Top Beauty Moments, is an edited collection of the latest news and information from January you need to know to start your week and month surrounding all things beauty. This month’s report features market developments in Africa, new product launches, the lasted in beauty tech, and legislative updates on data protection, clinical trials, and trade.

Legislative/ Regulatory Brief

  • FDA Seeks Comment On Proposed Orders Under Sunscreen Innovation Act. Under the Sunscreen Innovation Act enacted in late 2014, FDA’s tentative determinations on time and extent applications for sunscreen ingredients are now deemed proposed orders and must be made available for public comment. The agency seeks input on six insufficient-data letters issued to sunscreen TEA sponsors in 2014, including its latest to BASF regarding bemotrizinol, marketed as Tinosorb S. (TheRoseSheet)
  • ASEAN cosmetics committee updates safety bill. The Association of Southeast Asian Nations’ Cosmetics Committee has agreed to new regulations on cosmetics in a bill that will improve consumer safety and crack down on misleading advertising. The Public Health Ministry has updated a twenty two year version of a law that features legal and technical definitions that protect cosmetics users. According to the Ministry, the bill includes clearer definitions and ingredients under an international standard; a wider range of prohibited ingredients; and a stricter requirement that importers or producers recall products that are banned or proven hazardous. (CosmeticsDesign)
  • Ban on cosmetics animal testing makes progress around the world. While 2014 has been marked by dramatic progresses towards a ban on a animal testing for cosmetics in several countries, including India, Brazil and Australia, South Korea announced today its intention to ban testing on animals for finished cosmetic products and to consider a further ban on the testing of ingredients. (PremiumBeautyNews)
  • New India Cosmetics Bill comes with 5 year jail sentence for violators. The new Drug and Cosmetics (Amendment) Bill, if it comes into effect, will see anyone in violation of the clinical trials procedure facing a jail sentence of up to five years. If the new Bill is approved by Parliament, a proposed chapter ‘4K’ to be included on clinical trials, may see any company manufacturing cosmetics with a jail time of up to five years, or a fine three times the value of the cosmetics confiscated. (CosmeticsDesign)
  • Potential delay on Data Protection regulation could affect cosmetic consumers. With the European Parliament and member states logging heads on various issues, analysts reckon imposing the new Data Protection Regulation Act could be delayed, meaning personal data could be exposed. The legislation affects any business or organization that gathers, processes or stores personal data. Due to come into effect early this year, the regulation is designed to unify and simplify data protection in Europe. As more cosmetic brands moved into the digital space to engage with shoppers in the last 5 years, consumers have been increasingly required to provide personal details to access the likes of make-up tutorials, competitions, databases to match products to their skin or when purchasing products online. The delay in this legislation could mean customer data archived in cosmetic company portfolios could be accessed by US authorities for example. (CosmeticsDesign)
  • New Year, new hope as TTIP plans to bring EU-US cosmetics more in-line. The European Commission published new texts setting out EU proposals for legal text in the Transatlantic Trade and Investment Partnership (TTIP) it is negotiating with the US, with a new cosmetics factsheet announcing plans for regulators to work more closely together. This is the first time the Commission has made public such proposals in bilateral trade talks and was done so in the hope it reflects its commitment to greater transparency in the negotiations.EU and US regulators already cooperate with each other in the area of cosmetics, even though the two regions have different systems for regulating cosmetics. (CosmeticsDesign)
  • Korea animal testing ban joy may be ‘premature’ as formal agreement needed on ingredients. Although included in Korea’s Ministry of Agriculture, Food and Rural Affairs (MAFRA) draft five year plan to phase out of animal testing for finished cosmetic products and ingredients, there is still some way to go as nothing has yet been finalized, with the ingredients ban needing formal agreement. The plan follows several years of in-country lobbying to modernize regulations and is a step in the right direction. (CosmeticsDesign)

Business Portfolio

  • The cosmetics industry can be proud of what it represents. Patrick O’Quin, former Director of Governmental Affairs at Danone, became the head of the French Federation of Beauty Companies (FEBEA, Fédérations des Entreprises de la Beauté) last July 1st. He received Premium Beauty News for a first overview of the vast work he intends to take on. (PremiumBeautyNews)
  • Estée Lauder fragrance acquisitions boost its luxury share. Estée Lauder’s acquisitions of Paris-based Frédéric Malle and Le Labo have the potential to boost its share in the luxury market, and can take the niche brands global, according to market researcher Euromonitor. The beauty behemoth completed the acquisition of Editions de Parfums Frédéric Malle this week, following on from its recent purchase of other fragrance player Le Labo. (CosmeticsDesign)
  • 82pc consumers think online advertisers obtain too much personal information.  Privacy and security are major concerns for online shoppers, with 91 percent of consumers worried about their control of personal information gathered and used by companies, according to a report from Adroit Digital. Online privacy laws are designed to protect consumers from fraudulent activities, but 73 percent of shoppers think online privacy is an illusion. (LuxuryDaily)
  • 7 areas for retailers to pay attention in year of cautious optimism. With what appears to be a strong holiday performance and gas prices predicted to stay low through at least the first half of 2015, retailers are entering the New Year with a sense of possibility. There is no doubt that there are challenges ahead for retailers, but in general, conditions are being termed as cautiously optimistic. (Luxury Daily)
  • L’Oréal collaborates with Avery Dennison to reduce environmental impact of labels. L’Oréal has turned its attention to reducing its environmental impact, particularly concerning its packaging, and announces collaboration with Avery Dennison focusing on the entire lifecycle of its packaging labels. As such, the cosmetics maker has identified the impact of its labels and moved to replace them with Avery Dennison’s Global MDO substrate on some of its leading products, as it is designed to significantly reduce greenhouse gas emissions, water consumption and waste generated in disposal. This has meant that L’Oreal has reduced its environmental impacts from 7% to 19% across the categories of fossil material, water use, energy use, GHG emissions and solid waste. (CosmeticsDesign)
  • New cosmetics e-tail site aims to sell ‘toxin-free’ products. Colorado-based TMK Beauty will go live from January 20 th and its mission is to sell toxin-free make-up, skin care and beauty products. Company founder Kathryn Murray says the launch of the website is in response to growing concerns from consumers about what ingredients are contained in cosmetics formulation and the potential dangers. (CosmeticsDesign)
  • E-commerce accounts for only 10%of beauty sales. This is according to Donna Barson, senior associate with market research consultancy Kline Group, who spoke with Cosmetics Design about the opportunities for cosmetics and personal care brands in this space. Industry analysts advise brands to get in the game by focusing on mobile, personalizing the online shopping experience, engaging consumers across platforms and devices, and more. (CosmeticsDesign)
  • Avon facing reality that it may sell for half its’ worth. Despite Avon’s stocks rising of late, the brand’s current trading price is fuelling rumours of a potential deal with private-equity firm TPG, which could see it go for half its worth. Speculation that the global cosmetics brand may be willing to take such a hit comes as a surprise to industry analysts, as Avon had rejected perfume maker Coty’s offer to acquire the brand for $10.7bn back in 2012. (CosmeticsDesign)

Industry Pulse

  • Latest US cosmetic market research points to lack of brand loyalty. New research suggests that cosmetic Consumers in the US purchase a wide variety of brands and often show no or very little brand loyalty. The report contains detailed information from a survey conducted by TABS that included 1,000 women and 250 men between the ages of 18 to 74, who were asked about the types of beauty products they purchase, as well as the frequency of their shops and what kind of retail outlets they went to. (CosmeticsDesign)
  • Private label brands get creative to land loyal consumers. Exclusive personal care brands use multiple strategies to keep consumers repurchasing and coming back for more. “Consumers are no longer as loyal as in the past, but are addicted to innovation in search of their solution,” says Laureen Schroeder, global director of health, beauty & baby at Daymon Worldwide. Excusive, private label brands in the US are paying attention to how UK companies approach brand loyalty. (CosmeticsDesign)
  • France: Perfume and makeup sales drive the prestige market. In a generally gloomy economic context, prestige cosmetics have avoided a big crash in France thanks to a rather dynamic second half. According to the latest figures released by The NPD Group, the market only recorded a slight decrease of -0.6 per cent in 2014, against -0.9 per cent in 2013. This outcome could have been much worse without French craze for perfume and makeup. (PremiumBeautyNews)

Market GPS

  • Kenya attracts investment. In East Africa, Kenya’s use of personal care cosmetic products ranks third behind South Africa and Nigeria in sub-Saharan Africa, according to market analyst Euromonitor International. It said Kenyan beauty product sales were worth more than $260m in 2011 alone. (CosmeticsBusiness)
  • Africa flagged to be the next male grooming market. As global cosmetic brands rush to tailor products to meet consumers’ needs in Africa; Datamonitor Consumer says there is an emerging audience that cosmetics firms should pay attention to – black African men. According to the market researcher, the culture of male grooming has evolved rapidly over the past few years and offers significant growth potential for the future. (CosmeticsDesign)
  • CFDA looks into consumers view of China’s cosmetics industry. The China FDA has been working on legislating a set of regulations to monitor cosmetics following a survey where Chinese consumers revealed quality and safety are top priority. A survey commissioned by the CFDA found that Chinese consumers had expressed the most concern over the proliferation of fake products in the market, false advertising, and high product prices. (CosmeticsDesign)
  • The Thai Commerce Ministry is looking forward to a significant rise in exports. During the course of 2015, and lists the cosmetics industry as one of the sectors most likely to benefit from growth. Although the future looks mixed for 2015, with some economies such as the United States in full recovery mode and others such as Japan and certain European countries facing hardships, the Ministry believes that the year should be largely positive for exports. (CosmeticsDesign)
  • Japan turns to celebrity ambassadors to capture beauty market. Various Japanese cosmetic brands have been taking an aggressive marketing approach, opting for actors and entertainers as brand ambassadors to push their products across Asia. (CosmeticsDesign)
  • Japan proves to be fastest growing market for L’Occitane. Global French beauty giant, L’Occitane reports Japan to be its’ biggest Asian market with total net sales up 15.2% to 133.9 million euro. L’Occitane’s uniquely French and luxury feel has seen it achieve great success in the Asian market, which accounts for just under half of the company’s sales. (CosmeticsDesign)
  • EU shrinking revenues sees L’Oréal turn to Ghana and Rwanda. Cosmetics giant L’Oréal is eyeing up fast-growing economies such as Rwanda and Ghana as the European markets are reported to be experiencing shrinking revenues. While 60% of L’Oreal’s revenue comes from Western Europe and North America, the brand currently has three plants in Africa and the Middle East including one in South Africa and another in Kenya, producing about half of the products it distributes in Africa. (CosmeticsDesign)
  • Bold lip color trend boosts US Prestige make-up sales. Lip color is in the spotlight at present after holiday sales boomed for products in the US that helped women make bold make-up statements. According to market analyst The NPD Group, Prestige lip color sales in the US experienced a  significant 24% increase in dollar sales for the month of November 2014, and this is an ongoing trend as women demand bold and bright colors. “The trend of women seeking to make a bold make-up statement continues as marketers showcase lips more prominently than seen in prior years,” says Karen Grant, vice president and global beauty industry analyst, The NPD
    Group. (CosmeticsDesign)

Beauty 2.0

  • Tech company launches Oku smart tool for skin care. Like GoPro meets Fitbit for your face, the Oku device is a wireless skin analysis tool and associated app coming to market soon for the young, digital, and beautiful. A camera, a research-derived algorithm and some specialized technology make up what Oku is calling the “world’s first, digital connected, personal skin coach.” The hand-held skin monitoring device, takes photos, shares data through an app, and offers guidance for users to care for their skin. (CosmeticsDesign)
  • Neiman Marcus generates personalized recommendations with beauty questionnaire. Department store chain Neiman Marcus is gaining an inside look at consumer beauty preferences with an interactive digital quiz. The retailer’s “What’s your signature beauty style?” Facebook application lets its followers generate their style profile based on their responses to prompts. This quiz works as an extension of Neiman Marcus’ Beauty Awards, which ask consumers to pick and choose their favorite products, allowing for peer recommendations. (LuxuryDaily)

Legal Perspective

  • Estée Lauder awarded $1.8 million in counterfeit MAC suit. The trademark infringement case is finally over, with ‘Get Your MAC On LLC’ being ordered by an Arizona federal judge to pay Estée Lauder over $1.8 million for the distribution of counterfeit products. The decision comes after Estée Lauder filed the suit in March 2013, following litigation in Australia where the beauty player had taken retail giant, Target to court for stocking MAC knockoffs. (CosmeticsDesign)
  • Dior in the spotlight over ‘propyl gallate’ in lip gloss formulation. Luxury cosmetics maker, Christian Dior found itself under the media’s spotlight this week due to a preservative newly added to its Addict Lip Gloss formulations… Propyl Gallate is an antioxidant preservative used in cosmetics to stop oxygen mixing with oil. It is widely used across the colour cosmetics, sunscreens, skin cleansers and self-tanning segments. Currently, the preservative is not on the prohibited list nor is its’ use restricted in cosmetics as regulated by strict EU laws (the Cosmetic Products Regulations EC No 1223/2009). (CosmeticsDesign)
  • ASA: YSL’s Black Opium Fragrance Ads Do Not ‘Glamorize’ Drug Use. U.K. advertising watchdog group agrees with L’Oreal and its Yves Saint Laurent division that ads for Black Opium fragrance do not simulate drug use or trivialize addiction, but instead tell the story of a woman who is relieved to track down and be reunited with an important piece of her identity – her perfume. (TheRoseSheet)
  • J&J Will Cut ‘Slack’ From Packaging To Settle California Litigation. J&J has agreed to repackage beauty and health products across its portfolio within two years to remove excess packaging that district attorneys in California claimed was deceptive in a complaint filed in Fresno superior court. A Dec. 18 settlement agreement also requires the marketer of Neutrogena, Aveeno and Johnson’s products to pay a half-million-dollar fine. (TheRoseSheet)

Launches

  • Nail brand Ciaté is to launch its version of an on-the-go sponge nail polish remover. Choc Pots are screw-top pots of sponge saturated in the brand’s chocolate-scented nail polish remover. Users can simply enter each nail into the pot and twist the finger, for fast, efficient polish removal. The remover is acetone-free and enriched with marula oil, vitamin B5 and vitamin E to condition and care for nails. (CosmeticsBusiness)
  • Benefit launches roller-inspired curling mascara. Building on the success of its They’re Real lash-lengthening mascara, Benefit is set to launch Roller Lash, a mascara designed to lift and curl eyelashes the same way curlers lift and curl hair. The £19.50 mascara features a patent-pending Hook ‘n’ Roll brush with tiny hooks on the bristles, which catch lashes, lifting and gently pulling them to create curl. The ink-black formula contains provitamin B5 and serin, known for their lash-conditioning benefits, and is said to provide a 12-hour curl-setting effect. (CosmeticsBusiness)
  • MAC gets arty. MAC Cosmetics has teamed up with fashion designers and illustrators, couple Isabel and Ruben Toledo. Renowned for their award-winning and imaginative work, the pair have collaborated with MAC on an collection. The result pairs Isabel’s ‘sensational penchant for color’ with Ruben’s ‘vibrant energy’, and the white packaging features Ruben’s illustrations of graphic lines and red-lipped faces. MAC x Toledo will be available in March.  (CosmeticsBusiness)

 

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

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