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Time Is Ripe For Acquisitions For Estee Lauder, Market Analysts Say

March 24, 2014: 12:00 AM EST
Cosmetics company Estee Lauder is expected to acquire a personal care brand, such as anti-aging and acne products manufacturer Murad Inc. or supplements and serums seller Perricone MD, according to market observers. Royal Bank of Canada and Telsey Advisory Group said the company has enough financial muscle to pull off a significant acquisition deal, with its cash balance almost doubled during the past four years. Market analyst B. Riley & Co. said Estee Lauder could also be poised to buy nail-care company Butter London. Known for expanding its business by purchasing smaller brands, such as Smashbox and Aveda Corp, Estee Lauder said it intends to source 1 percent of total sales growth from acquired companies in the next three years.
Laura Lorenzetti , "Estee Lauder Poised to Shop After Deal Drought: Real M&A", Bloomberg, March 24, 2014, © Bloomberg L.P.
Domains
BEAUTY BUSINESS
Market News
Operations
Strategy
Geographies
Worldwide
North America
United States of America

U.S. Personal Care Market Grows Despite Hard Economic Conditions

March 19, 2014: 12:00 AM EST
Sales of cosmetics and toiletries in the U.S. rose 2.4 percent to over $41 billion at the manufacturers’ level, compared with 2012. Strong sales in the makeup and skin care categories helped push the market to its fourth consecutive year of revenue growth. Facial cosmetics and lipstick and lip glosses were the main sales drivers for the cosmetics segment; however, the lack of innovations has adversely affected growth. Also, private label products had a negative impact on sales of their branded counterparts, offering consumers less expensive but high-quality options. Sales of skin care products, however, slowed down during the year. Hand and body lotions and skin care products for men helped prevent sales from falling more drastically.
"Rough Road Ahead, but U.S. Personal Care Sales March Onwards", Kline Blogs, March 19, 2014, © Kline
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BEAUTY BUSINESS
Market News
Geographies
Worldwide
North America
United States of America

Unilever Says Sales Declined in 2013

March 7, 2014: 12:00 AM EST
Unilever reported turnover declined 3 percent to €49.8 billion in 2013, compared with the previous year. Impact of foreign exchange on the company’s revenue performance was a negative 5.9 percent, Unilever said, while net acquisitions and disposals also had a negative 1.1 percent effect. Underlying sales grew 4.3 percent during the period, while gross margin rose 1.1 percentage points due to improved mix, margin accretive innovations, and savings, the company added. Also, the company said emerging markets now account for 57 percent of the company’s business, with underlying sales growing 8.7 percent. Underlying sales in developed markets, however, had a negative growth rate of 1.3 percent, with Europe dropping 1.1 percent and North America by 1.5 percent.
"Unilever Annual report & accounts 2013", Unilever, March 07, 2014, © Unilever
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BEAUTY BUSINESS
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Strategy
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Worldwide
North America
EMEA
United States of America
Europe
United Kingdom

Older Celebrities Ride The Beauty Product Marketing Wave Targeting An Aging Generation

March 6, 2014: 12:00 AM EST
Senior celebrity women are regularly recruited these days to pitch beauty products targeting older women seeking to hold onto their youth. It’s a growing and lucrative market. In Canada, for example, the 65-and-older population will rise from 14 percent to 25 percent over the next 20 years. There are more consumers aged 55 to 64 than there are 15 to 24, and most have more discretionary income. So older celebrities are out there pitching brands such as MAC (Iris Apfel), Louis Vuitton (Catherine Deneuve), Lanvin (Jacqueline Murdock), Vielma (Jenni Rhodes), Lucky Brand (Lauren Hutton), etc,
Misty Harris , "In praise of older women: Beauty brands shift focus", Windsor Star (Ontario), March 06, 2014, © Postmedia Network Inc./Windsor Star
Domains
BEAUTY BUSINESS
Advertising
Brands
Consumers
Marketing
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Geographies
Worldwide
North America
Canada

Market Researcher Identifies Western Hemisphere Beauty Trends

March 5, 2014: 12:00 AM EST
Euromonitor has released an e-book that highlights the top beauty trends in North and South America. In Brazil and Mexico, for example, beauty and blemish (BB) creams are increasing in popularity. The creams tend to be more expensive, but consumers see them as multi-functional, and therefore cheaper than buying separate items. Other trends: nail products remain popular in Argentina and the Dominican Republic. In fact, in Argentina nail color is more popular than lipstick as a “guilty indulgence”. Skin care – especially anti-aging solutions – in Chile is getting a boost from new product development and technology advances. Direct selling of skincare products in Ecuador is a growing trend.
"Top Five Beauty and Personal Care Trends by Country in North and South America", E-book, Euromonitor International, March 05, 2014, © Euromonitor International
Domains
BEAUTY BUSINESS
Consumers
Market News
Research
Trends
Geographies
Worldwide
North America
Latin America
Brazil
Argentina
Ecuador

Braun Recruits Jessica Alba As Beauty Brand Ambassador

March 4, 2014: 12:00 AM EST
Procter & Gamble’s beauty brand Braun signed actress Jessica Alba as its celebrity endorser. As part of the endorsement deal, Alba will appear in an integrated campaign for Braun, which will run across TV, print, and online channels starting in March 2014. According to Braun, the company wants to help every woman grow in confidence that “comes with feeling beautiful.” Alba will help the brand communicate this message, Braun said.
"Jessica Alba Announced as Braun's New Beauty Brand Ambassador", Business Wire, March 04, 2014, © Business Wire
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Europe
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L Oreal's Focus On New Product R&D, Building The Beauty Infrastructure In India, Is Paying Off

February 28, 2014: 12:00 AM EST
L’Oreal has spent years paying attention to new product development at the same time that it strengthens the infrastructure of the beauty business in India. The “ground level strategy” strategy is paying off. The company is now the sales leader after helping to upgrade salons – turning some into nationwide chains – and establishing 50 academies, annually training 150,000 hairdressers. Meanwhile, L’Oreal’s product R&D effort has led, for example, to creation of the hugely successful Garnier Color Naturals line, inexpensive creme hair dyes for the Indian market that can be stored after opening. The company promises that the future will bring more innovation to the market, some "breakthrough announcements” of "totally new formulations” in the next two years, according to managing director Jean-Christophe Letellier, solidifying its leadership position.
Dibeyendu Ganguly, "L'Oreal builds Indian business painstakingly; now ready for the big leap", The Economic Times, February 28, 2014, © Times Internet Limited
Domains
BEAUTY BUSINESS
Brands
Innovation
Marketing
Strategy
Geographies
Worldwide
Asia-Pacific
India

“Beauty Junkies” Shun Loyalty To Brands, Love To Experiment With Cosmetics

February 27, 2014: 12:00 AM EST
Many of today’s cosmetics consumers have become “beauty junkies” who love applying makeup, shun loyalty to one brand, and spend a lot of money – frequently – on a variety of brands. They  watch hours of beauty tutorials on YouTube, then take to the retail beauty aisles to hunt for products to experiment with. They’re more than happy to mix brands across price ranges and layer several products to achieve a specific look, a practice known as “cocktailing” in the $12 billion beauty industry. One of the biggest benefactors – perhaps creators – of the trend is Sephora, a retail  chain whose stores carry more than 200 brands. An "open sell" atmosphere puts prestige cosmetics into shoppers' hands, allowing for more testing and buying across a range of brands – the perfect environment for “beauty junkies”.
Elizabeth Holmes, "Cosmetics 'Cocktailing' is the Way Consumers Achieve Customized Shades", The Wall Street Journal, February 27, 2014, © Dow Jones & Company, Inc.
Domains
BEAUTY BUSINESS
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Online
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United States of America
Canada

P&G Partners With Singapore For Personal Care, Beauty Product Research

February 26, 2014: 12:00 AM EST
As sales growth in beauty and personal care products flatten in North America, P&G is ramping up its marketing efforts in Latin America and the Asia Pacific region. The company in January signed a five-year partnership agreement with Singapore's Agency for Science, Technology and Research (A*STAR) that will couple P&G with more than 25 research institutes, hospitals and universities. The collaboration, one of P&G's largest public-sector research relationships, has the potential for S$60 million ($47 million) in joint funding. P&G recently opened an R&D facility in Singapore, hoping to develop technologies and ingredients for hair care products and cosmetics tailored to Asian consumers. L'Oreal opened a similar facility last year in Singapore to conduct skin-related research.
Andrew McDougall, "P&G focus on Southeast Asia in hopes to boost performance", Cosmetics Design – Asia, February 26, 2014, © William Reed Business Media SAS
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BEAUTY BUSINESS
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Japan
Singapore

Premium Beauty Companies Are Not Doing Enough To Attract Older Females

February 25, 2014: 12:00 AM EST
Premium beauty market consultant Imogen Matthews says the older female beauty market in the U.K. remains largely untapped by beauty  product companies. Women over 45 account for £1.9 billion ($3.2 billion) worth of product sales in cosmetics and toiletries, particularly skin care, body care and hand care. About half of all sales of those products are to older consumers, “and yet, there doesn’t seem to be an awful lot of targeting by the brands and the retailers toward this group”, she says. Ads and store displays feature younger women, which is a turn-off for the 45+ market. The secrets of success include some relatively small changes: ensuring that older women can talk peer-to-peer with sales people, and having a chair available when a customer speaks to a consultant.
Imogen Matthews , "Tapping Into the Potential of Older Beauty Consumers", GCI Magazine, February 25, 2014, © Allured Business Media
Domains
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Advertising
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Europe
United Kingdom

Premium Fekkai Hair Care Products Now Distributed To Broader Market

February 25, 2014: 12:00 AM EST
Hairstylist to the stars Frederick Fekkai introduced his luxury hair product line in 1995 when he realized that his Chanel-wearing customers did not have a hair care product equivalent to their $300 face creams. P&G bought the company in 2008 and split it into two units, one targeting the mass market and one the upscale market. Last month, the product line devolved back into one 27-piece collection based on the Advanced formulations, but with lower pricing and broader distribution. Fekkai denies he is “pimping out” his products by making them available at Walgreen’s and Costco. But he acknowledges he is considering lowering the prices for his signature ($750) hair cutting services. “Nothing is planned yet,” he says, “but why not?”
Ingrid Schmidt, "Frederic Fekkai brings A-list hair care to the rest of us", Los Angeles Times, February 25, 2014, © The Los Angeles Times Company
Domains
BEAUTY BUSINESS
Brands
Marketing
Products & Pricing
Geographies
Worldwide
North America
United States of America

CPG Companies Devote More Of Their Ad Budgets To Digital As ROI Rises

February 24, 2014: 12:00 AM EST
Digital ad spending either has surpassed or soon will surpass magazines among CPG companies, according to a report on a recent executive conference. It has a ways to go before it eclipses No. 1 TV spending, though that may be nearer for many companies than one might expect. Procter & Gamble and Mondelez now spend about a quarter of their U.S. media budgets on digital and will spend even more if the ROI continues to improve. A Mondelez executive said the company wants at least half of its ad spend allocated to digital within two years because the ROI is twice that of other media. A P&G exec said the company is boosting digital ad spending to help decrease  the proportion of sales spent on advertising while maintaining effectiveness.
Jack Neff, "Why Digital Is Grabbing a Bigger Share of Consumer Product Budgets", Advertising Age, February 24, 2014, © Crain Communications
Domains
BEAUTY BUSINESS
Market News
Marketing
Trends
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Worldwide
North America
United States of America

Givaudan Buys French Cosmetics Ingredients Firm Soliance

February 21, 2014: 12:00 AM EST
Givaudan SA said it is in exclusive negotiations to acquire French cosmetics ingredients manufacturer Soliance SA, currently owned by private research institute Agro-Industrie Recherches & Développements. Soliance uses vegetables, microorganisms, and micro-algae to manufacture materials that are used include cosmetics, such as self-tanning lotions and skincare creams. Expected to close in the second quarter, the purchase deal is to be financed by Givaudan using cash on hand.
John Revill, "Givaudan in Talks to Buy Soliance", Wall Street Journal, February 21, 2014, © Dow Jones & Co., Inc.
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BEAUTY BUSINESS
Operations
Strategy
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EMEA
Europe
France
Switzerland

Henkel Posts Slightly Higher Revenue In 2013

February 20, 2014: 12:00 AM EST
Henkel Group reported revenue grew 3.5 percent to €16.355 billion in 2013, compared with 2012. Affected by exchange rates developments, nominal growth was slightly negative, the company said. Adjusted earnings before interest rates and taxes grew 7.8 percent to €2.516 billion, compared with €2.335 billion in 2012. Also, adjusted return on sales rose to 15.4 percent from 14.1 percent in 2012, while adjusted earnings per preferred share grew 10.0 percent to €4.07. Cash flow from operating activities reached €2.116 billion by end of 2013, turning net debt of €85 million at the end of 2012 into a net positive €959 million by end of 2013. Henkel said its top 10 brands, including Persil, Schwarzkopf, and Loctite, accounted for 57 percent of total sales during the period.
"Henkel 2013 Annual Report", Henkel, February 20, 2014, © Henkel AG & Co. KGaA
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BEAUTY BUSINESS
Brands
Operations
Strategy
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Worldwide
EMEA
Europe
Germany

Ad Spend In The Philippines Totaled $7.6 billion In 2013, Mostly On TV

February 20, 2014: 12:00 AM EST
Advertisers in the Philippines spent Php264.3 billion ($5.9 billion) on TV ads in 2013, about 78 percent of the total ad spend in the country. Radio and print spending were dwarfed in comparison. Unilever Philippines was the biggest ad spender in the country in 2012, followed by FMCG giants Procter & Gamble, Colgate-Palmolive and Nestle. Detergents and hair shampoo brands were the biggest spenders among product categories. The total Philippines ad spend was about Php340 billion ($7.6 billion) last year.
Oliver Bayani, "PH 2013 ad spend reaches P340 Billion", Marketing Interactive, February 20, 2014, © Marketing-Interactive.com. Lighthouse Independent Media Pte Ltd
Domains
BEAUTY BUSINESS
Advertising
Market News
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Worldwide
Asia-Pacific
Philippines

L'Oreal Paris Signs Up Ryan Reynolds As Brand Spokesperson

February 18, 2014: 12:00 AM EST
Beauty care brand L’Oreal Paris appointed actor Ryan Reynolds as endorser of its L’Oreal Paris Men Expert range of men’s grooming products. As part of the marketing campaign, Reynolds posed in a series of photographs promoting the product line, which includes moisturizers, exfoliators, and facial scrubs. Reynolds’ wife, actress Blake Lively, is also an endorser of the L’Oreal Paris cosmetics brand.
Emily Popp , "Ryan Reynolds Named Spokesmodel for L'Oreal Paris, Joins Wife Blake Lively as Face of Brand", eonline.com, February 18, 2014, © E! Entertainment Television, LLC
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BEAUTY BUSINESS
Brands
Marketing
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North America
United States of America

Coty Says Net Revenue Falls In December 2013 Quarter

February 14, 2014: 12:00 AM EST
Beauty brand Coty Inc. reported net revenue decreased 4 percent to $1.323 billion in the fiscal second quarter ending December 31, 2013, compared with the same period of the previous year. Adjusted operating income dropped from $220.7 million to $183.3 million, while adjusted net income decreased from $127.1 million to $111.3 million, the company said. Also, adjusted earnings per diluted share dropped from $0.32 to $0.28, while net cash from operating activities decreased by $9.7 million from $355.8 million to $346.1 million, the company added. For the half year, net revenue decreased 3 percent like-for-like and 4 percent as reported to $2.501 billion, while adjusted operating income declined from $423.7 million to $369.4 million, compared with the same period of the previous year. Adjusted net income decreased from $244.9 million to $219.6 million, the company said.
"Coty Inc. Reports Second Quarter Fiscal 2014 Results", Coty, February 14, 2014, © Coty Inc.
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BEAUTY BUSINESS
Operations
Strategy
Geographies
Worldwide
North America
United States of America

Kao USA Looks For New Advertising Agency

February 14, 2014: 12:00 AM EST
Beauty care products maker Kao USA Inc. said it has agreed with advertising agency KBS+P to end their contract. Kao also launched a closed review of its global creative account for several brands, including John Frieda, Jergens, and Biore. KBS+P will not participate in the account review, which will not include the company’s agencies for media and digital accounts.
"KAO USA Announces Agency Change", PR Newswire, February 14, 2014, © PR Newswire Association LLC
Domains
BEAUTY BUSINESS
Advertising
Brands
Marketing
Geographies
Worldwide
North America
United States of America

Avon Reports Weaker Sales For Full-Year 2013

February 13, 2014: 12:00 AM EST
Avon Products, Inc. reported total revenue declined 6 percent to $10.0 billion in 2013, with total units dropping 5 percent and price/mix increasing 4 percent. Total Beauty sales decreased 7 percent, or 2 percent in constant currency basis, while sales of its Fashion & Home business dropped 4 percent, or increased 1 percent in constant dollars. Operating profit was $427 million, with operating margin dropping 70 basis points to 4.3 percent. Adjusted operating profit was $791 million, with adjusted operating margin 130 basis points to 7.9 percent, compared with 2012. Net loss for the year was $1 million. For the fourth quarter of 2013, the company said revenue dropped 10 percent from the same quarter of the previous year, with operating loss of $17 million.
"Avon Reports Fourth-Quarter and Full-Year 2013 Results", Avon, February 13, 2014, © Avon Products, Inc.
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BEAUTY BUSINESS
Operations
Strategy
Geographies
Worldwide
North America
United States of America

Avon Faces $132 Million Bill To Settle U.S. Bribery Invetigation

February 13, 2014: 12:00 AM EST
Cosmetics company Avon Products said it may have to pay up to $132 million to settle a bribery investigation by the U.S. government into its overseas expansion. In 2011, the U.S. Securities and Exchange Commission and the U.S. Department of Justice began a probe into allegations of improper payments in China. Conducted under U.S. law as defined by the country’s Foreign Corrupt Practices Act, the investigation has caused Avon at least $300 million so far. Avon reported sales declined 10 percent to $2.7 billion while operating losses rose to $17 million, driven by weaker sales in North America and in emerging markets including Mexico, Russia, and China.
"Avon Products may face £80m bill to settle bribery investigation", The Guardian, February 13, 2014, © Guardian News and Media Limited
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BEAUTY BUSINESS
Brands
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Regulation
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Asia-Pacific
United States of America
China

Natura Posts Impressive Sales And Revenue Growth In 4Q And Full Year 2013

February 12, 2014: 12:00 AM EST
Natural cosmetics company Natura reported its consolidated net revenue increased 15.5 percent to R $538.7 million in the fourth quarter of 2013, compared with the same quarter for 2012. Net income for the quarter was R$294.1 million and R$842.6 million for full-year 2013. Net revenue grew 9.3 percent in the fourth quarter, compared with the same quarter of the previous year. Natura’s International Operations accounted for 14.4 percent of sales in 2013, compared with 11.6 percent in 2012, and 14.6 percent in the fourth quarter. EBITDA grew 6.4 percent in 2013, the company said, with EBITDA for the Latin American operations going from negative territory in 2012 to positive in 2013. The company reported a consolidated EBITDA margin of 23.2 percent for 2013, compared with 23.8 percent in 2012.
"Natura Management Report 2013", Natura Cosmeticos, February 12, 2014, © Natura
Domains
BEAUTY BUSINESS
Operations
Strategy
Geographies
Worldwide
Latin America
Brazil

LUSH Cosmetics Brand Wins Infringement Case Against Amazon.com

February 12, 2014: 12:00 AM EST
The UK High Court ruled in favor with cosmetics company LUSH’s infringement lawsuit against online retailer Amazon.com. Filed in December 2014, the lawsuit alleged that Amazon committed trademarks infringement by diverting online consumers to similar products after searching for LUSH cosmetics, which are not sold by the online store. According to the court’s ruling, the online retailer can continue using the word “Lush” as a paid-for search term to produce advertisements for similar products. It cannot, however, use the word or imply that its online store sells LUSH cosmetics.
Sheila Shayon , "UK Court Sets Online Ad Precedent with LUSH Cosmetics Ruling Over Amazon", Brandchannel, February 12, 2014, © brandchannel
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BEAUTY BUSINESS
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United Kingdom

L’Oreal Sales Growth Slows, Thanks To Currency Fluctuations

February 10, 2014: 12:00 AM EST
L'Oreal SA announced that 4th quarter sales rose only 0.6 percent, mainly because of fluctuations in exchange rates in some critical growth markets. Sales during the quarter totaled €5.76 billion ($7.85 billion), up from €5.73 billion last year. The slower quarterly growth pulled full-year sales growth down to 2.3 percent, at €22.98 billion. Net profit last year rose 3.2 percent to €2.96 billion from €2.87 billion, thanks to trimming of production costs. Currency moves cut 3.7 percent from of L'Oreal's sales last year, according to the company. In Brazil, for example, the value of the real has dropped sharply in recent months. Brazil, along with China and India, are critical to L'Oreal's growth because of their billions of potential customers.
"L'Oreal Annual Results 2013", News release, L'Oreal, February 10, 2014, © L'Oreal
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Latin America
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L'Oreal, Evolva Cooperate For Novel Cosmetics Ingredient

February 10, 2014: 12:00 AM EST
Evolva Holding SA said it has entered into a collaboration deal with cosmetics company L’Oréal to develop novel biosynthetic production routes for an unidentified ingredient with a wide range of applications in the cosmetics industry. As part of the deal, the partners will apply Evolva’s fermentation technology in developing and optimizing yeast strains to produce the cosmetics ingredient in a sustainable and cost-effective way. Effective immediately and set to last until 2016, the deal will see the cosmetics company paying Evolva research fees and milestone payments based on research results.
"Evolva announces collaboration with L’Oreal", Evolva, February 10, 2014, © Evolva Holding SA
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Estee Lauder Appoints Jesel As SVP For Global Innovation

February 7, 2014: 12:00 AM EST
The Estée Lauder Companies Inc. appointed M·A·C Cosmetics senior vice president of global and North America marketing Guillaume Jesel as senior vice president and general manager for global corporate innovation. Jesel will be reporting to Estée Lauder global research and development, corporate product innovation, package development executive vice president Carl Haney and will lead the company’s global innovation efforts, including corporate technologies, external innovation, and its long-term innovation projects and portfolio.
"The Estee Lauder Companies Appoints Guillaume Jesel to Senior Vice President/General Manager, Global Corporate Innovation", Estée Lauder, February 07, 2014, © The Estée Lauder Companies Inc.
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Estee Lauder Reports Strong 2nd Quarter Sales, But Softening Of Profit

February 5, 2014: 12:00 AM EST
Estée Lauder reported strong second quarter (ended December 31) sales of $3.02 billion, a three percent increase over last year. Profit for the quarter was $432.5 million, down from $447.5 million, with earnings per share at $1.09, down from $1.13. CEO Fabrizio Freda said second quarter sales performance was ”in line with our expectations”, though per-share profit exceeded forecasts because of strong results in several brands and high margin channels, and cost leveraging. Sales gains were led by the U.S. and the U.K. especially luxury and makeup artist brands, and online and travel retail channels. Sales growth in China and certain European countries slowed, but was strong in emerging markets.
"The Estée Lauder Companies Reports Fiscal 2014 Second Quarter Results", News release, Estée Lauder, February 05, 2014, © The Estée Lauder Companies Inc.
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Reckitt Benckiser Launches Eye Beauty Product Range

February 5, 2014: 12:00 AM EST
Reckitt Benckiser is planning to launch a £3 million media campaign to promote its recently announced Optrex Eye Revive range of eye care products. Set to start on March 17, 2014, the campaign will include print, TV, and online media. According to RB, the products are the “first beauty products designed to restore moisture in and around the eyes.”
Natalie Mortimer, "Reckitt Benckiser Healthcare creates “a new ‘eye beauty’ category” and invests £3m in ad campaign", The Drum, February 05, 2014, © Carnyx Group Ltd
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Consumers Prefer YouTube Vloggers To Cosmetics Brands As Online Source Of Beauty Tips, Study Shows

February 4, 2014: 12:00 AM EST
Consumers are ignoring major cosmetics brands and are instead relying on thousands of YouTube beauty experts and vloggers for product recommendations, how-to tips, and social engagement, according to a study by YouTube marketing company Pixability. Data from the study “Beauty on YouTube: How YouTube is Radically Transforming the Beauty Industry and What That Means for Brands” revealed leading cosmetics brands have gained only 3 percent of the 14.9 billion beauty-related views on the online video-sharing site. Analysis revealed significant differences in how major brands and vloggers produce and manage cosmetics-related videos online and that only a few cosmetics brands are successful in integrating YouTube into their online and marketing initiatives.
Greg Jarboe, "YouTube Vloggers and Haul Girls Crush Big Beauty Industry Brands [Study]", Search Engine Watch, February 04, 2014, © Incisive Interactive Marketing LLC.
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Online
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Search Engines Drive Nearly 40 Percent Of Online Traffic To Makeup And Skincare Brand Websites, Study Reveals

February 1, 2014: 12:00 AM EST
In the U.S., search engines drove almost 40 percent of clicks to makeup and skincare websites in 2013, according to market research firm PM Digital Research & Analysis. Data also revealed the five largest cosmetics brands, Olay, Maybelline, M.A.C. Cosmetics, Covergirl, and Eyes, Lips, Face, accounted for 20 percent of online market share for traditional web traffic. Competitive shopping sites were the second highest traffic driver in December 2013, with Google accounting for 30 percent of referrals to makeup and skincare brand sites. Social networking sites and email sites account for 24 of traffic to makeup and skincare brand sites, with the top search keywords for makeup and skincare sites classified under three categories: products, concerns, and searches for promotions.
"Trend Report: Makeup and Skincare Brands Online", PM Digital, February 01, 2014, © PM Digital
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Shiseido Posts Strong Sales Growth, Stronger Net Income Rise For First 3 Quarters Of FY2014

January 31, 2014: 12:00 AM EST
Shiseido reported consolidated net sales rose 10.4 percent to ¥535.4 billion during the first three quarters (April 1 to December 31, 2013) of its fiscal year ending March 31, 2014, compared with the same period in the previous year. Domestic sales slightly fell by 0.4 percent to 251.2 billion yen despite strong sales performance by the MAQuillAGE and ELIXIR brands. Global sales grew by only 0.3 percent on a local-currency basis, due to year-on-year decline in sales in China. In yen terms, however, sales grew 22.7 percent to 276.8 billion yen, due to the Japanese currency’s downward trend. Sales in the company’s Other segment grew 4.4 percent to 7.4 billion yen, driven by the strong performance of the company’s restaurant business. Operating income jumped 264.3 percent to 33.3 billion yen, due to higher net sales and cost reductions. Ordinary income also surged 250.7 percent to 35.4 billion yen, while net income grew 267.2 percent to 16.7 billion yen.
"Shiseido Consolidated Settlement of Accounts for the First 3 Quarters Ended December 31, 2013", Shiseido, January 31, 2014, © Shiseido Co.,Ltd.
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Japan

Demand Grows For Men's Anti-Aging Cosmetics In Japan

January 31, 2014: 12:00 AM EST
Demand for anti-aging cosmetics is growing among men of almost all ages in Japan. For example, sales of men’s cosmetics at the Isetan Shinjuku department store in Tokyo grew more than 10 percent in December 2013, compared with the same month in 2012. Shiseido Co. said sales of its Shiseido Men brand of cosmetics for men rose 10 percent during the last fiscal year from the previous year. American brand Kiehl’s sells a 48-gram container of its facial cream for ¥4,935, a price two or three times more expensive than ordinary creams. Lab Series’ Age R+ brand is one of the best sellers at the Odakyu department store in Shinjuku at ¥7,035 per 50 milliliters.
"Men flocking to anti-aging cosmetics", The Yomiuri Shimbun, January 31, 2014, © The Yomiuri Shimbun
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Campaign Against Animal Testing Now Targets U.S.; Enlists The Body Shop

January 30, 2014: 12:00 AM EST
Cruelty Free International partnered with cosmetics company L’Oreal’s retail unit The Body Shop to campaign against animal testing in the U.S. cosmetics industry. As part of the campaign, the partners will submit to the U.S. government a petition containing more than 1 million signatures from customers and supporters worldwide. After helping achieve total bans on animal testing in the European Union, India, and Israel, and reviews of legislation in China, the campaign will now shift to the U.S., one of the markets worldwide where animal testing on cosmetics is still allowed.
Simon Pitman, "Cruelty Free International teams up with The Body Shop on US animal testing ban", Cosmetics Design , January 30, 2014, © William Reed Business Media SAS
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Canadians Prefer Well-Known Brands When Shopping For Food, Beverages, Etc.

January 30, 2014: 12:00 AM EST
Canadians look for brand name products when shopping, according to a poll of 95,000 consumers. More than 70 percent of those surveyed by BrandSpark International said established trust in a brand is very important in the purchase decision. When shopping for food, Canadians trust top brands to offer quality and taste. The most trusted brands in this category are Kellogg’s and Maple Leaf (packaged meat). When choosing beverages, taste is most important (Tropicana juice). Health and beauty brands (Dove, Revlon, Nair) are trusted for quality, effectiveness and fair price; household brands (Febreze, Downy, Resolve) for effectiveness; and kids brands (Similac, Pampers, Colgate) for gentleness.
"Press Release: More than 95,000 Canadians reveal their most trusted consumer packaged goods brands for 2014", BrandSpark International, January 30, 2014, © BrandSpark
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Chilean Men Spend More On Cosmetics Than Other South American Men Do

January 27, 2014: 12:00 AM EST
In Chile, sales of men’s beauty products are forecast to grow 41 percent to $255.7 million between 2012 and 2017, representing one of the fastest-growing segments in the country, according to the Estrategia magazine. Chilean men spend $21 per capita on beauty products, making them the biggest male spenders on cosmetics in the region. In contrast, Brazilian men spend $18.8 and Argentinian men spend $15.6 per capita, respectively. Sales of men’s bath products and deodorants reached $181 million in 2012, with the Cosmetics Industry Chamber of Chile estimating these products accounting for only 1.5 percent of the industry overall.
Cristina Kroll, "Chilean Men Outspend Other South American Men on Beauty", GCI Magazine , January 27, 2014, © Allured Business Media
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Brazil's Beauty Market Posts Strong Growth In 1996���2012

January 27, 2014: 12:00 AM EST
Brazil’s cosmetics market grew 10 percent in 1996–2012, according to the Brazilian cosmetics, toiletry, and fragrance association ABIHPEC. In contrast, the country’s general industry grew 2.2 percent and GDP grew 3 percent during the same period. Exports of cosmetics grew an average of 14 percent during the past 10 years, with most export going to other South American countries. Imports, however, have outpaced exports, with $1.037 billion worth of cosmetics, toiletries, and fragrances recorded in 2012, according to government data from Aliceweb. Deodorants accounted for 75 percent of imports from Argentina, while skincare creams represented 24.2 percent of U.S. imports, and 54.2 percent of fragrance imports are from France.
Imogen Matthews, "Booming Brazil", GCI Magazine , January 27, 2014, © Allured Business Media
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Doing Business In China Gets Harder, Becomes Less Attractive For Foreign Companies

January 25, 2014: 12:00 AM EST
Foreign companies are finding it harder and less attractive to do business in China as economic growth slows down and costs rise. China’s government is expanding its restrictive economic policies to include more industries in addition to banking, brokerage, and Internet. As competition heats up further, with local brands developing high-quality and innovative products, some foreign companies, such as Revlon, Best Buy, and Media Markt, have left the country. Others reduced their exposure and operations, such as L’Oreal’s decision to stop selling its Garnier brand of cosmetics and retailer Tesco’s joint venture with a state-owned enterprise. Some companies that chose to stay are facing difficulties, such as IBM, which reported a 23 percent drop in China revenue in the last quarter of 2013; and French drinks company Remy Cointreau, which said sales of its Remy Martin cognac dropped by 30 percent in the first three quarters of 2013.
"China loses its allure", The Economist, January 25, 2014, © The Economist Newspaper Limited
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Procter & Gamble Reports Unchanged Net Sales For Second Quarter Of FY2014

January 24, 2014: 12:00 AM EST
Procter & Gamble Co. reported net sales of $22.3 billion for the second quarter of fiscal year 2014, including a negative 3 percentage point impact from foreign exchange. Organic sales rose 3 percent, with diluted net earnings per share reaching $1.18, a 15 percent decline compared with a base period that included a $0.21 per share holding gain from the company’s acquisition of the balance of its Baby Care and Feminine Care joint venture in Iberia. Core earnings per share declined 1 percent to $1.21 from the same quarter of the previous year. Core operating profit margin declined 10 basis points, due to a lower gross margin, which fell 90 basis points.
"P&G Delivers Second Quarter Organic Sales up 3%, Core EPS of $1.21; Confirms Sales and Earnings Outlook for Fiscal Year", Procter & Gamble, January 24, 2014, © Procter & Gamble
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Coty Appoints New Manager Of Acquisitions Group

January 22, 2014: 12:00 AM EST
Cosmetics company Coty Inc. appointed Catia Cesari as senior vice president, in charge of its Business Development, Mergers & Acquisitions division. Previously with the Labelux Group as chief of its Mergers & Acquisitions and Human Capital departments, Cesari will report to Coty CEO Michele Scannavini and CFO Patrice de Talhouët. She also will become member of the company’s Executive Committee.
"COTY INC. APPOINTS CATIA CESARI AS SVP BUSINESS DEVELOPMENT, MERGERS & ACQUISITIONS", Coty, January 22, 2014, © COTY INC.
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Johnson & Johnson Posts Strong Revenue, Profit Growth In 4Q And Full Year 2013

January 21, 2014: 12:00 AM EST
Johnson & Johnson said sales grew 4.5 percent to $18.4 billion in the fourth quarter of 2013, compared with the same period in 2012. Operational results rose 6.3 percent, with the negative impact of currency at 1.8 percent. U.S. sales grew 7.4 percent, while sales overseas increased 2.4 percent, with operational growth of 5.6 percent and negative currency impact at 3.2 percent. Overall sales worldwide for the full year reached $71.3 billion, 6.1 percent higher than in 2012. Also, operational sales for the year grew 7.7 percent, with negative impact of currency at 1.6 percent. Domestic sales rose 7.0 percent, while overseas sales grew 5.4 percent. Net earnings for 2013 reached $13.8 billion, with diluted earnings per share at $4.81, the company said.
"Johnson & Johnson Reports 2013 Fourth-Quarter and Full-Year Results", Johnson & Johnson, January 21, 2014, © Johnson & Johnson Services, Inc.
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Boom Forecast For Thailand's Market For Skin Care For Men, Analyst Says

January 21, 2014: 12:00 AM EST
Thailand’s market for men’s skincare products is forecast to overtake Hong Kong in 2017, according to Euromonitor International. Senior research analyst Warangkana Anuwong said several international and local manufacturers, such as Beiersdorf, L’Oreal, and Bio Consumer, are driving growth in the market. Also, in the past two or three years, an increasing number of high-end brands and direct-selling brands have entered the market. Also driving the growth in men’s adoption of personal care products are the increasing number of male bloggers who are teaching male consumers how to use skincare products.
"Thai Men's Market Set to Boom Next for Beauty in Asia", GCI Magazine, January 21, 2014, © Allured Business Media
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Unilever Calls On UK To Remain In EU; Reports 2013 Revenue Surpassed Analysts' Forecast

January 21, 2014: 12:00 AM EST
Unilever could review its investments in the UK if the country left the European Union, according to company CEO Paul Polman. He said being in the EU brings a lot of benefits for the UK although some reforms must be implemented by the European government. Polman made his comments after the company reported its net profit grew 9 percent to €5.3 billion in 2013, beating analysts’ expectations. Global sales grew 4.3 percent, with sales in emerging markets rising 8.7 percent, the company said. He also dismissed criticism that his company has too many products and defended its marketing of skin-whitening creams, comparing them to tanning products.
Jennifer Rankin , "Unilever could pull out of Britain if it left EU, warns multinational's boss", The Guardian, January 21, 2014, © Guardian News and Media Limited
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The Nuance Group, Estee Lauder Partner To Launch Marketing Post At Toronto International Airport

January 16, 2014: 12:00 AM EST
Travel retail company The Nuance Group partnered with cosmetics manufacturer Estée Lauder to launch a retail and promotion outlet for the Modern Muse fragrance for women and Advanced Night Repair Synchronized Recovery Complex II anti-aging and skincare product at the Toronto International Airport. Scheduled to run from December 2013 to February 2014, the store will help the business partners interact with customers traveling via Toronto to an international destination.
Rebecca Mann, "The Nuance Group and Estée Lauder team up at Toronto International", The Moodie Report, January 16, 2014, © The Moodie Report
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UK's Premium Beauty Market Forecast To See Some Changes, Growth In 2014, Analyst Says

January 9, 2014: 12:00 AM EST
After a booming 2013, the UK’s premium beauty market is forecast to have more of the same in 2014 but is likely to see some changes including an increase in merger and acquisition deals, online traders launching their high street operations, and retailers reducing the brands they carry. Unlike what happened in Christmas 2013, consumers are less likely to see broad discounts offered by retailers. Also, the market is expected to get significant boost from the fast-growing men’s grooming segment, but could lose some drive from the absence of a new product trend as big as the BB creams.
"What’s Hot in 2014? Our Predictions for Premium Beauty", Imogen Matthews , January 09, 2014
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L'Oreal Stops Selling Garnier Cosmetics In China

January 8, 2014: 12:00 AM EST
L’Oreal SA stopped selling its Garnier brand of cosmetics in China and will instead focus on its other brands. Citing the slowing market in China as the reason behind its move, L’Oreal said it will continue pushing its L’Oreal Paris and Maybelline New York brands in the country. A week before L’Oreal’s announcement, its American rival Revlon Inc. said it plans to withdraw completely from the China market. Currently valued at $25.9 billion, China’s cosmetics market is the world’s third largest and is forecast to grow 63 percent in the five-year period ending 2015 by market research firm Euromonitor. While it remains L’Oreal’s third largest market where it holds a 17 percent share, China’s cosmetics market is “slowing, although still dynamic,” the company said.
"L'Oreal ends Garnier sales in China amid slowdown", Reuters, January 08, 2014, © Thomson Reuters
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Shiseido Expands Future Solution Range Of High-End Cosmetics

January 6, 2014: 12:00 AM EST
Shiseido added new products to its Future Solution range of high-end cosmetics products. Future Solution LX Total Protective Emulsion SPF15 is a daytime moisturizer that offers a lighter texture than the Total Protective Cream SPF15 product launched in September 2013, the company said. Its key ingredients, according to the company, include Skingenecell 1P, which Shiseido claims enhances cell vitality and improves skin quality, Sansho extract, and star fruit and Okura extract. LX Superior Radiance Serum, a whitening product, and LX Total Regenerating Body Cream, which the company claims helps improve skin quality, moisture, resilience, texture, and tone, are the other two additions to the product range.
Rebecca Mann , "Shiseido updates Future Solution with face and body products", The Moodie Report, January 06, 2014, © The Moodie Report
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Cosmetics Become More Expensive In South Korea, Driven By Rising Prices Of Imported Brands

December 27, 2013: 12:00 AM EST
Imported cosmetics brands in South Korea, including Estée Lauder and Yves Saint Laurent, are expected to raise the prices of most of their products by 4percent or 5 percent on January 1, 2014. Local cosmetics brands are likely to follow suit, further adding to the rising consumer prices in the country. In December 2013, Yves Saint Laurent raised the prices of cosmetics sold at local department stores by 5 percent. Other brands, such as Guerlain and Bulgari, are also planning to raise their prices.
"Cosmetics Prices: Imported Cosmetics Prices to Increase, Leading to Domestic Brands Price Hikes", Business Korea, December 27, 2013, © BusinessKorea Co., Ltd.
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India's Cosmetics Market Shows Strong Growth; Attracts More Foreign Players

December 26, 2013: 12:00 AM EST
India’s cosmetics market is growing at 15–20 percent annually or twice as fast as the markets in Europe and the United States. Currently valued at Rs.29,000 crore, or $4.5 billion, the market continues attracting foreign cosmetics brands. Among the factors driving the market’s growth are growing awareness among the country’s middle class, increase in number of department stores, and the huge growth opportunities for both foreign and local cosmetics brands. Although foreign brands, which are preferred by well-informed consumers, are dominating the market, local cosmetics manufacturers are also thriving, market analysts said.
Natalia Ningthoujam , "Indian cosmetics market booming; spells profits for global brands (2013 in Retrospect) ", First Post, December 26, 2013, © Firstpost
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Coty Partners With Distributors In UAE, Consolidates Distribution And Marketing

December 23, 2013: 12:00 AM EST
Coty Inc. partnered with luxury goods distributors Chalhoub Group and Jashanmal to form Coty Distribution Emirates LLC to distribute Coty products in the United Arab Emirates. Leveraging Coty’s long-established partnership with Chalhoub Group, the joint venture will enable the cosmetics company to expand its business operations in UAE and enhance consumers’ access to its products in the region. Also, the joint venture will let Coty consolidate its distribution and marketing operations in the region.
"COTY INC., CHALHOUB GROUP AND JASHANMAL ANNOUNCE THE CREATION OF COTY DISTRIBUTION EMIRATES LLC", Coty, December 23, 2013, © Coty Inc
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L'Oreal USA Introduces OnBeauty App For Connected TV Platform

December 18, 2013: 12:00 AM EST
L'Oreal USA partnered with streaming software vendor Roku to launch the OnBeauty application for the Connected TV platform. Designed for consumers with devices compatible with the Connected TV technology, which lets designed-for-tablet applications to be viewed on TV screens via an Internet connection, OnBeauty will feature how-to videos and entertainment content. It will also include multi-brand collection of products and social media options via the consumer’s TV remote control. L’Oreal worked with TV media solutions provider Brightline in developing the application.
"L'Oreal USA Introduces OnBeauty ", PRNewswire, December 18, 2013, © PR Newswire Association LLC
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Iran Sees Fast-Growing Cosmetics Market

December 17, 2013: 12:00 AM EST
Iran’s cosmetics market is valued at an estimated $2 billion per year, according to local market analysts, with Iranian women of ages 15 to 45 accounting for about a third of cosmetics consumers in the Middle East. In the Esfehan province, for example, 31.7 percent of women who are 15–19 years old copy the cosmetics usage by actresses appearing on foreign TV shows they watch via satellite TV. Iranian women who use cosmetics have to deal with the risks posed by counterfeit beauty products, with some unofficial data showing about 80–90 percent of imported cosmetics are made by unauthorized manufacturers in Thailand, China, or Turkey. Despite this, the government has so far failed to discourage or keep women from wearing makeup.
Mehrnaz Samimi, "Cosmetics boom in Iran", Al-Monitor, December 17, 2013, via Iran Pulse, © Al-Monitor
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