Beauty Industry Business News

Beauty Industry
The Top Personal Care Ingredients of 2020?
Fueling everything from sunscreens to soap, innovation is key when it comes to personal care components. in fact, the personal care ingredient market increased by 3% in 2018.  The three mature markets—Europe, the United States, and Japan—are the only ones below the average global growth. Other markets, such as India and Southeast Asia (SEA), may be small, but with an enormous potential. India’s personal care ingredients are forecast to increase more than twice as fast as the global average, surpassing all other high growth markets, such as SEA and Brazil.   The “natural” trend continues to be among the most important in the personal care industry. In the United States, in 2018, the natural personal care market records the strongest growth in the last five years, according to Kline’s Natural Personal Care: U.S. Market Analysis and Opportunities report. Consequently, organic or natural-perceived ingredients, such as benzoates and benzoic acid, natural gums, cellulosics, emollient esters, natural oils, and alkyl polyglucosides, are increasingly gaining importance.   With the release of various exotic oils and butters as a way of replacing mineral oil and silicone in some cases, emollients show strong growth. Moreover, natural oils are increasing in importance because ingredients derived from what consumers eat are appealing for them. Properties of certain emollients, such as skin smoothing or a non-greasy feel, will also continue to drive their consumption. In the United States, emollients are forecast to achieve the fastest growth during the period of 2018 - 2023.   There are not only regulatory pressures, but also marketing tactics affecting certain ingredients. “For instance, regulatory body approves the use of parabens within limits; however, the claim ‘paraben-free’ creates a negative perception of an ingredient for consumers, an image that these ingredients are harmful,” comments Carlos Ruiz, senior analyst at Kline. “In the following years, a guidance on “free from” claims shall occur, which will only be allowed if an ingredient is banned based on a regulation.” In contrast, some consumer trends restrain growth in some ingredient categories. For instance, natural-looking hair trend is slowing down the use of hair fixative polymers. However, hair fixative polymers are still forecast to see the strongest growth in India. The search for simpler formulations with as few ingredients as possible to maintain product effectiveness may be linked to a more conscious consumption from the consumer’s perspective. From an industry point of view, this movement is to reduce costs by using multifunctional ingredients as well as simplify processing through the use of less ingredients. This also leads to a movement towards multifunctional ingredients and the emergence of blends in all ingredient groups.   Current and new consumer trends create interesting dynamics on the personal care ingredients market. Inclusive beauty gives way to growth of ingredients used in customized foundations, such as titanium and iron oxides. UV absorbers grow the fastest in Europe due to heightened consumer awareness of harmful effects to sun exposure. However, in the United States, UV absorbers, such as Diethylamino Hydroxybenzoyl Hexyl Benzoate, Ethylhexyl Triazone, Bisoctrizole, and Bemotrizinol, have not been approved by the FDA, limiting the development of the US sunscreen market. As a result, growth, trends, and regulations vary from one market to another.   Source:
Beauty Industry
Spanish fashion label Zara's freckle-faced ad 'insulting China'? Don't be so sensitive, says China Daily
Fashion and cosmetics brand Zara was recently in trouble because one of its advertisements which featured a female Chinese model was blamed for "defaming the Chinese". The advertisement was released last Friday (Feb 15) on the Spanish label's official website. Titled "Beauty is here", it stars a Chinese woman wearing the brand's clothes and aims to introduce new cosmetics. Yet, after Zara shared it on Sina Weibo, China's equivalent to Twitter, some of the comments noted that the model had freckles on her face, suggesting that by selecting her as the model, Zara might mean to "defame the Chinese", because a perfect face should be without any freckles. Some also added that the model in the photo did not appear to be in a good, energetic mood. "Does Zara mean all Asian girls have freckles on their faces?" read one of the hottest comments on the Zara release. "Cannot believe they pick a freckled face on behalf of Asian females," said another. Some of the comments, deleted very soon after being posted, even suggested Zara might mean to "insult" China, as the Italian brand Dolce & Gabbana did in November. D&G are reeling from a boycott in China after its calamitous advertising campaign of a Chinese woman struggling to eat spaghetti and pizza with chopsticks that was decried as racist. The label's co-founder Stefano Gabbana appeared to add fuel to the fire with a private Instagram exchange in which he used a smiling turd emoji to describe the country and referred to "China Ignorant Dirty Smelling Mafia". D&G insisted his account was hacked. In the latest incident involving Zara, the majority of the comments said they do not think Zara means any harm. "It is OK for anyone to have a freckled face, so why cannot a model?" was another one of the hottest comments. Last Saturday, Zara responded that it meant no harm. The company said photos of the model were taken in an all-natural way, without any software manipulation, and the reactions might just be differences in aesthetics. By Sunday evening, the hashtag #Zara responds about the Chinese model advertisement# had already been read 460 million times on Sina Weibo, making it one of the hottest of the day. In a bid to calm the situation, state-run media China Daily said in an editorial that those who complained about Zara's new ad might be trying to protect the nation's image but their actions also show "over-sensitivity and a lack of cultural confidence". It shows they are so afraid of being hurt that they tend to take a defensive gesture against any move they do not understand, it added. "Cultural confidence is just being promoted by the leadership of this country, and tolerance is an essential part of it. Only when we learn to tolerate each other in terms of aesthetics will cultural confidence be owned by everyone," said the editorial published on China's Daily's website on Sunday. "Besides, the model in the incident, Li Jingwen, is famous, having worked professionally for a long time. To those who are unsatisfied with her freckled face, that might be hurtful to her, too, although they might not mean any harm.   Source:  
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 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 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:
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:
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 :