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Amazon Making Progress With Prestige Skin Care, Provides Rich Content To Engage Consumers

January 9, 2017: 12:00 AM EST
Amazon continues to build out its offering across new categories and its Amazon Luxury Beauty store shows it will be a contender in premium segments. The company recently added a page targeted at prestige shoppers - Amazon Professional Skin Care -that provides a range of ‘tools and kits to help you develop a complete daily care regimen.’ Amazon offers simple to use filters (shop by concern, expert advice…) along with videos and educational features that engage consumers. Color cosmetic players have for a while offered rich and engaging content but skin care brands have lagged and Amazon is moving to plug the gap - content on the Amazon page exceeds what is available at retailer websites and many beauty blogs.  It also looks to be winning over large brands that were previously dismissive. Elizabeth Arden recently became an official distributor on Amazon’s Luxury Beauty store, a move that will give the online retailer credibility. [Image credit © Innocentj]
Homa Zaryouni, "Amazon Makes Strides in Skin Care", L2 Daily, January 09, 2017, © L2 Inc.
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Beauty Brands Find Risk and Reward In Selling At Sephora

January 8, 2017: 12:00 AM EST
Sephora now has more than 2,300 stores worldwide and some beauty brands are increasingly finding the store challenging to deal with. The store, which is owned by LVMH Moët Hennessy Louis Vuitton SE, seems to favor LVMH brands, and also has a growing line of private label products that can give it an advantage. An assessment by The Wall Street Journal found that in the makeup area of a Sephora store, LVMH’s beauty brands can occupy nearly half of the shelf space, even though they have only 15 beauty brands compared with over 200 the retailer typically carries. Beauty brands are responding by trying to secure alternate outlets. Estée Lauder has promoted its own website as well as its MAC Cosmetics stores, while L’Oréal has opened stores for its Urban Decay brand. Some brands are also selling in lower market stores such as Ulta Salon Cosmetics & Fragrance Inc., a risky practice that can remove allure from a brand.  Brands selling at Sephora are also vulnerable to its own label Sephora Collection line. Sephpora can use its sales data to spot fast rising niches and then develop price competitive alternatives.  [Image credit © Caia Image]
Khadeeja Safdar and Sharon Terlep, "As Sephora Adds Products, Rivalry Heats Up at Its Stores", Wall Street Journal, January 08, 2017, © Dow Jones & Company, Inc.
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L'Oreal
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Shiseido Eyes Women Occupying 40 Percent Of Management Positions By 2020

January 6, 2017: 12:00 AM EST
Japanese cosmetics company Shiseido said it aims to have 40 percent of its management positions filled by women by 2020. In January 2017, the company has achieved its 30-percent objective. In Japan, the government wants 30 percent of leadership positions to be filled by women by 2020. [ Image credit: © Shiseido ]
"Japan's Shiseido aims for 40% female management by 2020", Nikkei, January 06, 2017, © Nikkei Inc.
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Shifting Power Balance Between Brands And Retailers As Brands Diversity Channels

January 6, 2017: 12:00 AM EST
For decades, brands and traditional retailers have been joined at the hip, but that mutual dependency is starting to change. Consumers are purchasing ever more online: in 2016 and for the first time more shoppers (51 percent) made purchases online, up from 48 percent a year earlier (ComScore). And the range is extending, with e-commerce pushing into previously largely untouched categories, such as groceries and prestige. Some retail stores are having to scale back – this week Sears Holdings announced it would close nearly 150 Kmart and Sears outlets, while Macy’s plans to shut 68 stores by the middle of 2017, but for the most part, brands seem indifferent. Brands are increasingly investing to reach consumers wherever they can find them. "Ultimately, we don’t care how or where consumers get our products," said Sarah Ortman, National Associate Director at Clorox. "We just want to be where they are." As brands diversity their consumer contact points and make ever more sales in non-conventional channels, prospects for traditional stores continue to decline. [Image credit © Hybrid Images]
Ilyse Liffreing, "Do brands care if bricks-and-mortars survive the Amazon era?", Campaign Live, January 06, 2017, © Haymarket Media Group Ltd.
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Clorox
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Mass And Premium Continue To Drive Growth In Color Cosmetics

January 5, 2017: 12:00 AM EST
According to Euromonitor International, the color cosmetics market was worth US$57 billion globally in 2015, driven by growing incomes for women in growth markets like India and China. Nearly two-thirds of the market (64%) was mass products in which consumers came from across the income spectrum, with some consumers limited to the mass market through income constraints and others choosing mass options over premium, with a new wave of mass “fast fashion” cosmetics brands that align with trends and rely on high volumes. Premium continues to grow faster than mass, and Euromonitor expects to see a CAGR for the premium segment of 4% over the next five years, versus 3% for mass. It also expects North America to be the first majority-premium color cosmetics market by 2020. The color cosmetics market will continue to encounter broad consumer megatrends, for example in the form of sustainability and healthy living. And customization remains a major opportunity for brands in this category, with brands catering for different skin tones, religions and cultures. [ Image credit: © Image Source
Hannah Symons, "Reinventing Colour Cosmetics through Novel Growth Concepts", Euromonitor International, January 05, 2017, © Euromonitor
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Unilever's Premium Skincare Play Could Improve Margins And Valuation

January 5, 2017: 12:00 AM EST
Industry analysts Trefis believes that Unilever’s move into premium skincare, through a number of acquisitions, will help the company improve its EBITDA margins from a relatively low 18 percent to something closer to those generated by industry rivals. Trefis says that Unilever’s margins have been held down by relatively high marketing costs as a percentage of revenues; a reliance on mass, low-margin products; and increasing costs of raw materials, exacerbated by the impact of Brexit on sterling. A higher-margin, more premium-oriented portfolio will help address some of the pressures, supported by expected growth in the premium skin care segment and Unilever’s attack on costs from adoption of Zero Based Budgeting. Trefis believes Unilever could push up EBITDA margins to around 25 percent within a few years and the company’s valuation could improve by over 20 percent. [ Image credit: © Hybrid Images ]
"Unilever’s Valuation Could Increase By 20% If Its Margins Rise Up to 25%", Trefis, January 05, 2017, © Insight Guru Inc.
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Unilever
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EMEA
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Revlon Names Gwen Stefani As Brand Ambassador

January 4, 2017: 12:00 AM EST
Revlon announced the appointment of celebrity Gwen Stefani as its latest brand ambassador. With the brand planning to feature Stefani in various digital-first campaigns, the pop singer will appear in Revlon’s Choose Love campaign, which will run on broadcast, digital, and social media. Also, the brand’s designed-for-mobile website offers behind-the-scenes looks and content from the celebrity’s campaigns. Content will also be available on Facebook, Twitter, Instagram, YouTube, and Snapchat.
Rakin Azfar, "Revlon will Feature New Brand Ambassador Gwen Stefani in Digital Content", Mobile Marketer, January 04, 2017, © Napean LLC
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Kérastase And Withings Unveil Smart Hairbrush At CES

January 4, 2017: 12:00 AM EST
At the 2017 Consumer Electronics Show in Las Vegas, professional hair care brand Kérastase, together with connected health company Withings and L’Oréal’s Research and Innovation Technology Incubator, unveiled its new smart hairbrush - the Kérastase Hair Coach Powered by Withings. Fitted with advanced sensors and incorporating L’Oréal’s signal analysis algorithms, which score hair quality and track the impact of hair care routines, the hairbrush received this year’s International CES Innovation Award. Sensors capture sounds, the force applied when brushing, brushing patterns and the number of brush strokes, and whether the hair is wet or dry. The collected data are sent to the app via Wi-Fi or Bluetooth to a dedicated mobile app. Using external data, such as weather conditions, the app tracks the way the user cares for her hair and provides personalized tips and Kérastase product recommendations. It will be available around mid-2017 at select Kérastase hair salons, the brand’s website and through Withings’ online sales and distribution channels, for below $200. [ Image credit: © Keith Berson ]
"Kerastase and Withings Unveil World’s First Smart Hairbrush at CES 2017", L’Oreal, January 04, 2017, © L’Oréal
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L'Oreal
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Unilever, Coca-Cola And Lush Feature In Warc Brand Purpose Readership List

January 2, 2017: 12:00 AM EST
Warc’s annual readership data indicates that a number of brands featured in articles on purpose-driven marketing over the last year. Warc said that Lush’s discussion of its mission and strategy was a particularly popular article, and the company says that it’s important to be both open and honest about where it buys its ingredients, how it runs its business, and the claims it makes. Unilever also featured, with one talking about its initiatives in brand activism, which goes beyond “beautiful narratives”. It also featured in another, in a report from the Guardian Changing Media Summit 2016 on how Unilever and Coca-Cola build brand purpose. [ Image credit: © Panostock
"Best of 2016: Purpose", Warc, January 02, 2017, © Warc
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Unilever
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Burt’s Bees Extends Product Line Into Functional Foods

January 2, 2017: 12:00 AM EST
Personal care company Burt’s Bees has entered the functional food market with protein shakes targeted at consumers seeking beauty from "the inside out." The company that has specialized for three decades in selling natural lip and skincare products has developed three protein shakes – Daily Protein, Protein +Gut Health with Probiotics, and Protein + Healthy Radiance with Antioxidant Vitamins A, C & E – that provide 15 grams of protein per serving from peas, rice, flaxseeds, sunflower seeds, and oats. General Manager Jim Geikie said the move into functional foods “is a natural extension for us.” The shakes range in price from $29.99 to $39.99. Each contains 16-18 servings per tub. [ Image credit: ©  Burt's Bees  ]
"Burt's Bees Enters New Category with Plant-Based Protein Shakes", News release, Burt's Bees, January 02, 2017, © Burt's Bees
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Clorox
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The World’s Consumers Really Love Coca-Cola

December 29, 2016: 12:00 AM EST
Consumer researcher Kantar Worldpanel reports that Coca-Cola is the most popular brand in the world, based on the number of households that buy it and the frequency of purchases. Another soda brand, Pepsi, made the top ten list (#6), thanks in part to its popularity in Egypt. Filling out the top five brands were Colgate toothpaste, Lifebuoy soap, Maggi brand soups and noodles (Nestlé) and Lays potato chips (PepsiCo). The Kantar analysis covered 300 billion shopper decisions, 74 percent of the world's population, 15,000 brands, and 44 countries. [ Image credit: © Wikipedia ]
Kerry Close, "These Are the 10 Most Purchased Brands in the World", Time, December 29, 2016, © Time Inc.
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Colgate
Unilever
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Worldwide

HUL Launches Ayurvedic Range To Combat Patanjali And Ignite Sales Growth

December 29, 2016: 12:00 AM EST
Patanjali has become a significant rival to Hindustan Unilever in the Indian personal care market since it was founded a decade ago, and HUL is launching a number of ayurvedic products aimed at better competing with this relatively new competitor. It will introduce some 20 products, including oral care, skin care and hair care items, under the Ayush brand, launched in 2001 as a premium line but now positioned for the mass market. Responding to Patanjali's growth, other global players have been launching ayurveda and herbal products opportunity, including L'Oréal with its Garnier Ultra Blends hair care products with 'natural ingredients'. Given the Indian market’s price sensitivity, analysts believe that herbal products there are more likely to succeed in the mass market, and HUL will hope this new initiative will help ignite lackluster sales growth. [ Image credit: © Stefanie Grewel
Sagar Malviya, "Hindustan Unilever launching a raft of Ayurvedic products to counter Patanjali", Economic Times, December 29, 2016, © Bennett, Coleman & Co. Ltd.
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L'Oréal To Benefit From Global Cosmeceutical Market Growth

December 22, 2016: 12:00 AM EST
Highlighting a recent report from Research and Markets that projects global cosmeceutical market CAGR of 5.95% over the next five years, industry analysts Trefis outline how L’Oréal is well placed to take advantage. Market growth is expected to be driven by consumer trust in physician recommendations, the aging global population, the growth in demand for premium products, and growth in the global beauty and personal care industry as a whole. Trefis expects L’Orêal’s Active Cosmetics division, the company’s fastest-growing segment, to gain from this growth, helped by its partnerships with healthcare professionals, which supports innovation in this area, and the company’s distribution framework - a multi-channel approach incorporating digital tools. L’Oréal also sells products in this category through dermacenters, e-commerce and travel retail. [ Image credit: © Jon Feingersh Photography Inc.
"Here’s How L’Oreal Stands To Gain From The Growing Cosmeceuticals Market", Trefis, December 22, 2016, © Insight Guru Inc.
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L'Oreal
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Latin America
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China
India
Japan
Brazil

P&G’s Small Steps On Preservative Disclosure – A Help, But Still Falling Short

December 22, 2016: 12:00 AM EST
In a nod to greater disclosure, P&G issued a press release to announce a preservative tracker to let consumers know which preservatives are included in different categories of P&G’s products, such as baby wipes, skin care, and hair care products. The company issued a table of preservatives by category and a tool to allow consumers to search by ingredient or by product type. In its updated policy statements, P&G said it no longer uses triclosan in any products and is in the process of exiting triclocarban, which has been linked to hormone disruption. P&G is also phasing out from its baby wipes the chemical phenoxyethanol that has been linked to nervous system problems in infants, allergic reactions and eczema, but will continue to use it in some skin care and hair care products. Still, the company is not disclosing this information on packaging, remains quiet about other ingredients, notable ingredient “fragrance” (or “parfum”) that can include around 3,000 chemicals, some of which are linked to cancer.  Greater disclosure is a positive move and will help P&G avoid widespread consumer disapproval, but lacks real conviction and doesn’t position it well for the broader push towards naturals.  [ Image credit © Jason Lander ]

 
Dev Gowda, "Statement on Procter & Gamble’s New Preservative Tracker in Personal Care Products", U.S. PIRG, December 22, 2016, © UNITED STATES PUBLIC INTEREST RESEARCH GROUP
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Procter & Gamble
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Sephora To Revamp Underperforming Fragrance Category Using Education and Engagement

December 21, 2016: 12:00 AM EST
Sephora is looking to revamp its fragrance business, building its strategy around engagement and education. Fragrance is an underperforming category at Sephora where it accounts for about 10 percent of sales, lagging behind beauty and skincare. CEO, Calvin McDonald, recognizes that Sephora’s current offering fails to differentiate and that the category generally has been “commoditized by discounts.” Working on the insight that buying a fragrance is both a bewildering and personal experience, Sephora is looking to engage and educate consumers so they feel empowered to buy. Online it has buying guides to help consumers clarify their perfume profiles and in-store it has set up demonstrations.  “We know that finding a fragrance is a personal experience, but it needs to be simplified and smart as it can be an overwhelming selection process,” said Brooke Banwart, VP of fragrance merchandising at Sephora. The company has been experimenting with “InstaScent” stations (previously called “Poof”) that let customers smell isolated notes to figure out which elements of fragrances they prefer and to learn about different “scent families.” The approach is similar to its beauty strategy where it uses video tutorial stations to help customers experiment with and perfect different makeup looks. 
 
Fragrance generally looks set for a shift to demystify and simplify purchasing, with valuable lessons likely available from other categories such as wine that has for years worked to make buying fun (and not stuffy) and shows ongoing innovation with different ways to purchase.  [ Image credit © David Goldman ]
Hilary Milnes, "How Sephora is Revamping its Fragrance Category", Glossy, December 21, 2016, © Digiday Media
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Global Male Grooming Market Set For Strong Growth Says PMR

December 20, 2016: 12:00 AM EST
Persistence Market Research believes that the $54 billion male grooming category will grow at a CAGR of 8.4 percent through 2024, and Europe, with almost 40 percent of the global market, will stay the most attractive region for the category. Germany, France, and the UK account for half of the European sales. Shave care and fragrances will be the top segments in North America, and China will drive growth in Asia. Global growth is being supported by e-commerce, which will account for over $12 billion of the additional sales through 2024. PMR expects global sales of men's shave care products to be more than $40 billion by 2024, hair care products will represent about 10 percent of the category, but men’s toiletries will lose share. PMR believes P&G will remain a dominant player globally, with over 10 percent share, but local players will “collectively dominate” with nearly one-third of the market, and this will encourage acquisitions by global players. [ Image credit: © Old Visuals ]
"Promises Fulfilled: Men's grooming is booming", Happi, December 20, 2016, © Rodman Media
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Procter & Gamble
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A Busy Year For Sephora

December 19, 2016: 12:00 AM EST
2016 has been a busy year for Sephora. Online, it has two new bot-powered beauty tools for Facebook's Messenger. The new Sephora Reservation Assistant allows customers to book appointments for makeovers at Sephora stores, and Color Match is a shade matching extension for the Sephora Virtual Artist bot. It has also been working to provide more of an ominchannel experience for shoppers, and is also rumored to be looking to expand its physical footprint too, with a store outlet in London’s Westfield shopping center. Further afield, it has see growth in India and opened a new distribution center in Poland. In Brazil, it is expanding distribution by rolling out its products in El Corte Ingles stores. [ Image credit: © Folio Images
Louise Prance Miles, "2016 in review: Sephora – the digital disruptor", Global Cosmetics News, December 19, 2016, © Global Cosmetic Media Limited
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Sustainability Remained A Key Theme For Unilever In 2016

December 19, 2016: 12:00 AM EST
If there’s one message that Unilever is pushing at the moment above all others, it’s sustainability, and 2016 provided plenty of evidence, with a raft of corporate social responsibility initiatives and sustainability awards. With another 400 added during the year, it now boasts 600 zero waste to landfill sites, and it announced two major campaigns, one aimed at removing sexist and stereotype-based advertising and one from Dove to promote diversity and realism in marketing. Unilever admits it’s not all about altruism, but a strategic necessity. It claims that its brands that are in line with its sustainable living plan are growing faster. Its public image was, however, damaged as a result of a spat un the UK with Tesco over Brexit-related pricing. Also this year, it announced a new factory in Cuba, opened a new one in Ethiopia, is looking for sites in Colombia, and investing more in Nigeria. But, Unilever was relatively quiet on the acquisition front, although the Dollar Shave Club deal caused quite a stir. [ Image credit: © Nigel Riches
Georgina Caldwell, "2016 in review: Unilever – set on sustainability", Global Cosmetics News, December 19, 2016, © Global Cosmetic Media Limited
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Unilever
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P&G's Oral-B Brand Sees Potential In China's Electric Toothbrush Market

December 19, 2016: 12:00 AM EST
Procter & Gamble’s Oral-B oral care brand is optimistic about the potential for electric toothbrushes in China, supported by increased awareness of oral hygiene and rising incomes. The brand recently launched an intelligent electric toothbrush, the iBrush, and Oral-B's electric toothbrush products have grown between two and three times each year for the last three years. Most sales are online. However, market penetration remains low, with just two percent of Chinese residents using electric toothbrushes. Chinese toothpaste brand Saky believes the Chinese oral care market as a whole will reach 500 billion yuan within 15 years. [ Image credit: © Philippe Roy ]
Zhu Wenqian, "Oral-B focuses sales on China's rising middle class", China Daily, December 19, 2016, © China Daily Information Co (CDIC)
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Procter & Gamble
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China

New Beauty Company Glansaol Acquires Three Brands

December 19, 2016: 12:00 AM EST
Glansaol, a new US-based prestige beauty and personal care company formed through a partnership between industry veteran Alan T. Ennis and Warburg Pincus, a private equity company, announced three acquisitions: Laura Geller New York, a prestige color cosmetics brand known as the pioneer of the "baked" makeup category; Julep, a prestige color cosmetics and skincare brand; and Clark's Botanicals, a premium skincare brand. Glansaol’s owners aim to make it a global company through acquisitions, building a portfolio of premium and complementary brands. [ Image credit: Neil Guegan
"Glansaol Established as New Prestige Beauty & Personal Care Company", PR Newswire, December 19, 2016, © PR Newswire Association LLC
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Gillette Launches Digital And Social Media Campaign Aimed At Harry's Razor

December 15, 2016: 12:00 AM EST
Procter & Gamble Co.'s Gillette shaving razor brand launched “Welcome Back,” a digital and social media marketing campaign aimed directly at online rival Harry's Razor Co. According to Gillette, most men who tried Harry's come back to using Gillette razors; however, Harry's claimed its own data show 81 percent of the 375,000 customers who subscribed to the company have bought more products. After Harry's and Dollar Shave Club launched their razor businesses, Gillette’s share of the U.S. Market dropped more than 10 percentage points, according to Euromonitor.
Sharon Terlep, "P&G’s Gillette Swipes at Harry’s in New Ad Campaign", Wall Street Journal, December 15, 2016, © Dow Jones & Company, Inc.
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Unilever South Africa Names New Axe Brand Manager

December 13, 2016: 12:00 AM EST
Unilever said it has promoted Asad Malik to manager of the company’s Axe deodorants brand in South Africa. In 2013, Malik was promoted to brand manager of Unilever’s desserts business in the country. He was promoted to lead the Walls Ice Cream business in 2015.
"Unilever Promotes Asad Malik to Lead Deodorant Category", Branding in Asia, December 13, 2016, © Branding in Asia Magazine
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Unilever
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EMEA
Middle East- Africa
South Africa

L’Oréal’s Beauty Squad Is Yet Another Example That Authenticity Pays Off Online

December 12, 2016: 12:00 AM EST
A review of how L’Oréal Paris in the UK leveraged relationships with video bloggers underscores the benefit of a shrewd but straight up approach. A few months ago the company worked with five vloggers that combined have 5.5 million views with the aim of working with Kristina Bazaan, the brand’s global digital influencer, to boost the brand and maintain its position as the ‘go-to digital beauty brand.’ Rather than work with one or two vloggers that have wider reach, working with the five members of the Beauty Squad allows L’Oréal Paris to better reach a range of ages and ethnicities. Also, while each vlogger has a smaller base, they are selected for their knowledge and expertise. L’Oréal hopes that by building long-term relationships and seeking honest and comparative reviews it will manage to convince consumers over the long haul.  [Image credit © Philipp Nemenz]
"Here’s How L’Oreal Is Gaining Competitive Advantage With Its ‘Beauty Squad’ ", Trefis, December 12, 2016, © Insight Guru Inc.
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L'Oreal
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Aldi UK To Launch New Anti-Ageing Skin Line For A Limited Period

December 12, 2016: 12:00 AM EST
Aldi, the German discount supermarket, is launching a new anti-ageing skincare line in the UK, called Lacura VITACELL. It’s aimed at competing with premium skincare products, and contains Complex TCR3® to prolong the life of skin cells, as well as stem cells from sea plants to promote skin elasticity and structure. The products will be on the shelves as a Specialbuy in early February 2017 with limited supply. [ Image credit: © Cadalpe ]
"Aldi Launches Premium Anti-Ageing Skincare Range", International Supermarket News, December 12, 2016, © Retail Magazine
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Kao Sets Out 2030 Vision And 2020 Intermediate Goals

December 12, 2016: 12:00 AM EST
Kao Group has published its 2030 vision, together with mid-term goals for the four years spanning Fiscal 2017 to 2020. Kao says it wants to combine profitable growth with making a contribution to global sustainability. Its 2030 vision covers a “distinctive corporate image”, being a highly profitable global company, and providing strong stakeholder returns. Its financial objectives include exceeding JPY2.5 trillion in net sales, with JPY 1.0 trillion from outside Japan, an operating margin of over 17 percent, and a return on equity of more than 20 percent. Its medium-term (K20) goals include a commitment to “fostering” the corporate image (one that embodies the concept of Kirei, a word that evinces attributes such as health, purity, beauty and fairness); a commitment to profitable growth, including net sales CAGR of +5 percent and an operating margin of over 15 percent; and a commitment to stakeholder returns, including continuous growth in cash dividends, improvement in employee benefits and conditions, and measures to tackle social issues, as well as benefiting customers. [ Image credit: © Moodboard ]
"Kao Group Announced New Mid-term Plan "K20"", Kao, December 12, 2016, © Kao Corporation
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Kao
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Worldwide
Asia-Pacific
Japan

SC Johnson Wins Best Companies To Work For Honors In China

December 9, 2016: 12:00 AM EST
Household care company SC Johnson said it has been selected as one of the 29 Best Companies to Work for in Greater China by the Great Place to Work Institute. Marking the first time for the company to win a Best Workplace award in China, the recognition had previously been received by some of SC Johnson's units, including SC Johnson Italy, Germany, and Poland.
"SC Johnson China Named a 2016 Best Workplace", SC Johnson, December 09, 2016, © S. C. Johnson & Son, Inc.
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SC Johnson
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China

Procter & Gamble Names Celebrity Hairstylist Polko Aussie Brand Ambassador

December 8, 2016: 12:00 AM EST
Procter & Gamble's haircare brand Aussie announced the appointment of celebrity hairstylist Laura Polko as brand ambassador. Well-known for her advertising, editorial, and hairstyling skills and successes, Polko will share her styling tips and insights on how to create beautiful and easy-to-do look and hairstyle. She will also offer tips on how to use Aussie products as “the foundation for looking one's best” and creating any hairstyle.
"Aussie Announces Celebrity Hairstylist Laura Polko as Brand Ambassador and Spokesperson", Business Wire, December 08, 2016, © Business Wire, Inc.
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Procter & Gamble
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United States of America

Beauty And Personal Care Market Expected To See Increase In M&A Deals, Report Says

December 8, 2016: 12:00 AM EST
According to an A.T. Kearney report, the beauty and personal care market is due for a new wave of consolidation, with merger and acquisition activity forecast to speed up. Results of a detailed review of 214 M&A deals in the beauty and personal care market completed in 2010 to 2016 are presented. The two factors driving M&A activity in the BPC sector are slow or stagnant growth in the market’s core segments and the highly concentrated state of the industry. Other main drivers include access to consumers, access to innovation, and access to distribution channels. [ Image credit: © Wikipedia ]
Hana Ben-Shabat and Andrea Szasz , "Shop or Drop: The Inevitable Path for Growth in Beauty", Report, A.T. Kearney, December 08, 2016, © A.T. Kearney Holdings Limited
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L'Oreal
Other
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Worldwide

New Executives At Hain Celestial Units

December 7, 2016: 12:00 AM EST
Organic and natural products company Hain Celestial Group has named top executives for its Pure Protein Corporation, and its U.S. and U.K. units. The company appointed Gary Tickle as chief operating officer of the U.S. unit, along with Jay Erskin as chief supply chain officer and Jamie Fay as CFRO. James Meiers is the new CEO of Hain Pure Protein Corporation, and James Skidmore is the new CEO of Hain Celestial United Kingdom. Tickle most recently served as CEO of Nestlė Infant Nutrition North America. [ Image credit: © Hain Celestial ]
"Hain Celestial Announces Executive Appointments", News release, Hain Celestial, December 07, 2016, © Hain Celestial
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Beauty Brands Choosing Humor To Reach Consumers

December 5, 2016: 12:00 AM EST
The beauty industry is tapping into the power of humor in the same way that other consumer product categories have done, recognizing that Millennials are rejecting some of the characteristics of traditional beauty advertising, including promoting what some see as an unattainable body image, and demanding authenticity and transparency. Also, the established beauty companies are facing intensifying competition from emerging independent brands and need to use new approaches to retain their consumer base. Humor has been used particularly for products aimed at men, and it helps generally to make the beauty category more accessible, alongside other unconventional marketing approaches, such as Dove’s concept of real beauty. [ Image credit: © Sandro Hyams ]
Nick Dormon, "Beauty Just for Laughs?", Beauty Packaging, December 05, 2016, © Rodman Media
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Mary Kay Appoints Julia Simon As Chief Legal Officer And Corporate Secretary

December 5, 2016: 12:00 AM EST
Beauty care brand and direct-selling company Mary Kay Inc. announced the appointment of Julia A. Simon as chief legal officer and corporate secretary. Simon will be a member of the company’s executive committee and will oversee Mary Kay’s legal, risk management, corporate communications, and corporate social responsibility operations. With more than 25 years of legal experience in both private practice and corporate positions, Simon first joined Mary Kay in 1995 as an employment lawyer.
"Mary Kay Inc. Names Julia Simon Chief Legal Officer And Secretary", Mary Kay, December 05, 2016, © Mary Kay
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P&G Wins FMCG Market Penetration Contest In China In 2016

December 2, 2016: 12:00 AM EST
A survey by Kantar China finds that Procter & Gamble and two big Chinese dairy firms had the greatest penetration of the Chinese fast moving consumer goods (FMCG) market in 2016. Eighty-eight percent of urban families bought at least one item from Inner Mongolia Yili and China Mengniu Dairy, a total of 146 million Chinese families living in cities. P&G’s market penetration reached 93.4 percent with its lineup of dozens of FMCG brands like Crest, Head & Shoulders and Oral B. Fourth on the list was Swiss-based food manufacturer Nestlė, followed by Tinyi Holding’s Master Kong, an instant noodle brand. [ Image credit: ©  Procter & Gamble ]
Celine Ge, "P&G, Yili and Mengniu Top Brands in Reaching Chinese Consumers, Survey Finds", South China Morning Post, December 02, 2016, © South China Morning Post Publishers Ltd.
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Korean Beauty Brands Riding The Wave Of K-Pop Interest in China

December 1, 2016: 12:00 AM EST
A survey from FT Confidential Research on the Chinese cosmetics market found that South Korean brands were catching US and European labels, especially among young consumers, reflecting their interest in K-pop culture. L’Oréal is still the most popular brand, but the popularity of US and European brands generally is waning as Korean brands strengthen their hold. Popular Korean brands include Laneige and Amorepacific, and western brand companies are not ignoring this trend. LVMH has invested in Korean cosmetics company Clio, and last year Estée Lauder acquired a stake in Have & Be, which owns the DR Jart+ and Do The Right Things brands. Chinese cosmetics purchasers are particularly interested in BB and CC skin creams, but the cosmetics market generally is seeing strong growth in China, helped by the Government scrapping the 30 percent consumption tax on mass cosmetics products and halving it for premium items. E-commerce was the favored channel for younger shoppers, but the over-35s still prefer to buy in malls and supermarkets. [ Image credit: © Robert Harding ]
"South Korean cosmetics a hit among young Chinese as K-pop booms", Nikkei, December 01, 2016, © Nikkei Inc.
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Kantar Takes A Look At Oral Health Trends In Europe

December 1, 2016: 12:00 AM EST
Europeans tend to rely on daily brushing for their oral health regime, sometimes supplemented with mouthwash and interdental products. Kantar Worldpanel says Spanish consumers have the most diversified approach, using more than one product in 44 percent of occasions, whereas 82 percent of the French only brush their teeth. The main reason for brushing is breath freshening, but the Spanish use it primarily to prevent the build up of tartar and plaque. Whitening is not a major reason for using toothpaste in Europe, despite the proliferation of products claiming that benefit. Interdental products are used mainly to clean between teeth and for healthy gums. Sensitivity is a common problem with teeth that develops with age, linked to over-brushing and acidic drinks. Sustainable packaging is gaining more attention in Europe, with Colgate-Palmolive committing to 100% recyclable packaging. For toothbrushes, manual continues to be favored over electric, and Canadean found that just 10 percent of Europeans use digital tools to as part of the oral hygiene regimen. [ Image credit: © H Jones ]
Imogen Matthews, "Eurotrends: Is Oral Care Connectivity A Cure for Cavities?", Happi, December 01, 2016, © Rodman Media
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Unilever's Anti-Marks Antiperspirants Launch In The US

December 1, 2016: 12:00 AM EST
Unilever has launched products in the US featuring its new Anti-Marks Antiperspirant Technology, designed to help prevent white marks and yellow stains on white clothes. Already available in 40 markets, the US launch includes products from five brands: Degree Men®, Degree Women®, Dove®, Dove Men+Care® and AXE®. Unilever’s Senior Director of Deodorants and Men's Grooming, Matthew McCarthy, said that consumers are “tired of unintentionally ruining their favorite white t-shirts or leaving behind embarrassing marks in the dressing room”. The launch, with products hitting the shelves in December 2017, will be supported national advertising, in-store marketing, social media and PR. [ Image credit: © Unilever United States, Inc. ]
"Is a Common Fashion Faux Pas Close to Extinction? Unilever Deodorant launches New Anti-Marks Antiperspirant Technology", PRNewswire, December 01, 2016, © PR Newswire Association LLC
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Unilever Applies Zero-Based Budgeting To Adjust Operational Margins

November 30, 2016: 12:00 AM EST
Unilever says it is further applying zero-based budgeting to reset its operating margin goals. The new target for the “core operating margin” will be between 40 and 80 basis points a year from 2017 to 2019. The company’s current goal is annual growth of 20 to 40 basis points. CFO Graeme Pitkethly said the company will continue to improve the mix of the business with “margin-accretive innovation” and a focus on margin in the ice cream and home-care categories. Zero-based budgeting cost savings and savings from organizational changes should be about €1 billion by 2019. [ Image credit: © Unilever ]
Dean Best, "Unilever Sets New Margin Target with Help from Zero-Based Budgeting", Just-Food, November 30, 2016, © just-food.com
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Avon Strategy - Get Leaner And Double Down On Beauty

November 29, 2016: 12:00 AM EST
Following its recent restructuring, Avon’s broad strategy continues to clarify. In its latest investor presentation the company emphasized its three-pronged approach: drive out costs through improving its operating model and supply chain (target savings of $350MM), strengthening its balance sheet and investing in grow ($150MM allocated to media investments and social selling and $200MM invested in IT and service model evolution). The company is strongly focused on beauty (74% of sales) and intends to concentrate on 40 brands centered in skincare, personal care, fragrance and color. To boost sales, Avon is promising to invest in innovation, improve representative engagement and leverage social media in selling, which it sees as strongly synergistic with its direct selling model. 
"Avon Presented at Bank of America Merrill Lynch’s Leveraged Finance Conference (Presentation)", Avon, November 29, 2016, © Avon Products, Inc.
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Oriflame Refocuses Its Strategy On Skin Care and Wellness

November 28, 2016: 12:00 AM EST
Oriflame, the Swedish direct selling brand, is looking to narrow its focus to concentrate mainly on skincare and wellness, supported by cosmetics and fragrance products. It will focus less on personal care, but the change could take some time. It hopes eventually to increase the share of skincare and wellness from 34 percent to 50 percent of its total sales. The decision reflects what the brand sees as global trends, including the growth of interest in wellness. A study by KPMG together with the Federation of Indian Chambers of Commerce and says the direct selling industry in India could grow to Rs.64,500 crore in revenue by 2025 but, at just Rs 7,500 crore in 2013-14, accounted for less than one half of a percent of total retail sales in India. [ Image credit: © India Picture ]
Harveen Ahluwalia, "Oriflame to bet big on skincare, wellness in new strategic push", Livemint.com, November 28, 2016, © HT Media Ltd
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Slow Moving Tesco Will Finally Remove Microbeads From Own-Branded Products

November 24, 2016: 12:00 AM EST
Acknowledging that it has been slow to react to growing worries about microbeads in personal care and household products, Tesco announced it will phase them out from all its own brand products before year-end. Ten of its personal care products and 10 household products will be affected. Tesco claims it is responding to growing consumer concerns over long-term environmental impact that microbeads have in oceans and ecosystems generally. It is encouraging suppliers to use natural alternatives, such as ground coconut shells that can be effective in face scrubs, or removing microbeads entirely. UK ministers indicate that microbeads (actually tiny pieces of plastic) will be banned from personal care products by the end of 2017. It is currently unclear if other categories will be affected. [ Image credit (C) Tesco plc ]
Adam Vaughan, "Tesco to phase out microbeads from its products by end of 2016", The Guardian, November 24, 2016, © Guardian News and Media Limited or its affiliated companies
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Lack Of Authenticity Trips Up Luxury Retailers But Lets Sephora Shine In Consumer Engagement

November 22, 2016: 12:00 AM EST
Research by Shareablee released in advance of Black Friday and the start of the biggest shopping season of the year shows Sephora is considerably outperforming other retailers on social media this year. Sephora had 2.4 million consumer interactions (which includes reactions, shares, comments, retweets, favorites) across Facebook, Twitter and Instagram, with engagement on Instagram especially important. This contrasts with big box and luxury retailers that all showed declines in social engagement, with Homegoods down 74%, Barneys off 50% and Bergdorf Goodman down 39% compared to last year. Shareablee CEO and Founder, Tania Yuki puts the shift down to greater consumer skepticism about retailer engagement attempts: “The consumer is much more skeptical of the retail season this year, and are rewarding only those retailers truly making an effort to be authentic and to add value to their shopping and research…”. [Image credit © Wonwoo Lee ]

 
"Beauty Retailer Sephora Leads Consumer Engagement on Social in the Run Up to Black Friday as Many Major Retailers Struggle to Capture Consumer Interest", PRNewswire, November 22, 2016, © PR Newswire Association LLC
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L'Oreal Set To Reap Rewards Of China's Beauty Sales Growth

November 22, 2016: 12:00 AM EST
Market analysts Trefis highlighted a Morgan Stanley report on China’s beauty products market, which the authors believe will become the world’s largest. It was L’Oréal’s second largest market in 2015, behind the US, and the company’s leadership in digital gives it an advantage in a market where e-commerce sales of beauty items rose from 3% of the total beauty market in 2010 to 19% in 2015. Online sales account for over 20% of the company’s Consumer Products division’s total sales in China. Morgan Stanley notes the growing demand for premium cosmetics by Chinese consumers online or through travel retail channels, and L’Oréal’s luxury products division is well placed to capture this sales growth. Trefis said that skin care is L’Oréal’s most valuable segment and it expects the company to expand its share in global skin care, with China playing a major part in that. [ Image credit: © Lost Horizon Images ]
"Here’s How L’Oreal Can Benefit From The Booming Beauty Market In China", Trefis , November 22, 2016, © Insight Guru Inc.
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P&G's Gillette Brand Trying To Raise Its Game

November 22, 2016: 12:00 AM EST
Procter & Gamble Co. is to revamp its Gillette shaving brand with new products and packaging in an effort to contend with intensifying competition in the category. In contrast, the company’s electric razor brand, Braun, is growing well, boosted by innovation. For Gillette, the focus will be on simplifying the brand architecture and making it easier for shoppers to find and buy the products, online and offline. Not only is Gillette facing competition in the US from direct-to-consumer startups like Dollar Shave Club and Harry’s, but it's also seeing fewer mean shaving, or less often. Gillette launched its own subscription-based shave club in 2015. Going forward, Gillette is launching a three-blade disposable razor in Latin America, hoping to get men using twin blades to trade up, and increasing Gillette’s exposure with seasonal tie-ins, such as using Star Wars packaging over Christmas. [ Image credit: © Soren Hald ]
Barrett J. Brunsman, "P&G launching major revamp of global product line as competition heats up", bizjournals.com, November 22, 2016, © American City Business Journals
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Unilever Africa Replaces Four Directors Who Resigned Recently

November 21, 2016: 12:00 AM EST
Four board members in Unilever’s East & West Africa unit resigned within a month of each other this fall and were replaced almost immediately. Moses B. Amao (customer development director), Joseph Nee-Amahtey Hyde, Franklyn Manu, and Charles Alexander Cofie all resigned effective in October and November. Unilever did not specify the reason for the resignations in a letter to shareholders. The four were replaced by Edward Effah (Fidelity Group), Edith Dankwa (Business Times Africa Magazine), Philip Sowah (Afriwave Telecom Ghana) and Joseph Z. Amuna, supply chain director, Unilever Ghana. [ Image credit: © Unilever ]
Vivian Kai Lokko, "Unilever appoints new board members after four resign", Citifmonline, November 21, 2016, © citifmonline.com
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L'Oreal And Unilever Sign Open Letter On Climate Change

November 21, 2016: 12:00 AM EST
Over 300 companies operating in the US have signed an open letter to world leaders in support of the Paris Agreement on climate change. Signatories include L’Oréal USA, Seventh Generation, and its new owner, Unilever. The companies fear that ignoring low-carbon imperatives will jeopardize the economy’s growth prospects, and they pledge to help meet the commitments of the agreement. The letter is partly a way of bringing President Elect into the climate change debate in response to signals that Donald Trump will appoint advisors that deny climate change. The letter, posted on lowcarbonusa.org, says that the Paris Agreement will encourage the investment in low-carbon technology required to deliver clean energy and prosperity for everyone. [ Image credit: © Astrakan Images ]
Deanna Utroske, "In an open letter to Donald Trump, cosmetic and personal care corporations stand up for Paris Climate Agreement", Cosmetics Design, November 21, 2016, © William Reed Business Media SAS
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Emphasis On Digitalization And Fragrance Emerge From Natura’s Latest Investor’s Presentation

November 20, 2016: 12:00 AM EST
In its latest investor’s presentation Natura set out its longer term strategic vision that includes a repositioning of the Natura brand, investment to revitalize direct selling and the multi-channel shopping experience. Two notable items on its 2017 priority list include its leverage of digital technology and its upcoming fragrance push. On digitalization, Natura says some 99.65% of all orders are captured digitally with the number of unique visits on its digital assets rising from 7 million to 33 million per year from 2014 to 2016. Its Natura App facilitates online shopping, offers augmented reality and has over 100k active installs.  On fragrance, Natura claims to be the world’s tenth largest fragrance player worldwide, #1 in Brazil for men and #2 for women, and #3 overall in Latin America. Natura believes it is well placed given its quality (it points to research that shows its fragrances are ‘equally or more pleasant than international ones’), bring sustainable innovation (such as 100% organic alcohol and 20% recycled glass) and a distinctive olfactory palette that it believes is a point of difference (in 2016 it emphasized Allysun, Pataqueira, Pipers and Ishink). In an initial fragrance and beauty push Natura is focusing on Latam.
"Natura Day 2016", Natura, November 20, 2016, © Natura
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Procter & Gamble Outlines Its Way Forward

November 18, 2016: 12:00 AM EST
Procter & Gamble outlined its priorities at an Analyst Day. It has completed its massive brand sell-off, exiting around 100 brands, and its attention is now on growing its remaining brands and categories. It has been increasing spending on media and sampling, focusing on "reach and continuity", shifting to television shows with broader appeal and to “higher-reach digital platforms", and spreading its spending more evenly to maintain “top-of-mind awareness year round." P&G is also focused on continuing to improve productivity in marketing spend. The company also stated that the brands it retained are more skewed towards "daily use" categories driven by performance and technology, and the CEO reiterated his early-2016 pledge to look outside the company for talent more than it has in the past. [ Image credit: © Procter & Gamble Company ]
Jack Neff, "P&G Just Unloaded 100 Brands. Now What?", Advertising Age, November 18, 2016, © Crain Communications
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Trump’s Win Presents P&G With Some Unwanted Side Effects

November 18, 2016: 12:00 AM EST
With 59% of sales from outside the U.S., P&G is especially vulnerable to exchange rate changes and the post-election rise in the dollar will compress its sales growth. Since the election a series of currencies have fallen, some of which were already trading low against the dollar. Following the election, Mexico’s peso is down 9 percent, Brazil’s real and Japan’s yen are off 5 percent, the euro is down 4 percent and China’s yuan and Russia’s ruble are both lower by nearly 2 percent. Management expects total sales in the fiscal year ending June 30, 2017 to fall about 1 percent but this period includes sales unaffected by the recent changes in currency values, raising questions about upcoming performance. In an added complication, P&G has become the focus of a sharp rise in stock ownership by hedge funds that is now at a six-year high. Funds might see a devalued stock or possibly a chance to release value through shareholder activism.  [ Image credit (C) Gage Skidmore ]
Alexander Coolidge , "P&G sees Trump fallout, hedge fund interest", Cincinnati.com, November 18, 2016, © www.cincinnati.com
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Target.com Now Offers Dr. Sharp Natural Oral Care Line

November 17, 2016: 12:00 AM EST
From November 2016, Target.com will sell the Dr. Sharp natural premium oral care range. Dr. Sharp, the dentist who created the vegan product line, said consumers can help keep their families healthy by learning about a product’s ingredients. The range covers items for babies through to adults. The products are fluoride-free and also do not contain gluten, alcohol, parabens, heavy metals or sodium lauryl sulfate. The non-GMO products do contain Xylitol, Green Tea and some natural extracts with soothing benefits. [ Image credit: © Simon Battensby ]
"Target.com Expands Their Oral Care Category With Dr. Sharp Natural Oral Care", PRWEB, November 17, 2016, © Vocus PRW Holdings, LLC.
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Estée Lauder Targets Millennials With Too Faced Deal

November 17, 2016: 12:00 AM EST
In mid-November 2016, Estée Lauder completed the acquisition of Becca Cosmetics and also announced its intention to acquire US company Too Faced, a fast-growing makeup brand that sells in specialty and online channels, for just under $1.5 billion. Too Faced, and Becca, will expand the company’s presence in color cosmetics targeting millennials. A note from Trefis listed some possible reasons for the Too Faced deal, including the observation that makeup is a key growth driver for Estée Lauder. With a CAGR of 60% in the last three years, Too Faced has also been growing strongly, its channels also provide Estée Lauder with alternative distribution options, and its appeal among millennials is also attractive. Estée Lauder also expects to extend the brand globally to maximize its growth potential. [ Image credit: © Simon Potter ]
"Here’s Why Estee Lauder Decided To Acquire Too Faced–the U.S. Based Fast Growing Makeup Brand", Trefis, November 17, 2016, © Insight Guru Inc.
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Walmart Posts Solid 3rd Quarter

November 17, 2016: 12:00 AM EST
Walmart posted a $0.98 EPS on total revenue of $118.2 billion, an increase of 0.7 percent, for its fiscal 2017 third quarter. Net sales at Walmart International were $28.4 billion, a decline of 4.8 percent. Globally, on a constant currency basis, e-commerce sales and GMV increased 20.6 percent and 16.8 percent, respectively, representing continued acceleration. U.S. comp sales were up 1.2 percent, thanks to a traffic increase of 0.7 percent. Consolidated operating income dropped 10.4 percent, mainly because of ongoing investments in people and technology, as well as currency exchange rate fluctuations. CEO Doug McMillon said the third quarter was solid and the company was positioned well for the fourth quarter and the holiday season. [ Image credit: © Brandonrush ]
"Walmart reports Q3 FY17 EPS of $0.98", Earnings release, Walmart, November 17, 2016, © Walmart Stores, Inc.
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