Beauty Industry Business News

Beauty Industry
Times Prime to offer exclusive access to Urbanclap beauty & wellness and homecare packages
India's first comprehensive lifestyle membership, Times Prime has partnered with Urbanclap, India's largest services marketplace to offer subscribers exclusive free 6-month access to Urbanclap's premium beauty & wellness services and year-long access to its premium Homecare package.  The beauty & wellness membership offers a 15% discount on salon, massages and party makeup bookings, while the latter offers flat Rs 100 off on 20+ homecare services like handyman bookings (like electrician, plumber, carpenter, etc), appliance repair bookings, cleaning & pest control bookings and much more.  At an introductory price of Rs 999 only, Times Prime's premium lifestyle membership now offers exclusive access to 5 premium memberships that include Swiggy Super, Gourmet Passport by Dineout worth Rs 1499, Gaana+ by Gaana worth Rs 399, exclusive access to TOI+ worth Rs 1200, the ad-free online version of the world's largest circulating newspaper and annual Urbanclap's premium Beauty & Wellness and Homecare packages worth Rs 3600.  Vivek Jain, Business Head - Times Prime said, “At Times Prime, we are focused on simplifying the lives of our customers with handpicked premium experiences. Owing to the busy lives we lead, it was high time we helped customers disconnect and de-stress by offering them a chance to pamper themselves and skip the hassle of scouring for quality service personnel for their homes. We believe this will free some quality me-time over the weekends for them to enjoy premium pampering sessions.”  Rahul Deorah, VP Marketing at Urbanclap said, “Urbanclap is focused on offering instant access to reliable and affordable services to every Indian. With over 10,000 verified experts and 5 million happy customers, we look forward to bringing our offerings to Times Prime subscribers across the country.”  Times Prime's exclusive payment partnerships with HDFC Payzapp, HDFC Times Card & Times Points can be used to purchase the Times Prime membership at up to 50% discount. Customers can easily recover their membership fee within the first week and save up to Rs 60,000 every year, making Times Prime the most comprehensive and cost-effective premium subscription service available in India.    Source: 
Beauty Industry
Sephora Spain is investing AI mirrors to mimic Amazon’s recommendation engine
As revamping the in-store retail experience becomes a de facto move for beauty retailers, Sephora Spain is betting on AI-powered intelligent mirrors. In late March, Sephora Spain’s flagship Madrid location unveiled its new partnership with experiential innovation agency Wildbytes to offer customers personalized recommendations bridging the gap between fashion and beauty. Shoppers can now walk up to said mirrors and are suggested personalized makeup, skin-care products and fragrances, based on what they are wearing, their gender and their age. Seasonal and contextual elements, such as climate, time of day and trends are also taken into account. The products referred are meant to enforce that beauty items are the ultimate accessory for whatever a consumer might be wearing, said Irma Ugarte, Sephora Spain’s marketing director. “Calle de Serrano is the most trafficked street in Madrid. It is primarily known as a destination for luxury fashion and lifestyle, so we wanted to create a concept that was special to that environment, especially as we open a new flagship experience and are the first cosmetics store on this street,” said Ugarte. The Sephora Spain store is situated by Louis Vuitton, Dior, Saint Laurent and Salvatore Ferragamo. Wildbytes co-founder and CEO Julio Obelleiro said the Sephora experience is meant to mimic Amazon’s recommendation engine that accounts for 35% of the company’s revenue, but in a physical setting versus on the backend where the customer can’t directly see it. “There is a very low level of personal relevance that exists in retail. Customers are routinely suggested the same generic products,” she said. Sephora Spain’s move follows larger industry shifts around AI: Though Sephora Spain is not facilitating AI capabilities via the cloud with Wildbytes, according to Deloitte Insights, 70% of companies will obtain AI through cloud-based software in 2019, and 65% will create AI applications using cloud-based development services. Those numbers are expected to jump to 87% and 83%, respectively, in 2020. Sephora is featuring 70 products from brands like Origins, Farsali and Clarins among the mirror’s recommendations, and thus far, over 4,500 customers have used the experience, said Obelleiro. On average, customers are spending about 42 seconds with the mirror and clicking on the activation about 18 times. Though the AI-recommendation engine has focused on suggesting makeup to customers — popular suggestions have included Make Up For Ever’s Aqua XL Ink Liner and Kat Von D’s Lolita Eye Palette — the top-three products purchased by participating customers have been in the skin-care category, such as Origins’ High-Potency Night-a-Mins resurfacing cream, Farsali’s Unicorn Essence serum and Clarins Double Serum. This suggests that skin-care products can benefit from AI capabilities, just like color cosmetics which have often been associated with the tried-and-true virtual try-on beauty experience, explained Ugarte. For now, Sephora Spain does not directly connect the mirror’s recommendations to (the mirror displays QR codes, allowing consumers to purchase the products on Sephora’s website or locate them in the store), as the retailer is focused on customers’ time spent and brand awareness, versus a KPI of conversion, said Obelleiro. In the second half of 2019, the AI-powered mirror will be rolled out to Sephora Spain’s Barcelona flagship in the El Triangle shopping center, with the possibility of pushing it to Sephora Spain’s full fleet of 56 standalone stores (in Spain, the retailer has 136 points of sale), as well as the rest of Europe. “When you walk into any Sephora store, you first experience our Beauty Hubs, where customers can test products. Depending on the market, that drives about 25-35% of sales — so we know people love to experience our makeup and skin care with makeup artists, but other types of customers don’t like that personal interaction or they lack the time,” said Ugarte. “We want to satisfy that on-the-go customer and respond to changing shopping habits.”   Source:  
Beauty Industry
Imports data reveals skin-deep nature of beauty and care sub-sector
Local manufacturing, which could create many jobs, lags as flourishing retail stores and salons in urban areas give a cosmetic impression of the true state of beauty industry One of the media’s biggest business stories of 2013 was the acquisition of the cosmetics arm of InterConsumer Products Ltd, by global beauty products giant L’Oreal, in a deal estimated to be worth over Sh1.5 billion. The awe was not brought about so much by the fat check but more by the fact that the cosmetics sub-sector, with little known domestic manufacturing capability, could nourish a small Kenyan enterprise into a fortune. Having started off small, hawking home-made shampoo in salons, Mr Paul Kinuthia strived to manufacture his products locally someday as the business grew so as to create more opportunities for employment. But when his business expanded beyond his capacity to produce at home, he contracted manufacturers in China, who offered a much better deal than he could find locally. Effectively, his business, though a Kenyan enterprise, contributed to the already growing numbers of imported cosmetics and beauty products, hence limiting the sector’s capacity to create employment. The country has imported more cosmetics products every year in close to one decade, according to Kenya Revenue Authority data obtained by NationNewsplex. Last year, such imports stood at about 15 million kilograms, almost double (95 percent) from 7.7 million kilograms in 2010. As he finally realised his dream in a different sub-sector by investing a part of the proceeds from the historic sale in a manufacturing plant for sanitary products, his experience in the local beauty and care sector shines some light on the production component of the industry, often overshadowed by the more visible and vibrant supply and service provision aspects Though it is not easy to establish the share of beauty products (goods) in the Kenyan market that are manufactured locally, a cursory tour of supermarkets in Nairobi’s central business district shows that there are many imported beauty brands on the shelves. Even some companies with production plants locally, such as Unilever and Nivea, manufacture some of their products elsewhere, mostly in the US, China, Europe and South Africa, and then ship into the country. This implies that the local manufacturing sector is not responding appropriately to the increasing demand for cosmetics products at a time when manufacturing is a priority item in President Uhuru Kenyatta’s Big Four agenda, promising to grow the sector’s contribution to the gross domestic product from nine percent to 15 percent and create one million new jobs in the sector, among other milestones, by 2022. Coincidentally, the President introduced his agenda in 2017, when the growth of manufacturing had slowed down and its share of GDP slumped to eight percent from nine percent in 2016. Additionally, formal employment in the manufacturing sector had grown by a slower rate of 0.8 percent compared with 1.8 percent in the previous year. The government linked the dipping fortunes to uncertainties related to the 2017 general elections, high cost of inputs and stiff competition from cheap imports. But two years later, the local manufacturing sector is still hurting from cheap imports. ''At present, Kenya is at a cost disadvantage of nearly 12 percent of most of the goods it manufactures, compared to competitor countries,'' says Ms Phyllis Wakiaga, the Kenya Association of Manufacturers CEO. This means that, for many products, it is cheaper to import than produce locally. ''For manufacturers to operate effectively and efficiently, they require a business environment that enhances competitiveness, including low cost of power, reduced transport and logistics costs, enhanced cash flow for manufacturers, lower costs of imported industrial inputs, access to long-term financing and markets.'' The money makers With a share of the manufacturing component of the cosmetics industry’s value chain seized by foreign economies, the industry’s potential to create jobs at home is significantly diminished and left largely to product distribution and service provision. The flourishing of cosmetics retail stores, salons and beauty parlours in the country’s urban areas has given a cosmetic impression that the sector is doing well. But that is not to say that retail and service have little to offer. In 2014, Euromonitor International, a global market research agency, pegged the Kenyan colour cosmetics market as worth Sh5.4 billion, with projected growth of Sh6.6 billion by 2018. Colour cosmetics refers to a broad category of beauty products used on the skin, eyes, cheeks and lips. The fast growth of the retail market has seen many established international brands move into the Kenyan retail market, including Sleek, Flormar, Revlon, Maybelline, SuzieBeauty Cosmetics, House of Tara, Lancôme and Black Opal. Manufacturing's share of contribution to GDP has been declining since 2013 Even with all the attention from abroad, the market’s potential has not gone unnoticed locally. Television personality Betty Kyalo and socialites Huddah Monroe and Vera Sidika, who recently separately started businesses in the beauty and care sub-sector, are just but the public face of many Kenyans seeing business opportunities in cosmetics. According to Mr Boniface Nyaga, a digital strategist and CEO of Mawaitha Consultancy, it was a smart move by the celebrities to convert their huge media presence into a business. ''People generally respond to messages from those they look up to and brands leverage on that to push sales,'' he says. Some 3,736 cosmetics shops, salons and barber shops were licensed to operate in Nairobi County in 2018, according to the county government. The number grew consistently from 3,117 in 2010 to peak at 5,156 in 2015 (a two-thirds jump) then declined steadily. The county government attributes the lower numbers partly to higher licence fees and the high and ever-growing cost of renting space in the city. Mombasa County, on the other hand, saw the number of cosmetics businesses grow almost in half (44 percent) from 1,257 in 2017 to 1,814 this year, county government data shows. Kenya currently ranks 61 in ease of doing business, up from position 80 last year, according to the Doing Business 2019 report by the World Bank. However, the report, which sampled Nairobi only in Kenya’s case, indicates that the ease of starting a business in the country, which includes securing a trade licence, has not improved since last year’s report. The 28 percent drop in the number of cosmetics businesses in Nairobi since 2015 has seen a corresponding one-third drop in licence revenue from Sh31 million in the same year to Sh23.6 million last year. Niche market As the county continues to lose revenue, a new trend is shaping up in the city. Suppliers and service providers connect with customers via the phone or the Internet and transact business without putting up a physical shop for which they would have to pay rent and a licence fee. One proprietor running such an enterprise is Ms Beatrice Chege, who owns a boutique in town but is always a call away with manicure, pedicure and facials services. ''People with these skills and talent have realised that you do not need space to make money, especially if it comes at an extra cost. I have hired people to run the boutique while I remain on the move'' she says. She takes her services to clients’ homes and offices and on many occasions spends her day at weddings or photo shoots and video recordings. Making between Sh5,000 and Sh35,000 a day, the revenue from the cosmetics business, which she started as an afterthought, supports her boutique. The same approach has been embraced by small-scale enterprises offering home-made organic beauty products. Harmful products In the scramble for a share of the Kenyan cosmetics market, there are risks that the consumer may be exposed to harm. The Kenya Bureau of Standards (Kebs) has listed on its website, as of March 28, 144 brands as harmful and therefore not allowed in the market. They include 64 skin lightening creams containing hydroquinone, 52 skin lightening creams containing mercury and its compounds, 14 skin lightening lotion brands containing hydroquinone, 11 soap brands containing mercury or its compounds and three skin lightening gels. The standards and quality watchdog also highlights seven products registered by the Pharmacy and Poisons Board to be used as human medicines for various skin conditions and therefore not for use as beauty products. These are: Betnovate, Mediven, Diprosone, Nerisone, Hydrocortisone, Oxy 5 and Oxy 10. However, consumers may still end up buying and using these harmful products, some of which Newsplex confirmed are still in the market despite the ban. Apart from the warning on Kebs' website, few public awareness campaigns have been conducted on the banned products. Ms Chege, for instance, confirms that she only knows about the harmful effects of products with mercury but not aware of any banned brands. She says she trusts her supplier, whom she considers to be reputable in the industry.     Source :
Beauty Industry
Japanese cosmetic brand DHC now in Vietnam
Brand signs agreement with Belie JSC as official distributor. The Belie JSC signed a strategic cooperation agreement with Japanese beauty product provider the DHC Corporation on January 12 in Hanoi to officially become an exclusive distributor in Vietnam. The two sides expect the signing to open up a new development phase for Vietnam’s cosmetics sector and is an opportunity for DHC to expand cooperation and relations in Vietnam and the region. Mr. Nguyen Manh Dung, Chairman of Belie, said the cooperation expresses its desire to search for products and prestigious brands in Japan to help Vietnamese people gain access to high quality products and ensure product safety and origin. Mr. Gary Gauntt, Global Market Director of DHC, told VET that Vietnam is a young market and incomes are on the rise. “This provides potential for DHC’s development in the country in the future,” he added. Belie signed an agreement to test DHC’s products in Vietnam a year ago. One year on, DHC has three official DHC showrooms and more than 100 sales points via agents nationwide. The goal for the next three years is to open 30 DHC showrooms and have over 1,000 sales points. With more than 40 years in the business, DHC is a global brand with a presence in ten countries and territories, many of which are seeing impressive results. It has more than 84,000 sales points around the world and annual revenue exceeds $1 billion, with more than 15 million registered users. It expects to open more than 2,000 new sales points in the US this year. DHC’s product lines focus on natural treatments that incorporate ingredients drawn from nature, minimizing the use of ingredients that might irritate the skin. More than 800 types of cosmetics are available. In field of health food, DHC supports healthy daily living through 553 products. Its four laboratories in Japan undertake a broad range of basic research activities and seek to develop products with an emphasis on safety and efficacy. The brand has continuously occupied the No. 1 position in Japan for online sales of cosmetics and functional foods for 19 years (2000-2018).   Source:
Beauty Industry
Valmont Barcelona Bridal Fashion Week to Conquer New Horizons With Its Biggest Ever Edition
The fair dedicated to bridal fashion organised by Fira de Barcelona will hold its biggest ever edition between 23 and 28 April in the Montjuïc venue, with the presence of 35 names on the runway and more than 400 brands at the trade fair, 74% of them international from 34 countries. The VBBFW 2019 fashion shows will set next season's trends with more than 900 gowns over 4 days, while the trade fair, which take place between 26 and 28 April, will see more than 28,000 bridal gowns, grooms outfits, cocktail and evening wear. Among the new features this year are Marchesa the US brand founded by the English designers Georgina Chapman and Keren Craig and one of the favourites of celebrities for stepping out on the world's red carpets, which will present its Spring 2020 collection in a show at Barcelona Bridal Night, the fair's gala night; The Atelier, the Malaysian fashion house that since 2017 has had Jimmy Choo, master shoe designer, as the creative director of its bridal collections; and Zac Posen, the famous US designer who will show his latest collections in his line ZAC Posen in Barcelona, among many others. VBBFW will again hold the "Elle International Bridal Awards", which in the 2018 edition, also held in Barcelona, were given to Carolina Herrera, Reem Acra, Viktor & Rolf Mariage, Carlo Pignatelli, and the Spanish companies Pronovias and Sophie et Voilà, among other big names. US, China and Spain as leaders China is the largest producer in the world, the US is consolidated as the market leader and Spain is the largest producer in Europe and second largest exporter in the world. These are the conclusions of the new study "Millennial and Gen Z Brides", commissioned by the VBFW and carried out by IESE lecturer José Luis Nueno, which analyses the new consumer patterns marked by Millennials and Generation Z (Gen Z), made up of always on digital natives, who are strengthening the evolution of the retail channel towards new technologies and omnichannel.   Source: