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CeraVe Joins Other Brands Benefiting From Strong Interest In Facial Cleansers

September 25, 2017: 12:00 AM EST
Sales of prestige skin care products in chain drug stores grew six percent in the second quarter to $1.4 billion, thanks to newer brands and products, and innovation from smaller players that meet a consumer desire for “discovery and uniqueness," according to NPD Group. Mass market skin care grew as well, albeit slightly slower than premium offerings. Facial cleansers and moisturizers – favorites of Millennials –  have supplanted anti-aging products. L’Oréal’s CeraVe line of facial cleansers benefited from social media-generated word-of-mouth buzz, as sales bumped up 12.8 percent. Other facial cleansers performing well included Biore (up 13 percent), Olay (up 8 percent), and Garnier's Skinactive line, whose volume rose 65 percent.  [Image Credit: © CVS  ]
"K-Beauty, natural brands bring energy to skin care", Chain Drug Review, September 25, 2017, © Chain Drug Review
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L’Oreal And Nestle To Face Ownership Options For French Cosmetics Group

September 22, 2017: 12:00 AM EST
The death of heiress Liliane Bettencourt, whose family owns 33 percent of L’Oréal, will likely force key investors to address the company’s ownership structure. Nestlé SA, which owns 23 percent, agreed with the Bettencourts not to increase stakes in L’Oréal, but this agreement expires in six months.  Nestlé could then purchase a controlling share in L’Oréal but is more likely to sell its stake, a move that would force L’Oréal to accept wider (and potentially hostile) ownership or opt to invest further funds in the company, boosting earnings per share but reducing funds available for acquisitions.  For Nestlé, the resulting 24 billion euro windfall brings a dilemma. It could payout funds to appease shareholders and especially its activist investor, Third Point, or use the funds to double down on its currently lackluster food and nutrition business.
Andrea Felsted et al., "A Historic Moment for L'Oreal... and Nestle", Bloomberg Gadfly, September 22, 2017, © Bloomberg Finance L.P.
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More Women In US Prefer Facial Skincare Products With Natural Ingredients

September 18, 2017: 12:00 AM EST
In the US, 40‒50 percent of women who use facial skincare products prefer those with natural or organic ingredients, according to The NPD Group's Women's Facial Skincare Consumer Report 2017. Data from the market research group also revealed that women actively search for products that do not have harmful ingredients, such as fragrances, parabens, and sulfates. Also, 48 percent of women believe they have sensitive skin, compared with 44 percent in 2015.
"For Nearly Half of U.S. Women Using Facial Skincare Products, Ingredients Determine their Purchases", NPD, September 18, 2017, © The NPD Group, Inc.
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Skincare Products Get A New Lease On Life Around The Globe

September 8, 2017: 12:00 AM EST
L'Oréal sees the skincare market reviving globally, especially in China, and that’s a “good phenomenon,” according to CEO Jean-Paul Agon. Skincare sales at the company are up by single-digit rates. Active Cosmetics was its second-biggest growth story in the first six months of the year, behind L’Oréal Luxe, which grew 15.4 percent. The consumer division, however, was its second-weakest in the first half of fiscal 2017, with sales up 3.8 percent to about $6.4 billion, hurt particularly by mass market makeup in the U.S. L'Oréal thinks the reasons might be “a certain transfer into higher-price items and maybe a reallocation of [consumer] spending" to different categories.
Jamie Hammon, "L'Oréal Benefits From 'Skin-Care Comeback,' With Mass Makeup Slowing", Rose Sheet, September 08, 2017, © Informa plc.
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Acquisitions, Divestitures, Keep L'Oréal Growing

September 1, 2017: 12:00 AM EST
L'Oréal is rapidly gaining on household and personal products market leader Unilever in the international top 30 companies list compiled by Happi.com. Despite the company’s agreement to sell The Body Shop to Natura – “the best new owner we could imagine to nurture the brand,” said CEO Jean-Paul Agon – the company grew in size after acquiring CeraVe, AcneFree, and Ambi from Valeant for $1.3 billion. Last year, L'Oréal acquired IT Cosmetics for $1.2 billion and Atelier Cologne. The Active Cosmetics unit, parent of CeraVe and other product lines, saw sales rise 5.7 percent, driven by a 12 percent increase in La Roche-Posay sales. The division is also ramping up efforts to reduce skin cancer with an array of sun care products. [Image Credit: © L'Oréal ]
"The International Top 30: An emerging trend", News release, Happi.com, September 01, 2017, © Rodman Media
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Americans Are Woefully Ignorant Of How To Properly Wash Their Faces

September 1, 2017: 12:00 AM EST
A national survey sponsored by L’Oréal’s CeraVe skincare brand found that 80 percent of Americans are not cleaning their faces properly, making mistakes like using bath wash or hand soap, water alone, or not washing at all. The survey of 1,000 adult Americans found that 60 percent feel uninformed about proper skin cleansing methods. Nearly two-thirds had no idea what ingredients to look for when purchasing a facial cleanser, and fewer than 10 percent had heard of the skin ingredients called ceramides – a key ingredient of the CeraVe line of products – that restore moisture and strengthen the skin barrier. A N.Y dermatologist said the results are “troubling” but not surprising. [Image Credit: © Dr. Cynthia Bailey ]
"National Study Reveals Up to 80 Percent of Americans Wash Their Face Incorrectly", News release, CeraVe, September 01, 2017, © CeraVe
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European Union Grants CeraVe Hypoallergenic Trademark

August 25, 2017: 12:00 AM EST
The European Union’s Intellectual Property Office in August granted a trademark to Valeant Sp. z o.o. sp. j., Coria Laboratories, Ltd., for “CeraVe Hypoallergenic.” The trademark (016162851) was granted by the Office for Harmonization Trademark and Design in the Internal Market. Valeant, former owner of the CeraVe brand, filed for the trademark In December 2016.
"EU OHIM Trademark and Design grants trade mark "016162851 - CeraVe HYPOALLERGENIC" to Valeant Sp. z o.o. sp. j., Coria Laboratories, Ltd.", Plus Patent News, August 25, 2017, © Plus Media Solutions Private Limited
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Sephora Launches Online Store In India

August 23, 2017: 12:00 AM EST
Beauty retailer Sephora has launched its own online store, sephora.nnnow.com, in India. Combining the company's online and offline stores, the online channel will let the brand reach consumers across the country. According to the company, the online store will feature makeup, skincare, fragrances, bath, and body care products, as well as the rest of its product lineup.
Bhagyashree Nair, "Sephora goes online exclusively only at sephora.nnnow.com", ETRetail.com, August 23, 2017, © ETRetail.com
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Ulta Beauty's Loyal Customers Empower It Against Amazon, Other Online Retailers

August 23, 2017: 12:00 AM EST
Ulta Beauty's loyalty program, as well as the unique experience the beauty retailer offers to its customers, will allow it to compete with online retailer Amazon, according to investment bank and securities firm Jefferies. Also, Ulta Beauty's business model can hold its own against the growing threat of online retail. Jefferies analyst Stephanie Wissink said the company's loyalty program has 24.5 million members and they account for 90 percent of the retailer's total sales.
Tae Kim, "Here's one retailer that may survive the Amazon onslaught because its customers are so loyal", CNBC.com, August 23, 2017, © CNBC LLC
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L’Oreal Seeks U.S. Marketing Chief For CeraVe Products

August 18, 2017: 12:00 AM EST
L’Oreal is looking to hire a New York-based marketing manager for its CeraVe anti-aging cosmetics line. The company’s help-wanted ad describes a manager who will create and execute sustainable, consumer-centric plans involving all elements of the marketing mix; launch new products; coordinate U.S. marketing campaigns; and conduct routine business analysis, among other responsibilities. The company prefers someone with an MBA, but at least an undergraduate marketing degree, and several years’ experience. [Image Credit: © CeraVe ]
"JOB POSTINGS: Manager, Marketing – CeraVe", L’Oreal, August 18, 2017, © L’Oreal
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Estee Lauder Posts Strong Revenue Gains In FY 2017

August 18, 2017: 12:00 AM EST
Estee Lauder reported net sales grew 9 percent to $2.89 billion in the quarter ending June 30, 2017, compared with the same period in the previous year. According to the beauty brand, recently acquired Too Faced and BECCA contributed about 3.5 percentage points to the total sales growth. For fiscal 2017 fourth quarter, the company reported net earnings of $229 million, compared with $94 million in the previous year. Diluted net earnings per common share was $.61, compared with $.25 in the same period of the previous year.
"The Estee Lauder Companies Delivers Strong Fiscal Year 2017 Results", The Estée Lauder , August 18, 2017, © The Estee Lauder Companies
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The Body Shop Launches Natural Hair And Scalp Care Product In Sri Lanka

August 17, 2017: 12:00 AM EST
Beauty retailer The Body Shop has launched the Fuji Green Tea Cleansing Hair Scrub haircare product in Sri Lanka. Inspired by a combination of Japanese green tea, mint menthol, salt crystals, and Community Trade honey from Ethiopia, the product is designed to deal with scalpcare problems caused by exposure to heat, pollution, and other harmful external factors. Faithful to the company's “Enrich, not Exploit” corporate principle, the product's ingredients are fully vegetarian, free from parabens, and sourced from sustainable suppliers.
"Refreshingly clean hair with The Body Shop’s Fuji Green Tea Hair Scrub", Daily Mirror, August 17, 2017, © Wijeya Newspapers Ltd.
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L'Oreal India Poaches Vodafone's Media Chief Neel Pandya

August 11, 2017: 12:00 AM EST
L'Oreal India has named Vodafone India's national media and digital head Neel Pandya as its new national head of media. Neel joined Vodafone in 2014 as media manager and was promoted to national media and digital chief in 2016. He managed the launch of the telecommunications company's launch of a Twitter Brand Emoji, India's first, for Vodafone's IPL Campaign in 2016.
Satrajit Sen, "Exclusive: Vodafone’s National Media Head Neel Pandya Joins L'Oréal India", adageindia, August 11, 2017, © Times Internet Limited
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Estee Lauder Names Richard Leader Of Travel Retail For Europe, Middle East, And Africa

August 7, 2017: 12:00 AM EST
Estee Lauder Companies announced the appointment of Bruno Richard as vice president and general manager of the company's Travel Retail Europe Middle East and Africa division. Effective August 1, 2017, Richard replaces Sue Fox who was named general manager of the company's Japanese affiliate. Richard reports to Travel Retail Worldwide SVP and general manager of business operations, Israel Assa.
Helen Pawson, "Bruno Richard named Estée Lauder Vice President General Manager Travel Retail EMA", The Moodie Davitt Report , August 07, 2017, © The Moodie Davitt Report
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Revlon Reports Strong Net Sales Jump In 2Q 2017

August 7, 2017: 12:00 AM EST
Beauty brand Revlon, Inc., reported net sales jumped 32.1 percent to $645.7 million in the quarter ending June 30, 2017, compared with the same quarter in the previous year. On a Pro Forma basis, however, net sales declined 5.3 percent, or 3.9 percent XFX, compared with the same quarter in the previous year. According to the company, operating income was $4.7 million, compared with $52.4 million, or $21.6 million on a Pro Forma Adjusted basis, compared with $50.8 million. Revlon reported net loss of $61 million, compared with $86.8 million in the previous year.
"Revlon Reports Second Quarter 2017 Results", Revlon, August 07, 2017, © Revlon Consumer Products Corporation
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CeraVe Achieves Cult Status On Social Media

August 5, 2017: 12:00 AM EST
L’Oréal’s CeraVe is the drugstore skincare brand that is followed closely on Reddit’s huge Skincare Addiction thread patronized by dermatologists, experts, and full-blown skin care lovers. It has turned CeraVe into a “legit cult-favorite and desert-island necessity.” Launched in 2005 with a cleanser, moisturizing lotion, and moisturizing cream, the brand has expanded to include a full line of moisturizers, cleansers, body washes, and SPFs. Visitors to the Skincare Addiction thread on Reddit focus on CeraVe’s ability to get rid of stubborn breakouts and moisturize oily skin without aggravation. A key to the success is CeraVe’s low-cost, easy-to-find products that work with all skin types.
Ruby Buddemeyer, "How CeraVe Became the Internet’s Cult-Favorite Drugstore Brand", stylecaster, August 05, 2017, © stylecaster
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L’Oréal Displays Beauty Innovations At Paris Technology Show

August 3, 2017: 12:00 AM EST
L’Oréal showcased its latest beauty innovations at Viva Technology Paris in June. Lancome, Kerastase, L'Oreal Paris, La Roche-Posay and L'Oreal Professionnel showed how they applied advanced digital technologies to create personalized services for consumers. The L’Oréal display area in the center of the Hall of Tech also included a startup corner highlighting partnerships with young companies in the area of human resources. Among other innovations, the company presented in Europe for the first time Lancome's Le Teint Particulier Custom Made Foundation that matches skin tone to a personalized foundation at the point of sale. [Image Credit: © L’Oréal  ]
"L’Oreal presents its connected beauty innovations and partnerships with startups at Viva Technology Paris 2017 ", L’Oréal, August 03, 2017, © L'Oréal
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Active Cosmetics Are A Rising Star In L’Oréal’s Firmament

August 2, 2017: 12:00 AM EST
L’Oréal’s half-year financial results shed some light on the hot “active cosmetics” trend in the beauty industry. The company’s Active Cosmetics Division showed a sales growth rate of 11.1 percent through the end of June, and 4.6 percent like-for-like. Profit was 26.7 percent, compared with 27.7 percent a year ago. The division includes brands with derma/pharmaceutical profile and image, and are sold in healthcare outlets. They include Vichy, La Roche-Posay, and SkinCeuticals, “dermocosmetics” developed and endorsed by dermatologists, pediatricians, cosmetic doctors. North America is the number one contributor to the division's growth, reflecting the successful integration of CeraVe into the portfolio, and the dynamism of SkinCeuticals and La Roche-Posay. [Image Credit: © CeraVe ]
Lucy Whitehouse, "Spotlight on active cosmetics: growth accelerating as trend becomes mainstream", CosmeticsDesign-Europe.com, August 02, 2017, © William Reed Business Media Ltd
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Proper Skin Cleansing Is Apparently Not An American Talent

August 1, 2017: 12:00 AM EST
A national survey or 1,000 American men and women found that facial cleansing – and skin cleaning in general – is not a major skill. Eighty percent err when cleansing their face, according to the CeraVe study, which also found that: 60 percent of Americans are generally unaware of how to properly cleanse their skin; more than half use bath wash or hand soap to cleanse their face (a third use only water); and nearly two thirds (65 percent) are clueless when it comes to ingredients to look for when shopping for a facial cleanser. Sixty-three percent don't know what those ingredients are for. The survey was conducted by the makers of skincare brand CeraVe to mark National Cleanse Your Skin Week. [Image Credit: © CeraVe ]
"National Study Reveals Up to 80 Percent of Americans Wash Their Face Incorrectly", News release, CeraVe, August 01, 2017, © CeraVe
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L’Oréal CEO Says CeraVe Line Doing Well, Will Expand To Europe In 2018

July 28, 2017: 12:00 AM EST
In a conference call with analysts in June discussing six-month sales and profit performance, L’Oréal CEO Jean-Paul Agon [left] commented on the progress of its newly-acquired CeraVe skincare product line. According to Agon, CeraVe is “already contributing with double-digit growth” in the U.S. market. And the company’s globalization strategy includes a plan to expand CeraVe to Europe beginning in mid-2018, “because we need some time to adapt the formulations for Europe, but it would be deployed next year.” CeraVe was acquired from Canada’s Valeant in March 2017 and is now part of the fast-growing Active Cosmetics division. [Image Credit: © L’Oréal ]
"L'Oreal's (LRLCF) CEO Jean-Paul Agon on First Half 2017 Results - Earnings Call Transcript", Seeking Alpha, July 28, 2017, © Seeking Alpha
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Unilever Employs Accenture To Build Cloud Computing-Based Trade And Marketing Solutions

July 25, 2017: 12:00 AM EST
Unilever signed a contract with Accenture to deploy the Accenture Cloud Trade Promotion Management and Accenture Cloud Retail Execution to create a common system for the consumer goods company's trade and marketing operations. Based on the Salesforce cloud computing platform, the Accenture Cloud solutions integrate Accenture's expertise on front-office consumer goods industry and Salesforce's top customer relations management solution with native cloud, mobile, social, data science, and artificial intelligence capabilities. Also, Accenture will provide Accenture NewsPage, which would let Unilever create a single system for managing the company's network of third-party distributors.
"Unilever to Enhance Trade and Sales Activities By Moving to Accenture Cloud Solutions for Consumer Goods Built on the Salesforce Platform", Business Wire, July 25, 2017, © Business Wire, Inc.
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Shiseido Recalls Body Wash Products

July 21, 2017: 12:00 AM EST
Shiseido Company, Limited, announced a voluntary recall of a number of body wash products manufactured in January to July, 2017. Made at the company's Kuki Factory in Japan, the 23 products covered by the recall announcement include Kuyura Body Care Soap H JB, Kuyura Body Care Soap H, and Kuyura Body Care Soap YJB. Some of the products are marketed in Japan, others in overseas markets, and others sold in both local and international markets.
"Notice and Apology Regarding Voluntary Recall of Body Wash Products", Shiseido, July 21, 2017, © Shiseido Company, Limited
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Sephora Opens First Studio Store Concept In Boston

July 21, 2017: 12:00 AM EST
Beauty retailer Sephora opened its first Sephora Studio, the company's smallest store, in Boston, Massachusetts. Integrating various digital tools, the store concept aims to provide customers with optimized shopping experience during and after store visit. Also, the store offers the company's digital-enhanced beauty care services, including the Sephora Digital Makeover Guide. According to the company, the store's consultants are equipped with the highest levels of certification they can earn from Sephora.
"SEPHORA Pioneers New Retail Innovation with Launch of First Small-Format Concept Store", Business Wire, July 21, 2017, © Business Wire, Inc.
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Unilever’s Tinkering With Marketing Spending Boosts 2nd Q Profits

July 20, 2017: 12:00 AM EST
Unilever’s second quarter financials mostly beat Wall Street expectations – sales growth fell three percent short – but the rise in profit came from cuts in marketing expenses. In April the company said about $2.3 billion of its planned three-year $7 billion cost-cutting program would come from marketing and overhead. During the first half of this fiscal year, however, nearly a third of the cuts came only from marketing; half were attributable to both marketing and overhead. The company is cutting ad agency and production spending, but marketing spending overall will rebound in the second half when 60 percent of Unilever's new-product launches for the year will take place. [Image Credit: © Unilever ]
Jack Neff, "Unilever Cuts Agency Fees and Production Costs, but a Media Surge Looms", Advertising Age, July 20, 2017, © Crain Communications
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Unilever Posts Stronger Revenue Performance In 1H 2017

July 20, 2017: 12:00 AM EST
Unilever said net profit rose to €3.11 billion, or $3.58 billion, for the six-month period ending June 30, 2017, compared with €2.51 billion in the previous year. According to the company, revenue grew to €27.72 billion from the previous year's €26.28 billion. Gross margin improved by 40bps to 43.1 percent, pushed by margin-accretive innovations and acquisitions, the company said.
"Unilever 2017 First Half Results", Unilever, July 20, 2017, © Unilever
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Revlon Awards Global Ad Account To Grey; Media Account Goes To MediaCom

July 20, 2017: 12:00 AM EST
Revlon, Inc., said it has named Grey as the beauty brand's global creative agency of record. Also, the company announced it has appointed MediaCom as its global media agency of record. Grey will manage the company's most important brands, Revlon and Elizabeth Arden, as well as the rest of its brand lineup.
"Revlon Selects WPP’s Grey and MediaCom as Global Agencies of Record", Revlon, July 20, 2017, © Revlon Consumer Products Corporation
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Asia Pacific Accounts For Over A Third Of Anti-Aging Beauty And Personal Care Products In 2016

July 20, 2017: 12:00 AM EST
In 2016, 37 percent of new anti-aging beauty and personal care products were launched in the Asia Pacific region, up from 28 percent in 2014, according to Mintel. Data from the market research firm report, Mintel Global New Products Database, revealed the region is second only to Europe, which accounted for 40 percent of product launches. South Korea and Japan accounted for 23 percent each of total product launches in the APAC region, with China ranking third with 22 percent. Thailand and India, with 7 percent and 6 percent, respectively, round up the top 5 markets in Asia for product launches.
"Over one third of the world’s anti-ageing beauty and personal care products were launched in Asia Pacific in 2016", Mintel, July 20, 2017, © Mintel Group Ltd.
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Walgreens Adds UK Brand Sleek MakeUP To Beauty Lineup

July 17, 2017: 12:00 AM EST
Walgreens said it will start selling Sleek MakeUP brand of cosmetics at more than 150 stores and on Walgreens.com. One of the fastest-growing mass-market beauty brands in the UK, Sleek MakeUP was acquired by Walgreens Boots Alliance in 2015. Created by a local beauty entrepreneur in East London, the brand seeks to cater to the needs of women of color who were faced with limited choices in the cosmetics market.
"Walgreens Continues to Differentiate its Beauty Offering with Sleek MakeUP", Walgreens.com, July 17, 2017, © Walgreens.com
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L’Oréal Uses Bioprinting To Create Live Skin Tissue For Cosmetics Testing

July 8, 2017: 12:00 AM EST
The FDA may not require it, but L’Oréal says it has ended live-animal testing of new cosmetics and has turned to alternatives such as EpiSkin, a lab-grown human flesh-like tissue available in more than 100,000 samples representing numerous ethnicities. And lately the company has partnered with biotech Organovo to apply advanced 3-D bioprinting technology (left) to create skin tissue with hair follicles. The technology would allow mass production of skin tissue for lab testing. It is not unlikely that the 3-D printed tissue will become, like EpiSkin, a profit center for L’Oréal. [Image Credit: © L’Oréal  ]
Laura Goldman, "L’Oreal Grows Human Skin to Replace Animal Testing", Care2, July 08, 2017, © Care2.com, Inc.
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Vaseline Is World's Leading Brand Of Hand And Body Care Products, Nielsen Says

July 3, 2017: 12:00 AM EST
Unilever's Vaseline is the leading brand of hand and body care products in the world, according to Nielsen Retail Measurements. Data from the market research firm revealed the brand sold 470 million units in 2016, more than any other brand. Also, the brand's growth has been driven by several factors, including its Vaseline Healing Project initiative, and by strong sales in emerging markets, such as India, Indonesia, and Thailand.
"Vaseline named the world’s No.1 hand and body care brand", Unilever, July 03, 2017, © Unilever
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Prospects For Anti-Aging Market Are Rosy

June 28, 2017: 12:00 AM EST
The global anti-aging market will experience a compound annual growth rate of 7.7 percent over the next eight years, according to a report. Researchers break out future performance of anti-aging products, devices, and treatments, by demography (viz., Generation X, Baby Boomer, Generation Y). Anti-wrinkle products, which include dermal fillers and botox, will grow significantly because of healthy sales of botulinum toxin, and a growing awareness among women about anti-wrinkle milk, moisturizers, creams, gels and serums. The report, “Global Anti-Aging Market Size, Share, Development, Growth and Demand Forecast to 2025,” is available from P&S Market Research. [Image Credit: © L’Oréal]
"Anti-Aging Market to Witness 7.7% CAGR till 2025: P&S Market Research", News release, P&S Market Research, June 28, 2017, © P&S Market Research
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Procter & Gamble, Unilever Spend Less On Digital Advertising

June 26, 2017: 12:00 AM EST
Procter & Gamble and Unilever reduced their digital advertising spend by 41 percent and 59 percent year-over-year, respectively, according to MediaRadar. Data from the advertising intelligence company revealed P&G ran ads on 978 websites in January to May 2017, a 33-percent drop from the same period in the previous year. Unilever ran ads on 540 sites in 2017, an 11-percent decline from the same period in 2016. Although P&G ran ads on 712 of the same websites in 2016 and 2017, the company cut its spending on 560 sites by 79 percent overall. Unilever cut its spending by 57 percent on 155 of the 268 sites it ran ads on during the period.
Tanya Dua, "Two of the world’s biggest advertisers are cutting back on their digital ad spend", Business Insider, June 26, 2017, © Business Insider Inc
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Failure To Arouse Interest In The U.S. Drives L’Oréal To Pull Decléor Brand

June 26, 2017: 12:00 AM EST
French skincare brand Decléor, which L’Oréal acquired along with Carita from Shiseido three years ago, failed to make a dent within the professional channel in the U.S. After a year, the brand was carried at only 350 locations in the U.S., despite a brand refresh that included a new logo, new advertising and promotional materials, and a U.S. ambassador, celebrity facialist Mzia Shiman. L’Oréal pulled the plug on the aromatherapy-based face and body products in the U.S. market as of June 30. [Image Credit: © Decléor ]
Rachel Strugatz , "L’Oréal Benches Decléor Brand in the U.S.", Women’s Wear Daily, June 26, 2017, © Penske Media Corporation
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Timely, Relevant – Very Short – Ads Are L’Oréal’s Social Media Holy Grail

June 26, 2017: 12:00 AM EST
Market research suggests that consumers using smartphones are swiping quickly past – i.e., ignoring – ads adapted from traditional 30-second TV spots. Enter a new ad standard, pushed by social media platforms like Facebook and Snapchat: the super short six-second spot. L’Oréal has partnered with Google on an initiative – dubbed “Media Bets” – that will analyze data on the fly on what content is currently engaging eyeballs on YouTube. L’Oréal will use the data to develop timely, relevant, responsive six-second ads to run just before videos. Company media chief Nadine McHugh says it’s all about “a value exchange with consumers” in a seriously “time-challenged environment.” [Image Credit: © L’Oréal / YouTube ]
Mike Shields, "L'Oreal is changing its ads because you have no attention span", Business Insider , June 26, 2017, © Business Insider Inc
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Still Not Sure How To Measure The ROI Of It All, L’Oréal Pushes On With Digital

June 23, 2017: 12:00 AM EST
Despite a lack of evidence that its forays into the digital world are actually paying off, L’Oréal continues to do what it can to stay current with advanced technologies. In fact, it wants to do ”even better.” The latest of these technologies is voice search – think Amazon’s Alexa and Apple’s Siri – which the company believes will account for a fifth of all online searches within 18 months. The company wants to be at the forefront of that trend, a unique opportunity to tell consumers about brands and their stories. Lurking in the background of all this, however, is the ongoing “obsession” with the ROI of digital which, the company admits, it hasn’t quite figured out how to measure. [Image Credit: ©   L’Oréal]
Leonie Roderick, "L’Oreal prioritises voice search as AR struggles to ‘ramp up’", Marketing Week, June 23, 2017, © Centaur Communications Ltd (a member of the Centaur Media plc group)
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Sephora Digital SEA Adopts Advanced Personalization Technology

June 22, 2017: 12:00 AM EST
Sephora Digital SEA (formerly Luxola) is implementing Dynamic Yield's personalization technology stack technology to tailor individualized e-commerce experiences to each customer.  Sephora SEA is responsible for the e-commerce activities of Sephora across South East Asia, Australia and New Zealand. With Dynamic Yield’s technology, Sephora SEAcan provide individualized beauty product recommendations on website pages based on country and prior shopping behavior. A Sephora SEA spokesman said personalization is “at the core of our e-commerce strategy.” [Image Credit: © Sephora ]
"Sephora SEA Chooses Dynamic Yield to Personalize the Entire Customer Journey", News release, Dynamic Yield, June 22, 2017, © Dynamic Yield
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Unilever Continues To Realign Agency And Ad Tech Relationships

June 21, 2017: 12:00 AM EST
Unilever and British advertising/PR firm WPP announced they are investing in mobile creative management platform Celtra. The move furthers Unilever’s goal of boosting and applying creative technology innovation while reducing associations with ad agencies. As Unilever gets more involved in data and ad tech it has cut the costs and complexities of advertising across its 400+ brands. Celtra has been providing top brands with the ability to connect operational data, creative, advertising and analytics. The company has worked for several years with Unilever and with WPP’s Mindshare. [Image Credit: © Celtra ]
Alison Weissbrot , "Unilever And WPP Stake A $15 Million Claim In Celtra – A Clear Sign Of The Agency/Client Relationship In Flux", AdExchanger, June 21, 2017, © AdExchanger.com
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Shiseido Partners With Microsoft Japan To Develop Virtual Makeup App For Teleworking Women

June 18, 2017: 12:00 AM EST
Shiseido worked with Microsoft Japan to develop TeleBeauty, an application designed to make a person appear on computer monitors as if he or she is wearing makeup. According to the cosmetics company, the app is aimed at women who telework and use computers to teleconference with their employers, clients, or coworkers. Offering users four basic patterns, natural, trend, cool, and feminine, the app can also correct skin tones and “de-focus other parts than face.”
Motokazu Matsui, "Shiseido aids working women with virtual cosmetics app", Nikkei, June 18, 2017, © Nikkei Inc
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L’Oréal Takes An Expensive Flier On Virtual Reality Technology

June 16, 2017: 12:00 AM EST
L’Oréal’s Beauty Lab (left), located at the company’s year-old west-side Manhattan headquarters, serves as an experimental virtual reality center to explore a technology some industry observers call “the next frontier of fashion and beauty.” Though virtual reality has taken baby steps in fashion and cosmetics, it has yet to make significant inroads, and has had almost no impact on sales. Skeptics note that researchers aren’t even sure what to do with test data that are collected. L’Oréal, however, has invested a lot of money in its VR glasses, floor-to-ceiling VR screen, and additional 3-D modeling screens. Not so much to wow consumers, but to advance and enhance internal research. [Image Credit: © L’Oréal ]
Hilary Milnes , "How L’Oreal uses virtual reality to make internal decisions at its New York HQ", Digiday, June 16, 2017, © Digiday Media
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Tech Advances Power Sun-Safety Skin Patch, App From La Roche-Posay

June 15, 2017: 12:00 AM EST
L'Oréal brand La Roche-Posay, a start-up that exhibited at June’s Viva Technology show in Paris, presented the most recent developments of its My UV Patch. Designed to improve sun safer behavior and help minimize sunburns, the wearable patch features an adhesive comprising photosensitive dyes that change color when exposed to UV rays. A related app indicates varying levels of sun exposure. A smart algorithm incorporates personalized data (viz, geolocation, phototype of skin tone, hair and eye color) to advise when to reapply sun screen, seek shade, etc. According to company data, regular use has led to positive changes in sun-related behavior: 63 percent experienced less sunburn, 37 percent used more facial sunscreen, and 31 percent spent more time in the shade. [Image Credit: © La Roche-Posay ]
"La Roche-Posay Reveals the Latest Edition of its My UV Patch at Viva Technology Paris", News release, La Roche-Posay, June 15, 2017, © La Roche-Posay
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Unilever To Expand Indonesian Production Capacity

June 7, 2017: 12:00 AM EST
Unilever Indonesia will spend half a billion dollars over the next five years to improve its production capacity in nine factories in the country. The money will be spent to improve production capacity for products in its two main businesses: home and personal care, and food and refreshment. The company posted first quarter sales of $812 million, representing a year-on-year growth 8.9 percent.  [Image Credit: © Unilever Indonesia ]
"Unilever Indonesia to Invest $500 Million in Production Expansion", Indonesia Investments, June 07, 2017, © Van der Schaar Investments
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Beauty Industry Leaders Keep Supporting Paris Agreement Despite US Departure

June 6, 2017: 12:00 AM EST
L'Oreal, The Estee Lauder Companies, Unilever, and other leading cosmetics and personal care companies still support the Paris Agreement, despite U.S. President Donald Trump's decision to remove the country from the climate change deal. Prior to Trump's announcement, beauty and personal care companies were calling on the president to remain committed to the deal, which strengthens the United Nations Framework Convention on Climate Change.
Deanna Utroske, "Beauty industry stands up for Paris Climate Agreement, despite US plans to back out", Cosmetics Design, June 06, 2017, © William Reed Business Media SAS
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Fosun Should Find Better Takeover Target Than The Body Shop, Analyst Says

June 6, 2017: 12:00 AM EST
Chinese conglomerate Fosun International should discontinue its efforts to secure the rights to buy The Body Shop, the beauty retailer owned by L'Oreal SA. There are several reasons why Fosun would be better off looking for another company to acquire. These include the lack of positive forecasts for the retail sector, including the beauty retail segment. Also, The Body Shop's emphasis on all-natural beauty products no longer differentiates it from rival retailers, as reflected by the 4.8 percent drop in revenue in 2016. With a price tag of $900 million, which is expected to significantly jump once a likely bidding war starts, The Body Shop is quite expensive.
Shelly Banjo, "Fosun's Fruitless Beauty Search", Bloomberg, June 06, 2017, © Bloomberg LP
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U.S. Haircare Market Expanded In 2016, Report Says

June 1, 2017: 12:00 AM EST
In 2016, the value of the hair care market in the United States rose 0.6 percent to approximately $13 billion, compared with 2015, according to Kline Group. Data from the market research firm Kline Group's Cosmetics & Toiletries USA report revealed leading brands have expanded their product lineups to include products designed for consumers of all races and ethnic groups. Also, the shampoo segment expanded in 2016, with growth driven by rising demand for shampoos developed to deal with particular haircare needs.
"U.S. Hair Care: New Growth, New Benefits", Global Cosmetic Industry, June 01, 2017, © Allured Business Media
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Unilever Claims Politics Keeps It From Employing Refugees In UK

May 28, 2017: 12:00 AM EST
Politics has prevented Unilever from hiring refugees in the UK, according to the company's CEO, Paul Polman. He said that employing refugees could provide Europe an “economic boost” similar to what helped rebuild the continent after the second World War. Polman called on European governments to encourage companies to hire people seeking asylum.
"Unilever chief says bid to employ refugees in UK hit brick wall", Belfast Telegraph , May 28, 2017, © Belfast Telegraph
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Ulta Beauty Posts Strong Sales Gains In 1Q Of 2017

May 25, 2017: 12:00 AM EST
Ulta Beauty said net sales jumped 22.5 percent to $1.315 billion in the first quarter of 2017, compared with the same period in the previous year. Comparable sales rose 14.3 percent during the period, compared with the 15.2-percent growth in the same quarter of fiscal 2016. According to the company, retail comparable sales grew 10.9 percent, including salon comparable sales growth of 9.9 percent. Salon sales grew 16.7 percent to $68.7 million, compared with the same period in the previous year.
"Ulta Beauty Announces First Quarter 2017 Results", Ulta, May 25, 2017, © Ulta
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More Women In Australia Buy Cosmetics At Pharmacies, Roy Morgan Research Says

May 24, 2017: 12:00 AM EST
In 2016, 19.1 percent of Australian women bought cosmetics from pharmacies, compared with 15.1 percent in 2006, according to Roy Morgan Research. Data from the market research firm revealed that in 2006-2016, the percentage of women who buy cosmetics in an average six months remained stable, from 51.5 percent to 50.5 percent. Cosmetics retailers, such as Sephora and MECCA, saw their share of the market fall from 9.6 percent to 7.7 percent during the period. Also, about 840,000 women purchased their make-up at a Priceline store, making the company the most popular pharmacy chain for cosmetics.
"More Australian women buying cosmetics at pharmacies", Roy Morgan Research, May 24, 2017, © Roy Morgan Research
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Procter & Gamble Assigns Publicis Media To Manage Consolidated UK Media Account

May 23, 2017: 12:00 AM EST
Procter & Gamble awarded its consolidated media planning, scheduling, and buying account in the UK and Ireland to Publicis Media. Valued at more than ₤200 million, the account used to be managed by Starcom Mediavest and later divided between Starcom and Mediavest Spark following Publicis' reorganization in 2016. P&G's reorganization of its advertising and marketing strategies is part of the consumer goods giant's efforts to reduce agency spending by $2 billion during the next five years.
Jennifer Faull, "P&G unites UK media business under Publicis", The Drum, May 23, 2017, © Carnyx Group Ltd
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Shiseido Plans R&D Center For Asia-Pacific Region In Singapore

May 18, 2017: 12:00 AM EST
Shiseido plans to establish a research and development center in Singapore, barely more than a year after putting up a regional headquarters in the island state. Also, the Japanese cosmetics company is preparing a collection of beauty brands from among its leading global brands from the US and Japan. These brands will be offered to consumers in the Asia-Pacific region, according to Shiseido Asia Pacific president Jean-Philippe Charrier. According to the company, Indonesia, Vietnam, and the Philippines are among its high-growth areas in the region.
Rumi Hardasmalani, "Shiseido picks Singapore as R&D centre to drive regional growth", Today Online, May 18, 2017, © Mediacorp Press Ltd.
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Jean Coutu To Sell Clinique Beauty Products In Canada

May 17, 2017: 12:00 AM EST
Jean Coutu Group said it will start selling Clinique beauty products in several of its affiliated stores Quebec and New Brunswick, as well as online. Accounting for about 50 percent of total pharmacy sales in Canada, Jean Coutu also has a high-end beauty department selling beauty brands, including Caudalie, Biotherm, and Jouviance. With one to four consultants at all times, Jean Coutu's beauty stores offer services, such as skin analysis, makeup touch-ups, and a makeup-testing program.
Faye Brookman, "Canada’s Jean Coutu Secures Clinique", Women’s Wear Daily, May 17, 2017, © Penske Media Corporation
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