Beauty Business News September 2022

Galinee Beauty has been bought by Shiseido despite – or maybe because of – early investment from Unilever Ventures. Shiseido has recently sold Buxom, bareMinerals and Laura Mercier to AI Beauty Holdings (2021). This year they have launched a men’s skin care range called Sidekick for the Japanese and Chinese market and in April, released ‘conscious’ brand Ule in France. Shiseido acquired Drunk Elephant in 2019 so it looks like they’re siding with skincare over make-up. They’re not alone – Coty has also revealed skin care intentions going forward which means that their colour cosmetics (Gucci, Max Factor, Covergirl) may not be given priority.

Sephora

It looks like we really are getting Sephora at last. October is the launch month for Sephora.co.uk although it seems that we will get the European version rather than the more exciting US version. If a bricks and mortar store appears, it’s likely to be in Westfield, London. It’s all made easier thanks to Sephora’s purchase of FeelUnique last year – the infrastructure is already in place. Head straight to the Do Not Drink perfumes – they’re lovely.

ELC has acquired the Balmain Beauty license which means we should see colour and skincare coming from them in the next year or so. It’s suddenly got super competitive in the luxury market – Byredo, Carolina Herrera, Louboutin…

Revlon Prime Plus

If anyone can explain why bankrupt Revlon is paying out a reported $36 million in bonuses to their top brass, I’d love to hear it. Because I’ve worked commercially for Elizabeth Arden, part of Revlon, I have had no less than three legal documents from the bankruptcy courts in the US inviting me to file a claim. I have no money owing so I won’t but speaking of legal….

Makeup Revolution Precision Contour Brushes

…big news from Make Up Revolution who has appointed Macfarlanes LLP and Forensic Risk Alliance to undertake an independent inquiry into auditor BDO’s ‘serious concerns’ which appear to pertain to the validity of commercial arrangements and insufficient audit evidence in several areas.

Tata Harper has been sold to Korean company Amorepacific (Laneige, Sulwhasoo, Innisfree) who are taking over manufacture and expanding the brand throughout Asia and the West. It seems there is an upsurge in interest from Asia in US and European brands where as not so long ago it was the other way around.

Back in court – Manhattan this time – a class action against L’Oreal was brought against the brand regarding their topical collagen products. The plaintiffs felt they had overpaid for skin care containing collagen because the brand implied that the ingredient could smooth wrinkles when in fact the collagen molecules are too big to penetrate the skin and therefore can’t produce any of the stated benefits. L’Oreal sought for the case to be dismissed but the judge found it perfectly reasonable for someone buying a collagen product would assume the stated benefits could actually happen. So, permission to dismiss denied, see you in Beauty court, L’Oreal.

Remember the benzine contaminated Coppertone class action? Resolved – Bayer and Beiersdorff will pay an estimated $2+ million without admitting liability but refunding or rebating purchased products.

 


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15 responses to “Beauty Business News September 2022”

  1. Chrissie

    I love these BBB BBN articles Jane. Always a juicy read, thank you. The buying and selling of brands is something to behold, the amount of work and due diligence behind the scenes required is incredible and I hope employees involved will retain their jobs. I hope someone does something with Max Factor, it’s languishing in my book. Love the gorgeous Priyanka in the advertising campaign. It’s got terrific heritage like Revlon which might serve it well if someone decides to do some classic Hollywood branding.
    Exec pay is certainly something else, more so in the USA than here. We’re alright Jack syndrome, the rest of you can go swimming off elsewhere. Going off on a tangent I’ve heard Estee Lauder is discontinuing the blockbuster scent Knowing which is one of their unique scents ggrrrrr, cue losing more customers as they try and pivot the brand. I don’t know what is going with EL right now and I’m losing the will.
    Mention of Coppertone takes me back to those tan-tastic adverts of the 70s / 80s *shudders*. Their payoff says all we need to know ;-/
    Have a great weekend and hope you are feeling closer to 100% Jane. xxx

    1. Jane Cunningham

      Thanks Chrissie – I think there is so much more to go from EL – I’ll go out on a limb and say Clinique could be in for some sort of shake up just on a gut feel. Yes, thank you so much – I am very nearly there 🙂

      1. Chrissie

        That’s not good news Jane. EL has always been a “mature” brand and it’s got a stack of at least 12 (?) other brands in the group. Customer feedback online is very varied at EL for some of the newer products. They ditched Prescriptives and finally shed the delightful scent Calyx from Clinique without batting a mascara’d eye so let’s see. Take care and look after yourself xxx

    2. Jane

      EL’s behavior in the last few years is baffling. They don’t know who their core customer is or they just don’t care and think they’ll be able to successfully rebrand but they can’t. They’re mumsy in all the worst ways (and I love mumsy) and they’re just not going to be picked up by the young customer they seem to be targeting.

      And the Revlon folks can go hug themselves. I also don’t know what they’re doing to the Revlon brand (and Arden, in the States, though I understand it’s better run in England). It feels like these two brands are trying to tank themselves – what else can one imagine when they’re taking that kind of bonus when the brand is struggling.

      1. Jane Cunningham

        Yes, I agree re EL – will be interesting to see how they look in 5 years time.

  2. Jane

    Woohoo, Sephora FINALLY!! Where do I sign up?? Cannot wait to finally get my hands on some of their goodies.

    1. Jane Cunningham

      Not sure the exact date 🙂

  3. Dianne

    Any company in the USA that is going to file bankruptcy usually top management gets a hefty pay day. That is part of capitalism. Instead of paying everyday people, the big people are taken care. I have worked for two companies that have done this and the companies come back. Why the courts allow this????

    1. Jane Cunningham

      lord only knows…it’s a mystery.

  4. Alanna Bennett

    I love these posts, thanks Jane. How interesting that Asia are interested in European brands now. Everybody loves novelty!

    1. Jane Cunningham

      Exactly that! And thank you x

  5. Evie

    I’m writing from France right now. I never shop at Sephora because they don’t give you good discounts, unlike Marionnaud and Nocibe. Example: At Marionnaud (France, Austria, etc.) you can often buy Chanel skincare and makeup for 25 percent to 30 percent off. Not so at Sephora. Brands like Dermalogica and Skinceuticals are not carried at Sephora, well, some Dermalogica products are, but not the entire range. I find that online shops and competitors like Marionnaud, have completely eclipsed Sephora, in France, Greece, Germany and certainly in the US.

    So I think a lot of British people will be somewhat disappointed with Sephora.

    1. Jane Cunningham

      I’m inclined to agree – Douglas always looks quite exciting and also Marionnaud … Sephora is dominating its own brand products in the stores I’ve visited recently (in Italy) and other brands look like after-thoughts.

  6. Honey McKinley

    I’ve just seen this article about Sephora UK and thought you might be interested (although you probably have the info already): https://www.getthegloss.com/sephora-uk

    1. Jane Cunningham

      Yes thank you – I know about this but just don’t feel especially excited about it any more – I’ll probably get my Sephora mojo once it’s live 🙂

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