Regulatory Uniformity In U.S. Top Priority For ICMAD

Small-business trade group the Independent Cosmetic Manufacturers and Distributors will continue advocating in 2014 for uniform cosmetics regulations throughout the United States, CEO Pam Busiek said in an interview with “The Rose Sheet.” ICMAD cites collaboration with other industry trade associations as a highlight of 2013.

As the push to reform cosmetic regulations in the U.S. continues, the Independent Cosmetic Manufacturers and Distributors is focusing its efforts on achieving national uniformity so its small business members will not be unduly burdened by different regulations in different states.

Without state preemption, small businesses in the cosmetics space could face very high costs, ICMAD President and CEO Pam Busiek said in a Feb. 3 interview with “The Rose Sheet.”

“California is an area that has a lot of positive and concerning things happening as well. We’re going to focus more on the West Coast this year and see if we can’t meet more of those companies’ needs.” – ICMAD President and CEO Pam Busiek

“That’s been the biggest concern, because none of us can play in 50 different states 50 different ways,” she explained. “At the state level, if you have to do something repetitively and still stay in the same marketplace, it adds a layer of costing.”

ICMAD President and CEO Pam Busiek

Busiek gave the hypothetical example of a shampoo, noting that if it needed to have an alternate label for different states or different retailers or when targeted to children, “there’s no synergy in buying, there’s no cost savings doing large runs – it would be very, very cost-prohibitive.”

Those costs would hurt companies in the short term and in the long term too, the exec suggested. With a high level of M&A activity in the cosmetics segment, “the better job we can do in keeping costs down, the more attractive the entire space becomes,” she said.

Recent years have seen large cosmetics firms eagerly snapping up smaller companies. L’Oreal S.A., which gained Urban Decay and Clarisonic through acquisitions, says it has been motivated by small businesses’ unique products and ways of doing business (Also see "Indie Brands “Make Big Brands Smarter” – L’Oreal Exec" - HBW Insight, 15 Jul, 2013.).

Collaboration Makes Inroads

The Personal Care Products Council and ICMAD worked closely in 2013 to develop a legislative plan that would include state preemption (Also see "PCPC, FDA Negotiate Oversight Bill With Possible State-Law Preemption" - HBW Insight, 19 Jul, 2013.).

For Busiek, ICMAD’s collaboration with PCPC and the Professional Beauty Association was a highlight of 2013. The groups met regularly to work on legislative issues and liaise with FDA.

“You get more done together than you do separately,” Busiek said. “We each occupy a different space and we do different things and we touch different people, [but] everyone is pushing in the right direction.”

She is optimistic the collaboration will pay off for small businesses, as the partnership has given them a seat at the discussion table.

“It’s like an industry having one mind or a family all standing for the same value system,” she said. “You’re never going to 100% agree, but you can become so closely aligned that you can support the same initiative.”

Despite general consensus among industry stakeholders, Busiek doubts that cosmetics-specific regulation will be introduced in 2014.

“I don’t know that cosmetics are first on the radar of our capital in an election year,” she said, but noted that there are still opportunities to educate legislators on the issues important to the cosmetics industry.

The trade group looks to raise its profile in Washington and is planning its first “fly-in” day in May for its members to meet with members of Congress and their staffers.

Busiek is also hopeful that a legislative consensus can be reached with NGOs. She will participate in a panel discussion with representatives from the American Cleaning Institute and the Environmental Working Group next month as the groups collaborate on determining specific steps to strengthen cosmetics regulations.

While the groups don’t have identical positions, “we’re all trying to work together to further a cause, which leaves me with a positive feeling,” Busiek said. “I can tell you I think we’re closer than ever. … We’re really all trying to push to make something happen effectively. It’s refreshing. I hope that does happen.”

“A Really Good-Kept Secret”

ICMAD boasts more than 700 members, and it is working hard to increase its own branding while giving small businesses a voice. ICMAD will celebrate its 40th anniversary in 2014.

Busiek characterized the trade group as “a really good-kept secret” to date, but now ICMAD is working to generate awareness through a greater presence at trade shows and by promoting its own webinars and events.

ICMAD also worked to generate value for its members in 2013. The trade group started a warehousing strategic logistics program, which offers its members the opportunity to minimize their operational and shipping costs, launched a new website featuring easier navigation, in-depth information and updated graphics, made its webinar series more robust and increased its administrative staffing, according to the exec.

The group is looking ahead to its Young Designers Competition on March 5, which showcases packaging designs by students. The event will be hosted this year by Kathy Ireland, and the winner of the competition will receive a contract with a member company.

ICMAD moved the Young Designers event to California this year. The state is home to 221 of ICMAD’s members and is of particular importance for the trade organization, with regulations including Proposition 65, the Safe Cosmetics Act and the Safer Consumer Product regulation all posing challenges for cosmetics firms.

“California is an area that has a lot of positive and concerning things happening as well,” Busiek said. “We’re going to focus more on the West Coast this year and see if we can’t meet more of those companies’ needs.”