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1 Business Private equity investors eye up P&G beauty divestiture page 3 Copyright 2015 HPCi Media. This publication may not be distributed without prior permission. Retail Chanel pops up in Paris to promote No 5 fragrance page 6 Innovation Foreo s digital make-up artist page 9 Brands Fassett merges design and beauty page 10 twitter.com/cb_beautynews 25 May 2015 Issue 19 NEWScosmeticsbusiness.com Avon shares soar after hoax bid FAKE BEAUTY PRODUCTS FOUND TO CONTAIN TOXIC CHEMICALS The severity of counterfeit cosmetics trading has prompted the City of London Police to launch a campaign urging the public to wake up - don t fake up! Rat droppings, arsenic and human urine are the latest substances to have been detected in counterfeit beauty goods being sold online and delivered to consumers in the UK. Brands such as MAC and Urban Decay seem to be repeated targets of counterfeit traders looking to cash in on big names. However, some of these products have been found to contain potentially toxic levels of chemicals such as arsenic, lead and mercury, that could put pregnant women and their babies in danger. The hygiene aspect of the operations has also come to light, leading to cases of cross contamination with rat faeces and urine. As a result, the City of London Police has launched a campaign encouraging consumers to heed its slogan: wake up - don t fake up. In the UK, it is estimated that consumers spend at least 90m every year on counterfeit goods, with fake beauty products on the rise. Online marketplaces are being identified as hotspots for such activity; it can be hard for consumers to identify if a product is fake or not, as stock images of well-known products are often used. Det Supt Maria Woodall, who oversees the Police Intellectual Property Crime Unit (PIPCU) at City of London Police, said: Many people don t know about the real dangers counterfeit beauty products pose to their health. Criminals In the UK, it is estimated that consumers spend at least 90m every year on counterfeit goods, with fake beauty products on the rise are exploiting every opportunity to fool customers into buying counterfeits in order for them to make some quick cash putting people s health, homes and lives at risk. Beauty products are meant to enhance your features. However, the fakes can in fact do quite the opposite. Our general rule is: if it seems too good to be true then it probably is. In the last 18 months, the PIPCU has seized more than 3.5m of counterfeit items. Direct seller Avon has been thrust into the spotlight after it appeared to receive a bid from a mysterious company for near three times its market value. The bid appeared to have been submitted by PTG Capital Partners via a US Securities and Exchange Commission filing, offering $18.75 ( 11.95) per share to buy Avon. However, the bid was shrouded in suspicion from the outset as further checks revealed PTG Capital Partners did not appear to exist, while its UK-based telephone number only had a voic option. Furthermore, the filing that was submitted was littered with mistakes. At points, PTG Capital Partners referred to itself as TPG, which is a legitimate private equity company based in Texas. TPG consequently said it was completely unrelated to PTG Capital Partners. Avon was quick to shut down speculation from its end. In a statement, it said: Avon reports that it has not received any offer or other communication from such an entity and has not been able to confirm that such an entity exists. As a result of the incident, shares in Avon rocketed by 20%, peaking at $8. However there was a halt in Avon s stock three times on the day the filing was submitted, due to volatility following the initial coverage. A total of 50 million shares are said to have changed hands. The latest incident comes at a difficult time for Avon, which has been wracked with bribery fines and is rumoured to be considering closing its North American business. 25 May 2015 cosmetics business news 1

2 business NEWS CONTENTS Business: Wudhu-friendly nail polish presents new opportunities 4 Trends: CBN takes a look at the global body care market 5 Retail: Chanel opens pop-up shop in Les 4 Temps, Paris 6 Expert Advice: Temple Spa s Liz Warom discusses brand unity 7 Digital: Sephora makes debut on China s JD.com 8 Innovation: Foreo tweaks digital make-up artist MODA 9 Brands: Elizabeth Arden teams up with Preen 10 People: Theo James for Hugo Boss 11 What s Trending?: CBN s panellists discuss body shaming in beauty 12 News Editor Lucy Copp Reporter Rachel Lawler Sub Editor Austyn King Freelance Correspondents Sarah 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 HPCi Media Limited Natraj Building, The Tanneries, 55 Bermondsey St, London SE1 3XG Editorial lucyc@hpcimedia.com Subscriptions juliew@hpcimedia.com Subscription Details The subscription includes full digital access to the cosmeticsbusiness.com website, as well as the weekly Cosmetics Business News and monthly Cosmetics Business Markets print magazines. HPCi Media Limited Articles published in this newsletter may only be reproduced with permission. The publisher accepts no responsibility for any statements made in signed contributions or in those reproduced from any other source. ISSN SALLY BEAUTY CONFIRMS ILLEGAL ACTIVITY Sally Beauty has confirmed that illegal activity has taken place through its payment card systems. The data breach marks the company s second security incident in just over a year. The professional beauty retailer and distributor recently released an update confirming the foul play, after concerns were raised last week. Chris Brickman, President and CEO of Sally Beauty Holdings, said: We believe it is in the best interests of our customers to alert them that we now have sufficient evidence to confirm that an illegal intrusion into our payment card systems FRAGRANCE OSCARS REVEALED A number of major fragrance players scooped prizes at the 23rd Annual Fragrance Foundation Awards 2015, often dubbed by those in the industry as the fragrance Oscars. This year, Yves Saint Laurent won the coveted title of Best New Female Fragrance for its scent Black Opium. Meanwhile, Best New Male Fragrance was awarded to Jimmy Choo for Jimmy Choo Man. Based on consumer votes, the People s Choice for Women award was won by Marc Jacobs for its Daisy Dream scent, while the People s Choice for Men went to Giorgio Armani and its fragrance Armani Code Ice. This year s Ultimate Launch award went to a celebrity fragrance StormFlower by Cheryl. Continuing in the vein of celebrity scents, the Best New Celebrity Fragrance was awarded to One Direction for You & I. Other aspects of the industry were also recognised, with campaigns, packaging and retail representing different categories. Jo Malone London took away the prize for Best New Media Campaign Female Fragrance for its Wood Sage & Sea Salt scent (pictured). Meanwhile, the Best New Media Campaign Male Fragrance went to Dior Homme Eau for Men. Knot by Bottega Veneta won Best New Design & Packaging Female Fragrance, and L Homme Idéal by Guerlain won Best New Design & Packaging Male Fragrance. Retailer of the year was awarded to Knightsbridge department store Harrods. has indeed occurred. However, we will not speculate on the scope of the intrusion as our forensics investigation is still underway. He added: Our customers are our top priority and we regret any frustration or inconvenience this illegal breach may cause them. I want to thank them for their patience and support as we continue to work hard to correct this issue. Brickman reassured customers that Sally Beauty is working diligently to address the problems. He confirmed that customers would not be responsible for fraudulent charges to their accounts, as long as they are promptly reported. Rumours circulate over Marionnaud store closure French perfumery chain Marionnaud is reportedly considering closing its store in the Chapeau Rouge shopping centre in Quimper, Brittany, due to a lack of footfall. It s no surprise it s difficult for us and complicated for everyone, the store s Manager, Julie Lejeune, told reporters from Ouest France newspaper. Lejeune would not say how much turnover the store, which employs three staff, was making, but said that she found herself in a delicate situation, due to lack of clientele and high rental fees. The newspaper estimates the monthly rental for the site at about u10,000. Marionnaud is thinking of closing our boutique, said Lejeune, but added: Will we definitely go? We don t know yet. This shop will not relocate at the moment, but maybe later. But in any case, it will not be downtown. The Chapeau Rouge shopping centre was constructed four years ago in the centre of Quimper, but Lejeune believes the Marionnaud store is suffering from its location in the semiopen-air walk-through leading to the centre. People don t come to us because they don t know that this entrance exists, she told Ouest France. Some phone to ask where to find us. It would have been better for the Chapeau Rouge to have an entrance at the Rue de Douarnenez to have better visibility on this high traffic axis. Sources for Ouest France believe that the closure is planned, but Marionnaud told CBN the company had no comment to make and that Lejeune had spoken without authorisation. Marionnaud already has two other outlets in Quimper, in the Géant Casino Cournouailles and Glann Odet shopping centres. 25 May 2015 cosmetics business news 2

3 business PRIVATE EQUITY INVESTORS EYE UP P&G In the latest update on P&G s beauty brand divestiture, private equity investors are now thought to be vying for a piece of the sale. If recent reports are accurate, potential suitors like Germany-based Henkel could be out of the running; the company was thought to be putting together a $7bn bid, but US media reports, citing undisclosed sources, point to a possible deal with private equity players including Clayton, Dubilier & Rice and KKR, formerly the Walgreen- Alliance backer, which ultimately quadrupled its money on its Alliance Boots buy-out. Lafley himself was a partner at Clayton Dubilier & Rice between 2010 and P&G CEO AG Lafley has indicated he is willing to sell 100 or so brands, potentially including Clairol, Wash & Go and Hugo Boss, in an effort to free P&G of its under-performing beauty brands; net sales for the company dipped 6% in the last quarter. However, hair care could be the target for some of the private equity operators with a price ticket of around $5bn. Goldman Sachs, meanwhile, is thought to be working on a sale of the Wella brand, with private equity players Advent International and CVC Capital Partners as possible suitors. So far P&G has announced plans to sell off 40 or so brands, and plans to confirm which brands will stay and which will go by the end of the summer. UBS Analyst Stephen Powers said that while P&G s beauty selloff is being engineered, he doesn t think the company is spending enough on advertising and promotions. NEWS IN BRIEF L Oréal is pushing ahead with its Share & Care Program, which it hopes will guarantee the best social practices in welfare, health, parenthood and quality of life at work for its employees across the 68 countries it operates in. The company plans, for example, to introduce a minimum of 14 weeks of maternity leave paid at 100%. Beauty e-commerce company Younique is expanding its global headquarters with a new on-site warehouse. The facility is set to process up to 30,000 product orders each day. Plans for another warehouse in the Netherlands have also been announced. The company is well-known for its Moodstruck Fiber Lashes and social-selling retail model. INTER PARFUMS FIRST QUARTER NUMBERS CAUSE SURPRISE There were some strong numbers for Inter Parfums in its latest financial statement. The fragrance operator claimed first quarter earnings were worth $10m last week, beating Wall Street predictions. US sales were substantially improved, rising 16% to $22.5m. However, European sales dipped from $102.3m this time last year to $86.7m. CEO Jean Madar said the European shortfall was partially down to the growing muscle of the US dollar, which has caused the euro to depreciate 20% against it. Madar s secondary explanation was last year s launch of Karl Lagerfeld s signature scents, which produced more than $13m in brand sales in the first quarter of 2014 compared to $2.5m in the current first quarter. Net income came in at 32 cents a share, rather than in the late twenties as expected by some. However, the fragrance partner for Karl Lagerfeld and Banana Republic only just failed to meet revenue expectations with income of $109.2mn, slightly below forecast. In a conference call with analysts, Madar said several new scents are shortly due to hit shelves, including Blossom from Jimmy Choo and a new fragrance from Van Cleef & Arpels. Of almost a dozen companies that cover the stock, Inter Parfums has received a consensus Buy recommendation overall. BWS Financial has set the bar highest with a $45 target price on the stock. Shares were worth $31.9 before going to press, below its $ week high but substantially above a $22.33 low. The company lost the Burberry fragrance licence in Sephora is said to be finalising details with Indian textile manufacturer Arvind Group regarding a management takeover of its Indian operations. Sephora first entered India in 2012 when LVMH Sephora s parent company negotiated a major retail deal with Genesis Luxury Fashion, based in New Delhi, which allowed the cosmetics company to operate under licence in the country. Now Sephora is said to be considering handing the reins to Arvind Brands & Retail, a subsidiary of Arvind. If the deal goes ahead, Sephora is expected to sever ties with real estate company DLF, which currently manages Sephora India. The deal would see Arvind take over management for the four Sephora stores that already operate in India s National Capital Region and in Pune, according to The Times of India. Arvind Group is headed up by Chairman and Managing Director Sanjay Lalbhai. US retailer Macy s has reported earnings of 56 cents per diluted share for the first quarter of 2015, a decrease on the same period in 2014, which saw earnings of 60 cents per share. The company also announced a 15% increase in its dividend on common stock and a $1.5bn increase in its share repurchase authorisation. Online gaming and cloud services company GigaMedia has entered into a letter of intent with a third party in relation to a potential acquisition of a controlling interest in a currently unnamed global cosmetics e-commerce company. With an annual net turnover of $200m, the cosmetics company is said to have over 700 brands and a distribution network covering major countries worldwide. India s male grooming market is predicted to boom by 17% through to 2020, according to a TechSci Research report. A key driver is thought to be the rising urban middle class population. In addition, as more small cities are also benefiting from increased distribution, the market is predicted to register high demand from tier II and tier III cities. 25 May 2015 cosmetics business news 3

4 business NEWS IN BRIEF Colour and skin care brand Beautycounter has seen sales surpass 1m units since its launch in Sales have grown 325% year-onyear since Q1 2014, and the company hopes to reach 2 million unit sales by the end of More than 8,600 consultants sell Beautycounter products in the US. The beauty brand offers BPA, pthalate and BHA-free cosmetics. Speciality chemicals company Lubrizol has announced that Active Organics will now be promoted under its Lipotec umbrella of brands. Lubrizol acquired Lipotec in 2012 to further support the company s strategy to improve its portfolio by adding high-performance, claims-driven ingredients based on synthetic peptides, biotech and molecular science. More than 25 Brazilian companies have registered to attend Beautyworld Middle East $15.5m worth of beauty and wellness products were imported into the region from Brazil in 2014, an increase of 20% from Other countries represented at the event included: Germany, France, Spain, the US and UK. The event is also celebrating its 20th anniversary this year. The 2015 Love Energy Awards are now open for entries to all types of businesses in the UK. Love Energy Savings, the company behind the green awards, is hoping to find and crown the most energysavvy businesses in the UK, recognising their dedication. Companies are being asked to share what they do to lower their bills. Separate categories exist for SMEs, start-ups, large businesses and individuals. The deadline for entries is 31 May. L Oréal has donated u150,000 to UNICEF following the earthquake in Kathmandu on 25 April. UNICEF is currently focusing on giving water and shelter to those that need it most, as well as providing other humanitarian aid. RUSSIAN CONSUMERS CONTINUE TO SPEND An under-pressure Russian ruble is not deterring beauty spending for many Russian consumers, if the latest sales results issued by Beiersdorf and Henkel are anything to go by. The Nivea and Schwarzkopf shampoo makers have both claimed robust sales strength in Russia for the last quarter. For months we have been expecting that it would get difficult in Russia, but in fact we are doing better than ever, Beiersdorf CEO Stefan Heidenreich is reported as saying in a conference call. The sales resilience is impressive, given that the euro appreciated by a third year-on-year against the ruble. Russia is being bruised and beaten on two fronts: firstly it is being affected by the plunging price of oil, and second the western sanctions over the ongoing Ukraine tension. Overall, Beiersdorf saw strong 9.9% growth in Eastern Europe, offset by a 2.1% decline in sales in Western Europe. This performance is more remarkable when contrasted and compared with WUDHU-FRIENDLY NAIL POLISH PRESENTS OPPORTUNITIES Nail varnishes are becoming popular with a new demographic, after the development of several wudhu-friendly products. Many Muslim women choose not to wear any nail varnish as it is considered inconsistent with wudhu the ritual washing performed before prayer. Polish creates a physical barrier on top of the nails, preventing the required water from cleansing them. But a number of alternative products are changing this. Safe N Beautiful has created a range of six water-based varnishes. Free from harmful chemicals and allergens, the polishes can be removed with soap and water before prayer. Jeanette Sklivanou, Founder of Safe N Beautiful, believes the product is also appealing to consumers who are concerned about the chemicals in nail varnishes: Women are more carefully considering the safety and eco-friendliness of their cosmetics. And, with time a precious commodity, women are also seeking ways to simplify their beauty routines. Previously, wudhu-friendly nail varnishes have focused on being water-permeable, allowing the nail to be washed in preparation for prayer. US brand Acquarella produces water-based nail varnishes, also with a primary focus on more natural cosmetics. Mark Deason, Managing Member and Owner, told CBN: Our products have always been compliant but we didn t know until about five or six years ago. Canadian brand Tuesday in Love also produces water-permeable polishes. Executive Vice President Farah Katchi told CBN: We want Muslim women to be able to use nail polish while maintaining their religious practices. that of Swedish player Oriflame. The direct seller has upped prices to cope with the ruble s devaluation and sales have stumbled. It is believed that Oriflame makes up to 50% of its sales from the Russian market. The overall market conditions remain very volatile in the CIS region, despite the recent strengthening of the ruble, and we have seen a slowdown in Russia, said Oriflame CEO and President Magnus Brännström. In the quarter, we have implemented significant price increases, which have had short term adverse effect on the volume. Second quarter profits plunged to u22m from u29.4m. The Russian sanctions are not just negatively affecting the Russian economy but also impacting the export capacity of Germany, in particular. Despite the tough external pressures, the Russian stock market has been a strong performer and interest rates are coming down while the ruble has started to rise. Mally Girl is currently seeking a buyer and has issued a bid deadline of 3 June. The Baltimore-based colour cosmetics brand, founded by Mally Roncal in 2005, generated more than $30m in annual sales last year. The company has an international presence with over 400,000 customers regularly buying products. Mally Girl products currently retail through QVC and Ulta Beauty stores, as well as on its own website mallybeauty.com and via other e-commerce partners such as beauty.com. Distribution of the products is completed from a leased 50,000sqft warehouse near Baltimore. Roncal herself has built up a social media empire over the past decade and now has approximately 46.7K followers on Twitter and 60.3K followers on Instagram (correct at time of going to press). Over 1,000 colour skus are currently produced by the brand, with products including lipstick, lip gloss, nail polishes, highlighter and bronzer. 25 May 2015 cosmetics business news 4

5 trends MARKET REPORT PREVIEW ASIA: BODY CARE S SLEEPING BEAUTY WAKES UP This week s Trends page provides a preview of the June issue of Cosmetics Business Markets, which will focus on body care. The body care category might not appear as dynamic as its headline-grabbing cousin, facial skin care, but it remains in fine shape, particularly in Asia. Various sources estimate the global body care market to be worth around $16.5bn. The US continues to account for the lion s share of sales with a value of $2.943bn in 2014, according to Mintel. The US is in fact 2.6 times the size of the second largest market, Germany, worth $1.153bn, or Brazil, the third largest, worth $1.152bn. China takes fourth place with sales of $1.086bn and, as Mintel s infographic shows (right), the country is also the third fastest growing country in the world, with a CAGR of 12.4% over the last five years. France comes in fifth place with a value of $825m in But overall, Asia is experiencing the most dynamic activity. Indonesia s body care market has rocketed by 21.2% over the past five years, while India, Vietnam and South Korea are also experiencing double-digit growth rates. So how will the landscape evolve over the coming years? David Tyrrell, Global Skincare Analyst at Mintel, said: The US will remain the most important market for sales of body care, but the growth engine for the category is and will be Asia, fuelled by the region s burgeoning consumer class. Indonesia is expected to be one of the top body care markets in 2017 and a high growth market. WHAT S GROWING? Indonesia is the fastest growing body care market in the world, followed by India then China CAGR (%) last 5 years. Source: Mintel 25 May 2015 cosmetics business news 5

6 retail NEWS IN BRIEF Two thirds of workers in the retail sector would not report a serious data protection breach to their employer if they thought it would get one of their colleagues into trouble, new research by telecoms company Daisy Group has revealed. The study showed that 10% of retail workers had disabled password protection features on their laptops or mobiles because they found them annoying, while 47% who did have password protection said they didn t change their passwords regularly. US retailer Nordstrom is said to be hiring 1,000 employees to work at its new Pacific Centre store in Vancouver, Canada. The store, which opens on 18 September, is the retailer s third location in Canada. Applications are currently being accepted. Chris Wanlass, Store Manager for Nordstrom Pacific Centre, said that he is eager to assemble his team and is looking forward to hiring people who love fashion and have a genuine interest in taking care of the customer. Macy s has announced the locations of its first four pilot stores of its new offprice business. The stores will open in New York City in the autumn and will sell clearance goods from Macy s stores as well as other brands with discounts between 20%-80%. The stores will be called Macy s Backstage and represent a key growth initiative for the company. The stores aim to deliver a whole new level of value to customers, said Peter Sachse, Macy s Chief Innovation and Business Development Officer. French lifestyle brand Lalique has named Netherlands airline KLM as Best Travel Retail Partner The newly created award aims to acknowledge the professionalism of the brand s partners in travel retail. Lalique s travel retail and in-flight sales are a growing platform for the brand, particularly in its fragrance division. Chanel is promoting its No 5 fragrance in the Dôme concourse of the Les 4 Temps shopping centre in La Defense, Paris until 31 May. The company has set up a pop-up shop in the centre of the concourse, featuring huge bottles of the perfume, where visitors can receive free sprays and consultations. The entire concourse is surrounded by giant screens, the Digital Dream display, which is showing an animation in Chanel s colours of black and white featuring bottles of fragrance and the Chanel logo to a background of Lo-Fang (Matthew Jordan Hemerlein) singing a slow, dreamy version of the song You re The One That I Want. Digital Dream, conceived by Parisian design studio Moving Design, makes use of banks of LEDs. The main screen covers three storeys of the department store and is 16m high and 3.6m across. In addition there are two circular screens that run right around the concourse. One is 1.2m deep and 47m long, and the other is 2m deep and 63m long. The 250sqm of screen is one of the largest indoor digital displays in Europe and the overall effect is one of being immersed in moving advertisements. Digital Dream shows 20 hours of continuous advertising per week, alternating with artwork. Chanel is sharing the space with an animation based on the theme of Paris by night. JO LOVES LAUNCHES IN-STORE BESPOKE CANDLE STUDIO Jo Loves has debuted a creative studio that allows customers to design a bespoke fragrant candle from a selection of different scents in store. The creative Shot Candle studio, which sits at the back of the Jo Loves store in Elizabeth Street, London, has a selection of base scents and shots for customers to choose from. The bespoke options include: Mint Mojito, Charcoaled Lemons, Tahitian Gardenia, Lemongrass, Fig Trees, Mango and Petitgrain. The base of the candle, which contains the base and the top scent with the shot scent, are then blowtorched together into one candle. Jo Malone, Founder of Jo Loves, said: The Shot Candle concept was originally inspired by a chance moment when I had the idea to create a bespoke candle that combined not one, but two fragrant moments. It s the first time that I ve designed a product that invites customers to become part of the creative process. Superdrug s 100 new stores Superdrug has unveiled major new expansion plans. Over the next three years the high street chain will open 100 new stores across the UK, with a focus on London and the South East. While our online offering continues to grow, our high street presence is still of huge importance and we are looking forward to growing the portfolio, Nigel Duxbury, AS Watson UK Property Director, explained. The announcement comes after Superdrug launched two new store formats last year: Beauty Studio stores, combining premium beauty products with services including in-store salons and nail bars; and Health and Wellbeing, focusing on health for the modern customer. By the time the plans are complete, Superdrug will have over 900 stores in a range of formats. The company is already in various negotiations to secure additional sites accommodating retail footprints from 2,000sqft-5,000sqft, dependent on store location and category. 25 May 2015 cosmetics business news 6

7 expert advice TAKING BEAUTY FROM SPA TO SKY Temple Spa has moved from store to spa to airline, all while retaining a consistent brand message, as Founder Liz Warom explains Can you describe the process Temple Spa went through to become stocked in Harrods and Selfridges? Acquiring space within luxury retailers is easier said than done. We believe wholeheartedly that the first hurdle is a good honest relationship with shared values and a desire to excite and inspire the customer. At Temple Spa we believe that customers or guests increasingly desire and crave more: more luxury, more me time and more feel-good. That s what we focus on and our customers do too. How does this process differ when being stocked in spas, hotels or by airlines? Understanding the needs of a customer in a given place or situation is critical, whether on a therapist s couch, in an airline seat, getting ready for bed or just living life. At Temple Spa we are creative thinkers: we develop and recommend products for the right need and desired outcome for the user. We take each potential customer, whether they are an airline, spa, hotel or luxe retailer, individually and tailor our product offering to suit them. For example, the Orient Express doesn t have showers, so our Take a Grip Dry Shower in a Bottle was perfect. Our products are for real lives, making us a brand that takes wellbeing seriously. 27,500 The number of people that experience Temple Spa in a spa, in the air, in a hotel room or in their own home every day Are there any restrictions with regard to formulations available on board aircrafts? Our products are distributed on many airlines, primarily in first and business class. Safety on board is critical and compliance is a main selection criteria for airlines. For us, it s important that the product actually helps wellbeing during the flight. For example, passengers can massage our Aaahhh! Foot & Leg Treatment Balm into swollen, hot ankles to provide instant relief and help to reduce puffiness. This provides a really wonderful, feel-good sensation. A consistent brand message is critical. Ours, simply and clearly, is this: preserve skin, body and soul Liz Warom, Founder, Temple Spa TOP 5 Temple Spa s top selling products: 1 Skin Truffle 2 Truffle Noir 3 Repose 4 Exalt 5 Bosom Pal Do different retail channels create differing consumer shopping habits? Our heroes remain our heroes in all our channels. These include: the award-winning Skin Truffle, a celebration for the skin; our gorgeous Repose Resting Cream; our powerful Be Firm Ultimate Lifting Serum; and The Big Reveal, a 60-second facial, to name a few of our winners throughout. Whether in spa, store, home or online, customers seek products that deliver and solve their concerns but are also a pleasure to use. Can you tell us more about your independent consultants and their franchises? We have a passionate network of lifestyle consultants who will bring a spa to your private home we call this Spa To Go. Our Spa wherever you are mantra is central to all we do in every channel and Spa To Go emulates this brilliantly. If you can t get to the spa or one of our luxury retailers then worry not. We ll bring our pop-up Spa To Go boutique right to you and your friends. Everyone participates and earns how to take care of their skin, body and soul through advice and application techniques, all in the comfort of your own home. Customers can choose from four classes: Skin Therapy, Spa Experience, Masterclass and Red Carpet Studio. What kind of support do you offer to your consultants in terms of training/education? On joining Spa To Go you have many choices as a lifestyle consultant running your own business of just you and being part of a team, or you can choose to become a manager and build a team. The opportunities are vast, and whatever you choose Temple Spa will equip, train and support you in every way to achieve your goals, however big or small they may be. We run training sessions at all times covering product, class techniques, organisation and up-skilling, and of course manager training, which we call Aspire. Access to training materials through our online education centre and access to our passionate training team also ensures our brand is delivered with passion and credibility. How important it is to convey a consistent brand message throughout your channels? A consistent brand message is critical. Ours, simply and clearly, is this: Preserve Skin, Body and Soul. We believe that your body is a living temple and you should honour it, enjoy your life and live it to the full. Our brand is delivered with chit-chat and fun, the kind of conversation you might have with a girlfriend and so, while we absolutely have the most up to date, high-tech and high performance actives and raw materials, we still believe that people want to know how to use a product and what it s going to do for them, rather than being cited words no one can say, let alone understand. We adopt this in every channel and it works. 25 May 2015 cosmetics business news 7

8 digital NEWS IN BRIEF The specialists behind LoveLula have created a new website dedicated to male grooming products that are environmentally friendly. Consumers will be able to purchase products from established brands, such as REN and Dr Hauschka, as well as growing names such as Elements and Preserve. Cosme.com, a Japanese beauty portal and the e- commerce arm has launched an English language version of its website. The new site is stocked with almost the same number of items as the Japanese site. The company is offering the first 2,000 members registered by the end of May 500 shopping points to celebrate the website s launch. SEPHORA SETS UP SHOP ON CHINA S JD.COM Making its first foray into China s e-commerce market, Sephora has launched on website JD.com. The move will see more than 1,200 products from over 70 brands retailed via a Sephora store on the website. Sephora s brands include international and smaller names such as Dior, Guerlain, Benefit and Kenzoki. Anne Veronique Bruel, President of Sephora Asia, said: Sephora is dedicated to providing the best, most trusted beauty solutions for our customers, while making shopping more efficient, intelligent and fun. That s why we are delighted to be partnering with Chinese e-commerce pioneer JD.com, which is known for its superior customer service, fast nationwide delivery and long standing reputation as the online source for guaranteed product authenticity. Sephora is renowned for its beauty solutions from the world s best brands. I am confident that together we will be able to provide Chinese consumers with a truly world-class online shopping experience, without having to worry about counterfeit products. Haoyu Shen, CEO of JD Mall, added: JD.com s beauty channel is focused on providing the highest quality products and services and we are very excited to offer Chinese consumers access to leading beauty solutions from Sephora, one of the world s top retailers. JD.com is the largest online direct sales company in China. It provides same-day delivery in more than 130 counties and districts across the country, and next-day delivery in more than another 850 counties and districts. Shaving brand Wilkinson Sword recently hosted an exhibition that celebrated the 15 most iconic leg moments from pop culture history. The LEGS-hibition event was held at the Darren Baker Gallery in London on 21 May and featured a wide array of women, from sixties model Twiggy to pop singer Taylor Swift. Glasses Direct, the UK online retailer, has launched a virtual 3D fitting tool that allows consumers to try on different styles of glasses before committing to buying them, a concept that could provide inspiration for those in the beauty industry. The Ditto tool gives consumers the chance to test out more than 500 different frames on a virtual image that is captured through a webcam. The end result is a 180 view of what the glasses would look like. Hairfinity has aired a twominute film that aims to provide an insight into the brand s founder and her relationship with her daughter in the run up to Mother s Day in the US. The film is called They Learn From You and explores childhood experiences with hair. It can be viewed on the brand s YouTube channel. The concept of omnichannel selling will shape the future of beauty retail, according to Stephane de la Faverie, Senior Vice President and Global General Manager of Origins, Ojon and Darphin. In an exclusive interview, de la Faverie told CBN that beauty brand Origins plans to adapt its strategy in line with the trend for omnichannel retailing, allowing consumers to discover the brand at a counter in-store, online at home or through a mixture of both, such as having a mini treatment in-store then buying when back at home. De la Faverie said: Omnichannel is the future of retailing. We need to answer the need of the consumer. The consumer wants to have it easy, they want to spend time in-store at the counter [and] they want to be able to have the product at home. In the future, there will be services that allow consumers to order online and pick up in-store or order in-store and have it delivered at home. We have to be really flexible in the future. Read more at cosmeticsbusiness.com Kenyan beauty bloggers hone in on natural trend On par with other major cosmetics markets around the world, young fashion-conscious Kenyans are increasingly turning to beauty blogs for an upate on current beauty trends and tips. However, Kenya s beauty blogging community is beginning to focus more on locally-made, natural cosmetics and brands giving their audiences more of what they appear to want. Blogger Lucia Musau has 11.3K followers on Instagram and 38K likes on Facebook. In an average day, blogs similar to Musau s can generate 30,000 hits or more when blogging about skin care or hair care. Sally Wanjiru, Content Assistant at Lucia Musau, said: Current cosmetic trends are always changing and Kenyans are smart people; they scour the internet and if you give them the wrong information they will think you are not a pro. Meanwhile, Musau added: You have to give people what they want, the way they want and when they want. Talking about the growing trend for locallymade cosmetics, Tony Wahome, an IT Expert from the Kenyan Blog Awards, said: If you look at Pauline Cosmetics, a local firm started by a female entrepreneur, you will understand that Kenyans appreciate local brands. He explained that natural brands in particular are gaining popularity, such as Kono Skin Care, which makes products containing natural oils, extracts and butters; and Pauline Cosmetics, well-known for its hero Lip Gloss product, as well as its mascaras made from natural resources. 25 May 2015 cosmetics business news 8

9 innovation FOREO MAKES FINAL TWEAKS TO DIGITAL MAKE-UP ARTIST Swedish brand Foreo is making final changes to MODA, the world s first digital make-up artist, which is designed to replicate celebrity make-up in just 30 seconds. Currently in the concept stages of production, the device uses 3D printing and facial scanning technology, and aims to provide a solution for women who spend lots of time trying to recreate make-up looks via how-tos and social media. MODA includes an integrated smartphone app, which allows consumers to select, customise or upload a beauty look from any social media or website for the device to replicate. The device then applies an FDAapproved mineral make-up ink to the face in a speedy 30 seconds. Justin Wang, Foreo s Vice President of Communications, hinted that developments were being made to the prototype and that a new version is in the pipeline. He said: The product is still in prototype stages and we are continuing to implement improvements to the design in fact the feedback we ve received from this initial concept release will go a long way to help us improve the next version. Foreo has already caused a stir in the cosmetics and dental sectors with the launch of its LUNA and ISSA products. Foreo Chief Product Engineer Zachery Bobbin discussed the brand s latest product concept: We are excited to showcase our next breakthrough in beauty. The MODA has been in the conceptual stage for a number of years, but with the recent rapid expansion of 3D printing mechanics, only now is the technology finally sophisticated enough to meticulously apply and print even the finest make-up details safely and accurately with precision. INGESTIBLE SKIN WHITENING PRODUCT TAPS INTO MALAYSIA S HALAL MARKET Causing a buzz in the skin whitening market, Qu Puteh has entered Malaysia claiming to lighten skin by 45% in seven days, while adhereing to Halal guidelines. Unlike the majority of skin whitening products, Qu Puteh owned by Vita Beauty is an ingestible powder, rather than a cream, and claims other benefits such as the ability to fight against ageing and prevent respiratory infection due to the inclusion of the main ingredient and antioxidant glutathione. Aileen Lee, Trend and Innovation Consultant at Mintel in Southeast Asia, told CBN: There are three main streams of consumers of whitening products in Malaysia Chinese, Malay and Indians. Qu Puteh is targeted at Malay consumers, as its formulation is Halal. The brand has chosen its timing well: The average growth for the topical facial whitening product market in Malaysia is approximately 12%, Lee said. Qu Puteh is not the first ingestible skin whitener, however. Qu Puteh s main competitor is Aura White, she added. The reason why Qu Puteh is the talk of the town is because the creator spent millions promoting the product in singing competitions in Malaysia. She also had a famous Malay actress fronting her product. She added: Asians are obsessed with skin whitening historically it s associated with class and notions of beauty... there will always be a market for it. As for ingestible skin whitening products, currently it is all the rage in Malaysia. SUPPLIERS NEWS A MINI MASTERPIECE MeadWestvaco (MWV) has unveiled its latest innovation, MiniMod. The airless pump and pouch dispensing system uses a button acuator and features a flexible pouch that is available in 25ml and 40ml sizes, while it can also be customised to a different shape or volume. The product is said to work well with low-tomedium viscosity products, such as skin or hair creams or lotions. PUTTING A LID ON IT Corpack has launched a twopiece compact that is said to demonstrate the perfect union of lid and base. The Avalon- Compact-Line is currently available in two sizes, and line extensions are slated to follow. The new model features a lid innovation whereby the bottom side of the lid disappears in the base of the compact; when it is closed a thin portion of the lid can be seen. Read more at cosmeticsbusiness.com CHALLENGE ACCEPTED Lifestyle brand Joules recently selected Spectra Packaging for its new range of hand and body lotions and washes. The products come packaged inside Spectra s Flat Base Boston Round pump bottles, with 12 different designs produced. The bottles were custom-made to feature a design similar to Joules range of home fragrance products. As well as replicating transfers on glass, the bottles feature text print that can be seen through the clear product. Gary Allard, Field Sales Representative at Spectra, said: Joules has very specific bespoke colour combinations, which have to be strictly adhered to. Colour is extremely important to the brand, which is why replicating transfers on glass with 4 pass silk screen printing on flexible plastic is hugely challenging. SPECIAL EFFECTS Mega Airless presented a new generation of lacquers for its standard dispensers at the 2015 Cosmopack Bologna. In the vein of its Soft Touch varnish, the lacquers offer a range of effects from rough stone and wet effects to crackled or fissured effects. Read more at cosmeticsbusiness.com SHAKIRA, SHAKIRA Glass bottle manufacturer Gerresheimer was chosen by Puig for its new Shakira scent. Rock! by Shakira is housed inside a bottle that is meant to resemble an electric guitar and will be on display at the Cosmetic Business show in Munich on June. 25 May 2015 cosmetics business news 9

10 brands NEW PRODUCTS 1 ELIZABETH ARDEN has teamed up with British fashion brand Preen once again to bring a designer gift to consumers. When a consumer buys two or more of the brand s products between 21 May-13 June, they will receive a free designer bag by Preen, as well as seven of Arden s products (worth 88) including: Prevage AA Treatment Boosting Cleanser, Ceramide Flawless Future Serum and Flawless Future Moisture Cream. 2 COLLECTION has brought out some new colour launches that are designed to help consumers achieve a radiant complexion. Speedy Blush Sticks ( 3.99) come in three shades, Tickled Pink, Cheeky and Pinch Me, and are said to be easy to blend, quick to apply and perfectly portable ; they are packaged inside a chunky stick. Meanwhile, Gorgeous Glow ( 3.99), a powder palette bronzer, comes in both Blush Block and Bronze Block. Read more at cosmeticsbusiness.com 3 PANTENE PRO-V has launched a product to help protect hair from over-exposure to the sun. Perfect Hydration UV Protection Spray ( 6.99) joins the brand s two other Perfect Hydration products, a shampoo and conditioner. The spray is said to provide both advanced UV protection and instant hydration benefits for hair; it contains a unique ingredient to help shield hair from sun damage within a double-phase formula that is designed not to weigh hair down. 4 PERCY & REED has been busy innovating around the trend for hair primers. New to the market is Wonder Prime Light ( 18), which is said to provide the prepping and priming benefits of Wonder Balm in a lightweight spray-on leave-in lotion format. The product is designed to provide a foundation for styling, with detangling, heat protection and overall nourishing benefits. In addition, it is also 4 said to give gentle hold and definition to styles. Read more at cosmeticsbusiness.com 5 THAMEEN, a British luxury fragrance house, is due to rollout a scented hair fragrance for the summer. Thameen Hair Fragrance ( 85) is scented with the brand s Amber Room fragrance, inspired by the eighth wonder of the world, the amberlined room at the Catherine Palace of Tsarskoye Selo near Saint Petersburg. The scent features bergamot, Turkish rose and amber. Besides fragrance, the product also contains keratin for strengthening and protective benefits, as well as honeyquat, a quaternized conditioning agent made from honey. Read more at cosmeticsbusiness.com 6 KAFFE FASSETT has unveiled a Bath, Body & Home Fragrance Collection ( 4-25). The range, Achillea, is inspired by the designs of American-born artist Kaffe Fassett and each product is presented in brightly coloured packaging. It is said to be the first time Kaffe Fassett design is interpreted through scent and nature s science. The products, which are made in England, include: Restore Hand Cream, Hydrate Body Lotion, Cleanse Hand Wash, Eau de Toilette Roll-On, Scented Sachet and Scented Drawer Liners. All of the products are based around notes of bergamot, orange blossom, musk and oleander. 7 MORGAN TAYLOR is taking inspiration from Japanese street style for its latest launch, Hello Pretty!. The collection features six nail polishes in bright colours including: Do You Harajuku, a mint green; Look At You, Pink-achu!, a bubblegum pink; Anime-zing Color!, a dark purple; Tokyo a Go Go, a light purple; Pop-arazzi Pose, a hot pink; and Manga-round With Me, a coral pink. The new colours come in separate nail lacquers ( 4.75) as well as in duo packs ( 9.50) and mini packs ( 9.95). 8 MACADAMIA PROFESSIONAL has debuted a new Care and Treatment Line ( ). The line consists of three ranges that aim to infuse moisture into any hair type. All of the products contain Macadamia s Pro Oil Complex and Argan oil. The collections include: Weightless Moisture, Nourishing Moisture and Ultra Rich Moisture May 2015 cosmetics business news 10

11 people Hollywood actor and star of the Divergent film series THEO JAMES has been announced as the face of the new advertising campaign for BOSS PARFUMS. The new masculine scent from Hugo Boss, which has not yet been named, is described by the brand as uniquely captivating and is said to offer customers the ultimate luxury experience in fragrance. Speaking about his appointment, James said: I m honoured to be representing Boss Parfums as an Ambassador in their latest perfume campaign. I admired Boss for a long time for achieving the perfect balance between the classic and the contemporary. This campaign encapsulates the iconic spirit of the brand and reflects my own tastes and attitudes towards a truly unique fragrance. THE LATEST APPOINTMENTS ELIZABETH ARDEN has announced previous VP Sales Europe and General Manager of Nordic, PALLE PEDERSEN, as its new General Manager in the UK and Ireland. Pedersen has previously worked for Esteé Lauder and L Oréal and will now oversee Arden s new creative campaign launching in September. LAURA GELLER BEAUTY has announced that retail industry consultant DEBBIE MURTHA has joined the brand as a member of its board of directors. Murtha has worked in the industry for more than ten years, serving as Senior Vice President and General Merchandising Manager of both Macy s Merchandising Group and May Merchandising Company. SANDRA GARDINER has been named as TRIA BEAUTY s new Chief Financial Officer. Gardiner will take leadership of the company s global finance, accounting and information technology functions, and has previously held C-Level financial management positions at companies including Asante Solutions, Ventus Medical, Vermillion and Lipid Sciences. NOMAD TWO WORLDS has announced Namibian supermodel and personality BEHATI PRINSLOO as the first face of Raw Spirit Fragrances. The range is set to include ten fragrances, created in support and with the cooperation of indigenous communities in Haiti, Australia, the US and other locations worldwide. Prinsloo has previously modelled for Victoria s Secret. POPPY DELEVINGNE has been named as the first ambassador for luxe fragrance brand JO MALONE. The international model and designer is being called the Jo Malone London Girl as she is said to embody the brand s spirit of sophistication, originality, wit and hospitality. FEELUNIQUE has announced that Content Director NEWBY HANDS will be stepping down from her role later this summer. Hands joined the online premium beauty retailer in 2012 and has played a key role in shaping the way the brand thinks about content. Feelunique has confirmed that it will announce a successor for the role in the coming weeks. 25 May 2015 cosmetics business news 11

12 what s trending? WOULD BODY SHAMING IN BEAUTY PAY OFF? The beach body ready backlash has propelled Protein World s brand name to new heights. But was it worth it? In just three short weeks, Protein World s Are you beach body ready? campaign has had quite an impact. With a series of billboards and posters displayed across the London tube network, the company created one of the most memorable adverts in recent years. But its message was certainly divisive. More than 50,000 people felt the campaign was body shaming women, signing a petition asking for the adverts to be removed. Others, however, praised the campaign for encouraging people to reach their dieting goals, and the brand claimed to have received a 1m boost to its business. After 360 complaints were made to the Advertising Standards Agency (ASA), the company was told that the ad cannot appear again in its current form due to concerns about a range of health and weight loss claims. But the debate has raised a key issue about advertising and it s particularly relevant for the beauty industry. Since 2004, Dove has been campaigning for real beauty with a series of body-positive adverts, receiving a largely positive reaction from customers and commentators. And the trend seems to have spread, with Always debuting its #LikeaGirl campaign earlier this year. But can these adverts rival the beach body ready message in terms of financial gain? Or should brands be conscious about the impact of their messages beyond sales? Join the #whatstrending OVER TO THE PANEL Women tell us they ve grown out of responding to campaigns that create paranoia, fear or envy. They re looking for messages that recognise that beauty is individual, diverse and a moving feast! For me, successful campaigns talk to women in a modern way, reflecting that rather than promoting a homogeneous ideal. It s vital we encourage younger women to see it that way too. Jayne Mayled Founder of White Hot We re in the personal care business and it doesn t get much more personal than products you rub into your skin. I m a believer in self-help, but self-improvement shouldn t make you feel bad. I want women to feel good about themselves with positive language and real know how. Sian Sutherland Founding Partner of Mama Mio and Mio Skincare There is such a thing as bad publicity. While attention for all the wrong reasons may grab headlines, it is better long term to generate a positive emotional response, not to be known as that sexist brand or the one that s always in trouble with the ASA. Dove s Sketches campaign, for example, continues to resonate positively. I know what I d prefer my legacy to be. Julia Wray Editor of SPC, CBN s sister publication 25 May 2015 cosmetics business news 12