A round-up of the latest news and information you need to know to start your week surrounding all things beauty.

Legislative/ Regulatory

  • The number of animal tests has declined significantly in New Zealand, but the Humane Society International says it will continue to put pressure on until the practice is totally outlawed. (CosmeticsDesign)
  • India has become the first cruelty-free cosmetics zone in South Asia having banned the import of animal tested cosmetics, only months after the implementation of a national ban on cosmetics testing in India’s labs. The ban comes in the form of Rule 135-B that states, “Prohibition of import of cosmetics tested on animals” from November 13. It means that India joined the EU and Israel in implementing such full bans that means “no cosmetic that has been tested on animals after the commencement of Drugs and Cosmetics (Fifth Amendment) Rules, 2014 shall be imported into the country.” (CosmeticsDesign)
  • New pages on the European Chemicals Agency’s website are targeted to firms facing registration and reporting requirements under the REACH program’s May 31, 2018 deadline. Addressing seven “phases” of registration, the REACH 2018 portal provides information and tips to manufacturers and importers of chemicals in volumes less than 100 tons, who should begin compiling their dossiers now, the agency says. (The Rose Sheet)
  • Production and sale of microbead-containing cosmetics would be outlawed at the start of calendar years 2015 and 2018, respectively, under New Jersey’s bill, which passed the state’s general assembly at the end of September. The proposed timeline is considerably more aggressive than that in Illinois’ ban, which became law in June with industry’s support. (The Rose Sheet)

Business Portfolio

  • L’Oreal USA announced the signing of a definitive agreement to acquire Carol’s Daughter. Headquartered in New York City, Carol’s Daughter is a premier American multi-cultural beauty brand with a pioneering heritage in the natural beauty movement. Created by Lisa Price in 1993, the brand caters to a diverse, rapidly growing market and has established a loyal consumer following across the country. (CNBC)
  • Beautypress, a “virtual press office” for the cosmetics industry, now provides its services through three platforms: beautypress.de for German speaking countries, beautypress.com for the USA and beautypress.fr in France. Premium Beauty New spoke to Gabriele Fuchs, founder and CEO about the company’s plans for the future. (Premium Beauty News)
  • Beauty marketers now have to enhance their skills and compete from both ends of the spectrum as
    they look to target ethnic consumers. (CosmesticsDesign)
  • Consumer demand is driving a need for an omnichannel shopping experience, requiring organizational changes to evolve. Today, 70 percent of transactions in store are digitally influenced, with consumers researching on tablet, smartphone or desktop before shopping. In order to effectively target consumers across channels, there needs to be training and cooperation between teams focused on both online and offline operations. (The Luxury Daily)
  • Transferring digital platforms into bricks-and-mortar experiences.  Luxury marketers need to provide a well-rounded and connected experience across all the channels. Digital opportunities are affecting in-store experiences and brands must recognize this intersection to best reach the consumer. The “white glove” service that is often expected by luxury consumers can be possible with omnichannel integration. (The Luxury Daily)
  • Remington goes on US tour to grow beards and brand awareness. The company’s Beard Boss team will visit several cities on a week-long road trip designed to build brand awareness and customer loyalty for its men’s grooming and styling products. (Cosmetics Design)
  • In a letter to its direct-selling colleagues, Avon outlines components of its direct-selling policy that it claims provide better protections to sales representatives than U.S. DSA’s Code of Ethics, which needs updating, the firm says. The move may help to insulate Avon from pressures facing the industry and serve to reassure the company’s existing and would-be sales reps at a time when their ranks are dwindling. (The Rose Sheet)

Industry Pulse

  • Sales of natural and organic cosmetic products continue to outpace the overall beauty market. Product innovation, consumer awareness, favorable regulations and increasing purchasing power in emerging countries are the main drivers to growth. (Premium Beauty News)
  • China is losing out on the natural and organic cosmetics market, says expert. Animal testing requirements are continuing to hamper growth in the market for natural and organic cosmetics in China, says market research company Organic Monitor. The company’s latest market research indicates China’s market growth rates in the category are declining because of the complexities of regulation requirements, the fact that animal testing goes against consumer values in this category, and also specific formulation challenges. (CosmeticsDesign)
  • Personalized skin care is a $12.2 billion market expected to grow markedly over the next five years, according to market research firm Canadean. Increasingly interested in products tailored to individual needs, a growing number of consumers are willing to pay premium prices and wait up to a month to receive customized formulas, the firm’s research suggests. (The Rose Sheet)

Market GPS

  • The new data by Euromonitor indicates that it’s clearly a case of swings and roundabouts for the global luxury goods industry. Despite Asia’s slowing growth on the back of China’s repositioning, Japan’s luxury market is witnessing a long-awaited revival thanks to its favourable exchange rates, while income inequality is beefing up spending by the higher-income segments in smaller Southeast Asian and Sub-Saharan African countries. (CPP Luxury)
  • The Australian market for cosmetics, perfumes and toiletries is showing distinct signs of bouncing back following some tough years of contraction, according to new data from IBISWorld.Although the industry remains very small in comparison to the country’s overall economy, the report highlights the fact that, following a contraction during the period 2011 – 2012, the industry is now back to respectable growth levels. (CosmeticsDesign)
  • P&G, L’Oreal and Unilever, the top three firms in Russia’s beauty market, face a bleak economic outlook in the country and the prospect that counter-sanctions from Moscow targeting food products could be extended to personal care, a Euromonitor analyst notes in an Oct. 3 blog post. (The Rose Sheet)

Beauty 2.0

  • The cosmetics industry is embracing new technologies, as it attempts to attract a new wave of digital natives. The rise of online shopping has transformed the way we buy everything from groceries to clothes but, when it comes to cosmetics, online shopping has hit the buffers. This is because consumers still want the same ‘real-life’ experience online as they do in-store – they want to know what a product will look like, or smell like, in order to make a decision. (The Telegraph)

Legal Perspectives

  • Companies across the country have been defending themselves against consumer class actions challenging advertising for cosmetics, report three leading law experts from the practice Sidley Austin LLP. (CosmeticsDesign)
  • A recent lawsuit in California brought against a cosmetics brand for slack-fill highlights the pitfall
    this area presents. Lawyer to the cosmetics industry, Angela Diesch, points out how to avoid this
    potentially expensive mistake. In the action, for which Diesch, who is an associate at Kronick, Moskovitz Tiedemann & Girard, prefers not to reveal the company name, a store-branded line was fined $250k by four California District Attorneys after the retailer and owner of the brand was accused of misrepresenting product sizes of its store-branded cosmetic products. (CosmeticsDesign)
  • At the National Advertising Division’s Annual Conference, NAD staffers, FTC officials and attorneys discussed whether beauty ads are regulated differently from advertising in other industries. L’Oreal’s successful appeal of a recent NAD decision regarding the use of lash inserts in Maybelline mascara ads could set a new and questionable precedent, according to NAD Director Andrea Levine.  (The Rose Sheet)
  • Center for Environmental Health claims that trichloroacetic acid-containing Perfect Image, MedPeel and Peel Rx skin-peel products expose consumers to “more than the lifetime cancer limit for TCA with each use.” For failing to warn consumers under California’s Prop 65 law, the Walgreen Company and four other firms linked to the products must mount a legal defense or settle with the NGO.  (The Rose Sheet)
  • NAD recommends discontinuation of numerous claims, many on product packaging, for the Coty brand’s Time in a Bottle Age-Defying Serum, citing flaws in the advertiser’s six-month, blinded clinical study. Philosophy will appeal to the National Advertising Review Board, arguing that “left uncorrected, the NAD’s decision would … disincentivize manufacturers from conducting similar comprehensive studies.” (The Rose Sheet)

1938 is the online magazine blog for Well-Kept Beauty, formally entitled Primer.

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