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Beiersdorf Awards Australia And New Zealand Ad Business To DAN

October 29, 2013: 12:00 AM EST
Cosmetics company Beiersdorf awarded its Nivea advertising account in Australia and New Zealand to Whybin TBWA Sydney's Digital Arts Network unit. Covering the brands Nivea and Nivea Men, the advertising account includes digital strategy, digital communications planning, CRM, and digital creative. Also, DAN will take care of owned channel maintenance and delivery of technical innovation required. DAN will also support in developing business initiatives for the brands.
"Beiersdorf switches analog for digital as DAN picks up Nivea", AdNews, October 29, 2013, © Yaffa Publishing Group
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BEAUTY BUSINESS
Advertising
Marketing
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Worldwide
Asia-Pacific
Australia
New Zealand

Estée Lauder Awards Clinique Digital Marketing Account To Dentsu's 360i Unit

October 29, 2013: 12:00 AM EST
Cosmetics company Estée Lauder’s Clinique brand awarded its consolidated international digital marketing account to advertising agency Dentsu’s 360i digital unit after a review of its agency roster. As part of the marketing account, 360i will support the brand’s digital and social marketing strategy including digital, creative, and media efforts, as well as the implementation of marketing efforts on social networks, such as Pinterest, Instagram, and Twitter. Clinique also appointed 360i to lead content strategy and development for its current global digital platforms. In 2012, Clinique increased its marketing budget 24 percent to $135.4 million in the United States, compared with what it spent in 2011.
Alexandra Bruell, "Estee Lauder's Clinique Consolidates Global Digital Business with 360i", Advertising Age, October 29, 2013, © Crain Communications
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BEAUTY BUSINESS
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United States of America

Australian Men Increase Their Spending On Clothing, Grooming, And Personal Care Products

October 27, 2013: 12:00 AM EST
Australian men spend about $250 million annually on skincare, accounting for 7 percent of the country’s total market. Also, men accounted for 19 percent of the $4 billion hairdressing and haircare market in 2012–2013, a figure forecast to increase as more men give up their old favorite barbers for more features-filled salons, according to market research firm Ibisworld. During the same period, men accounted for 20 percent of the country’s $12.2 billion clothing market, compared with women’s 39 percent. However, a growing number of men are hiring professional stylists to help guide them with their fashion and clothing purchases, according to Melbourne stylist Sally Mackinnon.
Sylvia Pennington, "Men spend up on hairy matters", The Age, October 27, 2013, © Fairfax Media
Domains
BEAUTY BUSINESS
Consumers
Market News
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Worldwide
Asia-Pacific
Australia

Procter & Gamble Posts Stronger Sales In First Quarter Of FY 2014

October 25, 2013: 12:00 AM EST
Procter & Gamble Co. reported net sales grew 2 percent to $21.2 billion in the first quarter of fiscal year 2014 from the same period in the previous year. Organic sales grew 4 percent, with a negative 2 percentage point impact from foreign exchange. Diluted net earnings per share reached $1.04, an increase of 8 percent from the previous year. Core earnings per share were $1.05, which is 1 percent lower than the previous year. Sales of the company’s beauty business rose 1 percent, driven by sales of hair care, deodorants, cosmetics, and personal cleansing. Its grooming segment recorded organic sales increase of 1 percent due to increase in prices and innovation in blades and razors and appliances.
"P&G DELIVERS FIRST QUARTER CORE EPS OF $1.05, ORGANIC SALES UP 4%", Procter & Gamble, October 25, 2013, © Procter & Gamble
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BEAUTY BUSINESS
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North America
United States of America

Solar Industry Group Recognizes L’Oréal USA As Solar Energy Champion

October 24, 2013: 12:00 AM EST
L’Oréal USA received the 2013 Solar Champion award from the Solar Energy Industries Association during the Power International conference and trade show held in Chicago. SEIA’s report “Solar Means Business” recognizes L’Oréal USA as one of the 20 leading companies in the United States using solar power in their facilities. L’Oréal USA has installed more than 9.7 megawatts of photovoltaic systems in its US facilities in the past 18 months, generating clean energy enough to power more than 40,000 homes for a year. Also, its solar power systems have helped eliminate the amount of carbon dioxide emissions equal to those produced by 2,433 passenger vehicles in a year.
"L'Oréal USA Named One of Top US Companies Utilizing Solar Power", CSRwire, October 24, 2013, © CSRwire, LLC
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BEAUTY BUSINESS
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United States of America

CPG Brands Find It Hard To Connect With Online Consumers

October 24, 2013: 12:00 AM EST
Consumer packaged goods brands are having more difficulty than other market segments do as far as connecting with online consumers is concerned over the past two years, according to a 2013 study by social media software vendor Livefyre. Citing the case of Anheuser-Busch’s beer brand Michelob Ultra, which suffered a net traffic loss of 94 percent, Livefyre said the study showed cosmetics companies, such as L’Oréal and Estée Lauder, have also lost online traffic in 2012 and 2013. In contrast, Gillette Venus and Burt’s Bees brands showed gains in online traffic during the period covered by the study.
Gavin O'Malley, "CPG Brands Struggle To Engage Online Audiences", Media Post, October 24, 2013, © MediaPost Communications
Domains
BEAUTY BUSINESS
Brands
Consumers
Marketing
Online
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Worldwide
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United States of America

Shiseido Launches Joint Venture In Dubai To Cover Several Middle East Markets

October 23, 2013: 12:00 AM EST
Shiseido Co. said it will establish a joint venture with Creation Alexandre Miya Paris Ltd. to launch Shiseido Middle East FZCO, which will import and market Shiseido cosmetics in seven Middle East countries. As part of the joint venture deal, Shiseido’s subsidiary Shiseido International Europe SA will own 51 percent of the venture, with partner Creation Alexandre Miya Paris owning the remaining 49 percent. Marking Shiseido’s first direct investment in the region, Shiseido Middle East will operate in Bahrain, Jordan, Kuwait, Oman, Saudi Arabia, Qatar and the United Arab Emirates.
"Shiseido Establishes Joint Venture in Dubai, UAE, Commencing Direct Investment", Shiseido, October 23, 2013, © Shiseido Co.,Ltd.
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Middle East- Africa
Bahrain
Jordan
Kuwait
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Qatar
Saudi Arabia
United Arab Emirates

Natura Reports Strong Revenue Growth In 3Q 2013

October 23, 2013: 12:00 AM EST
Cosmetics company Natura reported consolidated net revenue grew 12 percent in the third quarter of 2013, compared with the same period in 2012, with EBITDA and net income reaching R$398.3 million and R$183.7 million, respectively. Net revenue in Brazil grew 5.4 percent, driven by improved investments in marketing, revenue from the SOU launch, and Fathers’ Day-related marketing and sales promotion. Natura’s revenue from international operations rose 36.8 percent, driven by strong performance in Argentina. Internal cash flow in the first nine months of 2013 reached R$744.1 million, compared with R$750.1 million in the same period in 2012, with R$262.4 million used as working capital and R$368.2 million in capital expenditure.
"Natura Results 3Q 2013", Natura, October 23, 2013, © Natura Cosméticos S.A.
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BEAUTY BUSINESS
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Latin America
Brazil

Unilever Thailand Defends Skin-Whitening Brand Against Discrimination Charges

October 22, 2013: 12:00 AM EST
Unilever Thailand’s Citra Thailand brand defended itself against accusations of racial discrimination over its campaign for a skin-whitening product. Describing itself as a leading brand for skin-whitening products, Citra Thailand aired a television advertisement featuring presenters asking female students what would make them “outstanding in uniform.” The TV commercial featured a darker-skinned girl who says she does not know and a whiter-skinned girl who answers with the Citra product slogan. Posts by consumers by the popular online comments site pantip.com were mostly negative, berating the company for linking skin complexion with education.
"Unilever whitening brand defends cash prize for Thai students", Google, October 22, 2013, via Agence France Presse -- English, © Agence France Presse
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Aesop Sees Cosmetics Business Growing, Driven By Asia And South America Markets

October 21, 2013: 12:00 AM EST
Australian cosmetics company Aesop said it expects sales to increase more than 40 percent to US$82 million in the fiscal year ending June 2014 from US$58 million in the previous year. Taking advantage of its appeal with male consumers, the brand is set to expand its operations in South America and unveil new ecommerce sites in Asia. Aesop’s growth rate will depend on its ability to grab market share from competitors and attract new customers, because the company does not advertise. Despite its expansion plans in Hong Kong and Taiwan, Aesop currently has no plans to enter China’s market, because of the country’s policy requiring testing of cosmetics on animals, a practice the company does not want.
Kathy Chu, "Aesop Sees Growth From Asia, South America", Wall Street Journal , October 21, 2013, © Dow Jones & Company, Inc
Domains
BEAUTY BUSINESS
Marketing
Operations
Strategy
Geographies
Worldwide
Asia-Pacific
Latin America
Australia

Brand Marketers Need To Adjust To Evolving Customer Expectations

October 17, 2013: 12:00 AM EST
Customer expectations are changing globally, presenting significant challenges for brand marketers whose organizations may not have not changed in 20 years, but will definitely need to change to grow in the next few years, according to a Marketing Week study. The study looked at marketers who felt they did worse than competitors (underperformers) and those that did better (overperformers). From their experiences, researchers devised five rules to guide marketers who want to position brands for growth through 2020. At the top of the list: decide the purpose of the brand. Overperformers are much more likely to know why their brand exists: 84 percent say they are proud of their brand’s purpose, compared to 72 percent of underperformers.
Jonathan Bacon, "A guide to brand survival", Marketing Week, October 17, 2013, © Centaur Communications Ltd
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China's Cosmetics Market Slows Down, Report Says

October 15, 2013: 12:00 AM EST
The growth of the cosmetics industry in China slowed down, with gross retail sales reaching $21.94 billion, according to the report “China Cosmetics Industry Report, 2013–2016,” by search engine Reportlinker.com. In contrast, the cosmetics market in the country saw faster growth rates in the start of the century, with sales of beauty and personal care reaching $24 billion in 2010, according to a report published in the July 2013 issue of the “Cosmoprof-Asia” magazine. At present, foreign brands dominate with local cosmetics market, with the top 3 —L’Oréal, Olay and Mary Kay —together accounting for 12.45 percent of retail sales, according to the Reportlinker.com report.
Caroline Berg , "Holding a mirror to China's economy through cosmetics", China Daily, October 15, 2013, © China Daily Information Co (CDIC)
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BEAUTY BUSINESS
Market News
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China

NAD Tells P&G To Revise Mascara Ad Featuring Model With Lash Inserts

October 10, 2013: 12:00 AM EST
The National Advertising Division advised Procter & Gamble to stop using artificial lash enhancements in its advertising for the Covergirl Clump Crusher line of mascara. NAD's ruling covers the advertising, which features the photograph of a model whose eyelash volume had been increased with the use of lash inserts that were coated in Clump Crusher mascara. P&G included a small disclaimer at the bottom of the page, saying the lashes were styled with lash inserts.
Andrew McDougall, "NAD lashes advice onto P&G over enhanced Covergirl mascara ad", Cosmetics Design , October 10, 2013, © William Reed Business Media SAS
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BEAUTY BUSINESS
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United States of America

Amazon Launches Online Luxury Beauty Store

October 10, 2013: 12:00 AM EST
Leading online retailer Amazon introduced a Luxury Beauty Store, an online luxury beauty store. Although the website section looks like the rest of Amazon’s online store, it features larger thumbnail images and carries several luxury beauty brands, including Nars, Burberry, and Deborah Lippman. Beauty brands are reluctant to join Amazon’s online lineup, as its online operations threaten their own electronic commerce business. Several factors, however, are expected to help Amazon win a bigger share of the online cosmetics market, including its 30 percent share of online buyers who begin their last online purchase at Amazon, and its shipping policies.
Lauren Indvik, "Move Over, Sephora: Amazon Launches a Luxury Beauty Store", Mashable, October 10, 2013, © Mashable, Inc.
Domains
BEAUTY BUSINESS
Online
Operations
Retail
Strategy
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Worldwide
North America
United States of America

China's Cosmetics Market Posts Strong Growth; Likely To Catch Up With U.S. Market

October 10, 2013: 12:00 AM EST
China’s cosmetics market is fast catching up with the United States, which currently leads the world market with its $55 billion in annual sales. Annual sales growth in China is averaging 15 percent, much higher than the single-digit global growth rate, and is forecast to reach $38 billion in 2013. In China, skincare accounts for 40 percent of the cosmetics and personal care market, compared with 30 percent for the rest of the world. Foreign-owned cosmetics brands account for 90 percent of sales in China, with Procter & Gamble leading the market with 15 percent share, followed by L’Oréal with 10 percent. Shanghai Jahwa is the leading local cosmetics company, powered by its good brand diversification and multichannel distribution.
Mark Mobius, "China's beauty industry looking good", The Business Times Singapore, October 10, 2013, © Singapore Press Holdings Ltd
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BEAUTY BUSINESS
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United States of America
China

L’Oréal Adopts Demandware's Digital Commerce Platform Worldwide

October 10, 2013: 12:00 AM EST
L’Oréal S.A. selected Demandware Inc.’s Demandware Commerce platform for its digital brand portfolio management strategy worldwide. As part of the expanded partnership between the companies, L’Oréal will adopt Demandware’s technology for managing digital consumer engagement across all channels, including online, mobile, in-store, and social media. In 2010, the companies’ partnership began when L’Oréal Luxe deployed the Demandware platform in the United States and Canada for several brands, such as Kiehl’s, Lancôme, and Armani. Based on the success of the platform’s implementation, L’Oréal decided to consolidate its global digital commerce operations with Demandware Commerce.
"L’Oréal Selects Demandware as Global Platform to Power Digital Commerce Across its Brand Portfolio", BUSINESS WIRE , October 10, 2013, © BUSINESS WIRE
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BEAUTY BUSINESS
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United States of America

Procter & Gamble Relies On Innovation To Drive Value And Push Growth

October 10, 2013: 12:00 AM EST
Procter & Gamble UK and Ireland vice president and managing director Irwin Lee said his company used innovation to drive growth in household products in his address at the 2013 IGD Convention. He said innovation can drive value in the grocery industry and help recover the value given away by the industry on promotions. Lee also said the amount of value given away on promotions has increased from 23 percent five years ago to 33 percent at present. Examples of how P&G innovated to drive value include the Febreze brand's role in the 25 percent growth in penetration and 50 percent increase in sales in the air freshener segment and the sale of 13 million Ariel 3-in-1 pods since July 2013, according to Lee.
Fiona Briggs, "Innovation can drive meaningful value, P&G vice president tells 2013 IGD Convention", Retail Times, October 10, 2013, © Retail Times
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BEAUTY BUSINESS
Innovation
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EMEA
Europe
United Kingdom
Ireland

Lush Selects Storage Made Easy's Data Management Solution

October 9, 2013: 12:00 AM EST
Lush Cosmetics chose Storage Made Easy’s Enterprise File Share and Sync solution for cloud-based and in-premises data storage and management. As part of the deal, Lush’s data will be hosted using the infrastructure owned by UK-based Memset, Lush’s preferred service provider. Memset will also provide the backend data store Memset Object Storage, a modified version of the OpenStack Swift technology.
"Lush Uses Storage Made Easy EFSS Solution with OpenStack Swift-based Storage", PRWEB, October 09, 2013, © Vocus PRW Holdings, LLC.
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BEAUTY BUSINESS
Operations
Strategy
Geographies
Worldwide
EMEA
Europe
United Kingdom

World Luxury Goods Market Is Expected To Remain Strong In 2013, Euromonitor Says

October 9, 2013: 12:00 AM EST
In 2013, the world luxury goods market is forecast to post a strong performance, with sales expected to grow 3 percent to over $317 billion from the 2012 level, according to market research firm Euromonitor International. Having grown 20 percent since 2008, the global luxury goods market is forecast to grow 34 percent by 2018. Factors driving the market include the increase in demand for luxury goods in emerging markets. Luxury spending in China is rising rapidly despite the government’s efforts to clamp down on excessive consumption, while a weaker yen is boosting demand for premium brands in Japan. Also, the emergence of the affordable luxury sub-segment in Western Europe and North America is also driving growth in those markets.
Fflur Roberts, "The State of the Luxury market", Euromonitor International, October 09, 2013, © Euromonitor International
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EMEA
Asia-Pacific
Europe

Kao Strengthens Cosmetics Business By Combining Research And Production Divisions

October 9, 2013: 12:00 AM EST
Personal care company Kao said it plans to integrate its research and production divisions to strengthen its cosmetics business operations. Already popular in Asian markets, Kao aims to offer enhanced beauty products to women worldwide and sees the reorganization as part of its efforts to anticipate market changes and offer safe and reliable products. Kao said current integration efforts have helped the company save more than 10 billion yen in operating costs.
"Kao reinforces business with research & production divisions", Cosmetics Design, October 09, 2013, © William Reed Business Media SAS
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BEAUTY BUSINESS
Brands
Operations
Strategy
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Worldwide
Asia-Pacific
Japan

Estée Lauder Launches Clinique Online Store In Malaysia

October 8, 2013: 12:00 AM EST
Estée Lauder Companies’ Clinique brand of prestige skincare products launched its online store in Kuala Lumpur for customers in Malaysia. Designed for Malaysian customers living in areas in the country where Clinique products are not available, the online store offers at-home and convenient shopping. Featuring an interactive lifestyle format, the ecommerce site offers editorial content, videos, and skincare tips for both men and women. It also features an easy-to-navigate design organized by product category. Clinique appointed DKSH Distribution Centre to handle the site’s product delivery operations.
Sandra Low, "Online shopping for beauty made easier", The Star, October 08, 2013, © Star Publications
Domains
BEAUTY BUSINESS
Brands
Marketing
Online
Other
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Worldwide
Asia-Pacific
Malaysia

L’Oréal Posts Strong Growth In China; Continues Domination Of Market

October 8, 2013: 12:00 AM EST
L’Oréal’s sales in China grew 12.4 percent year on year to RMB12.05 billion in 2012, according to market research firm ResearchMoz. Data also revealed rivals Olay and Mary Kay combined accounted for 12.45 percent of the cosmetics industry’s retail sales. Local brand Shanghai Jahwa, with its popular product lines Liushen, Herborist and Maxam, is competing quite capably with its bigger international rivals for share of China’s beauty market. Overall, retail sales grew 21.5 percent YoY to RMB134.01 billion, with skin care sales growing 9.9 percent to RMB80.48 billion, making it the market’s largest segment.
Michelle Yeomans, "L’Oreal still dominating China with 12.4% growth", Cosmetics Design, October 08, 2013, © William Reed Business Media SAS
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BEAUTY BUSINESS
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China

New P&G Head Has His Work Cut Out For Him

October 5, 2013: 12:00 AM EST
Analysts expect the new head of P&G to focus on five key areas as he works to restore consistent growth to the giant consumer goods company. At the top of the list of A.G. Lafley’s priorities is boosting productivity systematically, rather than episodically. A key emphasis will be cost reduction through job cuts. Other key focus areas include: concentration on big brands;  fixing the beauty business, which operates on high profit margins; considering possible divestitures of brands like Iams pet food, Duracell batteries and Braun appliances; and grooming a successor. The 66-year-old Lafley served as P&G’s CEO before, retiring in 2010.
Alexander Coolidge, "Shoring up beauty unit, productivity key at P&G", Cincinnati.com, October 05, 2013, © news.cincinnati.com
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Consumers Around The Globe Ready To Spend On Branded Products

October 3, 2013: 12:00 AM EST
Companies with well-recognized, popular brand name products could find significant marketing opportunities among consumers in developing countries, according to a survey of 23,000 consumers in 20 countries. After five years of economic gloom, consumers in these countries and in the developed world are willing to spend more of their income on known brands. Two-thirds of consumers in affluent economies expect to trade up to more expensive goods and services in the travel, large home appliance and housing industries. Fifteen brands rank in the top 30 for both boomers and millennials. Twenty-nine brands appeal to only one or the other. The top-30 list for millennials includes newer companies and older brands that have positioned themselves for younger consumers
Christine Barton, "The Resilient Consumer: Where to Find Growth amid the Gloom in Developed Economies", The Boston Consulting Group, October 03, 2013, © The Boston Consulting Group
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Sephora Launches In-Store Beauty Classes For Loyal Shoppers

October 3, 2013: 12:00 AM EST
Cosmetics retailer Sephora launched the Sephora University Beauty Classes campaign aimed at helping beauty care enthusiasts learn effective ways of putting on makeup. Available in more than 60 stores in the United States, the complimentary Beauty Insiders classes are the latest efforts of Sephora to offer outstanding client experience, the company said. Held each Sunday, the classes are rotated and updated regularly to integrate the latest trends and techniques requested by Sephora customers. Lessons include tips on applying false lashes, skincare basics, and colorful eye makeup.
"Apply Yourself: Sephora Announces Complimentary In-Store Beauty Classes For Beauty Insiders To Become Their Own Beauty Experts", MultiVu, October 03, 2013, © MultiVu
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Indonesia's Cosmetics Market Continues Growth Mode, Driven By Rural Consumption

October 2, 2013: 12:00 AM EST
Sales of cosmetics in Indonesia’s rural areas grew more than 25 percent in 2013, according to market research firm Nielsen. Covering almost 50 million households in the country, the study also revealed that sales grew in non-rural markets although prices rose by more than 18 percent during the period. Spending in urban areas grew more slowly at 9.4 percent although it accounted for the largest market segment at Rp 606 billion.
Chris Barker , "Nielsen: Indonesia’s rural cosmetics consumption shoots up", Cosmetics Design , October 02, 2013, © William Reed Business Media SAS
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Asia-Pacific
Indonesia

Shiseido Pushes Global Expansion Plans

October 1, 2013: 12:00 AM EST
Japan-based cosmetics company Shiseido reported sales grew 1.7 percent for its latest fiscal year and net income increased 13.5 percent. Today, it is hard to imagine that the $8.6 billion company used to be a pharmacy, established by its founder Arinobu Fukuhara as Japan’s first Western-style pharmacy. In April 2011, the company launched its Three-Year Plan with the aim of becoming a global company representing Asia with its origins in Japan. Its global expansion strategy includes expanding its presence in the European cosmetics market and increase support for its brands in the United States. Shiseido also counts many successes with its research and development efforts, with 20 new products currently displayed on its website. Other research efforts include a partnership with Canada-based bio-venture firm RepliCel Life Sciences Inc. to study hair regenerative medicines.
James Zilenziger, "East Meets West", Happi.com, October 01, 2013, © Rodman Media
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BEAUTY BUSINESS
Brands
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Worldwide
North America
EMEA
Asia-Pacific
United States of America
Europe
Japan

Preservation, Stability, And Other Challenges Remain For Cosmetics Companies Working With Sustainable Materials

October 1, 2013: 12:00 AM EST
Cosmetics companies still face many technical and sustainability challenges when using natural ingredients for their products, according to market research firm Organic Monitor. Variations in product composition has kept preservation as the number 1 technical obstacle for product developers, followed by stability, which has become a major issue, because some environment-friendly preservatives cause discoloration and odor changes. Progress, however, has been recorded in green emulsifiers and rheology modifiers, with many ingredients currently available for making skin care emulsions. Another noteworthy trend is the transition from making green materials to the use of sustainable processes and extraction methods.
"Challenges Persist in Working with Green Materials in Beauty Product Development", GCI Magazine, October 01, 2013, © Allured Business Media
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Shiseido Picks Winter X Games Champion Hannah Teter As Brand Ambassador

September 30, 2013: 12:00 AM EST
Japanese cosmetics company Shiseido hired Winter X Games champion Hannah Teter as endorser for its suncare, skincare, and color product lines in the United States. As part of the endorsement deal, Shiseido will sponsor Teter at the 2014 Burton U.S. Open Snowboarding Championships. Teter was featured in the Shiseido tent during the 2013 event in Vail, Colorado.
"Shiseido Announces Gold Medalist Hannah Teter as New U.S. Spokesperson", PR Newswire, September 30, 2013, © PR Newswire Association LLC
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BEAUTY BUSINESS
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United States of America

L’Oréal Awards Media Account In Australia To Carat

September 30, 2013: 12:00 AM EST
Cosmetics company L’Oréal awarded its media account to marketing agency Carat. Traditionally one of Australia’s biggest spenders on advertising, L’Oréal cut its advertising budget from $60 million to $30 million in 2012. Incumbent agency UM lost the account following a review which started in July 2013. L’Oréal, however, said the contract is only for 2014.
"L'Oreal appoints Carat for media business ... for 2014", Adnews, September 30, 2013, © Yaffa Publishing Group
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Brazil's Consumer Brands Seek Global Expansion As Local Market Slows Down

September 28, 2013: 12:00 AM EST
Facing some serious market challenges, such as a slow economy and high consumer debt, Brazil’s consumer goods companies need to expand their focus beyond the domestic market. For example, local cosmetics company Natura has a 13.4 percent share of Brazil’s beauty and personal care market and with customers in 60 percent of the country’s households, according to consulting firm Brand Finance. It is the world’s 20th largest cosmetics brand in terms of value; however, 90 percent of its sales come from the domestic market and most of the rest coming from Latin America. Natura’s high-end competitor O Boticário, clothing company Hering, fashion company Riachuelo, Melissa, and Havaianas are some of the leading companies whose growth was driven by the country’s economic boom during the previous decade.
"BRAZIL: Consumer Goods Looks Good", The Economist, September 28, 2013, © The Economist Newspaper Limited
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BEAUTY BUSINESS
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Worldwide
Latin America
Brazil

L'Oréal Joins United Nations Global Compact 100 Stock Index

September 27, 2013: 12:00 AM EST
L'Oréal said it has been selected for inclusion in the United Nations Global Compact 100, a global stock index combining corporate sustainability with baseline financial performance. The stock index measures the financial performance of 100 companies that have pledged to commit to the Global Compact 10 principles. It has shown a total investment return of 26.4 percent in 2012, outperforming the rest of the stock market.
"L’Oréal selected for the United Nations global compact stock index Group", L’Oréal, September 27, 2013, © L’Oréal
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Worldwide
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France

China's Animal Testing Requirement Puts Western Cosmetics Firms In A Bind

September 26, 2013: 12:00 AM EST
While Western cosmetics companies are excited by the prospect of continuing growth in China’s $32 billion beauty products market, they are also in a quandary regarding the country’s requirement that cosmetics be tested first on animals before selling them to local consumers. Hundreds of thousands of animals are reportedly killed each year in tests required by the government for all new beauty and personal-care products, according to animal rights group Cruelty Free International. United States, European, and Indian regulators have already banned animal testing, with the European Union expanding the ban to outlaw sales of new products tested on animals elsewhere.
Liza Lin , "An Ugly Dilemma for Beauty Companies", Businessweek, September 26, 2013, © Bloomberg L.P.
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BEAUTY BUSINESS
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Regulation
Research
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Worldwide
Asia-Pacific
China

Estée Lauder Planning To Review Agency Lineup In 2014, Ad Magazine Says

September 26, 2013: 12:00 AM EST
Cosmetics company Estée Lauder plans to review its advertising accounts in 2014. A document acquired by Ad Age magazine revealed the company plans to invite agencies to pitch for at least one of two planned assignments. One assignment will involve managing digital media across the company’s various brands, while the other requires supporting digital media optimization and analytics to push ecommerce revenue. Santa Monica-based consulting firm Select Resources International is managing the agency search process.
Alexandra Bruell, "Estee Lauder Readies Agency Review for 2014", Advertising Age, September 26, 2013, © Crain Communications
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BEAUTY BUSINESS
Advertising
Marketing
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Worldwide
North America
United States of America

The Body Shop Calls For End To Animal Testing In Asia

September 26, 2013: 12:00 AM EST
The Body Shop Indonesia is supporting the campaign against animal testing of cosmetics in Asia. Well known for its stance against animal testing, the cosmetics retailer has received the Leaping Bunny honor from the Cruelty Free International, certifying The Body Shop that all of its products are made without animal testing. Earlier, the company also campaigned for the group’s Against Animal Testing campaign, which seeks to raise 1 million signatures to ban the production and sales of animal-tested cosmetics in Southeast Asia.
Sylviana Hamdani , "The Body Shop Campaigns For Cruelty-Free Beauty", The Jakarta Globe, September 26, 2013, © The Jakarta Globe
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HUL Launches Distribution Programs To Extend Urban And Rural Distribution Lead

September 26, 2013: 12:00 AM EST
Hindustan Unilever launched two distribution initiatives in India, with Project Telecalling aimed at the country’s urban centers and Project Columbus targeted at rural areas. Described by a market analyst as potentially capable of changing urban distribution of consumer goods, Project Telecalling involves the use of telephone lines to solicit and fulfill outlets’ orders. With Project Columbus, HUL seeks to reinforce its distribution lead over its rivals, including Procter & Gamble, in the country’s rural regions, which are not as heavily affected by the economic slowdown as the urban centers.
Sagar Malviya, "HUL spreads its wings to retain edge with projects Telecalling, Columbus", Economic Times, September 26, 2013, © Times Internet Limited
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Procter & Gamble Is World's Best In Balancing Creativity And Ability To Improve Existing Marketing Strategies, Survey Shows

September 25, 2013: 12:00 AM EST
Procter & Gamble outdoes all other companies as far as keeping a balance between the ability to create new ways of marketing products and improving current strategies is concerned, according to a survey by management consulting firm Hay Group. Other companies included in the top 20 include Microsoft, General Electric, and Coca-Cola, while the top 10 companies in Asia include Samsung, Toyota, and Tata. Companies that possess such flexibility often outperform those that are only strong in creativity or improvement, according to Hay Group Singapore managing director Andrew How.
Rachael Boon, "P&G leads in exploration and improvement: Poll", Straits Times (Singapore), September 25, 2013, © Singapore Press Holdings Ltd
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L’Oréal Picks Wolfpack To Handle Digital Account For L’Oréal Paris Men Expert Product Line

September 26, 2013: 12:00 AM EST
L’Oréal awarded the digital marketing account for L’Oréal Paris Men Expert brand to Wolfpack. As part of the business deal, Wolfpack will create a digital campaign for the men’s cosmetics range. Marking Wolfpack’s first time to work with the cosmetics company, Wolfpack’s appointment has no effect on L’Oréal’s current lineup of advertising agencies.
Maisie McCabe, "L'Oreal Paris Men Expert picks Wolfpack for digital project", Campaign Live, September 26, 2013, © Haymarket Media Group Ltd.
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Men's Grooming Market Posts Stronger Growth, Analysts Say

September 25, 2013: 12:00 AM EST
Sales worldwide of men’s toiletries other than shaving products are forecast to grow 5 percent to $17.5 billion in 2013, according to market research firm Euromonitor. Unilever and its axe and Dove brands rule this market segment with 26 percent share, more than rivals Procter & Gamble, Beiersdorf AG, and L’Oréal combined. Factors that have helped grow the market include manufacturers’ ability to convince men to include their products into their daily morning routine. For example, marketers spend huge marketing money to push their men’s grooming products, which helped the market expand faster at 5.6 percent from 4.5 percent, Mintel said.
Matthew Boyle , "Real Men Use Mud Masks as Toiletries Win in Guy Grooming", Bloomberg, September 25, 2013, © Bloomberg L.P.
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L’Oréal Seeks Bigger Share Of Skincare Market; Takes Acquisition Path In Emerging Markets

September 24, 2013: 12:00 AM EST
L’Oréal is acquiring beauty and personal care companies to expand its presence in the global skincare market. After acquiring Interconsumer Products Limited in Kenya in April 2013 and announcing plans to acquire facial mask products manufacturer Magic Holdings in China in August 2013, L’Oréal revealed its purchase of Mumbai-based Cheryl’s Cosmeceuticals. L’Oréal is competing with consumer goods companies Unilever and Procter & Gamble in India’s skincare and hair-care markets. After focusing on the higher end of the premium skincare market to differentiate itself from its rivals, L’Oréal’s acquisition of Cheryl’s Cosmeceuticals signals the French cosmetics company’s expansion into the low-end premium market.
"L’Oréal Vies For Top Spot In Growth Markets With Rapid Acquisitions", Trefis, September 24, 2013, © Trefis
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Pola Orbis Opens International Strategy Office In New York City

September 24, 2013: 12:00 AM EST
Japan-based cosmetics company Pola Orbis Holdings Inc. announced the opening of its Global Business Strategy Office in New York City. Located in midtown Manhattan, the new office will be working closely with the Tokyo headquarters to advance the company’s international business including evaluation of key brand acquisitions. Pola Orbis seeks to grow and reach $2.5 billion in sales by 2020.
"POLA ORBIS HOLDINGS Announces Opening of the Global Business Strategy Office in New York, NY ", PRNewswire, September 24, 2013, © PR Newswire Association LLC
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Gen Y Women Starts Worrying About Signs Of Aging Facial Skin, NPD Report Says

September 24, 2013: 12:00 AM EST
Among Generation Y women, or those who are 25–34 years old, 39 percent said they consider anti-aging an important feature in facial skincare products, according to market research firm The NPD Group, Inc. Data from the study “Women’s Skincare In-Depth Consumer Report” revealed only 19 percent of women 18–24 years old think the same. Generation Y women account for 18 percent of all facial skincare consumers in the United States, according to the study. Friends, family, and co-workers are their main sources of facial skincare advice and purchasing tips, the report also showed.
"Gen Y Women Begin Fighting the Signs of Aging Skin", NPD Group, September 24, 2013, © The NPD Group, Inc.
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Sephora Partners With Marc Jacobs To Launch Private-Label Cosmetics Line

September 24, 2013: 12:00 AM EST
Cosmetics retailer Sephora partnered with its LVMH stablemate Marc Jacobs to launch the Marc Jacobs Beauty line of beauty products. The most important project of the Sephora Originals branding initiative, the Marc Jacobs collection is forecast to generate more than $20 million in sales in North America in 2014. It also marks the first Sephora has collaborated with another LVMH company to come up with a product range. Founded in 1969 and acquired by LVMH in 1997, Sephora holds a 12-percent share of the United States market, 15 percent in China, and 27 percent of its home market, France.
Lauren Sherman , "Inside Sephora’s Branded Beauty Strategy", The Business of Fashion, September 24, 2013, © The Business of Fashion Ltd
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Women Spend More On Cosmetics, Personal Care Products Than Men Do, Huffington Post Study Shows

September 23, 2013: 12:00 AM EST
In the United States, 35 percent of women use one or two cosmetics products daily, with 17 percent using three or four products every day, while 54 percent of men do not use a single product when getting ready for the day, according to a survey by YouGov and The Huffington Post. Results of the survey of 1,000 adults revealed 33 percent of men are using one or two products each day; however, 7 percent of women use up to six products compared with only 1 percent of men.
Rebecca Adams, "This Is Why It's More Expensive To Be A Woman", The Huffington Post , September 23, 2013, © TheHuffingtonPost.com, Inc.
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U.S. Men Not Likely To Start Using Cosmetics Any Time Soon, Euromonitor Says

September 23, 2013: 12:00 AM EST
Men’s cosmetics products, such as BB and CC creams, which are popular in South Korea, are not likely to find a similarly welcoming reception among American men, according to market research firm Euromonitor. With cosmetics use something that is deeply rooted in culture, Euromonitor analyst Oru Mohiuddin does not expect American men to “adopt color cosmetics any time soon” although men’s cosmetics account for 47 percent of beauty products sold worldwide, according to Canadean. Mohiuddin instead advises cosmetics companies to focus their marketing efforts on younger generations of male consumers in the country to improve their chances of developing a stronger market for their products.
Chris Barker, "Euromonitor: American men “not ready” for color cosmetics", Cosmetics Design, September 23, 2013, © William Reed Business Media SAS
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L’Oréal Makes First Acquisition In India With Cheryl's Cosmeceuticals

September 21, 2013: 12:00 AM EST
L’Oréal agreed to acquire Mumbai-based professional skincare products and treatment company Cheryl's Cosmeceuticals. With a distribution network covering 10,000 beauty salons in India, the acquisition of Cheryl's Cosmeceuticals is expected to reinforce L’Oréal's professional products division in the country. At present, 20 percent of L’Oréal India's sales come from the cosmetics company's professional products division, which includes the L’Oréal Professionnel, Matrix, and Kerastase brands.
"Cosmetics giant L'Oreal makes maiden acquisition in India", Business Standard, September 21, 2013, © Business Standard Ltd
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YouTube Outperforms Facebook As Social Media Platform For Promoting Beauty Products, The Body Shop Executive Says

September 19, 2013: 12:00 AM EST
Marketers should not focus too much on measuring the success of their online marketing by the number of Facebook Likes, according to cosmetics retailer The Body Shop’s social media head Rowan Standfield. Speaking at the Brighton Digital Marketing Festival, Standfield described his company’s search for alternative methods for measuring social media’s impact on brand marketing, which includes improving awareness of its cosmetics products and expanding its customer base to include Gen Y people, or consumers aged between 18 and 35. Standfield also said majority of conversations about beauty were occurring on YouTube, which has received at least 50 percent of The Body Shop’s resources for commissioning and managing its online video strategy.
Jessica Davies, "The Body Shop’s head of social dismisses continued “obsession” with counting Facebook Likes and shifts focus to YouTube", The Drum, September 19, 2013, © Carnyx Group Ltd
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Estée Lauder Revs Up Revenue By Consolidating Product Lineups And Remaining Focused On Premium Market

September 18, 2013: 12:00 AM EST
Premium cosmetics company Estée Lauder reported its profit grew 84 percent for the fiscal year ending June 31, 2013, with total net sales breaking US$10 billion for the first time. Several factors helped drive the company’s revenue growth including focusing its resources on reduced number of product lineups and a conservative approach to expanding into emerging markets, including China and Brazil. Also, the company has focused on raising awareness for its brands in medium-sized cities in China and Brazil and on promoting its prestige brands instead of expanding significantly into the mass market.
Rob Walker, "It’s a Beautiful World for Super-Premium Brands", Euromonitor International, September 18, 2013, © Euromonitor International
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Premium Cosmetics Vendors See Growing Threat From Lower-End Market Rivals; Emphasize Brand Experience To Compete In Recession-Hit Market

September 18, 2013: 12:00 AM EST
The 2008–2009 recession hit the world’s leading premium cosmetics companies hard, with growth rates dropping sharply in 2009. Shiseido, for example, posted strong growth through its acquisition of Bare Escentual instead of organic growth. Premium cosmetics companies faced the double whammy of consumers limiting their purchases and growing competition from masstige beauty brands marketing their products made with sophisticated technology. As part of their efforts to compete with their lower-end market rivals, premium cosmetics companies focused on improving the brand experience to distinguish their brands from their lower-end counterparts. The top 10 vendors accounted for 62 percent of the high-end beauty market in 2012, compared with 62 percent in 2007, making premium cosmetics a highly consolidated market.
"Strategies To Succeed In The Fast Evolving Premium Beauty Market", Euromonitor International /Passport, September 18, 2013, © Euromonitor International
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Procter & Gamble Is Best Company In Promoting Leadership, Hay Group Study Reveals

September 18, 2013: 12:00 AM EST
By integrating people and leadership development into its core business and management principles, Procter & Gamble has succeeded in creating a corporate culture that promotes growth and development of its employees. HR consulting firm Hay Group’s recognition of P&G as its 2013 Best Company for Leadership confirmed the company’s achievements. P&G does not see leadership development as a program but as an ongoing process that is part of the company’s everyday business operations, according to chief HR officer Mark Biegger, global health and grooming group president David Taylor, and learning development director Laura Mattimore. According to these senior executives, P&G always tries to find ways to empower employees to experience different consumers and markets, ways of running business, technologies, and parts of the company.
"Best Companies for Leadership: Procter & Gamble", Hay Group, September 18, 2013, © Hay Group
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