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Robinsons Retail Acquires Retailer Selling Shiseido, Benefit Cosmetics In Philippines

December 16, 2013: 12:00 AM EST
Robinsons Retail Holdings’ subsidiary Robinsons Specialty Stores acquired beauty retailer Beauty Skinnovations Retail’s assets including the right to operate and distribute Shiseido and Benefit stores in the Philippines. As part of the acquisition deal, Robinsons Retail receives the right to sell Shiseido and Benefit cosmetics products under a distribution deal with local distributors Luxasia Inc. and L Beauty Inc. Also, the company said the deal adds 10 cosmetics stores to its more than 1,000 stores across the country.
"Robinsons Retail acquires Shiseido, Benefit stores in Philippines", ABS-CBNnews.com, December 16, 2013, © ABS-CBN Interactive
Domains
BEAUTY BUSINESS
Operations
Strategy
Geographies
Worldwide
Asia-Pacific
Philippines

Kiehl's Announces Expansion Plans In UK

December 14, 2013: 12:00 AM EST
L’Oréal’s high-end skincare brand Kiehl’s plans to double its business in the UK by opening 24 new stores in the next five years. Part of the brand’s global expansion plans, the move will see the company operating 50 stores in the country by 2018. Established by homeopathic pharmacist John Kiehl in New York’s East Village in 1851, the company currently operates 1,200 points of sale in about 40 countries, with 300 operating as stand-alone stores.
James Quinn, "Skincare brand Kiehl’s to double stores", Telegraph, December 14, 2013, © Telegraph Media Group Limited
Domains
BEAUTY BUSINESS
Brands
Marketing
Retail
Geographies
Worldwide
EMEA
Europe
United Kingdom

Procter & Gamble Announces Plans To Reorganize International Business

December 13, 2013: 12:00 AM EST
Procter & Gamble Co. said it plans to reorganize its overseas business operations as part of CEO A.G. Lafley’s cost-cutting plans. Among the options being considered by the company are the proposed merger of its Western European unit with Eastern and Central Europe and combining its Indian business with the Middle East and Africa unit. At present, P&G’s international operations comprise five geographic units: North America, Latin America, Asia, Western Europe, and CEEMEA.
Matthew Boyle and Matt Townsend , "Procter & Gamble Said Planning Reorganization of Overseas Units", Bloomberg, December 13, 2013, © Bloomberg L.P.
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BEAUTY BUSINESS
Market News
Operations
Strategy
Geographies
Worldwide
EMEA
Asia-Pacific
Latin America
Europe
Middle East- Africa

Henkel Boosts Investment In Eastern Europe With Beauty Care Plant Acquisition

December 13, 2013: 12:00 AM EST
Furthering its strategy to boost investment and sales in perceived growth markets like Eastern Europe, Henkel has acquired a Russian beauty care factory from its Austrian owner. Henkel says the plant is a perfect complement to existing production facilities in the area, which it says is “one of [its] biggest and most important markets”. Leading Henkel beauty brands in Eastern Europe include Schwarzkopf, Syoss and Fa. The company purchased the plant from Austria’s Wellchem Holding GmbH.
"Henkel Beauty Care acquires plant in Eastern Europe", News release, Henkel, December 13, 2013, © Henkel AG & Co. KGaA
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BEAUTY BUSINESS
Operations
Geographies
Worldwide
EMEA
Europe
Germany
Austria
Russia

Estee Lauder's Outdoor Advertising Campaign In Australia Features Automatic Perfume Dispenser

December 10, 2013: 12:00 AM EST
Estee Lauder, JCDecaux Innovative, and OMD completed an outdoor advertising campaign, which featured billboards customized with a perfume dispenser in Sydney, Melbourne, and Brisbane. Lasting for a week, the campaign involved perfume dispensers that were triggered by a detection sensor. Upon activation, the perfume dispenser releases a sample of Modern Muse, the scent featured on the billboard.
"What outdoor advertising innovation smells like", AdNews, December 10, 2013, © Yaffa Publishing Group
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BEAUTY BUSINESS
Advertising
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Australia

China Bans Phenol-Containing Whitening Cream From Avon

December 7, 2013: 12:00 AM EST
China’s Food and Drug Administration ordered the removal of Avon’s Naturals Rose and Rose Hips Fairness Cream skin-whitening cream from the market after it was found to contain phenol, a prohibited substance. According to Beijing Society for Environmental Science deputy secretary-general Dong Jinshi, the substance may affect female fertility and may cause liver and kidney damage. Avon’s China division said the cream is not included in its local catalogue; however, it is sold on Chinese online stores and has a serial number from local authorities.
"Avon whitening cream banned in China after phenol discovered", WantChinaTimes.com, December 07, 2013, © WantChinaTimes.com
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L'Oreal Paris Launches Online Store In Middle East

December 5, 2013: 12:00 AM EST
Cosmetics company L’Oréal Paris partnered with online fashion store Mooda.com to launch its first ecommerce platform in the Middle East, making its products available for customers in the United Arab Emirates. Aimed at presenting a total look for both the website and the cosmetics company’s products, the deal will allow shoppers to access product photos and information and buy them online. Featuring Arabic and English language interfaces, the online store offers a mix of editorial content and shopping.
"L'Oreal Paris launches its first e-commerce platform in the Middle East with Mooda.com", Arab Crunch, December 05, 2013, © ArabCrunch
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BEAUTY BUSINESS
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Marketing
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Worldwide
EMEA
Middle East- Africa
United Arab Emirates

P&G Tops Largest Cosmetics Companies In Canada In Removing Toxic Chemicals From Products, Report Says

December 4, 2013: 12:00 AM EST
Procter & Gamble is the best among the top 5 cosmetics companies in Canada in terms of corporate policies on removing dangerous chemicals from products, according to nonprofit group Environmental Defence. Data from the report “Taking Stock: How the Cosmetics Industry Ranks on Toxic Chemicals” revealed how P&G, Johnson & Johnson, Unilever, Estée Lauder, and L'Oréal have been working on eliminating toxic chemicals, such as triclosan, phthalates, parabens, and 1,4-dioxane, which have possible links to health problems including cancer. Occupying the bottom of the list, due to a lack of published policies to phase out these harmful chemicals, are Estée Lauder and L'Oréal.
"A new report finds which cosmetics companies are naughty and nice with regards to toxic chemicals", Canada NewsWire, December 04, 2013, © CNW Group Ltd.
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Canada

Schwarzkopf Receives Supplier Of The Year Award In New Zealand

December 4, 2013: 12:00 AM EST
Cosmetics company Henkel Beauty Care Retail’s Schwarzkopf brand received the 2013 Health & Beauty Small/Medium Supplier of the Year award from New Zealand’s Countdown supermarket chain. Countdown operates more than 160 supermarkets in the country and the annual awards ceremony is its way of recognizing large and small enterprises for their excellence in buying and merchandising. Schwarzkopf includes several product lines including Extra Care for hair care and styling and Brilliance, Palette, and Nordic for hair color.
"Schwarzkopf named “Supplier of the Year” in New Zealand", Henkel, December 04, 2013, © Henkel AG & Co. KGaA
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BEAUTY BUSINESS
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New Zealand

AmorePacific Posts Strong Sales Growth, Profit Decline In 3Q 2013

November 28, 2013: 12:00 AM EST
South Korea’s AmorePacific reported operating profit fell 5.6 percent in the third quarter of 2013 although the cosmetics company’s overall sales grew 8.8 percent during the period. Several factors, including investment and marketing expenses, adversely affected the company’s overall profitability. In the third quarter of 2012, the company also posted strong sales combined with an 18 percent increase in operating profit. Two trends highlight the company’s hopes and problems for the future: growing sales in Asia and losses in Europe.
Chris BARKER, "AmorePacific reports sales increase, profit slump", Cosmetics Design, November 28, 2013, © William Reed Business Media SAS
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BEAUTY BUSINESS
Operations
Strategy
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Worldwide
Asia-Pacific
South Korea

Men's Premium Skincare Market Grows Faster Than Before, NPD Group Says

November 27, 2013: 12:00 AM EST
In the UK, sales of men’s prestige skincare products grew 4 percent to £26 million in the year ending August 2013, according to data from market research firm NPD Group. Data from the company also revealed women’s skincare products account for 95 percent of the overall market, while men’s skincare account for the remaining 5 percent. Sales of facial cleansers grew 9.3 percent, while facial moisturizers rose 2.7 percent and SFP protection products increased by 11.5 percent during the 12-month period. NPD Group’s study also showed 31.6 percent of men prefer basic moisturizing products, while 12.7 percent tend to favor products with anti-aging features.
Lou Cooper, "Premium skincare has never looked so good", Marketing Week, November 27, 2013, © Centaur Communications Ltd
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United Kingdom

L'Oreal Promotes Speichert To Global CMO Post

November 26, 2013: 12:00 AM EST
Cosmetics company L’Oreal appointed Marc Speichert as its global chief marketing officer, which marks his second promotion in four months. Appointed as L’Oreal USA’s CMO in 2010, after a 13-year tenure at Colgate-Palmolive Co., Speichert was promoted to CMO-Americas of L’Oreal in July 2013. As global CMO for L’Oreal, he will remain based in New York and continue to report to Frederic Roze, executive vice president of the company’s Americas Zone.
Jack Neff , "L'Oreal Names Speichert Global CMO", Advertising Age, November 26, 2013, © Crain Communications
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BEAUTY BUSINESS
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Strategy
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Worldwide
North America
United States of America

Procter & Gamble Denies Rumors About $1 Billion Plastic Molding Technology

November 26, 2013: 12:00 AM EST
Procter & Gamble said rumors were not true that it has developed a plastic molding process which could save the company as much as $1 billion per year in manufacturing costs. An article published on the Advertising Age magazine’s website claimed that P&G’s new molding technology could help the company manufacture plastic packaging that is thinner by as much as 75 percent compared with those made using conventional molding processes. Former P&G CEO Bob McDonald was also reported to have claimed that the technology could help the company reduce its environmental impact.
Chris Barker, "P&G calls $1bn plastic molding rumors “extremely inaccurate”", Cosmetics Design, November 26, 2013, © William Reed Business Media SAS
Domains
BEAUTY BUSINESS
Innovation
Operations
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North America
United States of America

Shiseido Launches Facebook Campaign Promoting Japanese Culture

November 25, 2013: 12:00 AM EST
Japan’s cosmetics and skincare company Shiseido launched a Facebook campaign that includes a digital version of the centuries-old Japanese tradition of wishing wall prayers. Part of the company’s marketing efforts aimed at introducing Japanese culture to the rest of the world, Shiseido’s campaign includes an app that presents a modern imagining of Japan’s ancient tradition of donating horses to temples in exchange for wishes. Fans joining the Facebook campaign can choose their favorite among the eight “emas” representing virtues, including compassion, kindness, and strength, and share them on a friend’s Facebook wall.
Sheila Shayon , "Shiseido Brings Japanese Culture to Global Consumers", brandchannel, November 25, 2013, © brandchannel
Domains
BEAUTY BUSINESS
Brands
Marketing
Online
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Worldwide
Asia-Pacific
Japan

UK Consumers Are Dumping Branded Beauty Products For Supermarket-Owned Brands, Aldi's Survey Says

November 25, 2013: 12:00 AM EST
In the UK, consumers are abandoning brand-name products, with 60 percent of respondents now choosing supermarket brands of health and beauty products over their luxury counterparts, according to a survey by retailer Aldi. Data also revealed UK customers saved an average of £120 each in 2012 by buying supermarket branded goods. Dubbed by Aldi as the “savvy beauty shoppers,” these consumers never compromise on quality while saving on beauty expenses, with 66 percent spending less than they did the previous year on products including hair-care, skincare, make-up, and toiletries. Almost half of respondents said they have stopped buying products they were tempted to buy but cannot afford.
"‘Savvy’ beauty shoppers ditch big name products", Information Daily , November 25, 2013, © The Information Daily
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Consumers
Market News
Private Label
Retail
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Worldwide
EMEA
Europe
United Kingdom

Latin America Set To Become World's Second-Largest Beauty Market, Analysts Say

November 25, 2013: 12:00 AM EST
Latin America’s beauty market is one of the world’s fastest growing, expanding 314 percent in the last decade and with annual sales reaching approximately $80 billion in 2012. In Brazil, which together with Mexico is leading the region’s beauty market growth, a compound annual growth rate of 10 percent has been reported for the last 17 years. Sales rose from $2.2 billion in 1996 to more than $15.4 billion in 2012, according to data from the Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry. Data from Euromonitor International revealed the country became the biggest perfume market in 2012, displacing the United States from the top spot, with sales growing 33 percent from $4.5 billion in 2009 to $6 billion in 2010. In Mexico, 64 companies are operating in the beauty market, which is estimated to be worth $14 billion. With the industry having attracted $6.2 billion in direct foreign investment in the last decade, the market is forecast to grow 7–8 percent in 2013, according to industry group CANIPEC.
Cristina Kroll, "The Beauty of Latin America", GCI Magazine, November 25, 2013, © Allured Business Media
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BEAUTY BUSINESS
Market News
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North America
Latin America
Mexico
Brazil
Argentina
Chile
Colombia
Ecuador

Office Men's Desire To Stay Young Looking Drives Growth In Market For Men's Cosmetics

November 24, 2013: 12:00 AM EST
In 2012, the international market for men’s cosmetics grew by more than 6 percent. Beiersdorf expects the market to grow even faster in the future, driven by increasing demand among men to remain looking young and dynamic in the workplace. German beauty expert Rebekka Reinhard said that increasingly it is alright for Western men to work more than 10 hours a day, but it is unforgivable not to maintain and improve their looks. She also said that it is not unusual for a group of men in the United States to be talking about beauty tips. In Europe, more men are availing of cosmetic surgery treatments to achieve their ideal look. For example, in 2012, 16 percent of all cosmetic surgery patients in Germany were men, according to the German Society of Plastic, Reconstructive and Aesthetic Surgeons.
"Workplace demands driving sales of men’s cosmetics", Oman Observer, November 24, 2013, © Oman Establishment for Press, Publication and Advertising (OEPPA)
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BEAUTY BUSINESS
Consumers
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Middle East- Africa
Oman

L'Oreal Creates Group Travel Retail Unit

November 21, 2013: 12:00 AM EST
Cosmetics company L’Oreal announced the creation of its Group Travel Retail Division, which will include the L’Oreal Luxe brands and brands from its other divisions Active Cosmetics, Professional Products, Consumer Products, and The Body Shop. Travel retail, the market segment that covers all products sold in travel distribution channels, including airports, airlines, and cruises, has been growing significantly, driven by the growing popularity and availability of travel. Since starting its travel retail business in the 1960s, L’Oreal Luxe has become the world leader in the segment, which has grown 9.4 percent to $55.8 billion in 2012 from 2011. Over the next 10 years, the market is forecast to grow over $100 billion.
"L'Oréal creates a Group Travel Retail Division", L'Oréal , November 21, 2013, © L'Oréal
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BEAUTY BUSINESS
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Europe
France

Natural Skincare Brands Inspired By Family Beauty Secrets Grow Faster Than Overall Skincare Market

November 20, 2013: 12:00 AM EST
In 2011, natural skincare brands, which include the family-heritage category, grew 18 percent, compared with the overall skincare market, which grew 12 percent, according to market research firm NPD Group. Several family-heritage brands of skincare products have become popular due to their claimed low use of chemical ingredients. Retailer CVS has been selling actress Salma Hayek’s Nuance Salma Hayek line of personal care products, which are inspired by the beauty secrets she had learned from her maternal grandmother, since August 2011. Other family-heritage brands that have become successful in the market include Aveda, which was started in 1978 with the help of two Ayuverdic doctors in 1978, La Bella Figura, and Shaffali Skincare.
Shivani Vora, "Not Your Grandmother’s Skin Care?", The New York Times , November 20, 2013, © The New York Times Company
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BEAUTY BUSINESS
Brands
Market News
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Worldwide
North America
United States of America

Estee Lauder In Early Talks To Purchase Butter London, WWD Report Says

November 19, 2013: 12:00 AM EST
Cosmetics company Estée Lauder is reported to be negotiating to purchase beauty brand Butter London, according to a story published in the Women’s Wear Daily newspaper. Butter London manufactures nail products, such as lacquered finishes, and has strong links with the high-fashion sector. Acquiring the brand would greatly improve Estée Lauder’s color cosmetics business.
Chris Barker, "Estee reportedly “in talks” to purchase Butter London", Cosmetics Design, November 19, 2013, © William Reed Business Media SAS
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BEAUTY BUSINESS
Brands
Operations
Strategy
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Worldwide
EMEA
Europe
United Kingdom

Procter & Gamble Launches Mobile Advertising Campaigns For Beauty Brands Olay and Herbal Essences

November 19, 2013: 12:00 AM EST
Procter & Gamble’s Olay and Herbal Essences cosmetics brands launched mobile advertising campaigns within Apple’s iTunes Radio to promote the brands’ social media initiatives. Running between songs played on the iTunes Radio app for iOS devices, the advertisements aim to promote Twitter interactions with consumers. Herbal Essences’ advertisement calls on consumers to vote for a contestant on Fox’s The X Factor program by sending a tweet to the brand. Also, clicking on the ad would lead to a landing page where consumers can input a tweet. Olay’s ad highlights the brand’s Twitter campaign for its Fresh Effects line of skincare products.
Lauren Johnson, "Procter & Gamble beauty brands tap iTunes Radio for social engagement", Mobile Marketer, November 19, 2013, © Napean LLC
Domains
BEAUTY BUSINESS
Advertising
Brands
Marketing
Geographies
Worldwide
North America
United States of America

Men's Grooming Products Account For Bigger Share of Total Personal Care Sales In 2012

November 17, 2013: 12:00 AM EST
Men’s grooming accounted for 8 percent, or $34 billion, of sales of the overall beauty and personal care market in 2012, according to market research firm Euromonitor. Growth in sales was driven mainly by good media coverage of the segment, increased adoption of designed-for-men products, and wider availability of men’s grooming products. Sales of men’s toiletries caught up with men’s shaving products, and are forecast to overtake the latter in 2013. Men’s skincare is the fastest growing category; however, it remains too small to be significant, with sales concentrated mainly in Asia-Pacific. Posting an 8 percent growth in 2012, shaving products accounted for almost 40 percent of total men’s grooming sales during the year. Unilever’s Axe and Dove deodorant brands have expanded to increase men’s shaving products.
Nicole Tyrimou, "Market Leaders and Innovators in Men's Grooming", Euromonitor International, November 17, 2013, © Euromonitor International
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BEAUTY BUSINESS
Brands
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Marketing
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North America
EMEA
Asia-Pacific
Latin America
United States of America
Europe
Middle East- Africa
Brazil

As Market Slows Down, Beauty And Personal Care Companies Look For Other Sources Of Growth

November 15, 2013: 12:00 AM EST
After proving its resilience to the global economic slowdown by achieving a 5 percent CAGR in 2007–2012, the beauty and personal care market appears to be slowing down, according to market research firm Euromonitor. In the first half of 2013, Unilever, L’Oréal, and Colgate, reported slower growth compared with the same period in 2012. Also, market growth rates in China and Brazil are slowing down, while recovery in Western markets remains tentative and slow. Beauty and personal care vendors need to tap into other areas promising growth potential including ethnic beauty in Western markets, creating partnerships with electronics companies, and collaborating with fashion brands.
Oru Mohiuddin - Senior Analyst, Beauty and Personal Care, "Underexplored Beauty Segments to Expand Future Revenue Scope", Euromonitor International, November 15, 2013, © Euromonitor International
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BEAUTY BUSINESS
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EMEA
Asia-Pacific
Latin America
Europe
China
Brazil

PINCHme Website Launches Product Sampling Service In U.S.

November 12, 2013: 12:00 AM EST
Australian product sampling website PINCHme is launching in the United States to offer consumers the opportunity to try products from leading consumer brands for free in exchange for their insights and feedback. Prior to its planned launch in the country, PINCHme had signed several brands, including Procter & Gamble, Unilever, Coty, Johnson & Johnson, and Kraft. Offering brands data analytics and customer feedback on products in real time, the PINCHme website can also help brands create sampling strategies that aim for their target demographics, promote new products, and accurately measure consumer data and purchase conversion, the company said.
"New Sampling Site Offers Leading Consumer Products for Free", PR Newswire, November 12, 2013, © PR Newswire Association LLC
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BEAUTY BUSINESS
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Marketing
Online
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United States of America

Unilever Executive Highlights Mobile's Impact On Marketing

November 12, 2013: 12:00 AM EST
Unilever director of global media innovation Jay Altschuler said mobile marketing is the “connective tissue” that holds marketing campaigns together during his speech at the 2013 Mobile Marketing Association forum in London. Altschuler also said the fast pace of change in the field of digital marketing can pose problems for fast-moving consumer goods companies, in particular, those with a history of being successful with TV advertising. He supported his argument by citing his company’s brand and marketing strategy of pushing brands aimed at customers living in a connected world. Altschuler also cited Unilever’s marketing campaign for the Magnum brand of ice cream in Istanbul. The company used mobile technology to drive and connect the digital and offline components of the campaign, which included allowing consumers to vote for their favorite ice cream flavors via social media site Twitter.
Jessica Davies, "MMA: Mobile is the “connective tissue” that holds campaigns together, says Unilever global media innovation chief", The Drum, November 12, 2013, © Carnyx Group Ltd
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BEAUTY BUSINESS
Advertising
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Europe
United Kingdom

Longer Life Expectancy And Earlier Start Will Drive 80 Percent Growth For Anti-Aging Skincare Market Growth, Analysts Say

November 10, 2013: 12:00 AM EST
The anti-aging skin care market is forecast to grow 80 percent, driven by consumers’ increased life expectancy and efforts to hold up the onset of skin aging, according to Diagonal Reports and other market research. Increased longevity means consumers will be living longer with aging skin and at the same time, women are adopting anti-aging skincare regimen earlier, even before the first signs of facial skin aging emerge. Studies also revealed that consumers who are preventative anti-agers have different concerns and needs compared with their older counterparts. While younger consumers focus on prevention of emergence of signs of skin aging, older women need solutions for various visibly obvious signs of skin aging.
Jacqueline Clarke, "Online Exclusive: Starting Skin Care Earlier and Ending Later Adds 80% to Market", Beauty Packaging, November 10, 2013, © Rodman Media
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The Body Shop Welcomes China's Plan To Adopt Cruelty-Free Cosmetics Policy

November 8, 2013: 12:00 AM EST
Beauty retailer The Body Shop said it welcomes reports that China is planning to revise its policies regarding testing for cosmetics manufactured in the country. Among the first cosmetics companies to campaign against animal testing for cosmetics, The Body Shop began its advocacy for cruelty-free cosmetics in 1989, becoming the first industry leader to lend its voice to the movement. In 1996, The Body Shop founder Anita Roddick joined Cruelty Free International’s founding organization BUAV.
"The Body Shop Welcomes the News Reports that The Chinese Food and Drug Administration will Adopt a New Approach to Animal Testing for Cosmetic Products ", PRNewswire , November 08, 2013, © PR Newswire Association LLC
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BEAUTY BUSINESS
Regulation
Research
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Asia-Pacific
China

Estée Lauder Highlights Its Focus on E-Commerce

November 8, 2013: 12:00 AM EST
In October 2013, Bruno Alazard, Internet and CRM Director at Estée Lauder Companies, spoke about the company’s focus on e-commerce, pointing out that it now accounts for 5% of the company’s sales, is growing strongly, is a relatively high margin business, and has become a separate business unit for the company. He added that it’s not always easy to balance profitability with “the best possible customer experience,” and that’s even more of a challenge online, where the company provides “a huge amount of information on” the products and the customer experience is further enhanced by initiatives such as setting up regular live chats with the company’s make-up artists to answer customers’ questions.
Lila Meghraoua , "At Estée Lauder, “e-commerce has become a business unit in its own right”", L'Atelier, November 08, 2013, © L’Atelier BNP Paribas
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BEAUTY BUSINESS
Marketing
Online
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EMEA
Europe

Rite Aid Launches Cosmetics Retail Business

November 8, 2013: 12:00 AM EST
Drugstore chain Rite Aid launched its Beauty Vision cosmetics retail business to expand its Wellness store concept in the United States. Rite Aid enlisted Beauty Fashion Sales in creating and implementing its beauty retail concept, which includes selling products from premium and emerging brands, such as Senna Cosmetics and Alison Raffaele Cosmetics. Also, the drugstore company’s cosmetics retail strategy will feature Beauty Vision advisers who can help shoppers select products, demonstrate their applications, and offer beauty tips including color matching.
Faye Brookman, "Critical Mass: Rite Aid Pushes Upward", WWD, November 08, 2013, © Condé Nast
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BEAUTY BUSINESS
Marketing
Operations
Retail
Strategy
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Worldwide
North America
United States of America

Though Cash Flow Is Healthy, U.S. Market Slowdown Depresses Coty’s 1Q Revenue

November 7, 2013: 12:00 AM EST
Coty Inc.’s net revenues dropped 2.6 percent to $1.2 billion in the first quarter, mainly due to a “significant market slowdown in the fragrance and nail categories,” the company reported. Profit decreased to $108 million from $118 million a year ago, while cash rose $123 million. The company blamed the revenue decline on color cosmetics, particularly in the Sally Hansen brand, which was affected by “the sudden and sharp trend inversion in the U.S. nail market” along with stiffer competition. The picture was rosier outside the U.S., where net revenues grew. EMEA revenues were up two percent, Asia Pacific revenues were up seven percent and emerging markets grew eight percent.
"Coty Inc. Reports First Quarter Fiscal 2014 Results", Coty, November 07, 2013, © Coty Inc.
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Coty Creates Subsidiary In South Africa

November 7, 2013: 12:00 AM EST
Cosmetics company Coty Inc. established a wholly owned subsidiary in South Africa to directly manage its operations in South Africa and 13 other countries in Africa. Formed through a strategic partnership with long-term partner Indigo Brands Proprietary Ltd., a subsidiary of AVI Ltd., the subsidiary has enabled Coty to gain Indigo and other AVI business units as its exclusive manufacturer, distributor, and marketer of Coty brands in the country. Also, the agreement will give Coty increased financial freedom to promote its products and expand its presence in the region.
"Coty Inc. Accelerates Presence In South Africa And 13 Other African Countries Through Enhanced Operating Structure", Coty, November 07, 2013, © Coty Inc.
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Middle East- Africa
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Johnson & Johnson Is Sixth-Largest Beauty Company, Beauty Packaging Magazine Says

November 6, 2013: 12:00 AM EST
Johnson & Johnson is ranked number 6 on the Beauty Packaging Magazine’s Top 20 Global Beauty Companies list, based on its sales numbers for 2012. Corporate sales increased 3.4 percent last year; however, sales of oral, baby, and skin care products dropped by 3 percent. Skin care products declined 2.6 percent to $3.6 billion, while sales of baby care products fell 3.7 percent to $2.3 billion. J&J reported sales rose 8.5 percent to $17.5 billion in the first quarter of 2013, with worldwide consumer product sales rising 2.2 percent to $3.7 billion. For the second quarter of 2013, the company said overall sales reached $17.9 billion, an increase of 8.5 percent from the second quarter of the previous year. Sales in the U.S. grew 8 percent, while international sales rose 9 percent.
"Top 20 Global Beauty Companies: 6. Johnson & Johnson", Beauty Packaging, November 06, 2013, © Rodman Media
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BEAUTY BUSINESS
Brands
Market News
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United States of America

Shiseido's $7.2 Billion Sales Earn Cosmetics Firm 7th Place On Global Beauty List

November 6, 2013: 12:00 AM EST
Shiseido was ranked the number 7 beauty company on Beauty Packaging’s Top 20 Global Beauty Companies list, based on its $7.2 billion sales in 2012, a decrease of 0.7 percent, or $177.87 million, from the previous year. In Japan, which accounts for 51 percent of the company’s business, net sales reached about $3.7 billion, about 2.2 percent lower than the previous year. International sales were $3.4 billion, a decline of 2.5 percent from the same period in the previous year. Shiseido said it expects net income for the year ending March 31, 2014, to exceed $200 million, with the company having put a three-year business plan in place focusing on the Japan and China markets and its Bare Escentuals business.
"Top 20 Global Beauty Companies: 7. Shiseido", Beauty Packaging, November 06, 2013, © Rodman Media
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Japan

L’Oréal's Strong Sales Help Grab First Place On Top 20 Global Beauty Companies List

November 6, 2013: 12:00 AM EST
L’Oréal reported sales grew 10.4 percent to almost $30 billion in 2012, which made it the number 1 company on the Beauty Packaging Magazine’s Top 20 Global Beauty Companies list. The company’s cosmetics division accounted for $27.5 billion of L’Oréal’s total sales. Retail unit The Body Shop contributed about $1.1 billion, with the Dermatology unit accounting for approximately $1 billion more. In contrast, the global cosmetics market grew 4.6 percent during the same period. In North America, the cosmetics company grew twice as fast the overall market, while corporate sales in New Markets increased 9.2 percent, which makes it the top zone for the first time. In New Markets, Asia-Pacific accounted for 20.6 percent of cosmetics sales; Latin America, 8.8 percent; Eastern Europe, 6.8 percent, and Africa and Middle East; 3.3 percent.
"Top 20 Global Beauty Companies: 1. L’Oréal", Beauty Packaging, November 06, 2013, © Rodman Media
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Natura's Strong Sales Growth Lands It On 13th Spot On Beauty Packaging's List Of Top 20 Cosmetics Companies

November 6, 2013: 12:00 AM EST
Brazil’s cosmetics company Natura ranked 13th on the Beauty Packaging Magazine’s list of the Top 20 Global Beauty Companies. In 2012, the company’s net revenue increased 13.5 percent to $3.1 billion, driven by the strong personal and beauty markets in the country. Revenue in Brazil rose 10.9 percent to almost $2.7 billion, while combined net revenue for Argentina, Chile, and Peru was around $238 million. Mexico and Colombia together contributed another $110 million. Although Natura maintained its position as the leading brand in cosmetics, fragrances, and toiletries market, with a 46.5 market share, its ranking fell by 50 basis points, compared with the previous year. Consumer loyalty indicator also fell from 66 percent to 51 percent during the period. Brand awareness, however, increased in Argentina, Chile, and Mexico.
"Top 20 Global Beauty Companies: 13. Natura Cosméticos", Beauty Packaging, November 06, 2013, © Rodman Media
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Limited Brands Grabs Number 12 Position On Beauty Packaging's List Of Top Cosmetics Companies

November 6, 2013: 12:00 AM EST
Limited Brands, which is ranked 12th on the Beauty Packaging’s Top 20 Global Beauty Companies list, saw its sales grew 1 percent to $10.5 billion for the year ending February 2, 2013, compared with $10.4 billion for the previous year ending January 28, 2012. Sales of Bath & Body Works rose 9 percent to $2.9 billion, while net sales for Victoria’s Secret reached $4.98 billion. VS Direct contributed another $1.6 billion. For the second quarter of 2013, Limited Brands said its net sales increased 5 percent to $2.5 billion, compared with $2.4 billion for the 13-week period ending July 28, 2013.
"Top 20 Global Beauty Companies: 12. Limited Brands", Beauty Packaging, November 06, 2013, © Rodman Media
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Despite Weak Sales And Revenue Growth, P&G Grabs 3rd Place On Top Global Beauty Companies List

November 6, 2013: 12:00 AM EST
Procter & Gamble ranked number 3 in the Beauty Packaging Magazine’s Top 20 Global Beauty Companies, based on its net sales of $84.2 bill for its fiscal year 2013. Net sales of beauty products, which accounted for 24 percent of the company’s total net sales, decreased 2 percent to $20 billion. Price increases contributed 2 percent to the increase in net sales; however, unfavorable geographic mix cut net sales by 1 percent and global market share of the company’s beauty business declined by 0.5 percentage points.
"Top 20 Global Beauty Companies: 3. Procter & Gamble", Beauty Packaging, November 06, 2013, © Rodman Media
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Unilever Sees Strong Sales Growth In 2012, Driven By Emerging Markets

November 6, 2013: 12:00 AM EST
In 2012, Unilever saw its sales grew 11 percent in emerging markets, which now account for more than 55 percent of the company’s business. For the past four years, the consumer goods company’s business grew by 30 percent. Even when the world economy slowed down in 2012, corporate sales increased almost 7 percent to $67.8 billion, driven by the 10 percent increase in sales of personal care and household products. Sales of personal care products grew nearly 10 percent to almost reach $24 billion, accounting for 35 percent of the company’s total sales. Unilever posted strong gains in market shares in Latin America, North Africa, Middle East, and North America.
"Top 20 Global Beauty Companies: 2. Unilever", Beauty Packaging, November 06, 2013, © Rodman Media
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Oriflame Is World's 17th-Largest Cosmetics Company, Beauty Packaging Magazine's List Says

November 6, 2013: 12:00 AM EST
Cosmetics company Oriflame ranked 17th on the Beauty Packaging Magazine’s Top 20 Global Beauty Companies list. In 2012, Oriflame reported sales declined 1 percent, due to a 5 percent drop in number of units sold. An increase of 4 percent in price helped offset the loss in part. Eastern Europe and Russia, which combined account for 54 percent of its revenue, showed the weakest sales. Overall, sales in the Commonwealth of Independent States and Baltic region fell 4 percent, pushed down by the 6 percent decline in sales in Russia. In the Europe, Middle East, and Africa market, which accounts for 28 percent of the company’s revenue, sales declined 1 percent although sales representatives increased 4 percent to 900,000. Sales in Asia, which accounts for 11 percent of revenue, increased 12 percent, driven by sales in China, India, and Indonesia. In Latin America, sales increased 8 percent, driven by sales growth in Mexico.
"Top 20 Global Beauty Companies: 17. Oriflame", Beauty Packaging, November 06, 2013, © Rodman Media
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Beiersdorf Announces Strong Sales Growth In January–September 2013

November 5, 2013: 12:00 AM EST
Beiersdorf, owner of the Nivea brand of creams and lotions, said organic group sales in the first nine months of 2013 grew 7.3 percent, compared with the previous year. Nominal group sales grew 2.4 percent to €4.674 billion, compared with €4.566 billion in the same period of the previous year. Margin of earnings before interest and tax rose to 13.9 percent from the previous year’s 12.6 percent. Beiersdorf’s Consumer Business Segment posted an organic growth of 6.9 percent, while teas grew organically by 9.3 percent.
"Beiersdorf Interim Report", Beiersdorf, November 05, 2013, © Beiersdorf AG
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Procter & Gamble Says To Expand Marketing Efforts In South Korea

November 3, 2013: 12:00 AM EST
Procter & Gamble’s South Korean unit said it plans to expand its marketing efforts in the country by focusing more on customer relationships. P&G Korea general manager Lee Sue-kyung said the company’s products are becoming known among Korean consumers, citing the Downy Perfume Collection line of fabric softeners as an example of a successfully implemented marketing campaign based on research and innovation. P&G is also expanding its partnership with local companies through the government’s GAPS program, which links multinational corporations with Korean companies.
Park Ji-won, "P&G to strengthen marketing in Korea", Korea Times, November 03, 2013, © KoreaTimes.co.kr
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Unilever CEO Polman Remains Upbeat About India's Consumer Goods Market

November 1, 2013: 12:00 AM EST
Unilever CEO Paul Polman said his company remains confident and optimistic about its business in India and market conditions in the country. Despite the number of setbacks faced by Unilever and other consumer goods companies in developing markets including India, Unilever intends to expand its investments in the country, Polman said during a media briefing at the Andheri headquarters of its Hindustan Unilever subsidiary. India is more stable than it was 20 years ago, Polman said, and the country’s consumer goods market has grown to almost Rs 2 lakh crore in total value, with the market growing 10–11 percent in the September 2013 quarter. HUL reported net sales grew almost 10 percent to Rs 6,747 crore and net profit rose 13.2 percent to Rs 914 crore during the period, supporting Polman’s optimism.
"We are confident about India, says Unilever chief", Business Standard, November 01, 2013, © Business Standard Ltd.
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P&G's My Black Is Beautiful Joins 2013 BLACK GIRLS ROCK! Awards

November 1, 2013: 12:00 AM EST
Procter & Gamble’s My Black is Beautiful initiative participated in the 2013 BLACK GIRLS ROCK! Awards to promote the company’s Imagine A Future campaign to empower young black girls to be the best they can be. Launched in 2012 with the support of community groups BLACK GIRLS ROCK! and United Negro College Fund, Imagine A Future aims to have a positive impact on 1 million black girls in the next three years. In 2013, MBIB is highlighting Making A Difference girls Brooklyn Wright, Mary Pat Hector, and Ty-Licia Hooker at the 2013 BLACK GIRLS ROCK! Awards.
"Procter & Gamble’s My Black is Beautiful Celebrates Girls Gone M.A.D. at the 2013 BLACK GIRLS ROCK!™ Awards", Procter & Gamble, November 01, 2013, © Procter & Gamble
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Avon Reports Lower Revenue For 3Q 2013

October 31, 2013: 12:00 AM EST
Cosmetics direct-selling company Avon Products reported total revenue declined 7 percent to $2.3 billion for the third quarter of 2013, compared with the same period in the previous year. Total units sales decreased 7 percent, while price/mix rose 6 percent during the quarter. Sales of beauty products declined 9 percent, with the number of active representatives falling 3 percent. Sales of fashion and home products declined 7 percent. Gross margin for the quarter was 62.5 percent, while operating profit was $68 million and operating margin was 2.9 percent.
"Avon Reports Third‐Quarter 2013 Results", Avon, October 31, 2013, © Avon
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Procter & Gamble Agrees To Use TiVo Research To Measure Marketing's Impact On Sales

October 31, 2013: 12:00 AM EST
Procter & Gamble agreed to use TiVo Research and Analytics and comScore for measuring the effectiveness of the consumer goods company’s cross media campaign. Covering P&G’s media spending for TV in the United States, the deal will match the company’s media exposure with actual purchasing decisions of households. P&G sees the single-source data deal as a more accurate means of measuring the impact of advertising on sales.
Jon Lafayette , "P&G To Use TiVo Research To Measure Cross-Platform", Multi Channel , October 31, 2013, © NewBay Media, LLC
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Men's Grooming Market Expands Rapidly In India

October 31, 2013: 12:00 AM EST
India’s market for men’s grooming and personal care products grew more than 34 percent, according to market research firm Nielsen. Growing faster than the overall personal care and beauty market in the country, the men’s grooming market is currently valued at about $278 million. Male consumers’ use of personal care and grooming products has become a widely accepted trend, with advertisements showing the image of a man using a personal care product a common marketing theme. Celebrities who are “overtly masculine” regularly appear as endorser of personal care and grooming products. For example, Garnier partnered with the Rajasthan Royals cricket team to promote its GarnierMen line of men’s grooming products.
Priyanka Bhattachayra, "A Boom in Men's Grooming in India", GCI Magazine , October 31, 2013, © Allured Business Media
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Estée Lauder Reports Higher Sales In September 2013 Quarter

October 31, 2013: 12:00 AM EST
Estée Lauder Companies Inc. said its net sales for the quarter ending September 30, 2013, rose 5 percent to $2.68 billion from $2.55 billion in the same quarter of 2012. With foreign currency effects excluded, net sales grew 6 percent, with net earnings for the quarter reaching $300.7 million, compared with $299.5 million in the same period of the previous year. Diluted net earnings per common share remained flat at $0.76. Results for fiscal 2014 and 2013 first quarter included charges from restructuring activities of $1.2 million and $0.4 million, respectively. Minus these charges, net earnings for the quarter were $301.6 million.
"The Estée Lauder Companies First Quarter Sales Rise 6% in Local Currency", Estée Lauder, October 31, 2013, © The Estée Lauder Companies Inc.
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Shiseido Posts Strong Revenue Growth In First Half Of Fiscal 2014, Boosted By Surging Sales Overseas

October 31, 2013: 12:00 AM EST
Japan’s cosmetics company Shiseido Group reported consolidated net sales grew 8.1 percent to ¥360.5 billion in the first two quarters of fiscal year ending March 31, 2014, compared with the similar period in fiscal 2013. Sales in Japan, however, declined 2.5 percent to ¥181.9 billion, as the company aimed to reduce store-level inventories by limiting shipments. Overseas sales rose 0.5 percent year on year, on a local-currency basis. Translated into yen, however, sales overseas grew 21.5 percent to ¥178.6 billion, helped by the Japanese currency’s depreciation. Operating income shot up by 144.4 percent to ¥20.4 billion, driven by the company’s efforts to improve the efficiency of selling, general, and administrative expenses and the move to reflect some expenses to the second half of the year.
"Shiseido Consolidated Settlement of Accounts for the First 2 Quarters Ended September 30, 2013", Shiseido, October 31, 2013, © Shiseido Co., Ltd
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Kao Reports Slightly Weaker Sales Growth In 3Q 2013

October 30, 2013: 12:00 AM EST
Kao Corp. said net sales grew 6.8 percent to ¥950.5 billion in the third quarter ending September 30, 2013. Operating income was ¥81.8 billion, while net income dropped 0.5 percent to ¥39.5 billion. Factors that affected the company’s revenue performance during the period included lingering effects of a weak global economy, a recovery trend in the United States and Europe, and growth in Japan’s household and personal care market. Product recalls by the company’s Kanebo Cosmetics Inc., Lissage Ltd., and e'quipe, Ltd. units also hampered group revenue.
"Kao Summary of Consolidated Business Results for the Nine Months Ended September 30, 2013", Kao Corporation , October 30, 2013, © Kao Corporation
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L’Oréal Says Sales Growth Slows In 3Q 2013

October 30, 2013: 12:00 AM EST
French cosmetics company L’Oréal reported like-for-like sales grew 4.1 percent to €5.48 billion in the third quarter of 2013, missing the average analyst forecast for sales growth of 5 percent. In contrast, sales grew 5.2 percent in the previous quarter and 5.5 percent in the first quarter. Based on reported numbers, the company’s Professional Products Division’s like-for-like sales grew 1.8 percent, while the Consumer Products Division reported sales grew 5.3 percent. Also, L’Oréal Luxe reported sales grew 6.2 percent like-for-like and 5.3 percent based on reported figures, with the division gaining market share in all regions. L’Oréal’s Active Cosmetics Division also reported strong sales growth, at 8.0 percent like-for-like and 5.6 percent based on reported data.
"L’Oréal Sales at September 30th,2013", L’Oréal, October 30, 2013, © L’Oréal
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