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L’Oréal Promotes Anca Stefan To Chief Digital Officer For Russia And Kazakhstan

October 12, 2018: 12:00 AM EST
L’Oréal has promoted Anca Stefan from digital and consumer intelligence manager for L’Oréal Romania to chief digital officer for Russia and Kazakhstan. Her promotion came four years after joining L’Oréal Romania where she played a key role in developing the company's digital marketing strategies. She plans to adapt L’Oréal’s global digital strategy to better address a market that is not dominated by Google and Facebook’[Image Credit: © L’Oréal S.A.]
Louise Prance-Miles, "L’Oréal Russia and Kazakhstan announces Anca Stefan as new Chief Digital Officer", Global Cosmetics News, October 12, 2018, © Global Cosmetics Media Limited
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Avon South Africa Launches Its First Beauty Pop-Up Store

October 8, 2018: 12:00 AM EST

In an attempt to increase accessibility [to?] and awareness of its brand, Avon South Africa opened the first of a series of exclusive beauty pop-up stores. The stores will be at major cities and will have make-up specialists and skincare experts to advise customers. Precilla Kalogeropoulos, head of integrated marketing communications at Avon, claims more pop-up stores will be launched nationwide to promote the Avon brand, and especially its premium lines, but also to encourage women to become entrepreneurs as an Avon representative. [Image Credit: © Avon Products]
Dhivana Rajgopaul , "Avon launches first beauty pop-up stores", Independent Online, October 08, 2018, © Independent Media and affiliated companies.
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Big Data And AI Helping Beauty Brands Identify Opportunities, Develop New Products

October 5, 2018: 12:00 AM EST
AI is being used to help companies spot unserved opportunities through analyzing online data such as searches, reviews and purchase patterns. Alibaba’s Tmall Innovation Centre helped L'Oréal China as it developed a male beauty line for the Chinese market, while A.S. Watson, which has 14,400 stores in 24 markets worldwide worked with Unilever to launch TRESemmé hair care in China Some smaller brands are using AI to developed personalized products and services.  Indian brand, Freewill, uses information about an individual’s hair to create personalized hair products, factoring in data such as city and weather. While Singapore-based Alcheme uses AI to analyze a customer’s selfie to assess skin conditions and select and create personalized skin care products.[Image Credit: © Tmall.com]
Amanda Lim , "Data is power: Indie beauty brands get personal with big data", Cosmetics Design Asia, October 05, 2018, © William Reed Business Media Ltd
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True Sons Launches Subscription Model To Tap Home Hair Dye Market For Men

October 5, 2018: 12:00 AM EST
Seeing the lack of choices for men who want to color their head, beard and body hair at home, True Sons launched an at-home hair dye subscription service. Founder Carl Sandler, claims current offerings are very limited with the brand Just for Men dominating the $200 million market. He believes men find shopping for the product difficult and embarrassing and would prefer to have it delivered. Currently, just 8 percent of men color their hair compared to 80 percent of women. The kit includes all elements needed - gloves, wipes and the ready-mixed hair dye foam. It’s available from the brand's website, truesons.com, for $30 per month or $72 per quarter.[Image Credit: © https://truesons.com/]
Faye Brookman, "A New Option in the Men’s Hair Color Market", Women’s Wear Daily, October 05, 2018, via True Sons Grooming, Inc., © Penske Media Corporation
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Chanel South Korea Launches Online Platform For Cosmetics

October 5, 2018: 12:00 AM EST
In South Korea, Chanel launched an online platform for its cosmetic products and service with a wrapping service and select deliver day option to encourage gifting. Separately, and in an attempt to attract young customers, particularly those in their 20s and 30s, Chanel Korea launched a Coco Game Center pop-up store which features game that feature the Chanel logo.[Image Credit: © Chanel, Inc.]
Song Seung-hyun, "Chanel Korea starts online platform for cosmetics", The Investor, October 05, 2018, © Herald Corporation
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Survey Shows Convenience A Key Reason For The Growing Popularity of Direct-To-Consumer Brands

October 4, 2018: 12:00 AM EST
A survey by Diffusion and YouGov discovered several reasons for the growing popularity of DTC brands among consumers, with convenience being the primary motivation. 27% said buying DTC brands is more convenient than going to a store, with older consumers finding convenience more important than millennials (26% versus 17%). The survey found that DTC brands fell short with personalization, customer service, and limited use of organic or eco-friendly ingredients. Still, DTC looks set for continued growth, with 81% of US internet users indicating they’d buy at least one DTC item in the next five years.[Image Credit: © YouGov PLC.]
Krista Garcia, "Where Direct-to-Consumer Brands Are Winning Consumer Confidence", eMarketer , October 04, 2018, © eMarketer Inc
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Gillette Introduces Its First Direct-To-Consumer Service In Canada

October 3, 2018: 12:00 AM EST
Gillette has launched its direct-to-consumer (DTC) service, Gillette On Demand, in Canada. It features a subscription service and an option for one-off purchases, providing consumers with flexibility, shopping convenience, and customization opportunities. The service offers blades and razors at a range of price points, including the Fusion5, MACH3 Turbo and Sensor 3.[Image Credit: © Procter & Gamble]
"Gillette® on Demand™ Launches in Canada to Deliver a Smooth and Easy Way to Get World Class Blades", Procter & Gamble, October 03, 2018, © Procter & Gamble
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Direct-To-Consumer Retailer Brandless Opens Second Pop-Up With Purpose Store In New York City

October 3, 2018: 12:00 AM EST
Brandless, a direct-to-consumer e-commerce business focusing on affordable pricing, opened its second Pop-Up With Purpose store in New York's Milk Building. It will run from late October to early November 2018, offering visitors an interactive experiences, including a beauty lounge and fair trade coffee bar. Chief executive officer and co-founder Tina Sharkey says the company wants to highlight values of the company and those of its online community, using multimedia displays. Brandless also wants the pop-up to widen its reach to young urban consumers.[Image Credit: © Brandless, Inc.]
Jackie Chiquoine, "New York Brandless Pop-Up Will Feature Everything From Tasting Flights To A Clean Beauty Lounge", PSFK, October 03, 2018, © PSFK
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Johnson & Johnson And VaynerMedia Focus On Credibility To Sway Gen Z

October 2, 2018: 12:00 AM EST
Brands are responding to a decline in consumer trust of influencers. Johnson & Johnson and its creative agency, VaynerMedia, are reaching out to Gen Z consumers by enlisting teenagers who, by their actions, are seen as more credible, through their actions, even if they have a more modest online following. The company selected several teenagers, including Dillon Eisman who runs a nonprofit in Southern California, to star in one of its videos promoting the skincare brand Clean & Clear, resulting in a 19 percent boost in sales. Credibility was also a key factor in turning to established major influencers Brooklyn and Bailey McKnight to launch C&C, a new Clean & Clear sub-brand. [Image Credit: © J&JCI]
Jack Neff, "Clean Break: Why J&J is enlisting teens with modest followings as influencers", Advertising Age, October 02, 2018, © Crain Communications
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Men's Grooming Brand Oars + Alps Forms Retail Partnership With Ulta Beauty

October 1, 2018: 12:00 AM EST
Following a US$1.3 million seed-funding round in summer last year, male grooming brand Oars + Alps is partnering with Ulta Beauty to expand distribution beyond its own direct-to-consumer platform. It’s the brand’s first retail partnership, although it sells select items on Amazon’s Luxury Beauty store. Ulta will sell seven of the 23 Oars + Alps products on Ulta.com and in 300 stores. Co-founder and chief executive officer Mia Duchnowski claims the partnership can help boost awareness of the brand's products. The brand competes in category dominated by brands like Procter & Gamble's Gillette and Old Spice, and Unilever’s Axe.[Image Credit: © Oars + Alps]
Priya Rao , "Ulta continues to grow men’s grooming business with direct-to-consumer brand Oars and Alps", Digiday, October 01, 2018, © Digiday
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Australian Hair Care Company Kevin Murphy To Integrate Ocean Plastics Into Supply Chain

September 28, 2018: 12:00 AM EST

Company founder, Kevin Murphy, will use ocean plastics for his products' packaging in 2019 in an attempt to help reduce ocean plastic debris. Murphy, during a vacation in Bali, Indonesia, observed the environmental threat posed by plastic worldwide as an estimated 5 trillion tons of plastic currently litter the ocean. Danish packaging manufacturer Pack Tech is helping Murphy and his team switch to 100 percent ocean plastic packaging. To part offset the high cost of transporting, treating and reprocessing ocean plastic, Murphy increased the sale price of his products by 7 percent. Other companies that have similar advocacy include Dell and Adidas.[Image Credit: © Luis Murphy and Natasha Childs]
Eillie Anzilotti, "This beauty brand will source 100% of its packaging from ocean plastic", Fast Company, September 28, 2018, © Mansueto Ventures, LLC
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Analysts Predict Nestlé Will Divest Skin-Health Business To Focus on Beverages, Food

September 20, 2018: 12:00 AM EST
Nestlé may be planning to divest its $2.79 billion skin-health business as a way to placate an activist investor who believes the company should focus on food and beverages. Selling the unit could generate $4.1 billion, according to analysts, but the company did not comment on the speculation. Investor Daniel Loeb took a $3.5 billion stake in Nestlé last year and has since pressured the company to sell its investment in L’Oréal SA and in the skin-health arm set up in 2014 after Nestlé assumed full control of Galderma. CEO Mark Schneider has said the key to reviving stagnating growth is to focus on core areas with growth potential like coffee, pet care, water, and infant nutrition. Regarding coffee, the company recently bought the rights to market and sell Starbucks coffee and tea products in grocery and retail stores, and last year bought a majority stake in U.S. premium coffee chain Blue Bottle.
Saabira Chaudhuri and Brian Blackstone, "Nestlé Sharpens Focus on Food and Beverages With Review of Skin-Health Unit", The Wall Street Journal, September 20, 2018, © Dow Jones & Company Inc.
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Public Goods Raises $3 Million To Finance Direct-To-Consumer Expansion Plans

September 19, 2018: 12:00 AM EST
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.[Image Credit: © PUBLIC GOODS]
Steven Loeb, "Public Goods raises $3M to sell natural products direct to consumer", Vator.tv, September 19, 2018, © Vator, Inc.
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Interstellar Brands Partners With Lily Aldridge To Create New Fragrance Line

September 18, 2018: 12:00 AM EST
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.[Image Credit: © Inter Parfums, Inc.]
"Interstellar Brands, A Subsidiary Of Inter Parfums, Inc., To Develop A New Fragrance Line With Lily Aldridge", Inter Parfums, September 18, 2018, © Inter Parfums, Inc.
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Procter & Gamble Uses Indiegogo To Sell New Razor To Early Adopters

September 18, 2018: 12:00 AM EST
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.[Image Credit: © Procter & Gamble]
Barrett J. Brunsman, "P&G puts its latest tech to the test on Indiegogo", Cincinnati Business Courier, September 18, 2018, © American City Business Journals
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Natura Cosmeticos Proposes Takeover Of Struggling Avon Products

September 17, 2018: 12:00 AM EST
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.[Image Credit: © Natura International Inc.]
Dana Mattioli, Sharon Terlep and Dana Cimilluca, "Brazil’s Natura Recently Approached Avon About a Takeover", Wall Street Journal, September 17, 2018, © Dow Jones & Co., Inc.
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Instagram Announces Instagram Stories-Powered Marketing Tool For Brands

September 17, 2018: 12:00 AM EST
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.[Image Credit: © Instagram]
"Shopping on Instagram expands to Stories", Shopify Team , September 17, 2018, © Shopify Inc.
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China’s Millennials Fall In Love With Black Tech Beauty Products

September 14, 2018: 12:00 AM EST
Skincare trends, referred to by industry observers as “black tech”, are becoming popular among millennial consumers in China. Three of the leading black-tech product categories are black-tech facial machines, with the ReFa Electronic Roller from Japan as a leading example; black-tech facial cleansers, such as those from Foreo; and black-tech massage boosters, including those from the SK-II brand. Facial rollers from ReFa accounted for 50 percent of the segment’s revenue in 2017, with more than $4 million worth of ReFa machines sold during the November 11 Singles Day shopping festival. Foreo’s facial cleanser became a social media favorite, with many celebrities posting themselves using the product. SK-II launched a massage booster in 2017, selling all of its 10,000 units during the company’s 2017 TMALL Super Brand Day event.[Image Credit: © ReFa USA]
Jiaqi Luo, "Chinese Millennial Skincare Gets a Black Tech Makeover", Jing Daily, September 14, 2018, © Herlar, LLC
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Samsung Joins Estee Lauder To Host 2018 Style Dimension Fashion And Beauty Event

September 14, 2018: 12:00 AM EST
Samsung and beauty giant The Estee Lauder Cos. Inc. joined forces to host the 2018 WWD x Samsung Style Dimension, an industry event highlighting the use of immersive technologies in creating consumer experiences. Held on September 6 and 7, the event also focused on industry trends involving the integration of beauty, fashion, and technology. Unlike its previous editions, the 2018 Style Dimension allowed those who attended the event to buy all the beauty brands on display and to interact with pop-up displays enabled by Samsung’s technologies.[Image Credit: © Estée Lauder Inc]
Tracey Greenstein, "Style Dimension Blends Beauty and Tech, Woos ‘Experiential Consumers’", WWD, September 14, 2018, © Penske Media Corporation
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Aesthetic Hydration Cosmetic Opens Shanghai Pop-Up Store, Marks Coming Into China Market

September 12, 2018: 12:00 AM EST
South Korean skincare brand Aesthetic Hydration Cosmetic has unveiled a pop-up store in Shanghai, marketing the company’s official entry into China’s beauty care market. According to AHC, its cosmetics products are being sold at health and beauty stores across China, as well as in online shopping malls in the country. With the pop-up store offering customers the chance to experience the company’s leading products, AHC said it will target women in the country with its leading moisturizing products.[Image Credit: © CARVERKOREA]
Kang Da-young and Lee Ha-yeon, "S. Korean skincare brand AHC officially enters China", Pulse by Maeil Business News Korea , September 12, 2018, © Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved
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Pharmacies Go Beyond Selling Medication, Transform Into Wellness Centers

September 12, 2018: 12:00 AM EST
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.[Image Credit: © CVS.com]
Nayantara Dutta, "The destination drugstore", JWT Intelligence, September 12, 2018, © The J. Walter Thompson Company
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Rituals Cosmetics Plans To Open Kings Cross Store In London

September 12, 2018: 12:00 AM EST
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.[Image Credit: © Rituals]
Becky Bargh , "Rituals entices tourists with new Kings Cross store", Cosmetics Business, September 12, 2018, © HPCi Media
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Subscription Service MoonBox Sells Beauty And Holistic Well-Being

September 11, 2018: 12:00 AM EST


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.[Image Credit: © MoonBox]
Deanna Utroske , "MoonBox: a look at the metaphysical beauty movement", Cosmetics Design Europe, September 11, 2018, © William Reed Business Media Ltd
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Paula’s Choice Faces Fan Discontent And Growing Competition From New Skincare Brands

September 8, 2018: 12:00 AM EST
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.[Image Credit: © Paula's Choice]
Kati Chitrakorn, "The Original Internet Beauty Brand Is Under Attack", Beauty of Fashion, September 08, 2018, © Beauty of Fashion
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Jurlique Collaborates With Tryzens To Launch New Digital Platform With Improved User Experience

September 7, 2018: 12:00 AM EST

Australia-based skincare brand Jurlique has partnered with ecommerce technology company Tryzens to launch a new digital retail platform. In 2016, the brand first launched its digital platform; its partnership with Tryzens aims to improve its customer experience and offer new ecommerce capability for shoppers.[Image Credit: © Jurlique]
Becky Bargh , "Jurlique drives forward with digital strategy", Cosmetics Business, September 07, 2018, © HPCi Media
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L’Oreal Receives Approval To Buy Bon-Ton Stores Mailing List

September 7, 2018: 12:00 AM EST
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.[Image Credit: © Bon-Ton Holdings, Inc]
Vicki M. Young , "L’Oréal USA, CSC Ink Deals for Bon-Ton’s IP Assets", Women’s Wear Daily, September 07, 2018, © Penske Media Corporation
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Brands Add Artificial Intelligence, Sensors, Other Technologies To Skincare Devices

September 7, 2018: 12:00 AM EST

Beauty brands are integrating technologies, including artificial intelligence, sensors, and Internet of Things, into their skincare devices designed to provide consumers with personalization and tailored information about their beauty care routines. Brands have their respective approaches to customization and consumer education, with Neutrogena, for example, developing products that come with sensors and cameras to offer consumers information on the health of their skin. For its part, Foreo has launched the Luna FoFo AI-enabled skincare device, while Clarisonic has introduced its Mia Smart facial massaging device.[Image Credit: © FOREO]
Emma Sandler, "The next generation of beauty devices are using AI and IoT technology to win over customers", Glossy, September 07, 2018, © Digiday Media
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Glossier CEO Weiss Sees No Chance For Her Company Working With Amazon

September 7, 2018: 12:00 AM EST
Emily Weiss, founder and CEO of ecommerce beauty startup Glossier,said her company will never sell on online retailer Amazon's platform. Established in 2014, Glossier has received $87 million in venture funding, enabling it to create a beauty brand popular among women. Weiss said other ecommerce companies can grow outside Amazon's shadow and that the user experience offered by the online retail giant “may not be the best fit for beauty and fashion products”.[Image Credit: © Glossier Inc.]

Sarah Perez, "Glossier CEO Emily Weiss on why the company won’t sell on Amazon", TechCrunch, September 07, 2018, © Oath Tech Network.
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Subscription Model Dominates Ecommerce, Offers Benefits For Businesses And Their Customers

September 5, 2018: 12:00 AM EST
In 2017, the subscription model accounted for 75 percent of online sales and continues to grow at a steady rate in 2018. In the first half of 2018, the market saw a huge move toward subscription-based retail. At its early stage, the subscription-based model were driven by Netflix and Spotify, platforms used by consumers to pay for entertainment instead of buying physical media. Subscription-based business offers several benefits for consumers, including saving money, saving time, and access to wide collections of products. For businesses, the model offers advantages, including predictable income, price control, and data collection.[Image Credit: © BiljaST]
Sandeep Kuttiyatur, "Subscriptions Are Taking Over eCommerce", CPG Matters, September 05, 2018, © CPG Matters
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Voice-Based Commerce Offers Brands New Means Of Differentiating Themselves

September 5, 2018: 12:00 AM EST
To differentiate themselves from competitors in voice-based commerce, consumer packaged goods companies are expected to take a number  of steps. These include creating an audio brand consistent with other elements of their branding, such as colors and logo, owning a brand voice that is distinct from Alexa, and creating unique “audio logos”. According to Tribal Worldwide London head of experience design, Sunny Kumar, after finding a voice, brands should know how to use it. Aptos marketing director Dave Bruno said brands should “take voice seriously” and make it as easy as possible to remember how to engage using the platform.[Image Credit: © Amazon.com, Inc. or its affiliates]
Matthew Stern, RetailWire, "Do CPGs Need Their Own Voice for Alexa?", CPG Matters, September 05, 2018, © CPG Matters
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Avon Launches Online Training Program For Sales Training Teams

September 5, 2018: 12:00 AM EST

Avon announced the launch of Digital Innovation University, the direct-to-consumer beauty brand's digital training program for its Sales Training Teams. Developed in partnership with digital experts, the training program is available online. It comes with three modules and runs for three months.[Image Credit: © Avon Products, Inc.]
"Avon's commitment to upskilling Sales Training Team with Digital Innovation University", Avon Company, September 05, 2018, © Avon Products, Inc.
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Lynx Changes Directions To Focus More On Male Mental Health Without Losing Sense Of Humor

August 31, 2018: 12:00 AM EST
After its previous marketing strategies had linked its brand to “lad culture, sex, and misogyny”, Lynx embraced campaigns that focus on ideals of masculinity that are harmful to male mental health. In January 2016, the male-grooming brand launched its “Find your magic” campaign, which encouraged young men to “embrace their differences.” Lynx and other brands face the risk of unfavorable reaction from consumers, who might see their “brand purpose” efforts as a means to enhance reputation and sell products. According to Lynx global vice president Rik Strubel, part of the brand's more socially conscious efforts is remaining true to its humorous heritage. [Image Credit: © Unilever]
Molly Fleming , "Lynx refocuses on ‘humour with heart’ to challenge male stereotypes", Marketing Week, August 31, 2018, © Centaur Communications Ltd (a member of the Centaur Media plc group)
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Glossier Plans To Create Social-Enabled Online Selling Platform For Own Beauty Products

August 30, 2018: 12:00 AM EST
After receiving an extra $52 million in venture capital funding, beauty brand Glossier plans to create a “social-selling website” for beauty products. According to company founder and CEO Emily Weiss, her company will build a website that combines social media and online shopping, which will allow consumers to get insights and buying tips from other users about beauty products. Weiss said the website will not be a social network that sells advertisements for revenue, but will instead be used by the company to sell its own beauty products. According to Weiss, her company's social commerce strategy aims to address the fact that despite advances in ecommerce and online retail, “the customer experience is pretty broken.”[Image Credit: © Glossier Inc.]
Janine Wolf and Kim Bhasin, "Inside Glossier’s Plans to Shake Up Your Makeup Routine", Bloomberg, August 30, 2018, © Bloomberg L.P.
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Big Companies Grab Direct-To-Consumer Startups That Fail To Secure Huge Investments

August 29, 2018: 12:00 AM EST
During the first eight months of 2018, Investors have placed a $1.2 billion bet on business startups that use the direct-to-consumer model to sell products. However, there has been several large acquisitions of DTC startups that have received little or nothing at all before being acquired. For example, natural deodorant brand Native failed to secure venture capital but instead received $550,000 from small investors, according to company founder Moiz Ali. Two years after creating his company, Ali sold Native to Procter & Gamble for $100 million in cash, while remaining CEO. Other deals involving acquisition of DTC startups include watchmaker Movado's plan to purchase DTC watch startup MVMT for as much as $200 million, with $100 million in cash, and mattress company Serta Simmons' plan to merge with Tuft & Needle, a startup that makes and sells foam mattresses in a box and sells them directly to consumers.[Image Credit: © Gerd Altmann]
Jason Del Rey, "The rise of giant consumer startups that said no to investor money", Recode, August 29, 2018, © Vox Media, Inc.
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Kelly Preston Plans To Launch DTC Organic Beauty Brand Breathe

August 24, 2018: 12:00 AM EST

Actress Kelly Preston plans to launch Breathe, a direct-to-consumer brand of organic beauty products in December 2018 or January 2019. At present, the company offers four anti-aging skincare products: a day serum, day crème, night serum, and night crème. Fully funded by Preston herself, Breathe is in negotiation with investors and plans to expand beyond skin care. Preston said she plans to transform Breathe into a totally organic lifestyle brand offering makeup, haircare, and products for men, babies, and the home.[Image Credit: © Kelly Preston]
Ellen Thomas, "Kelly Preston readies natural beauty brand Breathe", Los Angeles Times, August 24, 2018, © Los Angeles Times
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Beauty Bakerie Grows Its Business Through Social Media and Direct-To-Consumer Business Model

August 24, 2018: 12:00 AM EST
Beauty Bakerie, established by company founder Cashmere Nicole, became profitable in a few years depending on social media and a direct-to-consumer business model. Nicole, who had no beauty industry connections at all, developed a collection of “functional makeup” for busy women. At present, the company is growing fast, selling its beauty products in more than 60 countries online and some offline stores around the world. With 25 employees and three facilities in San Diego, California, the company has received various honors and recognition from leading magazines, such as Cosmopolitan, Teen Vogue, and Essence.[Image Credit: © Beauty Bakerie Cosmetics Brand]
"Cashmere Nicole Has The Right Recipe", Black Girl Cypher , August 24, 2018, © Black Girl Cypher
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Infinite Beauty Starts Offering HydraFacial MD Highlights High-Tech Beauty Treatments In Maryland

August 24, 2018: 12:00 AM EST
Infinite Beauty has begun offering its HydraFacial MD Highlights high-tech beauty services at its spa location in Bethesda, Maryland. Noted for its technology-focused approach to beauty care, the company operates eight spa locations that provide customers with innovative treatments, such as high-frequency, microcurrent, ultrasonic, and LED light therapy. According to the company, the HydraFacial process can increase skin hydration, help reduce lines and wrinkles, as well as enhance the appearance of hyperpigmentation or redness.[Image Credit: © Infinite Beauty USA]
"Infinite Beauty Continues to Ramp Up Investment in Beauty Technology", Newswire.com, August 24, 2018, © Newswire.com LLC
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Colgate-Palmolive Invests In Male Grooming Brand In India

August 23, 2018: 12:00 AM EST
Colgate-Palmolive has purchased a minority stake in the Indian direct-to-consumer online male grooming brand, Bombay Shaving Company, as part of a series A funding round. The company, launched in 2016, now has some 80,000 customers and offers over 30 products, including shave, skincare, beard care, and bath and body items. BSC says it aims to leverage Colgate-Palmolive’s long experience to help it grow the grow the brand, and the funds will be spent on brand building, innovation and improving key capabilities. [Image Credit: © Bombay Shaving Company]
Ranju Sarkar, "Colgate-Palmolive buys minority stake in grooming firm Bombay Shaving Co", Business Standard, August 23, 2018, © Business Standard Private Ltd
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L’Occitane Is Opening A Concept Store In New York

August 23, 2018: 12:00 AM EST
The L’OCCITANE Group is opening a concept store for its L’OCCITANE en Provence brand on Fifth Avenue, New York. The natural cosmetics brand aims to provide a destination that will communicate to visitors its key features and encourage consumer engagement. The brand is following a “glocal” approach in creating exclusive brand experiences and has recently opened new concept flagship destinations in France, Brazil, China, Singapore, Canada and the United Kingdom. The Paris store, for example, offers food inspired by some of the brand’s iconic ingredients. Christina Polychroni, the brand’s North American Chief Marketing & E-Commerce Office, says that visitors to the New York store can use immersive installations to explore the brand’s history and signature products.[Image Credit: © L’OCCITANE Group]
"L’OCCITANE raises the bar on customer experience and disrupts New York’s Fifth Avenue with its new experiential concept store", World Press OnLine, August 23, 2018, © WorldPressOnLine SAS
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Chanel Launches New Male Beauty Line, Starting In South Korea

August 23, 2018: 12:00 AM EST

In September, Chanel will launch its first male beauty line, Boy de Chanel, in South Korea. It will feature three products: a lip balm, eyebrow pencil and a tinted fluid. The line will also be rolled out online from November on the Chanel site. The range is named after Gabrielle Chanel’s lover, Boy Capel.[Image Credit: © Chanel Limited]

Louise Prance-Miles, "Chanel Set To Launch First Men’s Beauty Line Boy De Chanel In South Korea", Global Cosmetics News, August 23, 2018, © Global Cosmetics Media Limited
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Pinterest-Enabled Campaign Boosts Brand Awareness, Online Traffic, Sales For Manscaped

August 22, 2018: 12:00 AM EST
After launching a marketing campaign on social media platform Pinterest, men's grooming company Manscaped saw significant increases in brand awareness, online traffic, and sales. Data from a case study shared with Mobile Marketer revealed the campaign gave the company 13 percent increase in online traffic, 9 percent increase in customer acquisition, and 11 percent gain in online sales. Pinterest helped Manscaped upload a list of customers who previously bought the company's products. Pinterest Analytics allowed the company to fine-tune the campaign for optimal performance.[Image Credit: © Manscaped]
Robert Williams, "Men's grooming company Manscaped boosts web traffic 13% with Pinterest campaign", Mobile Marketer, August 22, 2018, © Industry Dive
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Jouer Cosmetics Plans To Open Pop-Up Store In Los Angeles

August 22, 2018: 12:00 AM EST
Jouer Cosmetics plans to launch its Jouer Rose Gold Collection Pop-Up Shop in Los Angeles, California, on August 22, 2018. Located on Melrose Place, the shop's opening will feature a first-hand Rose Gold Collection experience for influential shoppers. Also, the first 25 followers to shop the store will receive a free gift. Shoppers will also be able to personalize select products with custom-painted monogram services.[Image Credit: © Jouer Cosmetics]
"Jouer Cosmetics Launches First Ever Pop-Up Location In Los Angeles", PRNewswire , August 22, 2018, © PR Newswire Association LLC
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Blue Gems Acquires Cult Beauty Brand ICONIC London

August 19, 2018: 12:00 AM EST
Blue Gem said it has acquired ICONIC London, a cult beauty brand that has acquired a global following three years after its launch. According to Blue Gem, its investment will support ICONIC London's expansion into the US in the latter part of 2018, as well as help grow its retailer lineup in the UK. As part of the deal, company founder Jade Elliott will continue leading the company and remain its creative director. Selma Terzic assumes the CEO position.[Image Credit: © ICONIC LONDON]
Lucy Whitehouse , "Blue Gem acquires Instagram startup beauty player ICONIC London", Cosmetics Design Europe, August 19, 2018, © William Reed Business Media Ltd
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Lush’s Slap Stick Range is Natural, Vegan And Naked

August 17, 2018: 12:00 AM EST

Direct-to-consumer brand Lush launched the Slap Stick range this summer. The 40 egg-shaped foundations are said to be all-natural and 100% vegan. The ‘naked’ and solid product is a contrast to heavily-packaged liquid products. Lush’s Kayley Thomas says that reducing plastic packaging is important for the brand, and cosmetics are often one of the worst culprits. If bought online, the products are delivered in small cardboard boxes, which are fully recyclable and with a vegan coating to prevent the box being stained. However, the brand admits that, longer-term, a better packaging solution might be needed, and said it is developing a makeup bag to carry naked products.[Image Credit: © Lush Retail Ltd.]
Lucy Whitehouse , "Lush’s new foundation: a revolution of no packaging for colour cosmetics?", Cosmetics Design Europe, August 17, 2018, © William Reed Business Media Ltd
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Glossier Thriving In The Direct-To-Consumer Channel

August 16, 2018: 12:00 AM EST
Glossier is one of the standout beauty brands currently on the market, and it’s only four years old. The brand has succeeded by leveraging some of the industry’s key consumer drivers. Rather than use celebrity brand ambassadors, Glossier relies on the sharing trend to drive sales by peer-to-peer relationships, asking beauty role models and influencers to contribute to the “Into The Gloss” blog and to reply to consumers sharing experiences through social media. The brand is also adopting the direct-to-consumer sales model, enabling it to create strong and direct relationships with its consumers, including inviting consumer input to innovation. The brand targets the millennial consumner by initiating and sustaining digital conversations with younger buyers. Instead of advertising, it relies on social buzz. [Image Credit: © Glossier]
Tiffany Tseng , "Glossier, Glossier, Glossiest", IFA Paris Fashion Blog, August 16, 2018, © MBA Global Fashion Media students
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New Online Subscription Shave Brand, Umi, Features All-Natural Products

August 16, 2018: 12:00 AM EST
Umi Shave Club’s founder, Matt Green, is aiming to leverage two key consumer trends: natural products and online subscription shopping. He launched the brand in June 2018, and says his choice of natural products is inspired by his sister, Julia, who died of cancer eight years ago. The brand claims the products are all-natural and have not been tested on animals. The Umi Perfect Shaving Kit contains either a premium 4-blade or six-blade disposable razors, as well as a pre-shave cleanser, a moisturizer and foamless shave gel. Green believes shaving removes skin layers, making it easier for unhealthy skincare products to attack the body. Green has committed to donate 10% of the brand’s net proceeds to women’s health causes, including Breast Cancer Research.[Image Credit: © Umi Shave Club LLC]
"Umi Shave Club Offers Natural Products", Beauty Packaging, August 16, 2018, © Rodman Media
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Enhancing Its Digital Footprint Might not Be Enough For Avon

August 16, 2018: 12:00 AM EST
Although Avon has been working to improve its digital image to better reach millennials, there are concerns that it’s still not doing enough. Theodore Delimaris, Associate Consumer Analyst at GlobalData, believes Avon should step up its pace of modernization and raise its sights higher. He thinks the company’s traditional doorstep approach is discouraging existing and prospective representatives. Avon has been improving its online model, with reps reporting higher average orders in the second quarter, boosted by sales in the online channel, which appeals to the millennial consumer. However, Delimaris advises Avon to think beyond modernizing its channel approach, and to consider transforming its product portfolio to be more attractive to younger buyers. [Image Credit: © PublicDomainPictures from pixabay.com]
Lucy Whitehouse , "Avon’s efforts to modernize: does it need to do more?", Cosmetics Design Europe, August 16, 2018, © William Reed Business Media Ltd
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Lush And Change Please Team Up To Offer Free Drinks In Reusable Cups

August 13, 2018: 12:00 AM EST
Lush, the vegan beauty brand, has opened a pop-up coffee shop called #carrythecup in Beak Street, in Central London. It has partnered with Change Please, a social enterprise that helps London’s homeless, to raise awareness of single-use plastic. Lush is providing free drinks, including tea as well as hot and iced coffee, in reusable cups. The pop-up is open from mid-August for four weeks. The initiative follows its 2017 launch of the Bath Oil Box, a biodegradable container from recycled coffee cups to store bath bombs.[Image Credit: © Lush Retail Ltd]
"Lush draws attention to single-use plastics with new London pop-up", Cosmetics Business, August 13, 2018, © HPCi Media
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Some CPG Companies Are Still Ignoring DTC Opportunities

August 10, 2018: 12:00 AM EST
An article on Forbes.com suggests that CPG companies are facing myriad challenges, and many are losing market share by neglecting to address some of the changes in industry, notably the direct-to-consumer channel. The DTC model is not a panacea, but brands should consider how they might benefit from a DTC approach. The author highlighted a number of reasons for exploring DTC opportunities. Online sales are expected to contribute half of retail growth through 2025. Other benefits include the ability to test and launch new products in a less constrained environment; opportunities to gather consumer data; and interacting with consumers directly, to build a direct relationship and loyalty. Products that proved successful online could be extended to offline channels, and the testing period can be shortened significantly. NatureBox, for example, introduces over 40-50 new products each year, selecting those to keep on the basis of customer feedback. Traditionally, brands have had little chance to get to know their consumers, but DTC offers them a way of talking to them directly without having to rely on syndicated or panel data. However, the decision to go DTC needs to be backed up by a strong proposition and a strategy to retain customers.
Steve Olenski, "3 Reasons Every CMO Should Consider The Direct-To-Consumer Model", Forbes.com, August 10, 2018, © Forbes Media LLC
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Three Reasons Compel CPG Companies To Adopt The Direct-To-Consumer Model

August 10, 2018: 12:00 AM EST
Consumer packaged goods companies should consider adopting the direct-to-consumer model for three reasons: new product launches, consumer data, and consumer loyalty. To improve the success rates of new product launches, 75 percent of which fail, according to the Harvard Business Review, CPG companies must test concepts with real consumers using their direct channels before introducing those products to the retail channel. By using the DTC model, CPG companies gain access to a huge collection of information about the consumer. Also, by using a DTC channel, CPG companies can have a source of proprietary data which gives them competitive advantage. Finally, a direct access to the consumer provides CPG companies with means to create more convincing ways to buy from them and gather more personal information from their customers. [Image Credit: © Mediamodifier]
Steve Olenski, "3 Reasons Every CMO Should Consider The Direct-To-Consumer Model", Forbes.com, August 10, 2018, © Forbes Media LLC
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