Beauty Industry Business News

More
Beauty Industry
Prostor is negotiating the purchase of Cosmo
Dnipropetrovsk company "Style D" (developing a network for the sale of perfumery and cosmetic products Prostor) is close to the acquisition of the business of the company "Sumatra LTD" (network "Cosmo"). Three sources told LIGA.net about this: two directors of retail chains and an investment banker. The seller - investment company SigmaBleyzr. The amount of the transaction may be about $ 15 million. If an agreement is signed, Prostor will be the second in Ukraine in the segment of stores selling perfumery and cosmetic products after the Eva chain. The contract of sale has not been signed yet, now the cost estimate of Kosmo business is underway, says the director of the trading network on the rights of anonymity. The deal may turn out to be typical for the Ukrainian retail market: the owner buys lease agreements, commodity balances, trade equipment and, if necessary, the brand of the network. We are talking only about the sale of about 110 perfumery and cosmetic shops, the pharmacy business "Cosmo" is not included in the transaction, he said. The seller wants for his asset about $ 15 million, said an investment banker who wished to remain anonymous. The director general of the Cosmo network, Georgy Sheiko, said that the retailer regularly negotiates the sale of his business. He denied the information on the valuation of assets. Prostor LIGA.net failed to get a comment - its representatives did not respond to the publication request. The American SigmaBleyzer, through SBF Southeast European Holdings, acquired Sumatra LTD in 2007. Then the experts predicted that the fund would go out of business in three or four years, selling Cosmo to an international operator. However, several financial crises could interfere with the fund’s plans, and now only Ukrainian competitors are considering the purchase of the network. Watsons refused to acquire the network, says investment banker. Co-owner of the network "Eva" Ruslan Shostak said that now does not consider the purchase of business "Cosmo". SigmaBleyzer previously declared its readiness to invest in other types of businesses in Ukraine, including in the production of carbohydrates. According to the State Service of Geology of the Subsoil, the fund is ready to invest about $ 100 million.     Source:https://delo.ua/business/prostor-vedet-peregovory-o-pokupke-kosmo-347222/
Beauty Industry
Stradivarius partners up with Spanish Cristian Lay to jump into perfumes
Inditex keeps spreading out its youngest chains. Stradivarius, which during recent years has already launched capsules of cosmetics, stationery and household articles, enters now perfumery hand in hand with Spanish industrial group Cristian lay. The chain has signed a deal with Perseida, the company’s subsidiary dedicated to perfumes and personal care, in order to release a collection of perfumes. The collection, composed by five different references, is already available in Stradivarius stores around 63 countries, as well as in the web page. The development of this line has extended for over a year. Stradivarius is one of the chains with which Inditex has experienced the most during recent years. In 2016, the company tried out a release of a stationery and small decoration collection, which managed to have a differentiated space in some of its flagships. A year later, Stradivarius took a step further with its first menswear collection, although ultimately, the project was cancelled barely a few months later. The launch of its perfumes coincides too with the entrance of the group’s top brand into cosmetics. Zara will start to sell this week a collection of twelve lipsticks that will only be sold online. Who is Stradivarius’ new partner? Founded in 1994, Perseida is a specialised company in the development and production of cosmetics, perfumes, hygiene, personal care and sunscreen for third parties. The group produces for distribution giants such as El Corte Inglés, Lidl, Carrefour, Dia and Eroski, as well as for the hotels chain Tryp, to name a few. The company’s factory, provided by 16,400 square metres, is situated in a locality from Badajoz, Spain, where it produces about 34 million units per year. With a workforce constituted by a hundred people, Perseida has a revenue of about 18 million euros. The company also operates with two of its own brands, GG Paris, aimed towards the beauty channel, and Mimitos and Flower of Zen, for the pharmacy channel.   Perseida is part of the group CL Grupo Industrial, promoted by the Leal family in 1981 and which revenues a figure of 500 million euros. The company operates with three different lines of business: direct sales, industry and energy. Amid the brands in the first division, there is Christian Lay, specialised in the production of jewellery for multibrand channels and catalogue sales. The industrial area, on the other hand, includes Perseida, the perfumes brand; Iqoxe, the only ethylene oxide producer in Spain; Ondupack, specialised in corrugated cardboard packaging; Plastiverd, from Pet, polymers and recycling, and the chemical Iqoxe Emulsiones Poliméricas. Lastly, CL Grupo Industrial includes also Alter Enersum, of photovoltaic energy; Gas Extremadura and Global Energy Services, specialised in wind and solar energy.    Source: https://www.themds.com/companies/stradivarius-partners-up-with-spanish-cristian-lay-to-jump-into-perfumes.html
Beauty Industry
L’Oreal Goes After ‘Dupe’ Products
L’Oreal is suing indie skin care brand Drunk Elephant over alleged patent infringement. Companies in the skincare industry face an incredibly imitative and competitive company, with educated customers who are looking for the best product at the best price. Because companies are legally required to list ingredients based on their concentration, this allows labs to analyze companies and recreate nearly identical products through a process known as “deformulation”. This practice is allowed provided the original company does not have a patent on a particular ingredient or formula, but many brands are hesitant to patent their products. If the brand is unsuccessful at patenting their formula, the information provided for the patent will immediately go public. Many brands do not feel it is worth the risk and rely on brand reputation and constant innovation to keep ahead of so called ‘dupe’ imitators. While a behemoth like L’Oreal typically ignores smaller brands copying their products, this case is different. Drunk Elephant’s rival product has been cutting into L’Oreal sales and earning acclaim from respected beauty reviewers like Allure Magazine. As Drunk Elephant has grown globally as a brand and has a lot to lose if it is unable to win the suit and is forced to cease producing one of its top products. The ruling either way will have ripple affects across the industry.   Source : https://www.vox.com/  
Beauty Industry
SOUTH AFRICA Beauty Industry
The number of known salons catering for black people is estimated at 40 000, and about 3 000 of these cater for “non-ethnic hair”. The figures most likely exclude informal salons in homes. The salon space is highly competitive, given the number of alternative suppliers, which is great for consumers who have a variety of options and prices to choose from. However, according to Euromonitor, ethnic hair, when kept in its natural form, is difficult to maintain and requires the correct product to moisturise and nourish. A person’s hair is often the most visible aspect of their appearance, which explains why consumers are willing to spend more to have the perfect look. The Sorbet Group, a national franchise that has spa and dry bar services, has recently ventured into the black hair care market with Candi & Co, which says it is “South Africa’s first franchised ethnic hair salon that delivers world-class hair care services that are accessible, affordable and authentically beautiful”. The top 3 ethnic hair salons in South Africa: Candi & Co Indalo Nubian Naturals Blue Lemon Hair The services offered at ethnic hair salons However, black women prefer more variety in their hair care, going from braids to weaves, to chemical treatments, to other drastic style changes. The hair care variety demanded by African hair is more than that required for Caucasian hair. Furthermore, African women are looking for hair nourishing and damage repairing alternatives to existent hair care products like shampoos, conditioners, and even styling agents. perms and relaxants Research on the hair care industry is limited, but it suggests that relaxing remains the most popular treatment in South African salons, accounting for an estimated 80% of all business. Relaxers are hair chemicals used by the ethnic woman to make their hair softer. The leaders in the local hair relaxing space are multinational companies such as L’Oréal (Dark and Lovely), Unilever (Sunsilk and Motions) and Sofn’free. Amka Products is able to offer a diversified product portfolio to consumers with different hair requirements and textures. It is one of the few players to offer perms and relaxants that specifically target children. Braids A braid (also referred to as a plait) is a complex structure or pattern formed by interlacing three or more strands of flexible hair. A braid is usually long and narrow, with each component strand functionally equivalent in zigzagging forward through the overlapping mass of the others. The most simple and common hair braid is a flat, solid, three-stranded structure. More complex braids can be constructed from an arbitrary number of strands to create a wider range of structures. Some more complex braids are fishtail braid, five-stranded braid, rope braid, French braid and waterfall braid. Dreadlocks Dreadlocks are rope-like clumps of hair formed by your hair getting matted together. Dreadlocks have historically been found to be associated with ancient Greek, Aztec, Senegalese, Buddhist, and Rastafari cultures. Though they are now mainly linked to African culture and identity, people from all races do sport their hair in dreadlocks. Weaves, hair extensions and wigs Weaves and extension are fake hair used by ethnic women to enhance their hair. The fake hair resembles the Caucasian hair, however, the hair is very expensive and black woman spend anything from R2000 to R20 000 to purchase the hair, as the hair is usually imported from Asia. Today, there are more than 100 brands of hair in South Africa, the bulk of which is the synthetic kind from Asia. There’s also a growing demand for more natural human hair, sourced largely from India, Peru and Brazil Ethnic hair market in South Africa There is definitely a market for ethnic hair in South Africa. A young and increasingly urbanized and working population in South Africa is responsible for a flourishing hair care market. This is complemented by an increase in disposable income. High diversity by way of race has driven the extremely high growth of the African haircare market in South Africa. Furthermore, ICT efforts are becoming mainstream for marketing via social media, and increasing inclusion of women in the workforce account for the high growth in the South African markets for hair care. The market was valued at USD 451.8 million in 2017 and is expected to reach a value of USD 490.4 million by 2023 at a CAGR of 1.36% over the forecast period (2018-2023).     Sources: https://www.mordorintelligence.com/industry-reports/south-africa-hair-care-market-industry https://www.news24.com/SouthAfrica/News/the-hair-industry-is-thriving-20180806-2 https://www.euromonitor.com/hair-care-in-south-africa/report https://www.w24.co.za/Beauty/Hairstyles/by-numbers-how-big-is-the-hair-industry-20170927
Beauty Industry
The Limits of Fashion's Inclusivity
Beauty is being redefined - this is something on which most of us can agree. The era of the white, thin, Eurocentric model as the only embodiment of glamour is gone. The runways have embraced diversity of skin, shape and age. But for one group they still lag behind: people with disabilities. Now a new book, “Portrait Positive,” featuring images of 16 women with facial disfigurements by the British photographer Rankin, is aiming to change that. The book’s creator, Stephen Bell, managing director of the events company Epitome Celebrations, describes himself as having a “visible difference”: When he was born, four fingers on his right hand were fused together. To increase independence and mobility, his index finger was surgically separated in childhood. Yet he reached adolescence without visible role models or an understanding of his disability, he said, feeling isolated, insecure and unsure of what he could be and do. By chance, 10 years ago Mr. Bell, now 39, came across images online of people who looked just like him, and via the warrens of the internet discovered he had been born with a condition called syndactyly: joined digits that can result in webbing of the skin. It is the second most common congenital hand condition and occurs in around one in every 1,000 births, yet neither Mr. Bell’s parents nor his doctors provided him with the label or language to describe what had happened. The idea for “Portrait Positive” was born two years ago when Mr. Bell approached the London-based designer Steven Tai with the idea of using fashion as a framework to raise questions about codes of appearance. Mr. Tai was keen to participate, because he had “always believed in the acceptance and celebration of one’s insecurities,” Mr. Tai said, and hoped that “this project not only opens up the standards of beauty, but also lets these women know that they are beautiful.” The book will raise funds for Changing Faces, a British-based charity that supports and represents children, young people and adults who have a visible difference to the face, hands or body, whether present from birth or caused by accident, injury, illness or medical episode. The project will also exists outside of the book format; Brenda, Chloe and Raiché, three women who had their portraits taken by Rankin, walked in Mr. Tai’s London Fashion Week presentation. The fashion industry has a difficult history with disability. It has rarely considered people with disabilities to be valuable consumers (despite the fact there are estimated one billion worldwide), while simultaneously exploiting the objects and devices associated with the disabled. A Steven Klein cover of Interview magazine, for example, had Kylie Jenner photographed in a gold wheelchair. Helmut Newton famously photographed Nadja Auermann modeling stilettos, leg braces, canes and a prop wheelchair. There have, however, been moments that suggested change. Aimee Mullins, a double-amputee model, appeared on the Alexander McQueen catwalk in the spring 1999 show; Mama Cax, an amputee, modeled on the runway for Chromat recently at New York Fashion Week (and was featured in Teen Vogue’s current disability-focused series); and Olay’s new #FaceAnything campaign features the model Jillian Mercado, who has a disability. “Portrait Positive” is part of this continuum.   Source : https://www.nytimes.com