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L'Oreal Works With YouTube Star To Launch New Brand

August 16, 2013: 12:00 AM EST
L'Oréal Luxe group and Michelle Phan launched the makeup line em michelle phan, which was developed by Phan with input from her online community. Michelle Phan has built an online community of followers with her story-driven makeup tutorials. She is now the #1 beauty guru on YouTube with nearly one billion views and 4.5 million subscribers. L'Oréal Luxe calls em michelle phan a startup-style brand that will be available at www.emcosmetics.com. The line took two years to develop and will launch with over 250 products including 36 shades of eyeshadow, blush and lipstick themed around life moments such as “Love Life,” “Day Life,” “Party Life” and “Night Life.”
PRNewswire, "em michelle phan, the new makeup brand co-created by beauty expert Michelle Phan and her community, launches", PRNewswire, August 16, 2013, © PRNewswire
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BEAUTY BUSINESS
Online
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Worldwide
North America
United States of America

Despite Recent Good News, European Economy Not Likely To Improve Soon, Says Henkel CEO

August 15, 2013: 12:00 AM EST
In an interview with Bloomberg reporters, Kasper Rorsted, CEO of Henkel AG said Europe’s economy is the only one he really worries about, even though the  European Union reported recently that the region has finally emerged from a record-long recession during the quarter, led by France and Germany. Rorsted noted that Europe still has 28 million people out of work, and can’t rely on population increases or lower fuel prices to boost the economy. He said in the longer term a free trade agreement with the U.S. might provide an answer to the problem.
Lauren Coleman-Lochner , "Henkel CEO Sees No Short-Term Catalyst for Europe Rebound", Bloomberg, August 15, 2013, © BLOOMBERG L.P.
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Mexico's Skincare Market Expected To Post Healthy Growth To 2017, Study Shows

August 15, 2013: 12:00 AM EST
Mexico’s skincare market is forecast to see strong growth up to 2017, according to market research firm Canadean. Data from the report “The Future of the Skincare Market in Mexico to 2017” showed the country’s fast recovery from the 2009 economic crisis has driven growth in the skincare sector. Volume is expected to expand with a compound annual growth rate of 4.4 percent in terms of volume and a CAGR of 4.1 percent in terms of value. Facial care products account for 55.5 percent and 55.4 percent of the market in terms of value and volume, respectively. Body care accounts for less than half of the segment; however, it is forecast to post the highest growth in the market.
"Mexico to See Quality Skin Care Growth", Skin Inc, August 15, 2013, © Allured Business Media
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BEAUTY BUSINESS
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Mexico

Estée Lauder Reports Sales, Profit Increases In 4Q, Fiscal 2013

August 15, 2013: 12:00 AM EST
Estée Lauder posted strong fourth quarter and 2013 fiscal year (ended June 30) financial results. Net sales for the year set a record at $10.18 billion, a five percent increase over last year. Profit for the year rose 19 percent to $1.02 billion, compared with $856.9 million last year. Net profit per share climbed 20 percent to $2.58, compared with $2.16 in the prior year. Fourth quarter net sales rose seven percent to $2.41 billion. CEO Fabrizio Freda said the company’s sales growth was “greater than global prestige beauty”; he said the company enhanced its business in skin care, emerging markets and fast-growing distribution channels.
"The Estée Lauder Companies Reports Record Fiscal 2013 Fourth Quarter and Full Year Results", News release, Estée Lauder, August 15, 2013, © The Estée Lauder Companies
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L’Oréal To Purchase Chinese Cosmetic Facial Mask Company

August 15, 2013: 12:00 AM EST
L’Oréal has offered to purchase Chinese cosmetic facial mask supplier Magic Holdings International Ltd. for approximately $842.4 million ($0.84 a share), the companies announced. Magic’s MG facial mask brand is one of China’s leading brands in the category, one of China’s fastest growing beauty sectors. Company sales in 2012 were approximately $200 million, up 29 percent from 2011. The transaction must be approved by the Ministry of Commerce of the People’s Republic of China (MOFCOM).
"L’Oréal announces proposal to acquire Magic Holdings in China", News release, L’Oréal, August 15, 2013, © L'Oréal
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Avon Sees Mixed Results In 2Q 2013; Plans To Drive Growth And Reduce Costs

August 15, 2013: 12:00 AM EST
Avon Products reported net sales of $2.45 billion, an operating profit margin of 8.2 percent, and net income margin of 1.39 percent in the quarter ending June 30, 2012. Beauty products account for more than 70 percent of the company's net sales. Reported revenues from the segment declined 2 percent despite a 2 percent increase in constant dollar revenue driven by higher average orders. Fashion products, which include fashion jewelry, watches, and apparel, accounted for 16.8 percent of sales in the quarter, down from 17.1 percent in the same quarter of 2012. Sales for the quarter reached $415 million, down from $430 million in 2012 and $511 million in 2011. Home products, including housewares and leisure products, accounted for 10.7 percent of net sales during the quarter, higher than 9.3 percent in the previous year.
"A Look At Avon Products And Its Plans To Spur Growth", Trefis, August 15, 2013, © Trefis
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Prestige Beauty Market Strong In U.S. And UK; Weak In France, Italy, And Spain, 1H 2013 NPD Study Shows

August 14, 2013: 12:00 AM EST
The world market for prestige beauty products posted varying results in the first half of 2013, according to market research group The NPD Group, Inc. In the United States, the market grew 8 percent during the period, with revenue reaching $5 billion. In Europe, the UK market grew 6 percent to £803 million in sales of prestige beauty products; however, the markets in France, Italy, and Spain continued facing challenges. Skincare and makeup drove growth in the U.S. market, posting sales of $1.8 billion and $2 billion, respectively; the fragrance segment saw slower growth at 4 percent to reach $1.1 billion in sales. In Europe, fragrance accounted for the largest share of sales, with 43 percent in the UK; France, 62 percent; Italy, 40 percent; and Spain, 51 percent.
"The Tale of Two Markets in Prestige Beauty", NPD, August 14, 2013, © The NPD Group, Inc.
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Spain

Procter & Gamble Reports Profit Grew By Almost 50 Percent In India For Quarter Ending June 2013

August 14, 2013: 12:00 AM EST
Procter & Gamble reported its net profit in India increased 47 percent to Rs 52 crore for the quarter ending June 2013, compared with a net profit of Rs 35 crore in the same quarter of 2012. During the same period, the company reported net sales rose 35 percent to Rs 423.08 crore from Rs 313.09 crore of the same period in the previous fiscal year. Total sales for the whole year grew 30 percent to Rs 1,685 crore from Rs 1,295 crore in the previous year.
PTI, "P&G net profit up 47% at Rs 52 cr in Q4", The Hindu Business Line, August 14, 2013, © The Hindu Business Line
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Indian Consumers' Obsession With Fair Skin Drives Growth In Skin-Whitening Market

August 14, 2013: 12:00 AM EST
In 2012, Indians consumed 233 tonnes of skin-whitening products, driven by their obsession with fair skin. Started in 1978 with Unilever's launch of the Fair & Lovely brand of skin-whitening cream, the market grew to reach $432 million in value, according to market research firm ACNielsen. Unilever's first skin-whitening cream has paved the way for an endless line of whitening face cleansers, shower gels, and even vaginal washes that their makers claimed work to lighten the surrounding skin. The market for skin-whitening products was growing at 18 percent each year, ACNielsen data also showed. India's leading cricket players and Bollywood celebrities often endorse these products, further driving the public's fixation with whiter skin.
Monisha Rajesh , "India's unfair obsession with lighter skin", The Guardian, August 14, 2013, © Guardian News and Media Limited
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Procter & Gamble Planning To Open Distribution Center In Dayton Area, Reports Say

August 12, 2013: 12:00 AM EST
Procter & Gamble is reportedly planning to build a distribution center in the Dayton area in Ohio. Several sources have confirmed that the company has been talking to area-based developers about a proposed distribution facility that is likely to be as large as 2 million square feet. Based on similar projects by P&G, the facility could be worth at least $100 million and would employ at least 1,000 people, and would have a huge impact on the local economy. P&G through a spokesperson, however, said it does not comment on rumors.
Olivia Barrow, "Exclusive: Procter & Gamble eyes Dayton-area for massive project", Dayton Business Journal, August 12, 2013, © American City Business Journals
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Unilever Renews IT And Telecommunications Outsourcing Deal With BT

August 8, 2013: 12:00 AM EST
Unilever extended its communications and technology outsourcing contract with BT, the third time the deal has been extended since BT first won the first contract in November 2002. Unilever’s commitment to using BT’s lineup of managed services worldwide forms part of its efforts to expand its business, while reducing its environmental and social impact. Besides the delivery of an integrated network that includes voice, data, video, and mobility services for the company’s 173,000 employees in around 100 countries, BT will also provide collaborative services, such as audio-conferencing and videoconferencing.
"Unilever Extends Partnership With BT To Help It Grow Sustainably", PR Newswire, August 08, 2013, © PR Newswire Association LLC
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Queries About Cosmetics Top Online Searches By UK Consumers Looking For Beauty Care Products In June 2013, Report Says

August 8, 2013: 12:00 AM EST
In the UK, consumers made more than 2.1 million online searches for beauty care products in June 2013, with 38 percent made using mobile devices, according to the latest data from Greenlight. Data from the market research firm’s “Beauty Sector Report – Issue 1” revealed online queries about make-ups were the most popular, aside from identifying the most popular search keywords used by consumers. Greenlight also said 1.3 million searches for beauty care products were made using computers and 816,481 came from consumers using mobile devices. Queries about hair care and fragrances were the second and third most popular online searches, with 31 percent and 15 percent respective shares. Searches about make-ups accounted for 36 percent of all beauty-related queries, with those about MAC cosmetics dominating.
"Browsing for beauty: Almost two in five beauty product searches made on mobile devices", Greenlight Digital, August 08, 2013, © Greenlight
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Procter & Gamble's Asia Revenue Equals Western European Sales, K-10 Report Shows

August 8, 2013: 12:00 AM EST
Asia accounted for $15.2 billion or 18 percent of Procter & Gamble’s annual revenue in 2012, according to the consumer goods company’s latest 10-K report filed with the U.S. Securities and Exchange Commission. This development makes Asia as large a market as Western Europe for P&G. Other information from the 10-K filing revealed Prestobarba has become the company’s latest billion-dollar brand, while the Braun brand of appliances was dropped from the billion-dollar brands list. Also, P&G reduced its total workforce by 4 percent to 121,000 employees worldwide, spending $615 million on severance packages for 3,450 workers in 2012.
Alexander Coolidge, "P&G: Asia ties W. Europe for No. 2 market", Cincinnati.com, August 08, 2013, © news.cincinnati.com
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L’Oréal Luxe's Growing Brands Gain Market Shares In Asia Pacific

August 8, 2013: 12:00 AM EST
L’Oréal Luxe’s beauty care brands, Kiehl’s, Biotherm, Helena Rubinstein, and Yves Saint Laurent, are seeing growing sales in China and other emerging markets in the Asia-Pacific region. First introduced in May 2006 at the Hong Kong International Airport, Kiehl’s is expected to become one of the top 3 skincare brands in the region soon despite its limited distribution, the company said. After a period of revaluation and redevelopment, the Helena Rubinstein brand of skincare products was re-launched by L’Oréal Luxe. Biotherm has also been transformed as a brand, supported by the “Beauty From The Deep” rebranding campaign. Also, the company revamped and repositioned its Yves Saint Laurent brand in China and other markets in the region.
Rebecca Mann, "L’Oréal Luxe's developing brands advance in Asia Pacific", The Moodie Report, August 08, 2013, © TheMoodieReport.com
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Asia-Pacific
China
Hong Kong
South Korea

Henkel Reports Net Income Grew 6.7 Percent In 2Q 2013

August 8, 2013: 12:00 AM EST
Henkel announced net income for the second quarter of 2013 increased 6.7 percent to €432 million from €405 million in the same quarter of the previous year. Earnings per preferred share grew from €0.91 to €0.96. Sales for the second quarter 2013 increased 1.9 percent to €4.286 billion, compared with the same quarter of the previous year. Organic sales, which exclude the impact of foreign exchange and acquisitions and divestments, increased 4.0 percent. Henkel’s Laundry and Home Care division posted organic sales growth of 5.8 percent, while the Beauty Care business achieved 2.8 percent and the Adhesive Technologies department posted 3.6 percent.
"Henkel records strong performance in second quarter", Henkel, August 08, 2013, © Henkel AG & Co. KGaA
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South Korean Cosmetics Shine In China, Post Strong Sales

August 7, 2013: 12:00 AM EST
South Korean cosmetics companies, including Amorepacific Corp., LG Household & Healthcare, and Able C&C, are seeing strong sales of their products in China’s beauty and personal care market, which is valued at $34 billion in 2013. Cosmetics brands owned by multinational companies, including L’Oréal and Procter & Gamble, are seeing strong competition from the Korean brands, which are seen by Chinese consumers as more suitable for Asians. Their affordable prices are also helping Korean cosmetics brands compete with their more famous international competitors.
Hyunjoo Jin, "Chic and cheap: China takes shine to South Korean cosmetics", Reuters, August 07, 2013, © Thomson Reuters
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Jonesboro City Council Approves Proposed Bonds For Unilever Expansion

August 7, 2013: 12:00 AM EST
The city council of Jonesboro in Arkansas voted unanimously to authorize $41 million in revenue bonds to help finance the continuation of Unilever’s expansion project at its manufacturing plant in the city. Unilever’s proposed expansion will not include construction of any new facilities; however, it will expand its product lines and use equipment relocated from recently closed Unilever plants in Melrose Park, Illinois, and Clinton, Connecticut. With 70–80 employees already hired, the expanded plant will hire additional employees by the middle of 2014, with hourly wages ranging from $14 for the least skilled jobs to $23 for more skilled positions.
Kenneth Heard , "Jonesboro OKs Unilever bonds $41 million to help company expand factory, hire 125", Arkansas Democrat-Gazette (Little Rock), August 07, 2013, © Arkansas Democrat-Gazette, Inc.
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BEAUTY BUSINESS
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Regulation
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Worldwide
North America
United States of America

Beiersdorf Posts Strong Sales Growth In First Half Of 2013

August 7, 2013: 12:00 AM EST
Beiersdorf reported group sales increased 6.6 percent in organic terms, and 3.3 percent in nominal terms, from €3.062 billion to €3.163 billion in the second half of 2013. Operating result excluding special factors reached €434 million, 11.2 percent higher than the previous year. Consolidated after-tax profit increased to €287 million. Organic sales growth for the Consumer Business Segment rose 6.5 percent. Sales increased 3.1 percent in nominal terms from €2.561 billion to €2.641 billion. Organic sales growth by brand saw NIVEA rising by 6.8 percent, Eucerin by 12.0 percent, and La Prairie by 5.3 percent. Sales by region varied, with Germany posting 2.7 percent increase, while Western Europe saw sales decline by 2.3 percent. Easter Europe also saw lower sales by 1.3 percent. Latin America posted strong sales growth at 19.9 percent, while North America saw 4.3 percent increase.
"Beiersdorf continues on its growth path", Beiersdorf, August 07, 2013, © Beiersdorf AG
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Procter & Gamble Plans To Bring Some Cincinnati Jobs To Costa Rica

August 7, 2013: 12:00 AM EST
Procter & Gamble Co. announced plans to lay off about 50 employees in its Customer Service Accounts Receivable department in Cincinnati, Ohio, starting in October 2013. Employees to be let go will be replaced by people who will be hired at existing P&G offices in San Jose, Costa Rica. Scheduled for completion by June 2015, the offshoring will spare about 15 administrator positions in the department.
Barrett J. Brunsman, "P&G to offshore Cincinnati jobs", Cincinnati Business Courier, August 07, 2013, © American City Business Journals
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BEAUTY BUSINESS
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Worldwide
North America
United States of America
Other

Estée Lauder Launches Digital Magazine On Flipboard, Promotes Relaunch Of Advanced Night Repair Serum

August 6, 2013: 12:00 AM EST
Cosmetics company Estée Lauder partnered with Hearst Magazines Digital Media to relaunch its Advanced Night Repair serum campaign through a digital magazine on social magazine app Flipboard. Featuring content from Hearst’s beauty editors, the Beauty Book digital magazine includes beauty tips from cosmetics experts and articles about the company’s research into beauty care. It also leverages Flipboard’s social media and interactive features to engage consumers.
Jen King , "Estée Lauder reinvigorates product awareness via mobile magazine", Luxury Daily, August 06, 2013, © Napean LLC
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BEAUTY BUSINESS
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Online
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Target Acquires Online Cosmetics Retailer DermStore

August 6, 2013: 12:00 AM EST
Target Corp. agreed to acquire online cosmetics retailer DermStore Beauty Group. As part of the transaction, DermStore will become a wholly owned subsidiary of Target and continue operating as DermStore.com. Target views the transaction as an opportunity for strategic growth. DermStore’s current chief executive officer will stay on as president of the subsidiary.
"Target to Expand Beauty Business Through Acquisition of DermStore", Target, August 06, 2013, © Target.com
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BEAUTY BUSINESS
Online
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Worldwide
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United States of America

Anti-Aging Products To Grow Into $291.9 Billion Market, Study Predicts

August 6, 2013: 12:00 AM EST
Sales of anti-aging products are forecast to reach $291.9 billion by 2015, according to market research firm Global Industry Analysts. This market growth is expected to be driven by changes in consumer trends, including demand for products that also treat age spots, hyperpigmentation, dry skin, and other signs of aging. With 52 percent of consumers increasingly concerned with skin cancer and preventing signs of aging skin, according to Mintel, demand is increaseing for products with ultraviolet ray absorbers. Demand is also growing for anti-aging products with natural ingredients, with the natural personal care market forecast to grow to $6.7 billion in 2015 in the U.S., and 76 percent of respondents showing interest in products with natural and organic ingredients, according to Mintel. Demand for smarter products that offer more than one benefit is also expanding, driven by changes in consumer lifestyle and working conditions.
Phillip Mitteness, "Anti-Aging: The Trends and Challenges in New Product Development", GCI Magazine, August 06, 2013, © Allured Business Media
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Revlon Agrees To Acquire Beauty Care Company The Colomer Group

August 5, 2013: 12:00 AM EST
Revlon, Inc. announced that its wholly owned subsidiary, Revlon Consumer Products Corporation, has agreed to acquire beauty care company The Colomer Group from CVC Capital Partners. Expected to close in the fourth quarter of 2013, the cash-basis acquisition is expected to expand Revlon’s presence in the professional salon channel. About 50 percent of TCG’s sales are in Europe, Middle East, and Africa, with 40 percent in the United States, and the remaining 10 percent in the rest of the world. 
"Revlon to Acquire The Colomer Group in All-Cash Transaction", Revlon, August 05, 2013, © Revlon Consumer Products Corporation
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Kanebo Recalls Skin-Whitening Products After Belatedly Acknowledging Complaints From Thousands Of Asian Consumers

August 4, 2013: 12:00 AM EST
Kanebo Cosmetics issued a recall of 54 types of its skin-whitening products in July 2013, following years of complaints from dermatologists and consumers in Japan and other countries in Asia since at least 2011. Kanebo belatedly publicly admitted it has received around 200,000 complaints, including from 4,061 consumers reportedly suffering from blotchy skin, with 1,828 suffering serious symptoms. The company has apologized for its failure to promptly act on the issue, in which profit was apparently the main issue, at a news conference and offered free checkups and medical advice for affected consumers. Aside from damaging the company’s corporate image and brand, the whole incident also caused harm to the other Japanese cosmetics companies.
"Kanebo and consumer protection", The Japan Times Limited, August 04, 2013, © The Japan Times Limited
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Mega Airless Sees Sustainable Packaging As Standard For Cosmetics Packaging

August 2, 2013: 12:00 AM EST
Sustainable packaging should be the norm in the cosmetics industry, according to Eric Desmaris, business development director of Germany-based packaging company Mega Airless. Desmaris also said “green packaging should not be special or optional packaging.” Mega Airless claims an increasing number of multinational and regional brand owners that believe in sustainability goals are adopting its neutral and 100 percent recyclable packaging solutions. Its airless packs offer enhanced protection for cosmetics formulations, while improving cosmetics companies’ ability to achieve their sustainability targets, the company said.
Andrew McDougall, "“Green packaging should be the norm, not an option”", Cosmetics Design , August 02, 2013, © William Reed Business Media SAS
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Procter & Gamble Takes Lead In Digital Marketing With Up To 35 Percent Of Marketing Budget

August 2, 2013: 12:00 AM EST
Procter & Gamble confirmed it is allocating 25–35 percent of its marketing budget to social media and digital advertising worldwide, with the highest rate assigned to its largest market, the United States. Citing research by market research firms IRI Group and Kantar Media, the Wall Street Journal reported that Procter & Gamble’s digital marketing budget allocation is much higher than the United States market average of 22.2 percent in 2012. Procter & Gamble is the world’s largest advertiser in 2012, with $9.3 billion spent worldwide, according to marketing-focused magazine AdAge. Other companies need to follow P&G’s lead in digital marketing, according to online marketing experts citing forecasts by eMarketing that American adults will spend more time with digital media than television viewing in 2013.
Lori Weaver, "Others should follow digital lead of world's largest advertiser", Digital Journal, August 02, 2013, © digitaljournal.com
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BEAUTY BUSINESS
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P&G Chief Exec Hints At Tough Measures To Turn Company Performance Around

August 1, 2013: 12:00 AM EST
Procter & Gamble could be taking some stern measures – including possibly some product divestitures – to right its financial ship, its chief executive has suggested. The company, which  reported a steep drop – 48 percent – in profit in the fiscal quarter that ended in June, is particularly concerned about its U.S. business, which has been criticized for emphasizing premium products over more affordable options. Chief Executive A.G. Lafley said the company also needs to ensure that its products are available everywhere people shop, including online and in small urban stores. Lafley said only a “handful” of its 25 consumer brands were performing really well.
Barney Jopson, "P&G chief raises prospect of product exits", The Financial Times, August 01, 2013, © The Financial Times Limited
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Avon Says Total Revenue Declined Slightly In Second Quarter 2013

August 1, 2013: 12:00 AM EST
Avon Products Inc. reported total revenue decreased 2 percent to $2.5 billion in the second quarter of 2013. In terms of constant dollar, however, sales increased 2 percent, driven by an increase in average order, which resulted from inflation in Latin America. Gross margin during the quarter was 62.7 percent, while adjusted gross margin was 63.3 percent, 40 basis points higher than the same period in the previous year. Operating profit reached $202 million, while operating margin was 8.1 percent. Adjusted operating profit was $239 million, with adjusted operating margin at 9.5 percent, higher by 300 basis points than the second quarter of 2012.
"Avon Reports Second‐Quarter 2013 Results", Avon, August 01, 2013, © Avon Products, Inc.
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Procter & Gamble Pledges To Focus On Improving Productivity And Value Creation

August 1, 2013: 12:00 AM EST
Procter & Gamble CEO AG Lafley promised to optimize the company’s mix of media as part of its efforts to improve marketing return on investment. Speaking during his first analyst call since he returned as CEO, Lafley also emphasized his company’s value creation strategy aimed at improving its sales performance. P&G will also aim to increase the efficiency of non-advertising marketing spending as part of its efforts to improve productivity and lower operating costs. Lafley said productivity will become part of the company’s systemic culture, with P&G looking for ways to improve its ability to measure, recognize, and reward productivity.
Lara O'Reilly, "P&G to place focus on 'value creation' to 'win' with consumers", Marketing Week, August 01, 2013, © Centaur Communications Ltd (a member of the Centaur Media plc group)
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Shiseido Announces Strong Sales Numbers For First Quarter Of Fiscal Year 2013

July 31, 2013: 12:00 AM EST
Shiseido Co., Ltd. reported net sales for the first quarter, which ended June 2013, of fiscal year 2013 increased 8.6 percent year on year to 162.4 billion yen. In the Japanese market, net sales grew 0.1 percent year on year, while overseas sales rose 1.5 percent in local currency terms, driven by the double-digit growth in China. Growth in yen terms reached 19 percent, driven by the Japanese currency’s depreciation. Operating income gained 9.9 billion yen from the previous year to reach 6.9 billion yen. Ordinary income reached 7.6 billion yen, an increase of 10.3 billion yen from the previous year. Net income for the quarter was 2.7 billion yen, 3.9 billion yen higher year on year.
"SHISEIDO Co., Ltd. FY2013 First Quarter Results and Outlook", Shiseido, July 31, 2013, © SHISEIDO Co., Ltd.
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Procter & Gamble Reports Better-Than-Expected Sales Growth For Fiscal Year 2013

August 1, 2013: 12:00 AM EST
Procter & Gamble Co. reported net sales increased 1.0 percent to $84.2 billion in fiscal year 2013, with foreign exchange having a -2 points impact. Organic sales increased 3 percent for the fiscal year, the company said. Unit volume growth contributed 2 percent to sales growth, according to the company, with pricing adding another 1 percent. Dilute net earnings per share from continuing operations reached $3.86, which is 24 percent higher than the previous year period. Without the non-core items, core earnings per share was at $4.05, which is 5 percent higher than the same period of the previous year. Procter & Gamble’s reported and core gross margin also increased by 30 basis points, with gross margin improving by about 160 basis points due to manufacturing and productivity savings.
"P&G Delivers Fourth Quarter Core EPS of $0.79, Organic Sales up 4%; Fiscal Year 2013 Core EPS of $4.05", Procter & Gamble, August 01, 2013, © Procter & Gamble
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Natura Cosméticos Reports Higher Consolidated Net Revenue In Second Quarter 2013

July 26, 2013: 12:00 AM EST
Natura Cosméticos S.A. reported consolidated net revenue grew 6.7 percent to R$1.715 billion in the second quarter of 2013 from R$1.608 billion in the previous year. Net income grew 11.7 percent, while EBITDA was 4.7 percent. Consolidated EBITDA margin contracted slightly by 50 basis points during the quarter. Internal free cash flow in the first half of 2013 was R$508.7 million, an increase of 12 percent from the previous year. International operations posted strong revenue growth and profitability gains, with EBITDA margin of 16.6 percent during the quarter, compared with 5.3 percent from the previous year.
"Natura Earnings Results 2Q13", Natura, July 26, 2013, © Natura
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BEAUTY BUSINESS
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Other
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Worldwide
Latin America
Brazil

Unilever Reports Strong Profit Growth In First Half Of 2013

July 25, 2013: 12:00 AM EST
Unilever reported sales grew 5.0 percent in the first half of 2013, with sales in emerging markets rising by 10.3 percent, slightly lower than the 10.4 percent in the previous quarter. Turnover rose 0.4 percent to €25.5 billion, with operating profit rising 14 percent to €3.9 billion. Net profit rose 13 percent to €2.7 billion. Volume growth was at 2.6 percent, with pricing higher by 2.3 percent. The company also reported turnover increased by 0.4 percent at €25.5 billion, with currency at 3.2 percent and disposals at 1.1 percent. Core earnings per share rose 4.0 percent to €0.76, with free cash flow reported at €1.3 billion. Also, during the period, Unilever increased its stake in its India unit Hindustan Unilever to 67 percent.
"Unilever First Half 2013 Results (Full Announcement)", Unilever, July 25, 2013, © Unilever
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Sales Of SPF Makeup And Skincare Products Post Strong Gains, Study Shows

July 25, 2013: 12:00 AM EST
Sales of makeup and skincare with sun protection factor or SPF rose 24 percent to $1.1 billion in US prestige department stores in June 2012 to May 2013, compared with three years ago, according to market research firm The NPD Group, Inc. Data from the report NPD BeautyTrends revealed skincare products account for most of the current growth in sales of products with SPF. Overall, sales of makeup with SPF increased in the year ending May 2012; however, due to the 56 percent drop in makeup with SPF 10, the segment posted a 5 percent drop during the period covered by the study.
"The NPD Group reports on SPF sales trends in skincare and makeup", The NPD Group, July 25, 2013, © The NPD Group, Inc.
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Demand For Anti-Aging Products Drives Growth In Facial Care Market In Brazil

July 15, 2013: 12:00 AM EST
Brazil’s skincare market has posted a compound annual growth rate of 11.4 percent in terms of value and 9.4 percent in terms of volume, according to market research firm Canadean. Although impressive, this performance was not good enough; hence, the segment was not included in the country’s top 5 health and beauty market segments for 2012–2017. Facial care, however, will post the highest growth at 12.4 percent and 10.4 percent, driven by growing demand for anti-aging products. Body care accounted for the largest share of the market with 50.2 percent and 49.0 percent of the market in terms of value and volume, respectively.
Andrew McDougall, "Anti-aging trends boosts skin care market in Brazil", Cosmetics Design , July 15, 2013, © William Reed Business Media SAS
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Men In India Find Beauty Parlors To Their Liking, Go For Facials And Spas

July 12, 2013: 12:00 AM EST
More men in India are visiting beauty parlors to avail of facials, spas, and other services, as the men’s grooming market continues growing. Beauty parlors are sprouting in the country’s upscale neighborhoods; however the middle class accounts for majority of beauty parlors’ customer base, according to Solai from the Stylemen Parlour in K.K. Nagar. While men in their forties and fifties put more emphasis on the experience and feel of the beauty services than on results, younger men prefer more trendy options, such as manicure and hair coloring and straightening. Beauty salons offer similar facials and beauty packages, only the prices vary.
A. Shrikumar, "Beauty maketh the boys", The Hindu , July 12, 2013, © The Hindu
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Beauty And Personal Care Industry Outperforms Rest Of The Market

July 12, 2013: 12:00 AM EST
Stocks of cosmetics and personal care products companies gained 32 percent in 2013, according to market research company IBD. Leading the industry’s expansion are anti-aging products maker Nu Skin Enterprise, which gained 19 percent, and Peers Prestige Brands and Inter Parfums, both of which rose 13 percent. In the United States, the industry achieved $68.7 billion in sales and $433.4 billion globally in 2012. Sales in the US are forecast to grow 3–4 percent over the next five years to reach $81.7 billion by 2017, according to Euromonitor International. Growth in the emerging markets has made up for the slowdown in Europe, North America, and Japan, and global sales are forecast to expand around 5 percent yearly to reach $562.9 billion by 2017.
Trang Ho, "Big On Beauty: How Cosmetics Corps Beats The Market", Investors, July 12, 2013, © Investor's Business Daily, Inc.
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L’Oreal Canada Switches Marketing Gears, Replaces Its Ad Agency

July 12, 2013: 12:00 AM EST
L’Oreal Canada is terminating its 15-year relationship with advertising agency ZenithOptimedia and has hired Toronto-based GroupM to handle its media buying and planning duties beginning in 2014. The account spans 31 beauty brands, representing a third of the beauty and cosmetics market in Canada. According to L’Oreal, the agency switch did not come about because of dissatisfaction with ZenithOptimedia, nor does it mean a shift in media strategy. The company will continue to focus on content marketing, with brands integrated into videos, events and shows that viewers are already paying attention to. Most of L’Oreal’s ad budget remains devoted to television. But digital is the fastest-growing segment of its marketing spend. 
Susan Krashinsky, "In the eyes of beholders: L’Oreal takes new ad approach", The Globe and Mail, July 12, 2013, © The Globe and Mail Inc.
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Unilever Expands Production Capacity In Russia, Eyes Growth In Fragrance And Cosmetics Segments

July 5, 2013: 12:00 AM EST
Unilever is investing €36 million to double the production capacity of its Severnoe Siyanie factory in Saint Petersburg, Russia, from 90,000 tonnes to 180,000 tonnes. As part of the expansion project, the personal care company will build a 7,500-square meter production facility and renovate and expand the production-and-warehouse facility into a 30,000-square meter complex. Unilever plans to launch by the end of 2014 the fragrance and cosmetics products developed at the facility and which are designed specifically for the Russian market. Fragrance is one of the top 3 health and beauty segments in the country, growing at CAGRs of 10.1 percent and 8.9 percent in value and volume, respectively, according to data from market research firm Canadean.
Michelle Yeomans, "Unilever targets Russian markets with facility investment", Cosmetics Design , July 05, 2013, © William Reed Business Media SAS
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Kanebo Recalls Skin-Whitening Products Due To Skin Discoloration Concerns

July 4, 2013: 12:00 AM EST
Japan-based cosmetics company Kanebo announced it is recalling 54 skin-whitening products across Asia following complaints they are causing discoloration that persists even after consumers had stopped using them. There had been 39 complaints from customers in Japan, a company spokesman said. According to the company, the products contain 4HPB, a synthetic version of a natural compound developed by Kanebo. Covering 4.36 million products shipped in Japan and 370,000 in overseas markets, including Taiwan, Hong Kong, South Korea, and the Philippines, the recall will include 450,000 products already sold to consumers.
"Japan's Kanebo recalls cosmetics over skin stain fears", Google, July 04, 2013, via AFP, © AFP
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Cosmetics From South Korea Invade Japan

July 4, 2013: 12:00 AM EST
Cosmetics products from South Korea attracted significant attention during the Cosme Tech 2013 trade show in Tokyo, Japan. Although a significant portion of the display area was dominated by Japanese vendors’ products, a pavilion featuring innovative and cutting-edge products from South Korea occupied a strategic location. Many products, which are already available in Korea, are yet to be released in the Japanese market. New skin care products featured during the show included those from Elishacoy and DTS MB. Also, Hongwon Costech is launching the Callicos brand, which contains snail mucin, an ingredient noted for its ability to improve skin moisture, recover and improve collagen levels.
Simon Pitman , "Korean cosmetics take Japan by storm", Cosmetics Design Asia, July 04, 2013, © William Reed Business Media SAS
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High-End Personal Care Market Booms In India Despite Slowing Economy

July 3, 2013: 12:00 AM EST
India’s market for premium skincare and hair-care products and services continues to expand despite the economic slowdown in the country. Leading retailers, such as Future Group and Spencer, report their skincare lineups are growing faster than 20 percent on a same-store basis, boosted by high-end brands, such as Olay, Neutrogena, L’Oréal, and Jergens. Data from FICCI-PwC showed the wellness services industry has posted consistent growth rates of 20–25 percent for the past few years, while personal care has been the fastest-growing segment in the consumer business of electronics vendors Philips and Panasonic, growing at rates higher than 50 percent year on year. People’s desire to look and feel good during times of economic gloom is driving the high-end market, according to social observers and psychologists.
Writankar Mukherjee & Ratna Bhushan, "Premium skin and hair care products & services business growing at fast pace despite economic slowdown", Economic Times, July 03, 2013, © Times Internet Limited
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HBA Expo: Is Bonicel, The World’s First Probiotic-Derived Personal Care Ingredient, About To Get Traction?

June 29, 2013: 12:00 AM EST
Ganeden continues to promote its Bonicel ingredient as “the first science-backed, probiotic-derived personal care ingredient that has been shown to significantly improve the appearance of seven common signs of aging” but thus far it’s not included in any personal care products in-market. This looks set to change.
 
In a conversation with Business360, Ganeden indicated that two personal care products that contain Bonicel should launch in the next 30-days, with others following.
 
Clinical claims                                           
 
Bonicel was first announced some 15 months ago in Ganeden’s March 1, 2012 press release (‘Breakthrough Research Paves Way For New Probiotic-Based Topical, Anti-Aging Cosmetic Ingredient’) which claimed that “Bonicel, improves skin hydration, elasticity, under eye puffiness and reduces fine lines and wrinkles in humans.”
 
Bonicel is made in part from the extra-cellular material produced during the fermentation of GanedenBC30 (Bacillus coagulans GBI-30. 6086), a patent-protected probiotic ingredient that is used in over 75 food, beverage and animal health products. While some press about Bonicel mentions it is a probiotic, it is in fact a probiotic-derived ingredient, derived from GanedenBC30's fermentation broth and not itself a probiotic.
 
On February 5, 2013 (New Research Confirms Bonicel's Multiple Anti-Aging Benefits) Ganeden released another press release that touted the results of a third-party study that found that Bonicel “improved skin hydration, elasticity, under eye puffiness and reduced fine lines and wrinkles in humans and even reduced redness.”
 
At the June 18-20 HBA Global Expo ‘Where Beauty Meets Business’ in New York Ganeden  promoted Bonicel and Business360 inquired about the status of personal care products containing the ingredient. Business360 also called both Ganeden and Glanbia (the North American distributors) to find out the status of products planning to use Bonicel.
 
Products expected in 30-days   
 
Natalie Martinez, Business & Product Development Manager at Ganeden indicated that a number of suppliers are working to incorporate Bonicel in various applications. She was unable to disclose the manufacturer’s and applications but did say that the first products incorporating Bonicel should be in market in about 30 days.
 
Primary applications look to be as an anti-aging agent for skin and face care but the company is working with suppliers on a range of other applications including hand health, (leveraging anti-aging properties for moisturizers and topical cleansers), oral health (leveraging the ingredients anti-inflammatory properties) as well as after-sun and scalp health.
 
Ganeden claims that four clinical trials have been run on Bonicel. None of these are publicly available but Ms. Martinez says the company is in the process of preparing one for publication. Sales literature made available at trade shows and accessible at www.bonicelforbeauty.com provides summary results of a clinical study that looked at bar soap that had Bonicel at a 5% inclusion rate.
 
The material states that the study found a 35% reduction in facial redness in 14-days but such an improvement is hard to see from the before and after photos the company provides, where any changes looks frankly imperceptible (see right).
 
First mover advantage
 
At this point Ganeden believes it has a unique proposition with a probiotic-derived ingredient that is supported by clinical studies and does not yet have strong competition. Ganeden has been working with both large and small manufacturers and has not signed exclusives.
 
Recent trademarks filings
 
On March 1, 2012 Ganeden filed to use the Bonicel name on a wide range of personal care categories and on June 10, 2013, it filed to trademark the Bonicel logo design.
"Ganeden At HBA Expo, June 2013", June 29, 2013, © Ganeden Biotech
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L’Oréal Partners With Asian University for Women, Supports Women's Education in Bangladesh

June 28, 2013: 12:00 AM EST
L’Oréal signed a memorandum of understanding with the Asian University for Women to jointly promote women’s education in Bangladesh. As part of the agreement, L’Oréal committed to support the AUW and its students by providing two scholarships of US$15,000 per year per student for four years and offering summer internship opportunities in the company’s subsidiaries in India, China, and Vietnam. Also, the company will appoint a mentor for each of the sponsored students and will give AUW students access to L’Oréal’s recruitment opportunities.
"A partnership in support of women’s higher education - L’Oréal and Asian University for Women sign MOU", L’Oréal, June 28, 2013, © L’Oréal
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India, China Drive Growth In Global Men's Grooming Market, Study Shows

June 27, 2013: 12:00 AM EST
India and China are driving growth in the global men’s grooming market, according to market research firm Kline. Latest data revealed the world market for male grooming is valued at $13.4 billion, growing almost 4 percent, and is forecast to reach $15.5 billion at the manufacturers’ level by 2017. Although Western Europe remains the largest market for men’s grooming products in the world, growth is not as dynamic. In Asia, Japan and South Korea are the most developed markets; however, India and China hold the greatest growth potential, according to Kline.
Andrew McDougall, "Men’s grooming in Asia boosted by developing trends in India and China", Cosmetics Design, June 27, 2013, © William Reed Business Media SAS
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Procter & Gamble Adopts Terra Technology's Demand Forecasting Tool

June 27, 2013: 12:00 AM EST
Procter & Gamble Co. began implementing Terra Technology’s Multi-Enterprise Demand Sensing platform across its global operations to improve its ability to meet the needs of retailers and consumers. MDS is designed to enable Procter & Gamble to improve its ability to forecast demand for its products, using data coming from sources, such as poin-of-sale systems, channel inventory, and warehouse withdrawals. Procter & Gamble global demand planning executive Rafal Porzucek said the company is implementing MDS, “because traditional demand planning is simply not sufficient anymore.”
"Terra Technology’s Multi-Enterprise Demand Sensing Implemented Globally by Procter & Gamble", Business Wire, June 27, 2013, © Business Wire
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Chanel Grabs Top-Brand Spot In China's Luxury Market, Report Says

June 27, 2013: 12:00 AM EST
Chanel is the most sought-after global luxury brand in China, according to the second edition of the study World Luxury Index China. Data showed the brand has overtaken rival Louis Vuitton, due mainly to increased consumer interest in various product segments. Also, Louis Vuitton’s ranking is limited by the fact that interest in the brand comes mostly from the fashion market. Also, the report showed that interest of China’s consumers is dominated by automobiles, 53.5 percent; beauty products, 22.7 percent; and fashion, 14.9 percent. In the beauty segment, Estée Launder, Lancôme, and Dior have retained their spot as the top 3 brands, with Lancôme overtaking Dior at the number 2 position. Skincare accounted for about 60 percent of all beauty-related searches, according to data from the report.
"The World Luxury Index™ China 2013 : The Most Sought-After Luxury Brands", Digital Luxury Group, June 27, 2013, © Digital Luxury Group
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More Than Half Of UK Men Are Using Skincare Products, Survey Shows

June 27, 2013: 12:00 AM EST
In the UK, 54 percent of men are using moisturizer and one in 10 is applying make-up, according to latest data from marketing company J. Walter Thompson. Results of the study also showed a third of male respondents said they are using hair-removal products, 9 percent said they are using foundation, and 11 percent admitted to using bronzer. Also, 29 percent of men said they have had manicures, 24 percent reported having facials, and 13 percent admitted to having their eyebrows waxed. Aimed at determining current trends in the men’s cosmetics market, “The State of Men” survey covered 1,000 men aged 18 and over in the UK and U.S.
"Half of UK men are regularly using skincare, according to latest research", Professional Beauty, June 27, 2013, © Trades Exhibitions Ltd
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Procter & Gamble CFO Tells Analysts Company To Focus On Beauty Business

June 15, 2013: 12:00 AM EST
Procter & Gamble Co. chief financial officer Jon Moeller told investment analysts during his investor presentation in Paris that the consumer goods company will focus its attention on its hair and makeup business. Moeller's presentation emphasized two of the company's key brands: Pantene shampoo and Olay facial cream. Combined, these brands account for $5 billion in the company's annual revenue and 25 percent of its beauty care sales. Also, Moeller acknowledged that the brands have been underperforming, but the company is taking actions, such as new product launches, to build market share. Some market analysts have criticized P&G for its focus on expanding product options within existing brands instead of creating new product categories.
Dan Monk, "Procter & Gamble Co. (PG) CFO Jon Moeller says beauty care is 'where the focus needs to be'", WCPO Digital , June 15, 2013, © Scripps Media, Inc.
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Coty's Share Of Global Cosmetics And Personal Care Markets Falls

June 12, 2013: 12:00 AM EST
Cosmetics company Coty's value share in the global beauty and personal care market declined by 10 basis points in 2012, according to market research firm Euromonitor International. Results of Euromonitor's analysis showed Coty's fall can be attributed to its failure to innovate as fast as the market requires. Also, Coty launched an ambitious expansion program based on acquisitions, which exposed the company to different markets and product categories. Coty's expansion moves also limited the company's ability to focus on certain market segments as illustrated by its acquisition of the Philosophy and Tjoy skincare brands which belong to contrasting markets. Challenges in China which the company faces as it strives to develop its business in that market have also adversely affected the company's business operations and bottom line.
Oru Mohiuddin, "Diluted Market Focus Affects Coty’s Performance", Euromonitor International, June 12, 2013, © Euromonitor International
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