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INTERNATIONAL

Online beauty scars the existence of physical retail beauty

E-commerce sales have accelerated over retail sales during the pandemic. COVID-19 has accelerated the shift to buying cosmetics, skincare and other luxury products online, and a growing number of sales are now via a smartphone rather than over the counter. Established beauty majors such as L’Oréal, Clarins and Mac, which have traditionally dominated the market, now face heavy competition from a plethora of upstarts. A succession of buyouts and JVs with celebrities, influencers and online sellers is creating a new generation of cosmetics millionaires, and in some cases, billionaires. Kylie Jenner, the youngest member of the Kardashian-Jenner reality-TV family, became the world’s youngest billionaire in 2019 at 21 thanks to the success of Kylie Cosmetics, the makeup company, which was bought out by the global beauty company Coty. Samantha Dover, a global beauty analyst at the market research group Mintel, explained this change as a turning point in an industry that has historically been heavily reliant on storebased spending. And as per market reports by consultancy, McKinsey & Company, in the longer term, beauty was likely to follow other categories such as fashion in shifting even further online.

Procter & Gamble appoint first Indian national to take up global COO role

Shailesh Jejurikar is the first Indian National to take up the key role of COO in US FMCG major Procter & Gamble. As reported, it is for the first time that an Indian National has been appointed to a senior global role at P&G. Born in Mumbai, Jejirukar joined P&G in 1989 and is currently the CEO of P&Gs largest business sector, Fabric and Home Care and will take up the role of new COO effective from October 2021. Currently he is responsible for approximately a third of the company earnings, and will shift his focus to profit/loss responsibility for P&G’s Enterprise Markets as well as leading on IT, global business services, sales, market, operations, new business, purchasing, manufacturing and distribution in his new role as COO as well as leading on global sustainability initiatives.

UK re-opens its doors for animal testing of cosmetic ingredients after 23 years

The Animal Welfare Charity reports that for the first time in 23 years, the UK has opened its door for use of animal testing to ingredients used in cosmetic products. A decision made last year by the appeals board of the European Chemicals Agency (ECHA) that the UK government has aligned itself with, mentions that some ingredients used only in cosmetics needed to be tested on animals to ensure they were safe. By aligning itself with the ECHA decision, Cruelty Free International (CFI) has warned that the UK would be “blowing a hole” in its leadership on animal testing. A government spokesperson has reportedly said in response that there had been no change in legislation and that the ban on using animals for the testing of finished cosmetic products remained in force.

Sally Beauty’s ambitious vegan pledge

Sally Beauty is aiming to up its vegan product count considerably. The company has pledged to have at least 80 percent of its own-brand products become vegan by the end of fiscal 2021. This pledge forms part of the company’s wider SBH Going Green. Currently, some 50 per cent of the products under Sally Beauty’s private label are vegan, including its Ion Renewing Shampoo and Conditioner. The company’s banner is transforming into a cleaner, more environmentally-friendly brand in line with consumer demand.

Bleach London opens first US salon

According to a report published by Forbes, Bleach London, UK hair colour specialist has crossed the pond, opening its first salon in the US. The brand’s full range of colour services, in West Hollywood, will offer retail products and exclusive treatments, including a ‘thousand-dollar bleach’ from co-founder Alex Brownsell, who is heading up the US branch. Forbes reports selling one at-home bleach kit every 15 seconds, the brand’s digital arm saw meteoric has grown over the course of 202. With limited access to salons in 2020, Brownsell has been reportedly quoted saying that they have witnessed a large increase in customers coming to Bleach to use at-home kits and try experimental colour for the first time. This growth has continued into 2021, and have noticed that their community has become more willing to experiment than ever.

The Estée Lauder Companies reports strong 2021 results despite decline in makeup

Net sales of $16.22 billion was reported by The Estée Lauder Companies Inc for its fiscal year ending June 30, 2021, an increase of 13 per cent from $14.29 billion in the prior-year period. In most product categories, net sales grew in every region, reflecting the gradual reopening and recovery in brickand-mortar retail stores in certain markets compared to the prior year when retail locations closed in most markets during the second half of the year as COVID-19 spread globally. Incremental net sales from the company’s acquisition of Have & Be Co and the increase in its ownership of Deciem Beauty Group contributed 2 per cent points of growth to reported net sales. The company reported net sales of $3.94 billion for the three months ended June 30, 2021, a 62 per cent increase compared with $2.43 billion in the prior-year period. Both sales and profitability meaningfully exceeded fiscal 2019 performance. The company has invested in near- and long-term growth opportunities and managed costs elsewhere with discipline amid the challenges of the pandemic, while making important progress in its social impact commitments and sustainability goals.

Cosmetics packaging market to register a CAGR of 4.03 per cent by 2027

As per market reports from Fortune business insight, the global cosmetics packaging market is anticipated to reach US$ 39.32 billon by 2027 and register a CAGR of 4.03 per cent from 2020- 2027 owing to the rapidly augmenting beauty industry worldwide. Asia Pacific dominated the cosmetic ppackaging market with a revenue of US$ 10.50 billion in 2019 with China holding about three-fifth or more share. China is the second-largest cosmetics market after the US. On the other side, North America ranks second in the market with the US holding the dominant share owing to the high adoption of green packaging solutions and increasing export relations with the other nations around the world. The market in Europe is also expected to gain traction by 2027 on account of the gradual switch to post-consumer recycled (PCR) packaging.

Kuwait’s beauty and personal care industry set for rebound

According to a strategic market study by Poixel, Kuwait’s beauty and personal care industry is set for a steady rebound in the next few years, after a substantial hit from the COVID-19 pandemic, with the potential of reaching KWD47 million by 2025. The prolonged closure of stores brought on by COVID-19 has significantly impacted the global beauty and personal care industry. Brands responded to the crisis by increasing their online presence, encouraging consumers to shop online, and where possible, diversifying their production capacities, for instance towards producing hand sanitizer instead of their regular items. The COVID-19 crisis has not only highlighted the need to invest further in online sales and social media advertisement, but has also brought about a shift in consumer values. If brands continue to invest in their offline footprint as well as online marketing and credibility, according to Poixel’s predictions, the sector will grow annually by 3 per cent to reach KWD47 million by 2025. PBHJ

This article appears in the August-September 2021 Issue of Professional Beauty/ Hairdressers Journal India

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This article appears in the August-September 2021 Issue of Professional Beauty/ Hairdressers Journal India