Global Cosmetic Industry, GCI April by yvesrocherdemx

Contract Manufacturing, Filling & Private Label

FDA, EPA, and USDA Inspected and Registered Experts in Organic, Paraben Free, Spa Care and Cosmeceutical Technology Flexible Manufacturing high volume capabilities with low minimums A Full Service Manufacturer Marketing Concept Research Development Manufacturing Packaging USDA Organic Certified Manufacturing Natural and Organic Formulas Since 1987

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CONTENTS APRIL 2015

n VOLUME 183, NUMBER 3

features 20 Storm Clouds Gather Over Sun Care

The sun care category is locked into a cycle of increasingly aggressive pricing to attract new consumers.

columns 4 Starting Point: Hello...Goodbye BY JEFF FALK

BY ROBERT WALKER, EUROMONITOR INTERNATIONAL

22 The Feel of It: Packaging With Sensory Clues

Designing a sensory experience into packaging and providing sensory cues about the product within are powerful ways to connect with the consumer at shelf. BY SARA MASON

26 Millennials and Brands

Brands that can generate affinity and trust for millennials and whose brand can transcend a specific product category on the basis of their core values are sitting on a gold mine. BY JERI SMITH

30 Whatâ&#x20AC;&#x2122;s the StoryScore?

Quantitative measure of storytelling give brands a more meaningful understanding of how well their social content is performing. BY MARTYN TIPPING

34 Itâ&#x20AC;&#x2122;s All About Moisturization: Consumer Insights Through Social Media

The social media space is a vibrant source of current, candid and unprompted consumer insight. For face care, online conversations reveal that moisturization is the ultimate need of every consumer and there is an overwhelming lack of consumer emotion for products in the category. BY SOURABH SHARMA

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departments 6 Go: Innovations, ideas and insights 12 Street Level: New products, promotions and events 14 Fragrance Focus: News about the fragrance industry 16 Added Value: Ideas through people, places and things 40 Wrap Up: The latest in packaging innovation 42 Main Ingredients: Ingredients now on the market 45 Events Calendar

resources 45 Products & Services Showcase 48 Advertiser Index

Contents

EDITORIAL Director Editor in Chief Editor Associate Editor

Jo-El M. Grossman Jeff Falk 1-630-344-6071/jfalk@allured.com Rachel L. Grabenhofer 1-630-344-6072/rgrabenhofer@allured.com Katie Anderson 1-630-344-6077/kanderson@allured.com

ADVERTISING SALES Vice President Business Development Manager U.S. (NJ & PA), Canada, Central & South America Business Development Manager All U.S. states except NJ & PA Business Development Manager Europe & Asia Business Development Manager Fragrance Marketing Specialist Coordinator

Brian Oâ&#x20AC;&#x2122;Rourke 1-630-344-6030/borourke@allured.com Tom Harris 1-201-445-4702/tharris@allured.com Kim Jednachowski 1-630-344-6054/kjednachowski@allured.com Jane Evison 44(0)-1430-441685/jane-evison@btconnect.com Paige Crist 1-630-344-6060/pcrist@allured.com Brittany Best 1-630-344-6076/bbest@allured.com Kasia Smialkowski 1-630-344-6025/ksmialkowski@allured.com

AUDIENCE DEVELOPMENT Director Customer Service

Linda Schmitt Jamie Schmidt 1-888-399-0899/customerservice@gcimagazine.com

DESIGN Manager Senior Graphic Designer Production Manager

Andy Frederick Hon Bannapradist Bryan Crowe

CORPORATE President Controller Group Show Director Digital Products Director Executive Assistant

Allured Business Media 1-630-653-2155 â&#x20AC;˘ fax 1-630-653-2192 336 Gundersen Drive, Suite A Carol Stream, IL 60188-2403 USA www.Allured.com European Office: Jane Evison, East Yorkshire, England

Janet Ludwig Linda Getner Sandy Chapin Rose Southard Maria Romero

OTHER ALLURED PRODUCTS Alluredbooks Cosmetics & Toiletries Bench Reference Cosmetics & Toiletries magazine Cosmetics & Toiletries magazine: Portuguese edition Cosmetics & Toiletries Summit Face & Body Spa Conference and Expo Flavorcon Perfumer & Flavorist magazine Skin Inc. magazine World Perfumery Congress

Global Cosmetic Industry (ISSN 1523-9470) is published ten 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 2014. 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: $10; 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, 336 Gundersen Drive, Suite A, Carol Stream, IL 60188-2403 USA. 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. 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

Contents

GCI April 2015

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Starting

n by JEFF FALK

Point

Hello...Goodbye

I JEFF FALK

Editor in Chief

GCI 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, phD

A. Rich Development

t’s been nearly 10 years since I began my career at GCI as an associate editor, and the pace started as a sprint. A month in, I was in New York for HBA—definitely the biggest trade show for our industry at that time. I didn’t own a suit—in fact, I didn’t even own a jacket— and I knew effectively nothing about the industry. A couple weeks after that, due to personnel changes and travel schedules, I was a lone editor producing an issue of GCI. It was somewhat nerve-racking, but the rest of the team was soon back in place, and I started on a real journey of learning. In March 2009, I officially took over the helm of GCI; though I may have steered the ship, I was navigated by you. Your feedback, your concerns, your needs and your goals guided what I and the team you’ve seen in the masthead all these years did with all things GCI. I realized in that process, the magazine is not mine—it’s yours. And now it’s time to let someone else take the helm and navigate the course of the industry and your information needs. I’ve learned a lot from the wonderful, talented and brilliant people I’ve met and worked with in my roles with GCI, but it’s time to take on a new role as the events marketing director for GCI’s parent company, Allured Business Media—and in that capacity, I’m glad to say, I will remain in the beauty industry and in contact with you. I’m pleased to say that GCI will immediately be in good hands, as Jeb Gleason-Allured (+1-630-344-6069; jallured@allured.com) takes over the helm as editor in chief. Jeb has been the editor in chief of GCI sister publication Perfumer & Flavorist and the program director of the World Perfumery Congress and Flavorcon. He also represents the fourth generation of the Allured family to serve the industry. You can call or email him any time or find him on LinkedIn. n GCI

Rick Ruffolo

R4 Innovations

Cristina Samuels

Mode Cosmetics

Laura Setzfand Epiphany

4 Starting Point GCI April 2015

Trend for Contouring is Making Waves in Color Cosmetics Market Charlotte Libby, senior beauty analyst for Mintel, reported in a Mintel blog that contouring became a beauty buzzword in 2014, with many online tutorials appearing that demonstrate how to use base makeup to enhance their bone structure and facial features. Libby further highlights some of the brand response to this trend, noting that Rodial announced the launch of what is claimed as the world’s first contouring makeup range in November 2014, supported by the concurrent launch of the Contouring Bar at Harvey Nichols. Tom Ford Beauty’s Autumn 2014 collection similarly included a Contouring Cheek Colour Duo, combining a lighter, pearlescent shade to highlight and a deeper, matte shade to contour and add definition and structure to cheekbones, reported Libby. In December 2014, black’Up Dual Ended Contouring Stick (described as a revolutionizing and easy-to-use product to highlight, contour and create a professional play of light and shadow) launched, and Smashbox launched a Step-by-Step Contour Stick Trio, with universal shades to match every skin tone, in January 2015.

Impact on the Market This new focus on sculpting is expected to inspire women to make additional purchases in the color cosmetics market, focusing on blending different shades of base products and investing more time on the application of foundation. This increased investment in the category can provide a surge in retail value sales, similar to that seen after the BB boom in 2012 and the fashion for artistic nails in 2014. Mintel’s data shows that consumers who buy products that cover the skin for the majority of the day are most likely to buy luxury brands, with 42% of primer users and 32% of foundation users opting for luxury brands. The importance of color matching in base cosmetics also inspires women to spend in this area. In addition to color cosmetics benefiting, the trend for facial contouring can benefit subsidiary areas, such as blending brushes, sponges and mirror lights to help make facial contouring easy to achieve at home. The contouring trend focuses on enhancing the natural shape and features of the face. This could develop further into other areas of makeup, for example eye and lip products that enhance natural shapes rather than create a transformative look. Similarly to the way the BB claim became popular in other beauty markets beside skin care, the contouring claim is beginning to expand beyond color cosmetics. In January 2015, the hair contouring service was launched in Charles Worthington London salons. The technique involves a face shape analysis and the hair is then colored with lighter and deeper tones to flatter face shape. Although currently only available in-salon, there is the future possibility of brands offering similar wash-out hair contouring kits for use at home. Finally, there is further potential here for digital guides to aid women in remembering and perfecting the contouring technique, once they have had a personal demonstration in-store. YSL, for example, launched a Google Glass makeup tutorial, which allows participants to take home a digital copy of their make-over to replicate.

GO!

GCI April 2015

Personalization Gets Personal DNA-based customization as the next step for beauty innovation, offers Datamonitor Consumer. What is it? • Individually customized, made-to-measure beauty solutions. • Innovation with individually customized beauty products, specifically formulated to respond to consumers’ DNA profiles. • This could allow brands to tailor the formula to particular factors such as predisposition to aging, collagen breakdown and skin unevenness, as well as conditions such as hair loss, eczema and rosacea. Why? • Consumers want more efficient and tailored solutions. • Consumers are seeking products that are specifically tailored to their personal needs and concerns, and such products are, therefore, perceived as being the “best” and most effective personal care systems. • DNA customized solutions are also perceived favorably by consumers, providing a positive innovation environment while allowing this approach to be positioned at a premium. So What? • A new approach to customization offers opportunities for brand owners. • By using DNA technology, consumers will be able to obtain a product that caters to the day-to-day maintenance of their appearance and damage caused by environmental factors while also undertaking preventative measures for genetically predisposed conditions. • This is likely to grow in popularity due to the perceived efficacy of such individual specific solutions and the novelty of such concepts.

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GO! 7

strong link Between Packaging satisfaction, Consumer Purchasing Behavior MeadWestvaco Corporation (MWV), a provider of packaging and packaging solutions, launched its third annual Packaging Matters, the company’s study of the impact of packaging on product satisfaction and consumer purchasing behavior. The current Packaging Matters examined the attitudes of consumers in five markets (Brazil, China, Germany, France and the U.S., with 5,075 consumers participating in the study) across 11 FMCG product categories (food, beverage, personal care, etc.), offering brand managers key insights on how to increase the impact of packaging for their business. Packaging Matters data shows packaging continues to hold significant importance for global consumer satisfaction, with a strong link to purchase intent and brand loyalty. While a majority say new packaging is headed in the right direction, there are significant current gaps between the importance of product packaging and how brands are meeting consumer needs. Consumers are clear on how to close this gap: targeted innovations related to functionality and safety. “This year’s study continued to emphasize the strong link between packaging satisfaction and consumer purchasing behavior,” said Pete Durette, senior vice president, MWV. “Packaging plays a key role in brand perception, product trial and repeat purchase. Consumers in this year’s study indicated that brands are moving in the right direction in terms of how packaging is evolving. That being said, consumers continue to want more from packaging, especially when it comes to function and safety. Brands, and their packaging partners, have a critical opportunity to build on this positive momentum with continued innovations that will make a real impact on satisfaction and behavior.”

the numbers Packaging Matters data show a strong correlation between packaging satisfaction and the consumer behaviors that brands want. Consumers who are completely satisfied with packaging engage in sought-after purchase behaviors more often. These consumers are more likely than their less satisfied peers to purchase and use products frequently (57% vs. 47%), shop frequently both in-store and online (24% vs. 17%) and try something new because of packaging (44% vs. 36%). Similar to the previous study, Packaging Matters data show 31% of global consumers consider packaging very or extremely important to their overall satisfaction with consumer products. Who: Packaging is most important to key targets of major brands: frequent shoppers, urban shoppers with high spending power and brand loyal shoppers. Thirty-seven percent of consumers have tried a product because packaging caught their eye or purchased a product again because of packaging functionality. Researchers found a significant increase in importance in the U.S. (18% up to 24%) and a slight rise in China (38% up to 39%). Where: In geographic distribution, packaging is most important to consumers in developing markets (China and Brazil), where trust in the supply chain is not as strong as in developed markets (France, Germany and the U.S.). In what product categories: Across the 11 categories surveyed, packaging has the greatest impact on purchase decision for refrigerated/frozen food, beauty/personal care/fragrance and take-out food/beverage. More than 1 in 3 consumers say packaging is very or extremely impactful to their purchase intent in these categories. Online vs. in-store shopping: When it comes to retail channels, packaging is considered more important to in-store purchases (57%) than online purchases (43%), but that gap is closer than some might think. China was the only country in which a majority of consumers (65%) say packaging is more important for online purchases. Those who say packaging is very or extremely important to their satisfaction are also more likely to increase the frequency they shop online in the future.

Consumers optimistic about new Packaging innovations Packaging Matters data shows 83% of global consumers are at least moderately satisfied with packaging, but just over 1 in 10 is completely satisfied, leaving an opportunity for brands. Compared to previous studies, satisfaction increased 3% in the U.S. and dipped 2% in China, where safety has been a major concern. When it comes to their future outlook for packaging, consumers are optimistic. More than 77% believe brands are headed in the right direction when it comes to new trends in packaging. “Packaging is one of the many tools available to a brand manager. Our data confirms that it is also one of the most effective,” said Durette. “Consumers who are completely satisfied with packaging are more likely to buy consumer products more often and have a favorable view of the brand. To stay ahead of the curve in this rapidly evolving and competitive global FMCG marketplace, brands have a real opportunity to differentiate their products and impact purchase behavior by increasing consumer satisfaction with packaging.”

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GCI April 2015

How Natural Looks Can Invigorate the Beauty Industry The natural look trend, according to Datamonitor Consumer, is here to stay, and that means the beauty industry needs to figure out how to enhance the “imperfect” beauty of every person rather than unify everyone under the same standard. Examples of the high influence of natural looks can be found in the recent campaign from the fashion brand Desigual starring a model with vitiligo, or in the release of Cindy Crawford’s unretouched photos for Marie Claire magazine that showed her body’s “flaws.” This went viral, sparking thousands of positive comments for once showing a model without Photoshopping. Reacting to the disproportionate presence of “artificial looks” with hair extensions, false eyelashes and extreme anti-aging treatments, consumers now want to be proud of their imperfections. Datamonitor Consumer has shown that 45% of consumers want their looks to reflect their age, and 55% believe that images of beauty showed on advertising are unrealistic. Consumers are tired of unachievable beauty models that are so ideal they are impossible to reach by regular consumers. Because shoppers feel they are not represented by the current standards of beauty, the logical step is toward something real. The concept of “real beauty,” identified as looks without makeup or showing natural imperfections, is likely motivated by a feeling of nostalgia where consumers perceive values from the past—when their grandmothers were not afraid of showing their wrinkles—as the right thing, far from over-Photoshopped and unrealistic models. To this, it must be noted consumers’ lack of time for time-consuming beauty treatments and the idea of being different from the crowd as a representation of a strong personality play a role in the trend. Beauty companies can capitalize on this idea. Dove was one of the first brands that capitalized on the value of “real beauty” by showing normal bodies in its advertisements. Now it is strengthening its positioning with a new campaign, where the company advocates for the beauty of natural curly hair, designed in relation to the launch of its new Advanced Hair Series Quench Absolute line of products. Hair care, in fact, is one of the segments that can benefit from this natural approach; in regions like Europe the expected overall growth for the hair care market is only 9% 2014–18, much less than the 14% expected for the skin care market for the same time period. This “natural looks” approach can encourage companies to energize their offer and thus, invigorate the market. What can we expect in the future? Surely, writes Datamonitor Consumer, we will see more derivations from this idea from consumers proud of frizzy hair styles to “no nail polish” looks. Natural looks can even involve the male audience in the cosmetics market in a way that they can feel comfortable even with makeup.

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GO! 9

US Prestige Beauty Grows, Consumers Look for Experience The NPD Group presented the beauty industry’s first look at 2014 global year-end results for makeup, fragrance, and skin care at their 18th annual “Hot Off The Press” event at the Union League Club in New York on January 29, 2015. CEW partnered to host the event for the third consecutive year. At the event, NPD shared that the U.S. prestige beauty* industry reached $11.2 billion and grew 3% in dollar sales in 2014, compared to 2013. Makeup experienced the healthiest gain, 6%, while fragrance dollars grew 2% and skin care increased by 1%. “The beauty industry had a solid annual performance in a somewhat difficult retail environment, but there’s still plenty of room for improvement and development,” said Karen Grant, global beauty industry analyst, The NPD Group. “We saw that fewer consumers, especially beauty shoppers, cut spending in 2014. “At the same time, 2014 reported the fewest number shopping for beauty in six years. This tells me that beauty shoppers are happy, but some may be seeking happiness elsewhere. This ‘elsewhere’ is in other products and services, as well as experiences; consumers today are not just pursuing ‘products for me,’ so much as they are seeking ‘experiences for us.’ The challenge for the beauty industry, therefore, doesn’t lie solely in the products, but in fulfilling this sense of experience, and having both play together in harmony.” The prestige market outpaced the U.S. mass** channel, where sales remained flat for total beauty in 2014, versus 2013, as per Nielsen. The skin care category, with 2% growth, buoyed the overall market, while fragrance and makeup experienced dollar declines, by 4% and 1%, respectively. “Beauty today is all about the base,” said Grant. “Understanding how the consumer base has changed in population and lifestyle. Each category reflects this dynamic. Before consumers apply their makeup, they want a soft, unblemished, anti-aging face. They want to feel confident about their ‘I woke up like this’ look, and are being proactive rather than reactive about their beauty choices. There continues to be growing popularity in products that are more organic and offer advanced benefits, from natural, clinical and alternative brands to artisanal scents. While consumers look at craftsmanship and point of difference, they continue to seek instant gratification, from facial masks and bronzers that offer radiance, to bold lips and a mood-boosting scent.” Prestige makeup, skin care, and fragrance in the U.S. all experienced 2 to 4% growth in average price. The lip segment was key to makeup’s growth, driven by lip color. Of the top 100 new shades on counter in 2014, pink surpassed red as the leading color, bringing in 23% more dollars. Sets and kits drove the growth for skin care, with anti-aging sets serving as the catalyst. Fine fragrance experienced the largest increase for women’s fragrance, while it was fragrance gift sets posting the largest growth for men. “Beauty is an industry where consumers are willing to spend, and where the majority of them—more than 80% of U.S. women alone—invest,” added Grant. “While there is brand loyalty, consumers at the same time are always on the hunt for products that will perform better, and are willing to add to their routine if a product proves worthwhile. The industry is at an advantage in the U.S.—at a crossroads, where world beauty comes together in one place, and the innovation and types of products that connect with consumers and satisfy their needs and desires show themselves in a natural light.” Source: The NPD Group, Inc./BeautyTrends report *Prestige Beauty: Products sold mainly in U.S. Department Stores **Source: Nielsen, Food/Drug/Mass (516) 625 2203

10 GO! GCI April 2015

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new products, promotions and events

BRAND NEWS

Valeant Pharmaceuticals North America’s brand for women of color AMBI, has entered the color market with a multifunctional product that provides sun protection, anti-aging benefits and a light tint. AMBI Even & Clear CC+ Cream Even Tone Environmental Shield contains argan oil, shea butter and antioxidants to moisturize the skin. It also provides broad-spectrum SPF 30 sunscreen protection from UV sun rays that can accelerate the formation of fine lines and wrinkles. Available in light/medium and medium/dark, the CC cream is designed to even skin tone instantly with soft focus technology, while shielding skin from environmental elements that may cause uneven skin tone, dry out the skin and accelerate fine lines and wrinkles. Available at national mass, drug, and beauty supply retail stores. www.shopambi.com

Valeant Pharmaceuticals North America

CC for Skin of Color

Unilever signed an agreement to acquire REN Skincare, a British skin care brand created in 2000. IBM collaborated with Shiseido to empower its nearly 10,000 beauty consultants in Japan with mobile apps designed to provide new customer services, customer-centric product improvements and social innovations. Mixed Chick’s Morning After Redefining Foam was chosen by NaturallyCurly as a 2015 Editor’s Choice award winner for best refresher for type 3 curls. Whish Beauty announced ts expansion to all 765 U.S. ULTA Beauty doors by March 15th, 2015. Beauty-discovery subscription platform Glossybox ended 2014 profitably, posting seven-digit sales. The Hain Celestial Group, Inc. announced the acquisition of Belvedere International, Inc., which owns the Live Clean brand as well as several mass market brands sold primarily in Canada and manufactured in a company facility in Ontario, Canada. In the next step of separating household products and personal care businesses, Energizer Holdings, Inc. announced the names of each of the two new companies upon separation, which is targeted for completion by July 1, 2015. The personal care division will be named Edgewell Personal Care upon its separation to become an independent company. The household product division will retain the Energizer Holdings, Inc. name and logo.

Correcting Treatment

Murad uses mushroom peptides to diminish the look of fine lines and wrinkles by aiding regulation of collagen and elastin in its latest multifunctional product. Invisiblur Perfecting Shield Broad Spectrum acts as an anti-aging/corrective treatment, a primer and an SPF moisturizer to smooth skin and improve visible signs of aging. A soft-focus complex is incorporated to smooth and blur imperfections for improved tone and texture. In addition to broadspectrum UV filters, the product also contains the company’s Murasol technology, a proprietary blend of antioxidants to defend against UV damage by penetrating skin’s top layers and creating a protective barrier of encapsulated free radical neutralizers. Barley, sunflower, and cucumber extracts are incorporated to enhance skin’s ability to retain moisture. www.murad.com

NuFACE announced it won the “Most Innovative” award as part of QVC’s QStar Awards.

MURAD

PEOPLE The Personal Care Products Council announced the election of its new board officers, including its new chair, Thia Breen, group president of North America for The Estée Lauder Companies. Joy Chen, to president and CEO of H2O+, a Pola Orbis Holdings brand. Benjamin Karsch, to executive vice president and chief marketing officer for Revlon Consumer. He will lead the Revlon Consumer division’s global brand marketing, product development, consumer engagement and public relations.

Mineral Sunscreen

NeoStrata Company Inc.

NeoStrata Company Inc. introduced a mineralbased, broad-spectrum UVA/UVB sunscreen with a high level of SPF in a sheer formula. Exuviance Sheer Daily Protector SPF 50 is transparent, blends easily and has an invisible, universal tint that enhances and evens skin tone after application. Sun protection is provided by titanium dioxide and zinc oxide, and it has a rating of PA++++. Gluconolactone and lactobionic acid are incorporated to preserve the skin matrix and provide anti-aging and skin smoothing benefits. Meanwhile, EGCG green tea extract and vitamin E both serve antioxidant roles. Therefore, the product is said to protect against both sun and environmental damage. Available in at Exuviance.com, ULTA and select prestige beauty retailers nationwide. www.neostrata.com

Fighting Deep Wrinkles

Derma e fights deep wrinkles while protecting skin from the sun in its Deep Wrinkle Peptide Moisturizer SPF 30. The formulation includes Lipotec’s Argireline peptide to help relax facial muscles, smooth wrinkles and discourage the formation of new lines. Meanwhile, Sederma’s Matrixyl synthe’6 peptide triggers skin to synthesize new key components such as collagen and to restructure itself. Together, these peptides soften and smooth the look of the deepest wrinkles, and prevent new ones from forming. Zinc oxide provides a broad-spectrum UVA/UVB protection. Pine bark extractand green tea serve antioxidant roles while aloe and chamomile replenish skin. dermae.com Derma E

street level

12 Street Level GCI April 2015

Skinceuticals unveiled a product that corrects the early signs of photoaging. Metacell Renewal B3 uses a patentpending inverse aqueous emulsion to deliver a high concentration of 5% niacinamide (vitamin B3) to reduce discoloration, increase cell turnover and strengthen the skin’s moisture barrier. Also included is a tightening tripeptide concentrate at 2.5% to support natural hyaluronic acid levels while enhancing skin’s firmness and reducing fine lines. Finally, 15% pure glycerin delivers intense hydration without a tacky feel. www.skinceuticals.com

Skinceuticals

Vitamin B3 for Photoaging

Polish Remover

Cutex Brands

Cutex Brands allows consumers to remove stubborn nail polish formulas without a mess with its Cutex Twister with SPA Formula. This product features a specially engineered sponge and bristle brush for extra stubborn polish. The sponge is saturated with the company’s SPA Formula Nail Polish Remover, a combination of 100% acetone, to remove stubborn polish such as gel and shellac, with strengthening and nourishing botanical oils such as apricot seed, flax seed and perilla oils, to leave nails healthy and strong. Available throughout the United States at major chain stores, drug stores and regional grocers. www.cutex.com

Contract Manufacturing News Aware Products reorganized its Personalized Branding division, with a focus on innovation, education and support for its spa and salon partners. They have defined their new focus with the tagline “The Brand Behind Your Brand.” Judy Arbour-Fall joined the company as division director, and Toi Holmes was promoted to the role of divisional sales manager. Emilia Personal Care was chosen to present at the recent Chain Drug Marketing Association (CDMA) Show in Tampa, Florida as part of the Private Label Enrichment Program and Store Brand Forum. Members of CDMA handpicked the key players supporting CDMA’s focus on their latest brand launch, Awaken by Quality Choice. Renee Barch-Niles, president of Emilia Personal Care, was invited to contribute to the discussion surrounding the growth and strength of CDMA’s private-label program. Christina Zech, PhD, was appointed as managing director at A.W. Faber-Castell Cosmetics GmbH. Together with Countess Mary von Faber-Castell, she leads the company.

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Street Level 13

FRAGRANCE FOCUS NEWS Eurofragance 2014 sales grew by 14.5%, totaling €53.7 million Results were driven by Asian and American expansion. The company also increased its staff from 180 to 202, and will open a new creative center in Dubai in July 2015. An investment of more than €2 million went into the new center, which is aimed at boosting business in the Gulf area. As part of its sustainability program, Symrise has opted to support the French Research Institute CRIEPPAM (Centre Régionalisé Interprofessionel d’Expérimentation en Plantes à Parfum Aromatiques et Médicinales) in its environmental efforts to improve energy efficiency of lavender sourcing. To help the organization achieve these goals, Symrise will provide financial support in order to continue the research activities aimed at improving the energy consumption of the “Espieur” harvesting system and the downstream distillation process. Coty signed an agreement with actor Scott Eastwood to be the new face of the Davidoff Cool Water fragrance advertising campaign, which launches worldwide in summer 2015.

PEOPLE Danielle Bibas to global vice president, Avon Masterbrand, Avon Cosmetics (São Paulo). Boet Brinkgreve to president, Firmenich China. Thomas Cornelson to vice president, flavor and fragrance supply chain, Robertet U.S.

SensaPeel Limited’s SensaPeel samplers were created for fragrance brands and retailers, and can be applied to any printable surface. Genuinely interactive, this physical marketing device, according to the company, allows consumers to experience a faithful fragrance sample at a fraction of the cost of a vial or bottled sample, making sampling convenient and cost effective. Further, the samplers were designed so that they can be published and mailed using a wide range of media. Launched at the 2014 World Perfumery Congress, SensaPeel samplers can also be utilized by producers of essential oils, aromatic chemicals and fragrance materials for perfumes and fragrant products. www.sensapeel.com

Angel in a new star

Thierry Mugler Parfums announced Angel “The New Star,” a 75 mL refillable eau de parfum ($150) that launched at Saks Fifth Avenue in February 2015. The new three-dimensional star bottle captures light with its facets, creating surprise effects. Designed to tell a story, the technical issues challenged glassmaking technologies, and was taken on by the Brosse master glassmakers of Normandy, France. And now, instead of discarding used fragrance bottles, consumers can refill their Angel bottles. www.mugler.com

Fresh Take on Park Ave South

Bond No. 9, as part of its ongoing creation of fragrances to evoke NYC locales, announced the launch of Park Avenue South—designed to capture the neighborhood’s “fresh, flirtatious, assured, insouciant spirit.” The contemporary floral starts with crisp green apple that segues into a floral heart of jasmine spiked with peach. It’s followed by musk and dry-warm-earthy amber, the reliable base notes that ground the scent with a lingering depth. The white bottle displays the highenergy diffusion with contemporary oversized random polka dots. The 100 mL bottle retails for $295; the 50 mL for $200. Both are sold at Bond No. 9 New York Boutiques, Saks Fifth Avenue across the U.S., select Nordstrom stores, Harrods UK and www.bondno9.com. 14 Fragrance Focus GCI April 2015

SensaPeel

Publishing Your Fragrance Samples

ADDED

VALUE

event recap

CEW, NPD Forecast and Assess Marshall Cohen, chief industry analyst, The NPD Group, kicked off the 2014 Beauty Industry Review and 2015 Forecast presentation with a look at how lifestyle trends are changing the consumer landscape. “Casual activity and a healthy lifestyle are hallmarks of the environment today. We are now a generation and a country that is looking a lot more healthy and active,” said Cohen. He noted that while the Smartwatch still has a relatively low penetration in the market, at 2%, he observed that one in 10 adults in the U.S. has a fitness trainer, athletic wear is on the rise and the “no makeup makeup look” has been in growth mode. Cohen referred to the environment as “the era of more,” where we are all dealing with more distractions than ever. “Now it’s about more connectivity and more discretionary income,” he said. “Economic confidence is higher than it has been in 10 years,” Cohen said. “But if you have higher economic confidence, you have to recognize the implications and the consequences,” citing lower gas prices as an example, which he noted might spur an ultimate rise in taxes. In addition, Cohen noted the growth potential of the boomer market. “The millennial consumer won’t always be the growth market. Trends are accelerating and will be moving toward the boomers. We have a lot of years to go with peak spending power anticipated to be at year 2026, so don’t write [boomers] off yet,” said Cohen. He noted that the retail calendar doesn’t always follow the weather calendar, advising retailers to take advantage of the post-holiday period and advising on the importance of keeping key items available for a longer selling period. “This is a huge opportunity that needs to be embraced. It used to be, ‘I need this now;’ then it was, ‘I want this now,’ and then it became, ‘when will I use this product?’” said Cohen. “Timing matters. Time your products better, time your messages better, time your promotions better, time your launches better and time your educational information better.” Not only do consumers want to buy when they need something, but they also need to be understood. “Being ready is key to your understanding of consumers. Diversify your message, diversify your products and learn to recognize lifestyle as an opportunity,” Cohen said.

Nielsen Speaks “With over $33 billion in sales and 94% of households buying beauty products, we are dealing with a mega category,” said James Russo, senior vice president, global consumer insights at Nielsen. The key, he advised, is to learn how to stand out in a sea of sameness. He discussed the importance of learning how to “shine on shelf ” and how to connect to larger consumer trends. “Health and wellness is bigger than beauty, and there are so many factors driving this category,” he said.

Left to right, James Russo, senior VP, global insights, Nielsen; Karen Grant, global beauty industry analyst, The NPD Group; and Marshall Cohen, chief industry analyst, The NPD Group.

While Russo noted that there is 24% growth in the natural and organics category, the potential of spending in the multicultural arena has yet to be fully leveraged. In addition, men’s spending in beauty (that is skin care, hair care and shaving) also portends growth in the overall beauty landscape. Advertising effectiveness for both multicultural and men’s categories is still a developing story, while the millennial groups need to be approached as distinct entities. Russo explained that younger millennials (1825), for example, are responding to advertising that tells a story while older millennials (26-34) respond to mixed story lines. Brick and mortar retail remains important, “But, consumers increasingly prefer to shop online,” said Russo. He did acknowledge, however, that consumers went back into brick and mortar over the holidays. Zeroing in on a case study of beauty breakthroughs on shelf, he said, “Natural is important, but not at the expense of innovation and packaging. Also, choose words wisely, particularly in making claims. Focus on benefits; be very result-specific.”

The Beauty State of Mind Karen Grant, global beauty industry analyst, The NPD Group, took a look at the state of mind of the industry today. She noted that the four points of marketing (products, price, place and promotion) had been supplanted by four new points: priorities, people, products and pace. “Consumers haven’t cut spending on things they can use or wear, for example, beauty treatments, beauty products, apparel, footwear, accessories...” she said. “There are elements that we spend on for ourselves and our loved ones, including dining out, microwave ovens, cordless vacuums and technology.” She posed the question, “Are beauty shoppers seeking happiness elsewhere?” While she noted a 4% drop in beauty spending, she also noted that wearable tech was +92%, stick vacuums, +38% and

16 Added Value GCI April 2015

event recap stereo headphones +14%. To put the 4% drop in beauty spending in perspective, Grant provided some relative numbers to assign value to the percentages, i.e., if 1% is equal to 1.5 million consumers, then 4% is equal to 6 million consumers.

Prestige and Mass Prestige beauty is still outperforming the mass channel, with sales of $11.2 billion in sales in the U.S. market, a growth percentage of +3%. While the mass channel saw sales of $22.1 in the U.S. market, growth was flat, noted Grant. Makeup and fragrance also grew in prestige, with makeup growing +6% and fragrance growing +2%. In discussing the key to driving growth, Grant said that every transaction matters, whether it is in brick and mortar, online or via mobile technology. Grant added how important it is to reach and engage the customer. She emphasized that the consumer mindset needs to be understood, and behaviors (for example, the window of time that it takes a woman to decide to make a purchase) are also key. “Product reviews and testimonials are coming up higher than product ads in driving business,” she said. She cited sales over the holiday period at a number of stores in NPD’s study, which included Bath & Body, Nordstom, Sephora, Macy’s, Neiman Marcus and Saks. “One of the levers that is being pushed a lot is the loyalty of the beauty shopper. This shopper being incentivized will likely drive her to spend 30% more. So, being happy is a quality of life choice, via ‘me and we’ spending from both the customer’s heart and wallet.” Engaging the beauty consumer must take into account the diverse face of consumers today, whether they are students, retired or homemakers. This group, according to NPD, is 28% more likely to take more than a week to decide on a beauty purchase. If they are on You Tube daily, this group is 56% more likely to take more than a week to make a beauty purchase, and if they are addicted to their digital devices, this group was found to be 49% more likely to take more than a week to make a beauty purchase. The large majority, 71% of U.S. women, however, took less than one week to decide to make a beauty purchase. In addition, Grant cited some of the influences that impact purchase. According to NPD, 80% of shoppers were influenced by product reviews and testimonials, and 54% responded to Best of Awards when deciding which beauty products to purchase. In terms of skin care, Grant said that drivers are anti-aging sets (+8%) and hair care (+ 6%), particularly shampoos, conditioners and hair sprays. In the face category, growth was in devices, including cleansing and laser, where growth was +39%. By segment, makeup for the face was +6%; eye +7%; lip +9%; gift sets + 1%; other color makeup +8%; and nail -6%. Radiant foundation grew by +10% and bronzers by +45%. While fragrance sales broke $3 billion, Grant said that unit sales fell. In addition, Grant noted the influence of world beauty elements in the fragrance category, including positive growth in women’s and men’s fragrances, as well as home ancillaries, and candles, both strong, at +46% and +34%, respectively. Key, however, said Grant, was how to message consumers. She cited five leaders in the beauty and skin care category: Clinique, Lauder, Lancôme, La Mer and Clarisonic. And she noted the growth of natural and clinical brands, which have doubled in dollar volume since 2010, as well as artisanal brands, which she said have tripled since 2010. The behaviors, attitudes, lifestyle, entertainment and media habits as well as technology usage of today’s consumer are integral to purchase decisions. Grant advised, in conclusion, “Watch the human interaction, that’s where the changes will occur.” —Contributed by Nancy Jeffries

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ADDED

VALUE

event recap

Fragrance Foundation Looks Back to Look Forward In late 2014, the Fragrance Foundation hosted the “The Fall and the Rise of the Fragrance Industry” executive roundtable discussion, discussing topics such as prestige vs. mass fragrance, the fragrance industry’s past successes and the challenge of compelling consumers to buy a fragrance a second time. Fragrance Foundation president Elizabeth Musmanno moderated the panel, which included Robin Burns-McNeill, chairman and cofounder of Batallure Beauty; Michael Gould, former chairman and CEO of Bloomingdale’s; and Frederic Jacques, vice president, fine fragrance, Takasago. In regards to prestige vs. mass fragrance, Jacques said the stretch between the selling price and the cost to produce the fragrance has gone too far. “There’s a huge confusion between mass and prestige and everything in the middle because there’s everything and anything at any price,” he said. Burns-McNeill said there’s a lot of sameness in the fragrance category and a lack of a burning “I’ve gotta have it” demand. “We tend to stay at one place for pricing, packaging... and there are hundreds and hundreds of fragrances,” she added. And Gould noted that the space for fragrance on the department store floor has been dramatically reduced over the past decade. “Just take a look at what fragrance is today, it’s not on the prime side of the floor, it moved to the other side of the floor and has dramatically less space,” he added. “I think that one of the great problems is that fragrance is being looked as an item and a commodity and not as a brand.” Gould said the heyday of Giorgio Beverly Hills and Calvin Klein effectively capitalized on fragrance as a brand. “Like them or don’t like them, they were both brands—they had the DNA, they had enormous animation,” adding that the Giorgio Beverly Hills built especially strong demand with unsealed scent strips in magazine. “It was about getting scent out—it was Instagram before people knew about Instagram.”

The Decline of Department Store Sales “If department stores aren’t healthy, can you have a successful launch in a department store today?” Musmanno asked. Gould responded: “There is a disconnect. If the department store is down, that’s a broad statement. [Accounting for both online and offline sales], if I look at Estée Lauder’s quarterly report, they were up; Chanel’s business is flying.” The challenge is not the fragrance launch, he said, it is whether or not the consumer is going to come back and buy the fragrance a second time. Gould noted that at a department store today, the conversion rate on a non-sale day is 30%—and that’s on a good day. “It’s not about getting the first bottle out, that’s the easy part,” he said. “The issue isn’t the launch. [It is] what are we doing afterwards? “There is not a lack of traffic in the stores, there’s

not a lack of traffic in malls, there’s a lack of what I would call conversion and a lack of follow up.” According to Jacques, the industry isn’t focusing enough on giving the consumer a reason to buy a fragrance a second time. “We’re very obsessed with making sure that we succeed with that first sale, [but] I don’t know if we put in equal effort in giving [consumers] true reasons to come back,” he said. “The first thing that we need to do to collectively to come up with a solution is to acknowledge that we have a problem, and I feel sometimes that we are collectively in a stage of wishful thinking. I think it’s time to not protect ourselves behind the economy [excuse].” Burns-McNeill said successful brands have built momentum through traditional scent strips, sampling via gift with purchase and consistency. There’s a lack of pent-up demand today for fragrance as compared to when Opium first launched, she said, noting “We had to lock testers in drawers because shipments were being stolen.” “The [brands] that were successful were the ones that had an amazing product, name and aspiration,” she added. “Hundreds of fragrances are launched every year, they develop a lot of attention. There’s a support system for launch, and then they sit back.” Gould added that it’s also about the quality of the fragrance itself that attracts repurchases. “With Giorgio [Beverly Hills], people wore it because they wanted to be recognized when they walked in the room,” he said, also noting that exclusives with department stores made a launch successful. “The issue isn’t about traffic, the issue is about conversion. The issue is about changing the transaction into a relationship. And that to me is the biggest opportunity.” Burns-McNeill agreed: “It’s a combination of distribution and the awareness of what you’re creating outside of the distribution.” That includes understanding and engaging with the consumer. “Mobile is just a behavioral change, but you have to understand what it is, just like e-commerce.” In relation, brick and mortar isn’t going away, according to Gould. “We all want an emotional, social connection,” he said. “That’s what I think fragrance has given and could give again.” The group agreed that looking ahead there are opportunities in the niche fragrance market, with an opportunity to fill a void with niche brands. “I think quality fragrance, where the actual juice itself has been created with a higher quality, expensive ingredient on a price per kilo basis, it smells different—it smells amazingly different,” said Burns-McNeill. “And if you have the courage to create something like that and you put it out there, there are connoisseurs who will appreciate it.” —Report courtesy of GCI sister publication Perfumer & Flavorist ( www.perfumerflavorist.com)

18 Added Value GCI April 2015

event recap The Emotion in Scent Colleagues of Karine Lebret Leroux, fine fragrance creation and development director, L’Oréal, touted her hard work and knowledge of fragrance during the 2014 Women in Flavor and Fragrance Commerce gala. Leroux called out the various industry friends and colleagues who had helped her throughout her career, including Michael Carlos of Givaudan, who accepted her into the company’s perfumery school. Leroux’s perfumery studies led her to become a fragrance design manager at Givaudan in Paris, where she collaborated with Givaudan client L’Oréal. Here, Leroux met the late Patricia Turck Paquelier, who served as the managing director of international prestige and collections within L’Oréal’s luxury division. It was Paquelier who eventually hired Leroux at L’Oréal, where she now oversees the creation and development of fragrances for L’Oréal’s portfolio of 14 brands—including Giorgio Armani, Lancôme, Ralph Lauren, Kiehl’s, Diesel, Viktor & Rolf and Cacharel.

Creating Emotion in Scents “Perfume is an emotion,” said Leroux. “The only things that will succeed are those scents that connect with the consumers’ emotion. Take [a brand] like Maison Martin Margiela. There is a real emotion. You are able to work with the perfumers for three or four years on the same accord. If you’re not moved by the accord, you don’t move forward.” Leroux added that consumers will recognize a scent that is not a “true emotion,” and will not repurchase it. “Each launch is a very big business challenge,” she explained. “At the end of the day, the only way to make money in the long term is to create an emotion.”

A Sustainable Future Sustainable products are “the future of perfumery,” said Leroux. “Green products, sustainable development of perfumery—it’s just a fantastic initiative. It’s a real challenge for L’Oréal and our competition, of course, but it’s probably the most human and exciting initiative we have ever had in this industry.” Designing fragrances and brands that are sustainable requires companies and teams to think of the consequences of ingredients, sourcing and the effects on local communities, she notes.

A Unique Industry “The translation between emotion and sense is very unique,” said Leroux. “The industry is unique because it is small and specialized. Very few learn it well.” From the earliest educational stage, when trainees create their own personal “dictionaries” of smells and associations among natural and synthetic materials, fragrance creation is highly associative and individual. The free mixture of artistic and business aspects, according to Leroux, allows fragrance developers to remain artists as they translate emotions into scents. —Report courtesy of GCI sister publication Perfumer & Flavorist ( www.perfumerflavorist.com)

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MARKET REPORT: SUN CARE SALES

I IMPACT POINTS n

In 2014, sun care’s global retail value grew at its slowest pace.

Buoyant demand in Latin America helped sales climb 18% at fixed U.S. dollar exchange rates to $2.3 billion.

Brazil leapfrogged the U.S. to become the biggest sun care market in the world in 2014, with spending reaching U.S. $1.7 billion.

Most consumers, from East to West, perceive sun care as a product with very specific function.

There’s a need for increasing consumer awareness that sun protection is part of a larger skin wellness regimen.

Getting closer to consumers through social media platforms will be especially important.

Market Report: Sun Care Sales

t’s a slippery slope when a product category becomes over-reliant on discount activity to drum up demand. Take wine: Its year-round, 2-for-1 deals are now the norm in some Western markets. As a result, millions of consumers only buy wine if it is on sale. Not surprisingly, suppliers’ margins are getting battered. The sun care category has more in common with wine than one might think. Like wine, it urgently needs to recruit new consumers. But, unlike wine, it is locked into a cycle of increasingly aggressive pricing to attract those consumers. In the U.K., for example, the buildup to summer 2014 saw a dizzying array of 2-for-1 sun protection deals in leading supermarkets and pharmacies. The problem with discounting in sun care is that consumers will not think twice about stockpiling. That rationale is simple enough: Grab a good 2-for-1 deal if you see one and store away the surplus sun protection or aftersun until it’s needed. In the U.K., indeed, it will be interesting to see if sales in 2015 drop off on the back of the previous year’s higher-visibility promotions.

Multitasking It’s easy to see why discounting might seem an attractive route for sun care brands. The category has been negatively affected by the proliferation of multifunctional skin care

and color cosmetic products, most of which now have UV protection as one of their default functions. Women, especially, increasingly rely on products such as BB and CC creams for their daily UV protection—as well as on body lotions as an alternative to aftersun. If anything, these trends have narrowed the occasion profile of traditional sun care products. Yes, many people still buy sun care brands for their summer (and winter) vacations, but even in the vacation period, skin care and color cosmetics are seizing some of the momentum.

A Latin American Lifeline Such fierce cross-category competition is taking its toll. In 2014, sun care’s global retail value grew at its slowest pace in a decade, according to the latest data from Euromonitor International (based on values at fixed U.S. dollar exchange rates). Tellingly, growth in North America and Western Europe was flat. The category was bailed out, to a large extent, by buoyant demand in Latin America, where sales climbed 18% at fixed U.S. dollar exchange rates to $2.3 billion. In fact, Brazil leapfrogged the U.S. to become the biggest sun care market in the world in 2014, with spending reaching $1.7 billion. Brazil (and Latin America as a whole) is battling strong economic headwinds at the moment, however. If spending power were to tighten significantly, which appears likely,

GCI April 2015

The sun care category is locked into a cycle of increasingly aggressive pricing to attract new consumers.

BY ROBERT WALKER, EUROMONITOR INTERNATIONAL we could see more and more Latin American consumers skimping on their sun care. It means there is little room for complacency among global sun care brands currently doing well in the region.

Three Big Challenges: Functionality, Segmentation and Occasion The challenge for sun care brands is to come up with more innovative ways of driving sales, especially in the developed markets. Rather than competing on price, brands need to win over consumers with more effective functionality and segmentation strategies. In relation, there remains a need to increase the occasion usage of sun care, especially in markets where consumption is primarily fueled by summer vacations. To some extent, innovation in functionality is already happening. In Western Europe, for example, a handful of brands are bringing a more sophisticated tan-maximization technology into play. While in Asia Pacific (where the West’s tanning fashion is turned on its head), there are growing numbers of sun care brands offering skin lightening technology. In both cases, however, the impact on the overall sun care category is still quite small. The problem is that most consumers, from East to West, perceive sun care as a product with a very specific function. To www.GCImagazine.com

be clear, it was always going to be easier for skin care and color cosmetics to broaden their functionality platforms because these products were already part of a daily beauty regime for millions of consumers. It was a case of adding value to something that people were already buying into. The challenge for sun care is much bigger because the category is straitjacketed by its heritage as an occasion-specific product. Even in Brazil, where sun care has managed to elbow its way into the daily routine of growing numbers of middle-class women, its usage still declines markedly outside the summer vacation season.

Connecting With Consumers It will take time to change consumers’ perception of sun care. Stronger development of brands with anti-aging, moisturizing and skin-hydration benefits will definitely help. But sun care brand owners also need to get better at increasing consumers’ awareness of the differences in efficacy between their products and the multitasking skin care and color cosmetics products in which sun protection is only an added benefit—not a primary function of the products. The sun care category needs, perhaps, to be more aggressive in its marketing and less aggressive in its pricing. Getting closer to consumers through social media platforms will be especially important. This type of connectivity has

helped, to an extent, in Brazil—but sun care still lags a long way behind color cosmetics and skin care in its social media profile.

Overdependence So, are the storm clouds gathering around sun care? The simple answer is: yes. The latest projections from Euromonitor International show Latin America fueling 62% of the category’s absolute global growth (growth in incremental retail value) through 2019. Such a high level of dependency, in a region tipping toward economic instability, is risky. At the same time, consumers in Western markets are starting to get comfortable with their multitasking skin care and cosmetics brands (and brand loyal to boot). How long before those brands start eating significantly into sun care’s vacation occasions, too? Keep in mind that consumers are buying those brands not because they are cheap (on the contrary, they are often quite pricey) but because they give the impression of offering good overall value. It is, in short, their functionality and convenience driving the demand. Promotion-wielding sun care brands need to cotton onto this—and fast. n GCI

ROB WALKER, senior fast-moving consumer goods analyst, Euromonitor International, can be contacted at rob.walker@research7.euromonitor.com. Market Report: Sun Care Sales

PACKAGING, SENSORY INNOVATIONS

The Feel of It: Packaging With Sensory Clues Designing a sensory experience into packaging and providing sensory cues about the product within are powerful ways to connect with the consumer at shelf.

BY SARA MASON

ore and more, beauty products must appeal to five senses—in particular, the color, texture and aroma of a product must appeal to the target consumer. It makes sense then that the packaging supports the feel and appearance of the product it holds—but can packaging do more? With the rapid proliferation of new products in the marketplace, suppliers are helping brands look beyond the traditional packaging palette to include as many packaging sensory cues as possible in the marketing and product development. Sensory innovations can include visual benefits, tactile effects and even audio clues. “We are living in a world of ‘smart technology’ that is becoming an everyday feature in our lives, even with beauty tools and devices that help deliver salon results at home,” says Sandra Hutson, sales and marketing director, Topline Products. Brand consultancy Interbrand US divides sensorial packaging for beauty into two categories: conscious and unconscious. Containers for cosmetics—particularly, fragrances—make more conscious tactile appeals to the consumer. Modern perfume

Packaging, Sensory Innovations

bottles come in all shapes and sizes of glass. Elegant, sculpted glass containers provide the consumer with a sense of luxury, for example. Tactile encounters with toiletry packages tend to be unconscious, aside from designs made with ergonomics in mind—such as when Topline Products developed the Neotensil Reshaping Tool for the brand Living Proof. The innovative applicator has been designed to optimize the performance of the formula and has an engineered shape that provides maximum control with consistent application pressure. The real innovation of this tool is the “cool-touch” tip, which is specially designed to minimize friction and help enhance the formula’s results. More convenient, more hygienic and often adding to the consumer’s overall product experience, direct applicators have become increasingly popular in skin care. Fusion recently launched Direct Effect Airless Applicators, a line of bottle-based, piston-driven direct applicators designed to enhance the product application experience. The line features three unique applicator styles designed with the consumer in mind.

GCI April 2015

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Packaging, Sensory Innovations “The first-of-its-kind curved tip applicator precisely contours to the delicate areas of the face, allowing the silky thermoplastic elastomers (TPE) surface to glide across the skin with a feather-light touch,” says Alexander Kwapis, creative director at Fusion Packaging. The line also features single and dual stainless steel rollerballs for massaging benefits and to enhance the absorption of skin care products. “Consumers can feel the difference a quality applicator can make, from the instantly refreshing touch of stainless steel to the cushy feel of TPE,” explains Kwapis. “And the ergonomic textured finger pad allows for easy, single-hand application.”

Supplier Innovation Packages often use shapes that conform to being held in the hand, with many textures and finishes that make them more sensual. The development of new materials, manufacturing processes and packaging materials/components are strong drivers in the creation of products and packaging that provide sensory effects. Fusion recently worked with dōTERRA International to develop two packages that combined a matte spray with a clear silkscreen effect, which gave the Tru bottle and Tru airless tube a really interesting dimension. When consumers hold the package in their hands, there is a unique juxtaposition between the more granular matte and ultra-smooth transparent

silkscreen. “The combination results in a beautiful visual and tactile experience that makes the brand more memorable,” says Kwapis. When designing new products, it’s important to keep in mind the consumer’s understanding of the package. “We wanted to push the boundaries with new forms and materials, but we also had to pay attention to what was already on the market and which shapes consumers sought out for specialty skin care,” says Kwapis. Fusion went through several rounds of trial and error before deciding on the final applicators in the Direct Effect line. To bring the innovations to market much faster, however, the supplier used existing components from its stock collections.

What the Future Holds Looking toward the future, as brands think outside the traditional box and utilize sensory cues that make the decision to buy or not to buy at the retail shelf a simpler one for consumers, those brands will also be able to better capitalize on opportunities for growth—which also lead to more opportunities to incorporate emerging technologies into the packaging story. “I believe sensory packaging will be designed to work with different devices and apps that will analyze the product’s performance or the skin’s characteristics to create unique, customized solutions,” says Hutson.

Imagine a package that indicates exactly which shade of eye shadow or skin care formulation is right for a specific consumer as that consumer picks up the product from the retail shelf. Taking the guesswork and human error out of the equation means more consumers will be confident in the selection and be more likely to be satisfied with their purchase. “Tech-savvy consumers have an insatiable appetite for new experiences— novel sensations and visual eye candy, driving sensory application in marketing,” says Hutson. “Our goal is simply to deliver package solutions that will make life easier for the consumer—easier to use, easier to select on shelf and more efficient.” With so many products on the market often claiming to achieve the same results, packaging really allows brands to set themselves apart. “The packaging is what first catches the consumer’s eye, so creating a sensory experience [when they interact with] the product can increase curiosity and drive trial, which ultimately leads to sales,” adds Kwapis. With such a brief window to make an impression on the consumer, sensory packaging can increase brand interaction and build a connection so that product stays at top of mind. n GCI

Sara Mason is a freelance writer based in the Chicagoland area. She was previously managing editor of GCI magazine.

24 Packaging, Sensory Innovations GCI April 2015

MARKETING

Brands th at and whos can generate af fin e it on the ba brand can transce y and trust for mille n sis of thei r core valu d a specific produ nnials ct es are sitt ing on a g category old mine.

IMPACT POINTS

Brand affinity among millennials can be categorized two ways: be today’s “next big thing” or be the brand that’s always been there for them.

Whether you’re an emerging new brand or a heritage brand, a sense of freshness in your approach to millennials must be maintained.

A core tenant of the millennial generation is social interaction.

Millennials’ willingness to converse provides a new opportunity for brand marketers.

Millennials also love to be entertained, but keep in mind, a brand marketer’s job is to entice them to buy the brand.

Marketing

BY JERI SMITH

any marketers are concerned about the death of the traditional brand. As the millennial generation (those classified as adults ages 18-34) start to exercise their purchasing power, there is a strong sense of foreboding. The media is full of reports of how millennials don’t pay attention to or believe traditional advertising. Store brands proliferate and consumers who switched from name brands to save money when their household budgets were tight don’t seem inclined to go back. What’s a brand marketer to think and, more importantly, what are they to do? Millennials do love brands. They just love some different brands than their parents did. While advertising might have helped to compel the 40+ year-old consumer to hunt for name brands, her 20-something counterpart may have come to rely on the Costco Kirkland brand or the Trader Joe

brand to provide the same type of trust and reassurance. She knows what to expect from Kirkland or Trader Joe’s or Sephora, much as consumers have always known what to expect from brands. Name brands provide reassurance and trust, and they save time. Millennials, like the rest of us, are time-crunched and don’t want to research or agonize over every purchase decision. Buying a brand she knows enables her to make quick purchase decisions, even for categories in which she hasn’t purchased in before. In fact, this timesaving, reassurance building dynamic is particularly important for millennials as they enter into household and family formation life stages. Brands that can generate affinity and trust for millennials are filling an important need, and are valued accordingly. Millennials appreciate brands that they feel speak to them personally and who they are—not to their parents. But they

GCI April 2015

MARKETING

For the majority of brands, simply being clever, trendy and in-the-moment isn’t a unique or enduring brand proposition.

Marketing

also value brands with which they formed relationships when they were kids, and those that they perceive as classics. Building brand affinity among millennials can be categorized two ways: be today’s “next big thing” or be the brand that’s always been there for them. Millennials love Michael Kors and Chanel as much as Lululemon and Ralph Lauren, Annie’s Snacks and Cheetos. Whether you’re an emerging new brand or a heritage brand, a sense of freshness in your approach to millennials must be maintained. Cheerios, a brand nearly all millennials remember from their childhood, has been consistent in its brand positioning for decades—Cheerios provides a family bonding experience over breakfast. But in 2013, Cheerios made headlines (and built affinity among a new generation) with its TV spots that featured an interracial family. More recently, the brand made waves again through its depiction of a (surprise!) highly capable stay-at-home-dad serving Cheerios to his kids. Dove, a soap brand that’s been around since 1953, has captured the hearts of a new generation through its celebration of ordinary women in its Real Beauty campaign and, more recently, ordinary men in advertising for its Men+Care line. Newer brands have less of a burden of relevance than do established brands, but they do have a greater challenge breaking through and getting noticed amidst the daily onslaught of brand messages. Because new brands are starting with a blank slate, it’s even more important for them to maintain clarity of positioning— providing a clear answer to what millennials want to know: “Who are you anyway, and why should I like you, trust you and want to bring you into my life?” Conventional wisdom says that to maintain relevance in the minds of consumers, brands shouldn’t step too far outside of their known product categories. When it comes to traditional brands, that’s still true. You wouldn’t expect Estée Lauder to extend their brand to paper towels— the brand doesn’t possess that level of elasticity—but as millennials come to rely on brands to provide a more general sense of reassurance about value and quality, it’s perfectly acceptable for Trader Joe’s to apply its unique private label brand of hip and healthful value to

wine, beer, coffee and to soap. And for the Kirkland private label brand to provide value and reassurance across products ranging from appliances to fresh bread. Brands that can generate affinity and trust for millennials and whose brand can transcend a specific product category on the basis of their core values are sitting on a gold mine. A core tenant of the millennial generation is social interaction, not only with family and friends but online with complete strangers with whom they share only a particular topic of interest. Likewise, millennials are eager to talk with brands, to not only provide feedback but to be recognized as associated with a particular brand. This willingness to converse provides a new opportunity for brand marketers, but it’s one that can easily be misused and abused. Millennials, like all consumers, want to know what to expect, and they want to be heard. They want brands that understand them, but they also want brands that they understand. So a brand that tries to be too in the moment, commenting on all manners of current events and topics runs, the risk of losing its unique identity or persona. For the majority of brands, simply being clever, trendy and in-themoment isn’t a unique or enduring brand proposition. Millennials also love to be entertained. Brand marketers, be warned, don’t let them suck you in. Your job is to entice them to buy your brand. YouTube views, sharing and re-tweeting can help build your brand, but only if the communication is A) remembered as being about, or at least presented by, your brand and B) generates a sense of affinity for your brand. The good news is that millennials are just as brand-conscious and as brand-loyal as their parents were, and they are just as open to brand messages that will entice them to buy and advocate for your brand. n GCI

JERI SMITH is president/CEO of Communicus, a research-based advertising consultancy that specializes in isolating the impact of advertising and integrated communications campaigns on brands. Smith has focused her career on helping clients more intimately understand how their advertising is working, having spent more than 20 years at Communicus and another 15 at DDB, leading consumer research, planning and marketing information services units.

GCI April 2015

Why send R&D staff to C&T Summit? 1) They’ll be immersed in high-level technical presentations and hands-on workshops. 2) They’ll explore the future of cosmetic science. 3) They’ll delve into product development. 4) They’ll uncover new potential for your company.

June 22 & 23, 2015 University of Pennsylvania, Philadelphia

Marketing, Social Media PerforMance

Quantitative measure of storytelling give brands a more meaningful understanding of how well their social content is performing. By Martyn tipping

toryScore is a new quantitative measure of storytelling that fits into a brand’s social management dashboard alongside more traditional popularity-based measures such as “likes” and “shares.” The StoryScore metric is based on creativity, strategy and personality to give brands a more meaningful understanding of how well their social content is performing. StoryScore also allows brands to create stronger social brand narratives that reinforce the themes and messages being communicated on other channels.

Study Methodology Ten beauty brands that represent a crosssection of cosmetic and skin care brands were selected: Aveda, Clinique, Cover Girl, Dove, Kiehl’s, MAC, Maybelline, Olay, Too Faced and Urban Decay. Brand Chorus, which developed StoryScore, analyzed every post made by each brand between October 1 and October 31, 2014 on Facebook, Twitter, Instagram and YouTube. In total, 1,152 posts (224 Facebook posts, 630 Twitter posts, 275 Instagram posts and 23 YouTube videos) were analyzed. Only content that is created by the brands is included in the analysis—shares or retweets 30

Marketing, Social Media Performance

that don’t have commentary from the brand or direct responses to consumers in the analysis were not include. Each individual post is analyzed based on factors such as tone of voice, creativity, use of video/imagery, and how the post fit with brand and business strategy. This analysis is then used as a foundation to calculate a StoryScore using a proprietary algorithm. Results were as follows:

Scores and Ranking Rank 1 2 3 4 5 6 7 8 9 10

Brand MAC Urban Decay Dove Too Faced Aveda Kiehl’s Clinique Cover Girl Olay Maybelline

StoryScore 84 83 72 71 69 60 56 55 45 39

Top level, General Findings 1. All brands posted content on Facebook, Twitter and Instagram. Eight out of the 10 brands posted content on YouTube, with the exception of CoverGirl and Too Faced.

2. A high volume of posts looks good on a traditional social media dashboard, but it is not necessarily an indicator of success when it comes to social media storytelling. In fact, three out of the five most prolific posters (Clinique, CoverGirl and Maybelline) all have StoryScores below 60, suggesting that they are producing a large amount of content that has a very small impact on building brand equity. 3. Images tell a powerful story in the beauty category, so it’s not surprising that two out of the top five brands (MAC and Too Faced) use Instagram as their main social media channel. By contrast, the bottom half of the StoryScore Index all use Twitter as their main channel. 4. Images that provide beauty inspiration or education/information (tips, how-to’s, backstage shots) are typically more impactful and do a better job of reinforcing a brand story than straightforward product shots. Unfortunately, many of the brands in the study are still using product shots (often without people) as their main source of images. 5. Brand Chorus has seen across other categories that brands with a clear, welldefined mission tend to have higher StoryScores. For this reason, we were not surprised to see Dove and Aveda among the top five brands.

GCI April 2015

Marketing, Social Media Performance Study Highlights by Brand Rank

Brand

Score

Comments

Instagram is the main social channel for MAC, accounting for 45% of all posts in October 2014. Instagram is ideal for showcasing images relating to Fashion Week and other fashion/ beauty shows, accounting for 43% of all MAC’s posts.

Urban Decay made more Facebook posts than any other brand in the study, and Facebook accounts for 37% of the brand’s social media posts. Almost one in five Urban Decay posts are a beauty tip or tutorial.

Dove relies heavily on Twitter, tweeting 58% of all its social content. The brand has not embraced Instagram, posting only six images during the period of the study. The Dove brand theme of self-esteem and real beauty comes through strongly on social media, accounting for 42% of all posts.

Too Faced made more Instagram posts than any other brand in the study. Too Faced has a warm, approachable tone of voice, and does a good job of posting about product reviews/ awards or showcasing feedback from consumers. This type of post accounts for 15% of all social content for Too Faced

Twitter accounts for 60% of all Aveda’s social content. Aveda makes more cause-related posts than any other brand in the study, and also posts more about stylists/shows than any other brand except MAC. Unfortunately, Aveda also posts a lot of open-ended questions (such as “are your Halloween costumes recyclable?”) that negatively impacted the brand’s overall StoryScore.

Kiehl’s has the lowest number of combined fans/followers across all brands in the study, and also made the least number of posts (an average of two a day). While several of Kiehl’s stronger posts focused on skin benefits or brand stories, the dominant theme was a sweepstakes that accounted for 24% of all posts.

The dominant platform for Clinique is Twitter, which accounts for 60% of all social content. The most frequent theme across all social channels was related to an eight-piece gift promotion, which accounted for 22% of all posts.

CoverGirl was the most active brand on social media, with an average of seven posts a day. Twitter dominates CoverGirl’s social activity, accounting for 78% of all content. CoverGirl makes more celebrity-related posts than any other brand in the study, and shows more product shots (without models) than any other brand. Posts promoting products account for 41% of all CoverGirl posts.

Olay is one of the least active brands on social media, with an average of two posts a day. Olay posted more videos to YouTube than any other brand in the study, but Twitter was still the dominant platform (60% of all posts). Posts relating to Oprah’s The Life You Want Tour (sponsored by Olay) accounted for 22% of all social content.

Twitter accounts for 61% of all Maybelline’s social content. Maybelline has a distinctive tone of voice (addressing fans/followers as “pretties”), and makes a strong connection to the brand’s roots in New York in several posts. However, Maybelline’s StoryScore is negatively impacted by “generic” posts such as “Just keep the coffee flowing” or “I want it to be Friday night” that account for over 20% of all social content. n GCI

Martyn Tipping is CEO, Brand Chorus, the social business intelligence practice of brand consultancy TippingGardner, and home of StoryScore. Prior to founding TippingGardner in 2000, Tipping was director of verbal branding at Landor Associates, New York where he led branding programs for a wide array of clients, including Delta Air Lines, United Cerebral Palsy, Motorola, Xerox, AT&T and Ford Motor Company. Tipping also worked on some of the biggest corporate name changes in the 90s (Verizon, Accenture and Altria, among them). Tipping holds an MA in modern languages and social psychology from the University of Cambridge, England, and is a former faculty member at Georgetown University, where he taught brand strategy in the MBA program. 32 Marketing, Social Media Performance GCI April 2015

SUPPLIERS’ DAY

WHERE GLOBAL BEAUTY MEETS Attend Suppliers’ Day and Meet: • 300+ Suppliers • 6,000 Industry Professionals • Countless Industry Innovations May 11, 2015 Discover India Symposium Renaissance Woodbridge, Iselin, NJ May 12-13, 2015 Suppliers’ Day Expo NJ Convention & Expo Center Edison, NJ

FACE CARE, CONSUMER INSIGHTS

IMPACT POINTS

Almost 64% of all social media conversations regarding facial care were about moisturizers.

In conversations about facial product on social media, retinal and antiaging creams are talked about with a lack prominent emotions.

While men talk about creams, defining a cream as a “men’s” cream is a less popular notion to them. Guys, too, like to see their creams labeled for face, eye and night.

Data demonstrates the need for face care brand owners to focus on channels that are more talked about and to create meaningful retail partnerships.

Face Care, Consumer Insights

s one Facebook user aptly pointed out “My face is my temple,” and a blogger recently oﬀered that “There’s no point in a pretty body if you don’t spend time taking care of your face, too.” These comments, just a few examples from explorations of the social media universe, demonstrate how face care is a rather sensitive but insanely popular realm of conversation. Of more than 50,000 online conversations about skin care that were generated in summer 2013, about 40% were about face care. The social media space is a vibrant source of current, candid and unprompted consumer insight. While other research methods focus on asking questions of consumers, they are estranged from modern consumers’ app savvy mobile world. Empowered with the ability to tweet, review a product, post a picture, blog a review and so much more, anything is public and is accessible to anyone. One of the key attributes of social media in terms of consumers’ shopping experience is that it allows a direct, candid comparison of products, brands and stores. Because consumers speak freely about their preferences through social media, it provides a more level playing field than can be acquired through traditional, question-based research. Any brand, whether a dominant player or an upstart boutique, can gain unfettered access to consumers’ unedited thoughts. Unlike findings from previous work in beauty, makeup, general skin care and body care, there are two key takeaways with face care: first, a moisturizer is the ultimate need of every consumer; second, there is an overwhelming lack of emotion in the category. This lack of passion seems to indicates lack of awareness regarding the category or confusion in the marketplace. This is not necessarily a negative, and may be an opportunity for brands to enlighten and excite in a category that is, quite literally, in your face.

GCI April 2015

FACE CARE, CONSUMER INSIGHTS

The Moisturizer Story When walking into a store, consumers have to decide whether they’ll the face cream or night cream, the retinal cream or corrective cream, or whether to buy a serum instead of a cream—and with all of them promising to be the elixir of youth. It might alarm retailers and beauty brand marketers to learn that most conversations on social media are dominated by talk of moisturizers (see Figure 1). Almost 64% of all conversations were about moisturizers, compared to less than 12% for all other creams in total (including face, eye, wrinkle and antiaging creams). While brands may think “moisturizer” is an overused word and not diﬀerentiating enough, they cannot overlook the fact that this remains the fundamental necessary function of any face care product, no matter how it is repackaged. When looking to brands that provide the best moisturization (see Figure 2), Clinique outnumbered all other brands with 20% of the conversational volume, while all other brands captured less than 10% of social media chatter. This is due to the brand value of Clinique’s face moisturizers, which is why consumers vocalize thoughts like: “[Clinique] is a miracle product!” or “I owe it to Clinique and their Dramatically Diﬀerent lotion ... :) Thanks Clinique!” It is no surprise that of the top 10 brands, Clinique also garners the most positive conversations. Garnier, Olay, Maybelline and L’Oréal Paris follow, with a lower volume of conversation. Nonetheless, almost half of them are positive, a trend that continues even to the lesser talked about brands, too. Dove however stands out as having the most neutral conversations, with only 4% positive, owing perhaps to its campaigns that focus on real beauty, which are so starkly distinct from mainstream face care advertising that they evoke polarizing emotions. And when emotions are at a tug of war, the result is an overall neutral impression.

A Plethora of Creams We cannot talk about the face without talking about creams that cater to every facial aspect and time of day. While general face creams lead the conversation, it is no surprise that eye creams come next, followed by a series of youth generating ones: night, wrinkle and aging see Figure 3). 36

Face Care, Consumer Insights

Figure 1. Product Conversations

Figure 2. Moisturizer Brands

The most talked about cream, however, does not evoke much of any emotion, except for development areas in feelings of trust and energy (see Figure 4). Retinal and antiaging creams are similarly talked about with a lack prominent emotions. Consumers only speak passionately about wrinkle and night creams, with the most appreciation and enthusiasm for the former and excitement and happiness with the latter. This exposes a huge opportunity area for beauty companies to conduct advertising and social media strategies that encourage their loyal consumers to talk more passionately about the creams they use. Men’s creams are an interesting category. While men talk of all of the aforementioned creams as their own, defining a cream as a “men’s” cream is a less popular notion. Guys like to see their creams labeled for face, eye and night, as well.

Figure 3. Creams Conversations

GCI April 2015

Beyond Moisturizers and What Face Products Mean for People

Figure 4. Creams Profile

Figure 5. Product Profiles

Beyond moisturizers and creams, store shelves are packed with a plethora of products, and nearly overwhelming consumers. The candid nature of social media enables beauty companies to understand which ones of these are worthy of further investment, based primarily on how much people talk about them, often indicative of use, and what emotions they attach to them (see Figure 5). Exfoliants and sunscreens evoke much appreciation. Touting everything from walnut shells to cleansing beads, exfoliants, in particular, evoke much excitement and energy by making consumers feel “fresh and [their] skin awake,” as one blogger points out. However, there are opportunities for these highly function-driven products to become more fashionable. This may be easy for the creams of the world, but not so much for exfoliants, sunscreens, cleansers and toners. Ever popular face masks evoke humor and excitement, owing to folks making fun of them instead of focusing on functionality (an image that could do with an overhaul). Anti-aging products evoke both appreciation and trust. It is a heavily sought after category, but despite these two emotional strengths, beauty companies have the opportunity to distinguish and refine the category further by making it fashionable, exciting and classy—all of which are less charted territories. And lastly, cleansers and toners oﬀer an opportunity for more emotion, perhaps by educating consumers on how to use them or by talking more about them.

Talking About Face Care Problems

Figure 6. Face Problems

www.GCImagazine.com

No product goes to market without a problem-solving or enhancement-related angle. And similarly, an exploration of which problems consumers talk about most reveals that complexion issues are most popular (see Figure 6). Discussions about acne, wrinkles and scars are followed by conversations about blackheads and whiteheads. What’s more interesting than the topics themselves is that there is a direct correlation of conversational volume to positivity: the more people talk about something, the more positively they talk. Face Care, Consumer Insights

FACE CARE, CONSUMER INSIGHTS This is quite distinct from previous social media research, since, in general, consumers tend to “vent” more on social media, and a large conversational volume is never indicative of positivity. However, this reinforces the notion that consumers may talk more about an issue if they are familiar with it, or are relieved to find solutions for it. And within areas where they are unaware or confused about a subject, they simply won’t speak openly online.

Everyone Loves Sephora Not surprisingly, conversations about face care centered mostly around Sephora, which garnered almost a quarter (23%) of all store related conversations. Of these, 41% were positive and only 3% were negative, reinforcing the retailer’s competitive position. Pharmacies, resellers and department stores followed with 18%, 15% and 14% conversational volume, respectively, each with slightly more negative perceptions (see Figure 7). This fortifies the need for face care brand owners to focus on channels that are more talked about and to create meaningful retail

Face Care, Consumer Insights

Figure 7. Stores

partnerships. Perhaps leveraging the buzz about certain retailers would evoke more passionate conversations about a category that is rather sensitive, but nonetheless important. In conclusion, social media is an important supplement to traditional research for truly understanding the simpler insights that other research methodologies sometimes overlook. n GCI

SOURABH SHARMA comes to SKIM with a keen eye for understanding consumer behavior. He adds perspective to marketing research from his years in brand management and product development at L’Oréal, where he launched hair color and makeup products for brands in Asia and North America. With a multifaceted background, Sharma enables the firms he works with to acquire a stronger understanding of their end users. Furthermore, he strives to extract value from the evolving brand-to-consumer interface through his social media research.

GCI April 2015

This documen e t is i published by

WRAP UP

The latest in Packaging innovation

SUPPLIER NEWS

Tamper Evident tubes, Sample Sizes

World Wide Packaging LLC. opened a 100,000-square foot tube manufacturing facility in Suzhou, China, wholly owned by WWP USA. The facility will offer both small-volume, high-SKU production and high-volume large-output production, as well as quick turnaround for pre-production samples and color matching. A wide array of stock tubes and closures, as well as fully customized closures, will be manufactured in the facility’s injection molding department. M&H Plastics

M&H Plastics, part of the RPC Group of companies, added an orientated tear-off strip cap to its tube range for brands that require tamper evidence and enhanced security. The tear strip design provides a clean look and, once removed, a practical lip to open the cap. According to the company, brands can benefit from full sleeve printing or labelling, and can opt for a ‘sight glass’ window so consumers can see when the product is nearly empty. The new tubes are available in 35/45/50mm diameters, with capacity from 40 mL to 250 mL. In addition, M&H Plastics added a 15 mL Vogue bottle to its catalog. This enables greater opportunity for trialing and promoting new products. The Vogue and its complementary closure can be color-matched, decorated or labelled to match existing portfolios. A PET range is also available. www.mhplastics.com

The Lindal Group announced the opening of a new facility in Turkey. It will manufacture aerosol solutions, including valves, actuators and inserts. BOVs and custom molding capabilities will be added. Further, the new plant will support regional and multinational customers, as well as act as contract fillers.

PEOPLE The Contract Packaging Association (CPA) announced that its executive director, John Mazelin, has been inducted into the Contract Packaging Association Hall of Fame, which honors professionals who have made a significant contribution to the Contract Packaging Association and the contract packaging industry.

John Mazelin

“The exceptional growth of CPA is due directly to John’s devotion to the association,” said Chris Nutley, President, CPA. “He is a thought leader and a dedicated champion to our members—and to the industry. He works tirelessly and selflessly to advance CPA. We are thrilled to have John inducted into the CPA Hall of Fame.” Mazelin is the vice president-business development for Accu-tec, Inc, a member of the B4B Alliance. His responsibilities include overseeing business development across the Alliance—which includes Accu-tec, Inc (a contract packager), Mercury Logistics of Kentucky (a 3PL provider) and Shippers Supply Co (a supplier of packaging materials). The New Jersey Packaging Executives Club (NJPEC) announced its new officers for 2015: John Ziemba, Tadbik, to president; Ed Wirtz, Brad-Pak Enterprises, to vice president; Jessica Lum, Topline Products, to treasurer; Bruce Konecky, Allstate Paper Box Company, to secretary.

Brushes Galore

Anisa International Inc. introduced new patent-pending collections, products and line of handmade cosmetic brushes at Cosmopack Bologna 2015. With specially designed fiber dimensions, the patent-pending Oval Collection of brush heads provides precision placement to help highlight, contour, accent and detail the face. The curved edge of the oval shape allows the brush to perfectly pick up, place and blend product into the skin. For face, neck, décolleté and body, the oval brush head of the Wonder Brush Collection features four unique beauty tools: the Perfecting Wonder, the Polishing Wonder, the Bronze Wonder and the Seamless Wonder. The Artisanal Collection, handmade tools, features a specific flexibility-to-stability ratio that provides a unique aerating effect on makeup formulas, and the Aurora Handle Collection features brush handles combine mixed metals with a series of customizable finishes to create a warm, invigorating color sheen. www.anisa.com

40 Wrap Up GCI April 2015

Dual Dispensing Pump

VAriBlend

VariBlend announced its MiniMix 20mm dispenser, designed for lip glosses, concealers and other on-the-go personal care products based upon fixed or variable delivery ratio of two different formulas. MiniMix utilizes patented technology, and is, according to the company, the first “spatial” mixer that custom blends two formulas with no residual product. The delivery process utilizes a tightly webbed, precision matrix of 19 separate nozzles to distribute select ratios of two thoroughly blended formulas onto a surface applicator, resulting in a freshly blended, smooth delivery. The slim profile MiniMix is suitable for a wide range of products, and offers a consumer variable ratio, which allows for multiple settings between formulas. It outputs up to 25 microliters per stroke and can blend from 3 mL to 5 mL like or different rheologies. MiniMix will be available in a number of nozzle/container combinations as well as complete, “ready-to-market” packaging solutions. www.variblend.com

www.GCImagazine.com

Bag on Valve, Fine Spray

Aptar Beauty + Home provided Bag On Valve systems topped by the Simplicity Twist To Lock accessory for Suave’s Moroccan Infusion Silkening Spray Lotion and Sea Mineral Replenishing Spray Lotion. The Bag On Valve is a compressed air-powered dispensing system that keeps product separate from propellant and allows consumers to use all the product in the packaging. The Simplicity Twist To Lock accessory is finger friendly, and its positive locking position with covered orifice allows for no-mess portability. Aptar also provided the Bag On Valve System for Kiss My Face’s Kid’s Defense Air Powered Spray and Baby’s First Kiss Air-Powered Mineral Lotion Spray sunscreens. Both sunscreen sprays are topped by Aptar’s Glencoe Twist-ToLock accessory on VX valve for convenient, no-mess portability. Lastly, Aptar supplied its Precious spray pump for La Nuit Trésor, a new fragrance for women by Lancôme. The pump technology combines gentle actuation and continuous diffusion. The diffusion is designed to be longer than typical and provide extreme uniformity of fine particle spray. www.aptar.com

Wrap Up 41

MAIN INGREDIENTS

Ingredients now on the market

Launches At in-cosmetics 2015 Microbial-activated Brightening

Induchem uses skin’s microorganisms to activate skin brightening in its latest launch. Brightenyl is an alpha-glucoside derivative of trihydroxybenzoic acid (THBA), a known potent but highly unstable tyrosinase inhibitor. It uses stratum microbium, a new functional layer of human skin, to partially convert to THBA and act on seven biological targets to even skin. THBA and the ingredient’s unconverted form tri-hydroxy benzoic acid alpha glucoside (THBG): capture UV-induced free radicals (ROS); prevent UV-induced DNA damage; reduce the expression of PGE2; control the Nf-kB pathway, control the expression of MITF; saturate keratinocyte receptors for melanosomes; and block melanin synthesis even under UV conditions. Brightenyl is recommended for smooth whitening creams, intelligent brightening serums, lightening lotions or sprays, CC creams (color correction creams), skin tone enhancing gels and or antipigmented spots serums. www.induchem.com

Natural Surfactant

Naturex introduced a natural surfactant derived from quillaia. Because it is extremely rich in saponins, the extract possesses unique foaming properties. The Andean people have been using quillaia to clean skin and treat skin disorders for centuries. Research has confirmed its calming and dermopurifying properties. Sustainably sourced in the Chilean forest, the plant is efficiently processed in a facility located close to the harvesting areas. This quillaia extract can be used as a natural non-ionic surfactant, non-allergenic, bringing softness and naturalness to skin care, hair care, baby care and oral care products. www.naturex.com

Skin Feel Silicones

Wacker debuted two silicone elastomer gels that improve skin feel in skin care and color cosmetics. Belsil EG 1 and Belsil REG 102 improve spreadability and exhibit pronounced shearthinning attributes. They are solid at rest but convert to a liquid state in response to shear stress, allowing for quick spreading on the skin. Both gels contain cyclopentasiloxane as a liquid component, which evaporates upon application to leave the elastomer. As a result, the formulator can freely modify the desired consistency and sensory effects of the elastomer after its application. Belsil REG 102 forms a water-repellent film that adheres well to the skin without becoming sticky, thus providing long-wear benefits to formulations such as lipsticks, makeup and sunscreens. It also adds a pleasant and silky soft skin feeling to moisturizers and night creams. Conversely, Belsil EG 1 is intended for cosmetic products that are not required to meet high demands on water and transfer resistance. Belsil EG 1 is preferred for enhancing rheological and skin-sensory properties, especially of skin care creams, mascaras, skin cleansers and deodorants. www.wacker.com

Invoking Positive Emotion

Studies conducted by Lucas Meyer revealed that its phospholipid emulsifiers were capable of invoking positive emotion. The company used techniques developed by specialists in psychology and neuroscience to scientifically measure the pleasure that these ingredients induce upon application. Their study analyzed consumer’s behavioral (facial micro-expressions and variations in vocal intonation) and physiological (a dilation of the pupils or even as an electrodermal response triggered by excessive perspiration) reactions to a product. In all cases, volunteers preferred the formula containing phospholipid emulsifiers to the placebo, and the company noticed a high increase in parameters confirming the positive emotion triggered by the product. www.lucasmeyercosmetics.com

Moisture Blend

Rahn sourced three forest plants known to manage moisture to create an anti-aging moisturizer blend. Hydractin-LMF is a combination of lichen (Iceland moss), fern (common polypody) and moss (peat moss) to retain and store water and boost the skin’s natural moisturizing factor. The increased hydration of skin, in turn, makes skin look younger. In addition to its moisturizing effect on the face, the blend also smoothes, moisturizes and softens stressed, cornified and cracked feet. The plant blend is Ecocert-certified and can be considered as Chinacompliant. www.rahn-group.com

Alpine Protection

Mibelle Biochemistry unveiled an alpine flower stem cell active designed to protect stem cells from environmental challenges to allow them to regenerate. PhytoCellTec nunatak was derived from the alpine flower Saponaria pumila, which survived the last ice age on ice-free mountain peaks called nunataks. Stem cells in the dermis are responsible for the tissue regeneration that keeps skin firm and elastic. The active was found to protect these cells against UV-induced loss of stem cell-characteristics. It was found to significantly improve skin elasticity, firmness and density after four weeks of treatment. The active is recommended in any formulation that protects skin from one of the biggest causes of premature aging, environmental aggressors. www.mibellebiochemistry.com

Mild Facial Cleanser

Croda created an effective, mild surfactant for advanced facial cleansers. Cithrol 10GTIS was inspired by the East. It allows the use of skin care oils to gently and efficiently cleanse and soften the skin, while being easily rinsed off with water. The surfactant allows the formulation of crystal clear facial cleansers made up of oil and water in a microemulsion, maintaining the perfect hydrolipophilic balance required for this type of high performance system. www.croda.com

42 Main Ingredients GCI April 2015

SUPPLIER NEWS AAK Personal Care is strengthening its position in the Polish market with the appointment of Nordmann, Rassmann Polska Sp.z o.o. as its sole distributor in the country. SEPPIC was awarded the Round Table on Sustainable Palm Oil’s (RSPO) Mass Balance supply chain certification for its main production site in Castres, France. ANGUS Chemical Company has been divested by The Dow Chemical Company through an investment by private equity firm Golden Gate Capital. BASF began an Open Innovation Contest to find sustainable technologies that are capable of storing power from the grid and feeding it back into it. Ideas can be submitted until June 2, 2015, at which point up to five winners will be chosen and announced November 2015. Each of them receives a prize of €100,000. The winners also have the chance to collaborate with BASF in a research project based on their idea. DKSH and Shin-Etsu have signed an agreement to market, sell and distribute Shin-Etsu’s silicone product range in Eastern United States. Air Products has named HORN as its distributor in the Southwestern United States, including Texas and surrounding states; and Pride Solvents & Chemical Co. as its distributor in the mid-Atlantic and New England states. Metabolix Inc. and Honeywell signed a global, exclusive commercial and technology alliance to offer Metabolix’s Mirel polyhydroxyalkanoate (PHA) biopolymers as part of Honeywell’s Asensa line of personal care additives. DSM Personal Care has transferred the manufacturing process of its SYN-Peptides portfolio from Aesch, Switzerland to its larger manufacturing facility at Village-Neuf, France. AkzoNobel’s Specialty Chemicals business recently broke ground on a new alkoxylation facility in Ningbo, China, bringing the company’s total investment in the strategic multi-site to more than €400 million.

PEOPLE Joe Matt, to account manager of personal care; and Susan Shapiro, to marketing manager of communications, for Croda Inc. in Edison, N.J., USA. Ron Birnbaum, to business director of personal care for the NAFTA region in the Nutrition & Care segment, for Evonik. Philip Ludwig, manager for global product development and applications at Lonza Consumer Care, has been appointed to the advisory council of the Center for Dermal Research (CDR). James Daybell, to marketing manager of Oat Cosmetics. Pat Brueggman, to senior vice president and general manager of Vantage Personal Care, with global responsibility for the personal care businesses of Lipo Chemicals, Desert Whale Jojoba Company and Ruger Chemical brands. Mélanie Waeckel, to lead global hair care marketing for DSM Personal Care. Albert Calvillo, to regional sales manager for Europe, the Middle East, Africa, India and Latin America; Mikel Gorostiaga to regional sales manager of Asia/Pacific; and Domenico Palella, to regional sales manager for North America, for The Lubrizol Corp.

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Main Ingredients 43

MAIN INGREDIENTS Launches At in-cosmetics 2015 Natural Emulsifier

Dr. Straetmans unveiled a natural emulsifier blend for o/w emulsions with higher viscosities that provide a rich texture and nourishing skin feel. Symbio muls rich combines emulsifiers, stabilizers and a wetting agent to maximize convenience and efficacy for the formulation and production process. It can form stable emulsions within a wide range of viscosities and oil-concentrations. Even with low oil concentrations and low viscosities, a rich and caring skin feel is achieved due to the emulsifier and sunflower seed wax combination. It has easy spreadability and is compatible with different oils and actives. This emulsifier blend also provides basic antimicrobial activity to help the formulator reduce the amount of preservatives needed. www.dr-straetmans.de

Milk Protein Hydration

TRI-K Industries added a milk protein to its NPNF (non-paraben, non-formaldehyde) line that increases skin hydration in rinse-off products. Milk Tein NPNF is made from food-grade milk powder, with a high level of amino acids. The company previously offered the milk protein as Milk-Tein NL, which has anti-irritant and protection benefits. These benefits are also found in the NPNF version; however, the company’s recent rinse-off data supports the use of Milk Tein NPNF to improve and retain skin moisture. The milk protein is a substantive film-former that immediately increases skin hydration but also improves skin’s moisture retention with repeated use in rinse-off applications. It prevents dry skin caused by surfactants while protecting skin and improving skin feel. The protein is gentle and can be used on delicate skin. The ingredient is recommended for rinse-off applications such as facial wash, body wash, shower gel, hand wash, antibacterial soap and facial masks. www.tri-k.com

Biodegradable exfoliants

Micro Powders Inc. commercially launched its biodegradable exfoliant technology. Bioscrub is produced from naturally derived polyhydroxybutyrate (PHB) powders via the bio-fermentation of sugars. The scrub is an effective abrasive, but does not irritate the skin and is stable in formulations. It is available in two particle sizes, 20PC and 50PC. The new biodegradable scrub meets all environmental requirements of current and proposed microbead legislation, while providing the same high-performance exfoliation. PHB is characterized as readily biodegradable under OECD standards for marine and freshwater environments. www.micropowders.com

Soothing Algae

Deveraux Specialties cultivated fresh water and marine algae from around the world to create a comples with an array of synergistic benefits. Many photosynthetic organisms that are simultaneously exposed to both visible and UV radiation have the adaptogentic mechanism to avoid the damaging effects of UV radiation. With over 2 billion years of solar protective adaptation, algae is well suited for skin protection. DL Rainbow Algae is comprised of multiple algae species to nourish, soothe and moisturize skin and hair. www.deverauxspecialties.com 44 Main Ingredients GCI April 2015

EVENTS april 2015

Products and SERVICES

showcase

CONTRACT MANUFACTURING

14-16 in-cosmetics 2015 Barcelona, Spain www.in-cosmetics.com

15-16 MakeUp in Seoul Seoul www.makeup-in-seoul.com

15-16 Luxe Pack Shanghai 2015 Shanghai www.luxepack.com

may 2015 12-13 NYSCC Suppliers’ Day 2015 Edison, NJ www.nyscc.org/suppliers-day

13-14 Luxe Pack New York 2015 New York www.luxepacknewyork.com

14-16 Sustainable Cosmetics Summit North America New York www.sustainablecosmeticssummit.com

15 CEW 2015 Insiders’ Choice Beauty Awards Luncheon New York www.cew.org

june 2015 4-5 innoCos Summit Madrid, Spain www.innocossummit.com

9-11 HBA Global Expo New York www.hbaexpo.com

10-11 CosmeticBusiness Munich www.cosmetic-business.com/ tradefair/en

15-16 in-cosmetics Korea 2015 Seoul, South Korea www.in-cosmeticsasia.com/in-cosmetics-Korea

22-23 C&T Summit Philadelphia Summit.CosmeticsandToiletries.com

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Products and Services Showcase 45

Products and sErVIcEs

showcase CONTRACT MANUFACTURING

CONTRACT MANUFACTURING HEALTH • BEAUTY • OTC • HOUSEHOLD PRODUCTS A TOTAL SERVICE – Formulation to Drop Shipping Long and Short Runs FDA-EPA Registered Visit our web site at www.ecometics.com 19 Concord St., So. Norwalk, CT 06854

ECOMETICS INC. 203-853-7856

to reserve space in this section, contact

Kim Jednachowski

kjednachowski@allured.com 1-630-344-6054

Tom Harris

tharris@allured.com 1-201-445-4702

Jane Evison

jane-evison@btconnect.com 44(0)-1430-441685

PACKAGING

Products and Services Showcase

GCI April 2015

PACKAGING

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Products and Services Showcase 47

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

AkzoNobel

1-888-331-6212

www.akzonobel.com/personalcare

BASF

1-973-245-6000

www.carecreations.basf.com

Bayer Materialscience AG

49-2148-4766-9757

www.bayermaterialscience.com

Berjé, Inc.

1-973-748-8980

www.berjeinc.com

Bioscreen Testing Services

1-310-214-0043

www.bioscreen.com

Centerchem, Inc.

1-203-822-9800

www.centerchem.com

Coast Southwest, Inc.

1-714-524-2777

www.coastsouthwest.com

Cosmetics & Toiletries Summit

1-630-653-2155

summit.CosmeticsandToiletries.com

Croda, Inc.

1-732-417-0800

www.crodausa.com

Deveraux Specialties LLC

1-818-837-3700

www.deverauxspecialties.com

East Hill Industries, Inc.

1-972-367-6060

www.packagingcosmetics.com

Extracts & Ingredients

1-908-688-9009

www.morretec.com

Fusion Packaging

1-214-747-2004

www.fusionpkg.com

ICMAD/City Awards 2015

1-847-991-4499

www.icmad.org

IDICE SAS/Luxe Pack NY

1-212-213-4353

www.luxepack.com

Inoac Packaging Group, Inc.

1-502-348-5159

www.inoacusa.com

Lady Burd

1-800-345-3448

www.ladyburd.com

McKernan Packaging Clearing House

1-775-356-6111

www.mckernan.com

SCC California/Suppliers' Day

1-212-668-1500

www.caliscc.org

SCC New York/India Symposium

1-845-639-4045

www.nyscc.org

SCC New York/Suppliers' Day

1-201-750-9785

www.nyscc.org

Sensient Cosmetic Technologies

1-800-543-4524

www.sensient-tech.com

Simplex Filler Co., Inc.

1-707-265-6801

www.simplexfiller.com

SoGeCos/Cosmoprof Las Vegas

1-702-297-1060

www.cosmoprofnorthamerica.com

Spectra Colors Corp.

1-201-997-0606

www.spectracolors.com

Sun Deep Cosmetics, Inc.

1-800-985-2228

www.sundeepinc.com

The Beauty Company

1-202-686-4844

www.thebeautycompany.com

U.S. Nonwovens

1-631-952-0100

www.usnonwovens.com

Welch Holme & Clark Co., Inc.

1-973-465-1200

www.welch-holme-clark.com

35 3

9 Cover 4 5

Cover 2 17 Cover 3 14

for advertising info Kim Jednachowski

Tom Harris

Jane Evison

Paige Crist

All US States Except NJ & PA kjednachowski@allured.com 1-630-344-6054

NJ & PA, Canada, Central & South America tharris@allured.com 1-201-445-4702

Europe & Asia jane-evison@btconnect.com 44-(0)-1430-441685

Fragrance pcrist@allured.com 1-630-730-9240

48 Ad Index GCI April 2015

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