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Oriflame Refocuses Its Strategy On Skin Care and Wellness

November 28, 2016: 12:00 AM EST
Oriflame, the Swedish direct selling brand, is looking to narrow its focus to concentrate mainly on skincare and wellness, supported by cosmetics and fragrance products. It will focus less on personal care, but the change could take some time. It hopes eventually to increase the share of skincare and wellness from 34 percent to 50 percent of its total sales. The decision reflects what the brand sees as global trends, including the growth of interest in wellness. A study by KPMG together with the Federation of Indian Chambers of Commerce and says the direct selling industry in India could grow to Rs.64,500 crore in revenue by 2025 but, at just Rs 7,500 crore in 2013-14, accounted for less than one half of a percent of total retail sales in India.
Harveen Ahluwalia, "Oriflame to bet big on skincare, wellness in new strategic push", Livemint.com, November 28, 2016, © HT Media Ltd
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Philosophy Ventures Offline With An Experience Rich, Multisensory Concept Store

November 27, 2016: 12:00 AM EST
Beauty brand Philosophy will shortly launch its first concept store in the Westfield Garden State Plaza Mall in Paramus, New Jersey. The company hopes its WellBeing Beauty Workshop will be experience-rich and engage consumers across all senses: "the environment invites you to mindfully engage the senses on an individual level through touch, sight, sound and scent.” In addition to a discovery station where shoppers can touch, test and sample Philosophy skincare products, the store will have personalized consultants and a conversation station to promote Philosophy’s ethos and community. A cornerstone of this is the company’s ‘hope & grace’ initiative and its commitment to support mental health and well-being, as well as its undertaking to contribute 1% of sales to the hope and grace fund.  
Briana Draguca, "Philosophy Launches Its First WellBeing Beauty Store", Instyle.com, November 27, 2016, © Time Inc.
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China Continues To Embrace Online Shopping

November 24, 2016: 12:00 AM EST
In the second volume of a report on shoppers in China, Kantar Worldpanel and Bain & Company highlight continued rapid growth in online sales and expansion in the number of categories bought online. Online sales of FMCG products grew 36.5 percent last year, with volume up 69 percent. A decline in the average selling price came from the broadening of product options beyond the expensive original categories, baby care and beauty. It also found that physical stores are trying to complement online shopping, with the growing popularity of convenience stores driven by urbanization, for small baskets and top-up shopping. The authors believe that online and offline channels need to adapt to the changing reality to stay competitive. The growth in online shopping was demonstrated by the 11/11 Singles’ Day promotions. This year, Alibaba drew sales of $17.8 billion in the day, and the report suggested reasons for this sales splurge: existing shoppers choosing to spend more on the day; shoppers deferring purchases in the lead up to the day; and new shoppers attracted by the promotions.
"Dealing with Two-speed China", Kantar Worldpanel, November 24, 2016, © Kantar Worldpanel
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British Beauty Brands Seeing Growing Demand Internationally

November 24, 2016: 12:00 AM EST
Neal’s Yard Remedies, a British beauty brand, is flourishing in Japan. It has opened 15 stores in the market, and in seven years has expanded international turnover by over 200 percent. Other British beauty brands are also growing well overseas, supported by green credentials as well as an archetypal British identity associated with heritage, craftsmanship, trust and innovation. Jo Malone London, owned by Estée Lauder since 1999, is internationally appealing because of the perceptions of “British quality, British style and the magical appeal of the British landscape itself,” according to Celine Roux, the brand’s fragrance director. Similarly, international beauty trends are being embraced by British consumers, attracted and intrigued by other cultures.
Caroline Brien , "Why British beauty is booming abroad", Raconteur, November 24, 2016, © Raconteur Media Ltd.
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Lack Of Authenticity Trips Up Luxury Retailers But Lets Sephora Shine In Consumer Engagement

November 22, 2016: 12:00 AM EST
Research by Shareablee released in advance of Black Friday and the start of the biggest shopping season of the year shows Sephora is considerably outperforming other retailers on social media this year. Sephora had 2.4 million consumer interactions (which includes reactions, shares, comments, retweets, favorites) across Facebook, Twitter and Instagram, with engagement on Instagram especially important. This contrasts with big box and luxury retailers that all showed declines in social engagement, with Homegoods down 74%, Barneys off 50% and Bergdorf Goodman down 39% compared to last year. Shareablee CEO and Founder, Tania Yuki puts the shift down to greater consumer skepticism about retailer engagement attempts: “The consumer is much more skeptical of the retail season this year, and are rewarding only those retailers truly making an effort to be authentic and to add value to their shopping and research…”.


 
"Beauty Retailer Sephora Leads Consumer Engagement on Social in the Run Up to Black Friday as Many Major Retailers Struggle to Capture Consumer Interest", PRNewswire, November 22, 2016, © PR Newswire Association LLC
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L'Oreal Set To Reap Rewards Of China's Beauty Sales Growth

November 22, 2016: 12:00 AM EST
Market analysts Trefis highlighted a Morgan Stanley report on China’s beauty products market, which the authors believe will become the world’s largest. It was L’Oréal’s second largest market in 2015, behind the US, and the company’s leadership in digital gives it an advantage in a market where e-commerce sales of beauty items rose from 3% of the total beauty market in 2010 to 19% in 2015. Online sales account for over 20% of the company’s Consumer Products division’s total sales in China. Morgan Stanley notes the growing demand for premium cosmetics by Chinese consumers online or through travel retail channels, and L’Oréal’s luxury products division is well placed to capture this sales growth. Trefis said that skin care is L’Oréal’s most valuable segment and it expects the company to expand its share in global skin care, with China playing a major part in that.
"Here’s How L’Oreal Can Benefit From The Booming Beauty Market In China", Trefis , November 22, 2016, © Insight Guru Inc.
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L'Oreal And Unilever Sign Open Letter On Climate Change

November 21, 2016: 12:00 AM EST
Over 300 companies operating in the US have signed an open letter to world leaders in support of the Paris Agreement on climate change. Signatories include L’Oréal USA, Seventh Generation, and its new owner, Unilever. The companies fear that ignoring low-carbon imperatives will jeopardize the economy’s growth prospects, and they pledge to help meet the commitments of the agreement. The letter is partly a way of bringing President Elect into the climate change debate in response to signals that Donald Trump will appoint advisors that deny climate change. The letter, posted on lowcarbonusa.org, says that the Paris Agreement will encourage the investment in low-carbon technology required to deliver clean energy and prosperity for everyone.
Deanna Utroske, "In an open letter to Donald Trump, cosmetic and personal care corporations stand up for Paris Climate Agreement", Cosmetics Design, November 21, 2016, © William Reed Business Media SAS
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Looking Good No Longer The Preserve Of Young Women

November 21, 2016: 12:00 AM EST
No longer the domain of young female adults, being image-conscious is something that increasingly concerns older generations, including men. Canadean, the consumer research company, found that consumers are associating image with success, even though women are still more likely than men to feel the pressure to look good. Young adults (aged 16-24) are most likely to link success and image, but 60% of those over 55 years old are also making the connection. Canadean also found that in major economies men used skincare products on 453 billion occasions in 2011, and this grew to 557 billion by 2015. As the image-conscious age, so will demand for categories such as anti-aging products, and the rise of the selfie culture reinforces the need to address perceived skin imperfections. Brands might leverage this opportunity for marketing to older consumers who increasingly feel the need to be “photoready”.  
"Men's Skin Care Usage on the Rise, Says Canadean", Happi , November 21, 2016, © Rodman Media
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Emphasis On Digitalization And Fragrance Emerge From Natura’s Latest Investor’s Presentation

November 20, 2016: 12:00 AM EST
In its latest investor’s presentation Natura set out its longer term strategic vision that includes a repositioning of the Natura brand, investment to revitalize direct selling and the multi-channel shopping experience. Two notable items on its 2017 priority list include its leverage of digital technology and its upcoming fragrance push. On digitalization, Natura says some 99.65% of all orders are captured digitally with the number of unique visits on its digital assets rising from 7 million to 33 million per year from 2014 to 2016. Its Natura App facilitates online shopping, offers augmented reality and has over 100k active installs.  On fragrance, Natura claims to be the world’s tenth largest fragrance player worldwide, #1 in Brazil for men and #2 for women, and #3 overall in Latin America. Natura believes it is well placed given its quality (it points to research that shows its fragrances are ‘equally or more pleasant than international ones’), bring sustainable innovation (such as 100% organic alcohol and 20% recycled glass) and a distinctive olfactory palette that it believes is a point of difference (in 2016 it emphasized Allysun, Pataqueira, Pipers and Ishink). In an initial fragrance and beauty push Natura is focusing on Latam.
"Natura Day 2016", Natura, November 20, 2016, © Natura
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Procter & Gamble Outlines Its Way Forward

November 18, 2016: 12:00 AM EST
Procter & Gamble outlined its priorities at an Analyst Day. It has completed its massive brand sell-off, exiting around 100 brands, and its attention is now on growing its remaining brands and categories. It has been increasing spending on media and sampling, focusing on "reach and continuity", shifting to television shows with broader appeal and to “higher-reach digital platforms", and spreading its spending more evenly to maintain “top-of-mind awareness year round." P&G is also focused on continuing to improve productivity in marketing spend. The company also stated that the brands it retained are more skewed towards "daily use" categories driven by performance and technology, and the CEO reiterated his early-2016 pledge to look outside the company for talent more than it has in the past. 
Jack Neff, "P&G Just Unloaded 100 Brands. Now What?", Advertising Age, November 18, 2016, © Crain Communications
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Personal Care Product Ads For Men Often Fall Flat But Humor And Authenticity Can Work

November 17, 2016: 12:00 AM EST
Research from Mintel shows that getting the attention of US male consumers is especially hard with 35 percent of men who use personal care products saying they do not pay attention to ads. This figure rises to 48 percent of Baby Boomers. Men seem to tune out generic advertising and instead seem to notice ads that are humorous (one third of men who use personal care products say they prefer ads that are amusing) or authentic (this is especially true for millennial men, 25% of whom say they prefer ads that feature someone with whom they identify).  In a notable trend, men increasingly think that men in personal care ads are sexualized, with 18 percent of men who use personal care products indicating that men are as sexualized as women are in ads.
"One in five male personal care product users believe men are as sexualized as women are in ads", Mintel, November 17, 2016, © Mintel Group Ltd.
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Beauty And Personal Care Brands Recognized For Mobile Marketing Innovation

November 17, 2016: 12:00 AM EST
Beauty and personal care companies were among the list of those with campaigns presented with The Mobile Marketing Association’s 2016 Smarties awards. Silver in the Global – Mobile App category went to Unilever’s Dove brand for ‘Love Your Curls Emojis’. Sally Hanson, a Coty brand, won bronze in the same category for its ManiMatch app, a nail polish makeover tool. In the Latin America region, L’Oréal captured Programmatic category gold and Location-Based silver for its Ralph Lauren Polo Red Fragrances campaign for the travel retail channel.  
Deanna Utroske, "Beauty and personal care brands celebrated for mobile marketing innovation", Cosmetics Design, November 17, 2016, © William Reed Business Media SAS
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Estée Lauder Targets Millennials With Too Faced Deal

November 17, 2016: 12:00 AM EST
In mid-November 2016, Estée Lauder completed the acquisition of Becca Cosmetics and also announced its intention to acquire US company Too Faced, a fast-growing makeup brand that sells in specialty and online channels, for just under $1.5 billion. Too Faced, and Becca, will expand the company’s presence in color cosmetics targeting millennials. A note from Trefis listed some possible reasons for the Too Faced deal, including the observation that makeup is a key growth driver for Estée Lauder. With a CAGR of 60% in the last three years, Too Faced has also been growing strongly, its channels also provide Estée Lauder with alternative distribution options, and its appeal among millennials is also attractive. Estée Lauder also expects to extend the brand globally to maximize its growth potential.
"Here’s Why Estee Lauder Decided To Acquire Too Faced–the U.S. Based Fast Growing Makeup Brand", Trefis, November 17, 2016, © Insight Guru Inc.
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Facebook Outlines Mobile Beauty Shopping Behavior

November 17, 2016: 12:00 AM EST
A paper published by Facebook looks at how the beauty industry is using and being changed by mobile, and outlined seven key insights in a concluding “cheat sheet”. Its main takeaways included the observation that m-commerce is now mainstream and taking an increasing share of beauty and personal care purchases. It also noted how mobile is being used within physical stores to help consumers in their purchase decisions, and predicts that everyone will be mobile shoppers within 10 years. It found that shoppers are encouraged to pursue beauty purchases by content on Facebook and Instagram, but it also said that there’s more to do in mobile to make the shopping experience more convenient and frictionless. 
"Facebook Beauty Beyond ", Facebook, November 17, 2016, © Facebook
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L2 Highlights Possible Beauty Indie Brand Targets

November 16, 2016: 12:00 AM EST
In the wake of Estée Lauder’s announcement of its intention to acquire makeup company Too Faced, and L’Oréal’s acquisition of IT Cosmetics, the business intelligence company L2 highlighted some other beauty indie brands that might be acquisition targets. L2 noted that snapping up these indie brands has become a key element of some large beauty companies’ strategies, partly because of their different approaches to selling, their access to younger consumers, and their brand visibility. Other brands L2 believes might become targets include Anastasia, Tarte, e.l.f. and Makeup Geek.
Homa Zaryouni, "Predicting Beauty’s Next Indie Acquisition Targets", L2 Daily, November 16, 2016, © L2 Inc.
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Kenneth Cole Announces Plan To Close All US Stores

November 14, 2016: 12:00 AM EST
Retailer Kenneth Cole said it plans to close all of its 63 stores across the US and will instead focus on expanding its online and full-price retail businesses. In May 2016, the company launched the fragrance brand Mankind Hero and scent Blue, which were created under a licensing deal with Parlux. Kenneth Cole needs to focus its “energies and resources” on improving its ability to serve consumers on their terms, according to CEO Marc Schneider.
Lucy Tandon Copp, "Kenneth Cole to Close Entire US Outlet Division", Cosmetics Business, November 14, 2016, © HPCi Media Limited
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Estee Lauder Signs Deal To Buy Too Faced

November 14, 2016: 12:00 AM EST
Estee Lauder Companies Inc. said it has agreed to acquire makeup brand Too Faced. Founded in 1998 by cosmetics entrepreneurs Jerrod Blandino and Jeremy Johnson, Too Faced is expected to help Estee Lauder strengthen its leadership status in the fast-growing prestige makeup segment worldwide. One of the fastest-expanding cosmetics brands, Too Faced is forecast to reach $270 million in net sales in 2016.
"The Estee Lauder Companies to Acquire Too Faced", Estée Lauder, November 14, 2016, © The Estée Lauder Companies Inc.
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Estee Lauder Acquires Makeup Brand Becca

November 14, 2016: 12:00 AM EST
Estee Lauder Companies Inc. said it has acquired makeup brand BECCA. Established in 2001, BECCA offer complexion and color products designed to enhance the appearance of skin tones and improve women's features. During the past several years, BECCA has posted strong growth, driven by its focus on developing high-end and luxury products.
"The Estee Lauder Companies Completes Its Acquisition of Becca", Estée Lauder, November 14, 2016, © The Estée Lauder Companies Inc.
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Natura Announces Revamp Of France Operations

November 14, 2016: 12:00 AM EST
Natura said it is reorganizing its business operations in France. Aimed at ensuring the “sustainable growth” of its brand in the country, the revamp also supports the company's adoption of an international strategy for developed markets. According to the company, the strategy focuses on three key channels: company-owned stores, e-commerce, and beauty specialists. Made based on the purchasing habits of local consumers, the decision covers only the French market, the company said.
"Natura restructures its business in France", Natura, November 14, 2016, © Natura
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Shiseido Travel Retail Opens Global Design Center In Singapore

November 11, 2016: 12:00 AM EST
Shiseido Travel Retail opened the company's Global Design Center at its Singapore headquarters. Introduced on October 1, 2016, the design center is created to meet the company's design and creative requirements in-house. It will focus on retail design & project management, visual merchandising, and creative studio.
Martin Moodie, "‘Praise the virtues of the Earth’ – Shiseido Travel Retail unveils Global Design Centre", The Moodie Davitt Report, November 11, 2016, © The Moodie Davitt Report
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Shiseido Sets Sights On Becoming A Global Fragrance Leader

November 9, 2016: 12:00 AM EST
President and CEO Shiseido Group EMEA Louis Desazars laid out plans for Shiseido to become one of the top five prestige players in EMEA and a top ten global player. Specifically, the company aims to boost its global market share in fragrance from 5.8% to 9% within five years. Desazars said “The ambition is to grow this major business and more than double it to reach €1 billion in the next ten years and enter the global fragrance top ten.” From January 1, 2017 Shiseido’s Paris-based Beauté Prestige International (BPI) will be phased out as a corporate brand to make way for the group’s new Global Fragrance Centre of Excellence.  Seeking to become a major fragrance player is a bold move for a Japanese corporation where companies have traditionally focused on skincare and cosmetics.  Of special focus will be the Dolce & Gabbana that Shiseido plans to leverage with a key priority being boosting brand visibility in stores. 
Clare Austin, "Interview: Shiseido on the scent of becoming a global fragrance player", The Moodie Davitt Report, November 09, 2016, © The Moodie Davitt Report
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Henkel Reports Strong Sales Growth In 3Q 2016

November 8, 2016: 12:00 AM EST
Henkel reported sales grew 3.4 percent to €4.748 billion in the third quarter of 2016, compared with the same period in the previous year. Organic sales rose 2.8 percent, with EBIT improving by 0.7 percentage points to 17.6 percent. According to the company, its Laundry & Home Care business posted organic sales growth of 4.0 percent, driven by volume increases. Also, its Beauty Care business unit reported sales expanded by 2.6 percent during the period.
"Henkel Quarterly Report Q3/2016", Henkel, November 08, 2016, © Henkel AG & Co. KGaA
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Revlon Posts Strong Sales Gains In 3Q 2016

November 4, 2016: 12:00 AM EST
Beauty brand Revlon, Inc., reported net sales jumped 28.3 percent to $604.8 million in the third quarter of 2016, compared with the same period in the previous year. On a pro forma basis, total net sales increased 1.0 percent to $745.1 million, compared with the previous year. As reported net loss was $4.7 million, while pro forma net loss was $0.5 million. Total adjusted EBITDA was $113.4 million, an increase of 34.8 percent from the previous-year quarter.
"Revlon Reports Third Quarter 2016 Results", Revlon, November 04, 2016, © Revlon Consumer Products Corporation
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Natura Is 19th-Largest Company, Beauty Packaging Magazine Says

November 3, 2016: 12:00 AM EST
Natura was ranked number 19 on the Beauty Packaging’s Top 20 Companies list for 2016. In 2014, the beauty company’s net revenue dropped to $2 billion, hampered by Brazil’s higher taxes and currency devaluation. Also, the country’s cosmetics, fragrances, and toiletries market contracted by 6 percent. In 2015, overseas operations accounted for almost 30 percent of the company’s net revenue, with international operations growing 47 percent in the last five years.
"Natura is Number 19 at Beauty Packaging Magazine’s Top 20 Companies List", Beauty Packaging , November 03, 2016, © Rodman Media
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Beiersdorf Reports Sales Gains In First 9 Months Of 2016

November 3, 2016: 12:00 AM EST
Beiersdorf reported organic group sales for the first nine months of 2016 grew 2.9 percent to €5.032 billion, while nominal sales declined 0.1 percent to €5.035 billion. Consumer business posted a 3.2 percent growth in organic sales during the period, while nominal sales rose 0.1 percent from €4.172 billion to €4.177 billion. Sales of Nivea skincare products increased 3.6 percent year on year, while Eucerin sales rose 2.9 percent.
"Beiersdorf's (BDRFF) CEO Stefan Heidenreich on Q3 2016 Results - Earnings Call Transcript", Seeking Alpha, November 03, 2016, © Seeking Alpha
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Dr. Hauschka Skin Care Names New CEO

November 2, 2016: 12:00 AM EST
Natural beauty brand Dr. Hauschka Skin Care, Inc., named Martina Joseph as the company's new CEO. With more than 20 years of professional experience in the natural beauty market, Joseph was previously general manager for Bliss North America. Before that, she was head of North American marketing, sales, and education for Carol's Daughter, Jurlique and Nude Skincare.
"Dr. Hauschka Skin Care, Inc. Welcomes New CEO Martina Joseph", PR Newswire, November 02, 2016, © PR Newswire Association LLC
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New and Established Indie Brands Are Driving Growth In Beauty

November 2, 2016: 12:00 AM EST
The indie beauty industry is thriving, driven by 90s brands like Urban Decay that are becoming mainstream, as well as emerging brands focused on specific areas and needs, all fueled by social media. A June report from Tribe Dynamics stated that independent brands saw double-digit growth between 2009 and 2014, over four times the pace of the cosmetics market as a whole. Big beauty companies, like L’Oreal, and other large companies with ambitions in beauty, like Unilever, are also snapping up indie brands, but there are concerns about whether these new parents will retain the brands’ independence. The Internet is intensifying customer empowerment, with the younger generations particularly skeptical of advertising claims and more willing to accept influencer opinions and reviews. In return, the brands are improving transparency and communication. The Internet is also allowing brands to sell without retailer accounts, by launching direct-to-consumer platforms and leading engagement online. Tribe Dynamics highlights Anastasia Beverly Hills as the fastest growing brand with over $10 million in sales annually. It engages regularly with over 400 influencers and is in top spot at Instagram with more than 11.5 million followers. Retailers are realizing the indie brands’ appeal, with Sephora, for example, rolling out its indie brand distribution platform, Scouted by Sephora, in 2015.
Belisa Silva, "Indie Brands Lead Beauty Industry Growth", Beauty Packaging, November 02, 2016, © Rodman Media
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Iran Is Middle East's Second-Largest Beauty Market, Reports Show

November 2, 2016: 12:00 AM EST
Iran accounts for $2.1 billion of the Middle East market's beauty products market valued at $7.2 billion, according to data from the Iranian Association of Cosmetics, Toiletries and Perfumery Importers. There are 15 million consumers for beauty products in the country, which means each consumer spends $140 on cosmetics each year. Data also revealed Iranians spend 4.5 percent of their annual income on beauty products, three times more than European consumers who spend $99 on cosmetics per year.
"Iranians Spend $2.1b on Beauty Products Annually", Financial Tribune Daily, November 02, 2016, © Financial Tribune Daily and contributors
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Strong Growth Forecast For Global Perfume Market, Report Says

November 2, 2016: 12:00 AM EST
By the end of 2016, the world market for perfumes is forecast to grow to $39.67 billion, according to Future Market Insights. Data from the market research firm's report, “Perfumes Market: Global Industry Analysis and Opportunity Assessment, 2016-2026,” revealed the global perfume market will expand at a CAGR of 5.9 percent in 2016‒2026, driven in part by growing demand from millennial consumers. Also, growth in the fragrance segment has been driven by expansions in online retail business and marketing efforts of market leaders, such as Estee Lauder, LVMH, and Coty. Demand for fragrances is also benefiting from consumers' willingness to spend on luxury personal care products.
Jen King, "Physical retail to continue global perfumes’ market domination: report", Luxury Daily, November 02, 2016, © Napean LLC
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Prestige Beauty Market Expands 8 Percent In 3Q 2016, NPD Says

October 31, 2016: 12:00 AM EST
In the US, sales of prestige beauty products grew 8 percent to $3.5 billion in the third quarter of 2016, compared with the same period in the previous year, according to NPD. Data from the market research firm revealed color cosmetics continued to drive the segment's sales growth during the period. Sales of eyebrow makeup grew 37 percent, while lip color sales jumped 21 percent. Sales of nail beauty products, however, fell 17 percent. Sales of skincare products rose 5 percent to $1.1 billion, while sun products jumped 16 percent.
"NPD: Q3 Prestige Beauty Sales +8%", Cosmetic Executive Women, October 31, 2016, © Cosmetic Executive Women
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Men Outspend Women On Facial Skincare Products In India

October 21, 2016: 12:00 AM EST
In India, men spend almost 10 percent more on body washes and 7 percent more on face washes and scrubs than women do every month, according to the report, “Target Group Index,” by IMRB International. Men from the 18‒24 age group spend around 15 percent more on moisturizers and 6 percent more on conditioners, compared with women from the same age group. Data from Euromonitor International revealed men's grooming accounts for only 10 percent of the overall beauty market in the country; however, it is growing faster at 20‒25 percent. From the current $600 million, the market is forecast to grow to more than $1 billion by 2020, according to Argus CMPO CEO Hema Aushat.
Sapna Agarwal, "Guess who’s driving the face wash market in India?", Livemint, October 21, 2016, © HT Media Ltd.
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L'Oreal Paris Opens First Boutique In France

October 20, 2016: 12:00 AM EST
L’Oreal Paris opened its first boutique in France during the 2016 Paris Fashion Week. Located under a trompe l’oeil Eiffel Tower, the L’Oreal Makeup Designer/Paris boutique features more than 600 products, 150 of which are store exclusives. Also, every month, the store will highlight a limited-edition makeup collection from makeup designer Karim Rahman. Consumers can test the products and virtually try them using the Makeup Genius augmented reality app.
"L'Oreal Paris introduces its First Boutique", L'Oreal , October 20, 2016, © L’Oréal
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Shiseido Works With Microsoft To Create Virtual Makeup App

October 20, 2016: 12:00 AM EST
Shiseido partnered with Microsoft to create Telebeauty, a software designed to apply virtual makeup to a user's video image while taking part in a teleconference. Women using the app can choose from four palettes, natural, trend, cool, and pretty, before joining the teleconference call. Designed to distinguish between the user's face and the background, Telebeauty scans the user's face and adjusts the skin tone, and covers pores, dark spots, and pimples with a “digital beauty balm.”
Lila MacLellan, "Shiseido partnered with Microsoft to create a make-up filter for women who telecommute", Quartz, October 20, 2016, © The Atlantic Monthly Group, Inc.
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The Body Shop Opens First Pop-Up Store In Canada

October 20, 2016: 12:00 AM EST
Beauty retailer The Body Shop opened a pop-up store in Toronto’s Yorkville neighborhood, the company’s first in Canada. Designed for testing new installations and activations and promote holiday gifts, the store features iPad tablets that display videos highlighting the retailer’s Bio Bridges rainforest awareness program. Also, the store includes an installation for Body Butter products that tells stories about the company’s partnerships with community-based suppliers of shea nuts and other materials.
Rebecca Harris , "The Body Shop pops up in Yorkville", Marketingmag, October 20, 2016, © Rogers Media Inc.
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BEAUTY BUSINESS
Marketing
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Retail
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Worldwide
North America
Canada

Johnson & Johnson Posts Strong Sales Growth In 3Q 2016

October 18, 2016: 12:00 AM EST
Johnson & Johnson reported sales grew 4.2 percent to $17.8 billion in the third quarter of 2016, compared with the same quarter of the previous year. Operational sales results rose 4.3 percent, with the negative impact of currency at 0.1 percent, the company said. Sales in the US jumped 6.7 percent, while international sales increased 1.5 percent, showing operational growth of 1.7 percent and negative currency impact at 0.2 percent. Venezuela operations adversely affected global operational sales growth by 30 basis points and international sales growth by 70 basis points.
"Johnson & Johnson Reports 2016 Third-Quarter Results", Johnson & Johnson, October 18, 2016, © Johnson & Johnson Services, Inc.
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Revlon Enlists Ciara As Brand Ambassador

October 18, 2016: 12:00 AM EST
Beauty brand Revlon named singer, model, and actress Ciara as its latest brand ambassador. Named after a Revlon fragrance introduced in 1973, Ciara brings with her almost 14 million Instagram followers. Looking back at her childhood and early family life, Ciara could almost say that her coming to Revlon was a matter of fate.
Allison Collins , "Revlon Lands Ciara as Latest Celebrity Ambassador", WWD, October 18, 2016, © Fairchild Fashion Media
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Coty Closes In On Acquiring Haircare Company GHD

October 16, 2016: 12:00 AM EST
Coty is close to acquiring UK-based haircare products manufacturer GHD. There are no details on how much Coty plans to pay for GHD; however, according to a company that tried unsuccessfully to buy the company earlier, it is likely to be much higher than ₤400 million. Private equity firm Lion Capital put up GHD for sale earlier in 2016, with a number of cross-border merger and acquisition deals having been made following the drop in sterling's value after the UK's vote to leave the EU.
Mark Kleinman, "US beauty giant Coty to swoop on £400m GHD", Sky News, October 16, 2016, © Sky UK
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Henkel's Krefeld Fragrance Center Continues Decades-Long Passion For Scents

October 14, 2016: 12:00 AM EST
Henkel's Fragrance Center in Krefeld is one of the three largest manufacturers of perfume oil in Germany. Established in 1956, the company's in-house fragrance factory produces about 10,000 tons of perfume oil each year. Henkel's perfumers use more than 1,000 natural and synthetic substances to create scents for laundry detergents, cleaning products, soaps, and shampoos.
"A 60-year-old passion for perfume", Henkel, October 14, 2016, © Henkel Corporation
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Ulta Widens Expansion Plans, Announces Plan To Open 1,400‒1,700 Stores In US

October 13, 2016: 12:00 AM EST
Beauty retailer Ulta Salon Cosmetics & Fragrance Inc. announced plans to expand its store network by opening 1,400‒1,700 locations from its current 900. Significantly higher than the company's previously announced plan to have 1,200 stores in the US by 2019, the planned expansion is in line with Ulta CEO Mary Dillon's aim of doubling market share in the next several years. Also, the company aims to increase online sales to $1 billion, with Ulta raising its revenue forecasts for the year.
Khadeeja Safdar , "Ulta Bucks Retail Trend, Plans New Stores, Lifts Outlook", Wall Street Journal , October 13, 2016, © Dow Jones & Company, Inc.
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Coty Names Ukonwa Ojo Global SVP For CoverGirl Brand

October 13, 2016: 12:00 AM EST
Coty appointed Ukonwa Ojo, former senior global director for Unilever's Knorr brand, as global senior vice-president of the beauty company's CoverGirl brand. Ojo will manage CoverGirl's strategy, innovation, advertising, and communication.
"Ukonwa Ojo leaves Unilever for CoverGirl role", Campaign Live, October 13, 2016, © Haymarket Media Group Ltd.
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Ulta Plans To Expand Store Network To Double Market Share

October 13, 2016: 12:00 AM EST
Beauty retailer Ulta aims to expand its market share in the next several years by opening new stores, growing its online business, and improving store productivity. Company CEO Mary Dillon said she expects Ulta to double its share of the $127 billion beauty market in the US from the current 4 percent. At the company's latest analyst and investor day, Ulta adjusted comparable-store sales growth forecast for 2017 to 2019 from 5‒7 percent to 7‒9 percent. Also, the company raised its same-store sales growth outlook from 11‒13 percent to 14‒15 percent.
Abigail Stevenson, "Ulta Beauty CEO Wants to Double Market Share", CNBC, October 13, 2016, © CNBC LLC
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Women Consult Brand Websites First Before Other Digital Platforms, Study Reveals

October 12, 2016: 12:00 AM EST
Consumers get information about beauty products from brands' websites before visiting beauty bloggers' sites or viewing instructional videos on YouTube, according to research by Imogen Matthews Associates. IMA said although millennial women are regular users of YouTube, which accounts for 1.3 billion views of beauty-related videos, they get beauty information from a variety of channels. Conducted through One Poll, the study surveyed 1,000 women worldwide in an attempt to determine the implications of omnichannel marketing for the beauty industry.
Lucy Whitehouse , "Consumers still favour beauty brand websites over other digital content", Cosmetics Design , October 12, 2016, © William Reed Business Media SAS
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Beauty Architects Launches Masqueology Line Of Skincare Face Masks In US

October 12, 2016: 12:00 AM EST
South Korea-based Beauty Architects launched its Masqueology line of skincare face masks in the US. Aimed at the affordable segment of the market, Masqueology face masks are available in 3,000 Walmart stores across the country and online. Beauty Architects said it plans to expand into the body and hair care markets. Also, the company plans to launche a line of deep treatment hair masks with treated ingredients to moisturize the hair, create volume, and repair damaged hair.
Natasha Spencer, "South Korea innovates global face mask market", Cosmetics Design , October 12, 2016, © William Reed Business Media SAS
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China Lowers Taxes On Imported Beauty Products

October 11, 2016: 12:00 AM EST
China cut the country's consumption tax on imported beauty products. Effective at the start of October 2016, the total effective tax rate, which includes the import tariff, VAT, and consumption tax, will be lowered from the current 84 percent to 29 percent for most cosmetics and 51 percent for luxury beauty brands. Aimed at encouraging Chinese consumers to spend more on local stores instead of leaving the country to shop, the new rules, however, include unchanged tax rates for skincare products and higher rates for premium skincare brands from zero tax to 15 percent.
Julia Hollingsworth, "Cuts in make-up tax beautiful in the eyes of US and European brands", South China Morning Post, October 11, 2016, © South China Morning Post Publishers Ltd.
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Shiseido Wants To Be A Top 5 Perfume Company In 5 Years

October 7, 2016: 12:00 AM EST
Shiseido wants to become one of the world's top 5 perfume companies in five years. By securing a licensing deal for Procter & Gamble's Dolce & Gabbana perfume, Shiseido has compensated for its loss earlier of the Jean-Paul Gaultier perfume license. According to Shiseido, the Dolce & Gabbana has helped it to double its market share from 2.2 percent to 5.8 percent. Shiseido said it aims to grow its market share to 9 percent in five years.
Astrid Wendlandt , "Japan's Shiseido aims to become a top five perfume maker", Reuters, October 07, 2016, © Reuters
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FMCG Marketers Are Catching On To The Power Of Facebook’s Resources

October 7, 2016: 12:00 AM EST
Facebook not only offers FMCG marketers a treasure trove of online customer data, it offers targeted ad solutions and insight tools for a wide range of products. Big FMCG marketers like Procter & Gamble, Reckitt Benckiser and L'Oreal have made use of Facebook’s resources to boost sales of products like razors, condoms, and hair removal cream. Reckitt used Facebook to target Indian men with cricket-themed condom ads. Last March, Facebook worked with Nielsen on a month-long test in two Indian cities for a L'Oreal acne wash. Media ads were shown in both cities, but only one (Kolkata) saw Facebook mobile ads targeting 18- to 34-year-olds. Sales of the product in Kolkata more than doubled.
Anumeha Chaturvedi, "Marketers find a gold mine in Facebook’s data trove", Economic Times, October 07, 2016, © Bennett, Coleman & Co. Ltd.
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Revlon Australasia Awards Creative Account To Reborn

October 6, 2016: 12:00 AM EST
Revlon Australasia moved its creative account from GPY&R to Reborn as part of the company’s efforts to create a digital-first approach to advertising and marketing in 2017. Part of Reborn’s responsibilities is working with the company’s other brands, including Mitchum and Colorsilk. Reborn will collaborate with Revlon’s marketing teams for the Australia and New Zealand markets.
Lindsay Bennett, "Revlon hands creative to Reborn, drops GPY&R", AdNews, October 06, 2016, © AdNews
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Beauty Boost's FragranceLock Makes Perfume Last Longer

October 5, 2016: 12:00 AM EST
Beauty Boost Inc. worked with CosPro Inc. to develop FragranceLock, a spray formulated with acrylate copolymers and oils to help perfume retain its fragrance longer. Beauty Boost president and co-founder Francine Gingras said the fragrance segment needs innovation to survive and remain relevant, claiming FragranceLock, her company's first product, is one example of such creativity. Companies need to keep themselves abreast with changes in consumer needs in order to come up with products that address the whitespace in fragrance, cosmetics, and personal care markets, Gingras said.
Deanna Utroske, "FragranceLock: A Beauty Innovation that Promises to Bolster Perfume—the Product and the Category", CosmeticsDesign.com | USA, October 05, 2016, © William Reed Business Media SAS
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Long-Time L’Oréal Exec Karen Fondu Retires

October 4, 2016: 12:00 AM EST
Karen Fondu, president of L’Oréal Paris USA, announced her retirement after 37 years with the company. The company said Fondu started at L’Oréal as a sales representative, went on to key account manager and then mid-Atlantic district manager, West Coast regional manager and then vice president of sales of the cosmetics division, She became president of L’Oréal Paris USA in 2008. Former P&G executive Ikdeep Singh will replace Fondu as general manager when her retirement takes effect at the end of the year.
"L'Oreal USA Announces Retirement of Karen Fondu, President of L'Oreal Paris USA", News release, L'Oréal, October 04, 2016, © L'Oréal
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Gender-Free Fragrances Becoming Mainstream, Market Observers Say

October 3, 2016: 12:00 AM EST
Gender-neutral fragrances are becoming more popular, as younger consumers continue moving away from conventional “sexist messaging” previously used by marketers. With 950 out of 1,000 new niche launches aimed at no particular gender, the growing trend owes its existence to Calvin Klein's launch of the unisex fragrance CK1 in the 1990s. Strengthened by Hollywood in the 19th and 20th centuries, marketing strategies for promoting women's and men's fragrances would be considered offensive today, according to market executives, such as perfumer Ben Krigler and PHLUR CEO and president Eric Korman. Some of the popular gender-free fragrances today include Atelier Cologne, Jo Malone London, and Ex Nihilo.
Beth Landman, "Gender-Neutral Fragrances are Next Wave of Gender Identity Politics", The Hollywood Reporter, October 03, 2016, © The Hollywood Reporter
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