Beauty Business News April 2022

Here we go on the latest round of BBN – I feel like I’m playing catch up as I haven’t done one in a while, but let’s kick off with Deciem.

Whenever anything about Deciem comes up I feel sad about Brandon all over again. One of his strengths was his limitless approach to beauty – the belief that he could do anything and everything at once – which is how Deciem ended up with so many sub-brands. However, it seems that Hylamide, Abnomaly, The Chemistry Brand and HIF are all to disappear with The Ordinary and Niod staying. It’s been clear over a period of time that the latter two brands are the ones receiving the most focus so it’s perhaps not too surprising really and they’re obviously the ones that make the money. There is no commercial sense in holding brands that are niche or underperforming – much more sense in fact than their explanation, ‘9 is the last point of the numbering system, the sunset before a new horizon. As we turn 9, and move towards completing Deciem’s first decade, we are refocusing our attention on science-first functional skincare’. Ok then.

I often feature class actions from the US but the most recent Rodan + Fields settlement of one such action made me sit up and pay attention. Rodan + Fields is a multi-level marketing company focusing on beauty who sold a lash serum that it is alleged has potential to cause harm to users. Lawyers for class action claimants thought that isopropyl cloprostenate, an active ingredient within the serum, should be classed as a drug or medical ingredient because of its side-effect potential. Rodan + Fields have offered $38 million to members of the class action to be split as credit vouchers or cash (about $175) each without the need for proof of purchase. A settlement allows the brand not to admit liability or go to court.

My favourite class action currently proposed is towards L’Oreal Paris for implying by the name that their products are made in France. Using French words on the labelling apparently also causes Americans to think that the products are French. For clarity, the brand is French – it started life as the brainchild of Eugene Schueller who worked as a Lab assistant at the Sorbonne before founding a hair dye company. The name L’Oreal comes from the alternative word for ‘Aureale’ aka the Halo which was the name of a popular hairstyle in the 1900s. Someone was offended, apparently, that her product labelling in French misrepresented their North American ingredient origins. One thing to note however is that the products in question are not sold in France, only in the US so there isn’t necessarily a need for French on the labelling.

It’s always a good idea to check in on product recall sites – Baylis & Harding’s Goodness Hair Detangler was recalled a couple of weeks ago with a fear that certain batches may be contaminated with bacteria. It’s the Watermelon Burst version and you can find more details HERE . I also spotted a Pantene Conditioner recall for incorrect labelling – it’s a rinse out conditioner that’s been labelled as a leave-in.

P&G found themselves at the sharp end of sexism complaints when it ran a campaign on WeChat (a Chinese social media platform a bit like WhatsApp) implying that women’s feet smell worse than men’s. They removed it, with apologies.

L’Occitane has acquired Grown Alchemist for an as yet undisclosed amount. GA is described as a ‘natural cosmeceutical’ brand founded in Melbourne in 2008 by Jeremy and Keston Muijs – think along the lines of Aesop. They’re really ripe for upscaling at this point and also how big can L’Occitane actually grow? They’re still shopping!

Once, when I went to Boots in Nottingham, they measured the bacteria on my skin. I was literally horrified at the er, diversity and enormity of the bugs on my face, but it transpires that it is entirely normal to have a buggy face. Shiseido is to introduce an in-store test the amount and balance of skin bacteria for it’s customers. Yay! What an absolute joy to hear you are infested – which you surely will be – on the shop floor. Next level skin-doom-scrolling.

Back on law suits – Estee Lauder has settled in the suit brought by former employees after using an automated process to fire them. EL used software, made by recruitment company HireVue, to inform the MUAs that their jobs were gone and they’d have to reapply for their posts. The employees alleged that facial recognition technology had scored them negatively which is something that EL categorically denies. But, this is Estee Lauder now – unrecognisable, corporate and algorithm led. They’ve settled out of court.

PZ Cussons (Charles Worthington, Imperial Leather, St Tropez and Sanctuary Spa to name a few) has bought Child’s Farm. PZ Cussons paid £36.8 million for CF but it’s not clear if Farmologie (their grown up bath and body range) is included.

*Lastly – it’s Johnson & Johnson again whose backstory surrounding allegations of asbestos in talc gets more awful. According to the BMJ, court documents in the ongoing saga have revealed that a 1971 study on 10 prisoners in Pennsylvania in which asbestos was injected into their lower backs to compare the effects of baby powder with asbestos was funded by J&J. The people (it’s reported they were mostly black) were paid $10. The studies were conducted by a dermatologist (inventor of tretinoin acne treatment) who injected people with talcum powder and two types of asbestos. The discovery comes as court documents were unsealed and although past studies on prisoners is well known and documented, it is only very recently that J&J’s involvement has come to light.

 


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27 responses to “Beauty Business News April 2022”

  1. Donna

    The L’Oreal lawsuit is so funny. Really, are Americans that stupid? I use their hair dye and never once thought it was made in France.

    The J&J one is horrific.

    The Estee Lauder one, I know after lockdown, loads of counter staff just disappeared from many brands they own. Walking into House of Fraser counters with no staff and I asked and told by another counter beside oh they were let go.

    1. Jane Cunningham

      It just feels so empty now – as a whole.

  2. Arpita

    Another fascinating round of BBN–thank you for showing us the behind the scenes machinations, Jane!

    I had always thought that the bilingual labeling on the cosmetics that I buy here in the U.S. is because the manufacturers sell their products in Canada, as well. Perhaps the lawsuit plaintiffs did not realize that people who are not French (e.g. Canadians) speak French? But that raises some unflattering–albeit perhaps accurate!–stereotypes about the ignorance of us Americans.

    Is there a timeline for Deciem’s discontinuation of their sub brands? I am wondering how much Heel Chemistry lotion I should hoard.

    The news about Johnson & Johnson’s unethical experimentation was awful. I am a member of my organization’s Institutional Review Board, and I recall that our annual IRB training on protection of human subjects emphasizes how prisoners are a vulnerable study population because of their lack of opportunity for informed consent. Learning about historical studies like J&J reminds me that mistrust of science can be well founded.

    I found it fascinating, and disturbing, to learn about Estee Lauder’s personnel practices. I have heard companies tout prerecorded video job interviews as a time saving measure for hiring; I had never considered it as a means of firing, too. Is it any wonder that people are quitting their jobs in droves? Employers must treat their employees with some basic respect. Algorithms are not the answer to everything.

    1. Jane Cunningham

      Arpita you raise a very good point re Canada! I hadn’t even thought of that. We shall just see where that goes and see if they try to sue the baguette for not being made in France despite sounding French. Those trials are shocking reading…while I understand that those working at J&J now are unlikely to be the same as in the 1960’s it would have been better if they’d been open about it rather than waiting for sealed documents to mature.

    2. Christina

      I, too, wonder, how many hand chemistry bottles I need to buy. That stuff has worked wonders for me. So sad to hear it’s disappearing.

      1. Jane Cunningham

        That’s one of the best ever hand creams – if they’re wise, they’ll add into one of the lines that is staying.

  3. FiMacD

    Hi Jane. Any info re Revlon…I noticed yesterday it was being cleared from both my nearest Superdrug’s …and staff said it was coming out of them all…?? Maybe it’s just from Superdrug…. ? I mean I know there’s only floor space for so many but I hate when a favourite product from a brand that then just vanishes…

    1. Jane Cunningham

      That’s interesting – I know anything but I did see they reported a decline in sales recently (1.8%). I know many brands are still having ingredient issues but not sure why that would make them pull out of Superdrug. Revlon just doesn’t really do well here.

  4. Jane

    Between that horribly racist guy in the c-suite at Estée Lauder and this, what is happening there?! Prices have jumped precipitously, they’ve flattened all the special out of so much of their products (I can understand wanting to standardize the bottles of their “vintage” frags, but why didn’t they choose the flat, opaque “hourglass” bottle that Youth Dew comes in? The bottles they chose look so generic) and now they treat their counter staff like this? My grandma took me to EL to get my first fancy makeup when I was 12; this just makes me sad angry.

    Also, for those who like a very human rose lipstick color, snag Revlon’s Smoky Rose. I’m pretty pale, but I think the color would work up to medium skin tones at least. It’s a real sleeper.

    1. Jane Cunningham

      It’s really a shame – I’m still a fan of Bobbi and MAC and a couple of others but Estee Lauder was my first ever make up and I feel quite sad that it’s changed so much.

    2. Honey McKinley

      Thanks for the lipstick tip. I’m pale of the undead variety and find a proper rose lipstick so hard to get as they all veer too brown or pale so I look truly corpse-like. I’ll have to track down Revlon to test out Smoky Rose.

      1. Jane Cunningham

        Yes, they do mess about with rose in general 🙂

  5. Chrissie

    A great article thank you Jane and as ever plenty reading.
    Well which bit of the hairdye product isn’t made in France I wonder.. the paper box, the ink, the containers etc.. I have to chuckle at this. With apologies.

    I am sad to read about EL’s ongoing bad behaviour. One of my fave post work, pay day treats was a splurge at my local Debenhams (sheds a tear) and a lovely chat and makeup with the EL consultant there followed by a decent spend and some samples to take away. The new refillable eyeshadow quad palettes tick the sustainability box but not much else (dull… plus how many more warm toned colours do we need) and the long lasting fragrances aren’t much to get excited about. I wish they’d realise for some of us online shopping for new colours is tricky compared with the instore experience (test, try, spritz etc) and having a real person to deal with makes it all the more enjoyable, especially at their price points.
    The J&J experiment leaves me aghast, I wonder what else may come to light.

    1. Jane Cunningham

      I think they got caught up chasing a new customer – all beauty brands became obsessed with millenials and their future consumers to the detriment of their existing customers. So the consequence of that was a lot of streamlining and less focus on the service they give. However, for some brands, it’s like trying to turn round a massive ship – slow, clumsy and choppy.

  6. Hannah

    Shame about Hylamide (I love HA Blur) and Chemistry (love the “youth” hand cream) being removed from Deciem’s lineup.

    Farmologie have just had a half-off sale on their own website, not sure if that’s relevant to the Cussons buyout.

    1. Jane Cunningham

      Oh, that’s interesting.. I wonder.

  7. Trimperley

    Another Revlon fan here. I hope it doesn’t disappear from the UK.

    1. Jane Cunningham

      It just doesn’t feel like a brand with any presence but I think it does okay in other countries.

  8. Sarah h

    Glad I am not alone feeling sad about Brandon, every time I here the song diamonds( there is a tribute on YT) I think of him. I do wonder why, I think he was so accessible on social media. He was a trailblazer . Thanks for the update Jane.

    1. Jane Cunningham

      Yes, there isn’t another word for it other than sad.

  9. Kam

    Thank you for BBN, always a worthwhile read!
    The L’Oreal labelling issue is just silly, litigation-happy America at its worst. I wonder if L’Oreal uses the same packaging in US and Canada, where bilingual English and French labels are required by law? Most companies don’t do that, but you never know

    1. Jane Cunningham

      Yes someone suggested the Canadian point but I hadn’t thought of it 🙂

  10. Jane

    I cannot believe what I just read about the J&J experiment, it’s utterly appalling. I know 1971 was half a century ago, but even then surely someone must have had a responsibility in that company for ethics? I wonder if any of the people they experimented on are still alive? I’d be interested to hear their accounts of what went on.

    EL seems to be behaving very badly, wonder how their chief execs would feel if they were fired by algorithm? It puts me off buying anything from any of their brands to be honest. I buy most of my cosmetics from non EL companies anyway so not hard to avoid them.

    1. Jane Cunningham

      So, these ‘trials’ are fairly common knowledge (google ‘medical trials on prisoners’) and lots of information comes up – J&J was by no means the only company using these trial methods. It’s not comfortable reading at all.

  11. Honey McKinley

    My first thought with l’Oreal was Canada too as a lot of Canadian products are made in US, e.g. Holo Taco is all made in the US, sold in USD and shipped from US, although Cristine is from Canada.

  12. Ursula

    You cannot move here in New Zealand for Revlon, we even have huge Revlon counters everywhere with professional MUA! You have to walk around the Revlon stands to get to anything else. Maybe Revlon are taking over little old NZ with its tiny population of 5 million.

    1. Jane Cunningham

      Isn’t that strange – it just doesn’t impact here as much as it does elsewhere.

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