are straightforward and returns are less than five percent, exchange requests are under 10 percent.
Dena Silver, "This Cologne Brand Accurately Chooses a Scent for You", Observer, January 04, 2017, © The New York Observer, L.P.
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Research Suggests An Omnichannel Strategy Can Boost Traditional Retailer Sales

January 3, 2017: 12:00 AM EST
In a rare piece of good news for traditional retailers that have for years seen slow growth and share declines – digital channel sales rose 23% in 2015 and 26% of all online retail sales now go to Amazon – research published in Harvard Business Review suggests that an omnichannel approach can give them an advantage. Omnichannel strategies aim to engage shoppers through multiple touchpoints and provide a seamless shopping experience across digital and brick-and-mortar platforms. Retailers that do this well can differentiate themselves through providing a multi-channel experience pure-plays simply can’t.  Researchers found that omnichannel consumers, which are by far the majority (73% in this study), commonly interact with retailers in many different ways – in-store, online, on mobile. Importantly, these consumer spend some 4% more per shopping occasion than single-channel shoppers, while customers who used 4+ channels spent 9% more in the store, on average, when compared to those who used just one channel. They are also more loyal, as measured by repeat shopping trips and likelihood they’ll recommend a brand to family and friends. [Image credit © Zero Creatives]
Emma Sopadjieva et al., "A Study of 46,000 Shoppers Shows That Omnichannel Retailing Works", Harvard Business Review, January 03, 2017, © Harvard Business School Publishing
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Burt’s Bees Extends Product Line Into Functional Foods

January 2, 2017: 12:00 AM EST
Personal care company Burt’s Bees has entered the functional food market with protein shakes targeted at consumers seeking beauty from "the inside out." The company that has specialized for three decades in selling natural lip and skincare products has developed three protein shakes – Daily Protein, Protein +Gut Health with Probiotics, and Protein + Healthy Radiance with Antioxidant Vitamins A, C & E – that provide 15 grams of protein per serving from peas, rice, flaxseeds, sunflower seeds, and oats. General Manager Jim Geikie said the move into functional foods “is a natural extension for us.” The shakes range in price from $29.99 to $39.99. Each contains 16-18 servings per tub. [ Image credit: ©  Burt's Bees  ]
"Burt's Bees Enters New Category with Plant-Based Protein Shakes", News release, Burt's Bees, January 02, 2017, © Burt's Bees
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Unilever, Coca-Cola And Lush Feature In Warc Brand Purpose Readership List

January 2, 2017: 12:00 AM EST
Warc’s annual readership data indicates that a number of brands featured in articles on purpose-driven marketing over the last year. Warc said that Lush’s discussion of its mission and strategy was a particularly popular article, and the company says that it’s important to be both open and honest about where it buys its ingredients, how it runs its business, and the claims it makes. Unilever also featured, with one talking about its initiatives in brand activism, which goes beyond “beautiful narratives”. It also featured in another, in a report from the Guardian Changing Media Summit 2016 on how Unilever and Coca-Cola build brand purpose.  
"Best of 2016: Purpose", Warc, January 02, 2017, © Warc
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Natural Personal Care Products Gain Traction In Traditional Retailers, Benefit From Key TrendsNatural Personal Care Products

December 30, 2016: 12:00 AM EST
Non-toxic beauty is moving to the mainstream as strong sales growth – in 2015, natural and organic personal care grew 8 percent in natural retail – cause traditional retailers to make space available for natural products. It’s also gaining traction with high-end outlets as some natural products push into prestige, suggesting its penetration will continue to grow. New Hope identified nine important trends in natural personal care. These include a shift in consumer sentiment, with consumers increasingly buying natural products not because of what they avoid, but because of what they offer. Innovation and improvements now means naturals are making claims and offering benefits that consumers want.  Another important shift came with the FDA’s 2016 ban of triclosan and 17 other chemicals used in hand and body washes marketed as "antibacterial," which is causing some traditional products to reformulate, often in a naturals direction, shining a development light for other products.  Last, research is starting to show the potential of naturals. One example is growing understanding about how microbiomes matter, especially for skin health. Research is underlining the importance of gut health and ‘good bacteria’ on the skin in promoting healthy skin. Products with topical probiotics will emerge and could bring large benefits. [Image credit © Peter Muller]
Jessica Rubino, "9 natural personal care predictions for 2017", New Hope , December 30, 2016, © Penton Media
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Amazon, Target Were Only Retailers To Boost TV And Digital Holiday Advertising

December 29, 2016: 12:00 AM EST
It almost seems as if the big retail companies got out of Amazon’s way this holiday season, at least when it came to advertising on TV. Bucking the trend away from TV advertising – Target was an exception – Amazon aggressively boosted its ad spending on TV by 76 percent, at the same time increasing digital ad spending by 224 percent. Meanwhile, Walmart cut television advertising by 10 percent, Sears by 53 percent, and Nordstrom by 45 percent. Target was the only retailer to boost ad spending across every medium, including print, TV and online. Its spending on print ads went up four percent, while TV spending rose 54 percent. [Image credit: © Amazon ]
Deena M. Amato-McCoy, "Amazon increased holiday TV ad spend in a big way", Chain Store Age, December 29, 2016, © Chain Store Age
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HUL Launches Ayurvedic Range To Combat Patanjali And Ignite Sales Growth

December 29, 2016: 12:00 AM EST
Patanjali has become a significant rival to Hindustan Unilever in the Indian personal care market since it was founded a decade ago, and HUL is launching a number of ayurvedic products aimed at better competing with this relatively new competitor. It will introduce some 20 products, including oral care, skin care and hair care items, under the Ayush brand, launched in 2001 as a premium line but now positioned for the mass market. Responding to Patanjali's growth, other global players have been launching ayurveda and herbal products opportunity, including L'Oréal with its Garnier Ultra Blends hair care products with 'natural ingredients'. Given the Indian market’s price sensitivity, analysts believe that herbal products there are more likely to succeed in the mass market, and HUL will hope this new initiative will help ignite lackluster sales growth.  
Sagar Malviya, "Hindustan Unilever launching a raft of Ayurvedic products to counter Patanjali", Economic Times, December 29, 2016, © Bennett, Coleman & Co. Ltd.
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Discount Stores, Drugstores, Grocery Stores Favorite Sources Of Health And Beauty Aids Of Almost Three-Fourths Of US Consumers, Report Says

December 23, 2016: 12:00 AM EST
In the US, discount stores, drugstores, and grocery stores combined are the top store formats, with 73.8 percent of consumers purchasing health and beauty care products as of November 2016, according to Fung Global Retail & Technology. Data from the market research firm's report, “US Health and Beauty AIDS Consumer Survey” revealed online stores account for 4.2 percent, significantly higher than the 1.0 percent recorded in November 2011. About 42 percent of respondents said they purchased some or all of their health and beauty aids online, while online retailers accounted for 8.7 percent of value share in the segment.
"US Health and Beauty AIDS Consumer Survey: Amazon is Not Only Competitive in Price, but Also in Customer Satisfaction", Fung Global Retail Tech, December 23, 2016, © The Fung Group
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Hygge Concept Opens Opportunities For BPC Brands In The UK

December 22, 2016: 12:00 AM EST
According to Mintel, the UK is embracing “hygge”, a Danish concept that combines relaxation, fun and comfort, and Mintel suggests that this could present opportunities for beauty and personal care brands. Hygge can be an individual or informal group activity, typically at home and involving food and drink. Mintel mentioned the August 2016 launch of Sanctuary Spa’s #LetGo campaign, aimed at encouraging consumers to relax, and 58 Lifestyle has launched the Hygge Kit, which includes candles, bath oil and a room mist. Mintel also expects the hygge trend to provide opportunities too for the subscription box market.
Charlotte Libby, "Beauty Spot: Hygge", Mintel, December 22, 2016, © Mintel Group Ltd.
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L'Oréal To Benefit From Global Cosmeceutical Market Growth

December 22, 2016: 12:00 AM EST
Highlighting a recent report from Research and Markets that projects global cosmeceutical market CAGR of 5.95% over the next five years, industry analysts Trefis outline how L’Oréal is well placed to take advantage. Market growth is expected to be driven by consumer trust in physician recommendations, the aging global population, the growth in demand for premium products, and growth in the global beauty and personal care industry as a whole. Trefis expects L’Orêal’s Active Cosmetics division, the company’s fastest-growing segment, to gain from this growth, helped by its partnerships with healthcare professionals, which supports innovation in this area, and the company’s distribution framework - a multi-channel approach incorporating digital tools. L’Oréal also sells products in this category through dermacenters, e-commerce and travel retail.  
"Here’s How L’Oreal Stands To Gain From The Growing Cosmeceuticals Market", Trefis, December 22, 2016, © Insight Guru Inc.
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Is The Contrary Consumer Simply Frustrated With Marketers?

December 22, 2016: 12:00 AM EST
The job of marketing is being complicated by contradictory consumer behavior. Consumers say they want a slower life but make quick purchase choices, and that health and wellness is a key priority for them, yet sales of products with unhealthy ingredients are still growing. The author wonders if the consumer is simply cynical of the marketers’ messages, and maybe that’s just a part of a broader feeling of distrust of a range of institutions, including government. Promises are made, and then broken. Trends help create the assumptions on which marketers base their approach to reaching the consumer, but those assumptions are increasingly being questioned. They are too general, unsophisticated and often flawed. There have always been “contrary consumers”, but now there is also a growing band of consumers that don’t like to be told what to do and like.  
"The Contrarian Consumer", Adworld, December 22, 2016, © Adworld Ventures Limited
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Functional Dietary Supplement Markets Are Thriving, With One Exception

December 22, 2016: 12:00 AM EST
An analysis of functional dietary supplements found some interesting sales and product trends. Sales of bone and joint supplements to baby boomers and post-menopausal women are expected to hit $9 billion globally this year, even though the numbers on established products like glucosamine and chondroitin are falling. Filling the void are alternative ingredients, including MSM, 5-Loxin, collagen, and plant-derived glucosamine. Except in Western Europe and Asia, where “beauty-from-within” products are on the rise, anti-aging supplements represent mostly an opportunity in the U.S. Sports nutrition has gone mainstream, becoming a $7.4 billion market dominated (72 percent of sales) by protein powder, Probiotic functional foods will be worth $50 billion by 2021, and probiotic dietary supplements are growing even faster and should hit $5 billion by 2021. [ Image credit: ©  Wikipedia.]
Adi Menayang, "Bone & Joint Health, Anti-Aging, Sports Nutrition, Pre- & Probiotics: Lessons from 2016’s Special Edition", NUTRAingredients-USA.com, December 22, 2016, © William Reed Business Media SAS
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P&G’s Small Steps On Preservative Disclosure – A Help, But Still Falling Short

December 22, 2016: 12:00 AM EST
In a nod to greater disclosure, P&G issued a press release to announce a preservative tracker to let consumers know which preservatives are included in different categories of P&G’s products, such as baby wipes, skin care, and hair care products. The company issued a table of preservatives by category and a tool to allow consumers to search by ingredient or by product type. In its updated policy statements, P&G said it no longer uses triclosan in any products and is in the process of exiting triclocarban, which has been linked to hormone disruption. P&G is also phasing out from its baby wipes the chemical phenoxyethanol that has been linked to nervous system problems in infants, allergic reactions and eczema, but will continue to use it in some skin care and hair care products. Still, the company is not disclosing this information on packaging, remains quiet about other ingredients, notable ingredient “fragrance” (or “parfum”) that can include around 3,000 chemicals, some of which are linked to cancer.  Greater disclosure is a positive move and will help P&G avoid widespread consumer disapproval, but lacks real conviction and doesn’t position it well for the broader push towards naturals.  [ Image credit © Jason Lander ]

 
Dev Gowda, "Statement on Procter & Gamble’s New Preservative Tracker in Personal Care Products", U.S. PIRG, December 22, 2016, © UNITED STATES PUBLIC INTEREST RESEARCH GROUP
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Sephora To Revamp Underperforming Fragrance Category Using Education and Engagement

December 21, 2016: 12:00 AM EST
Sephora is looking to revamp its fragrance business, building its strategy around engagement and education. Fragrance is an underperforming category at Sephora where it accounts for about 10 percent of sales, lagging behind beauty and skincare. CEO, Calvin McDonald, recognizes that Sephora’s current offering fails to differentiate and that the category generally has been “commoditized by discounts.” Working on the insight that buying a fragrance is both a bewildering and personal experience, Sephora is looking to engage and educate consumers so they feel empowered to buy. Online it has buying guides to help consumers clarify their perfume profiles and in-store it has set up demonstrations.  “We know that finding a fragrance is a personal experience, but it needs to be simplified and smart as it can be an overwhelming selection process,” said Brooke Banwart, VP of fragrance merchandising at Sephora. The company has been experimenting with “InstaScent” stations (previously called “Poof”) that let customers smell isolated notes to figure out which elements of fragrances they prefer and to learn about different “scent families.” The approach is similar to its beauty strategy where it uses video tutorial stations to help customers experiment with and perfect different makeup looks. 
 
Fragrance generally looks set for a shift to demystify and simplify purchasing, with valuable lessons likely available from other categories such as wine that has for years worked to make buying fun (and not stuffy) and shows ongoing innovation with different ways to purchase.  [ Image credit © David Goldman ]
Hilary Milnes, "How Sephora is Revamping its Fragrance Category", Glossy, December 21, 2016, © Digiday Media
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Global Male Grooming Market Set For Strong Growth Says PMR

December 20, 2016: 12:00 AM EST
Persistence Market Research believes that the $54 billion male grooming category will grow at a CAGR of 8.4 percent through 2024, and Europe, with almost 40 percent of the global market, will stay the most attractive region for the category. Germany, France, and the UK account for half of the European sales. Shave care and fragrances will be the top segments in North America, and China will drive growth in Asia. Global growth is being supported by e-commerce, which will account for over $12 billion of the additional sales through 2024. PMR expects global sales of men's shave care products to be more than $40 billion by 2024, hair care products will represent about 10 percent of the category, but men’s toiletries will lose share. PMR believes P&G will remain a dominant player globally, with over 10 percent share, but local players will “collectively dominate” with nearly one-third of the market, and this will encourage acquisitions by global players.
"Promises Fulfilled: Men's grooming is booming", Happi, December 20, 2016, © Rodman Media
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Sustainability Remained A Key Theme For Unilever In 2016

December 19, 2016: 12:00 AM EST
If there’s one message that Unilever is pushing at the moment above all others, it’s sustainability, and 2016 provided plenty of evidence, with a raft of corporate social responsibility initiatives and sustainability awards. With another 400 added during the year, it now boasts 600 zero waste to landfill sites, and it announced two major campaigns, one aimed at removing sexist and stereotype-based advertising and one from Dove to promote diversity and realism in marketing. Unilever admits it’s not all about altruism, but a strategic necessity. It claims that its brands that are in line with its sustainable living plan are growing faster. Its public image was, however, damaged as a result of a spat un the UK with Tesco over Brexit-related pricing. Also this year, it announced a new factory in Cuba, opened a new one in Ethiopia, is looking for sites in Colombia, and investing more in Nigeria. But, Unilever was relatively quiet on the acquisition front, although the Dollar Shave Club deal caused quite a stir.  
Georgina Caldwell, "2016 in review: Unilever – set on sustainability", Global Cosmetics News, December 19, 2016, © Global Cosmetic Media Limited
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P&G's Oral-B Brand Sees Potential In China's Electric Toothbrush Market

December 19, 2016: 12:00 AM EST
Procter & Gamble’s Oral-B oral care brand is optimistic about the potential for electric toothbrushes in China, supported by increased awareness of oral hygiene and rising incomes. The brand recently launched an intelligent electric toothbrush, the iBrush, and Oral-B's electric toothbrush products have grown between two and three times each year for the last three years. Most sales are online. However, market penetration remains low, with just two percent of Chinese residents using electric toothbrushes. Chinese toothpaste brand Saky believes the Chinese oral care market as a whole will reach 500 billion yuan within 15 years.
Zhu Wenqian, "Oral-B focuses sales on China's rising middle class", China Daily, December 19, 2016, © China Daily Information Co (CDIC)
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New Beauty Company Glansaol Acquires Three Brands

December 19, 2016: 12:00 AM EST
Glansaol, a new US-based prestige beauty and personal care company formed through a partnership between industry veteran Alan T. Ennis and Warburg Pincus, a private equity company, announced three acquisitions: Laura Geller New York, a prestige color cosmetics brand known as the pioneer of the "baked" makeup category; Julep, a prestige color cosmetics and skincare brand; and Clark's Botanicals, a premium skincare brand. Glansaol’s owners aim to make it a global company through acquisitions, building a portfolio of premium and complementary brands. [ Image credit: Neil Guegan
"Glansaol Established as New Prestige Beauty & Personal Care Company", PR Newswire, December 19, 2016, © PR Newswire Association LLC
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A Busy Year For Sephora

December 19, 2016: 12:00 AM EST
2016 has been a busy year for Sephora. Online, it has two new bot-powered beauty tools for Facebook's Messenger. The new Sephora Reservation Assistant allows customers to book appointments for makeovers at Sephora stores, and Color Match is a shade matching extension for the Sephora Virtual Artist bot. It has also been working to provide more of an ominchannel experience for shoppers, and is also rumored to be looking to expand its physical footprint too, with a store outlet in London’s Westfield shopping center. Further afield, it has see growth in India and opened a new distribution center in Poland. In Brazil, it is expanding distribution by rolling out its products in El Corte Ingles stores.  
Louise Prance Miles, "2016 in review: Sephora – the digital disruptor", Global Cosmetics News, December 19, 2016, © Global Cosmetic Media Limited
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Gillette Launches Digital And Social Media Campaign Aimed At Harry's Razor

December 15, 2016: 12:00 AM EST
Procter & Gamble Co.'s Gillette shaving razor brand launched “Welcome Back,” a digital and social media marketing campaign aimed directly at online rival Harry's Razor Co. According to Gillette, most men who tried Harry's come back to using Gillette razors; however, Harry's claimed its own data show 81 percent of the 375,000 customers who subscribed to the company have bought more products. After Harry's and Dollar Shave Club launched their razor businesses, Gillette’s share of the U.S. Market dropped more than 10 percentage points, according to Euromonitor.
Sharon Terlep, "P&G’s Gillette Swipes at Harry’s in New Ad Campaign", Wall Street Journal, December 15, 2016, © Dow Jones & Company, Inc.
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Trends In Cosmetics For 2016

December 13, 2016: 12:00 AM EST
Looking back over the year, the author highlights some of the trends observed in cosmetics ingredients. 2016 was a year for product aesthetics with manufacturers using a variety of materials to make a sensory statement, but it’s also increasingly important to hit the market with new products fast and first, but without compromising on quality, compliance or appeal. The popularity of natural and organic has been sustained, but consumers are also expecting to be allowed more customization opportunities, and material suppliers will meet this by giving brands greater flexibility. 2016 also saw launches with increasingly sophisticated science incorporated, especially meeting anti-aging demand for skin care products, and hair care was also a huge growth area for materials this year, offering solutions for hair and scalp problems.
Belinda Carli, "Top 6 Cosmetics Trends of 2016", SpecialChem, December 13, 2016, © SpecialChem
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Unilever South Africa Names New Axe Brand Manager

December 13, 2016: 12:00 AM EST
Unilever said it has promoted Asad Malik to manager of the company’s Axe deodorants brand in South Africa. In 2013, Malik was promoted to brand manager of Unilever’s desserts business in the country. He was promoted to lead the Walls Ice Cream business in 2015.
"Unilever Promotes Asad Malik to Lead Deodorant Category", Branding in Asia, December 13, 2016, © Branding in Asia Magazine
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L’Oréal’s Beauty Squad Is Yet Another Example That Authenticity Pays Off Online

December 12, 2016: 12:00 AM EST
A review of how L’Oréal Paris in the UK leveraged relationships with video bloggers underscores the benefit of a shrewd but straight up approach. A few months ago the company worked with five vloggers that combined have 5.5 million views with the aim of working with Kristina Bazaan, the brand’s global digital influencer, to boost the brand and maintain its position as the ‘go-to digital beauty brand.’ Rather than work with one or two vloggers that have wider reach, working with the five members of the Beauty Squad allows L’Oréal Paris to better reach a range of ages and ethnicities. Also, while each vlogger has a smaller base, they are selected for their knowledge and expertise. L’Oréal hopes that by building long-term relationships and seeking honest and comparative reviews it will manage to convince consumers over the long haul.  
"Here’s How L’Oreal Is Gaining Competitive Advantage With Its ‘Beauty Squad’ ", Trefis, December 12, 2016, © Insight Guru Inc.
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Aldi UK To Launch New Anti-Ageing Skin Line For A Limited Period

December 12, 2016: 12:00 AM EST
Aldi, the German discount supermarket, is launching a new anti-ageing skincare line in the UK, called Lacura VITACELL. It’s aimed at competing with premium skincare products, and contains Complex TCR3® to prolong the life of skin cells, as well as stem cells from sea plants to promote skin elasticity and structure. The products will be on the shelves as a Specialbuy in early February 2017 with limited supply.
"Aldi Launches Premium Anti-Ageing Skincare Range", International Supermarket News, December 12, 2016, © Retail Magazine
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