Beauty Business News

 

Drunk Elephant. There’s been a price drop across the board on the Drunk Elephant range and we can only assume from this that the brand wasn’t selling nearly as well as expected. Plenty of brands come over to the UK to the US and do a straight conversion from dollar to pound without taking the difference in value into account. So, for example, a product that costs $100 in the US would attempt to be sold for £100 in the UK. Today a dollar equates to 79 pence so you can see how the brand is quids in if they can get away with it. Price parity is something that should happen as standard and yet it consistently doesn’t until enough negative attention is given. Much as I like several of the DU products, it doesn’t mean I like the change in the brand since it took on investors. It’s gone from being a sweet, simple brand with a strong back-story to an unseemly grab-fest. Customers who have already paid for their products will be given the parity refund.

Sunday Riley Fake Reviews. Oh dear. A leaked email from Sunday Riley management to its employees asking them to open fake Sephora accounts in order to leave positive reviews is doing the rounds. Amazingly, the brand confirmed that it had done exactly that (on the @EsteeLaundry Instagram account – it’s an absolute must-follow for anyone who loves acerbic critique and insider gossip) but reasoned that competitor brands leave negative reviews on their products. It’s obviously highly unethical to fake reviews either way, but it does go on and another reason why anything other than independent reviews cannot be relied upon. Sephora so far has played the innocent but it’s lazy on their part and disrespectful to their customers not to take this more seriously than they do.

Goop. Gwyneth Paltrow’s website, Goop, is easy-pickings for the nay-sayers, but she’s recently been reported to Trading Standards and the Advertising Standards Authority in the UK for selling products that can’t back up their own claims. I’ll offer up the ‘Medicine Bag’ containing 8 crystals for £76. If you love crystals, great, but they’re not medicine and shouldn’t be put in the same sentence, in my view. If they give you peace and help you feel better, that’s wonderful, but there is no medical science that backs up crystals as treatment, and it’s a site that talks a lot about science.

P&G Olay vs Solav. In the department of Not Enough To Do, lawyers took on an acne product called Solav from Nelovy Pharma, decreeing that the S on the packaging in the word Solav wasn’t obvious enough and it looked like Olav. Which in their world, would confuse the world enough they might think it was Olay. Even in Great Britain, we know the difference between Y and V and if we didn’t we’d be asking for Yaseline and Yichy. Anyway, Olay lost. Say no more.

ASA vs Johnson & Johnson AND Dermalogica AND Clearasil. All three brands have fallen foul of regulations concerning claims on treating acne. Acne falls into a very tricky skin care area because products should not claim to treat or prevent a medical condition and yet acne, as opposed to spots or breakouts, is classed as a condition. Many brands walk this fine line and some even underclaim what their products can do so they don’t fall into this exact problem. Once you are declared a medical product, all of the rules change about how you can be sold and where you can be sold as well as how you advertise. None of the products can appear again in the form that caused the complaints although you would have to question whether it was a competitor brand that made these claims because it seems odd to me that all three got their knuckles rapped at once.

Lagom. What is that? Well, it’s the replacement for Hygge. Hygge was all about being cosy and snug, Lagom is equally Scandi but is all about life balance and means ‘just the right amount’. Just the right amount of everything sounds like a great plan to me and can apply to food, drink, beauty, work, sleep – anything at all. See it applied to beauty products in the not too distant future.

Beauty Pie. Dupes and copies are so common now in the beauty industry that nobody bats an eyelid any more. It’s becoming increasingly obvious that Beauty Pie is heading down this route but some are starting wonder whether, far from being dupes, they’re actually exactly the same thing as the real deal. There’s always been something a little mysterious about the whole ‘buying straight from the factory’ claims from the brand (I still really don’t like the whole monthly fee thing – just be a shop and don’t stranglehold consumers) but some make up products are literally identical, in colour, texture, duration of wear, to the originals. After all, there aren’t *that* many make up factories if you exclude China (where no BP products are made). As well as the obvious CT homage above, they’ve recently produced a marble effect blush that is exactly the same as Hourglass. Estee Lauder, er, homaged CT last year :-). Make up patents are notoriously hard to lock down which is why so many can dupes happen but Hourglass is Unilever and they have busy lawyers.

At the back of my mind, I think even before CT and before Lauder, above, there was a face palette like this doing the rounds? Does anyone remember?

Trend Predictor: Beauty brands dabbling in apparel – we’re right at the very beginning of this but it’s a thing and it will happen. “UD Made Me DU It.” I know.. genius ;-)).

 

Sources & Resources: Global Cosmetics News, CosmeticsBusinessHappi.com, FT.com.

 

 

 

 

 

 

 

 

 

 

 

 

 


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30 responses to “Beauty Business News”

  1. Hannah

    I’ve finally given in and got a baby subscription to Beauty Pie – the £5/month job. I don’t know enough about high-end makeup to recognise any dupes though! I’m slightly uncomfortable with buying any cosmetics online, having to guess at the exact colours – fell foul of too many Avon disasters in my teens probably!

  2. Jaclyn

    These aren’t favourite posts

    1. Jane

      That’s a shame.. you can always just skip past them – they don’t happen very often.

      1. Jaclyn

        ARE! I’m so sorry! Blaming autocorrect. Or my clumsy fingers?

        1. Jane

          Oh no!! Lol.. that’s really funny – don’t worry, no offence taken at all :-)))

      2. Lizzie

        I really love them, please keep them going, Jane!

      3. Michelle

        This is a brilliant post, Jane, keep up the good work! Long time follower of yours but first time to comment. x

        1. Jane

          Thanks so much for commenting Michelle.. always so nice when people give feedback x

      4. Miggs

        The Beauty News posts are actually my favourites!

    2. Trimperley

      I love the Beauty Business News posts. Just goes to show that we are all different and it makes the world more interesting.

  3. Lisa

    It takes all sorts – I really like this kind of piece – they are always informative and thought-provoking. Thanks for all you do.

    Lisa

  4. deborah

    Thanks for posting this about Drunk Elephant. I’ve always found the brand to be off-putting due to insulting high prices and smug PR done by youtubers & beauty editors who are given tons of products.

    Jane, your Beauty Business News posts are always so interesting and informative. This industry is so full of hype and false claims that we need many more independent and honest reviewers and reporters.

    Thanks, Sarah, for mentioning Salli Hughes’ Drunk Elephant write-up. She’s taken to task by 224 commenters for raving embarassingly about DE products. How does she have the authority to say that DE is ‘America’s best cruelty-free skincare brand?’ I’m from the US; her claim is pure PR to sell overpriced goods. For that Salli gets free goodies, we consumers will pay for them.

    1. Jane

      I have to say that Sali is one of the most thorough reviewers around – DE was heavily PR’d in the UK (I got free products as well but had reviewed well before they came to the UK – in fact, I think I was the first person to write about them in the UK when they brought out their Juju bar) and I definitely preferred the brand pre-investment when it really was quite an innocent indie brand. I do like the products, particularly the marula oil, but its got tangled up in trying to take the brand mainstream. I would have to stand up for Sali here because she is not one for PR nonsense at all and neither does she sit in the pockets of any PR or brand, so I can only assume that she believes it to be so. I honestly don’t see her saying it to please any PR.

    2. Jane

      Oh and thank you for kind words!!

  5. G.

    Well I can say that I love these kind of posts, so I sure do hope you’ll keep making them! I am always curious about what’s happening behind the scenes
    Ciao from (near) Milano-I’m glad you enjoyed our beautiful city

  6. Leanne

    Hi Jane,
    Were you thinking of Stila perfect me perfect hue palette?
    I LOVE your beauty business news updates!

    1. Jane

      Maybe it was that! Thanks Leanne xx

      1. Troo

        There were also the Illamasqua Multi-Facet Palettes in 2014.

  7. Annette

    Well written. The ugly side of beautiful things I guess! Love the gossip on these brands. Makes me wonder sometimes if it’s all a big game we are caught up in?? Love your articles!

  8. Catherine

    I find these posts very interesting Jane. Would have no idea of any of this otherwise. Thank you!

  9. Carol

    I love your business posts, always an interesting read. Esther Coren is talking about beauty pie with a promotion code. I did look on the site and spent a long time trying to work out which products were from which companies. Really undecided about whether to join it

  10. Sabiha

    I love these posts, on the other hand. I skip past other (fragrance, as we’ve different tastes for example) that don’t appeal. Swings and roundabouts, really. I like this succinct roundup and find it fascinating.

  11. Melissa

    Hello Jane, I love these news posts and thanks for your research and hard work.
    If I was in the UK I’d subscribe to Beauty Pie in a flash.
    I once watched a TV report on the factory in Bergamo that seems to make most of the brands, very interesting – they pointed out the Too Faced Better than Sex mascara as an example, and basically we’re paying for the expensive machine that makes the metal tubes!
    Melissa

  12. Nicola

    I agree with many above, absolutely LOVE these Beauty Business posts. So interesting and probably because I love beauty but also work in “business” so a lot of the goings on behind the scenes doesn’t surprise me but is fascinating nonetheless. The fake reviews thing is extremely disappointing, especially from a brand I like like Sunday Riley, but I guess we have to assume they all do it! And I balked when I saw that BeautyPie CT dupe! I also don’t like the subscription thing and this has not improved their image on me. I do like what they are trying to do though as I’m also aware a lot of products are very overpriced! But to straight out copy something so well known…!

  13. Jo Dunning

    I had always assumed that a goodly chunk of the $1 = £1 conversion on American-source products being sold in the UK was down to VAT, no? Advertised prices in US exclude taxes because they vary from state to state whereas in the UK we have a unified VAT % rate.

    Or am I just naïve?

    Love the beauty news posts, but I love all your work Jane 🙂

  14. Ann Farr

    So very interesting. As always the beauty business posts always fascinate me and are so well written, thank you. It seems the holier than thou makers of skincare suffer from the mortal sin of greed!! Makes me laugh and want absolutely nothing from them!

    1. Jane

      thanks so much Ann xx

  15. Hi Jane,
    As the founder of Drunk Elephant, I, more than anyone, remember your article about the brand a long time ago. I remember where I was when I read it and I was so excited to say the least. I have to say that the way the price drop is being reported is disappointing. Our performance exceeded my expectations and I’m grateful to the UK consumer for that. I changed the SRP recommendation to my retailers because that’s where I had wanted them to be all along. They were sent in higher without my understanding and I agree with you 100% that price parity should be set as standard from the beginning. That was an internal miscommunication and I can imagine it happens all the time within brands, but with mine after this, it hopefully won’t ever happen again. I loved and appreciated the enthusiasm shown to me by the people there. They gave me such a warm welcome. It’s been sad to see all of the misunderstanding regarding our intentions. I’m
    a consumer first and I’ll remain on the consumer’s side. We send products out to editors and influencers so they can try out the brand and give honest feedback. That’s how I learn
    and can make things better. The investors we took on haven’t changed one thing, but it did allow us to build a bigger team so we could expand globally. It’s still the same back story and I’m still calling the shots, although admittedly my eyes can’t see everything and that is why mistakes fall through the cracks on occasion. This was a happy correction, we were fixing a mistake and I believe the UK consumer appreciated it. I’m sorry you read it differently and I hope this clears it up for you. Best, Tiffany

    1. Jane

      Hi Tiffany, thanks so much for your input on this – it’s always appreciated when brands tackle things head on rather than hiding away. I think the bigger picture is that we are in very difficult times regarding trust in the beauty industry. I’m also 100% consumer first and write for readers rather than brands in the face of difficulty, often. What came back time and time again (on reader feedback across channels) regarding DE was that it was too expensive (pre the price drop) from the very start. A lot of people wanted to experience the brand but couldn’t justify the prices. I saw that over and over and not just on my own channels, so I think you can see why a price drop looked like a response to that. I also understand that a price drop is not something to take lightly and that it’s one hell of a job issuing refunds :-). But, Tiffany, I think you have to look at your own brand in a sea of skin care brands – the thing about DE at the beginning was that it felt well-intentioned, innovative, exciting and authentic and it doesn’t feel as authentic now as it did in the beginning. Any brand experiencing large growth can lose their authenticity and often it’s a matter of over-exposure in the influencer sphere (where trust is also at an all time low). I’m grateful that you’ve joined the conversation – it’s a small part of the bigger picture conversation that would require so many wines I can’t even… 😉

      1. Hi!
        Exactly! Yes I agree, when you have a lot of people talking and speculating about a brand, perception can change very quickly. Authenticity to me means staying true to who you are which is what I’ll continue to do to the best of my ability. Thank you for responding.

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