L’Oreal's New K-Beauty Brand; Dollar Shave Club Making Moves; Mineral Sunscreen Opportunity; More Cosmetics News
This article was originally published in The Rose Sheet
Executive Summary
Growing Korean beauty brand 3CE will join L’Oreal’s portfolio under a deal announced May 2; Unilever aims to drive new growth in Dollar Shave Club with additions to its executive team, including from Target and Nike. More cosmetics news briefs.
L’Oreal Buys First Korean Brand
French beauty leader aims to expand ‘cool Korean brand’ 3CE internationally following its acquisition of parent Nanda Co. Ltd. The latter launched Stylenanda as an online fashion business in 2004, but the targeted makeup brand now accounts for more than 70% of its sales. “Stylenanda captures Seoul’s vibe, edge and creativity. It is perfectly positioned to nourish the growing appetite for makeup of millennials in Korea, China and beyond,” says L’Oreal’s Alexis Perakis-Valat, head of the firm’s Consumer Products Division, which has been sluggish due largely to US mass-market softness. (Also see "L'Oreal Vows Consumer Division Excitement; 'Mass Will Be Back,' CEO Says" - HBW Insight, 20 Feb, 2018.) According to L’Oreal’s May 2 announcement, Nanda recorded €127m ($152m) in turnover in 2017, with multi-channel distribution including e-commerce, specialty retailers, department stores and duty-free. It has operations in Korea and Japan and a growing presence in overseas markets including Hong Kong, Singapore, Malaysia and Thailand. The transaction is expected to close within the next two months.
Unilever’s Dollar Shave Club Beefs Up Management Team
Newly announced appointments to DSC’s executive bench include Alan Wizemann, joining from Target Corporation, as chief digital officer, and former Nike, Inc. executive Danny Miles as chief technology officer. The hires are aimed at driving growth in the mail-order razor and grooming business and “building exciting capabilities that will give our members greater flexibility, new features and exposure to different forms of content,” according to Unilever’s May 1 release. Gloria Synn also is coming aboard as vice president of member strategy, bringing more than 15 years of experience in retail e-commerce and technology, most recently at Nordstrom, Inc. Finally, David Kujda, previously vice president of design at vacation rental marketplace HomeAway, Inc., has been named DSC’s VP of product design. Staff at market disruptor DSC, which Unilever acquired in 2016, has grown by more than 25% over the past year, the firm notes. (Also see "Unilever Mitigates E-Commerce Grooming Threat With Dollar Shave Club Buy" - HBW Insight, 20 Jul, 2016.) At the same time, DSC’s growth reportedly has been on the decline due to member retention challenges and increasing competition from other razor delivery businesses, such as Harry’s, Inc., as well as Procter & Gamble Co.’s Gillette Club. (Also see "Gillette, Schick Escalate Razors War With Aggressive New Tactics" - HBW Insight, 26 May, 2017.)
Hawaii Sunscreen Ban Drives Mineral Opportunity
Hawaiian legislation to ban the sale of sunscreens containing commonly used active ingredients octinoxate and oxybenzone, currently awaiting Governor David Ige’s signature, was fiercely opposed by industry, but at least some corners of the sector stand to benefit – namely, mineral sunscreen brands. (Also see "Suns Sets In Hawaii On Sunscreens Containing Octinoxate, Oxybenzone" - HBW Insight, 2 May, 2018.) Goddess Garden, which bills itself as the largest certified-organic sunscreen brand, is promoting its “reef-safe” offerings formulated with zinc oxide and titanium dioxide in light of the Hawaiian crackdown and surrounding environmental concerns. “These [targeted] chemical sunscreens make coral reefs more susceptible to environmental stressors and can even kill them,” the company asserts in a May 10 release, with CEO and founder Nova Covington adding, “We’re proud to see the Hawaiian legislature leading the way on this important initiative.” While industry – and even Hawaii’s Department of Land and Natural Resources – believe additional research is needed on the subject, the state’s pending ban has generated extensive media coverage, including pieces highlighting reef-friendly alternatives for consumers. Natural brand Badger is another that’s capitalizing on the movement.
Perfect365 Seeks Brand Partners For Virtual Makeup Technology
Augmented reality beauty specialist Perfect365 is expanding its services with a white label option for partner brands. To date a proprietary app boasting more than 100m users, powered by the company’s “one-of-a-kind” Face Detection science “that allows for the most accurate and realistic virtual makeup placement possible,” Perfect365’s technology is now available to cosmetics firms that want to give consumers the ability to try on makeup virtually on their websites, via their own branded apps or by way of in-store virtual mirror kiosks. Perfect365 cites survey results indicating that 78% of millennial and Gen-Z women are more likely to purchase makeup products if they can try them first virtually. The company’s app has gained exposure through collaborations in the entertainment industry, including with Game Show Network and its “Skin Wars” body-painting competition show, as well as deals with fast-growing beauty brands such as Nudestix, according to Perfect365’s May 8 announcement.