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L’Oréal India Implements Fiorano Software's SOA To Manage Internal IT Systems

September 18, 2013: 12:00 AM EST
L’Oréal India chose enterprise software vendor Fiorano Software’s Fiorano service-oriented architecture platform to seamlessly connect its internal IT systems. Seeking to resolve IT challenges linked to its legacy IT solutions, the cosmetics company will use Fiorano’s SOA technology to implement multiple internal processes, including sales order generation, and enable sales growth in developing markets. Also, the SOA will enable the software vendor to remotely monitor, log, and track relevant data to deal with errors and problems promptly and automate its distribution management system, SAP, and SQL data gathering in real time.
"L'Oréal gets a SOA make-over", ciol.com, September 18, 2013, © Cyber Media (India) Ltd.
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BEAUTY BUSINESS
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Strategy
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Worldwide
North America
Asia-Pacific
United States of America
India

Korean Pop Culture Drives Success For Korean Cosmetics In The Philippines

September 18, 2013: 12:00 AM EST
Cosmetics products made by South Korean manufacturers are finding market success in the Philippines, boosted by the popularity of Korean pop culture among local consumers. For instance, cosmetics company Skin Food currently has 14 stores in the country since opening its first branch in the Philippines in July 2006, while Etude House has grown to 37 branches since its 2010 launch. Other factors driving Korean cosmetics’ popularity in the Philippines include Korean cosmetics brands’ being “unconventional” compared with local products and the popularity of “renewing” products, such as the Pure Beauty brand.
Christine Choi, "Why Korean cosmetics are popular in PH", ABS-CBN Interactive, September 18, 2013, © ABS-CBN Interactive
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Philippines
South Korea

L’Oréal Adopts The Body Shop's Approach To Ethical Sourcing

September 17, 2013: 12:00 AM EST
L’Oréal is gradually adopting the sustainable and ethical sourcing strategies of The Body Shop, a natural cosmetics retailer it acquired in 2006, according to the retailer’s Community Fair Trade program head Mark Davis. Almost all products that The Body Shop sells include at least one CFT ingredient, at present. As part of the CFT program, company buyers work with communities to expand the supply chain’s access to sustainable materials. Davis said The Body Shop has been working with L’Oréal to teach the cosmetics giant about sustainable sourcing.
Jessica Shankleman, "The Body Shop gives L'Oreal a lesson in ethical sourcing", Business Green, September 17, 2013, © Incisive Media Investments Limited
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Worldwide
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Sephora Plans To Open First Store In Bangkok

September 13, 2013: 12:00 AM EST
French cosmetics retailer Sephora plans to open its first store in Bangkok. To be located at the Siam Center shopping mall, the planned store will offer more than 1,500 items from the retailer, as well as new cosmetics brands released for the first time in the country. Other foreign-based retailers, such as Victoria’s Secret Beauty & Accessories and Pull & Bear, also plan to open stores at the shopping mall.
Pitsinee Jitpleecheep, "Sephora to branch out at Siam Center", Bangkok Post, September 13, 2013, © The Post Publishing PCL
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BEAUTY BUSINESS
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Thailand

Kao Expands Fatty Alcohols Production In The Philippines

September 13, 2013: 12:00 AM EST
Kao Corporation’s Philippine subsidiary Pilipinas Kao Inc. expanded its fatty alcohols production capacity in the country. Aimed at meeting growing demand for fatty alcohols in Asia, the capacity expansion project leveraged the company’s proprietary catalysts, which also helped reduce production’s impact on the environment. Also, the company completed a new production facility in Indonesia, while another plant is currently being built in Shanghai, China.
"Kao Completes Construction to Increase Fatty Alcohols Production Capacity in the Philippines", Kao Corporation, September 13, 2013, © Kao Corporation
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BEAUTY BUSINESS
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Asia-Pacific
Philippines

Market For Men's Beauty Products And Services Growing Fast In UK, Analysts Say

September 13, 2013: 12:00 AM EST
The market for men’s grooming and beauty products is growing rapidly in the UK, with Debenhams reporting men spent 24 percent more on grooming products in 2013 than in the same period in 2012. Also, the retailer valued the male skincare market in the country at around £600 million. In September 2013, leading fashion designers Tom Ford and Marc Jacobs are launching new cosmetics lines aimed at male consumers. Beauty salons catering to male consumers are also flourishing, with manicures, shaves, and spa treatments that have been a part of barbershops’ traditional offerings are being discovered by new UK customers. Removal of hair below the neck is also increasingly becoming popular, with the service becoming the second most popular treatment for men, according to a survey of beauty professionals in the country.
Rhiannon Lucy Cosslett , "Makeup, manicures and manscaping: how male grooming went mainstream", The Guardian, September 13, 2013, © Guardian News and Media Limited
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BEAUTY BUSINESS
Consumers
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EMEA
Europe
United Kingdom

Men's Grooming Market In India Expected To Reach Rs5,270 Crore In Three Years, Euromonitor Says

September 13, 2013: 12:00 AM EST
The market for men’s grooming products in India is currently valued at Rs3,800 crore and is forecast to grow 21 percent yearly to reach Rs5,270 crore in the next three years, according to market research firm Euromonitor. Seeking to capitalize on this trend, even FMCG companies are expanding their personal care product lineups to include specialized skin creams and bleaches. For example, local consumer goods company Dabur plans to introduce a line of skincare and hair care products for men. Beauty salons are also seeing an increase in male customers, prompting Dabur to partner with 1,000 men’s salons to distribute its products.
Samidha Sharma, "Male cosmetics is a Rs 3,800 cr business in India", The Times of India, September 13, 2013, © Bennett, Coleman & Co. Ltd.
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India

HUL Raises Prices Of Soaps, Toothpaste, Skincare Products

September 12, 2013: 12:00 AM EST
Hindustan Unilever Ltd. increased the prices of soaps, toothpastes, and skincare products by as much as 13 percent in the previous two months, citing higher costs of raw materials due to the depreciation of the Indian rupee. HUL’s move is expected to cause other consumer packaged goods companies in India to also raise their prices. Other companies, such as Colgate-Palmolive, GlaxoSmithKline Consumer Healthcare and Reckitt Benckiser, have already increased prices in response to the 13.8 percent depreciation of the rupee against the dollar. Higher prices are expected to drive down sales, as consumers cut back on unnecessary expenses, market analysts say. For example, NestléIndia reported sales grew 8.9 percent; however, 8.2 percent was price-related and only 0.7 percent in terms of volume.
Sapna Agarwal , "HUL increases prices of soaps, toothpaste, skincare products", Livemint, September 12, 2013, © HT Media
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Hair-Care Market Worth Sh20 Billion In Kenya, L’Oréal Says

September 12, 2013: 12:00 AM EST
Kenya’s hair-care products market is worth about Sh20 billion, driven by growing demand for weaves and chemicals, such as relaxers, treatments, and oil, according to L’Oréal East Africa. Hair relaxers account for Sh4 billion of the total market value, with the rest of the products accounting for Sh16 billion. Data from Visa International’s “Kenya Women Money Habits Survey 2013” report revealed women spend 19 percent of their income on food and 12 percent on personal care products.
Lola Okulo and Margaret Kanini, "Kenya's hair industry worth Sh20bn - L'Oreal", The Star, September 12, 2013, © The Star
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Middle East- Africa
Kenya

Procter & Gamble Marks 60th Year In Switzerland

September 12, 2013: 12:00 AM EST
Procter & Gamble is celebrating its 60th anniversary in Switzerland in 2013. After opening its first business location in Lucerne in 1953, the company moved its Swiss headquarters to Geneva. Over the years, P&G has grown to become the third largest private employer in the region and one of the 50 largest businesses in Switzerland. Geneva became the company’s headquarters for its Europe, Middle East and Africa business in 1999.
"Celebrating 60 Years in Switzerland", Procter & Gamble, September 12, 2013, © Procter & Gamble
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Europe
Switzerland

Nivea Crème Protects The Face's Skin As Well As More Expensive Rival Does, Experiment Shows

September 11, 2013: 12:00 AM EST
Results of an experiment revealed that Nivea Crème, which costs just over £1, performs just as well as the £105 Crème de la Mer in nourishing and protecting the face. Celebrities who have admitted their loyalty to the affordable facial care cream include actresses Alison Steadman, Kate Winslet, and Joan Collins. First launched in Germany in 1911, Nivea Crème comes in a blue pot and contains ordinary ingredients, such as glycerin. In contrast, Crème de la Mer has a more colorful history and formula, having been developed by an aerospace physicist about 50 years ago.
Claire Cisotti, "Claire used £1 Nivea cream on half her face - and £105 Crème de la Mer on the other. The results are VERY revealing", Daily Mail, September 11, 2013, © Associated Newspapers Ltd
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Germany

L’Oréal Launches Book About Beauty

September 11, 2013: 12:00 AM EST
L’Oréal launched the book “Philocalie,” as part of the cosmetics company’s literary efforts to study the concept of beauty. Coming four years after the release of the book “100,000 Years of Beauty,” which was sponsored by L’Oréal, the book aims to illustrate beauty’s link to humanity’s development from a historical and sociological points of view. Presented at a cocktail party in Paris, the book’s contributors include artists, philosophers, and art historians.
Jennifer Weil, "L'Oréal Presents Beauty Book", Women’s Wear Daily, September 11, 2013, © Condé Nast
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France

Natura Cosméticos Purchases Carbon Credits From Amazon's Indigenous People

September 10, 2013: 12:00 AM EST
Brazil’s cosmetics company Natura Cosméticos purchased 120,000 tons of carbon credits from the Paiter Suruí people of the Amazon. The Paiter Suruí became the first indigenous people to generate carbon credits by saving endangered rainforest using the Verified Carbon Standard for reduced greenhouse gas emissions from deforestation and forest degradation or REDD. Such a deal presents indigenous peoples a sustainable source of revenue and corporations a way to meet their corporate social responsibility requirements.
"Brazilian Cosmetics Giant Buys First Indigenous REDD Credits", Ecosystem Marketplace, September 10, 2013, © The Katoomba Group
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BEAUTY BUSINESS
Operations
Strategy
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Latin America
Brazil

L'Oréal Expands Online Operations; Seeks Bigger Share Of Ecommerce Segment

September 10, 2013: 12:00 AM EST
L'Oréal is expanding its ecommerce operations by launching several initiatives, including the launch of the online brand Em and online auto-replenishment programs for many of its brands. Also, as part of its efforts to use ecommerce to encourage U.S. men to use high-end grooming products, L'Oréal bought Baxter of California in December 2012. According to consulting firm Booz & Co., ecommerce accounted for $5 billion, or 8 percent, of beauty sales in 2012. Market research firm A.T. Kearney said online sales accounted for only 4.5 percent, or around $3 billion, of the $66 billion beauty market in 2011.
Jack Neff, "L'Oreal Attacks Fast-Growing E-Commerce Space", Advertising Age, September 10, 2013, © Crain Communications
Domains
BEAUTY BUSINESS
Online
Operations
Strategy
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Worldwide
North America
United States of America

Launches Of Men's Beauty And Personal Care Products Rose 70 Percent In 2007–2012, Study Reveals

September 10, 2013: 12:00 AM EST
Beauty and personal care product launches aimed at men increased worldwide by 70 percent from 2007 to 2012, according to market research firm Mintel. In the United States, the market for men’s grooming and personal care products grew almost 20 percent from $2.5 billion to $3 billion during the period. In the UK, the market grew 12 percent from £512 million to £574 million. Sales are forecast to grow 16 percent and 6 percent in the US and UK, respectively, by 2017. Data also revealed products for men are more likely to be dermatologically tested than products aimed at women, ethical or environment-friendly, and aromatherapeutic. In continental Europe, 67 percent of Italians, 64 percent of Germans, 60 percent of Spanish, and 47 percent of French use moisturizers with SPF.
"Beauty and personal care product launches targeted to men increase by 70% over the past six years", Mintel, September 10, 2013, © Mintel Group Ltd.
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Estée Lauder Joins $10 Billion Sales Club

September 9, 2013: 12:00 AM EST
Estée Lauder reported net sales grew 5 percent to $10.2 billion for the fiscal year ending June 30, 2013, joining the elite club of companies with sales of over $10 billion. Founded in 1946 by Joseph and Estée Lauder, the company manufactures and sells prestige skin care, makeup, fragrances, and hair-care products. Since then, the company has changed and grown significantly, expanding its market share under the leadership of president and CEO Fabrizio Freda. Focused on growing its operations in China, Germany, and France, Estée Lauder launched new brands, such as Zegna Uomo and Tommy Hilfiger Freedom Men. Business is growing in most markets, with the Americas rising around 5 percent, driven by double-digit growth in Latin America.
Walter Loeb, "Estée Lauder -- A Beauty Company To Be Reckoned With", Forbes, September 09, 2013, © Forbes.com LLC™
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Procter & Gamble Plans To Stop Using Phthalates, Triclosan In Personal Care Products

September 7, 2013: 12:00 AM EST
Procter & Gamble said it will stop using phthalates and triclosan as ingredients of its beauty and personal care products in 2014. While maintaining the chemicals are safe to use and approved by regulators, P&G nevertheless said it will stop using diethyl phthalate, which evaporates slowly and helps keep scents and color last longer in soap, shampoo, and other products. Triclosan, which slows or keeps germs from growing, will also be no longer used in products, such as dish soap, professional hand soap, and other personal care products.
Alexander Coolidge, "P&G halts use of 2 chemicals in personal care products", Cincinnati, September 07, 2013, © news.cincinnati.com
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Lidl Launches Budget BB Cream In UK

September 6, 2013: 12:00 AM EST
Retailer Ldl is launching a £1.99 own-label BB cream in the UK. Part of the company's expansion of its beauty range, the "All in one skin perfector" BB cream has an SPF 15 and is available in medium and light shades. The BB cream is described by an early user as "creamy" and goes on smoothly and provides good coverage, even hiding the small dark spots. It feels light on the skin and makes it feel soft.
Elsa Mcalonan, "'Lidl have a hit on their hands': How a budget £1.99 BB cream is set to take on the beauty big guns", DailyMail, September 06, 2013, © Associated Newspapers Ltd
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Osiao Launches Marketing Campaign Featuring Singer And Actress Miriam Yeung

September 5, 2013: 12:00 AM EST
Estée Lauder's Osiao brand of beauty products for Asian women announced its endorsement deal with actress and singer Miriam Yeung. As brand ambassador, Yeung will be featured in the brand's advertising and advertorials, public relations, in-store, and on the Osiao website. Launching in October 2013 issues of beauty magazines, the campaign will highlight the brand's Inner Radiance Concentrate and Inner Radiance Beauty Tablets product lines.
"Osiao Debuts a New Radiance with Miriam Yeung, Award-Winning Actress and Singer", Estée Lauder, September 05, 2013, © The Estée Lauder Companies
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Estée Lauder Faces Class Action Over Allegations Of Misleading Claims For Anti-Aging Serum

September 5, 2013: 12:00 AM EST
Estée Lauder was slapped with a consumer fraud class action lawsuit in New York over anti-aging claims for the company’s Advanced Night Repair skincare serum. Donna Tomasino, in launching the class action, alleged the company has committed misleading advertising by suggesting the serum promotes DNA repair and other anti-aging effects. Tomasino reportedly bought the Night and Eye Repair serums only to find there was no product testing supporting the anti-aging claims.
Michelle Yeomans, "Estee Lauder in courts over anti-aging claims", Cosmetics Design , September 05, 2013, © William Reed Business Media SAS
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Procter & Gamble Likely To Drop Underperforming Businesses, CEO Says

September 4, 2013: 12:00 AM EST
Procter & Gamble Co. is evaluating its underperforming product lines and might discontinue some of them, according to company CEO A.G. Lafley. Currently considered as part of P&G’s core business, products developed in the last 10 to 20 years account for over 90 percent of the company’s lineup of brands. Responding to some analysts’ claims that P&G is charging too much for its most successful brands, such as Crest toothpaste and Pampers diapers, Lafley said consumers “do not shop only on price.” He said, however, that his company plans to develop products aimed at consumers whose purchasing decisions are based mainly on price.
Barrett J. Brunsman, "CEO Lafley has 'watch list' of P&G's underperforming businesses", Cincinnati Business Courier, September 04, 2013, © American City Business Journals
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Estée Lauder’s New Skincare Products Help Drive Sales Growth For Retailer Colours & Fragrances

September 3, 2013: 12:00 AM EST
Perfumes and cosmetics travel retailer Colours & Fragrances reported sales grew more than 70 percent from the launch of Estée Lauder’s Advanced Night Repair Synchronized Recovery Complex II. Running from August 12 until the end of September 2013, the launch promotion at the Kuala Lumpur International Airport featured a podium that includes an iPad and a touchscreen interface for recommending products based on customer input. KLIA passengers can avail of free skincare analyses and try the products.
Melody Ng, "Colours & Fragrances reports sales surge from new Estée Lauder launch", The Moodie Report, September 03, 2013, © The Moodie Report
Domains
BEAUTY BUSINESS
Brands
Marketing
Retail
Strategy
Geographies
Worldwide
Asia-Pacific
Malaysia

Founder's Love Affair With Ginseng And Natural Beauty Drives AmorePacific's Growth And Expansion

August 29, 2013: 12:00 AM EST
South Korean cosmetics company AmorePacific founder Suh Sung-hwan’s adherence to the philosophy of natural beauty is the company’s main driving force. Suh became interested in ginseng and other traditional Korean herbs during his younger years when he would join his mother in going to the markets in search of the best ingredients for her camellia hair oil. After years of studying ginseng, he started patenting ginseng extracts for his company in 1972, and launched the Ginseng Sammi line of cosmetics products a year later. Launched in 1987, the Sulwhasoo brand is noted for its flagship product, the First Care Serum.
Louisa Lim, "Oriental artistry by Korean skincare brand", The Star, August 29, 2013, © Star Publications (M) Bhd
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BEAUTY BUSINESS
Marketing
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Strategy
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Asia-Pacific
South Korea

L’Oréal Reports Strong Revenue Growth Despite Tough Market In First Half 2013

August 29, 2013: 12:00 AM EST
L’Oréal SA reported earnings grew 7.7 percent in the first half of 2013, with operating income rising to €2.04 billion. Sales during the period reached €11.738 billion, an increase of 4.7 percent. Like-for-like sales increased 5.4 percent. Growth at constant exchange rate was 6.4 percent. Profitability of the Professional Products Division rose from 19.9 percent to 20.1 percent despite the difficult market, while profitability of the Consumer Products Division increased from 19.9 percent to 20.8 percent. Active Cosmetics Division reported profitability rose from 26.1 percent to 27.3 percent during the period.
"L’Oreal First-half 2013 results", L’Oreal, August 29, 2013, © L’Oreal S. A.
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Avon Products Names Brian Salsberg As SVP Of Global Strategy

August 29, 2013: 12:00 AM EST
Avon Products, Inc. appointed Brian Salsberg as senior vice president of global strategy effective September 23, 2013. Salsberg’s responsibilities will include helping define and develop the company’s global strategic growth plan. He will be reporting to Avon CEO Sheri McCoy, working closely with her and the rest of the company’s senior management team to enhance its capabilities in terms of strategy, market stabilization, innovation, and growth. Salsberg was a partner at McKinsey & Co., Inc. before joining Avon.
"Avon Appoints Brian Salsberg as Senior Vice President, Global Strategy", Avon, August 29, 2013, © Avon Products, Inc.
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Emerging Markets Drive Profit Growth For L’Oréal

August 29, 2013: 12:00 AM EST
Growing sales in emerging markets and a recovering market in North America drove L’Oréal’s profit up by 5 percent in the first half of 2013. Net income grew to €1.7 billion, or $2.3 billion, in January–June 2013, the cosmetics giant said. L’Oréal has been expanding its focus in emerging markets, which already account for more revenue than either the European or North American market.
"Emerging markets lead profit gain at L'Oreal", ABC News, August 29, 2013, via The Associated Press, © The Associated Press
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L’Oréal Paris Haircare UK's Group Product Manager Tells How A Rugby Player Became One Of The Cosmetics Company's Marketing Leaders

August 29, 2013: 12:00 AM EST
L’Oréal Paris Haircare UK group product manager Stuart White described how he became the company’s marketing head straight from the Lancaster University. After realizing he was interested in marketing fast-moving consumer goods, including beauty products, sporting goods, and drinks, he decided to write about building and sustaining brand equity in the cosmetics industry for his dissertation. He then joined L’Oréal’s graduate management trainee program, was hired by the company, and later became its haircare product manager responsible for £70 million in turnover.
Tom Mendelsohn , "I want your job: Head of marketing", Independent, August 29, 2013, © independent.co.uk
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Flavors And Fragrances Markets Set For Healthy Growth Over Next Four Years

August 29, 2013: 12:00 AM EST
A shift toward healthier foods means American consumers are buying lower-sodium foods and lower-sugar beverages, increasing the demand for flavorings that improve taste, according to a Freedonia Group report. A shift toward natural products has generated greater demand for natural flavors, which are more expensive than their artificial counterparts – “boosting value gains”. The cosmetics and toiletries market, meanwhile, is benefiting from a surge in the popularity of body washes, perfumes and colognes, which means increased demand for fragrance blends. All of this adds up to good news for the flavors and fragrances market, which Freedonia forecasts to advance 4.6 percent a year through 2017 to $7.1 billion.
"U.S. Demand for Flavors & Fragrances to Exceed $7 Billion in 2017", Nutraceuticals World, August 29, 2013, © Rodman Media
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BEAUTY BUSINESS
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Stable Growth For Singapore's Cosmetics Market In 2013–2017, Study Predicts

August 28, 2013: 12:00 AM EST
Singapore’s cosmetics market is forecast to grow at a CAGR of about 4 percent in 2013–2017, according to market research firm RNCOS. According to the company’s study “Singapore Cosmetic Market Forecast to 2017,” the country is emerging as global cosmetics companies’ favored investment destination in Southeast Asia. Singapore is also seeing growth in the men’s grooming market and online sales of cosmetics products, data from the study showed. RNCOS’ report also looked at Singapore’s regulatory framework for the cosmetics industry, including its licensing procedure for foreign-owned cosmetics companies.
"Singapore a Growing Beauty Hot Spot in Southeast Asia", GCI Magazine, August 28, 2013, © Allured Business Media
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Singapore

L’Oréal Reviews US Digital Marketing Account

August 28, 2013: 12:00 AM EST
L’Oréal is reviewing its digital marketing account in the United States. Current digital agency Moxie plans to defend the account, which is valued at least $17 million each year, based on the cosmetics company’s online ad spend in 2012. Digital marketing spend has grown by double-digit percentages since Marc Speichert became the company’s chief marketing officer for the Americas market.
"Globe Trotter: For a new digital makeup", The Economic Times, August 28, 2013, © Times Internet Limited
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BEAUTY BUSINESS
Advertising
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Online
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Asia-Pacific
United States of America
India

Los Alamos National Laboratory Honors Team For Creating Statistical Tool With Procter & Gamble

August 28, 2013: 12:00 AM EST
The Los Alamos National Laboratory awarded its first Richard Feynman Prize for Innovation Achievement to the team that developed the Reliability Technology statistical method for Procter & Gamble. Developed by researchers Michael Hamada, Harold Martz, and their colleagues in partnership with the consumer goods company, Reliability Technology has enabled Procter & Gamble to streamline its manufacturing processes. The research team was honored during the laboratory’s 2013 outStanding innovation Awards reception.
Gary Gerew, "Los Alamos honors team for work with P&G", Albuquerque Business First (New Mexico), August 28, 2013, © American City Business Journals
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BEAUTY BUSINESS
Innovation
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Procter & Gamble Removes DEP Phthalates From Beauty Products

August 28, 2013: 12:00 AM EST
Procter & Gamble said it has removed DEP phthalates from the company's beauty products, according to P&G Communications executive Scott Heid. While DEP is a safe phthalate, the company decided to stop using it in the manufacture of its products because of the potential for consumers to mistake DEP for other phthalates that are banned. At present, 70 percent of P&G Beauty products are phthalate-free, the company said.
"P&G Beauty Issues Ingredient Update", Happi, August 28, 2013, © Rodman Media
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No7 Launches Lift & Luminate Day & Night Line Of Anti-Aging Skincare Products

August 28, 2013: 12:00 AM EST
Boots’ private-label cosmetics brand No7 launched the Lift & Luminate Day & Night Serum line of skin-care products. Developed to deal with signs of aging, uneven skin tone, lines and wrinkles, and loss of skin firmness, the product is clinically proven to reduce the appearance of age spots, the company said. Boots said it worked with a panel of experts around the world to independently test the product’s effectiveness. Feedback from 76 participants in an eight-week trial conducted by the company revealed 90 percent reduction in their general pigmentation, 84 percent said line and wrinkles became less visible, and 90 percent said they saw improvement in their skin texture.
"No7 from Boots introduces Lift & Luminate Day & Night Serum ", PR Newswire, August 28, 2013, © PR Newswire Association LLC
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BEAUTY BUSINESS
Brands
Marketing
Private Label
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EMEA
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Unilever Wins Marketer Of The Year At First Asia-Pacific Smarties Mobile Marketing Awards

August 27, 2013: 12:00 AM EST
Unilever won the Marketer of the Year in Mobile award at the Smarties Apac Awards organized by the Mobile Marketing Association. Already on its ninth year globally, the group’s first for the Asia-Pacific region saw various nominees including entries from India. Hindustan Unilever’s Active Wheel Rural Missed Call Campaign for the Active Wheel brand won a Gold award.
"Smarties Apac 2013: Unilever, Mindshare top table in inaugural edition", Campaign India , August 27, 2013, © Haymarket Media Ltd.
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BEAUTY BUSINESS
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Asia-Pacific

Henkel One Of The Most Important Companies In Mexico, Business Magazine Says

August 27, 2013: 12:00 AM EST
Henkel is ranked one of the most important companies in Mexico for the fifth consecutive year in 2013 by Expansión, the leading business magazine in the country. Aimed at providing an overview of the leading corporations in Mexico, the list of the country’s 500 most important companies is compiled by the magazine based on the results of an annual survey it conducts. Henkel is also included in the magazine’s list of the 100 largest multinational corporations in Mexico.
"Henkel among the 500 most important companies in Mexico", Henkel, August 27, 2013, © Henkel AG & Co. KGaA
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BEAUTY BUSINESS
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Mexico

ASA Bans Advertising For Nivea Anti-Aging Cream For Misleading Claims

August 27, 2013: 12:00 AM EST
The UK’s Advertising Standards Authority banned an advertisement for the Nivea Vital anti-aging cream which used a digitally enhanced image of a 62-year old woman. Model Cindy Joseph’s photo was digitally retouched to make her look 20 years younger her age. After receiving complaints against the advertisement, the ASA conducted a probe. Results of the investigation revealed manufacturer Beiersdorf had failed to present evidence supporting the product’s advertising claims.
Sean Poulter, "Banned, Nivea ad that made model of 62 look younger: Watchdog bans advert after it misled customers over effects of using anti-ageing cream", Daily Mail, August 27, 2013, © Associated Newspapers Ltd
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Johnson & Johnson Revamps Management, Business Operations In China; Appoints Local Chairman

August 27, 2013: 12:00 AM EST
Johnson & Johnson appointed Jesse Wu as chairman of its J&J China business unit as part of the company’s reorganization of its management team and business operations in China. Wu will be reporting directly to Johnson & Johnson chairman and CEO Alex Gorsky. Also part of the company’s reorganization in the country, each general manager of the company’s China units will report to Wu although the units will still be responsible for determining their respective business strategies.
Ransdell Pierson, "UPDATE 1-J&J puts Chinese businesses under local chairman", Reuters, August 27, 2013, © Thomson Reuters
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Growing Online Market Prompts Retailers And Consumer Goods Companies To Expand Ecommerce Operations

August 26, 2013: 12:00 AM EST
In the United States and Canada, 62 percent of consumers shop online regularly, with 60 percent of them buying beauty and personal care products online, according to a survey by AT Kearney. Siemer & Associates’ global study forecast online sales to grow 17.5 percent to $963 billion in 2013, accounting for 9.3 percent of retail sales by 2016. Aware of this growing trend, traditional retailers and consumer goods companies are expanding their online business operations. Target Corp. acquired online beauty retailer DermStore Beauty Group, while Procter & Gamble said it allocates 25–35 percent of its marketing budget to online and social media marketing. Avon announced plans to expand customer engagement online, while Estée Lauder said its online business grew 24 percent worldwide, driven by its more than 340 marketing and ecommerce websites in more than 50 countries.
Tom Branna, "Online, All the Time", Happi, August 26, 2013, © Rodman Media
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Estée Lauder Focuses More On Emerging Markets To Spur Sales Growth

August 25, 2013: 12:00 AM EST
With sales slowing down in the United States, cosmetics company Estée Lauder Cos. is focusing on emerging markets, including Latin America and China, and expanding airport sales to ensure future sales growth. Although the company reported record revenue of over $10 billion, with profits rising 20 percent to more than $1 billion in fiscal 2013, sales grew at a low rate of 5 percent during the period. Estée Lauder CEO Fabrizio Freda has implemented cost-cutting initiatives, including a 6 percent workforce reduction, helping the company’s stock to rise by 13 percent in the past 12 months.
Adrianne Pasquarelli, "Estée Lauder applies more lip service abroad", Crain’s New York Business, August 25, 2013, © Crain Communications Inc.
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Estée Lauder Launches Digital Marketing Campaign For New Skincare Product

August 22, 2013: 12:00 AM EST
Estée Lauder launched its The Beauty of Night global digital marketing campaign for the new Advanced Night Repair Synchronized Recovery Complex II serum for skin rejuvenation. Created by design agency HUSH, the website will let women share their beauty habits and other nighttime experiences. Women can post personal messages and avail of a special offer for a Beauty of Night sampler or service online.
"Estée Lauder Unveils “The Beauty of Night” Global Digital Experience ", ADland.tv, August 22, 2013, © Adland
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Personal Care Markets Post Strong Growth In China And Japan, Kline Says

August 22, 2013: 12:00 AM EST
In 2013, the natural personal care markets in China and Japan are growing, with the Chinese market posting a growth of almost 25 percent and Japan seeing growth of about 5 percent, according to market research firm Kline. In China, the market growth is driven by the culture-driven popularity of traditional Chinese medicine, increase in transparency in product safety and health-related issues, and rising levels of disposable income. Although natural products account for a smaller portion of Japan’s personal care market, the segment is seeing strong sales increases in natural shampoos, conditioners, and personal cleansing products. Products that are truly natural are showing higher growth rates than those of their merely natural-inspired counterparts.
Nancy Mills - Industry Manager, Consumer Products, "Natural Personal Care Markets Flourishing in China and Japan", Kline Blogs, August 22, 2013, © Kline
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L'Oréal Expands Africa Presence; Other Cosmetics Giants Not Far Behind

August 22, 2013: 12:00 AM EST
L'Oréal Group is expanding its business operations in Africa, as demand grows strongly for international cosmetics brands from the continent's growing middle class. L'Oréal has acquired subsidiaries in Nigeria, Egypt, and Kenya in the past two years, as well as established distribution hubs in South Africa, Ghana, and Morocco. Africa's top 18 cities are forecast to have a combined spending power of $1.3 trillion, according to the Economist Intelligence Unit. Euromonitor International expects the beauty and personal care market in the Middle East and Africa to grow by $7 billion in 2012–2017. Estée Lauder is also expanding its operations in Africa. With a market capitalization of about $20 billion, and reporting an 84 percent increase in fourth-quarter profit, driven by growing sales in emerging markets, such as China and Brazil, Estée Lauder opened its first MAC store in Lagos, Nigeria, in 2013.
Zeenat Moorad , "L'Oreal believes Africa is open for business", Financial mail, August 22, 2013, © BDFM Publishers (Pty) Ltd
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Gen Y Women More Receptive To Skincare Products' Anti-Aging Claims, Study Shows

August 22, 2013: 12:00 AM EST
Among women ages 25–34 years old, or Generation Y, 39 percent said they consider anti-aging benefits as an important feature of skincare products, according to market research firm The NPD Group, Inc. In comparison, 19 percent of women in the 18–24 years age group said the same thing. Also, Gen Y women are more trusting of products’ anti-aging claims, with only 33 percent of them saying many anti-aging products are ineffective. In contrast, among women over 35 years, 44 percent said many anti-aging products promise more than they deliver.
Larissa Jensen , "Don’t Smile, It Ages You", NPD Group Blog, August 22, 2013, © NPD Group, Inc.
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Unilever, University Of Liverpool Partner To Develop Renewable Chemicals For Manufacturing Applications

August 22, 2013: 12:00 AM EST
Unilever partnered with the University of Liverpool to launch a research project aimed at developing the next generation of renewable chemicals from biomass. Chemicals that would be developed would be used in the manufacture of the consumer goods giant's home and personal care product lines. With emphasis on developing chemicals from the surplus sugars, fats, oils, and carbohydrates produced as by-products and forestry wastes, the project will create a center of excellence in the identification of renewable ingredients, the partners said. To be located at the University of Liverpool, the project center will employ rapid high-throughput research methods.
"Scientists to develop renewable chemicals for products of the future", Unilever, August 22, 2013, © Unilever
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Unilever Sees Growth In Egypt Despite Growing Unrest In The Country

August 21, 2013: 12:00 AM EST
Unilever CEO Paul Polman said his company’s business had grown across the board in Egypt despite the ongoing unrest in the country. Other companies, such as General Motors, BASF, and Electrolux, are saying their operations have been adversely affected by the growing violence in the country, which saw its GDP grow 2 percent in the fiscal year ending June 2013 and its budget deficit widen to over 13 percent of output. Unilever said it posted double-digit growth across the Middle East and North Africa. Unilever employs 4,500 people in Egypt, which still offers enormous growth potential, the company said.
Gillian Duncan, "Unilever holds nerve over Egypt", The National, August 21, 2013, © The Abu Dhabi Media
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BB Cream Becoming More Popular Among US Women; Mascara Used Most Often, Mintel Study Shows

August 21, 2013: 12:00 AM EST
In the United States, BB cream product launches increased by almost 50 percent in 2013, compared with 2012, according to market research firm Mintel. Results of the company's survey showed 29 percent of women said they are wearing BB cream, compared with 68 percent who said they wear foundation. However, use of BB cream rose from 24 percent in 2012 to 29 percent of women in 2013. Mascara is the most popular color cosmetics product, with 53 percent of respondents saying they are wearing it. Data revealed that many women include various beauty products in their makeup routine, with 48 percent saying they wear lip gloss; lipstick,45 percent; eye liner, 45 percent; foundation; 45 percent; and blusher, 43 percent.
"BB Cream product launches in US increase nearly 50% since 2012", Mintel, August 21, 2013, © Mintel Group Ltd.
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Mailed Samples Make Customers 10 Times More Likely To Buy Cosmetics After Trying, Birchbox Study Shows

August 21, 2013: 12:00 AM EST
Customers are 10 times more likely to purchase beauty products after receiving samples sent to their home, according to a study by beauty subscription service Birchbox. Results of the study showed more than 50 percent of its subscribers purchase full-size products after receiving their tester box of cosmetics in the mail. Due to the success of its business model, Birchbox has been able to raise almost $12 million in venture capital from investors. Birchbox expects its online sales to triple in 2013, according to company co-founder and co-CEO Katia Beauchamp.
Sadie Whitelocks, "The secret to beauty retail success? How customers are TEN TIMES more likely to pay for full-size cosmetics after trying a sample", Daily Mail Online, August 21, 2013, © Associated Newspapers Ltd
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Korean Pop Culture's Popularity Drives Global Demand For Korean Cosmetics

August 20, 2013: 12:00 AM EST
The popularity of Korean pop culture around the globe is driving demand growth for Korean cosmetics brands in international markets. Already established in China, Japan, and Southeast Asia, Korean cosmetics brands are gaining market shares in Europe and North America. Smaller brands have followed, using high-tech manufacturing processes to develop products for overseas markets. This trend has helped the domestic cosmetics and beauty market to grow at around 10 percent each year. Some of the leading Korean cosmetics brands include NeoPharm, which makes the ATOPALM range of skincare products; GENIC, which manufactures the CEL-DERMA line of skincare products; and GENERALBIO, which develops new biomaterials based on microorganisms and other natural and functional ingredients.
"Korea’s Cosmetics Industry Rides the Korean Wave — Part 1", Advanced Technology & Design KOREA, August 20, 2013, © Advanced Technology & Design KOREA
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Procter & Gamble CEO Lafley's 35 Percent Digital Spend Quote Proves Correct

August 20, 2013: 12:00 AM EST
When Procter & Gamble Co. chairman and CEO A.G. Lafley said during a recent earnings call that his company spends up to 35 percent of its marketing budget on digital marketing, not a few analysts and observers expressed disbelief. After all, the consumer packaged goods industry puts more emphasis on TV and magazine advertising, lagging the wider market in terms of spending on digital. Also, Kantar Media data revealed the company spent 6.8 percent of its $2.9 billion media budget on online display advertising in 2012. A closer look at industry data, however, would reveal that Lafley’s figures were accurate.
Jack Neff, "Does P&G Really Drop 35% Of Its Marketing Dollars On Digital?", Advertising Age , August 20, 2013, © Crain Communications
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L’Oréal Reviews US Digital Media Account

August 20, 2013: 12:00 AM EST
L’Oréal announced it is reviewing its digital media planning and buying account in the United States. Managed at present by Publicis Groupe’s Moxie unit, the account’s review is part of the cosmetics company’s evaluation of the return on investments it is getting from its spending on digital marketing, which has risen significantly in the past years. L’Oréal said it is seeking proposals from other agencies; however, Moxie plans to defend the account.
Jack Neff, "L'Oreal Puts U.S. Digital Media Up for Review", Advertising Age, August 20, 2013, © Crain Communications
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