Business Brands Unilever smashes analyst Biotherm sets up ...

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Watchdog ANSM has announced withdrawal of company’s anti-ageing injectable, topical and oral products due to contamination risk and serious safety concerns F rench regulator ANSM (Agence nationale de securité du médicament), has announced the withdrawal of all Laboratoires Orgev International products from the French market and suspended the business from trading for six months, due to a risk of contamination and serious concerns over hygiene and safety. The companies affected by the withdrawal include: Laboratoires Orgev, Orgev, Orgev Cosmetics, Laboratoires Orgev International Ltd – specifically any products produced at the company’s plant in Rambouillet – and the products of Novatex Bioengineering. All of the above subsidiaries are forbidden from placing products on the market, distributing, importing, exporting, conditioning or using their products. Laboratoires Orgev specialises in injectable, topical and oral anti-ageing products, such as Lifting Biologique, and is used by dermatologists Among the violations cited, ANSM lists issues such as unsuitable locations for production and stock-holding; unregulated water quality in the company’s plants; no documentation regarding cleaning of plants or storage areas; labelling on products not showing the name of the company responsible for production, nor the lot number or address; numerous storage issues such as polystyrene packs of pre-filled hyaluronic acid syringes being stored on the floor, with no proof of sterilisation or which products were sterilised and which were not; no temperature control in the stockrooms for products that require storage between 2-15°C in order to be safe; and a ‘nauseating’ smell coming from boxes of product. The companies will be allowed to trade again if they can prove in six months’ time that they have taken effective measures to comply with the regulations on hygiene and health. Read more at cosmeticsbusiness.com Business Unilever smashes analyst sales expectations page 2 Innovation Gattefossé zaps age spots with kiwi page 9 Retail Biotherm sets up podium at Oslo Airport in Norway page 6 Brands Barry M launches Sunset Nail Paint page 10 Henkel, Coty and Revlon eye P&G It seems that P&G is coming even closer to a decision over which brands it plans to keep – and which ones to axe – as part of its upcoming beauty divestiture, in which it said it could sell up to 100 of its beauty businesses. In a Reuters report it was revealed that Henkel, Revlon and Coty are now preparing bids for different parts of P&G’s beauty business, according to sources. The report went on to say that the three companies are working with investment banks in the run up to a first- round bid deadline, just past. It is rumoured that Henkel, which owns Schwarzkopf, has its eye on P&G’s hair care business, which includes Wella and Clairol. Meanwhile, Revlon is thought to be preparing a bid for some of P&G’s colour brands including Max Factor and CoverGirl. Finally, Coty is said to be “likely interested” in P&G’s fragrance arm, which includes Hugo Boss and Gucci. Reuters also noted that it is uncertain whether P&G will sell its brands as part of a package, “whose value could range from $10bn to $12bn”. What is certain, however, is that P&G plans to keep hold of category leaders that are “structurally attractive” and play to the company’s core strengths. Paul Fox, Director of Corporate Communications, told CBN: “We will be a company of about 65 brands and will divest or discontinue about 100... the brands we retain will be category leaders that are structurally attractive and play to our core strengths.” 27 April 2015 cosmetics business news 1 Among the violations cited, ANSM lists issues such as... a ‘nauseating’ smell coming from boxes of product NEWS cosmeticsbusiness.com twitter.com/cb_beautynews 27 April 2015 Issue 15 LABORATOIRES ORGEV FEELS THE STING OF FRENCH WATCHDOG Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission.

Transcript of Business Brands Unilever smashes analyst Biotherm sets up ...

Page 1: Business Brands Unilever smashes analyst Biotherm sets up ...

Watchdog ANSM has announced withdrawal of company’s anti-ageing injectable,topical and oral products due to contamination risk and serious safety concerns

French regulator ANSM (Agence nationalede securité du médicament), has announcedthe withdrawal of all Laboratoires Orgev

International products from the French marketand suspended the business from trading for sixmonths, due to a risk of contamination andserious concerns over hygiene and safety.

The companies affected by the withdrawalinclude: Laboratoires Orgev, Orgev, OrgevCosmetics, Laboratoires Orgev InternationalLtd – specifically any products produced at thecompany’s plant in Rambouillet – and theproducts of Novatex Bioengineering. All of theabove subsidiaries are forbidden from placingproducts on the market, distributing, importing,exporting, conditioning or using their products.

Laboratoires Orgev specialises in injectable,topical and oral anti-ageing products, such asLifting Biologique, and is used by dermatologists

Among the violations cited, ANSM lists issuessuch as unsuitable locations for production andstock-holding; unregulated water quality in thecompany’s plants; no documentation regarding

cleaning of plants or storage areas; labelling onproducts not showing the name of the companyresponsible for production, nor the lot number oraddress; numerous storage issues such aspolystyrene packs of pre-filled hyaluronic acid

syringes being stored on the floor, with no proofof sterilisation or which products were sterilisedand which were not; no temperature control inthe stockrooms for products that require storagebetween 2-15°C in order to be safe; and a‘nauseating’ smell coming from boxes of product.

The companies will be allowed to trade again if they can prove in six months’ time that theyhave taken effective measures to comply with theregulations on hygiene and health. Read more at cosmeticsbusiness.com

BusinessUnilever smashes analyst sales expectationspage 2

InnovationGattefossézaps age spotswith kiwipage 9

RetailBiotherm sets up podium atOslo Airport in Norwaypage 6

BrandsBarry Mlaunches SunsetNail Paintpage 10

Henkel, Coty andRevlon eye P&GIt seems that P&G is comingeven closer to a decision overwhich brands it plans to keep –and which ones to axe – as partof its upcoming beautydivestiture, in which it said it could sell up to 100 of itsbeauty businesses.

In a Reuters report it wasrevealed that Henkel, Revlonand Coty are now preparingbids for different parts of P&G’sbeauty business, according to sources. The report went onto say that the three companiesare working with investmentbanks in the run up to a first-round bid deadline, just past.

It is rumoured that Henkel,which owns Schwarzkopf, has its eye on P&G’s hair carebusiness, which includes Wella and Clairol.

Meanwhile, Revlon is thoughtto be preparing a bid for someof P&G’s colour brandsincluding Max Factor andCoverGirl. Finally, Coty is saidto be “likely interested” inP&G’s fragrance arm, whichincludes Hugo Boss and Gucci.

Reuters also noted that it isuncertain whether P&G will sellits brands as part of a package,“whose value could range from$10bn to $12bn”.

What is certain, however, isthat P&G plans to keep hold ofcategory leaders that are“structurally attractive” and playto the company’s core strengths.

Paul Fox, Director ofCorporate Communications,told CBN: “We will be acompany of about 65 brandsand will divest or discontinueabout 100... the brands weretain will be category leadersthat are structurally attractiveand play to our core strengths.”

27 April 2015 cosmetics business news 1

Among the violations cited,ANSM lists issues such as... a‘nauseating’ smell coming fromboxes of product

“ “NEWS

cosmeticsbusiness.com twitter.com/cb_beautynews 27 April 2015 Issue 15

LABORATOIRES ORGEV FEELS THESTING OF FRENCH WATCHDOG

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LVMH, which owns Dior, Benefit andGuerlain, has been boosted by a 16% climb in first quarter sales to u8.3bn.

The world’s biggest luxury player was buoyedby a weaker euro. Perfumes & Cosmetics salesexpanded 16%, but without currency distractionorganic sales climbed a more modest 6%.Analysts, however, were generally upbeat: “A very solid set of results,” said LVMH AnalystLuca Solca. JP Morgan Cazenove AnalystMelanie Flouquet suggested LVMH was hikingprices in Europe by up to 4% from 1 April, but“did nothing in Asia Pacific yet”.

More rumours have been circulating about directselling beauty giant Avon and its future.

In a report by the Wall Street Journal, Avon is said to be exploring a sale of its “struggling”North American business, although it did note no action is expected to take place soon.

However, when CBN approached Avon todiscuss the matter, the company said that therumours were just that – mere speculation.

Avon has been active in North America foryears, although for the last three it has seenrevenue losses; the region accounted for 14% of the company’s total revenue in 2014.

If Avon did pull out of North America, it wouldnot be the first such decision to be made. InFebruary this year, Avon announced that itplanned to cease operations in 16 Caribbeannations. Its motive for this was to focus itsresources on improving its US business instead.

Avon has been suffering financially for sometime: just last year it felt the blow of a $135mbribery fine. Remaining positive, however, thecompany is in the process of implementing a$400m cost savings initiative.

On the product side, LVMH said ChristianDior saw “good momentum” while Guerlain wassupported by its new fragrance L’Homme Idéal.“Fresh and Make Up For Ever are expandingrapidly,” it added.

While a weaker euro has helped ease deflationin much of the eurozone – the euro is downalmost 20% against the US dollar in the last 12months – a flailing euro is a boon formanufacturers and exporters, particularly high-ticket luxury goods makers. Organic sales growthfrom LVMH’s watches and jewellery brands (7%)just pipped Perfumes & Cosmetics.

business

AVON TO EXIT NORTH AMERICA?

LVMH CELEBRATES RECORD Q1 SALES

A weakened euro has given Unilever sales awelcome push. The personal care giant, whichowns brands including Dove, Lynx and Impulse,saw underlying group sales climb 2.8% higher forthe first three months of 2015 compared with cityestimates of around 2%.

The sales uptick contrasts with the subduedtone CEO Paul Polman struck back in Januarywhen he anticipated little sales improvement for2015. The good news for Unilever, however,remains uneven. Personal care growth improved“but remains below historic levels in competitivemarkets,” the company said. Unilever added thatit is confident of seeing “an acceleration in thesecond half of the year”.

Deodorants performed decently. Dove “sawcontinued success of the Advanced Hair serieswhile TRESemmé launched the Perfectly(Un)done collection in the United States,” saidUnilever. “We are now starting to see moretailwinds than headwinds in our markets”,Unilever said in its update, indicating thatcurrency volatility was turning in its favour.

“That is the most optimistic we have heardUnilever sound in some time,” said BernsteinAnalyst Andrew Wood. Bernstein had originallypencilled in personal care growth of 4.2% for thefirst quarter versus 2.7%, so there was somemargin for improvement.

Unilever’s currency volatility – the companyreports in euros – has beenprofound: 60% of Unilever salescome from emerging markets likeIndia (where it saw improvement)and Brazil and Russia (wheresales came under pressure).Meanwhile, European sales havebeen undermined by the weakereuro and price deflation. Unileversays it will hike its quarterlydividend by 6% as a result of thestrengthened sales. The latestsales update saw its share priceleap by more than 4% to 3053p.

Unilever smashes analystsales expectations

Business: Puig reports strong yearend results 4

Trends: CBN takes a look at thelatest in hair loss 5

Retail: Biotherm unveils podium inOslo Airport, Norway 6

Expert Advice: Cosnova’s ChristinaOster-Daum talks self-ownership 7

Digital: Alexander McQueenexhibition plays with digital 8

Innovation: Researchers discoverhow to make sweat smell sweeter 9

Brands: Barry M launches SunsetNail Paint and Topcoat 10

People: Sarah Hyland steps out for Hawaiian Tropic 11

The Final Word: Craig Alexander-Wilson discusses direct selling 12

News Editor Lucy Copp

Acting Reporter Kathleen Armstrong

Sub Editor Austyn King

Freelance CorrespondentsSarah Cohen, Adrian Holliday, Patricia Mansfield-Devine

Production Designer Ross Murdoch

Art Editor Sibylla Duffy

Digital Production Nita Salem

Editorial Director Erika Hatva

Managing Director Colin Bailey-Wood

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CONTENTS

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NEWS

27 April 2015 cosmetics business news 2

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business

Henkel CEO Kasper Rorsted hascommitted the company’s future to Russiaand Ukraine, despite the ongoing political

tensions and a deteriorating Russian economy.“We have achieved significant growth

there and we believe in the future ofboth countries,” Rorsted reportedlytold shareholders at Henkel’s recentAGM. The Schwarzkopf hair caremaker takes u1.1bn in sales from theRussian region.

Other beauty players withsignificant exposure to Russia and the CIS region include Oriflame(Oriflame makes up to 50% of its sales from the region).

However, exposure to theplunging Russian ruble and theUkrainian hryvnia currencies havejolted share price and heightenedrisk. Oriflame’s share price hasproved particularly volatile, yo-yoing between 102.7 and 170Swedish krona in the last year.

Poundland sales have sailed past the £1bn per-quarter mark for the first time.

Full-year results from Poundland will not be known until next month, but they’re expectedto hit the £43.8m mark.

Poundland has aggressively targeted Beautysales for some time but the company does notsplit out product categories publicly, althoughCBN put in a specific request for salesinformation from the company.

Despite the bullish numbers, Poundland’sattempt to take over 99p Stores – a takeover thatcould cost £55m – has been stymied again. Themove has been referred to the Competition andMarkets Authority (CMA).

Dr Clive Black, Head of Research at ShoreCapital, said that if “the 99p deal cannot besensibly seen through due to CMA restrictions,then Poundland will do what is right forshareholders and walk away, albeit carefulconsideration implies that a way is still beingsought to find a breakthrough, in our view.”

However, Nomura again reiterated its Reduce rating on the stock. Poundland’s growth– buoyed by the fact that the company carriesvery little debt, compared with some of itscompetitors – continues to look strong: it opened70 new stores in the UK last year.

It’s also increasingly looking hard at Spain fornew growth opportunities. Poundland shareshave ranged from 284p to 421p in the last year.Before press its shares were selling at 335p.

Last year, Poundland entered the beauty arenawith its own line of products, Make Up Gallery.

Orysia Lutsevych from thinktank ChathamHouse points out that Ukraine’s GDP per capitais now only slightly higher than it was in 1991, a time “when it was on par with Poland. Now

it is four times lower”.Ukraine still plans to privatise

2,000 state-owned businesses thisyear, but Lutsevych said it isuncertain whether the move willencourage a new breed of oligarchsor radically improve the investmentclimate with the west.

Meanwhile, Henkel is said to bewatching P&G’s new beauty sell-offclosely, particularly with regard toWella; Kasper Rorsted snapped upseveral US hair care operations in thelast 12 months.

It is estimated Henkel has close to $5bn for possible deals, although it faces competition from othercompanies such as Revlon and Coty,who are also reportedly eyeing P&G’sacquisition sell-off.

HENKEL TIES CLOSER KNOT WITH RUSSIA

POUNDLAND SALES HIT £1BNWITH STRONG FORECASTS SET

NEWS IN BRIEF

Avon has announced it ispostponing its Investor Day,originally scheduled to takeplace on 13 May, to autumn

2015. The postponement willallow recently appointedChief Financial Officer

James S Scully “adequatetime to prepare for a morerobust discussion at the

meeting”. The company willrelease its first quarter

results on 30 April.

Avidbank Corporate Finance, a division of Avidbank, hasprovided finance to private

equity company San FranciscoEquity Partners for its

acquisition of Japonesque. Thefunding will include a revolvingline of credit and an acquisition

term loan. “For several yearsnow, Avidbank has enjoyed a

successful relationship with SanFrancisco Equity Partners and

we are happy to welcomeJaponesque as a portfolio

company,” said Executive VicePresident Larry LaCroix.

US fair trade beautyorganisation Alaffia wasnamed Large BusinessEmployer of the Year in the Thurston Economic

Development Council’s 2015Business Recognition

Awards. Alaffia makes bodycare products using raw

ingredients sourced from fairtrade cooperatives in West

Africa, employing more than500 women in Togo.

The Real Beauty Manifesto, anumbrella movement to promote

the principles of natural andorganic beauty, launched in the

UK on 20 April. Principlesinclude: purity, compassion,

community, transparency andsustainability. Organisationsand brands signed up so farinclude The Soil Association,The Natural Beauty Yearbook,Suti, NATorigin and LoveLula.

Unilever has launched a Wood Fibre Sourcing

Policy as part of its effort toeliminate deforestation fromsupply chains. It hopes that,

by 2020, all of the woodfibre-based materials it uses

are sustainably sourced,traceable from sources thatmeet certification standards.

27 April 2015 cosmetics business news 3

Will King, the former Chief Executive ofshaving brand King of Shaves, has launcheda new venture that will see him trim othercompanies into shape.

King’s new business, The Entrepreneurin Residence Company (theEiR.co), givescompanies advice on how to perform moreeffectively. King will help businesses fromSMEs to FTSE-listed companies to bettertheir own strategy. One of his first clients istechnology solutions company FutureGov.

Other high profile entrepreneurs areslated to join King as part of his team.

King said: “I’ve learnt a huge amountthese past 22 years and discovered thegreat number of people who really wantinsight in what it takes to be an entrepreneur,behave entrepreneurially and serve upsome of that secret ‘E-Sauce’ into theirbusiness.” He added: “To my knowledge,no company exists that can inject what I’vecalled ‘E-Suite’ expertise into a company atC-Suite (CEO) level that may never havebeen exposed to entrepreneurialtraits.” Read more atcosmeticsbusiness.com

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Puig put in a strong performance in 2014, itwas revealed in its end of year results. TheSpanish company – which owns the likes of

Nina Ricci, Carolina Herrera and Paco Rabanne,and the fragrance licenses for brands includingPrada, Mango and Shakira – saw net revenuesreach u1,508m, representing growth of 4.2% like-for-like. Meanwhile, net income was u177m,up 0.8% on the previous year.

In its latest statement, Puig noted that growthin sales of alcohol-based perfumes in 2014 waspartly attributable to the launch of Valentino’sValentino Uomo, as well as the continued successof Paco Rabanne’s 1 Million and Invictus. It alsocited Paco Rabanne’s Lady Million Eau My Gold!and Carolina Herrera’s 212 VIP Rosé as drivinggrowth in the prestige sector.

In the masstige arena, Puig said AntonioBanderas and Shakira enabled the company to“maintain an outstanding position in the masstigefragrance category in both the Spanish andinternational markets”.

Swiss flavours and fragrances company Givaudanhas reported sales of CHF1.091bn, up 0.9% on alike-for-like basis, and 0.4% in Swiss francs,compared with the previous year.

Revenue in the Fragrance Division edged upjust 0.3% to CHF519m (0.7% in Swiss francs)while fine fragrance sales fell by 1.8% comparedwith the prior year period’s double digit results.

However, growth was more positive for theSoliance cosmetic actives business, which itacquired in June 2014, increasing 2% in localcurrencies. Givauadan said the integration ofSoliance into the Fragrance Division was wellunder way and it was leveraging the capabilitiesof the division to support the growth of thebusiness. In the first three months of 2015,Soliance sales saw double digit growth comparedwith the same period last year, reaching CHF8m.Givaudan is also benefiting from Soliance’sexpertise in the area of innovation.

Across the division, fragrance ingredients salesfell by 0.6% on a like-for-like basis compared with the prior year period. The company said it is “continuing to transfer the manufacturing ofingredients to countries where it can sustain itscompetitiveness and increase the local capacitiesto fulfil the growing demand for certainspecialities”. In December, it announced thestrengthening of its initiative for the localproduction of patchouli oil in Indonesia,establishing a collection network on the island ofSulawesi. This, it said, complements its farmingpartnership agreement with GaiaOne and GayaNaturals for the production of patchouli oilin northeast Borneo.Read more at cosmeticsbusiness.com

Looking ahead Puig has predicted net revenuesof u2,000m in 2017, an increase of 33%compared with 2014.

However, Puig did acknowledge that theimpact of buying out Jean Paul Gaultier – anagreement that was announced earlier this year –will have a negative impact in 2016, described as“a year of transition” and the first year with thebrand in its portfolio. By 2017, Puig expects toachieve profitability ratios closer to current levels.

Looking at markets, Puig said that it predictsapproximately 50% of its sales will be generatedfrom emerging markets by 2017. In the lastfinancial year, 14% of revenues were generated in its domestic market Spain, an increase of 6%,while 86% were made in the rest of the world.Not far off its 2017 prediction, 46% of sales weremade in emerging markets in 2014, outside theEU and North America.

At the end of 2014, Puig had 4,192 employees,with more than 1,600 working in Spain.Read more at cosmeticsbusiness.com

business

SWITZERLAND’S GIVAUDANSALES REMAIN STABLE

PUIG REPORTS STRONG YEAR END RESULTS

27 April 2015 cosmetics business news 4

NEWS IN BRIEF

Henkel has signed an agreement to acquire

Novamelt, a Germancompany that specialises

in hotmelt adhesives, mainlyused for self-adhesive labels

and tapes. “Novamelt’ssolutions fit perfectly to ourexisting pressure sensitiveadhesives business,” saidCsaba Szendrei, HenkelCorporate Senior Vice

President, Packaging andConsumer Goods Adhesives.

US-based health and beauty aids manufacturer CCAIndustries has reported a 14.6%rise in net sales (to $6.95m) forthe first quarter of fiscal 2015,

compared with the same period in 2014. Operating income rose

$1.75m for a profit of $98.6m in the same period, compared

with the prior year period’soperating loss of $1.66m.

Plastic surgery proceduresperformed on men have

risen by 273% since 1997,according to plastic surgery

specialists Beverly HillsPhysicians. The biggest

rises have been in facelifts(+44%), eyelid surgery

(+34%) and male breastreduction (+33%).

Liposuction is currently the most popular procedurefor both men and women.

Yontem Cosmetics, a Turkishdistributor for Rejuvel Int’l, hassigned an agreement with theTurkuaz Group of Companies,

which will enable it to capitaliseon Turkuaz’s existing sales force

of more than 250 salesrepresentatives in northern

Turkey. Yontem anticipates thatits sales will double each month

during the next quarter.

German packagingmanufacturer Gerresheimer

has announced a 1.4%increase in revenues to

u301.8m in Q1 2015. Sales inthe Primary Packaging Glass

Division, which includescosmetics and pharma,

edged up 0.2% to u146.4m.The company said themarket for high quality

cosmetic glass packagingwas more sluggish in the

period, particularly forperfume and care products.

The cosmetic pigments market, whichcomprises special effect pigments, organicpigments, natural colourants and pigmentdispersions for nail, lip, eye, face and hairproducts, is on the growth path.

A report by research companyMarketsandMarkets revealed that the globalcosmetic pigments market is expected toregister between $1bn and $1.024bn by2019, in terms of value, growing at a CAGRof 7% between 2014 to 2019.

The largest markets for colour pigmentscurrently are the UK and US, which thereport puts down primarily to highdisposable incomes in developed regions.

The report cites that one of the largestmanufacturers of performance pigments is Sun Chemical Corporation, which islocated in the US.

Outside of these countries, Asia, namelyChina and India, are also expected toexperience high levels of growth in thissector over the next five years.

Asia Pacific is projected to see a veryhigh growth rate as well, mainly due torising consumer incomes.

Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission.

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trends

27 April 2015 cosmetics business news 5

This week, CBN focuses on the impact of male pattern baldness(MPB). According to Hair Development, in the UK alone 6.5 millionmen are affected by MPB, a hereditary condition that affects nearlyhalf of all men by the time they turn 50. Meanwhile, in the US,Relevant Research and the International Society of Hair RestorationSurgery stated 35 million men experience hair loss. By the age of 50,approximately 85% of men have significantly thinning hair, accordingto the American Hair Loss Association.

Mark Burns, Managing Director of Hair Development, said: “MPBis incredibly common and yet the ramifications of the condition aretremendous. Many men report a lack of confidence, loss of self-esteem, anxiety and depression. A full head of hair signals youthand fertility; once a man has hair loss, the impact can be extreme.”

Products that claim to aid hair regrowth have always been around;however, recently there has been a wave of new R&D and scientificdiscoveries. Scientists from the University of Southern Californiarecently found that by plucking 200 hairs in a specific pattern anddensity, they could induce up to 1,200 replacement hairs to grow ina mouse – science that could arguably form the basis of a treatment.Meanwhile, there is Laser Hair Re-Growth Therapy from HairDevelopment, which is said to be FDA-approved and scientificallyproven to trigger regrowth. Finally, Cellmid recently revealed testingresults of its topical product évolis ONE. The clinical study showedthere was an 80.2% reduction in hair loss over 112 days with twicedaily use, while there was an increase of 44.2% in growing follicles.

A UNIVERSAL ISSUEThe average person sheds hair on a daily basis. However, thenumber of hairs lost per day spikes when affected by hair loss. And it is not just men affected by the condition...

HAIR LOSS: A GROWING OPPORTUNITY

Source: Relevant Research and the International Society of Hair Restoration

110,00010021million

60%

Average numberof hair follicles on the scalp

Average number of hairs lost dailyby hair loss sufferers

Percent of women who will havenoticeable hair loss by age 60

Number of US womenexperiencing hair loss

Copyright © 2015 HPCi Media. This publication may not be distributed without prior permission.

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retail

Biotherm has set up its ‘biggest podium of the season’ at Oslo Airportin Norway. The podium will be on display from 1 March to 30 April.

The podium’s concept is based on ‘retail-tainment’, according to thebrand, providing various different experiences to engage theconsumer, while the main focus of the podium is hydration.

Among the experiences on offer, travellers can stop to undergo apersonalised skin diagnosis that uses Blue Smart technology andhelps to identify their ideal skin care routine. Meanwhile, passers-byare also invited to try out a unique hydration experience.

Aside from these experiences, the main focus of the podium is ‘theoculus experience’ (pictured right), which provides an in-store 360° experience in the eyes andears of worldwide kitesurfing champion Youri Zoon by using Oculus rift technology. Using gogglesand headphones, customers can view, hear and imagine all of Zoon’s sensations from a video herecorded of the lanscapes surrounding him when performing a kitesurfing performance in Tarifa, Spain.

The new podium is not the only hydration-inspired novelty to come from Biotherm in recentmonths. In early April, windsurf champion Florian Jung and marine biologist Dr Frauke Baguschepartnered with Biotherm Homme as they took on a 72-day sailing mission from Guadeloupe toMarseille. As well as performing important research into the ocean and microorganisms that inhabitit, Jung put the brand’s new Aquapower 72H hydrating moisturiser to the test.

NEWS IN BRIEF

Organic seaweed brandVOYA has announced plans

to sell its products across 15states and 44 spas in the US.

In a new partnership withThe Woodhouse Day Spa,which launches on 10 May,VOYA will be able to gain

a stronger foothold in the US market, which the

brand hopes “will aid growth on a global scale”.

Luxury retailer Selfridges will showcase a collection offragrances by lifestyle brandRoads in a curated window

display from 30 April to 13 May.The brand’s luxury fragranceswill also be on show as part ofan in-store installation, which

allows customers to explore thecollection first hand. Roads’fragrances are distributed by

Intertrade Group.

Retailers need to be aware of the impact of e-shoppingvia mobiles and tablets, andembrace changes in order

to capitalise on multi-channel opportunities,

advises Steve Rivers, CEO ofIntelligent Reach. In a recentrelease, Rivers advised that

retailers protect margins andprofitability by ensuring that“every product click drives

revenue”, which is achievedby optimising online activity

at a product level.

Cruelty Free International hasawarded UK supermarket

retailer Waitrose, which also hasa robust personal care offering,the Leaping Bunny for its policyon animal testing. The retailerhas been certified under boththe Humane Cosmetics and

Household Products Standards,symbolised by the Leaping

Bunny logo.

Budapest Airport is said tobe preparing to launch a

series of new retail tendersin May, according to The

Moodie Report. Among thenew retail openings, which

will all be located in theairport’s SkyCourt food and

shopping zone, will be asalon by hairstylist José

Eber and a cosmetics unitfrom Dead Sea and Gratiae,

as well as a Hungarian debutfor Victoria’s Secret.

27 April 2015 cosmetics business news 6

Marionnaud cracks the codeFrench perfumery chain Marionnaud is investingin its customer-oriented services with the launchof Code Beauté, a combination of products,customised advice and services.

Code Beauté consists of three steps: the first is a customised consultation with a ‘beautycounsellor’, using a programme developed foriPad. The second is the creation of an individualbeauty profile, with suggestions for appropriateproducts. The third sees a final diagnosis sent tothe consumer by email.

The launch of the service is being accompaniedby a huge publicity campaign, developed byParis-based advertising agency Rosapark and shotby photographer Arnaud Pyvka, which is rollingout in both print media and online. On theMarionnaud website, there are backstagephotographs of the ad campaign, and a link to a 30-second video featuring three women withdifferent looks posing for the camera. Read more at cosmeticsbusiness.com

Shiseido subsidiary The Ginza Co has opened a duty free store at Narita International Airport.

Located in Terminal 3, the store can be foundon the second floor in the duty free zone, Fa-So-La Duty Free, in the new terminal building.

Shiseido is said to have opened the store inorder to enhance its travel retail business, whichis expanding along with the increase in touristnumbers visiting Japan. It aims to increasecontact with consumers primarily from Asia.

In 2014, Japan reportedly experienced morethan 13 million foreign tourists – an all time highlargely put down to the depreciation of the yenand inauguration of LCC services.

Shiseido currently has 43 travel retail locationswithin 23 airports, all run by The Ginza Co.

Sales at these stores are said to be up 40%year-on-year during the period between October2014 to February 2015.

The company operates eight stores acrossTerminals 1 and 2 of Narita Airport.

SHISEIDO OPENS DUTY FREESTORE IN NARITA AIRPORT’S T3

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products at the best price-performance ratiopossible: over 95% of essence products aremanufactured in Europe, sold at an average priceof u2, while the CATRICE range is sold at anaverage price of u3.50.

We analyse all products internally andexternally and have strict, regularly monitoredrequirements for our suppliers to ensure thatcustomers can rely on high standards.

At the same time, up to 50% of both brands’ranges are renewed annually. Essence is thehighest selling colour cosmetics brand across all price segments, which makes it Europe’snumber one colour brand.

Where is cosnova currently distributed?The cosnova cosmetics brand essence isdistributed in almost 80 countries, while thesecond cosmetics brand CATRICE is available in over 50 countries in Europe, North and SouthAmerica, the Near and Middle East, Asia,Oceania and Africa. The company’s clientsinclude drug stores, food retailers, departmentstores, perfumeries and fashion chains.

What trends have you observed emerging onthe German market over the last year?There is a general trend towards multi-tasking,time-saving and long lasting cosmetic productsdue to the increasing speed of daily life. Multi-benefit products shorten daily beauty routinesthat have become more complex with regard toproducts such as facial primers.

We saw a big number of BB cream launchesand after that CC creams from both skin care and colour brands in the German market. Inaddition, there is still big hype about nail polishas a fashion accessory, as it is easy to wear and not too expensive.

Product improvements such as fast drying andeasier application have helped boost popularity.But nail polish effects have also helped to drivesales, and with the new generation of gel nailpolishes that offer even more intensive, longer-lasting colour united with perfect coverage, thenail polish trend will go on.

What does the future hold for cosnova’spresence in-store?We love to surprise consumers with the latesttrends and outstanding products. Therefore,essence will offer up to 20 limited editions andCATRICE up to 12 limited editions this year thatfeature unique new products.

Considering that consumers love to see the realshades of products and to test textures and effects,we still see the point of sale as the main contactplatform for our brands.

Nevertheless, we will watch the onlinelandscape closely. If consumers wish to buyessence and CATRICE online, they can order in several online stores, which are not owned by ourselves but by our trade partners.Read more at cosmeticsbusiness.com

expert advice

How is the German cosmetics market faring?After two excellent months in January andFebruary 2014, the colour cosmetics market inGermany moved to a moderate positive level,seeing 4% value growth and 5% volume growth.

Besides cosnova, with its brands essence andCATRICE, the main players on the Germancolour cosmetics market are foreign brands andprivate labels. Cosnova grew faster than itscompetitors in 2014. Our cosnova brandCATRICE has performed very well due to newranges and innovative concepts for trend-conscious consumers who value high quality at an exceptionally low price. In this way,CATRICE was able to achieve a volume marketshare of 7.4% (vs 6.4% in 2013) and a valuemarket share of 6.1% (vs 5.0% in 2013).

During the business year 2014, our leadingbrand essence was able to retain marketleadership per unit sold in Germany, which it has held since 2007. Essence was able to achieve a volume market share of 26% and value marketshare of 12.2% in 2014 thanks to its trendycolours, innovative textures and top qualitypackaging, all sold at the best possible price.

Cosnova recorded its highest turnover to datefor fiscal year 2014. What were the factorsbehind this milestone?Cosnova is a family business. With essence andCATRICE we have set new standards on theinternational cosmetics market. There are avariety of reasons for our success: after so manyyears, we are proud to remain an owner-runcompany that stands out for its lean organisationand quick decisions. This way, we are able torealise our innovative concepts and sell our

$279.3m

8050%

The net sales turnover for cosnova in fiscal 2014

The number of countries essence is sold in

The percentage of sales generated by foreign markets

KEEPING IT IN THE FAMILY

Family-run cosnova continues to go from strength to strength, asChristina Oster-Daum, Owner and MD of cosnova Beauty, discusses

27 April 2015 cosmetics business news 7

TOP 5Cosnova’s top sellingmarkets are:1 Germany2 Netherlands3 Italy4 Spain5 Switzerland

After so manyyears, we are proud to remain an owner-run company thatstands out for its leanorganisation and quickdecisionsChristina Oster-Daum, Owner and MD of cosnova Beauty

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digital

The first exhibition exploring designerAlexander McQueen’s catwalk make-up is to be held at the London College of

Fashion from 30 April to 7 August. The exhibition, Warpaint, highlights the

techniques and inspiration behind McQueen’scollections by examining key beauty looksdeveloped by his most trusted make-up artists.

In homage to McQueen’s use ofgroundbreaking technology, Warpaint will alsoexamine make-up digitally, working with digitalcreative studio Holition to create a 3Dinstallation showcasing catwalk moments wheremake-up looks evolved mid-show. Visitors willalso be able to see themselves in selected looks,with the help of Holition’s app, FACE.

“Make-up, whether obscuring or revealing, wasan integral part of the overall feel for each show,”commented Polona Dolzan, Exhibition Curator.“McQueen’s continuous obsession with pale skin,for example, can be seen in various iterations inmany of his shows. The beauty looks are soimportant and in the scheme of a largerretrospective, intricately considered details like

make-up may get a bit lost. The gallery is a smallspace that’s perfect for satellite exhibitions as itcan offer a different insight.” Indeed, the creativeFashion Space in Central London could beconsidered an ideal tribute to the late designer.“He was a Londoner born and bred and he pavedthe way for many people who are active in theindustry today,” Dolzan added.Read more at cosmeticsbusiness.com

Clinique has announced the launch of a360° print, digital and social campaign incollaboration with US writer, editor, singerand actress Tavi Gevinson.

The Estée Lauder brand said it wouldannounce further names also taking part inthe collaboration shortly, while the wholecampaign is on schedule to launch globallyin July of this year.

The campaign is said to reflect “thesmart, daring and adventurous spirit of thetalent Clinique has announced”. It is alsosaid to serve to spark dialogue with womenaround the world.

Clinique has never aligned a celebritywith its brand via campaign imagery.

CBN approached the brand to discussthis point, but was told that it was unable to provide any futher comments about thecollaboration at this stage.

NEWS IN BRIEF

Build-your-own app providerAppsme.com has provided

new findings into theimportance of apps for hairand beauty businesses. Theresearch found that apps arenot only increasing revenue,but 75% of businesses alsobelieve they help them look

good to customers: 32% of Appsme clients in this

sector said having an app has improved theircustomer engagement.

UK health and beauty websiteGet The Gloss has undergone a redesign in order to make iteven more mobile-friendly andeasy to use. According to DiaryDirectory, the homepage nowallows for key content to behighlighted for readers with

topic labels applied to editorialcontent and larger high-res

imagery used on the website. Inaddition, the Go Shop! sectionhas been redesigned and nowfeatures new filter options and

edits from the team.

According to EuromonitorInternational, 50% of onlineconsumers now use theirphones during the path to

purchase. The survey,Consumers in the Digital

World: Hyperconnectivity andTechnology Trends, revealedthat 94% of respondents go

online to research a potentialpurchase, regardless of

whether they end up buyingonline or in-store.

For the third year running, QVCand Cosmetic Executive

Women (CEW) linked up forQVC & CEW Present Beauty with

Benefits – a 2-hour livecharitable broadcast that

allowed consumers to buybeauty products and give backto charity. 80% of the purchaseprice of the donated products

sold went to Cancer andCareers, a charity programme

of the CEW Foundation.

Multimedia softwarecompany CyberLink

Corp has launched PerfectCorp, a CyberLink spin-off.CyberLink aims to explore

the market for mobile beautyapps through its flagship

platforms YouCam Makeupand YouCam Perfect.

27 April 2015 cosmetics business news 8

Beauty search engine apphelps shoppers find coloursA new mobile app has been developed that allowsconsumers to find cosmetic products in specificcolours by capturing the colour in front of them.

The ShadeScout app, developed by FaceCakeMarketing Technologies, is similar in concept tothe Dulux Colour App, which lets users capturepaint colours they see and then locate the shade.

Likewise, using ShadeScout users can capture any colour they see and then locate a cosmeticcounterpart from more than 40 major beautybrands. Once it has located a match, it will deliverdirect product matches to the app user. Theshopper is then able to virtually try on theproduct that has been scouted and buy it directlythrough the app. ShadeScout is able to scan foreyeshadow, blusher, lipstick and foundation.

In addition to the main concept, users of theapp can also take selfies, receive personalisedrecommendations and benefit from feedbackfrom family and friends through an in-app social sharing option.

Linda Smith, Founder and CEO of FaceCake,said: “With ShadeScout, you have the ability to instantly find products that match any colouryou see, from a celebrity’s red carpet look to a bouquet of fresh roses.

“You don’t need to have product information to find that perfect match: ShadeScout finds it for you. A search engine for today’s shoppers,ShadeScout makes it easy to find the productsyou want, virtually try them on, share them with friends [and] buy items, and is with youwherever you go.”

MCQUEEN EXHIBITION PLAYS WITH DIGITAL

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innovation

SUPPLIERS NEWSFACIAL HARMONYL’Oréal Paris has chosenone of Aptar Beauty +Home’s airlessofferings to packageits new Revitalift Filler[HA] anti-ageingtreatment. TheSerumony Premiumairless packagingvariety was chosenafter it caught L’OréalParis’ eye at the lastCherrypack eventorganised by L’Oréal. Read more atcosmeticsbusiness.com

A GENTLE APPROACHSpeciality chemicals companyClariant recently unveiled anew natural surfactant rangethat is said to be mild, sensoryand sustainable. The range,called GlucoTain, is sugar-based and sulphate-free. The skus are claimed to bekind to skin and hair proteins and the lipid layer, whileoffering thickening and highcompatibility with a wide rangeof ingredients.Read more atcosmeticsbusiness.com

ROCKING A NEW ‘DOInspired by the influence of pop culture on hair styling,chemicals company BASF haslaunched a set of formulationstailored to meet current trends.The aptly named Trends &Textures Box contains: EnduringPerformance Styling Gel, whichmakes use of the thickeningagent Luvigel Fit UP; Sleek andStyled Bodying Cream, whichcontains BASF’s cationicpolymer Luviquat PQ11 AT 1;Out of the Shower Wet LookStyling Gel, containing Ultrahold

Power; Sugar Spun SmoothingSoufflé, which features BASF’ssugar emulsifier EmulgadeSucro; and Rock Hard StylingGel, containing Luviset One.

THE KI(WI) TO AGE SPOTSSpecialty ingredients companyGattefossé has brought out anew ingredient that is claimedto target the causes of agespots on both epidermal anddermal levels. The ingredientcontains Sophora flavescensand kiwi fruit.Read more atcosmeticsbusiness.com

ALL ABOUT THAT BASEM&H Plastics has added somenew sizes to its Flat BaseBoston Rounds packagingoffering. The new additionscome in 30ml and 300ml sizes.The former is said to make agood travel and trial packoption, while the latter isclaimed to be the ideal size forhand soap in the bathroom.The stable, flat base design canbe matched with different lids.

27 April 2015 cosmetics business news 9

PERFUME SYSTEM HELPSSWEAT SMELL SWEETER

Researchers at Queen’s University Belfast have developed aperfume delivery system that releases more scent when itcomes into contact with moisture. The research team in the

Queen’s University Ionic Liquid Laboratories (QUILL) ResearchCentre created the system by tagging a raw fragrance onto an ionicliquid (salt in liquid form) which has no smell. When the ‘perfumedionic liquid’ comes into contact with water, its aroma is released,enabling more scent to be released onto a person’s skin.

In addition, the researchers said, the system may prove useful incombating unpleasant perspiration odours, as the thiol compoundsresponsible for the malodour are attracted to the ionic liquid,attaching themselves to it and losing their potency.

In research published in Chemical Communications (Issue 21,2015), the team described how it synthesised stable liquid and solidsalts in the form of hemiacetals, appended with fragrant alcohols, as pro-fragrances and tested their reaction to water: “These pro-fragrant materials were synthesised with a labile reactioncentre intentionally incorporated. The hemiacetal is attached to a non-volatile ionic matrix, to form a new class of pro-fragrances,where the release trigger is neutral water, and the fragrancemolecule is released cleanly and near quantitatively.”

However, the researchers added that “the control of release isdependent on the amount of water available”.

Project leader Dr Nimal Gunaratne from the QUILL ResearchCentre said: “This is an exciting breakthrough that uses newlydiscovered ionic liquid systems to release material in a controlledmanner. Not only does it have great commercial potential, andcould be used in perfumes and cosmetic creams, but it could also be used in other areas of science, such as the slow release of certainsubstances of interest.” The researchers are now working with a perfume development company on commercial concepts.

ESSENCE BEAUTY VENDING MACHINEPROVES A HIT AT COSMOPROF BOLOGNAColour cosmetic brand essence unveiled a beauty vending machineat last month’s Cosmoprof Bologna.

‘Beauty dollars’ were also handed out, entitling customers to afree nail polish, to further generate a buzz around the machine.

Kim Wegener, Head of PR at essence, discussed the brand’s useof a potentially hugely innovative marketing tool: “For the firsttime, Cosnova [essence’s parent company] introduced an essencenail polish vending machine. Cosmoprof visitors could use oneessence beauty dollar and choose their favourite essence gel nailpolish colour from the 46 different shades available.”

The vending machine aimed togenerate awareness of the brand’snewest product. “The gel nail polishline provides nails with moreintensive, longer lasting colour andan extreme high-shine, gel finish.This innovative formula workswithout an LED or UV lamp,” saidWegener, adding that the machinewas more of a marketing than retailtool: “Visitors used their beautydollars to redeem against a gel nailpolish – it was a simulated buyingprocess, and therefore Cosnova didactually not sell the products.”

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brands

NEW PRODUCTS1 XEN-TAN is launching its firstcapsule collection. The CleanCollection (£17.99-£33.99) is atrio of premium self-tanningproducts created to make menand women feel fresh and cleanwhile they tan. The formulafeatures Optimum Complex-30, a blend of DHA, melanin andXen-Tan’s proprietary time-release ingredient, which it saysguarantees a longer lasting,deeper, richer tan. The collectionincludes: Fresh Tanning Mousse,a grapefruit scented whitemousse, designed to developinto a rich olive colour in threehours; Fresh Face Tan, alightweight lotion with a lightvanilla scent infused withrevitalising and protectingingredients such as green tea,peptides and broccoli seed; andFresh Prep Scrub, a citrus-melonscented scrub designed toprepare the skin for self-tanning.Launch: May

2 French designer HERVÉGAMBS has launched theCologne Intense Collection(u130), three intense colognesfor both men and women. HôtelRiviera features a woody citrus

6 BOBBI BROWN has launcheda hybrid foundation with acocktail of ingredients that it says will beautify the skin fromthe inside out. Intensive SkinSerum Foundation SPF 40 (£39)is made using a bi-phase coldfusion process to maintain thepotency of the skin care actives.Ingredients include Cordycepsmushroom extract to re-energisethe skin; bamboo grass extract,which targets dullness anduneven skin tone; lychee,watermelon and apple extracts to boost moisture levels; acetylhexapeptide-8 to stimulatecollagen production; and anatural deep sea ferment torepair the skin’s barrier. IntensiveSkin Serum Foundation comes in 16 skin tones, ranging fromAlabaster to Warm Almond. Launch: out nowRead more atcosmeticsbusiness.com

scent with accords of violet leaf,mint, mandarin, bitter orangeand bergamot, sitting on a bed oforange blossom flowers, whileLa Baie des Anges offers asweeter take on citrus, withgrapefruit and rhubarb enhancedby jasmine and vanilla. Finally,Domaine du Cap goes evendeeper with notes of basil,thyme, lemon and fennel. Thefragrances are offered in opaquewhite bottles designed to exudeluxury and keep the scent fresh.The brand is also launching theWhite Fragranced CandleCollection, with three candles on offer (u45): Eau Italienne, EauDouce and Eau du Maquis.Launch: out now

3 BULLDOG is looking aftermen’s skin this summer with thelaunch of Bulldog ProtectiveMoisturiser with SPF15 (£8.99).Its formula soothes and hydrateswith natural ingredients includingaloe vera and green tea. Theproduct is also lightly fragrancedwith nine essential oils includingbergamot, vetiver and ginger.The inclusion of broad spectrumSPF15 is a first for Bulldog. Launch: out now

4 KIEHL’S has partnered withBritish DJ and model Zara Martinto create a limited edition skincare collection, the FestivalSurvival Kit (£94), packaged in aspecial festival tote bag. The kitincludes: Ultra Facial Cleanser

with a gentle formula thatremoves excess oil, dirt anddebris; Ultra Light Daily UVDefense SPF 50 for full spectrumsun protection; Skin Rescuer, a facial solution containing skinprotecting ingredients such as mannose and Rosa gallica;Micro-Blur Skin Perfector for an immediate blurring effect;Midnight Recovery Concentrate,with a blend of active oils said to create a fresher and moreradiant appearance by morning;and Crème de Corps, a bodymoisturiser containing beta-carotene to soothe and hydrate. Launch: out nowRead more atcosmeticsbusiness.com

5 BARRY M is bringing salongels into the home with SunsetNail Paint and Topcoat (£4.99).The long lasting nail colour’sformulation enables it to bond to the nail like a gel, without abase coat. The top coat then setsand cures the nails without theneed for a UV lamp. Barry Msays the glossy colour can lastfor up to ten days. It comes inseven shades: Do It Like a Nude,Fuschia Generation, The WayYou Make Me Teal, Can’t Get YouOut of My Red, I’ve Been Pinkin’,Peach For the Stars and YouDrive Me Navy. Launch: out now

27 April 2015 cosmetics business news 10

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2

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people

ACTIVE CONCEPTS has announced twonew appointments. KATHLEEN NORRISwill take on the role of Marketing Manager –North America, and will help to developand lead the implementation of marketingstrategies as well as coordinate marketingand sales promotions. Meanwhile, JULIECAVA will assume the role of MarketingManger – Asia. Cava will place a particularemphasis on foreign regulations, and hasrelocated to Osaka, Japan.

COTY has appointed CAMILLO PANE asEVP Category Development, effective July.Pane will report to Chairman and InterimCEO Bart Becht. Pane succeeds RenatoSemerari and his role will involve workingacross all of Coty’s businesses includingfragrances, colour, skin care and body care.

MEDICAL AESTHETIC GROUP hasnamed JENNY CLARIDGE as Director of Sales effective 1 May. Claridge, whopreviously worked at Johnson & Johnson,will join the group heading up its sales and marketing team.Read more at cosmeticsbusiness.com

Italian hair care brand DAVINES hasappointed MIKE BEAUCHAMP asCountry Manager, UK and Ireland. In hisnew role, Beauchamp will aim to build thebrand from both an industry and consumerperspective, through its direct sales teamand distribution network. Beauchamp joins the company from New Zealand-based Boutique Brands, a professionalhairdressing supply company, which hefounded in 2007.

RAISON D’ETRE, a spa and wellnesscompany, has appointed ANNA-CARIGUND to the position of ManagingDirector. Gund will also continue to serveas President of CIDESCO, a globalassociation for Beauty & Spa therapisteducation and accreditation. Gund boastsalmost 30 years in the spa and beautyindustry bringing a wealth of expertise.

RICHARD PHILLIPART, an award-winning hairdresser, is the new GlobalAmbassador for hair accessories brandINVISIBOBBLE. Phillipart is said to haveused the product during London FashionWeek. It is the first time the brand has aligned itself with an ambassador.Invisibobble is based around a traceless hairtie concept that leaves no kinks after use.

THE LATEST APPOINTMENTS

27 April 2015 cosmetics business news 11

US actress SARAH HYLAND, the face of sun care and tanning brand HAWAIIAN TROPIC, is making an appearance with the brandto mark the launch of one of its new products, Hawaiian Tropic Island Sport. Hyland will appear at the brand’s new Hawaiian TropicEscape Station – a pop-up concept – in New York on 5 May. The brand is also hosting pop-up stations in Palm Springs, New York Cityand Miami during April and May. Each station will feature complementary fitness classes and spa services, as well as products. Hylandsaid: “As an actress, taking care of my skin is incredibly important, especially when I’m outdoors or working out in the sun. HawaiianTropic is my go-to for sun protection because it combines the high performance SPF I need with the premium skin care I love – acombination that is hard to find.” The new product will be available nationally in the US and online, at mass grocery and drug retailers.

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It also includes magalogues (catalogues withproduct information) and marketing materials, as well as business tools.

Public liability is also included in this price, as is an online consultant web shop where yourparty goers can log on and repeat purchase.

Consultants don’t carry personal stock, so thereis no additional outlay for product. The items aresent direct to the customer or the party host.Additional items for their kit can be achievedthrough incentives such as new launches andrecognition rewards. Any items that needreplacing are available to purchase at a discount.

Invest in their careerAt Fake Bake, we also have a Commission &Career Plan so whether a person wants to be a consultant or manager, our primary focus isalways rewarding for every step of the journey.

The business can be grown to whatever levelthe consultant wishes and earnings are uncapped.No matter when they join or who offers them theopportunity, this multi-level plan allows them andtheir business to grow.

Hosts earn 15% of the sales made from theparty, which can be used to purchase products.We also have a ‘Hostess Loves’ section that, inaddition to the 15% commission, the host canbuy one item from this page at half the RRP.

Consultants can earn various amounts: 20% isthe minimum amount that can be earned, goingup to 35% depending on the total amount ofpersonal sales that month. For example, anaverage party of £280 would mean 25%commission or £70 would be earned beforeexpenses. Outgoings are minimum, based mainlyon travel expenses. Depending on sales, just oneparty can see a profit. On average, ourconsultants do four parties a month, while someothers can do ten or more. It’s a personal businessthat works by making it personal to eachconsultant, their time and their input.Read more at cosmeticsbusiness.com

the final word

Direct selling hasseen considerablegrowth over the pastfew years for a

number of reasons, includingthe economic climate, withdirect selling businesses nowbeing used as a viable way of boosting income.

Fake Bake recently launched our new FakeBake Beauty at Home direct selling business,which offers people the chance to becomeindependent consultants selling skin care, make-up, tanning, and bath and body productswith the support of the brand. We have seen astrong result since we unveiled the concept, withmore than 200 ‘Fake Bake parties’ held in the UKeach month so far, which is amazing consideringwe have only just launched.

The interest and registration from ourconsultants is varied. Backgrounds, current careerprofiles and the ages of our consultants all differ.In addition to our core Fake Bake range we haveexclusive skin care, make-up and bath and bodyproducts that are not available in retail locations.The service element attached to a party allows for bespoke beauty advice, application anddemonstration, which is not available online.

As a well-established global beauty brand, with an already mobile spray tanning businessand a strong database of mobile therapists, wewanted to open up a new opportunity not just in tanning or to industry professionals, but toanyone looking to create their own business andbe supported by a global brand.

Balance benefits with trainingBeing supported by a well-established globalbrand like Fake Bake, consultants also benefitfrom low cost and zero risk as a start-up business.They have flexible working hours, excellentcommission and career plan incentives, and alsobenefit from a car drivers scheme.

For consultants who want to be spray tantrained we have a programme that is accreditedby The Guild and BABTAC. Business buildingand product training are also offered as part of the start-up with zero cost to the consultant.

We are now rolling out our training academiesfor our nationwide consultant team in skin careand make-up application for our Skin D-Luxeand Scream & Pout ranges.

The starter kit costs £99 and contains morethan £350 worth of products, including tanningproducts, skin care, make-up, and bath and body.

Being supported by a well-establishedglobal brand like FakeBake, consultants alsobenefit from low costand zero risk as astart-up businessCraig Alexander-Wilson, Head of Strategic Development, FakeBake Beauty at Home

“By offering training and real career progression, says Craig Alexander-Wilson, Fake Bake Beauty at Home’s Head of Strategic Development

HOW CAN A BRAND MAKEITS DIRECT SELLINGBUSINESS ATTRACTIVE?

Q

A

Submit your questions for the next The Final Word column by tweetingCosmetics Business @cb_beautynewsusing #TheFinalWord

27 April 2015 cosmetics business news 12

TOP 4The best selling productsthrough Fake Bake Beauty at Home parties include:

1 Fake Bake 5 Minute Mousse2 Skin D-Luxe No Needles

Fine Line Eraser3 Scream & Pout Wonderwear

Foundation4 Dolce Dreams Lemon

Meringue Body Whip (pictured)

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