News for personal care business professionals

Highlights

China’s Millennials Fall In Love With Black Tech Beauty Products

Skincare trends, referred to by industry observers as “black tech”, are becoming popular among millennial consumers in China. Three of the leading black-tech product categories are black-tech facial machines, with the ReFa Electronic Roller from Japan as a leading example; black-tech facial cleansers, such as those from Foreo; and black-tech massage boosters, including those from the SK-II brand. Facial rollers from ReFa accounted for 50 percent of the segment’s revenue in 2017, with more than $4 million worth of ReFa machines sold during the November 11 Singles Day shopping festival. Foreo’s facial cleanser became a social media favorite, with many celebrities posting themselves using the product. SK-II launched a massage booster in 2017, selling all of its 10,000 units during the company’s 2017 TMALL Super Brand Day event.[Image Credit: © ReFa USA]

Samsung Joins Estee Lauder To Host 2018 Style Dimension Fashion And Beauty Event

Samsung and beauty giant The Estee Lauder Cos. Inc. joined forces to host the 2018 WWD x Samsung Style Dimension, an industry event highlighting the use of immersive technologies in creating consumer experiences. Held on September 6 and 7, the event also focused on industry trends involving the integration of beauty, fashion, and technology. Unlike its previous editions, the 2018 Style Dimension allowed those who attended the event to buy all the beauty brands on display and to interact with pop-up displays enabled by Samsung’s technologies.[Image Credit: © Estée Lauder Inc]

Aesthetic Hydration Cosmetic Opens Shanghai Pop-Up Store, Marks Coming Into China Market

South Korean skincare brand Aesthetic Hydration Cosmetic has unveiled a pop-up store in Shanghai, marketing the company’s official entry into China’s beauty care market. According to AHC, its cosmetics products are being sold at health and beauty stores across China, as well as in online shopping malls in the country. With the pop-up store offering customers the chance to experience the company’s leading products, AHC said it will target women in the country with its leading moisturizing products.[Image Credit: © CARVERKOREA]

Brands Add Artificial Intelligence, Sensors, Other Technologies To Skincare Devices


Beauty brands are integrating technologies, including artificial intelligence, sensors, and Internet of Things, into their skincare devices designed to provide consumers with personalization and tailored information about their beauty care routines. Brands have their respective approaches to customization and consumer education, with Neutrogena, for example, developing products that come with sensors and cameras to offer consumers information on the health of their skin. For its part, Foreo has launched the Luna FoFo AI-enabled skincare device, while Clarisonic has introduced its Mia Smart facial massaging device.[Image Credit: © FOREO]

Glossier CEO Weiss Sees No Chance For Her Company Working With Amazon

Emily Weiss, founder and CEO of ecommerce beauty startup Glossier,said her company will never sell on online retailer Amazon's platform. Established in 2014, Glossier has received $87 million in venture funding, enabling it to create a beauty brand popular among women. Weiss said other ecommerce companies can grow outside Amazon's shadow and that the user experience offered by the online retail giant “may not be the best fit for beauty and fashion products”.[Image Credit: © Glossier Inc.]

Jurlique Collaborates With Tryzens To Launch New Digital Platform With Improved User Experience


Australia-based skincare brand Jurlique has partnered with ecommerce technology company Tryzens to launch a new digital retail platform. In 2016, the brand first launched its digital platform; its partnership with Tryzens aims to improve its customer experience and offer new ecommerce capability for shoppers.[Image Credit: © Jurlique]

Subscription Model Dominates Ecommerce, Offers Benefits For Businesses And Their Customers

In 2017, the subscription model accounted for 75 percent of online sales and continues to grow at a steady rate in 2018. In the first half of 2018, the market saw a huge move toward subscription-based retail. At its early stage, the subscription-based model were driven by Netflix and Spotify, platforms used by consumers to pay for entertainment instead of buying physical media. Subscription-based business offers several benefits for consumers, including saving money, saving time, and access to wide collections of products. For businesses, the model offers advantages, including predictable income, price control, and data collection.[Image Credit: © BiljaST]

Avon Launches Online Training Program For Sales Training Teams


Avon announced the launch of Digital Innovation University, the direct-to-consumer beauty brand's digital training program for its Sales Training Teams. Developed in partnership with digital experts, the training program is available online. It comes with three modules and runs for three months.[Image Credit: © Avon Products, Inc.]

Voice-Based Commerce Offers Brands New Means Of Differentiating Themselves

To differentiate themselves from competitors in voice-based commerce, consumer packaged goods companies are expected to take a number  of steps. These include creating an audio brand consistent with other elements of their branding, such as colors and logo, owning a brand voice that is distinct from Alexa, and creating unique “audio logos”. According to Tribal Worldwide London head of experience design, Sunny Kumar, after finding a voice, brands should know how to use it. Aptos marketing director Dave Bruno said brands should “take voice seriously” and make it as easy as possible to remember how to engage using the platform.[Image Credit: © Amazon.com, Inc. or its affiliates]

Lynx Changes Directions To Focus More On Male Mental Health Without Losing Sense Of Humor

After its previous marketing strategies had linked its brand to “lad culture, sex, and misogyny”, Lynx embraced campaigns that focus on ideals of masculinity that are harmful to male mental health. In January 2016, the male-grooming brand launched its “Find your magic” campaign, which encouraged young men to “embrace their differences.” Lynx and other brands face the risk of unfavorable reaction from consumers, who might see their “brand purpose” efforts as a means to enhance reputation and sell products. According to Lynx global vice president Rik Strubel, part of the brand's more socially conscious efforts is remaining true to its humorous heritage. [Image Credit: © Unilever]

Glossier Plans To Create Social-Enabled Online Selling Platform For Own Beauty Products

After receiving an extra $52 million in venture capital funding, beauty brand Glossier plans to create a “social-selling website” for beauty products. According to company founder and CEO Emily Weiss, her company will build a website that combines social media and online shopping, which will allow consumers to get insights and buying tips from other users about beauty products. Weiss said the website will not be a social network that sells advertisements for revenue, but will instead be used by the company to sell its own beauty products. According to Weiss, her company's social commerce strategy aims to address the fact that despite advances in ecommerce and online retail, “the customer experience is pretty broken.”[Image Credit: © Glossier Inc.]

Big Companies Grab Direct-To-Consumer Startups That Fail To Secure Huge Investments

During the first eight months of 2018, Investors have placed a $1.2 billion bet on business startups that use the direct-to-consumer model to sell products. However, there has been several large acquisitions of DTC startups that have received little or nothing at all before being acquired. For example, natural deodorant brand Native failed to secure venture capital but instead received $550,000 from small investors, according to company founder Moiz Ali. Two years after creating his company, Ali sold Native to Procter & Gamble for $100 million in cash, while remaining CEO. Other deals involving acquisition of DTC startups include watchmaker Movado's plan to purchase DTC watch startup MVMT for as much as $200 million, with $100 million in cash, and mattress company Serta Simmons' plan to merge with Tuft & Needle, a startup that makes and sells foam mattresses in a box and sells them directly to consumers.[Image Credit: © Gerd Altmann]

Infinite Beauty Starts Offering HydraFacial MD Highlights High-Tech Beauty Treatments In Maryland

Infinite Beauty has begun offering its HydraFacial MD Highlights high-tech beauty services at its spa location in Bethesda, Maryland. Noted for its technology-focused approach to beauty care, the company operates eight spa locations that provide customers with innovative treatments, such as high-frequency, microcurrent, ultrasonic, and LED light therapy. According to the company, the HydraFacial process can increase skin hydration, help reduce lines and wrinkles, as well as enhance the appearance of hyperpigmentation or redness.[Image Credit: © Infinite Beauty USA]

Kelly Preston Plans To Launch DTC Organic Beauty Brand Breathe


Actress Kelly Preston plans to launch Breathe, a direct-to-consumer brand of organic beauty products in December 2018 or January 2019. At present, the company offers four anti-aging skincare products: a day serum, day crème, night serum, and night crème. Fully funded by Preston herself, Breathe is in negotiation with investors and plans to expand beyond skin care. Preston said she plans to transform Breathe into a totally organic lifestyle brand offering makeup, haircare, and products for men, babies, and the home.[Image Credit: © Kelly Preston]

Beauty Bakerie Grows Its Business Through Social Media and Direct-To-Consumer Business Model

Beauty Bakerie, established by company founder Cashmere Nicole, became profitable in a few years depending on social media and a direct-to-consumer business model. Nicole, who had no beauty industry connections at all, developed a collection of “functional makeup” for busy women. At present, the company is growing fast, selling its beauty products in more than 60 countries online and some offline stores around the world. With 25 employees and three facilities in San Diego, California, the company has received various honors and recognition from leading magazines, such as Cosmopolitan, Teen Vogue, and Essence.[Image Credit: © Beauty Bakerie Cosmetics Brand]

Pinterest-Enabled Campaign Boosts Brand Awareness, Online Traffic, Sales For Manscaped

After launching a marketing campaign on social media platform Pinterest, men's grooming company Manscaped saw significant increases in brand awareness, online traffic, and sales. Data from a case study shared with Mobile Marketer revealed the campaign gave the company 13 percent increase in online traffic, 9 percent increase in customer acquisition, and 11 percent gain in online sales. Pinterest helped Manscaped upload a list of customers who previously bought the company's products. Pinterest Analytics allowed the company to fine-tune the campaign for optimal performance.[Image Credit: © Manscaped]

Jouer Cosmetics Plans To Open Pop-Up Store In Los Angeles

Jouer Cosmetics plans to launch its Jouer Rose Gold Collection Pop-Up Shop in Los Angeles, California, on August 22, 2018. Located on Melrose Place, the shop's opening will feature a first-hand Rose Gold Collection experience for influential shoppers. Also, the first 25 followers to shop the store will receive a free gift. Shoppers will also be able to personalize select products with custom-painted monogram services.[Image Credit: © Jouer Cosmetics]

Schwarzkopf Launches My Specialist Brand Of Highly Personalized Haircare Products

Schwarzkopf has launched its My Specialist brand of personalized haircare products in China. Available online through an exclusive partnership with China-based online shopping website T-Mall, the brand offers consumers what the company describes as a “whole new level of personalization.” Developed by Henkel's research and development professionals, marketing teams, and the Shanghai Advanced Research Institute, the brand comes with an online dryness and damage assessment that measures the health status of the consumer's hair. Also, consumers are prompted to answer a series of questions to better assess their haircare needs. According to the company, the system checks the hair's cuticle array, cuticle lift-up, cortex exposure, and other aspects of the hair condition.[Image Credit: © Henkel AG & Co. KGaA]

Three Reasons Compel CPG Companies To Adopt The Direct-To-Consumer Model

Consumer packaged goods companies should consider adopting the direct-to-consumer model for three reasons: new product launches, consumer data, and consumer loyalty. To improve the success rates of new product launches, 75 percent of which fail, according to the Harvard Business Review, CPG companies must test concepts with real consumers using their direct channels before introducing those products to the retail channel. By using the DTC model, CPG companies gain access to a huge collection of information about the consumer. Also, by using a DTC channel, CPG companies can have a source of proprietary data which gives them competitive advantage. Finally, a direct access to the consumer provides CPG companies with means to create more convincing ways to buy from them and gather more personal information from their customers. [Image Credit: © Mediamodifier]

Odore's Dispenser Machines Give Consumers Perfume Samples For Personal Data

Odore provides fragrance samples dispenser machines that allow consumers to exchange personal data for free samples of perfume products. Designed to encourage consumer participation, the process requires users to answer questions that would take no more than 20 seconds to accomplish, company founder Armaan Mehta said. He said the device also meets millennial consumers' demand for interactive retail. [Image Credit: © Odore Limited]

Serena Williams Invests In Pro-Women Equality Shaving Brand Billie

Tennis Grand Slam champion Serena Williams has agreed to invest in female-first shaving brand Billie. By investing in the direct-to-consumer company, Williams continues supporting the campaign for equality for women. Billie's pricing aims to do away with the “pink tax”, or higher prices for products designed for women. Williams joins other celebrities, including Drew Barrymore and Lena Dunham, who have expressed support for the brand on social media. [Image Credit: © Billie Inc.]

Panacea Looks At Transparency And Minimalism As Corporate Guideposts


Panacea founder Terry Lee discussed how he established a direct-to-consumer beauty brand that depends on customer insights to create gender-neutral, closely managed collection of three skincare products. According to Lee, the outstanding feature of his company is its ability to create and sell products in ways that both women and men find attractive. Also, the company's approach to gender neutrality is highlighted by its product development process. Lee said transparency and minimalism are “very innate” in his company's character and “naturally showed up in the brand itself.” [Image Credit: © Panacea]

L'Oreal, ModiFace Partner With Facebook To Let Consumers Try Makeup Products Through AR-Enabled Experiences

L'Oreal and its recently purchased augmented reality and artificial intelligence company ModiFace have partnered with Facebook to create AR experiences for consumption by users of the social networking platform's camera products. Featuring a direct and seamless link between Facebook and ModiFace, the partners will deliver AR-based experiences, enabling consumers to virtually try on makeup products from leading beauty brands, including Maybelline, L'Oreal Paris, and NYX Professional Makeup. [Image Credit: © Modiface Inc.]

Direct-To-User Model Promises To Do More Than Typical DTC Does

Consumer packaged goods companies, whether users of the direct-to-consumer model or not, should focus on evolving from DTC to direct to user. By adopting a DTU approach, brands can expand their horizons when it comes to customer engagement. DTU provides brands the opportunity to avoid retail costs and the need to compete with established brands. Instead of focusing on what users think of a brand, companies should concentrate on what users experience during engagements. Also, a DTU model also offers brands an opportunity to have an uninterrupted exchange with users that can retain and protect user engagement that can help long-term growth. [Image Credit: © Matthews International Corporation]

Market News

Analysts Predict Nestlé Will Divest Skin-Health Business To Focus on Beverages, Food

Nestlé may be planning to divest its $2.79 billion skin-health business as a way to placate an activist investor who believes the company should focus on food and beverages. Selling the unit could generate $4.1 billion, according to analysts, but the company did not comment on the speculation. Investor Daniel Loeb took a $3.5 billion stake in Nestlé last year and has since pressured the company to sell its investment in L’Oréal SA and in the skin-health arm set up in 2014 after Nestlé assumed full control of Galderma. CEO Mark Schneider has said the key to reviving stagnating growth is to focus on core areas with growth potential like coffee, pet care, water, and infant nutrition. Regarding coffee, the company recently bought the rights to market and sell Starbucks coffee and tea products in grocery and retail stores, and last year bought a majority stake in U.S. premium coffee chain Blue Bottle.
Copyright 2020 Business360, Inc.