GCI Magazine 03 March 2017 by Bel SPA

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CONTENTS

MARCH 2017 | VOLUME 185, NUMBER 3

18 FEATURES 6 K-boom 2017

Korean beauty is expanding worldwide and breaking into mass channels on an unprecedented scale.

8 Beauty Is Cleaning Up

The right to know, “safe” alternatives, and brand and retailer transparency add up to rising sales.

10 How Beauty Brands Will Grow in 2017 and Beyond

Wellness, consumer scrutiny, smart devices, niche opportunities and more will drive brands forward.

BY NICHOLAS MICALLEF

18 Beauty Shake-up

What 2016 market figures and the latest shifts in product innovation, shopping patterns and consumer sentiment mean for the industry in 2017 and beyond. BY JEB GLEASON-ALLURED

26 Beauty Is Her Beat

Inside the hearts and minds of the beauty enthusiast BY DENISE HERICH

34 If I Had to Do It Over:

DefiningYour Brand Story

Advice from the experts who’ve been there on how to craft a brand narrative that will resonate with the consumer. BY ADA POLLA

38 6 Ways Brands Are Rewriting Beauty’s Rules

The beauty industry is in the early days of its biggest transformation, thanks to a digital revolution that has removed traditional barriers to entry. BY LAURA ZIV

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CONTENTS 10

EDITORIAL

Director Editor in Chief Research Analyst Assistant Editors

Digital/Social Media Editor

Jo-El M. Grossman Jeb Gleason-Allured | 1-630-344-6069/jallured@allured.com Nicole Urbanowicz | 1-630-344-6053/nurbanowicz@allured.com Jennifer Novoseletsky | 1-630-344-6045/jnovoseletsky@allured.com Savannah Saunders | ssaunders@allured.com Brooke Schleehauf | 1-630-344-6032/bschleehauf@allured.com Lisa Schryver | 1-630-344-6068/lschryver@allured.com Audrey Latimer | 1-630-344-6067/alatimer@allured.com

ADVERTISING SALES Business Development Manager Kim Jednachowski | 1-630-344-6054/kjednachowski@allured.com Business Development Manager Paige Crist | 1-630-344-6060/pcrist@allured.com Fragrance Coordinator Kasia Smialkowski | 1-630-344-6025/ksmialkowski@allured.com

AUDIENCE DEVELOPMENT Director Linda Schmitt Marketing Specialist Marie Galvan Marketing Assistant Alyssa Howard Customer Service 1-888-399-0899/customerservice@gcimagazine.com

DEPARTMENTS 3 Spark: Is Beauty Really Being Disrupted? BY JEB GLEASON-ALLURED

4 Markets & Trends 43 Skin/Sun/Anti-aging 47 Hair 50 Cosmetics 53 Bath/Body/Fragrance

RESOURCES 55 Products & Services Showcase 56 Advertiser Index

DESIGN Graphic Design Manager Senior Graphic Designer Production Manager

Lisa Hede Hon Bannapradist Bryan Crowe

CORPORATE Partner & President Partner & CEO Controller Digital Products Director Executive Assistant

Janet Ludwig George Fox Linda Getner Rose Southard Maria Romero

OTHER ALLURED PRODUCTS Allured Business Media 1-630-653-2155 • fax 1-630-653-2192 336 Gundersen Drive, Suite A Carol Stream, IL 60188-2403 USA www.Allured.com

Alluredbooks Cosmetics & Toiletries Bench Reference Cosmetics & Toiletries magazine Cosmetics & Toiletries magazine: Portuguese edition Cosmetics & Toiletries Summit Skin Inc. magazine Face & Body Midwest Spa Conference and Expo Face & Body Northern California Spa Conference and Expo Face & Body Southeast Spa Conference and Expo Perfumer & Flavorist magazine World Perfumery Congress Flavorcon

Subscriptions: Subscribe online: www.GCImagazine.com/subscribe In the US, telephone: 1-888-399-0899, Outside the US, telephone: 1-847-559-7557 (9 AM–5 PM Central, Mon-Fri) | Fax: 1-847-291-4816 E-mail: customerservice@gcimagazine.com Print subscriptions: Available free to qualified individuals located in the United States. All other countries may subscribe to the digital edition. Periodicals Postage paid at Carol Stream, Illinois, and additional mailing offices. Change of address: Give both the new and old addresses. Allow two months for a change to become effective. Global Cosmetic Industry (ISSN 1523-9470) is published eleven times per year as Jan., Feb., March, April, May, June, July/Aug., Sept., Oct., Nov. and Dec. issues by Allured Business Media, 336 Gundersen Drive, Suite A, Carol Stream IL 60188-2403 USA. Copyright 2017. Free subscriptions to Global Cosmetic Industry are available to qualified individuals. The publisher reserves the right to determine qualification of free subscriptions. Replacement issues are available only through single copy sales. Single copies: $20; GCI Directory Issue: $35 (Add $10 per order shipped to Canada; add $15 per order to all other countries.) Periodicals postage paid at Carol Stream IL 60188 and additional mailing offices. POSTMASTER: Please send address changes to Global Cosmetic Industry, PO Box 3009, Northbrook, IL 60065-3009. Change of address: Give both the new and old addresses. Allow two months for a change to become effective.

Members of the American Business Media. All correspondence regarding business, editorial, advertising and production should be sent to Global Cosmetic Industry, 336 Gundersen Drive, Suite A, Carol Stream, IL 60188-2403 USA.

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Allured Business Media makes all attempts to publish accurate information; however, this publication may contain technical inaccuracies or typographical errors. The reader assumes all risks concerning the suitability and accuracy of the information within this publication. Allured Business Media assumes no responsibility for and disclaims all liability for any such inaccuracies, errors or omissions in this publication and in other documents referred to within or affiliated with this publication. www.GCImagazine.com

2 Contents Global Cosmetic Industry | March 2017

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SPARK

| BY JEB GLEASON-ALLURED

Is Beauty Really Being Disrupted?

JEB GLEASON-ALLURED Editor in Chief jallured@allured.com @GCI_Magazine

GLOBAL COSMETIC INDUSTRY MAGAZINE EDITORIAL ADVISORY BOARD ALISA MARIE BEYER Coastal Salt & Soul

MARIE ALICE DIBON Alice Communications, Inc.

ADA POLLA Alchimie Forever, The Polla Beauty Group

ART RICH, Ph.D. A. Rich Development

RICK RUFFOLO R4 Innovations

CRISTINA SAMUELS Mode Cosmetics

LAURA SETZFAND Epiphany

“D

isruptive” may be one of the English language’s most overused and misunderstood terms. As described by its coiner, Clayton Christensen, disruption is not about breakthrough technology that vastly improves a product or service, but rather “a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.” In short, it takes traditionally complex and expensive things and makes them more accessible. Famous examples include the disruption of department stores by discount retailers and the disruption of traditional doctor’s offices by retail medical clinics (Page 21). Christensen has said that it is typically difficult for the establishment players in a sector to capture the disruptive innovation as it emerges, so the spoils usually go to the newcomers. Sound familiar? Over the last decade the internet and social media have rewritten the transparency rules for brands and retailers, while also removing traditional barriers to entry for startup companies. Today, a company like Madison Reed (Page 38) can launch mobile first, followed by e-commerce and a physical store, highlighting a new world in which traditional business models are being revamped. While the buzz often goes to the newcomers, several multinationals have learned Christensen’s lesson by acquiring innovation as it surfaces. For instance, L’Oréal and Founders Factory’s beauty accelerator and incubator is mentoring a natural personalized skin care brand (InsitU), a printable nail art concept (Nailbot), an influencer support network (Tailify), an app-based beauty product discovery and social platform (Veleza), and a location technology firm (Cosmose). While these investments illustrate that innovation is no longer centralized, it also shows that even unique startups need good old-fashioned beauty market expertise, access to resources and cash. In the traditional model, sustaining innovations (improvements in products) favored incumbent brands, while the growing disruptive model favors newcomers. Companies like L’Oréal appear to be exploring the possibility that the beauty industry can have it both ways. n

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MARKETS & TRENDS Consumer Beauty Attitudes, Revealed

Market Force’sa poll of about 8,000 U.S. beauty consumers unearthed their favorite brands, retailers and more.

Favorite Brand 1. MAC and Clinique (13% of total votes, each) 2. bareMinerals/ BareEscentuals (10%) 3. Urban Decay (7%) 4. Lancome and Estee Lauder (5% each)

Top Product Factors for Consumers 1. Wears well throughout the day (No.1 Urban Decay) 2. Brand trust (No.1 Clinique) 3. Easy application (No.1 bareMinerals/ Bare Escentuals) Other key attributes include value (No.1 MAC), leak/spill-proof containers and products that are humanely tested or environmentally safe. www.marketforce.com

Top Channels 1. Mass retailers (i.e., Walmart and Target): 30% 2. Specialty retailers (i.e., Sephora and MAC): 24% 3. Drug stores (i.e., Walgreens): 16% 4. Department stores (i.e., Macy’s): 13% 5. Grocery stores: 3%

Top Specialty Retailer 1. Sephora 2. Ulta 3. MAC and bareMinerals/ Bare Escentual Twenty-eight percent of respondents had a makeup artist at a specialty store apply makeup during their most recent visit, particularly MAC and bareMinerals/Bare Escentuals, compared to 35% at a department store.

Top Department Store 1. Macy’s n

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MARKETS & TRENDS

K-boom 2017

o A K

This year, Korean beauty is expanding worldwide and breaking into mass channels on an unprecedented scale.

-beauty represents a booming market opportunity in the United States, of course, but its influence could be much larger for U.S. brands, according to Priya Venkatesh, VP/DMM skin care/hair care and merchant product innovation at Sephora. Speaking at CEW’s recent K-beauty forum in New York, the executive noted that Western brands could learn a lot from their counterparts in Seoul, namely: clear messaging, sensorial product design and marketing, creation of millennial-friendly skin care, and engagement of consumers on skin care education.

said, makeup-ready skin care, milk peels that take the scare out of peeling and primers are easy bets.

AmorePacific Is Just Getting Started AmorePacific, which has had immense success with its cushion technology over the last decade, is set for its busiest year yet, according to Bradley Horowitz, the company’s president, North America. He noted it will be launching Laneige into Sephora in September, and expanding channels for the Laneige Two Tone Lip Bar.

According to Kline Groupb, U.S. K-beauty sales rose 27% between 2015 and 2016, with 80% of sales coming from skin care and another 17% coming from makeup. Through 2021, the U.S. K-beauty market is expected to expand by a further 16%. Today, the U.S. category is extremely consolidated, with 80% of sales coming from the top four K-beauty brands, according to Kline. AmorePacific alone comprises 35% of the market, with brands such as Aritaum, Sulwhasoo, Laneige and IOPE. This presents a significant opportunity for brands to step in and take market share.

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Nordstrom’s new K-beauty concept store.

While Americans may never adopt 15-step skin care rituals, said Venkatesh, they will be open to easy, quickacting solutions such as essences, if presented with the right opportunity. Indeed, the category is set to heat up as it expands across all channels, from department stores (e.g., Peach & Lily x Macy’s) to specialty retail (e.g., Sephora and Ulta) to big box retailers (e.g., Mizon and Laneige at Walmart and Target, and Masqueology at Walmart) to branded boutiques (e.g., Aritaum) and home shopping (e.g., QVC). Venkatesh noted that Sephora’s merchandising teams make careful judgements about what to launch, when and whether the market is ready. In the case of K-beauty, she b

www.klinegroup.com

Horowitz said that the five largest beauty markets for AmorePacific are Japan, China, Europe, the United States and Brazil, and that company does most of its current business in Korea and China, meaning there is significant growth potential for its brands. AmorePacific has also partnered with Alshaya Group to expand its retail reach in the Middle East market, including the opening of the first Etude House store in Dubai later this year. Etude House also has plans to expand in countries such as Kuwait, Saudi Arabia, UAE, Qatar, Bahrain and Oman. With compounded growth in the United States of about 30%, Horowitz said it is conceivable that AmorePacific’s global sales could one day rise to as much as $12 billion. The big challenge today, he concluded, is telling the right skin care story to the American consumer.

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$ i a o c t

a G r p t

K-beauty: By the Numbers

Beyond Prestige

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Impact on Korean Industry

Translating K-beauty

While Korean beauty products are gaining popularity all Sarah Lee, co-CEO and co-founder of Glow Recipe over the world, data from the Korean International Trade noted that her company’s mission is to partner closely with Associationc shows that some of the biggest fans of the brands and help position them for maximum relevance with American consumers. She says the company has K-beauty trend can be found in China. helped companies rebrand, South Korea’s cosmetics industry repackage or even reformulate reportedly saw its exports rise by in order to translate and localize more than 40% in 2016 in large part K-beauty to the States. thanks to Chinese consumers’ bigger spending power and an increase in interest surrounding grooming and beauty products. The troubled department store In 2016, K-beauty exports were channel has already taken a position $3.97 billion, which is a 44.3% in K-beauty, as seen with Peach increase from $2.75 billion in 2015 & Lily’s store-in-store concept and nearly double the 2014 figure at Macy’s. Now, Nordstrom has of $1.79 billion. Among the export unveiled a bright, colorful K-beauty countries, China took up 36.5% of shop concept as part of its threethe market, totaling $1.45 billion. part series, KPOP-IN@Nordstrom. In laying out the manufacturer The shop comprises 500 “cult and distributor’s 2017 vision, Cosmax favorites,” including banana milk Group’s chairman Lee Kyung-soo masks and egg extracts, phyto recently said, “Last year’s group sales skin care and masks fortified with performance led to a 20% growth for extractions from volcanic islands, the 10th consecutive year.” as well as bb creams, sheet masks He continued, “Our mid- to longand cleansers, hydrating jelly term goal for [our] 25th anniversary Mizon masks ($3.50) are among the curated collection eyeshadow, 24-carat-gold-infused is to become the world’s No.1 ODM Alicia Yoon developed for Target. swabs, white flower masks and [original design manufacturing] volume-controlled mascara. Participating brands include Too Cool for School, Crème, DTRT, Huxley, Hanahzo, ID.AZ, Onnu, OneOSeven, IPKN, Glow Recipe, A’Pieu, Ooh La La, ABBAMart, Hohodang, Roman, Chosungah 22, Sukoo Sukoo, Color bucket, I Woke Up Like This, Cool Enough Studio, touch in SOL, TPSY, Dongwha Pharm, Me.Factory, Vant and Vika. The concept will roll out in Seattle, Dallas, Chicago, Los Angeles, Toronto and more. Meanwhile, Peach & Lily’s Yoon has curated a K-beauty collection for Target. The products retail for $3.50 (Mizon Face Masks) to $38 (Mizon Snail Repair Cream). Other SKUs in the collection include Aprilskin Deep Cleaning Facial Cleanser ($7), Caolion Cream Deep Cleaning Facial Mask company that combines the growth potential and Treatment ($26), Lagom Gel Basic Cleansing Facial Cleanser profitability of health functional foods and cosmetics. ($17) and Twenty Four Seven Lipstick Medium ($29). We are committed to creating new domestic demand and Masqueology has taken the mass approach to K-beauty strengthening our overseas growth potential. ... We will even further at Walmart and Costco with products such continue to develop our own competitiveness through as Masqueology Collagen Lifting Cream Mask ($2.50), constant change and innovation.” Masqueology Moisturizing Cream Mask ($1.50) and To fulfill its goals, the company has invested in anti-aging Masqueology by Beauty Architects Damage Care Hair Mask research and technology and explored market expansions in with Blueberry & Camellia ($3). n places like the United States and China.

K-beauty at Retail

AmorePacific’s global sales could one day rise to as much as $12 billion.

www.kita.org

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MARKETS & TRENDS

Beauty Is Cleaning Up The right to know, “safe” alternatives, and brand and retailer transparency add up to rising sales.

“N

atural brands are responsible for 55% of the overall gains in prestige skin care, and 85% of any gains in the declining brick-and-mortar spaced,” NPD manager and industry analyst Jennifer Famiano wrote in a recent analysis. “But there’s this new underbelly of brands that are not making the claim of ‘natural’ and are instead eliminating ‘unsafe’ ingredients.” Welcome to clean beauty. While natural- and organic-touting brands continue to have strong momentum in the market—brands touting some level of organic status are expected to generate $13.2 billion worldwide by 2018e—clean beauty promises consumers an enhanced level of safety and transparency. Such a notion is obviously attractive to parents or those who have encountered specific health issues, but as consumers begin to focus on a prevention-based wellness outlook, clean beauty’s appeal is broadening to the general market. “Skin care is a very intellectual and emotional category,” Famiano noted in her analysis. She specifically singled out Beautycounter, which in 2016 acquired Nude Skincare and Nude Brands. Nude’s natural beauty products fit well within Beautycounter’s array of “safer” skin care and cosmetics (photo at right). “Ali [Hewson] and her team at Nude share the same unwavering commitment to education, safer products, and better laws that will move the beauty industry forward worldwide,” said Gregg Renfrew, founder and CEO of Beautycounter, at the time of the acquisition. Hewson noted, “Their [Beautycounter’s] commitment to transparency in ingredients is second to none and I hope it will soon be par for the course for more companies. Consumers have a right to know what is in the products they put on their skin, and they shouldn’t be faced with a false choice between safety and effectiveness.” Beautycounter, Famiano pointed out, is transparent about the fact that not all of its ingredients are natural or organic. The company also hosts its own Never List of banned Per NPD figures; www.npd.com www.transparencymarketresearch.com

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Credo recently opened a Los Angeles store; a Brooklyn location is forthcoming.

Consumers have a right to know what is in the products they put on their skin, and they shouldn’t be faced with a false choice between safety and effectiveness. ingredients, including mineral oil and parabens. Elsewhere, Whole Foods has established Premium Body Care Standards, while P&G introduced its Preservative Tracker in Decemberf. The latter system allows consumers to browse by product type to discover which preservatives are included in the company’s products. They can also search by ingredient type. “Making informed choices should be simple for guests,” said Dawn Block, senior vice president, essentials and f http://us.pg.com/our-brands/product-safety/ ingredient-safety/preservatives

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beauty, Target, in an official statement regarding the retailer’s chemicals policy. “This framework is designed to take the complications out of finding better-for-you product options. We’re looking forward to working with our vendors on solutions that will benefit us all.” Seventh Generation has already partnered with Target on the consumer transparency project, which is researching “safer chemical alternatives,” such as green chemistry and new preservatives. Meanwhile, the clean Credo carries brands such as Beauti that beauty trend continues promise a safe consumer experience.

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to fuel the expansion of Credo Beauty, which opened in San Francisco in 2015, expanded to New York in 2016 and, this year, opened its 1,300-square-foot Los Angeles location. A Brooklyn store is forthcoming. The latest Credo store comprises more than 100 natural and organic brands, including Suntegrity, Osea, Josh Rosebrook, African Botanics, Tata Harper, RMS, Ursa Major, Gressa, In Fiore and Marie Veronique. It also houses a beauty bar and Tata Harper spa. Credo explained: “Licensed estheticians and makeup experts are on hand to provide recommendations for cleaner—and just as effective—versions of traditional beauty products.” “Opening a Credo store in LA is a dream come true,” said Shashi Batra, founder and CEO of Credo. “Tapping into the belief system of such a health-conscious community with brands that have a raison d’être that is sustainable, because this is not just about being fashionable or temporary.” n

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BEAUTY DISRUPTED

HOW BEAUTY WILL GROW IN 2017 AND BEYOND | BY NICHOLAS MICALLEF, Senior Beauty and Personal Care Analyst, Euromonitor International

entiment on the beauty and personal care industry’s performance in 2016 points to a vibrant color cosmetics category, delivering healthy growth for key brands owned by major players, including Estée Lauder and L’Oréal, as well as niche brands

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Beauty Disrupted

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and relatively new entrants, such as Kiko Milano and Charlotte Tilbury. Skin care is anticipated to show a slowdown, albeit with pockets of strength in segments such as naturals and dermocosmetics that continue to witness a more robust performance, highly indicative of prevailing trends. Global Cosmetic Industry

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Wellness Cuts through the Clutter Evolving consumer patterns across multiple industries are opening new avenues to beauty players. A holistic approach to a healthier lifestyle is being manifested in consumers’ choice of food, levels of alcohol consumption, sports and exercise, and, more relevant to the beauty industry, greater care to personal hygiene and appearance through the use of preventative beauty products. More consumers are basing purchasing decisions on their wellness priorities, formulations and standout products in an otherwise cluttered marketplace. New market entrants are exploiting this scenario with niche offerings, at times bold, and with development of cross-category and inter-industry product innovations. This evolution pretty much sums up why niche labels, dermocosmetics and “clean label” products are challenging legacy power brands, as consumers, in particular those in saturated Western markets, seek authentic options.

Competition in the beauty industry has intensiﬁed from outside its conventional borders, including pharmaceutical and food and beverages players, which now boast numerous products claiming to support skin and hair health ingredients surges, and consumers become more informed about the origin, processing, and overall social and environmental footprint of a product. Some consumers also reject products on the basis that they are not sustainable, such as those claiming to use Dead Sea ingredients, due to their fast disappearance.

Beneﬁts Set You Apart Claiming to be natural and “clean” is not enough, however, because

consumers are not easily convinced. As certain claims, such as anti-pollution, proliferate, brands need to stand out with tangible evidence, or they risk being dismissed as far-fetched. Ultimately, a product’s performance is what is most crucial. What sets a brand apart could be measures of how much a user can expect to benefit from a product—for example, in terms of improvement to dark spots or acne breakouts, which are typically caused by exposure to pollution. (Continued on Page 15)

F-1. Consumer demand for green beauty by category, 2016

Consumer Scrutiny as a Source of Novelty Consumers are more discerning than ever, especially with regards to product formulations. In virtually all categories, legacy brands are falling out of favor with consumers in Western markets in favor of those professing to be “natural,” “organic,” “chemical-free” and “green,” and seek products that inculcate clean living with the use of fewer ingredients. This is leading to a new wave of products under the “green/clean” label (F-1), as demand for naturally-derived www.GCImagazine.com

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BEAUTY DISRUPTED

5 WAYS SKIN CARE IS GROWING | BY JEB GLEASON-ALLURED, Editor in Chief Growth in the skin care category was uneven in 2016, with modest overall growth and stagnation in anti-aging. While there are challenges in the segment, several key categories offer opportunities for innovation that consumers can be excited about.

1. Anti-aging Reborn The reports of anti-aging’s death are greatly exaggerated. But the category needs some rethinking. Anti-aging, as a segment, has reached a sales stagnation point as younger consumers prioritize multitasking products and turn to a preventative, rather than reactive, skin care. A report by Nicholas Micallef, Euromonitor* senior analyst, beauty and personal care, shows anti-aging opportunities persist, nonetheless. He noted, for instance, that the high-growth skin maintenance segments, including face masks, cleansers and moisturizers, often incorporate anti-aging ingredients in their formulas. By folding antiaging into these up-and-coming product formats, the category can create new value propositions for a new generation of consumers.

2. Dermocosmetics: Preventative Skin Care Consumers’ preventative mindset has been a boon for the dermocosmetic category. Dermocosmetics, over-the-counter products that bridge the gap between cosmetics and pharmaceuticals, have created new opportunities for brands such as Jouviance and La Roche-Posay. It has also created strong prospects for Nestle Skin Health’s Cetaphil and spurred it to form a joint venture with Proactiv parent Guthy-Renker. According to Euromonitor figures, the largest pharma-inspired skin care brand is Neutrogena, with annual retail sales of a little more than $2 billion. Yet it is only the seventh-fastest-growing brand in the category. The fastest growers, in descending order, according to Euromonitor’s data, are: • Rodan + Fields ($571 million retail value sales) • Cetaphil ($253 million retail value sales) • Nuxe ($255 million retail value sales)

High-growth skin maintenance segments, including face masks, cleansers and moisturizers, often incorporate anti-aging ingredients in their formulas.

• La Roche-Posay ($812 million retail value sales) • Avene ($907 million retail value sales) • Eucerin ($540 million retail value sales) Dermocosmetics have also spurred activity from suppliers. For instance, DKSH and Total Specialties USA have signed a sales agreement to distribute Total’s Gemseal range, hydrocarbon emollients that are recommended in the formulation of dermocosmetic products for skin care, hygiene, makeup, hair care and sun care, within the United States. And Air Liquide’s Seppic subsidiary has acquired the Serdex division of Bayer, boosting its natural active ingredient expertise for dermocosmetics and skin treatments. At the same time, natural active ingredient manufacturer Silab has acquired Ecomeris, a startup specializing in film technologies and natural coating solutions for cosmetics and dermocosmetics.

3. Nutricosmetics Get A Boost from Topicals

Niche brands have been among the leading candidates motivating acquisitions, such as L’Oréal’s recent purchase of AcneFree, CeraVe (pictured) and Ambi. *www.euromonitor.com

Dermocosmetics could also open doors for the long stagnant beautyfrom-within and beauty supplement categories, which have been virtually non-existent outside of Asia Pacific and Western Europe. According to Euromonitor’s Micallef, the category will generate just $60.5 million in absolute gains worldwide during the five-year period ending in 2020. “The tough reality is that nutricosmetics cannot survive in isolation, and need to be a part of a broader regime that includes topical applications and wider health supplements,” said Micallef. He added, “Beauty supplements players without a presence in topical counterparts can enhance their prospects by co-branding with a dynamic skin care player to promote the supplements as part of an extended skin care regime.”

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Medea Juhasz is the founder and president of Herbalore, which offers Catalyst Gold, an ingestible beauty and wellness product powered by biotin, grape seed extract, chlorella and a range of other ingredients; photo courtesy of FounderMade.

At a recent FounderMade Wellness Summit in New York, ingestible beauty concepts on display included Herbalore, which offers Catalyst Gold, an ingestible beauty and wellness tablet powered by biotin, grape seed extract, chlorella and a range of other ingredients; Vital Proteins, which offers drinkable powders comprising key ingredients such as collagen peptides, marine collagen, greens, beef liver and collagen, collagen whey and more; and All Beauty Water, which reportedly nourishes the skin using antioxidants.

Probiotic skin care brands include Esse Skin Care’s Probiotic Serum, which reportedly contains 1 billion live probiotic microbes per milliliter, which are claimed to improve skin firmness by an average of 16% in 28 days. Mother Dirt, meanwhile, has introduced what it claims are the first-ever consumer products containing AOB, or ammonia-oxidizing bacteria, which “consume the irritating components in sweat and ... keep skin clean and clear.” Mother Dirt’s AOB-powered products include: AO+ Mist (100 mL; $49), Mother Dirt Shampoo (100 mL; $15) and Mother Dirt Cleanser (100 mL; $15). During the summit, Aganovic noted that Mother Dirt has been embraced by beauty’s female early adopters, as well as men, who are looking to restore the skin’s microbiotic ecosystem using a simple spray format. Some Mother Dirt consumers use the products as a showering alternative after the gym, or even as a replacement for deodorant. In the future, the company will introduce products that address inflammatory skin disorders. While Mother Dirt isn’t yet positioned for mass appeal, Aganovic signaled that the brand could eventually transition into the mass space— particularly as the public’s awareness of the excesses of contemporary hygiene and related skin and allergy issues rises.

4. Probiotics: Bacteria Gets Good Powered by scientific breakthroughs around the human microbiome and rising consumer awareness of “good” bacteria, the probiotic trend is gradually making its way into skin care. As Jasmina Aganovic, president of probiotic brand Mother Dirt put it during a recent FounderMade Wellness Summit: Perfection is out and balance is in.

As Jasmina Aganovic, president of probiotic brand Mother Dirt put it during a recent FounderMade Wellness Summit: Perfection is out and balance is in; photo courtesy of FounderMade.

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Mother Dirt has introduced what it claims are the first-ever consumer products containing AOB, or ammonia-oxidizing bacteria, which “consume the irritating components in sweat and ... keep skin clean and clear.”

But how can brands embrace wellness while offering a technical point of difference without losing the consumer in the process? Aganovic had an answer: Tell technical stories through brands. While the technology behind Mother Dirt is complex, the MIT-trained Aganovic explained that the brand keeps things relatable, starting with the name, which is both irreverent and back-to-basics. Mother Dirt describes itself as “Good bacteria for great skin,” simplifying the technical proposition. Aganovic added that the Mother Dirt team chose to “lead with emotion” on the products’ front label, while presenting the science on the back label. This strategy allowed the brand to build trust with transparency, while embracing the bacteria concept without alienating consumers. It also enabled Mother Dirt to reach beyond the early adopter audience.

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Retailers also believe in a good story. During the FounderMade event, Abby Levy, president of wellness content and retail platform Thrive Global, noted that there is a difference between discoverability and purchase. As such, she encouraged brands to tell a good story because “no one can tell your story better than you.” She explained that consumers want a story, the science behind the brand and to understand the promised impact it will have on their lives.

5. The K-beauty Playbook K-beauty has been one of the buzziest beauty categories in the United States and elsewhere in the last few years. According to Kline Group, U.S. K-beauty sales rose 27% between 2015 and 2016, with 80% of sales coming from skin care, and another 17% coming from makeup**. Through 2021, the U.S. K-beauty market is expected to expand by a further 16%. AmorePacific’s Time Response Skin Renewal Fluid has all the benefits of a cream, including density and high oil, but with the benefits of a liquid moisturizer.

Today, the U.S. category is extremely consolidated, with 80% of sales coming from the top four K-beauty brands; AmorePacific alone comprises 35% market share with brands such as Aritaum, Sulwhasoo, Laneige and IOPE. This presents a significant opportunity for brands to step in and take market share. However, beyond market dynamics or any single fad spawned by social media, K-beauty offers solid, lasting lessons for its counterparts around the globe. Peach & Lily has launched three sheet masks, which comprise cottonseed fiber-derived cellulose material that is breathable, lightweight and thin, and allows for high ingredient absorption and delivery.

Millennial Engagement K-beauty does a good job of making skin care fun, which is important, because young Americans generally lack proper skin education, said Priya Venkatesh, VP/DMM skin care/hair care and merchant product innovation at Sephora. K-beauty offers a solution by delivering an attractively unusual proposition (ex: makeup-ready skin) that renders skin care highly visual and creates easy-to-tell stories that let consumers have fun while caring for their skin. Glow Recipe co-CEO and cofounder Sarah Lee termed this concept “skintertainment.”

Fun, Sensorial Formats

From left: Bradley Horowitz, president and CEO, North America, AmorePacific, Sarah Lee, co-CEO and co-founder of Glow Recipe, and Priya Venkatesh, VP/DMM skin care/hair care and merchant product innovation at Sephora; courtesy of JF Productions. **www.klinegroup.com

One of K-beauty’s market advantages is its sensoriality, which can communicate both function and ingredients to consumers. For instance, said Lee, products such as J.One’s Black Jelly overnight rescue mask has a dark color that reflects its key ingredients, including black cumin seed, blackcurrant and blackberry. And its name connotes the sensory experience the consumer can expect when using the product. Venkatesh explained that unique, sensorial formats such as jarred BB creams, aqua balms and puddings have been a big hit with Sephora’s consumers because product names tend to “say what they are” in a highly evocative way. Echoing Lee’s comments, Venkatesh

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explained that K-beauty products photograph well, magnifying their impact for young social media-savvy consumers. Bradley Horowitz, president, North America, AmorePacific, offered the example of AmorePacific’s Time Response Skin Renewal Fluid, which has all the benefits of a cream, including density and high oil, but with the benefits of a liquid moisturizer. Because of the way the product is formulated, it is categorized as an emulsion, not as a cream.

U.S. K-beauty sales rose 27% between 2015 and 2016, with 80% of sales coming from skin care, and another 17% coming from makeup.

Visible Ingredient Innovation As J.One’s Black Jelly overnight rescue mask shows, K-beauty does a great job of pushing the visibility of its ingredients, said Venkatesh. From snail mucus to maple syrup to charcoal to artichoke (the latter for pore refining), the category is rich with highly sensorial components. Horowitz noted that AmorePacific has long formulated its products with Asian botanicals such as green tea, red ginseng, soybeans and red beans, which resonate with consumers focused on wellness and health. The company’s Sulwhasoo brand leverages ginseng-extracted compound K, which has anti-wrinkle and anti-aging properties, and is the subject of several AmorePacific patents.

AmorePacific also farms its own green tea on Jeju Island, said Horowitz, and produces a proprietary Osulloc green tea beverage. EGCG, an antioxidant, can be extracted from the green tea and stabilized for skin care applications. Finally, said Horowitz, consumers are concerned about the water content of their products. AmorePacific addresses this issue by replacing water with bamboo sap, which possesses its own hydrating qualities. Lee noted that many K-beauty brands employ fermented ingredients to leverage smaller molecules that can penetrate deeper into the skin and, simultaneously, require fewer added preservatives. n

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Food-inspired Beauty Competition in the beauty industry has intensified from outside its conventional borders, including pharmaceutical and food and beverages players, which now boast numerous products claiming to support skin and hair health, among other body functions. Several beauty brands also sell their own range of beauty ingestibles and functional foods, with Burt’s Bees among the latest to launch a line of protein shakes (see sidebar).

Probiotic Skin Care Meanwhile, the beauty market is witnessing the launch of relatively bold concepts, leveraging success achieved in other industries. One example is probiotic-based skin care, which is inspired by probiotic supplements and yogurts. The U.S. brand Mother Dirt pioneered the first skin care range formulated with live cultures claimed to restore the skin’s bacterial equilibrium (see sidebar). Other niche brands later came to the fore, including Esse and www.GCImagazine.com

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supporting the latter’s skin care strategy, which is also geared towards dermocosmetics, as evidenced in the 2016 acquisition of Neostrata.

Active Beauty

Several beauty brands sell their own range of beauty ingestibles and functional foods, with Burt’s Bees among the latest to launch a line of protein shakes.

Yun Priobiotherapy, promising to take skin care to a new level. Big players are already taking note as they seek to garner revenues when the opportunity is kicking. For example, Johnson & Johnson has announced a partnership with S-Biomedic, a start-up biotech firm specializing in probiotic cosmetics, and has plans to launch its first product on the market, an acne skin recovery solution. Under the agreement, S-Biomedic receives help from Johnson & Johnson, while

Beauty players are also exploiting the thriving sportswear arena in apparel, as the wellness drive extends to fashion. Sportswear was the best performing category in 2016 globally, and niche beauty players have been quick to act on the trend with products designed for active consumers.

Birchbox’s 2016 launch of Arrow was one of many athleisure-inspired beauty brand introductions. Beauty Disrupted 15

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other assists in maintaining steady sleep. Moreover, L’Oréal’s professional hair care brand Kérastase launched the Hair Coach, which is a hair brush claimed to provide users with a score on hair quality, effectiveness of brushing habits (and when brushing direction needs to change), and other personalized advice and Kérastase product recommendations.

Mio Skincare is specifically tailored to users’ activities, with products such as Workout Wonders and Liquid Yoga (pictured).

For example, Birchbox launched the Arrow line in 2016, while Sweat Cosmetics specializes in sweat-proof permeable mineral makeup. Others, such as Mio Skincare, are more specific to users’ activities, with lines such as the Workout Wonders and Liquid Yoga.

M&A Making Big Companies Bigger Recent acquisition activity in the beauty industry is a testament to the challenges and potential that large beauty players perceive among small but impactful brands. Acquisitions have been largely concentrated in the hands

Smart Devices Another flourishing area is beauty devices. These are far from new, but are increasingly designed for “clean living” as device developers leverage smart technology to align new products to consumer lifestyles. Recent novel concepts include Sensorwake’s Oria device, which releases two scents—one claimed to help the user fall asleep, while the

L’Oréal’s professional hair care brand Kérastase launched the Hair Coach, which is a hair brush claimed to provide users with a score on hair quality and effectiveness of brushing habits.

F-2. Holistic well-being unites multiple industries

of the cash-rich few—Unilever, L’Oréal and Estée Lauder—ensuring their dominance endures as they become ever more distant from medium-sized rivals such as Henkel and Beiersdorf in terms of value share. Unlike their larger counterparts, these mid-sized companies invest in their existing brands, achieve modest growth, but do not necessarily have the resources to make sufficiently worthy acquisitions to grow far beyond their current scale.

Seizing Niche Opportunities Niche brands have been among the leading candidates motivating acquisitions, such as L’Oréal’s recent purchase of AcneFree, CeraVe and Ambi, or Unilever’s string of premium skin care acquisitions, including Murad and Dermalogica. These acquisitions show the multinationals’ efficiency in seizing opportunities at the right time, especially when segments such as dermocosmetics and doctor brands remain dynamic. The scope for niche acquisitions is dependent on a category’s level of concentration in a given market. High concentration markets such as oral care in Western Europe open up opportunities to for niche brands to disrupt the category, as with the U.S. subscription-based oral care brand Quip. This is similar to Bulldog in the United Kingdom and Dollar Shave Club in the United States, which have spurred growth in men’s toiletries in their markets and hold potential to disrupt elsewhere.

Bulldog has spurred growth in men’s toiletries in its market and holds the potential to disrupt elsewhere.

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F-3. Apparel and footwear by product category: % year-over-year growth 2011–2016

In a fragmented market scenario, such as baby care in Asia Pacific and color cosmetics in North America, new entrants have a tougher job in disrupting, so focus should perhaps shift onto acquisitions of niche brands that facilitate specialization, such as personalized solutions and uniquely sourced product ingredients, to maintain the competitive appeal. Meanwhile, there has been a slowdown in department stores, such as Macy’s in the United States, while retailers such as Sephora give preferential treatment to LVMH brands. This means that traditionally large clients such as Estée Lauder and L’Oréal need to refresh their portfolios with high-equity disruptive brands to rely less on large distributors and control their own destiny with, for example, stand-alone store operations.

Acquisition Targets Dermocosmetics are set to exert greater influence on the beauty industry (see sidebar). Further www.GCImagazine.com

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opportunities will open up as healthy aging is placed at the core of consumer lifestyles, spearheaded by millennials, who put greater focus on preventative skin care through the use of facial cleansers, masks and moisturizers, which are anticipated to gain in vigor over 2015–2020, with global CAGR prospects at constant prices of 2.4%, 8.1% and 3.5%, respectively, exceeding growth over 2010–2015. Facial masks are one category where companies will seek acquisitions due to its dynamic outlook and the category’s prevention-based direction. Probioticsbased skin care brands, such as Mother Dirt, are perhaps too new, but beauty players will watch them closely over the next few years. Extensions to dermocosmetics could see an upsurge as brands seek to extend their equity. This explains L’Oréal’s acquisition of IT Cosmetics, while Johnson & Johnson’s newly acquired skin specialist Neostrata holds potential to raise the company’s profile in color cosmetics with skinfriendly makeup.

Niod Photography Fluid is a high-tech foundation claimed to act as a light filter to blur imperfections and effectively “Photoshop” the wearer.

Other hybrid brands such as Glossier, born out of an online community blog, and Niod Photography Fluid, a highz-tech foundation claimed to act as a light filter to blur imperfections and effectively “Photoshop” the wearer, could be up for grabs as big players seek ventures with a unique proposition to grow them and generate faster revenues. n Beauty Disrupted 17

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BEAUTY SHAKEUP

What 2016 market ﬁgures and the latest shifts in product innovation, shopping patterns and consumer sentiment mean for the industry in 2017 and beyond. • Makeup led growth in 2016, though select skin care and fragrance segments showed robust gains. • Simultaneously, small nimble brands are fueling the diversity of product launches, even as the number of beauty shopping channels continues to grow. • Consumer sentiment is driving much of this change as society focuses more on social media, wellness, personalization and more.

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| BY JEB GLEASON-ALLURED, Editor in Chief

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Global Cosmetic Industry

Global Cosmetic Industry | March 2017

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While makeup was the biggest growth story in 2016, select skin care segments, particularly masks, saw robust expansion.

ast year ended in both a boom and a whimper for the beauty industry. In the United States, December prestige beauty sales comprised just 4% of 2016 sales, compared to 9% of total sales in 2014, according to figures provided by Karen Grant, SVP, global beauty industry analyst, NPD, during a recent CEW beauty market briefing. More surprising: December 2016 sales were half of those in 2015, while dollar growth for the fourth quarter slowed from 7% in 2015 to 5% in 2016. Per NPD numbers, fragrance was no longer the king of the holidays. In the fourth quarter of 2016, prestige fragrance sales fell 1%, compared to a rise of 12% for makeup during the same period. In fact, prestige makeup generated $525 million more in sales than did fragrance in the fourth quarter

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From left: Karen Grant (NPD), Jordan Rost (Nielsen) and Sarah Jindal (Mintel) at CEWâ&#x20AC;&#x2122;s forecast event (credit: JF Productions).

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of the year. During the CEW briefing, Jordan Rost, VP, consumer insights, Nielsen, explained that the top 20 beauty brand’s 2016 sales declined 0.3% year-over-year, while the top 100 and 200 brands collectively rose 3.2% and 4.5%, respectively. Grant noted that social media-driven brands are converting consumers far faster than their legacy brand counterparts. As a result, said Rost, smaller beauty players are reaching scale faster than ever before, achieving $100 million in sales in record time. Today’s indie is tomorrow’s multinational disruptor.

environment with plenty of pitfalls and numerous opportunities for the nimble.

Another Billion in 2016 In 2016, U.S. beauty sales totaled $24.03 billion, according to Jordan Rost, VP, consumer insights, Nielsen. Karen Grant, SVP, global beauty industry analyst, NPD, tagged the prestige category at $17 billion, representing a growth rate of 6% (2015: 7%), compared to the 2% gain in the mass segment. The prestige segment has now grown at a steady $1 billion dollar rate every year since 2012.

Confidence is less of a beauty purchasing motivator in 2017, compared to previous years. Per NPD research, the top purchase reasons cited by U.S. women are: 78% to look and feel their best; 62% to treat themselves; and 53% to feel confident. “A proliferation of trends has fueled growth and innovation in many aspects of the industry; however, it has brought with it a restructuring in beauty,” said Grant. “As consumers seek feel-good experiences and strive for healthier lifestyles they are, at the same time, redefining the meaning of beauty in their lives.” Indeed, the beauty care industry is undergoing a significant restructuring. With makeup booming, millennial consumers calling the shots, traditionally strong U.S. December sales flagging, and digital and omnichannel brands disrupting business models, 2016 will go down as a year of change, setting up a dynamic

specialty, while warehouse was a strong grower in the prestige space. Rost noted that one-third of U.S. consumers purchase products via a subscription, with top 10 options including men’s shaving. Grant presented data that showed a greater portion of prestige beauty sales migrating online, led by skin care, followed by makeup and fragrance. In December alone, online prestige sales rose by $100 million, totaling nearly $500 million. In fact, 80% of total sales gains for prestige beauty could be attributed to the online channel. A big winner was Amazon, which captured more than 50% of beauty buyers age 18–34. As retail outlets—digital and physical—have proliferated, so too have the number of products launched across categories. This growing array of options puts significant power in consumers’ hands, said Rost. However, he cautioned, this increase in options has not led to growth, especially for the industry’s biggest brands.

TOP-PERFORMING 2016 BEAUTY LAUNCHES (DOLLAR VOLUME SALES; NPD)

South America’s prestige beauty segment grew 14%, according to NPD data, while North America and Europe grew by 7% and 2%, respectively. Notably, France, where two thirds of prestige beauty sales are attributed to fragrance, was the only European market to drop in 2016.

Scattered Channels Beauty shopping has dispersed across a growing array of channels, said Grant. She noted that the fastest growing channel in both the overall market and the prestige space was beauty supply, followed by the internet. Other fast-growing channels in the general market included drug and

• Skin Care: Estee Lauder Revitalizing Supreme+ (MSRP: $78) • Makeup: Anastasia’s Modern Renaissance Eye Shadow Palette (MSRP: $42) • Hair Care: Living Proof Full Dry Volume Blast (7.5 oz, MSRP: $28) • Hair Care: Rita Hazan Root Concealer Touch Up 2 Spray (MSRP: $25)

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THE WELLNESS PIVOT: CONSUMERS, RETAILERS AND BRANDS A greater portion of Americans—87% as of 2016—are taking concrete steps toward more healthy lifestyles, said Jordan Rost, VP, consumer insights, Nielsen, during a recent CEW beauty industry trend briefing. This reflects a focus on preventative, less reactive wellness (see page 23).

WELLNESS RESHAPING RETAIL Consumers are more open to non-traditional retail channels, said Rost. As a result, a greater number of consumers are gravitating to retail health clinics, which in turn drive beauty care purchasing decisions. About 20% of Americans visited a retail health clinic last year, said Rost, with 27% influenced to purchase personal care during their visits. Notably, millennials visited retail health clinics at a rate of 76% in 2016. Of those, 49% purchased personal care during these visits.

BRANDS GET WELL Brands have noticed this pattern and are helping convert retail into a consumer resource. For instance, CVS and Unilever teamed up for the Love Your Skin program, which provided non-branded skin care advice, as well as product options. Sarah Jindal, senior innovation and insight analyst, beauty and personal care, Mintel, noted in her CEW presentation that wellness has trickled down to brand boutiques, such as philosophy’s wellness store in New Jersey, which offers both products and wellness/ relaxation services and information for shoppers.

WELLNESS AND BEAUTY CARE BRANDS On the product side, said Rost, brands have found success with more natural, less clinical products. He noted that simple, raw cosmetics grew 13% last year, compared to 3% of the

Tarte’s athleisure-focused range highlights the ways in which brands are making the wellness pivot.

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CVS and Unilever teamed up for the Love Your Skin program, which provided non-branded skin care advice, as well as product options.

overall market. A prime example is Burt’s Bees entrée into the drinkable wellness space, which includes Protein +Healthy Radiance, which supports healthy skin. Jindal discussed a range of brand opportunities in the wellnessbeauty space, but warned brands that to succeed they must understand what type of fitness consumer they’re serving, whether sofa surfers or CrossFit maniacs. Key opportunities include: 1. Clear, believable product claims. 2. Differentiation through emerging claims such as anti-pollution and defense against high energy visible light from electronic screens. 3. Multifunctionality that offers several benefits in one package. 4. Portability for on-the-go lifestyles. Brand examples: Yuni Beauty, Sweat Cosmetics, Stowaway Cosmetics and Milk Makeup. 5. Workout-proof beauty. Brand examples: Tarte’s athleisure collection and Brazil’s Onde o Cloro hair care. 6. Post-workout beauty. Brand examples: ActivBod and Pretty Athletic. 7. Heat-, friction- and water-activated products, such as those leveraging encapsulation tech, that can tone, condition or protect the skin when exposed to specific elements or pressure. 8. Outdoor-friendly products: For those working out in the great outdoors, brands can offer UV and pollution protection, as well as devices that monitor skin health in real-time. 9. Mature fitness: Products that can stimulate the senses, promote skin elasticity and keep aging bodies comfortable during exercise. n

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As a result, it’s critical for brands to leverage digital research tools, particularly social media platforms, to ensure they are front-of-mind in the path to purchase. Though shopability on these platforms is far from seamless, Rost characterized the digital space as a “brand playground” in which consumers are far more brand-loyal, compared to the brick and mortar channel. The brands that leverage digital research tools and make products readily purchasable on discovery platforms will win the path to purchase. This will become increasingly important as in-home AI tools such as Amazon Echo proliferate. Assuming that technology will own choice, what will it mean for brands?

Skin Care 2016 Sales U.S. skin sales grew 2% in 2016, according to Rost. Men’s skin care alone grew 4% in 2016, per NPD data, with key segments growing by 7% to 74%. Grant noted that, unlike other beauty categories, skin care’s mass sales growth outpaced that of the prestige segment, the latter of which rose by 3%. She added that prestige skin care has a greater share of sales coming from the online channel, compared to makeup and fragrance.

What Declined in Skin Care The skin care category’s modest gains overall reflect its 2% decline in new product introductions, said Grant.

t c ( c s 8 t d m d

U.S. SKIN CARE BY THE NUMBERS (SOURCE: NPD)

i t s 7

a f i T m c t

2%: portion of prestige beauty gains attributed to skin care

24%: 2016 year-over-year growth in masks 20%: 2016 year-over-year growth in lip treatments 7%: 2016 year-over-year growth in facial cleansers 5%: 2016 year-over-year growth in facial exfoliators At the same time, standalone antiaging products continue to stagnate as younger consumers turn toward more preventative skin care products.

TOP 5 SKIN CARE BRANDS FOR 2016 (SOURCE: NPD)

What Grew in Skin Care Skin care saw gains in the natural/ spa and clinical areas. And, while

SKIN CARE LAUNCHES THAT OUTPERFORMED THE GENERAL MARKET IN 2016 (SOURCE: NPD) • Chanel Sublimage La Crème Texture Supreme (1.7 oz, MSRP $400) • La Mer The Perfecting Treatment (1.7 oz, MSRP $240) • Estee Lauder Advanced Night Repair Concentrate Recovery Powerfoil Mask (4 masks, MSRP: $79)

1. Clinique 2. Estée Lauder 3. Lancôme 4. La Mer (up from #5 in 2015) 5. Philosophy (down from #4 in 2015)

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the overall women’s facial skin care segment rose just 1% in 2016 (according to NPD figures), hot categories in facial skin care, like sheet masks, grew by anywhere from 8% to 84%. Masking has gained some traction with men, according to NPD data, and exploded in the women’s market worldwide by 24–53%, depending on the region. Grant’s briefing noted that makeupinspired skin care is on the rise. In terms of skin care formats, oil declined slightly while clay and paper rose by 7% and 14%, respectively.

Skin Care Brand Discovery Rost noted that skin care consumers are heavy users of digital platforms for brand discovery, with the top sites including Pinterest, Instagram and Twitter. In addition, using charcoal masks as an example, it is increasingly clear that search traffic can closely track sales trends.

Millennials visited retail health clinics at a rate of 76% in 2016. Of those, 49% purchased personal care during these visits. The Good and Bad in 2016 Fragrance Sales December was once reliable territory for fragrance industry sales, said Westly Morris, senior vice president, fine fragrance, Mane, during an introduction of the CEW trend briefing. Yet, in 2016, U.S. December prestige fragrance sales were down. Rost explained that 2016 fragrance sales dropped 6%, year-over-year.

U.S. FRAGRANCE BY THE NUMBERS (SOURCE: NPD) 1%: portion of prestige beauty gains attributed to fragrance 2%: sales growth of juices 21%: percentage of total fragrance sales growth attributed to flankers 75%: 2016 year-over-year growth in home ancillaries gift sets 21%: 2016 year-over-year growth in home ancillaries 19%: 2016 year-over-year growth in diffusers 16%: 2016 year-over-year growth in candles

2016 TOP WOMEN’S PRESTIGE FRAGRANCES (NPD) 1. Coco Mademoiselle 2. Chance 3. Amazing Grace 4. Chanel No 5 5. La Vie Est Belle

2016 TOP MEN’S PRESTIGE FRAGRANCES (NPD) 1. Acqua Di Gio Pour Homme 2. Bleu De Chanel 3. Sauvage 4. L’Homme Yves Saint Laurent 5. Armani Code

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According to Grant, mass sales dropped significantly, while prestige sales rose 1%. All of the prestige gains were made in the online space, which increased sales by $91 million. Grant added that the overall fragrance category saw 9% fewer launches in 2016, compared to the previous year. According to NPD data, 10% fewer women age 18–24 and 5% fewer women age 25–34 reported shopping for fragrance in all of 2016. Of those that did, 76% reported purchasing fragrance as a treat for themselves.

Fragrance Highlights According to Grant, the niche fine fragrance segment has added more than $240 million to the fragrance market since 2014. She noted that flankers added $84 million to the fragrance market, comprising 21% of total sales. In addition, per NPD data, consumers worldwide tend to favor fragrances alone, over gift sets, the latter of which have experienced declines in roughly half the global markets.

Fragrance’s Millennial Problem Millennials are less likely than previous generations to adopt a signature perfume. A recent analysis from Kissura Craft, director, industry analyst, beauty, at NPD, noted that just 10% of fragrance wearers have a signature scent. Those consumers “are more likely to be 45-years old and older, men and white.” Not necessarily a high-revenue-growth demographic.

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“Forty-three percent [of fragrance consumers] are very engaged like me and have a wardrobe of fragrances, as we like to try new and different scents,” Craft’s analysis continued. “These wearers are more likely to be under 45 years old, women, and black or Hispanic. The other 46% tend to be white, and are somewhat engaged with a narrow selection of fragrances, as they stick to just a few favorites.” Fragrance e-commerce site Scentbird has endeavored to address these preferences by offering a “30-day supply of any designer fragrance every month for just $14.95.” The company has also launched fragrance gift box sets such as Sassy Bombshell ($59.95, includes a one-month Scentbird subscription), which comprises a trio of sample-sized scents: Not a Perfume, So Nude and Eros Pour Femme.

2016 BEAUTY BY THE NUMBERS $62.46 billion: U.S. cosmetics industry revenue, 2016*

Masking has gained some traction with men, according to NPD data, and exploded in the women’s market worldwide by 24–53%, depending on the region. *Statista projections, as of press time

Bringing Emotion Back to Fragrance Craft’s report pointed out other market dynamics that require the fragrance industry to rewrite the rulebook. She noted, “If fragrance marketers communicated the mood or feeling of a fragrance, doing so would speak to the nearly 70% of wearers who like to let their moods dictate which fragrance to wear.” In fact, Phlur, an indie perfume brand from Austin, Texas, addresses this opportunity by accompanying fragrance descriptions on its website with a compilation of visuals that evoke the concept of the fragrance, as well as a soundtrack of music that reinforces the scent’s emotional cues.

The belief, as articulated by Phlur, is that the public can better connect to emotional cues than a simple laundry list of fragrance notes.

2016 Makeup Sales Makeup comprises nearly 50% of total beauty sales, Morris noted in his CEW introduction, highlighting a fundamental shift in the composition of the beauty market, which has traditionally been somewhat evenly divided among makeup, skin care and fragrance. According to Rost, cosmetics sales grew 3% in 2016. In December alone, makeup achieved sales of more

than $1 billion, said Grant, accounting for 42% of all women’s prestige beauty sales for the month. Grant noted that the prestige makeup category vastly outgrew mass, rising 12% globally in 2016. In fact, prestige makeup sales rose 6% in Europe, 13% in North America and 23% in South America, according to NPD figures. Grant added that 76% of total beauty incremental gains and 83% of the volume worldwide in 2016 came from prestige makeup. Some makeup categories grew by as much as 18–34% in 2016, while face, lip and eye products rose by 13%, 13%

U.S. MAKEUP BY THE NUMBERS (SOURCE: NPD)

Phlur, an indie perfume brand from Austin, Texas, accompanies fragrance descriptions on its site with a compilation of visuals that evoke the concept of the fragrance, as well as a soundtrack of music that reinforces the scent’s emotional cues.

12%: global prestige makeup growth in 2016 24%: global growth in new makeup sales, year-over-year 82%: portion of prestige beauty gains attributed to makeup

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and 12%, respectively, per NPD data. In lips, the biggest color growth came from nude/brown and mauve tones. Makeup launches that outperformed the market last year included Urban Decay Vice Lipstick (MSRP: $17.00), Benefit Gimme Brow (MSRP $24), Too Faced Born This Way Naturally Radiant Concealer (MSRP: $28) and Tarte Grav3yardGirl Swamp Queen Eye & Cheek Palette (MSRP: $45). It’s notable that the leading brands were indies or previously indie brands.

THE TOP 5 MAKEUP BRANDS FOR 2016 (NPD) 1. MAC 2. Urban Decay (up from #3 in 2015) 3. Clinique (down from #2 in 2015) 4. Lancôme 5. BareMinerals

One-third of U.S. consumers purchase products via a subscription, with top-10 options including men’s shaving. Sixty-one percent of U.S. women reported using makeup in 2016, said Grant, a gain of 2% since 2014. That’s 2.5 million more women using makeup. The category’s dynamism has been driven by high launch activity (up 24%, year-over-year in 2016) and gains in fringe categories. But women aren’t the only ones boosting makeup. A recent report from Mintel analyst Alice Goody noted that U.S. makeup brands like

CoverGirl have begun to embrace male influencers in pursuit of a rising number of makeup-wearing men. Goody pointed to U.K. counterparts such as MMUK Man, which caters to the 15% of U.K. males under 45 who bought makeup in 2016.* n

* Goody conceded that some portion of that 15% perhaps bought makeup for a loved one, though that’s unlikely to be the whole story

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CONSUMER INSIGHTS

BEAUTY IS HER

BEAT

Inside the hearts and minds of the beauty enthusiast

The beauty enthusiast’s appetite for beauty information, tutorials, articles, advertisements, videos, samples and products is growing— she cannot get enough.

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Consumer Insights

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Global Cosmetic Industry | March 2017

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| BY DENISE HERICH, The Benchmarking Company

Half of Ulta Beauty’s sales come from so-called “beauty enthusiasts,” according to CEO Mary Dillon.a These shoppers freely mix and match prestige and mass products, indie and legacy brands, and are always looking for the latest trendy beauty solutions. Meanwhile, Walgreens has launched Beauty Enthusiast, a beauty club within its Balance Rewards loyalty program, targeting a similar set of consumers. But who are these beauty enthusiasts? How do they think? What do they want? Here, Denise Herich takes a closer look. —Editor in Chief

A Mindset, Not a Demographic But who is this beauty mega-force? Is she a Gen Xer with the cash to spare to afford her habit? Or is she the baby boomer, who helped put some of today’s leading brands on the map with her support? Today’s beauty champion is everyone from millennials to baby boomers. Beauty enthusiasts are women aged 18–60-plus who love the role beauty plays in their lives, have a strong emotional attachment to their beauty

brands and are not afraid to show it by wearing and using a vast amount of products, and by dedicating a large proportion of their discretionary budgets to beauty purchasing.

Too Much Beauty? No Such Thing Unlike a beauty minimalist, who uses just the scant amount of products she can get away with, doesn’t follow trends and sticks to her favorite brands year after year, the beauty enthusiast actively engages with the entire beauty (Continued on Page 30)

he ultimate beauty lover goes by many names: beauty junkie, beauty diva, beauty queen or beauty enthusiast. But, whatever you call herb, there are several facets about this uber-beauty consumer that are undeniable: she loves the role beauty plays in her life, she’s attached to her favorite brands and, when it comes to her attitude toward beauty purchases, less is definitely not more. Indeed, her appetite for beauty information, tutorials, articles, advertisements, videos, samples and products is growing—this beauty enthusiast cannot get enough. She is eager for what your brand has to share, tell, show and, most importantly, sell.

Remarks given at the 2016 CEW Transformational Leader event in New York.

Of course, some beauty enthusiasts are male.

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What really grabs the beauty enthusiast’s attention are consumer claims from women like her, and seeing actual photos of other women either wearing the products or showing a transformation after having tried the products. Consumer Insights 27

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CONSUMER INSIGHTS

In the past 12 months, 85% of beauty enthusiasts have spent up to $75 on makeup such as foundation, eyeliner, lip gloss and eyeshadow. (Continued from Page 27)

experience. They know every product that’s au courant; are aware of the latest trends and technologies as (or even before) they come down the pike; they follow the leading bloggers and beauty influencers; they keep up with brands on social media and their websites; and, in many ways, this beauty diva is also a beauty authority in her own right. But don’t ask her to be (too) loyal because that’s not really her motivation. Sure, she will have her favorite products, but to get to this gal’s heart, you must feed her need for more. In fact, if she had a tagline, it would be, “There’s no such thing as too much beauty.” Today’s beauty enthusiast is a brand’s dream: she is connected, engaged and informed about beauty, she values the benefit it brings to her life and she loves to share how she feels about beauty with everyone she knows. To gain an even deeper understanding of just what makes this beauty tick, we surveyed thousands of consumers and asked them to tell us their thoughts

7% of beauty enthusiasts shop for beauty products daily. on beauty: how often they use and purchase products, where they find them, and more.

Beauty Is Rooted in Her Lifestyle Beauty is important both to the beauty enthusiast’s everyday life and her overall sense of well-being, underscoring why 92% have purchased a product from their favorite beauty brand in the past 12 months. While some consumers might view shopping for beauty as a chore only completed when they need new products, not so the beauty diva. She likes to shop for beauty, and looks forward to the excitement and satisfaction it brings. In fact, 41% of beauty enthusiasts are shopping for

new beauty products every month. Another 24% are shopping every week—and although small, 7% are shopping daily!

Why She Buys Although our beauty lover is addicted to all things beauty, she does have purchase motivators that guide her shopping behavior. When considering a new beauty purchase: • 92% say that “products are suitable for me” is an extremely important factor • 88% are motivated by “a brand I know and trust” • 79% are motivated by samples before purchase • 78% are motivated by price

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When asked what would make her purchase more beauty products, 77% of enthusiasts said, “If the price was lower.”

What She’s Buying Color cosmetics are the beauty enthusiast’s biggest indulgence. In the past 12 months, 85% of beauty enthusiasts have spent up to $75 on makeup such as foundation, eyeliner, lip gloss and eyeshadow. Other categories are also earning her monthly spend: 72% of beauty enthusiasts have spent up to $50 on facial skin care; 85% have spent up to $50 on bath and body care; and 79% have spent up to $50 on hair care or hair tools.

Where She’s Buying It The beauty enthusiast has her go-to retail favorites: • 69% shop at superstores such as Target or Walmart • 62% at drugstores like Walgreens or RiteAid • 61% are hitting up Sephora, Ulta or another specialty beauty retailer • 55% are browsing the online beauty department at Amazon.com Interestingly, while more conventional beauty consumers might seek out products from very specific sources (such as a drug store for the beauty minimalist), the beauty enthusiast doesn’t limit her search for new beauty products to only “beauty retailers.” Because beauty is such an important part of her daily ritual and plays such a starring role in her life—Leave the house without makeup? Not this girl!— the avid beauty consumer is always on the lookout for products wherever she is shopping: drug stores, luxury department stores, discount stores, etc. And, usually, she finds them.

products and technologies. Seventypercent of beauty consumers say they spend significantly more time online than they did 10 years ago, with 42% spending between three and five hours, and 32% spending six to 11 hours, per day, online browsing, reading email, checking in on social media or shopping.

Importantly, the time our beauty diva spends online is directly correlated to an increase in her purchase of beauty products. Forty-four percent of enthusiasts buy significantly more beauty products based on their online habits, while 30% say they spend somewhat more. Seventy-eight percent agree that social media has

44% of enthusiasts buy significantly more beauty products based on their online habits. Not surprisingly, a vast majority of the time beauty enthusiasts spend online is spent on social media: • 66% say up to half their online time is spent on social sites • 22% spend 51–75% of their time on social media What’s she is doing while online plays a big part in how she engages with her favorite beauty brands. The beauty enthusiast wants to feel connected to her favorite products and brands and, consequently, spends a good bit of her time online researching and gathering information that will help her find even more great beauty products to use and purchase.

made it easier for consumers to find personalized information about new brands and products.

How She Engages With Brands The connection she experiences— both to brands and other beauty consumers—by engaging on social media is very important to the beauty enthusiast. When it comes to talking about, trying, or sharing her thoughts on beauty products, this consumer is the most social of all butterflies. Ninety percent of these consumers post product reviews or rate products for the sheer fun of it: “I love the product and wanted to share my

Beauty enthusiast online habits How she uses the Internet

Portion

Comparing prices

72%

Reading reviews

69%

Actually making a purchase

61%

What Influences Her

Finding out what is on sale

59%

The Internet has taken over as every beauty consumer’s primary method of gathering information about brands,

Researching products to go buy in a store

55%

Read product claims

33%

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CONSUMER INSIGHTS

experience!” Because beauty is such an important part of the beauty enthusiast’s daily life, she relishes the opportunity to be a beauty authority and share her experiences with others: • 80% of beauty enthusiasts post reviews or comments because they want other women to benefit from what they learned using a specific product • 58% want to make sure other consumers don’t make the same mistakes they did when using a product The sites on which she’s most likely to post product reviews or comments? Amazon.com (88%) and Sephora.com (37%). The sites where she’s most likely to read product reviews or comments? Amazon.com (89%), Sephora.com (54%) and Ulta.com (50%).

What She Trusts Not everything the beauty enthusiast reads online carries the same influence. What really grabs her attention are consumer claims from women like her, and seeing actual photos of other women either wearing the products or showing a transformation after having tried the products. Eight-three percent and 86% of beauty enthusiasts say positive consumer claims and great consumer reviews, respectively, are highly influential. Other influential factors include loving the way a product looked on someone else (72%) and before-and-after pictures (61%). Finally, just because she’s embracing everything social about beauty doesn’t mean this consumer has completely given up on more traditional forms of beauty news. Even though 52% of beauty enthusiasts completely agree that, today, most of their beauty information comes from online sources (vs. 10 years ago, when she relied on print publications and ads), 36% of beauty divas still look for beauty advice in good old

36% of beauty divas still look for beauty advice in good old paper magazines.

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The most important factors for beauty over the next 10 years Category Skin care

Age-specific kits (74%)

Brightening/lightening products (66%)

Face masks (61%)

Makeup

Good for your skin makeup (87%)

Life-proof makeup (66%)

Color palettes (65%)

Hair care

Advanced hair tools (78%)

Hair texture products (60%)

Hair masks (54%)

Laser skin rejuvenation (60%)

Age-defying injections (58%)

Microdermabrasion (57%)

Cosmetic treatments

paper magazines like Allure and Cosmopolitan, 35% in Glamour and 21% in InStyle.

Beauty in the Next 10 Years Not surprisingly, the beauty enthusiast has an opinion about beauty trends and changes coming to the industry in the coming years: • 82% believe personalized technology to help find the perfect look or color will become more popular, as well as the use of selfies to find the best product (58%) • 82% say consumer claims (from women like her with similar concerns) will become a more popular purchase motivator • 77% say the influence of social media will be even stronger • 82% say natural/organic products will rise in popularity • 74% say the same will be true for eco-packaging • 74% say the advent of multi-benefit devices, such as one tool that will offer laser hair removal and skin rejuvenation, will be more popular As for what she thinks will be important and trendy in four main beauty categories—skin care, makeup, hair care and cosmetic treatments— over the next 10 years, see the sidebar above. www.GCImagazine.com

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Today’s beauty enthusiast is a brand’s dream: she is connected, engaged and informed about beauty, she values the benefit it brings to her life and she loves to share how she feels about beauty with everyone she knows. Beauty Barometers Although there are many different beauty personalities, and not all consumers are as addicted, connected and attached to beauty as the enthusiast, in many ways she is the barometer for what the industry has done, is preparing to do and how far it can go. Listening to the enthusiast when she talks about beauty and paying attention to how she interacts with not just your products, but your website, social media feeds and brand messaging can provide you with critical intelligence into how to capture not just her, but all beauty consumers who, whether they realize it or not, are following her lead.

This article includes data derived from three primary studies conducted by The Benchmarking Company, including The Sephora Shopper (2015 – 5,000+ respondents) and 10-Year Trends (2015 – 3,400+ respondents) and TBC’s upcoming 2006–2016 PinkReport Retrospective: A Consumer Love Affair with all Things Beauty (2016 – 2,700+ responses). n Based in sun-seared San Diego, DENISE HERICH is co-founder and managing partner at The Benchmarking Company (www.benchmarkingcompany. com). The Benchmarking Company provides marketing and strategy professionals in the beauty and personal care industries with need-to-know information about its customers and prospects through custom consumer research studies, focus groups, its annual PinkReport, and consumer beauty product testing for marketing claims.

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BRAND STORIES

IF I HAD TO DO IT OVER:

Defining Your Brand Story Advice, from experts who’ve been there, on how to craft a brand narrative that will resonate with the consumer.

Whatever your story, be real, be genuine, be true.

| BY ADA POLLA, Alchimie Forever • Keep your story concise and focused on the consumer. • Ensure the visual elements of your brand match the message conveyed by your words. • Offer a benefit to the consumer, along with a message that resonates emotionally.

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Consumers and retailers believe in a good story. During the recent FounderMade Wellness Summit (page 12), Abby Levy, president of the wellness content and retail platform Thrive Global, noted that there is a difference between discoverability and purchase. As such, she encouraged brands to tell a good story because “no one can tell your story better than you.” She explained that consumers want a story, the science behind the brand and to understand the promised impact it will have on their lives. Here, Ada S. Polla looks into what it takes to create and tell that story. —Editor in Chief

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“A

brand story tells your audiences what makes your brand unique,” say Marisa Güntlisberger, senior brand consultant, omnichannel experience, and Thea Ferretti, senior brand consultant, at the Branders Group. “Concise and memorable, it will help you forge a positive connection with your audiences.” I have found crafting a brand story that resonates with the consumer, sets it up for success and differentiates it from the millions of competitors to be the biggest challenge in brand development. Here are some the lessons I learned along the way:

Marketing and branding are a profession, an art, a skill. Not everyone knows how to market or brand. For Alchimie, we waited a long time (perhaps too long) before working with branding professionals, mostly for budget reasons. If I had to do it over, I would work with marketing professionals earlier on—as it is not my area of expertise.

People’s attention spans are short, so a brand story must be short. Never has KISS (“keep it simple, stupid”) been more important. My brand’s story is my family’s story. As such, it is rich, complicated, long and filled with details. It took me the better part of 10 years to learn to focus that message. For example, while my mother and father—an internist and dermatologist—created Alchimie, we tell the story focusing on my father exclusively (with Mom’s blessing of course), as he is Switzerland’s leading dermatologist. www.GCImagazine.com

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If you are crafting a brand story that crosses borders, it’s important to be aware of the cultural differences and varying habits of your audience. In the age of social media and transparency, authenticity is key.

A beauty consumer in the U.S. is not the same as her counterpart in Europe.

Whatever your story, be real, be genuine, be true.

If you are crafting a brand story that crosses borders, it’s important to be aware of the cultural differences and varying habits of your audience. And here are what some experts I trust have to say on the matter.

A brand story is told in images, colors and other visual elements as much as it is told in words. Make sure these two aspects of branding match. For example, our packaging used to have the color green and a tree motif on our boxes—yet our brand is not 100% natural. Our words were saying one thing, our packaging another, which made it impossible for the consumer to grasp our point of difference.

Make sure you are not talking to yourself. Some aspects of your brand will be absolutely essential to you, as you are emotionally attached to it. However, these many not be the same aspects that are important to your consumer or that will make you a success. Try to tell the difference between the two.

“The primary protagonist in your brand story isn’t your brand, it’s your customer,” says Jennifer Mapp Bressan, brand manager of CIBU. Brand Stories 35

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BRAND STORIES

Make Consumers Feel Understood Branders (Zurich, Switzerland): Marisa Güntlisberger, senior brand consultant, omnichannel experience, and Thea Ferretti, senior brand consultant While I have worked with Güntlisberger and Ferretti in a limited capacity for Alchimie Forever, my sisters Rachel and Cyrille, who run our sister company, Forever Institut, in Geneva, have worked with them for

a complete rebranding of our medical spa. Here are Güntlisberger and Ferretti’s recommendations: 1. Start with the brand’s purpose or belief: Consumers want to buy brands that are in line with their values and aspirations. Take us on your journey! 2. Explain how you do things: The way you approach your purpose or belief is different than any other. Tell us what makes you unique. 3. Choose to focus: If you want your brand to be or say too many things at

once, you will not stand for anything at all. Stay focused. Keep it simple. 4. Test it with your trusted entourage: A great way to know if you’re on the right track is to test your brand story. What are first spontaneous associations among your trusted entourage? Is it authentic and aspirational? Does it fit with your brand? 5. Finish with the ultimate consumer beneﬁt: If nothing else, the end must be memorable. Make us feel understood. Connect with us. Think of the end as a well-crafted sloganlike statement that conveys the brand promise from a consumer perspective.

Your Brand’s Storyteller and Audience CIBU (owned by Ratner Companies, Vienna, VA): Jennifer Mapp Bressan, brand manager Bressan is one of the best brand storytellers, particularly in social media and on video, as is evidenced by what she has accomplished with CIBU hair care. To her, the five critical elements of successful brand story telling are:

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Brand Stories

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1. The tone: If your brand were a person, what role would it play in your customer’s life? Friend? Client? Doctor? Trusted expert? Nail that down first and then speak to her in that tone of voice—always. 2. The narrator: A face person offers your customer a living, breathing brand identity to animate your story. If your face person has played a critical role in the brand evolution—amazing. If not, fall back on tone and brand role. The narrator for a clinical skin care brand story should be a dermatologist (or his daughter), not a makeup artist or chatty gal pal. 3. The main character: The primary protagonist in your brand story isn’t your brand, it’s your customer. Weave her likeness, her feedback, her experience and the depth of her loyalty into your brand story via social

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media, influencer outreach and content marketing. 4. The parable: Great literature enriches the life of the reader by revealing some universal truth about the human condition. Brand storytelling should similarly enrich or simplify your customer’s life. Your brand parables can be delivered via a 25-second eye shadow application tutorial or an international philanthropic partnership—just make sure your brand parable resonates with your brand tone. 5. The working edit: Your brand story should constantly evolve in response to your customer experience. Listen to her criticism and implement appropriate change.

It’s About the Consumer, Not You BeautyMatter (New York, NY): Kelly Kovack, founder & CEO I have known Kovack for a number of years and did some branding work with her for Alchimie Forever a number of years ago. Many of the lessons I shared above I learned from and with her. 1. A brand story comprises more than words. To effectively communicate your brand story you must be able to do so with images. Crafting a visual vocabulary is equally important as the words you choose. 2. More is just more. Be concise and clear, not only your thoughts but in the execution.

“The most common mistake I see in marketing is businesses being narcissistic,” said Imaginal Marketing Group owner and creative director, Kathleen Turpel. 3. A brand story should not be a monologue. Remember, it’s about the consumer, not you. Why should they care about your brand? What are you going to do for them?

Tell the “Why” Story Imaginal Marketing Group (New Orleans, LA): Kathleen Turpel, owner and creative director Turpel’s expertise is on the hair side of the industry, as she works mostly with salons—an interesting perspective if you are creating a service (intangible) brand versus a product (tangible) brand. Her rules for effective branding are: 1. Be focused on your customer: The most common mistake I see in marketing is businesses being narcissistic. They are so consumed with telling everyone how great they are that they bore their audience. The

LET’S START A CONVERSATION This marks the first of a series of articles on beauty brand building that I will be writing for Global Cosmetic Industry. Throughout the year, I will cover topics ranging from branding to manufacturing to distribution and financing. I will be sharing my own experience in building Alchimie Forever, my family’s Swiss skin care brand, and reaching out to my network of other beauty brand owners, advisers and professionals in the industry to share their expertise. I look forward to your feedback, and welcome comments and questions at ada@alchimie-forever.com.

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best brands tell the “why” story. When you are selling solutions to problems— marketing is effortless. 2. Be true: Don’t use BS phrases and advertising lingo. If you have heard it before, find another way to say what you mean. (I wanted to use the word authentic, but I think that word makes us all a little nauseous now.) 3. Be positive: Stay away from cutting others down—you can always flip a negative into a positive. You want your brand to be associated with positive feelings. 4. Be brave: Have the courage to be yourself and be different. I think business owners need to be courageous, because inevitably the trolls on social media will appear. Keep your head high, your words positive, and meet them head on. 5. Be funny or profound: Make your audience laugh or cry. But make sure you don’t lose sight of telling your why, just for the sake of the emotion. You need both. n

ADA POLLA (ada@alchimie-forever. com) is the co-creator of the Swiss antioxidant skin care line, Alchimie Forever, which launched in the U.S. in 2004. Her strategic focus and implementation have yielded double-digit annual revenue growth for the company. Polla holds an MBA from Georgetown University, majored in art history and political science at Harvard University, and graduated magna cum laude with a Bachelor of Arts degree in 1999. She is also a Global Cosmetic Industry editorial advisor. Brand Stories 37

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The consumer wields her smartphone at the shelf, comparing prices and reviews, testing new products and contributing to reviews, and is ever more receptive to experiencing beauty services in a brand new way.

• Digital and social media channels have lowered the distribution and consumer engagement barriers to entry, creating new opportunities for startup brands.

WAYS

• Today’s beauty innovators are focused less on technology than they are on addressing consumer needs, from price transparency to on-demand services to online fragrance sampling.

The beauty industry is in the early days of its biggest transformation, thanks to a digital revolution that has removed traditional barriers to entry.

• Legacy brands, rather than disrupting their own businesses, are acquiring and investing in disruptive brands and services that could radically reshape their companies and drive growth.

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Brands Are Rewriting Beauty’s Rules

| BY LAURA ZIV

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hen Madison Reed Founder and CEO Amy Errett launched her high-end, at-home, hair color brand in 2013, she did so first via a mobile app. Users send a photo of their hair, get real-time feedback from an expert colorist, order the dye and receive tutorials on how to apply it. Then, Errett took her brand online with expanded e-commerce offerings, shipping products in 2014. In January 2017, Errett opened Madison Reed Color Bar, the company’s first brick-and-mortar site, in New York’s Flatiron District, where customers can get quick root touch-ups and other salon treatments. The launch sequence of Madison Reed’s services and products—mobile first, followed by e-commerce and physical store—points to a new day in the world of beauty, in which traditional business models are being transformed. To date, Errett, a former venture capitalist, has raised $40 million in VC funding to grow the company, or “movement,” as she describes it.

ScentBird’s fragrance platform has been so successful that it launched a new makeup service, Deck of Scarlet; pictured is a palette co-created by YouTube beauty expert Sonjdra Deluxe.

1. Consumer-driven Disruption

The beauty industry is in the early days of the biggest transformation it has ever experienced, thanks to a digital revolution that has removed traditional barriers to entry, such as marketing

150 times a day, according to a Health & Beauty report by Google UK.* She wants products and services tailored to her individual needs and lifestyle, at the best price, and she knows where to seek advice: her trusted influencers on Instagram and YouTube, her go-to destinations for beauty insight.

2. Influencer Power

Madison Reed views itself as “a technology startup with color at its core.” Errett’s goal is to reinvent the $10-billion-plus hair dye category by making her brand an accessible, mobile app-centric experience. To that end, Madison Reed views itself as “a technology startup with color at its core.” And instead of investing in a pricey advertising campaign or a celebrity face to endorse the brand, Madison Reed is obsessed with the consumer experience.

and distribution, while also upending products and services. At the center of it all is the consumer. She wields her smartphone at the shelf, comparing prices and reviews, testing new products and contributing to reviews, and is ever more receptive to experiencing beauty services in a brand new way. Today’s new beauty consumer has, on average, three digital devices and checks her cell phone approximately

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www.thinkwithgoogle.com www.pixability.com

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Established brands own a surprisingly small share of voice on YouTube, controlling only 5% of YouTube’s 19 billion beauty views, compared to the 95% of views controlled by vloggers and content creators. YouTube’s top 20 vloggers have 100 times more subscribers than the average beauty brand channel, according to Pixability**, a video advertising technology company. Moreover, YouTube subscribers are typically early adopters, who try new products and recommend them, in turn, to their own followers. In just six years, Huda Kattan, a vlogger-turned-businesswoman, has

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www.tubularlabs.com

***

BEAUTY DISRUPTED

built a veritable global beauty empire. The Dubai-based founder of the eponymous three-year old brand, Huda Beauty, has a staggering 17 million followers on Instagram alone, making her a top beauty influencer, with an average of 123 million views per post in August 2016, according to data from Tubular Labs***, a cross-platform video intelligence and analytics company. Kattan also has more than 1,660,000 devoted fans on her YouTube channel where she shares extensive makeup tutorials. Unsurprisingly, when Huda Beauty launches a new product, such

as Beauty Lashes, it becomes an instant best-seller in the Middle East and in the U.K.’s Harrods and Sephora. Mega branding—the celebrity face endorsing a product with a memorable tag line or a carefully curated brand message—is increasingly becoming a casualty of the phenomenally effective influencer presence on the Internet. The digital era’s new celebrities—beauty influencers— command the share of voice on various digital channels, at the expense of once monolithic brand campaigns. Consumers, in turn, are engaging

EM Cosmetics is currently set for a rebranding as of press time. Just shy of 30, Phan is already an elder in the influencer world, which has spawned several generations of megastars, niche voices, and countless brand partnerships and independent launches. As Phan’s career path shows, constant change is the only guarantee in the ever-evolving influencer space.

Madison Reed’s root touch-up product; the company views itself as “a technology startup with color at its core.” www.tubularlabs.com

***

with their favorite influencers, sharing their product preferences and beauty frustrations—a relationship that benefits both. The influencer phenomenon, though relatively new, has already evolved through several phases, as seen with the rise of Michelle Phan and her EM Cosmetics line. Phan has been posting tutorials online for 12 years, and on YouTube for 10. She has been a YouTube advertising partner since 2012, a business that propelled Phan into partnerships with Lancôme, her own Ipsy subscription service and, in 2013, the launch of EM Cosmetics in partnership with L’Oreal. As has been widely reported, L’Oreal sold EM Cosmetics back to Phan after an unsuccessful partnership.

In January, Coty announced a $600-million partnership with Younique, an online-only directselling brand described by industry insiders as “the digital evolution of the Avon lady.”

3. Turning Dialogue Into Brands

Into The Gloss blog-founder Emily Weiss launched Glossier in 2014, a digitally native beauty brand that was born from the feedback and insights she gained from her online followers. Creating a brand had not been part of the plan, but the ongoing conversation Weiss was having with her beauty community organically led to product development. The brand recently received Series B funds from

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the quality of the product, rather than the brand name, that will increasingly drive consumers’ decisions. To that end, Beauty Pie sells makeup from the same factories that supply prestige brands, minus the markups created by branding and lavish packaging. Kilgore’s aim is to create an online community of beauty obsessives, pulling together “the collective buying power of thousands of discerning beauty junkies,” in the words of Beauty Pie’s website. Creating a brand had not been part of the plan, but the ongoing conversation Emily Weiss was having with her beauty community organically led to Glossier’s development.

transforming the beauty industry with user-friendly apps that offer everyday beauty services. Millennials, in particular, live in an Uber-dominated world where it is more convenient (and second-nature) to organize a ride via a mobile app than it is to chance hailing a taxi in the street or calling a car service. Indeed, Errett has said that she wants Madison Reed to be “the Uber of hair color.” On-demand mobile apps have attracted much interest from the venture capital community, including Glamsquad (“delivering professional and affordable hair, makeup and nail …

private equity group IVP to boost its technology, expand globally, launch products in new categories and open its first retail space.

4. Radical Transparency Beauty Pie, launched in January by serial entrepreneur Marcia Kilgore, who reinvented the spa category with Bliss Spa, is poised to disrupt the beauty category once again. Her latest venture, described as “a beauty addict’s buyers’ club,” is a digital-only brand that sells luxury products at transparent factory cost. Kilgore believes that it is

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Beauty Pie sells makeup from the same factories that supply prestige brands, minus the markups created by branding and lavish packaging.

5. Beauty Gets Ubered The growing mobile on-demand trend, pioneered by Amazon, Uber, Seamless and Airbnb, is reshaping consumer shopping habits and

The attraction of Glamsquad for VCs lies not in technology but in the service’s ability to singlemindedly solve or address universal beauty challenges and needs.

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to wherever you may be”), considered the current market leader in the fastgrowing space. According to venture capitalists who see beauty as the next hot space, the appeal is not the technology itself, though of course it plays a crucial role. Like Uber, the appeal lies in singlemindedly solving or addressing a universal problem or experience, such as booking a blowout or a red carpetworthy makeover, or figuring out the correct at-home hair color shade.

competitors by acquiring the hottest digital upstarts. In the last 12 months, nearly every major beauty conglomerate has announced a strategic acquisition. In January, Coty announced a $600-million partnership with Younique, an online-only direct-selling brand described by industry insiders as “the digital evolution of the Avon lady.” Last November, Estee Lauder announced that it was acquiring Too Faced for $1.45 billion, the largest

Beauty Pie sells makeup from the same factories that supply prestige brands, minus the markups created by branding and lavish packaging. Meanwhile, Scentbird, a premium fragrance sampling site that “lets you date luxury perfumes before marrying them,” is working to solve the ultimate digital beauty conundrum: how to sell fragrance online. Launched in 2014, Scentbird already has more than 100,000 subscribers, and is poised to continue growing its community of mostly millennial fragrance lovers. The company’s platform has been so successful that it launched a new service, Deck of Scarlet, which delivers an influencer-designed palette of products to subscribers’ doors every other month for $29.95. A typical array comprises three eye colors, two cheek colors, two lip colors, an eye pencil and a lip pencil.

6. Acquiring Disruption In their battle to gain crucial digital market share, beauty conglomerates are attempting to leapfrog their

purchase in Lauder’s history, hot on the heels of its purchase of Becca Cosmetics for $230 million. The joint acquisitions will no doubt bolster Lauder’s presence in key digital channels. Beauty conglomerates are also investing in accelerating the growth of select beauty tech startups. L’Oreal has partnered with London-based digital accelerator and incubator Founders Factory for this very purpose, and recently announced five early-stage beauty tech startups for their new accelerator program. The startups include online natural personalized skin care brand InsitU, the Nailbot nail art printer and app, influencer

In just six years, Huda Kattan, a vlogger turned businesswoman, has built a veritable global beauty empire, Huda Beauty.

campaign tech firm Tailify, appbased beauty product discovery and social platform, Veleza, and location technology firm Cosmose, which “allows retailers to target offline customers via online channels.” Meanwhile, Shiseido established Shiseido Venture Partners as an internal venture capital organization to accelerate Shiseido’s vision of leveraging beauty-creating technologies.

Engagement Is King The single biggest gain that the digital revolution has delivered is proximity with the consumer. Digital beauty brands—with all their technology innovations, close consumer listening, tutorials, convenience and ease of sampling—are proving to be a force to be reckoned with. n

LAURA ZIV is a creative brand strategist specializing in beauty, fragrance and personal care. Her work spans trend analysis, innovation, ideation and concept development for brands. Ziv has a Master of Arts from Oxford University, and previously worked as a magazine writer and editor for international magazines based in New York.

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42 Beauty Disrupted Global Cosmetic Industry | March 2017

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SKIN/SUN/ANTI-AGING The Putty by Graydon ($35) is a soothing lotion for the face and body that comprises a blend of healing oils. The Putty targets skin conditions like eczema, psoriasis and rosacea and purports to moisturize and heal dry and irritated skin. Key ingredients: carrot seed, tamuni, buriti vegetable wax, citric acid, Aloe barbadensis, stearyl alcohol, vegetable glycerine and jojoba seed oil.

Graydon Moffat, pictured with her brand’s range at the FounderMade Wellness Summit in New York; courtesy of FounderMade.

The Skin R-Lift Trio by Raffaele Ruberto trio includes the Formula No. 9 Face & Eye Serum ($90), Formula No. 10 Neck & Décolleté Serum ($105) and Formula No.11 Global Crème ($98). These products work organically to provide the skin with a fresher facial look that will smooth out the appearance of fine lines and wrinkles. Key ingredients: hyaluronic acid, vitamin C, marine collagen, licorice extract, allantoin, algae extract, green tea, resveratrol and nicotinamide.

Designed with unique textile patterns, Nubian Heritage has updated its body care collections with packaging that pays homage to the diversity of healing traditions and cultures that are represented in the Nubian Heritage family of products. The beauty company offers an array of bath and body care products, but its mainstay is African Black Soap, which the company debuted in the U.S. 25 years ago (pictured). The African Black Soap Facial Care Collection features a pattern that complements the ingredients’ detoxifying properties, symbolizes purity and commemorates the strong community identity textiles have in Africa, with each community having its own design. www.GCImagazine.com

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Laboratoire Fleur de Santés new Champagne Collection uses Extrait de Champagne, which is rich in resveratrol, and a grape seed Phyto-StemCell Infusion. The products have antioxidant activity and UV and pollution defense. The result is a reduction of the appearance of photoaging, including wrinkles, sagging skin and dark spots.

Kleenex Facial Cleansing, Exfoliating Cushions have been named the skin care Product of the Year, per a survey of 40,000 U.S. consumers conducted by Kantar TNS.

ColorShade SPF 35 by Abella Skin Care ($25) is a tinted sunscreen and foundation that gives the skin a hint of color. The product is available in four shades: light, medium, dark and ebony. It reportedly works with all skin types, is water resistant and blends perfectly with other products and makeup. Key ingredients: vitamin D, vitamin E, green tea.

Solésence will apply its patented mineral skin care active technology to develop sunscreen products exclusively for Colorescience. “Colorescience is leading the fusion between color cosmetics and skin protection,” said Kevin Cureton, VP at Solésence. “We’re thrilled to support their efforts to continue to expand their portfolio with products that enable customers to have healthy and beautiful skin.”

Alicia Yoon’s Curated K-Beauty Collection has expanded the trendy beauty genre in Target stores. The range includes the Aprilskin Deep Cleaning Facial Cleanser ($7), Ariul Sheet Mask Skin Texture Improvement Facial Mask Treatment ($20) and Lagom Spray Skin Texture Improvement Facial Toner ($21).

The DNARenewal by Dr. Ronald Moy range comprises a DNA Regeneration Serum ($145), DNA Intensive Renewal ($135), DNA Foaming Gel Cleanser ($28), DNA Night Renewal ($130) and DNA Eye Renewal ($70), which help to rejuvenate and renew the skin with the help of DNA repair enzymes. Key ingredients: glycolic acid, lactic acid, natural grapefruit, DNA repair enzymes, beta glucan.

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Anti-pollution is a growing trend, especially as science continues to reveal the harm that particulate matter and other entities can cause to skin. Aligning with this demand to protect skin from pollution, Indena has launched Vitachelox (INCI: Vitis Vinifera (Grape) Seed Extract (and) Camellia Sinensis Leaf Extract (and) Quercus Robur Bark Extract), a selection of botanical compounds that reportedly act as anti-pollutants, skin protectors, free-radical scavengers and chelating agents on various common pollution-induced triggers.

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A group of scientists at Atheris SA in Geneva have discovered a protein in spider venom that has anti-aging effects. Taking a protein molecule from the venom and applying it to the skin showed the protein blocked a specific nerve signal leading to instant muscle relaxation, which resulted in an immediate topical anti-wrinkle effect. With similar properties to botulinum toxin, or Botox—but without the use of injections—the newly discovered protein can be used in creams to act on a receptor found at the skin surface.

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Specializing in plant biotechnology, Greentech is launching an unspecified active at in-cosmetics Global. The new ingredient will fight against biological damages caused by particulate matter, hydrocarbons, heavy metals, etc., and provide long-lasting protection for skin, according to the firm. The active imparts breathable protection to skin and helps restore balance, radiance, smooth texture and a glowing complexion.

PRAI Beauty’s Customizable Concentrates ($79.95, 0.5 oz./15 mL each) consist of three formulas, each highlighting a key ingredient and targeting a specific skin concern. The concentrates allow consumers to enhance existing beauty products for their specific skin concerns. The range includes Customizable Concentrate with Matrixyl synthe’6, which addresses crow’s feet and forehead furrows; Customizable Concentrate with Dermaxyl, which addresses wrinkles and agerelated skin damage; and Customizable Concentrate with Sepilift DPHP, which addresses a lack of skin firmness.

The Slidissime airless jar, developed by RPC Bramlage, was selected by MBR/Medical Beauty Research for its new premium face cream, BioChange CEA. The 50-ml jar is bi-injected in PMMA with an ABS cap, which protects the cream’s active ingredients from oxidation. The opening of the jar is located at the extremity of the “touch and slide” pump and closes after each dosage. Slidissime is available in Diamond 50 ml, with thick walls, and Quartz 50 ml, with a more compact shape.

Givaudan Active Beauty has launched PrimalHyal Gold (INCI: PEG-8 Caprylic/Capric Glycerides (and) Water (and) Octyldodeceth-25 (and) Sodium Hyaluronate), an ingredient produced by biofermentation, a sustainable manufacturing process, which allows the ingredient to be incorporated into oil-based formulas such as pressed powders, body oils, sun care oils, lipstick, lip glosses, mascaras, balms and any anhydrous formulas.

Rahn AG has launched Defensil-Soft (INCI: Propanediol (and) Albatrellus Ovinus Extract (and) Citric Acid) for skin-soothing and anti-aging effects. The COSMOS- and Ecocertcompliant active works by blocking TRPV1 expression in the epidermis’ sensory neurons and keratinocytes caused by infrared light exposure. The outcome is the prevention of so-called thermal aging. Infrared defense is one of the hottest skin care trends in Japan, according to a recent report from the Japan Times. But the anti-infrared claim is far from limited to Asia Pacific. Infrared rays penetrate particularly deep into the skin, prompting marketers to focus their efforts on the threat. For instance, Shiseido has unveiled Benefique Deep Block Essence, which reportedly protects against infrared rays. Other brands have gotten into the game, including philosophy, which makes infrareddefense claims for its Ultimate Miracle Worker Multi-Rejuvenating Cream SPF 30 and Ultimate Miracle Worker Multi-Rejuvenating Lightweight Emulsion SPF 30. Similar claims are made by Dr. Brandt Skincare’s Laser FX Bright Serum and Ahava’s Beauty Before Age Uplift Day Cream. 46 Skin/Sun/Anti-aging Global Cosmetic Industry | March 2017

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HAIR Daily Hair Dress by Mixed Chicks ($8) moisturizes dried hair by penetrating deep, allowing for split ends to be repaired and frizz to be tamed. Daily Hair Dress leaves hair smooth and silky, allowing for styling to become easier, while protecting and detangling dry, brittle hair. The Super Bowl has become known for debuting buzzy commercials, perhaps more than the game itself. Often humorous, but sometimes poignant, beer, car and insurance companies put their best foot forward as millions of viewers tune in every year. This year, It’s a 10 Haircare, claims to be the first independently owned professional hair care brand to air a Super Bowl commercial. The company has launched its new He’s a 10 collection, a grooming line of multi-tasking products for the male hair care category. The company hopes the commercial will promote its expansion into the category. Carolyn Aronson, founder and CEO of It’s a 10 Haircare, said, “We’re thrilled to land this spot during the most-watched sporting event of the year. There is no better way to reach a captive audience of men and women, not to mention their hair stylists and barbers, simultaneously. At It’s a 10 Haircare, our products are for all hair types and create instant miracle results, exceeding industry norms and consumer expectations. This commercial will do the same, and we can’t wait for the world to see it.”

The Kristin Ess brand, which promises salon-quality hair care at home, is exclusive to Target. The SKUs include: Depth Defining Water-Based Pomade ($10), Dry Finish Working Texture Spray ($14), Frizz Management Cleansing Conditioner (pictured; $14), Hydrating Curl Defining Crème ($10), Instant Lift Thickening Spray ($14), Instant Lift Volumizing Mousse ($14), The One Signature Conditioner ($10) and more.

The Dove Dermacare Scalp collection of hair care products is targeted to women and features a moisturizing formula that keeps hair healthy while also ridding the scalp of dandruff. The Dermacare Scalp series includes Pure Daily Care 2in1 and Shampoo, Invigorating Mint 2in1 and Shampoo, and Dryness & Itch Relief Shampoo and Conditioner ($5.99, each).

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Deep Brilliance Olive & Monoi Line by Chi includes 10 products that help to restore and rejuvenate hair and prevent breakage. The line includes the Optimum Moisture Shampoo ($14.50), Optimum Moisture Conditioner ($18), Deep Protein Masque ($18), Shine Serum ($25.98), Smooth Edge Pomade ($12.50), Optimum Finish Flexible Hairspray ($19.98), Optimum Finish Shine Sheen Spray ($20.98), Hair & Scalp Protective Cream ($12), Silk Conditioning Relaxer ($15) and Neutralizing Shampoo ($16.99). Key ingredients: coconut oil, monoi oil, olive oil and tiare gardenia flowers.

Keratin Complex is celebrating its 10-year anniversary. To commemorate the anniversary, the company has launched a marketing campaign to empower women by embracing their individuality and inner beauty. The campaign was photographed by Cody Rasmussen, who worked with Keratin Complex international artistic director Deb Gavin, hairstylist Andrea Wilson and makeup artist Renee Garnes. Models and social media influencers such as Dulce Ruby and Havuni are featured in the campaign. Gavin noted, “We’ve been seeing a rise in the desire to express individuality. It’s an embrace of one’s natural attributes, rather than an attempt to change or disguise them to fit a prescribed mold. At Keratin Complex, we want to show that by using our products, you can create unique styles, letting your true self shine through.” Hair 47

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Shailesh Jejurikar, executive sponsor for sustainability and president of global fabric care at P&G was recently quoted saying, “We are accelerating progress toward our long term vision and pushing ourselves to do more – with less waste.” Not long after Jejurikar’s statement, P&G announced the creation of Head & Shoulders shampoo bottle that will be made of up to 25% recycled beach plastic. It was also announced that in Europe, by the end of 2018, more than half a billion P&G bottles each year will be created with up to 25% post-consumer recycled (PCR) plastic. This will represent more than 90% of all hair care bottles sold in Europe and includes brands such as Pantene and Head & Shoulders, according to the company. The creation of these bottles is unique, in that thousands of volunteers and hundreds of non-governmental organizations are responsible for collecting plastic waste that is found on beaches and will require a supply of 2,600 tons of recycled plastic. The limited edition Head & Shoulders bottle, made possible by a partnership with TerraCycle and SUEZ, will be available in France this summer in Carrefour.

Just For Men introduced Control GX, a “smart,” near-universal hair care system that gradually reduces gray hair permanently using a new biomimicry technology. The shampoo retails for $7.99, while the 2-in-1 shampoo/conditioner retails for $9.99. “The shampoo mimics the universal pigment held within a strand of hair to create every person’s natural hair color [excepting redheads],” the brand has claimed. “It gradually restores pigment to gray hairs with each use.” The pigments are trapped inside Control GX’s cleansing and conditioning molecules and are released only when the product is massaged into the hair. The result is permanent gray reduction. “Control GX is perfect for a guy who is looking for the easiest possible way to slowly reduce and even ultimately eliminate his gray,” said Ralph Marburger of Combe’s Just For Men brand. “It easily fits into the routine of any guy who wouldn’t use a traditional hair color.”

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COSMETICS

Pixi by Petra has expanded its partnership with Target, by offering a wider range of brands, including Beauty Blush Duo + Kabuki Brush in Peach Honey ($18). Pixi by Petra is also introducing products curated by influencers including Aspyn Ovard (Eye Accents Kit [$16]), Caroline Hirons (ItsEyeTime [$24]), Judy Travis and Maryam Maquillage (Strobe and Bronze [$20]). Beauty Pie, a subscription-style cosmetics brand that calls itself “the Buyers Club for Beauty Addicts,” has a mission to offer consumers beauty products at “transparent factory cost.” The brand recently introduced its 0.28 oz Moonlighting Balm Radiance Powder in a range of optical pigments including Soft Soul and Supernova. The powder, which touts a skin-plumping effect, retails for $30 for non-subscribers, but just $3.30 for members.

Liquid Highlighter by Starlooks ($12) is made from professionalgrade ingredients that help provide the consumer with a sweet, subtle glow.

Glossier’s Boy Brow “all-in-one brow fluffer, filler, and shaper,” is available in four shades: Blond, Brown, Black and Clear. The formulation is inspired by hair pomade, for a soft, flexible hold made possible by a creamy wax formula.

Kinx Active, an active wear cosmetic company, offers two cornerstone products: eyeliners and makeup wipes, with nail lacquers and gels coming next. The eyeliners are designed to stay on all day, feature a creamy consistency with a built-in sharpener and are available in black, syrup and cream. The makeup wipes are packaged in 4-inch by 2-inch 30-sheet packs, and can be used as either makeup wipes or cleansing towelettes. Key ingredients include honeysuckle flower extract and Nymphaea alba flower extract. www.GCImagazine.com

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Palladio Beauty has partnered with fast fashion retailer Forever 21. The color cosmetic company will retail eight of its bestselling products on forever21.com. Palladio specializes in cosmetics that feature antioxidants, natural humectants, skin soothers and natural oils. Cosmetics 49

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This year’s Rochambeau FW17 runway show got a little help from Maybelline New York in getting models catwalk-ready. Maybelline New York lead artist, Carolina Dali, dolled up Maybelline New York spokesmodel, Herieth Paul, with a graphic look to complement the punk-inspired collection using several recently launched products from the cosmetic company. Face: Maybelline New York Dream Cushion Foundation, Maybelline New York Fit Me! Concealer and Maybelline New York FaceStudio Master Blush Color & Highlighting Kit; brows: Maybelline New York Brow Drama Shaping Chalk Brow Powder and Maybelline New York EyeStudioBrowDrama Scultping Mascara in Clear; eyes: Maybelline New York Master Prime Long-Lasting Eye Shadow Base in Prime + Illuminate, Maybelline New York Curvitude Liner, Maybelline New York ExpertWear EyeShadow in Teal the Deal (pictured) and Maybelline New York The Colossal Big Shot Mascara; and lips: Maybelline New York Color Sensational Inti-Matte Nudes in Peach Buff and Maybelline New York Baby Lips in Quenched.

Givaudan Active Beauty has launched a multifunctional anti-aging, sun filter protection, dark cherry colored lip gloss formulation, S3D Fascination, which features ingredients such as PrimalHyal Gold (INCI: PEG-8 Caprylic/Capric Glycerides (and) Water (and) Octyldodeceth-25 (and) Sodium Hyaluronate) and Megassane (INCI: Caprylic / capric triglyceride (and) Phaeodactylum tricornutum extract) and the unimer U-151 polymer.

The You Had Me at Aloha Eye Shadow Palette by Cargo Cosmetics ($34) is organized into three coordinated quads in order to easily achieve day and night looks. The palette includes 12 long-lasting shades that were inspired by the sand, sea and foliage of Hawaii. This product also comes with a black eye pencil and a dual-ended brush. The set retails at Kohl’s.

It’s raining men ... ’s beauty products, according to a recent report from Kline Group (www.klinegroup.com) consumer products analyst, Kelly Alexandre. The analysis notes that in recent years there has been a shift in thinking around men and beauty in the United States. Alexandre explains that men’s cosmetics and gender-free beauty are set to be the next steps in the male beauty segment. This trend has already caught the attention of the media, several indie beauty brands, including Milk Makeup and Menaji, and name brand beauty companies, such as CoverGirl, which recently named its first “Cover Boy,” James Charles (pictured). Social media is the perfect platform for men who are as enthusiastic about cosmetic and beauty products, and has allowed male makeup artists, beauty bloggers and vloggers to share their skills with the world. Brands are noticing. For instance, Menaji has created men’s makeup and concealers to address the unique needs of male skin, while MMUK Man offers a range of male-centric beauty products, including the Concealer Stick For Men.

50 Cosmetics Global Cosmetic Industry | March 2017

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Cosfibel Premium created the Lancôme Beauty Box for the 2016 holiday season. The fuchsia pink box is made of polyurethane and was designed to be opened down the sides by long pale gold anodized metal tags and a plastic zip coated in the same material. The inside contains a white flocked chock designed to hold more than 10 different products. Cosfibel Premium also designed two matching items to accompany the box: a pouch filled with makeup brushes, as well as a flat makeup bag, both in fuchsia and hot stamped in gold. Cosfibel Premium was fully responsible for this product; packing was undertaken in a Spanish factory that employs handicapped personnel and a Chinese workshop that gives opportunities to vulnerable women.

Moisture Care Liquid Lipcolor EX by DHC ($18) hydrates the lips and provides a long-lasting moisturizer. This lip shine provides a sheer color in five shades: Lotus Pink, Tea Rose, Plum Currant, Soft Citrus and Orange Blossom.

Sheer Wisdom Serum Shadow ($24) by Butter London uses a blend of anti-aging peptides to improve the appearance of the eyelids and provide a smooth, fresh matte look. The palette includes Buttercream, Rose Petal, Sepia Tan, Mauve Mist, Driftwood and Maplewood. The brand’s Sheer Wisdom Lush Lip Oil ($22) firms and restores lips with amino acids and a combination of botanical leaves, and comes in the following shades: Blush, Ballet Blush, Dusty Mauve, Cinnamon Spice, Rich Nutmeg and Royal Blood.

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Morphe’s Liquid Lipsticks ($12.99) feature a long-lasting liquid cream formula in 22 colors that range from shades of nude to plums to reds and blues. The lipstick dries matte with a strong color that doesn’t require touchups.

Benefit Cosmetics, which recently decoded women’s brows, commemorated the launch of its They’re Real! Double Lip, a two-in-one lip liner and lipstick, with the launch of the Real Full Lips video generator. Users can log onto Benefit’s website, select a lipstick shade and create a custom animated video featuring the eight shades of the lipstick/ liner duo. Once the video is finished, users are encouraged to share it on social media with the hashtag #getREALlips.

Dermelect’s ‘ME’ Romantic Renaissance Collection is a six-color set ($14 individual, $39 collection) of long-lasting shades that help to repair and strengthen the overall quality of the nail bed, while also providing UV defense. Colors include Coat D’Amour, Coquette, ManiFesto, Right as Reign, Enlighten ‘ME’ and Faire Maiden.

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BATH/BODY/FRAGRANCE Oil meets scrub in the Exfoliate & Nourish Oil Scrubs ($6.99) by St. Ives, which are available in two variations. The Apricot Oil Scrub contains hydrated silica, walnut shell powder, grapeseed oil and apricot oil, and is targeted to consumers who prefer high exfoliation levels. The Coconut Oil Scrub contains hydrated silica, coconut shell powder, grapeseed oil and coconut oil, and provides a medium strength level of exfoliation.

Rafesa has launched a new collection of wooden caps for perfume packaging. The line is made with ash wood and is available in different color tonalities. The wood source has earned the Program for the Endorsement of Forest Certification (PEFC), which promotes the sustainable management of forests.

Dove Men+Care has launched its Elements range in three variants that highlight natural inspiration. The Elements line is available in Minerals + Sage, Charcoal + Clay and Mineral Powder + Sandalwood, and are “specifically designed for men” to offer cleansing, moisturizing and care. The range comprises Dove Men+Care Elements Body and Face Wash, Dove Men+Care Elements Body and Face Bar, Dove Men+Care Elements Antiperspirant and Dove Men+Care Elements Fortifying Shampoo + Conditioner. “We know that men are looking for a new kind of freshness in their grooming routines,” said Nick Soukas, VP of marketing for Dove at Unilever U.S. “With the Dove Men+Care Elements line, we’ve developed personal care products that are inspired by the power of nature’s elements. They include energizing ingredient combinations that trigger men’s senses and formulations that provide the superior care for their skin and hair consumers expect from Dove Men+Care.”

Hoppin’ Fresh Deodorant by Ursa Major ($24.50) is a natural deodorant that kills and controls bacteria and odor. This product doesn’t block sweat glands with aluminum, but with eucalyptus. The deodorant absorbs excess moisture and soothes sensitive skin for 24-hour protection. Key ingredients: eucalyptus, kaolin clay, ginger, rosemary, grapefruit, chamomile and lemon.

Etheric Inhalation Oils by Farmaesthetics ($27) offers consumers a way to relax without having to leave the comforts of home. The scents include Pick-Me-Up, Warming Oil, Adrenal Support and Dreaming Oil. All of the oils are 100% organic and are dermatologist tested to be hypo-allergenic and nonirritating. www.GCImagazine.com

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The Highgrove Signature Range has a new, refined look. The brand’s products are housed two new off-the-shelf packs from Spectra, which are molded in jade frosted PET (polyethylene terephthalate) and are cast in the Highgrove trademark pale jade. The Highgrove Shower Gel utilizes Spectra’s 300 ml short square, and its 2 in 1 Hair & Body Wash features Spectra’s 200 ml tubular and 24/410 flip-top cap.

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If you’ve ever been frustrated with the waste created by traditional deodorant stick packaging, a new company is attempting to turn the deodorant world on its side. Switch Fresh, an eco-friendly refillable deodorant, features gliders on the side of each bottle, which allow users to move the product and attach and detach the deodorant cartridges. The cartridges come in 2.5-oz and 5-oz sizes. As of press time, Switch Fresh has received 6% of its $40,000 funding goal from the crowdsourcing site Indiegogo. “Switch Fresh is the world’s first replaceable deodorant that reduces plastic waste and inspires individuality with unisex scents and personalized designs,” according to the company’s Indiegogo page. “This patented deodorant bottle utilizes replaceable deodorant cartridges and reduces the amount of disposable waste by 96%, compared to traditional deodorant bottles. Our unique design is an eco-friendly alternative to the 800 deodorant bottles the average person will dispose of in their lifetime.” The deodorant market comprises 4% of the overall U.S. cosmetics market, with an expected compound annual growth rate of 5.6% through 2019, according to a ResearchAndMarkets.com report.

Moisturizing Mineral Salt Soap ($10) by Rebels Refinery comprises minerals to soothe and hydrate the skin, and has a mild and refreshing scent. Key ingredients: magnesium, zinc, calcium, potassium, iodine, coconut oil, canola oil, olive oil.

Fragrance is going through a tough time. According to NPD research (www.npd.com), 10% fewer U.S. women age 18-24 and 5% fewer women age 25-34 reported shopping for fragrance in all of 2016. That’s why it’s notable that Scentbird.com reported on the most searched fragrance terms in 2016 by millennials. The results are based on 2 million fragrance search inquiries. This may give insight into shopping trends of millennials and how they will continue to purchase fragrance through 2017. Top search terms, female: Sexy, floral, fruity Top search terms, male: Fresh, date night, classic Most popular scent types, female: Floral, fruity, clean Most popular scent types, male: Fresh, woody, citrusy 54 Bath/Body/Fragrance Global Cosmetic Industry | March 2017

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PRODUCTS and SERVICES

showcase

CONTRACT MANUFACTURING

PACKAGING

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PRODUCTS and SERVICES

showcase PRIVATE LABEL

To reserve space in this section, contact

Kim Jednachowski

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AD INDEX The Advertiser Index is provided as an additional service for readers to obtain information on companies and their products. The publisher assumes no liability for omissions or errors.

PAGE

ADVERTISER

PHONE

WEB SITE

Anisa International, Inc.

1-404-869-6475

www.anisa.com

Bioscreen Testing Services

1-310-214-0043

www.bioscreen.com

Brownyard Group

1-631-666-5050

www.brownyard.com

Campo Research Pte Ltd.

11-656-383-3203

www.campo-research.com

Centerchem, Inc.

1-203-822-9800

www.centerchem.com

Classic Cosmetics, Inc

1-818-773-9042

www.classiccosmetics.com

Covestro/Bayer Materialscience AG

49-2148-4766-9757

www.baycusan.com

Fusion Packaging

1-214-747-2004

www.fusionpkg.com

Simplex Filler Co., Inc.

1-707-265-6801

www.simplexfiller.com

Spectra Colors Corp.

1-201-997-0606

www.spectracolors.com

Sun Deep Cosmetics, Inc.

1-800-985-2228

www.sundeepinc.com

U.S. Nonwovens Corp.

1-631-952-0100

www.usnonwovens.com

Vantage Specialty Ingredients, Inc.

1-973-345-8600

www.vantagegrp.com

25 Cover 2 43 28–29 Cover 4

Cover 3

5 48

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THE BEST OF

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2/17/17 10:35 AM

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ALPHA-ARBUTIN

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Superior skin brightening enhancer for a perfectly even skin tone DSM Nutritional Products, LLC 45 Waterview Boulevard, Parsippany, NJ 07054 United States of America Phone: +1 800 526 0189 Fax: +1 973 257 8580 Email: info.pc-na@dsm.com www.dsm.com/personal-care

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North American Distributor:

Alpha-Arbutin ensures an even and more radiant skin tone, and helps to minimize the appearance of dark spots.

CENTERCHEM, INC. 20 Glover Avenue, Norwalk, CT 08650 Phone: +1 203 822 9800. Fax: +1 203 822 9820 E-mail: cosmetics@centerchem.com www.centerchem.com

New studies reveal even greater, synergistic brightening. ALPHA-ARBUTIN has now been proven to deliver synergistic skin brightening efficacy when used in combination with niacinamide.

2/17/17 10:33 AM