AN ISSUE OF WOMENS WEAR DAILY

THE BUSINESS OF BEAUTY

IMAN EXPANDS
HER EMPIRE
BEAUTY BUYERS
IN THE LAND OF
BIG HAIR
GAME CHANGERS:
50 POWER PRODUCTS

New
Deal
An In-Depth Look at
Why P&G Is Reshuffling
Its Beauty Business

AN ISSUE OF WOMENS WEAR DAILY

THE BUSINESS OF BEAUTY

IMAN EXPANDS
HER EMPIRE
BEAUTY BUYERS
IN THE LAND OF
BIG HAIR
GAME CHANGERS:
50 POWER PRODUCTS

New
Deal
An In-Depth Look at
Why P&G Is Reshuffling
Its Beauty Business

OUR 1ST HAIRCOLOR FOR MATURE HAIR

LAYERED TONES, FLATTERING COLOR
FULLER, THICKER-LOOKING HAIR
BECAUSE YOURE WORTH IT

NEW

NEW LAYERED TONE TECHNOLOGY

FOR COLOR FULL OF NATURAL-LOOKING HIGHS AND LOWS.
GRAYS 100% COVERED. REGROWTH IS BEAUTIFULLY BLENDED.
FORMULA WITH PRO-KERATINE COMPLEX
HAIR IS RENEWED WITH VOLUME AND SHINE.
EASY APPLICATION BRUSH
8 FLATTERING SHADES

Dont give up on color ExcellenceAgePerfect.com

Diane is wearing Excellence Age Perfect shade 9N, Light Natural Blonde.
2015 LOral USA, Inc.

W
ith color like this
theres no reason to stop coloring.
Diane Keaton

26

In This Issue

EDITORS LETTER

Moores Law, as put forth by Intels cofounder, Gordon

Moore, stipulates that the overall processing power for
computers doubles every two years. In the beauty industry,
that seems to be the rate of seismic change as well. Consider
some recent dynamics: A new generation of indies has
emerged to become the titans of tomorrow; new social media
platforms have fundamentally and forever transformed how
brands interact with consumers, and the strategic landscape
of the industry has shifted, as once-powerful companies like
Avon struggle to nd their footing and others, like Unilever,
aggressively enter new areas of the business.
All of this change is a journalists dream come true, and this
issue of WWD Beauty Inc dives into some of the key stories
that have emerged. First and foremost is the evolution of
Procter & Gamble in the beauty business. It was only about
eight years ago, under thenchief executive ofcer A.G. Laey,
that the Cincinnati-based consumer products giant was
nipping at the heels of LOral for the title of worlds biggest
beauty company. Today, with Laey serving his second term
as ceo, P&G is in the process of dismantling the very empire
that he erected. Why? What happened? How did both the
market and environment change in ways that made beauty an
untenable business for P&G? The answers to those questions
and more are in A New Game on page 32.
Anne Carullo, the brilliant product developer at the Este
Lauder Cos., used to assess new launches by asking, Is it
a truth or a trend? Mineral makeup, for example, was a
trend that became a truth. In the last few years, weve seen
wave after wave of such itemsBBs, balms, masks, mud, oil
and on and onbecome true forces in the industry. Where
they go, others follow. We have dubbed these the industrys
Power Products, and, after consulting with our editors,
market analysts and retailers, have compiled a list of the
top 50. These are the brand builders, the market makers,
innovators that have created new categories of business. Find
our choices on page 21, then send me your list of the power
products of tomorrow at jne@wwd.com. JENNY B. FINE

10

Miley Cyrus
cobalt crop at
the Met Ball
was right on
trend with
beautys hottest
color.

8 Cheek Chic
After seasons of lips and
eyes, makeup marketers are
energizing blush with a host of
innovative formats.

21 Power Products
WWD Beauty Inc selects
the 50 products that made
markets, created categories
and skyrocketed sales.

10 Blue is the Hue

Summers standout shade.

26 Chemistry Set
Longtime friends Iman and
Jay Manuel mix business
and pleasure to launch a
new makeup line.

12 Braving New Territory

How Stubble & Staches
Nicholas Karnaze went from
special ops to entrepreneur.
12 Lab Masters
From correcting to contouring,
summers new serums cover
the skin care spectrum.
14 Shopper Stalker
Whos buying whatand
whyin Dallas.

A wellness
pioneer
weighs in on
beauty.

An insiders
guide to Latina
instagrammers.

16 All Systems Go
As the natural product
category explodes, Juice Press
founder Marcus Antebi looks
at how the wellness trend is
impacting the beauty industry.
17 The Caliente List
Glam Belleza Latina editor
Patricia Reynoso is keeping
her eye on these social-media
superstars.

30 Born Leaders
A new generation of beauty
incubators are cultivating
emerging brands, bringing
innovation and speed to
market to the indie scene.

From BB
Cream to Brow
Zingand
everything in
between50
innovative
items that have
sparked sales.

Meet the
industrys
newest
entrepreneurs.

32 A New Game
As Procter & Gamble
pursues its divestiture
strategy, industry insiders
analyze the dynamics
that led it to downsize in a
category it once dominated.
38 Berkshires Buzz
Beauty insiders share their
favorite spots to eat and
shop in the Berkshires.

Cover Photograph by
James Wojcik

18 Wonder Waters
The seasons new mists and
lotions offer more than mere
hydrating benets.

WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. COPYRIGHT 2015 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 209, NO. 92. Friday, June 5, 2015. WWD (USPS 689-960, ISSN 0149-5380) is published weekly, with one additional issue in
February, March, June, October, November and December, and two additional issues in April and August, by Fairchild Media, LLC, which is a division of Penske Business Media, LLC. PRINCIPAL OFFICE: 475 Fifth Ave, New York, NY 10017. Periodicals postage paid at New York, NY, and at additional mailing
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all editorial, business, and production correspondence to WWD, 475 5th Ave, 15th Floor, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax request to 212-630-5883. For reprints, please e-mail FFM_Reprints@pmc.com or call Wrights Media 877-652-5295. For reuse permissions,
please e-mail FFM_Contenlicensing@pmc.com or call 800-897-8666. Visit us online at www.wwd.com. To subscribe to other Fairchild Media, LLC magazines on the World Wide Web, visit www.wwd.com/subscriptions. WWD IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY
OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS
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4 WWD BEAUTY INC

BABIES PHOTO BY JAMIE GRILL; IMAN BY BEN HOFFMANN; BLUE PRODUCTS BY GEORGE CHINSEE/STYLED BY BARBARA SULLIVAN

30

EDWARD NARDOZA EDITOR IN CHIEF, WWD

PETE BORN EXECUTIVE EDITOR, BEAUTY
JENNY B. FINE EDITOR
JENNIFER WEIL EUROPEAN EDITOR
JULIE NAUGHTON SENIOR PRESTIGE MARKET BEAUTY EDITOR
MOLLY PRIOR BEAUTY FINANCIAL EDITOR
FAYE BROOKMAN CONTRIBUTING EDITOR
JAYME CYK MASS MARKET BEAUTY EDITOR
ANNA DYSINGER ASSISTANT EDITOR
KATIE KRETSCHMER CONSULTING COPY EDITOR

Melissa Benoist
at the 2015 Film
Independent
Spirit Awards

ART
BARBARA SULLIVAN CONSULTING ART DIRECTOR
CONTRIBUTORS
SAMANTHA CONTI AND NINA JONES (London), MILES SOCHA (Paris),
CYNTHIA MARTENS (Milan), MARCY MEDINA (Los Angeles),
MELISSA DRIER AND SUSAN STONE (Berlin), AMANDA KAISER (Tokyo)
PHOTO
CARRIE PROVENZANO PHOTO DIRECTOR
LEXIE MORELAND ASSOCIATE PHOTO EDITOR
JENNA GREENE ASSISTANT PHOTO EDITOR
EILEEN TSUJI PHOTO STUDIO MANAGER
TRICIA VANGESSEL BOOKINGS & PRODUCTION EDITOR
EMILY TAYLOR PHOTO STUDIO ASSISTANT
GEORGE CHINSEE, STEVE EICHNER, THOMAS IANNACCONE PHOTOGRAPHERS
BEAUTY INC ADVERTISING
PAUL JOWDY SENIOR VICE PRESIDENT, GROUP PUBLISHER

and at the
premiere of
Whiplash.

GIRL
OF THE
MOMENT
MELISSA BENOISTs career is about to, quite

literally, soar. The 26-year-old Glee alumna, who also

had supporting roles in Homeland and The Longest
Ride, was cast as the lead in Supergirl, CBSs big bet for
fall whose trailer garnered more than 10 million views
in one week. Debra Birnbaum, executive editor of TV
at Variety, calls it a career-making role. Everyones
been waiting for a female superhero to grace the small
screen and Melissa is going to become a household
name, she says. But beyond Benoists singing, dancing
and acting, its the Colorado natives girl-next-door vibe
that will drive her career. Shes absolutely relatable,
says Birnbaum. When I met her, we bonded over
our shared love of Starbucks and Chipotle!
ANNA DYSINGER

6 WWD BEAUTY INC

INDEPENDENT SPIRIT AWARDS PHOTO BY JASON MERRITT/GETTY IMAGES; SUPERGIRL BY BONNIE OSBORNE/WARNER BROS. ENTERTAINMENT INC 2015 WBEI; WHIPLASH BY MICHAEL BUCKNER/GETTY IMAGES

power posing
in Supergirl

PAMELA FIRESTONE ASSOCIATE PUBLISHER

CARLY GRESH BEAUTY DIRECTOR
JILL BIREN WEST COAST DIRECTOR
MARJORIE THOMAS EUROPEAN SALES REPRESENTATIVE
OLGA KOUZNETSOVA ACCOUNT DIRECTOR, ITALY
JOANNA BLOCK SENIOR CLIENTS SERVICES MANAGER
EMANUELA ALTIMANI SENIOR SALES COORDINATOR, ITALY
PASCALE RAJAC ADVERTISING ASSISTANT, FRANCE
TINA SCHLISSEL ACCOUNT MANAGER
ANNIE BELFIELD WEST COAST SALES COORDINATOR
MARKETING/CREATIVE SERVICES
SHANNON NOBLES MARKETING DIRECTOR
CASS SPENCER CREATIVE DIRECTOR, MARKETING
CHRISTINA MASTROIANNI PUBLIC RELATIONS COORDINATOR
PRODUCTION
KEVIN HURLEY PRODUCTION DIRECTOR
ROBYN WIXMAN ASSOCIATE PRODUCTION MANAGER
PREPRESS PRODUCTION
ALEX SHARFMAN DIGITAL IMAGING
DAVID LEE CHIN ASSEMBLY
CONSUMER MARKETING
ELLEN DEALY VICE PRESIDENT & SENIOR EXECUTIVE DIRECTOR
PEGGY PYLE CONSUMER MARKETING DIRECTOR
JANET MENAKER SENIOR DIRECTOR, DIGITAL MARKETING & STRATEGIC DEVELOPMENT
JOHN CROSS PLANNING & OPERATIONS DIRECTOR
RANDI SEGAL SENIOR DIRECTOR, INSTITUTIONAL SALES
SUZANNE BERARDI SENIOR ONLINE MANAGER
TAMRA FEBESH SENIOR MARKETING MANAGER
LAUREN BUSCH ASSOCIATE MARKETING MANAGER
FAIRCHILD PUBLISHING LLC
STEPHANIE GEORGE PRESIDENT AND VICE CHAIRMAN
MICHAEL ATMORE EDITORIAL DIRECTOR, FOOTWEAR NEWS & DIRECTOR OF BRAND DEVELOPMENT
DEVON BEEMER FINANCE DIRECTOR

FAIRCHILD PUBLISHING LLC IS A DIVISION

OF PENSKE MEDIA CORPORATION

JAY PENSKE CHAIRMAN & CEO

GERRY BYRNE VICE CHAIRMAN
PAUL WOOLNOUGH EXECUTIVE VICE PRESIDENT, BUSINESS AFFAIRS
GEORGE GROBAR EXECUTIVE VICE PRESIDENT, STRATEGY AND OPERATIONS
MICHAEL DAVIS CHIEF OF VIDEO STRATEGY
NELSON ANDERSON VICE PRESIDENT, CREATIVE
STACEY FARISH SENIOR VICE PRESIDENT ENTERTAINMENT & PUBLISHER DEADLINE
CRAIG PERREAULT SENIOR VICE PRESIDENT, BUSINESS DEVELOPMENT
TODD GREENE GENERAL COUNSEL & SVP HUMAN RESOURCES
GABRIEL KOEN VICE PRESIDENT, ENGINEERING
KEN DELALCAZAR VICE PRESIDENT, FINANCE
TARIK WEST VICE PRESIDENT, HUMAN RESOURCES
LAUREN GULLION DIRECTOR OF HUMAN RESOURCES & CORPORATE COMMUNICATIONS
ROBB RICE GROUP DESIGN DIRECTOR
JONI ANTONACCI DIRECTOR OF OPERATIONS
YOUNG KO CONTROLLER
CHRISTINA YEOH SENIOR PROGRAM MANAGER
EDDIE KO DIRECTOR, ADVERTISING OPERATIONS
MATT WILLIAMSON DIRECTOR OF IT OPERATIONS & PRODUCTION
DEREK RAMSEY SENIOR PLATFORM MANAGER

 2014 COTY US LLC

Nail the look with Pink Tank

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TOO FACED
Love Flush, $26
Sweet! The highly
pigmented shades
deposit bold color and
are said to last for up
to 16 hours.

DIOR Diorskin
Nude Tan Tie Dye
Edition Blush
Harmony, $57
The superne texture
and blend of colors
create a soft, sunkissed effect on skin.

CHANEL Les Beiges

Blush, $45
The creamy formula
in stick format blends
easily to highlight or
sculpt cheekbones for a
day-in-Deauville vibe.

URBAN DECAY
Afterglow 8-Hour
Powder Blush, $26
Featuring shades
ranging from neutral
peach to bright
purple, this powder
has light-diffusing
pigments to help hide
imperfections.

THE BODY SHOP

Honey Bronze
Highlighting
Dome, $16
This easy-to-use pot
of color provides a
hint of shimmer and
smells like honey.

Cheek Chic

First came eyes, then lips. Is blush the

next big thing? The category increased
3 percent in the prestige market for the year
ending March 2015, according to The NPD
Group. Makeup marketers are hoping for
a boost this spring with a host of innovative
new formats. ANNA DYSINGER

PHOTO BY JOHN AKEHURST; PRODUCTS BY GEORGE CHINSEE

SHELF LIFE

RODIAL Hyaluronic
Cheek Sculpt, $28
Part of the brands
rst makeup
collection, this
tinted gel features
hyaluronic acid to
help plump cheeks.

BEAUTY BULLETIN
LAUNCH PAD
ELIZABETH
HURLEY

THREE TO WATCH

JANE LARKWORTHY
AND LISA PERRY

WHO SAYS THE MAKEUP CATEGORY IS OVERCROWDED?

THESE THREE NEWCOMERS CERTAINLY DONT THINK SO. A.D.

DONNA KARAN
TONY BENNETT AND
ELTON JOHN

AERIN LAUDER AND

JANE LAUDER

FLASHPOINT

BREAST CANCER RESEARCH

FOUNDATION GALA

IN LIVING COLOR

Blue is
The Hue
Beauty brands are singing the
blues. Summers standout
color is cropping up in a slew
of products, from fragrance
to mascara, and consumers
(and celebs) are embracing it.
Case in point: ubertrendy blue
lipstick as seen at the Hyres
Festival in France. A.D.

Miley Cyrus
sported a
cobalt crop at
the Met Ball.

10 WWD BEAUTY INC

The new iteration

of Lipstick Queens
best-selling
Hello Sailor lipstick.

TrStique
After spending
years in cosmetics
manufacturing at
Intercos, Jennifer
Kapahi and Jack
Bensason were
inspired to launch
their own makeup
line designed to
simplify beauty
routines. All
products come
in stick form and
feature replaceable
smudgers, brushes
and sponges on
one end. $5 to $34;
trestique.com

Onomie
Lauren Hoffman,
a former product
developer for
Kiehls, says she
is bridging the gap
between makeup
and skin care with
her new direct-toconsumer brand.
Shes starting with
two eye products
that double as
concealers and darkcircle treatments
and will expand to
the face category in
the fall. $26 to $32;
onomie.com

Rodial
The skin-care
brand known for its
exotic ingredients
like dragons blood
is branching into
color. Founder
Maria Hatzistefanis
saw a need for
an easy-to-use
makeup range
that would allow
consumers to
create contoured
looks with products
like Eye Sculpt
and Instaglam Skin
Tint. $21 to $57;
Bluemercury

We Love Blue:
Lipstick Queen
Hello Sailor Lip
Gloss; OPI Color
Paints Indigo Motif;
Atelier Cologne
Cdre Atlas Cologne
Absolue; Charlotte
Tilbury Norman
Parkinson Filmstar
Bronze & Glow;
Benet Theyre
Real! Lengthening
Mascara in
Beyond Blue.

BCRF GALA PHOTOS BY STEVE EICHNER; MILEY CYRUS BY ALO CEBALLOS/GC IMAGES; PRODUCT PHOTOS BY GEORGE CHINSEE/ STYLED BY BARBARA SULLIVAN

April 30, 2015

If he were in England, he would have the
sword. He would be Sir Leonard by now,
crooned Sir Elton John at the annual Breast
Cancer Research Foundation gala, which
WILLIAM LAUDER
raised $7 million this year. The song was
AND LORI
KANTER-TRITSCH Johns way of presenting the chairman
emeritus of the Este Lauder Cos. Inc.
with the Roz and Leslie Goldstein Sung
Hero award. The honor is normally called
the Unsung Hero award, but as Roz
Goldstein pointed out, Lauder cannot
be called unsung. Am I the sung hero?
Lauder replied to Johns tribute. No, he
LEONARD LAUDER
said, gesturing to the Waldorf Astorias packed
AND JUDY GLICKMAN LAUDER
ballroom in gratitude. You all are.

ENTREPRENEURIAL EDGE

BRAVING NEW TERRITORY

Nicholas Karnazes bushy beard and camo garb may not scream beauty
entrepreneur but, in fact, it is the source of inspiration for his mens
grooming line, Stubble & Stache. After four years and two combat tours
in Afghanistan with a special operations unit, Karnaze left the military
and settled in D.C. to run an international simulation operations company.
Then, a friend, Sergeant Justin Hansen, was killed in action. I was growing
my beard out for Justins funeral and I realized the need for a product that
could pull double duty, says Karnaze. He ditched his day job and created his
rst product, a combination face moisturizer and beard conditioner. Men
are familiar with facial moisturizers; guys with beards are familiar with
beard oils, he says. The concept of something that does both was foreign.
Karnaze has since launched two additional products and plans to expand
into a full-edged skin-care line. Prices range from $22 to $54 and the line
is currently sold on Birchbox and at independent boutiques and barbers
in the U.S. Karnaze admits that one of his greatest challenges was simply
learning the industry. I went from a special operations and intelligence
Nicholas
community into mens grooming, he laughs. Thats not exactly a logical
Karnaze created transition. Karnaze has shown himself to be a fast learner. Mens skin care
his brand after
and grooming are trending in the right direction, he says. Its denitely a
a stint in the
military.
growing space. ANNA DYSINGER

SHELF LIFE

Lab Masters

The newest standout serums run the gamut from correcting to contouring. A.D.

APP WATCH

Periscope
When the live-streaming app
Periscope launched on March 26,
more than one million users signed in
within the first 10 days. It fills a gap in
the world of social media by allowing
users to connect with others in real
time through videos and exchange
messages during the broadcast. For
companies, Periscope allows for
instant, nonmoderated engagement
with a large audiencesomething
beauty brands are already tapping
into. It gives the consumer ultimate
transparency, says Claudia Allwood,
director of digital marketing at
Benefit, which has done live Q&As
on Periscope. Its an innovation that
breaks down the barriers between
brands and consumers. A.D.
12 WWD BEAUTY INC

New Dimension
Shape + Fill
Expert Serum,
$89
Designed to
help contour the
face, this serum
plumps skin with
hyaluronic acid
and firms with
a pro-collagen
complex.

LUMENE

CLARINS

KATE SOMERVILLE

BY TERRY

DARPHIN

Time Freeze
Instant Lift
V-Shaping
Serum, $30
Hailing from
South Korea, the
formula features
peptides and
soy protein said
to help tighten
and firm skin.

Mission
Perfection
Serum, $72
Acerola extract
from wild
cherries corrects
dark spots
without altering
skin tone;
ginkgo biloba
adds radiance.

Age Arrest
Anti-Wrinkle
Serum, $95
Sea mayweed
and kelp extracts
reduce the
appearance
of lines and
wrinkles;
peptides help
boost collagen
production.

Cellularose
Hydradiance
Serum, $116
Rose, watermelon
rind and appleskin extract
hydrate skin;
hibiscus flower
acid gently
exfoliates.

Exquisge
Beauty
Revealing
Serum, $155
Extracts of
plankton and
artichoke leaf are
said to improve
skins elasticity.

ALCHIMIE
FOREVER

Pigment
Lightening
Serum, $95
Blueberry and
vitamins E and
C help even
pigmentation
and lighten
brown spots.

KARNAZE PHOTO BY RYAN PORTNOY; PRODUCT PHOTOS BY GEORGE CHINSEE

ESTE LAUDER

BEAUTY BULLETIN

MAKE UP
FOR EVER

$165.00*

HIGH DEFINITION
PRESSED
POWDER, $22

FIRST AID
BEAUTY

DATE/TIME: 5.8.2015, 4:47 p.m.

STORE: Sephora

Ive tried a lot

of products that
havent really
worked, so [the
sales associate]
recommended
this.

TARTE

TOTAL SPENT

SHOPPER: Lily Reffitt

ANTI-REDNESS
SERUM, $36

inside J.C. Penney

LOCATION: 6051 Skillman St.,

Dallas

Whats in Lilys Bag?

AMAZONIAN CLAY
FULL COVERAGE
FOUNDATION, $39

Ive read really

good reviews
about it.

After getting her hair styled at the salon in J.C.

Penney, Lily Reftt, 25, headed into Sephora on
the hunt for foundation and a new primer. I
came for the Amazonian Clay foundation, says
the stay-at-home mom. I have sensitive skin so I
wanted to try something natural, and I like a liquid
foundation. Impressed with the sales associates
product knowledge, Reftt also purchased Make Up
For Evers Step 1 primer and HD powder as well as
a Sephora brush. They are really attentive to the
customers here, she says. Reftt likes to explore
YouTube videos and reviews on Sephoras Web site
to get ideas about new products. Makeup makes me
feel good about myself, she says. I dont wear it a lot,
but when I do I want the nicer brands.

SEPHORA

FLAWLESS
AIRBRUSH 56,
$32

MAKE UP
FOR EVER

STEP 1 SKIN
EQUALIZER
SMOOTHING
PRIMER, $16

KAT VON D

EVERLASTING
LIQUID LIPSTICK
IN LOLITA, $20

I love these
lipsticks, and
have been
waiting for this
color to be in
stock.

MAYBELLINE

SHOPPER STALKER: DALLAS

NYX

The Buy Side

LORAL PARIS
BENEFIT

$385.91*

TELESCOPIC
MASCARA, $9.99

HELLO
FLAWLESS
POWDER, $34

MAYBELLINE

TOTAL SPENT

GREAT LASH
MASCARA, $5.99

URBAN
DECAY

SHOPPER: JoJo Weinstein

DATE/TIME: 5.9.2015, 6:25 p.m.

BENEFIT

STORE: Ulta

SUGARBOMB BOX
OF POWDER, $28

LOCATION: 8160 Park Lane,

REVOLUTION
LIPSTICK, $22
URBAN DECAY

Its not super

bright, and gives
a nicely subtle
flushed look.

Dallas

Whats in JoJos Bag?

PERVERSION
MASCARA, $22

TOO FACED
URBAN DECAY

JoJo Weinstein has only just nished ninth grade,

but she is startlingly knowledgeable about makeup.
I contour daily, she says, noting that NYX Sunkissed
powder is great for quick color. Today, the 15-year-oldhas 20 products in her bag as she stocks up for nine
weeks of summer theater camp in upstate New York.
I was out of a lot of stuff, JoJo says, so were making
our Ulta run like we do every few months. Its like
going to the grocery store, adds her mother, Christi.
We make a list. JoJo says that Acacia Brinley, one of
her makeup idols on YouTube, recommended most
BENEFIT
of the items she chose, then explains why she wanted
PUFF OFF!,
$29
each of them. This is for undereye pufness, JoJo says
of Benets Puff Off! Its like a little ironhow cute
REVLON
PHOTOREADY
is that? Youre 15. You dont have puffs, her mother
CONCEALER,
counters. Still, they buy it. In the end, only Anastasia
$10.49
Beverly Hills Lash Genius Waterproof Topcoat was cut, Its really heavy
coverage and
and that was because Christi had an extra at home.
photographs
*Pretax total.

14 WWD BEAUTY INC

well.

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RECOGNIZING EXCELLENCE IN LUXURY SERVICE

LORAL LUXE IS PROUD TO PARTNER WITH WWD BEAUTY INC TO RECOGNIZE LANCME
COUNTER MANAGER CONNIE ROSS FOR EXCEPTIONAL CUSTOMER SERVICE IN LUXURY BEAUTY.

In partnership with WWD Beauty Inc,

Lancme, a brand of LOral Luxe,

When a client is in
my
all mine. Nobody els chair, shes
es.

recognizes beauty advisors who

best exemplify the LOral ideals of
customer service in luxury beauty.
In this issue we honor Lancme
counter manager Connie Ross
of Dillards Odessa, Texas.

Everyone is family at Connies

Lancme counter. This month Im

like the
Theres no connection
nt.
clie
e
cm
Lan
a
h
wit
one

doing a clients prom makeup. Ive

been sitting her in my chair and
putting lip gloss on her since she
was a toddler. Its like family: rst
the mother, then her baby, and now
that baby is going to prom. Building
relationships is the most rewarding
part of my work. I couldnt ask for a
better job.

nts
sion. Clie
have pas g a job.
to
e
v
a
h
oin
You
ure just d
know if yo

Go to: lancome-usa.com/careers
to learn more about Connies
commitment to luxury service.

Excelle
nt
experien service is makin
ce all ab
g the
out the
client.

CONNIE ROSS
LANCME COUNTER MANAGER
DILLARDS ODESSA, TEXAS

BEAUTY BULLETIN
for green juices, theres a
similar shift taking place
in beauty. For the 52
1. Doctor
weeks ending November
Green:
The sweetness
2014, natural and organic
of red apple
beauty products grew
and pineapple
cuts out the
24 percent, according to
bitterness of
Nielsen. As the category
kale.
explodes, the consumer
mind-set is shifting
2. Ginger
Fireball:
to equate beauty with
Orange, lemon,
wellness. Isnt it sad that
ginger, cayenne
extract and oil
it took [until] the year
of oregano are
2015 to actually say that?
said to boost
the immune
says Antebi. Genes
system
dictate disease and aging
as little as 20 percent
3. Mother
the rest is all lifestyle.
Earth:
Labeled the
As proof, he points
greenest green
to the skin around his
drink, this
blends leafy
eyes, relatively line-free.
vegetables
I dont actually use any
like kale and
skin-care products, he
Swiss chard
with lemon and
says. Im so happy that
ginger
at 46 Im still looking for
those wrinklesI dont
4. Love at
First Sight:
have them.
A sweet juice
While Antebi may be
that combines
a testament to lifestyle
green apple,
kale, spinach
choices, the majority
and lemon.
of consumers are still
reaching for creams to
5. Doctor
Earth:
combat aging. Whats
A blend of the
missing from the natural
top-selling
Doctor Green
and organic product
and Mother
offering, he says, is in
Earth.
the packaging. I dont
want to see the idyllic
woman with good hair, he says, pointing to an
all-natural hair-dye kit tucked on a shelf at Whole
Foods Columbus Circle. I want you to tell me right
now why this isnt going to make me sick. These
guys are not doing a really powerful job of saying,
No parabens! All natural! As effective as you can be
without putting f---king poison in it!
That, he says, will sell.
People are concentrating nowfrantically
reaching for productsthat are going to do
something that their body cant do, he says. The
body is unbelievable at healing and cleaning and
ltering. He predicts that in 12 years, the idea of
preventative beauty through lifestyle will come
to fruition. In fact, hes already selected a star
ingredient: green pepper juice. Even though it
doesnt taste good, its rich in vitamin C, he says.
One of the atomic elements in it is silicon, [which]
makes up your skin, hair and nails.
If it all sounds pie in the sky, Juice Press continued
growth would suggest otherwise. My consumers
coming through the door, he says, they get it.

For a lot of people, coming to Juice Press means

they are doing something good for themselves, says
Antebi. The consumer is educated enough to know
that there is a way they can take care of the whole
system all at one time.
Very few of Antebis customers are strict vegans,
but rather, the lifestyle is very typical of people
who have reached a higher consciousness with their
health interests, he says. Our customer ranges
MARCUS ANTEBI, the outspoken founder
from urban skateboarder dudes to women who have
of Juice Press, talks about the blurring
castles on 65th and Madison.
lines between beauty and wellness.
Whats driving Juice Press rapid growth, says
BY ANNA DYSINGER
Antebi, is a combination of consumers increasing
interest in wellness, easy access to information
online and the realization that incorporating juices
arcus Antebi bursts through the
doors of the 55th Street Juice Press, into their diet provides a slew of benets. He
already has an idea that drinking juice or having a
a tattooed ball of energy clad in a
smoothie is going to make him feel better and have
black T-shirt and cuffed jeans. He
energy, says Antebi.
beelines for the refrigerator and
But what sets Juice Press apart from the other
chugs half of an OMG! green juice
chains? Transparency, Antebi is quick to say. My
before dumping a slew of probiotics in his hand and
kitchen is made out of glass. We follow all of our
swallowing them in one gulp.
supplements and sources directly to where theyre
That, in a nutshell, is the 46-year-old founder of
grown, manufactured and
one of New Yorks largest juice chains. Hes
handled. That, and his
active (a former skydiver and Thai
tongue-in-cheek advertising.
boxer), 29 years sober and a
When Chipotle recently
devout advocate for a clean
released an ad committing
lifestyle that includes plenty
ANTEBIS KEY
to GMO-free ingredients,
of juice and raw food.
INGREDIENTS
Antioxidant-rich fruits
Antebi responded with
As hes grown his empire
like cherry, blueberry
his own: A big F#*K off
to 25 locations in New York and
and pomegranate
top his list.
to GMOs. We have always
Connecticut over the past ve years,
been organic and therefore
hes witnessed a dramatic shift in the
our produce has never had
consumer. Whereas juicing used to be
genetically modied anything.
about quick-x weight loss, his customers
As more consumers reach
are now interested in overall health.
FOOD FOR THOUGHT

All Systems
Go

M
16 WWD BEAUTY INC

PHOTOGRAPHED BY LEXIE MORELAND

BLUEBERRIES PHOTO BY RIBEIROANTONIO; CHERRIES BY KZWW; POMEGRANATE BY AFRICA STUDIO

JUICE PRESS
TOP SELLERS

SOCIAL STUDIES

THE CALIENTE LIST

KAREN GUTIERREZ

@karengnails
Celebrity manicurist Karen
Gutierrez works on a lot of big
stars, like Eva Longoria and
Gina Rodriguez. Her feed is
arty but not too over the top.
(80k followers)

Latinas are not only among the most engaged

beauty consumers, they are also among the most
active when it comes to social media. Here, the
very plugged-in Patricia Reynoso, editor of Glam
Belleza Latina, shares her favorite inspiring and
inuential Latina beauty Instagrammers.
DOMINICAN FASHION MODELS

CLAUDIA BETANCUR

@dominicanfashionmodels
This feed is a must for keeping up with
new Latina models. Theres so much talk
about diversity on the runwaythis keeps
me up to date on which girls are walking
the shows. Right now, the site focuses on
just Dominican girls but Im hoping they
branch out and do girls of all countries.
(4.4k followers)

@betancurclaudia
LOral just signed Claudia
Betancur, the Miami-based
makeup artist behind many
Latina stars, including Thalia.
Her feed is super insider-y, with
a sense of fun and girl power.
(23.6k followers)

ALEJANDRA ESPINOZA

ALBA GARCIA

@aleespinozatv
Ive been a fan of TV personality
Alejandra Espinoza for years. The winner
of Univisions first beauty pageant, she
is the host of Simon Cowells new reality
show, La Banda. She is beautiful, but
she kept me coming back for more when
she chronicled her first pregnancy. (Baby
Matteo arrived in March!) Her feed is like
a novella. I check it every day.
(945k followers)

@sunkissalba
Ive had my eye on hair vlogger
Alba Garcia for a while. She
started posting hair tutorials on
YouTube and the rest is socialmedia history. Her Instagram
feed will make you a believer in
wearing your hair naturally curly.
It looks that good.
(201k followers)

NEWSMAKER
F O R U M

BEAUTY

DISRUPTORS:

INDIES
JENNY FRANKEL
President & Founder,
Nudestix

DR. ROSHINI RAJ

Founder, Tula

SABRINA TAN

Before
The subtle color
scheme was not
eye-catching, nor
was the bottle-ashero product shot.

After
The copy
is written in
approachable
language.
Were
communicating
more as a
friend, notes
YamagishiDressler.

MARKETING MAKEOVER
The language
was too
sophisticated
and not
relatable. It
communicated
the quality of
the product, but
we needed to
lighten it up,
says YamagishiDressler.

The graphic
design is fun
and playful.
Brighter colors
pop and add
visual interest.

Handwritten
type takes the
seriousness
out of the ad.

VISUAL APPEAL
Shiseidos Ibuki skin-care line
is tailor-made for Millennials,
but the ad campaign, created
for the brands launch in 2013,
didnt speak to them at all.
Millennials dont want brands
to talk at them; they want
brands to communicate with
them, says Tomoko YamagishiDressler, senior vice president
of marketing. Thats where
relatability comes in. We have to
speak her language as opposed
to our brand messaging. This
year, Shiseido retrenched,
creating a new campaign
for Ibukicomplete with fun
language and colors that pop
that launches in August with
a digital campaign and social
media push. Here, some key
changes. A.D.

Founder, Skin Inc.,

Skin Supplement Bar

KEYNOTE ADDRESS:

VENNETTE HO
Managing Director,
Financo
Moderated by:

JILL SCALAMANDRE
SVP, philosophy & CMO, Coty Skincare,
Coty Inc. & CEW Chairwoman

6.24.15
THE HARMONIE CLUB, NYC
R E G I S T E R N O W AT

C E W. O R G

BEAUTY BULLETIN
SHELF LIFE

Wonder Waters
Mists and lotions in watery formats move
beyond just hydrating benets. A.D.

AMORE PACIFIC

A follow up to
the brands
2013 nergie
de Vie launch,
its first skincare collection
based on
Asian trends.

REQUIRED READING

FORWARD (E)MOTION

SUN PROTECTION
MIST, $75

YES TO
CUCUMBERS

The weightless spray

protects from UVA
and UVB rays, and
hydrates and cools
skin with matsutake
mushroom.

SOOTHING COOLING
HYDRATING MIST,
$10.99

Cucumber, green
tea extract and aloe
soothe and soften
skin; menthol gives a
cooling sensation.

For devoteesand more than 12,000

people book a class dailySoulCycle isnt
a spin class. Its a spiritual adventure. And
Amy Peck, the vice president of culture
and training, is the heart and, well, soul,
of the organization. While the former
magazine executive admits that learning to
manage Souls ever-expanding team was as
challenging as a 60-minute Soul Survivor
class, she has honed her skills through
research and reading. Here, Peck shares
her favorite management books:
Who Moved My Cheese?
BY SPENCER JOHNSON

Change is hardfor everyone. This is

a quick, easy read that gives people
tools to deal with change. I read it
often these days, and gift it to anyone
who is struggling.

LANCME
NERGIE DE VIE
DULLNESS RELIEF &
ENERGY RECHARGE
DAILY LOTION-INGEL, $50

Delivering Happiness
BY TONY HSIEH

This has everythinginspiration, tools,

history and experience. Zappos ceo
Hsieh gives it all awaywhat worked,
what didnt and how anyone can
improve their staff engagement while
making customers happy.

A watery gel
texture provides
lightweight
moisture and
refreshes dull
skin.

CLINIQUE
TURNAROUND
REVITALIZING
LOTION, $34

Caffeine boosts
skin, hyaluronic
acid moisturizes
and pomegranate
fruit juice restores
radiance.

LORAL PARIS
POWER MOISTURE 10
SECOND HYDRADETANGLER, $6.99

Receiving negative feedback is at best

frustrating and at worst traumatic. No
one has an easy time with hearing
or processing criticism. Most (if not
all) of us take it personally and barely
comprehend the content. This book
gave me some neutral and practical
ways to receive feedback, as well as
make changes for the future.
The Happiness Advantage
BY SHAWN ACHOR

This book outlines how to be happier

at work and at life. It breaks down
seven basics that prove when we have
a positive attitude, we become more
engaged, motivated, energetic and,
ultimately, happier.

KATE
SOMERVILLE
NOURISH HYDRATING
FIRMING MIST, $48

Extracts of beet and

blue-green algae
hydrate and tone
skin; lavender and
orange essential oils
offer a relaxing scent.

18 WWD BEAUTY INC

BY DOUGLAS STONE AND SHEILA HEEN

This three-inone energizes,

hydrates and
exfoliates skin.

Setting the Table

BY DANNY MEYER

One of the best hospitality books

written, this has real, tangible actions
that companies and teams can put
into place to improve immediately.
Every chapter is a gem.

PRODUCT PHOTOS BY GEORGE CHINSEE

The lightweight
leave-in mist
hydrates hair with
hyaluronic acid and
helps detangle.

Thanks for the Feedback:

The Science and Art of
Receiving Feedback Well

KATY PERRY

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2014 P&G

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ET,
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nce during an interview, Leslie Blodgett

of Bare Escentuals was asked if it was true
that mineral makeup was already being
sold on the market before her bareMinerals
powder foundation landed with a thud and
changed everything.
She was quick to reply.
There was coffee before Starbucks, Blodgett
said. We took something that wasnt selling in stores
and made it easy to understand. We gave people a
reason for it.
It is a moment worth remembering, as WWD Beauty Inc
introduces our list of the 50 top Power Products that made a
difference in the development of the global beauty industry.
Blodgetts quip serves as a reminder of the market-making power
of perceptive product development and the magic of branding.
A product can come along and change the way women look
at beauty, and in the process, actually increase consumption in a
category. A hot product certainly has functionality. But what makes
it a power player, one that can endure as long as Chanel No. 5, for
instance, are values and personality. In short, a products unique
DNA is what enables it to create a space and morph into a brand in
its own right. As it grows in consumer appeal, a power product can
generate enough cash ow to sustain itself for years, if not decades.
John Demsey, group president of the Este Lauder Cos., who
built MAC Cosmetics into a global powerhouse, points to products
that became their own brandStrivectin, Burts Bees and Crme
de la Mer, which grew from a one-size single stockkeeping unit
moisturizer into the fourth-largest skin-care business in the U.S.
We are in a more entrepreneurial period right now, Demsey
says, attributing this new age of indie product creation and
branding to the Internet and blogosphere, where everybody has
their 15 minutes of fame and everybody is an expert. You can
connect with an audience if you have you have something that is
superior or differentiated and makes a market, an opportunity
which didnt exist before, he says.
Before, he continues, If Macys or Bergdorfs wouldnt take you,
you werent in business. [Now] you can go direct to the consumer.
We are no longer a permission-based market, he says.
Vennette Ho, managing director at Financo and head of
personal care, agrees the pace of building a business has
accelerated from the old days, when the Chanels of the world could
take years to establish themselves, to the current speed of todays
digital universe, and what she calls the democratization of brand
building because everybody has a chance to do it. But once the
initial pop has dissipated, brand builders have to nd ways to keep
their newly won viewers interested, and theres an added trick that
has to be accomplished. Its got to become a business before its a
brand, other wise it cant sustain [itself], she says.
Demsey observes that todays market is actually an ecosystem
that is far more diversied and complex, and the white space may
not be as big. There are lots of tiny white spaces that are being

lled by a new generation of indie brands.

A high-level marketer from another company advises, Stop
watching what your competition is doing and start understanding
what would be a breakthrough for your customer.
Breakthroughs can be made on several levelssuch as by
taking what consumers view as common knowledge and giving
it a twist, like selling Giorgio fragrance through scent strips in
magazines, which jolted the market back in the Eighties. You can
innovate with the product itself or with the way you distribute it
or the way you market it the executive says. Its enough to do an
innovative product that the customer cannot get anywhere else.
One thing that all great brands have is authenticity, adds
Demsey. There are lots and lots of great products, but if they
dont have an authentic back story or they dont have an authentic
reason to be, they get lost.
But theres no lack of opportunity. People who know how to
work with the money side of things do very well in this climate,
says brand creator and former indie brand retailer Robin CoeHutshing, referring to how the merger-and-acquisition scene has
opened the eld.
Theres plenty of room out there if you do your initial strategy
correctly, says Coe-Hutshing, who is creative brand strategist for
Beauty Underground. Some people are doing extremely well,
she adds, citing start-up brands like Julep and Glossier for their
ability to raise capital by carving out a path with a blend of social
media and beauty, as well as direct-sell brands like Rodan + Fields,
Beautycounter, Arbonne and Melaleuca. The doorbell chime has
been replaced by the mail alert, she says.
But Coe-Hutshing also dishes up caveats: There are fewer
stores to cater to start-ups; retail consolidation has produced
more powerful retailers, like Sephora, which struggling young
brands have difculty supplying and supporting, and legal and
regulatory requirements can be confusing. But on the plus side,
crowdsourcing and social marketing have offered foundations for
digital-rst businesses to hone concepts, spread messages and
achieve nancial progress ahead of the curve.
Then theres the consumer, who also has changed moods.
Wendy Liebmann, founder of WSL Strategic Retail, has noticed
some ambivalence creeping into the aisles, perhaps as a hangover
from the great recession. Women still have their favorite brands,
Liebmann says, but in most categories, two or three [other]
brands are equally good enough. And she may buy one of them
if theres price promotion or a gift involved. Due to the industrys
proclivity to hop onto the next best thing, there is a lot of choice
out there, especially with the ood of indie brands. It becomes
confusing, Liebmann says. People either stick with what they have
or they buy whats on promotion.
Looking at this added layer of complexity, Liebmann observes,
The innovative things can often get lost in the swell and noise,
unless youve got tons and tons of money to tell your story. Or, as
these products attest to, one hell of a story to tell.

Pete Born

Axe

Chanel

Cover Girl

DEODORANT BODY SPRAY

NO. 5

LASHEXACT MASCARA

This product singlehandedly changed

how Millennial men
fragrance themselves.

The doyenne of designer

fragrances maintains
its modernityand
momentumwith
the most innovative
marketing campaigns in
fragrance.

In a category not known

for innovation, Cover
Girls revolutionary
molded silicone brush
created a new pathway
for mascara.

Bare Escentuals

BAREMINERALS POWDER
FOUNDATION

The mother of the

mineral makeup
movement, it pioneered
a new place for powder.

Dior
Clairol

DIORSHOW MASCARA

NICE N EASY ROOT TOUCH-UP

From backstage to the

beauty counter, this
has become the gold
standard for translating
the runway into retail
sales.

This 2005 breakthrough

changed the way women
approach maintenance.

Benet

BROW ZINGS

Clarins

Without Benet, there

would be no brow
category. This little kit,
complete with its own
tiny tweezer, started
it all.

BODY SHAPING CREAM

Bobbi Brown

Clarisonic

LONG-WEAR GEL EYELINER

SONIC FACIAL CLEANSING

BRUSH

The little pot that could:

After the runaway
success of this product,
gel eyeliners became a
staple of both brands
and beauty buffs.

Cellulite had nothing on

French savoir-faire, which
convinced consumers
that the body-sculpting
category had legs.

This breakthrough
cleansing device brought
skin care into the
sonic age.

Clinique
Bumble and bumble

CHUBBY STICKS

SURF SPRAY

Lips, eyes, cheeks: There

was no facial area that
Cliniques chubby sticks
didnt conquer.

Many brands rode the

wave of cool-girl beach
hair ushered in by this
salt-infused spray.

Clinique
Calvin Klein

CK ONE

His? Hers? Who cared.

CK One made fragrance
young, modern and
unisex.

Chanel

VAMP NAIL COLOUR

The era of cult color in

the nail category began
with this blackish-red
hue, which rst hit stores
20 years ago.

EVEN BETTER CLINICAL DARK

SPOT CORRECTOR

By creating an overthe-counter product

with the efcacy of a
prescription-strength
spot remover, Clinique
brought brightening to
the 21st century with a
product that attracted a
multicultural market.

Diptyque Paris

SCENTED CANDLES

The evolution of scented

candles from air
fresheners into ambient
fragrances can be traced
directly to this chic
French pioneer.

Dr. Dennis Gross

ALPHA BETA PEEL

The two-step solution:

The appeal of at-home
acid-based peels soared
with the launch of
these pads.

Este Lauder

ADVANCED NIGHT REPAIR

The little brown bottle

pioneered nighttime
treatments and
continues to be a dream
product in the category.

Frdric Malle

EDITIONS DE PARFUMS

By making the
perfumerrather than
the marketingthe hero
of his line, Malle ushered
in a new age of niche
perfumery.

CND

Fresh

SHELLAC

BROWN SUGAR BODY POLISH

The original gel continues

to sell, sell, selldespite a
proliferation of imitators
in the professional and
retail markets.

Based on a recipe from

brand founder Lev
Glazmans grandmother,
this brown-sugar scrub
kicked off beautys
sweetest category.

Fresh

Jose Maran

MAC

SUGAR LIP TREATMENT

ARGAN OIL

VIVA GLAM

The $22 lip stick helped

propel high-priced
balms into prestige
market mainstays.

Supermodel Josie Maran

started an industrywide oil rush with her
argan oilbased line.

The original beauty

product with a cause,
which launched in 1994,
has raised more than $250
million to date for the
MAC AIDS fund.

Giorgio Armani

Klorane

MAESTRO FUSION MAKEUP

DRY SHAMPOO WITH

OAT MILK

After the launch of this

rst-to-market waterfree foundation, a deluge
of lightweight formulas
followed.

Call it the spray that

started the dry-shampoo
revolution. Now, no
hair-care brand is
without one.

GlamGlow

YOUTHMUD TINGLEXFOLIATE
TREATMENT

La Mer

The modern mask era

was born from this
Beverly Hillsbased
brand, which made mud
into a multimillion
dollar proposition.

The crme de la crme

of the premium-priced
skin-care market: After
this brand broke price
barriers, others didnt
hesitate to follow suit.

Issey Miyake

Lancme

LEAU DISSEY

GNIFIQUE YOUTH
ACTIVATING CONCENTRATE

Designer Issey Miyake

wanted a scent as
elemental as water.
The resulting ozonic
juice helped guide the
fragrance category
beyond orals.

This self-adjusting
serum suitable for all
skin types helped guide
skin care into the age of
individualization.

Lancme

JUICY TUBES

NATURAL GLOW DAILY

MOISTURIZER

Talk about a bright idea:

Gloss-mania kicked off
with the bold pops of
color and big shine these
little tubes promised.

Laura Mercier
JLo

TINTED MOISTURIZER

GLOW

Before BB creams, this

makeup-cum-skin-care
hybrid was the gold
standard of two-in-one
multitaskers. It still is.

Jennifer Lopez kicked off

the celebrity fragrance
juggernaut with her
freshman effort.

DREAM FRESH BB CREAM

Granted, Maybelline didnt

invent the genre, but it was
an early adaptor, gaining
a head start in whats
become one of beautys most
enduring new categories.

CRME DA LA MER

Jergens

This gradual selftanner for the body

revolutionized the athome bronzing category.

Maybelline New York

Nars

ORGASM BLUSH

Of course sex sells. But

the afterglow created by
this glowy blush showed
marketers how to turn
a hero product into a
franchise.

Proactiv Solution

3 STEP SYSTEM

The infomercial acne

pioneer whose success
was predicated on
selling a multiproduct
regimen rather than a
star ingredient, Proactiv
took acne beyond benzoyl
peroxide.

Pureology

SERIOUS COLOR CARE

Created by Jim Markham

as a sulfate-free hair-care
alternative for a friend
with cancer, Pureology
started the movement for
sulfate-free clean hair
products.

Revlon

COLORSTAY LIPSTICK

John Frieda

LOral Paris

FRIZZ EASE HAIR SERUM

MOUSSE ABSOLUE
HAIR COLOR

The silicone-based
serum started the
modern-day antifrizz
movement.

24 WWD BEAUTY INC

Unique dual-chambered
packaging delivers the
rst multiuse at-home
hair-color product.

The original long-wear

lipstick, its impacton
Revlons sales and the
industry overallwas
equally as enduring.

Sally Hansen

Thierry Mugler

Vaseline

MIRACLE GEL

ANGEL

Many promised athome gel manicures.

Sally Hansen delivered
with a two-step lacquer
and top coat that sent
labs everywhere into
overdrive.

This polarizing gourmand

scent transformed vanilla
into an olfactive star
and showed marketers
that perfumes with a point
of view could blossom into
classics.

INTENSIVE CARE SPRAY

MOISTURIZER

Shiseido

Tom Ford

BENEFIANCE PURE RETINOL

INTENSIVE REVITALIZING
FACE MASK

OUD WOOD

Yves Saint Laurent

Tom Ford rened the

appeal of oud and
created a mens category
particularly resonant
in rapidly emerging
fragrance markets.

OPIUM

Shiseidos retinolinfused two-piece mask

set the stage for the rise
of the sheet mask, one of
beautys most dynamic
new categories.

By creating a spray
mechanism that delivers
fast-drying body lotion,
this heritage brand
has reinvented body
moisturization for the
iFast generation.

The call of the wild: When

Opium made its debut,
its decadent launch party
symbolized the risqu
appeal of the Oriental
scent. More than 35
years later, YSLand
othersstill harness
the provocative powers
inherent in the original.

Urban Decay

NAKED EYESHADOW PALETTE

Smashbox

PRIMERS

Long before the sele,

Smashbox set forth its
primer range for photoready skin.

FOR
TOMORROW
HERE, BRISK SELLERS THAT EXPERTS
SAY HAVE THE POTENTIAL TO KICK OFF
CATEGORY EXPANSION.

HOURGLASS
AMBIENT LIGHTING
PALETTE
Talk about a bright
idea: Hourglass
founder Carisa
Janes has created a
product that mimics
the most flattering
lighting.

FOREO LUNA
By combining
cleansing and
antiaging in one
tool, Foreo is
taking devices to
a new level.

BOSCIA KONJAC
CLEANSING SPONGE
WITH BAMBOO
CHARCOAL
This cleansing and
exfoliating sponge
infused with active
ingredients is a hit
well beyond the
green crowd.

There was nothing

beige about the reaction
that Urban Decays
palette of neutral
eyeshadows provoked
among consumers and
competitors alike.

COVER FX CUSTOM
COVER DROPS
Continuing to push
boundaries in the
customization
area, Custom FX
created these drops
to be added to
moisturizers, serums,
oils or other liquids
to turn any product AMOREPACIFIC
into a foundation.
CUSHION COMPACT
Developed by
AmorePacific,
cushion compacts
helped Koreas
biggest beauty
company establish a
foothold in the U.S.

Yves Saint Laurent

TOUCHE CLAT

This chic gold click pen

illuminated a whole
new makeup category:
highlighting.

LIVING PROOF
PRIME STYLE
EXTENDER
Living Proof took a
hot makeup category
and extended it to
hair with a product
that promises to
make hair look better
longer.

NUDESTIX
MAKEUP
CRAYONS
Less than a year
old, this makeup
line comprised
only of pencils
and crayons is
already inspiring
imitators.

SUPERGOOP!
DEFENSE REFRESH
MISTING SPRAY
WITH ROSEMARY
By pulling triple
duty, this mist moves
beyond sunscreen
with added benefits
like oil control and
makeup setting.

TOM FORD FOR

MEN CONDITIONING
BEARD OIL
Leave it to Tom Ford
to capitalize on the
rapidly growing
mens market with
a chic and unique
interpretation of the
oil boom.

LORAL PARIS
REVITALIFT
MOISTURE BLUR
Consumers were
very clear about the
positive benefits
from LOrals
first-to-market blur
technology.

Chemistry
Set
WATCH WHAT HAPPENS WHEN TWO OF THE
MOST CHARISMATIC FIGURES IN BEAUTY COMBINE
THEIR CONSIDERABLE ENTREPRENEURIAL TALENT.
BY JENNY B. FINE
PHOTOGRAPHED BY BEN HOFFMANN

Iman and Jay, youve known each other for a long time.
How did you rst meet?
JAY MANUEL: We rst met for a cover photo shoot.
Iman had always been an idol of mine. When I was a
teenager, I used to have all of the fashion ads and pictures on my wall and, of course, I had pictures of Iman.
IMAN: You see! Everybody says, When I was a teenager or When I was a child!
MANUEL: So Iman shows up and I was like, OK, now
weve got to do Iman glam. As soon as I was done, she
says, Can I say something?
Im thinking, uh oh, what did I do wrong? She says,

26 WWD BEAUTY INC

It looks great. I still felt like there was a but coming. Then she said, But you did my makeup in about
half the time of anybody else. I thought, Is this a good
thing, a bad thing? And then she said, I feel like I look
retouched.
IMAN: To me, I nd a lot of times makeup artists give
you their look. So you almost can see who did your
makeup. What I liked about what Jay did at that shoot
and what he is still good at, is how individual he makes
everybody look. When you look at yourself, you look
like your beautiful you. And then, more importantly, it
takes less time and you look like you are retouched.
MANUEL: Its not about putting your stamp on it. Its
about taking their individual brand and look and elevating it and doing your thing. Soon after that, I started playing around with airbrushing, mixing these formulas specically for Iman and traveling [with her].
IMAN: I remember a trip to the Cannes lm festival. I
was under contract with De Beers, for the launch of a big
diamond collection, and it was amazing, wherever I was
shot, it didnt matter, I always looked great.
How long ago was that?
MANUEL: Seventeen years ago.
IMAN: This is how good he wasat times, I would call
him and say, I need you to do my makeup. Im going
out this evening. Hed say, I cant, Im working all day,
so I would go to his apartment in the morningin the
morningto have my makeup done for that night and it
would still be fresh.

So youve really seen Jays career evolve.

IMAN: Evolve and just blossom.
MANUEL: It was Iman who said to me, You are doing
more than just makeup with a lot of your clients. You
need to be paid as a creative director. You need to be paid
for your postproduction. I remember, she sat me down
in her kitchen, she was making pasta with shrimp in her
apartment, and she said, This is what you need to focus
on. Shes very business.

Iman and Jay Manuel

in the garden of the
Crosby Street Hotel.

TKTKTKT

man may have one of the most famous faces in

beauty, but she also has one of the most astute
brains in the business. As the founder and chief
executive ofcer of Impala, she sells her namesake cosmetics line in about 2,000 mass-market doors and has estimated retail sales of $30
million. She also has an eponymous clothing
and accessories line on HSN.
Now, Iman is expanding her empire with
Jay Manuel Beauty, a color brand created by
the makeup-artist-turned-TV-star best known
for his work on the Next Top Model franchise.
The brand launched on HSN this spring, and
brick-and-mortar distribution is currently under discussion. Sources estimate it could reach
$8 million in rst-year retail sales.
Recently, Iman and Jay Manuel sat down
with WWD Beauty Inc at the Crosby Street Hotel and talked about everything from diamonds
to distribution strategy. Clearly the duo are fast friends,
but where Iman is a dramatic orator, who speaks in capital letters, exclamation points and rolling Rs, Manuel is
all business, sprinkling his remarks with continual references to his brands unique selling points. Together,
though, they speak the lingua franca of consumers and
the industry alikea powerful combination that they
believe will pave the way for beautys next big brand.

TKTKTKT

WWD BEAUTY INC

27

How did the idea for the line come about? Had it been
germinating for a while?

HERS
Iman launched her eponymous
cosmetics line, geared
towards the multicultural
market, in 1994. Initially
available at J.C. Penney and
QVC, she staked out new
territory in 2004 in the mass
market. Sales have reached
$30 million at retail, thanks
to best-selling products
like the BB Crme and
Moisturizing Lipstick.

MANUEL: This has been 20 years in the making for

me, but in terms of hard development time, just over
two years. Im not selling my technique or my brand.
Im bringing my understanding of formulation to a
consumer level. As much fun as Iman and I have had
throughout the years, we would always talk business
and I learned a lot from her. When I felt it was time
[to do something] and I felt the technology had come
around to keep it at a price point that makes sense to
the consumer, I spoke to Iman. Ive learned so much
from her that it seemed natural to come to her rst.
IMAN: For me, it was the point of differencenot
between Iman Cosmetics and Jay Manuel Beauty, but
the point of difference between Jay Manuel Beauty
and whats in the marketplace. To bring something to
market, I needed it to have a unique story, a unique
brand and a unique personality behind it. Jay is his
brand and his brand is his currency. I dont speak for
him. I am not hand-holding him. I wanted to be able
to facilitate it, but it had to be about the product. If the
product wasnt something thats missing in the marketplace, I dont think we could have done much with
it. But that actually gave me the force to launch this
product, because it was unique.

How involved were you in the product-development

process?
IMAN: Absolutely not at all! I was not involved in the

product development. He is his currency. He knows everything about his product. What we were able to do is
produce it and support the business side of it. I didnt
want to hand-hold a new line. God knows, I know how
hard it is to launch a cosmetics brand nowadays.
MANUEL: I think a lot of the larger brands are still
trying to market to their own objectives and ll what
they think the white space is. Whereas, a lot of the
differences that I have put into my products are born
directly from the questions and concerns that women
have given me, either by stopping me in the street or in
an airport or if Im shopping or even online, especially
through social media. When I came to Iman I had the
technologies and products that I thought really address what consumers are asking for.
Which is what?
MANUEL: A lot of women have told me they want
this more-ltered illusion to the skin. A lot of makeup

28 WWD BEAUTY INC

and foundation products show up on their face and

they want to be able to have it not look like makeup.
That is a big concern.
IMAN: The consumer lters everything now, she plays
with everything, she is knowledgeable on how to do it.
There are so many appsa makeup artist showed me
one the other day where you can literally adjust and rotate your face to any angle you want or elongate your
neck. Customers are doing this on their iPhones.
MANUEL: Thats the key. Its knowledge. Now that
the consumer is armed with that kind of technology and knowledge, and as the beauty industry has
evolved, she is more comfortable with doing more
and understanding more, whereas 10 or 15 years ago,
it was all about the basics. Now, everyone is talking
about contouring and highlighting.
Is it primarily a younger consumer whos comfortable
with this level?
IMAN: Not necessarily. I think its across the board.
Im reaching 60 and I know about this, not just because Im in the business, but because its available.
When something is available, you play with it. If a
20-year-old is going to retouch her face when she
takes a photo, you know a 50-year-old will be the rst
one to do it, because it is benecial to her. At the end
of the day, the younger generation lives through their
pictures. What women over 30 want is how to look like
their pictures in real life. If a [photo] lter can do that,
why cant my makeup do that? How can I simplify it so
it looks natural, but at the same time, retouched?
MANUEL: For me, that brings up the whole question
of What is beauty? The way Ive always looked at it is
that its the opportunity to realize your true self-image,
the way you see yourself. Once you realize how you see
yourself, your condence level is boosted because you
are living how you envision yourself, whatever that
means to you.

Do you see the language of beauty changing?

IMAN: It has to. It is moved forward by the technology that is available, so it has to change. Especially
for younger customers, it is important that you speak
their language.
MANUEL: Its not just younger customers. Our core
is based around our Filter Finish collection and even
my mom knows what a lter is. So when you say lter
nish, it is really descriptive in todays language. Look
back at [Vogues] last September issuethe Instagirls.
People knew what that meant.

What is your assessment of the industry right now?

Where do you see the most opportunities and challenges?
IMAN: The biggest challenge, regardless of the business you are in, is our economy. Its been getting good
and then stopping, and people are not quite certain
what they should invest in. Usually what happens is
that as the economy improves, young brands have the
opportunity to rise to the occasion.

PORTRAITS BY BEN HOFFMANN; PRODUCTS BY GEORGE CHINSEE/ STYLED BY BARBARA SULLIVAN

IMAN: Hes not just a makeup artist. The only person, in terms of a makeup artist, who comes close in
terms of what he knows is Francois Nars. Francois
takes pictures. [Jay] can take the picture. He can retouch the picture, he can art direct the picture. When
he came to me, I wanted somebody who knows their
brand, because I wasnt going to run the brand. I wanted somebody who has a good work ethic and understands what is required, because this is a business and
a tough one.

What are other challenges?

Distribution. The department stores are in

ux and people are more comfortable going to Ulta
than going to a department store nowadays. The [distribution] challenge is how to nd the right place and
be at the right price point but at the same time not lose
your shirt over it. A lot of the time brands cannot get
to department stores because its a money eater. You
end up losing your company by just being in there. The
department stores are rethinking how to do certain
things better so that theyll have customers coming in
to the stores.
IMAN:

Whereas Ulta is the fastest-growing retailer in the U.S.

IMAN: And there is a very good reason for that. The
brands they have are really diverse and at the same
time, the sales associates are very good at what they
do. Thats what department stores used to be known
for. That is not there anymore. Department stores
feel like, The customer will come to me. The customer doesnt have to come to you anymore. Look at
Amazon. Im a big Amazon fan. My brand is not on
Amazon because Im in the mass market, but Id love
to have something special later on for Jay on Amazon
because it is worldwide, you can get it anywhere and
now it is special delivery.

Is mass as
IMAN: Outdated? Yes, it is outdated. There are places like Walgreens that are trying to do their own stores
that are more geared towards the customer base but
that is at its start. If I walk in any mass-market door,
I still see [multicultural lines] segregated. You still see
the brands only for black customers at the back. They
still have those issues.

Is it getting any better?

IMAN: In the stores themselves it is not. But whats
really changed is their dot-com sites. It has become a
point of purchase for a lot of customers. When I started 10 years ago in the mass market, they didnt believe
their customers were buying on dot-coms. They were
so surprised.
MANUEL: Especially in beauty and the world we live
in today, it is about being inclusive. This idea of still
separating the brands out on the oor, its a little antiquated. Its very dated.

Iman, how do you see your company growing? What

is the strategic vision for Impala? Are you creating a
beauty empire?
IMAN: There was a beauty empire already! There
was actually no plan that I wanted to take over a new
brand, it just happened that this is a close friend of
mine. This is someone who I really, truly believe in.
If the products looked like every other upscale product out there, there is no reason for me to do it, because I wouldnt know how to market it, how to put
it out there. For me, its always about the product, the
product, the product. The product is god because the

product will outlast all of us.

In terms of the company, Jay Manuel Beauty will
be on the department-store level and Iman Cosmetics will be in the mass market. Its perfect. We have
tested it on HSN and it completely sold out in record
time. For September, were talking about orders of over
30,000 units.
MANUEL: We went 200 percent over projection.
IMAN: Thats what keeps me awake! [Laughs] Its
like, all of a sudden, can we have that grouping in
30,000!
Where do you see the most opportunity in the business?
IMAN: I think for Jay Manuel it is to get into a brickand-mortar. It is not what I expected, but it is a good
problem to have. I expected that this year would be the
growth year and Im already in the growth year and its
been only one time out.

Youre personally good friends and professional partners. What happens when conict arises?
MANUEL: Imans biggest conict was when I was
stolen from her years ago by Tyra [Banks] and TV.
That was our biggest conict.
IMAN: Id say to him, Go and explore young man,
but dont disappear. There is less conict because he
came fully branded. He is his own currency. And I have
a very good work ethic, but his is even better, so that
makes life much easier.
MANUEL: That is actually the biggest compliment
because Iman knows if I have deadlines that Ill sit up
until 2 or 3 in the morning.
IMAN: At HSN, he spent three hours setting the
lighting.
MANUEL: We did a custom set. We were there the
day before, and I said, Lets light it. They said a lot of
people dont want to take the time to do that, so theyll
just throw up generic lighting and then theyll complain about it. I said, But were selling beauty! I will
take the time and go the extra distance.
IMAN: Neither of us believes in winging it. There is
no winging it.

HIS
Jay Manuel entered the
beauty arena earlier this year
with his namesake color
cosmetics line that brings the
look of airbrushed makeup
to the masses. After his first
segment on HSN in March,
sales reached 200 percent
over projection, driven by
innovative formats like the
Powder to Cream Foundation
and a mascara wand that
morphs from thin to thick with
a twist of the handle.

What are some of the toughest business lessons youve

learned and biggest mistakes youve made?
IMAN: The biggest mistake Ive made is when I go
off course and try to do something that is trend-driven.
You should never go off course. But if you do, it should
never be for a trend. Because the big boys, who have
the money, can do the trends. A trend needs major advertising. That is the biggest mistake Ive made. Twice
Ive done it and twice Ive regretted it and Im never
repeating it again.
The lessons Ive learnednumerous, numerous,
numerous. Overproject. Be prepared. Thats why I can
turn around and do this big quantity for September.
MANUEL: Forecasting is key.
IMAN: Thats a big deal. In all honesty, we dont wing
it. We prepare. Q
WWD BEAUTY INC

29

AS THE RACE FOR INNOVATION ACCELERATES, BRAND INCUBATORS HAVE

BECOME BEAUTYS NEW BREEDING GROUND. BY RACHEL BROWN

PHOTO BY MICHEL TCHEREVKOFF

t a time when innovation, relevance

and agility are driving the industry,
brand incubators are beautys newest growth engines.
Such companies, started by both beauty veterans
and newcomers alike, are introducing brands at a
blistering pace. Most have been conceived in the last
three years or so and brought to market on an accelerated schedule not feasible for larger, more established companies.
As with so much else, their very creation is enabled
by the digital revolution. Five years ago this would
not have been viable or successful, says Laura Nelson, cofounder of direct-to-consumer brand incubator Seed Beauty. The consumer was at a different
point then. I dont know that she was willing to buy
beauty online. Her purchasing behavior, what she is
buying and where, and the inuencers she is followingthis has converged to change her willingness to
go on a Web site and try a new brand.
While e-commerce sales represent less than 6 percent of all beauty sales, according to A.T. Kearney, the
much-coveted Millennial shopper is buying online
and she is the primary target consumer for many
brands being launched by incubators. Online beauty
purchasing is really targeting 18-to-34-year-olds,
especially with trend-driven products like color cosmetics and nail, says Stephanie Romanowski, senior
beauty analyst at Mintel. Older woman are following
the more traditional model of going to the store.
ColourPop, Seed Beautys rst market entry, was
created with Millennials in mind. The equivalent of
fast-fashion in the beauty sector, it has rolled out several hundred stockkeeping unitsblushes, shadows,
highlighters, lipsticks, etc., priced mostly from $5 for
a single item to $40 for a kitwithin a year. We saw
a gap in the market where the opportunity is to have
amazing formulas with great pigmentation in a wide
range of colors that are affordable. People dont have
to overly commit to a trendy color that is going to cycle out over time, says John Nelson, Laura Nelsons
brother and cofounder of Seed Beauty.
If ColourPop courts online consumers with
plenty, Wander Beauty does so with presentation.
Its Web site shows its initial productthe On-theGlow Blush and Illuminatoron six models of varying ethnic backgrounds. Shoppers can hover over
areas of the models faces (for instance, eyes or lips)
to see exactly what the makeup looks like on those
areas. Simultaneously, Wander Beauty can gather

data about its customers based on the models they

click on. Our customer, who is the over-30 woman,
is not going online to do a try-on app to see what
a product looks like on her, says Divya Gugnani,
founding partner of Concept to Co, which launched
Wander Beauty on QVC in April and will release
a mens skin-care line called Brinx later this year.
How does she know what is going to work for her?
Were solving that problem.
Leveraging social media is clearly a key strategic
aspect for such brands, not just for commerce purposes but to crowd-source product ideas as well.
BIG Beauty, which was founded by Philosophy creator Cristina Carlino two years ago and will ofcially
launch products this summer, avoids consumer research. Instead, it vets products on social media after theyre fully formed. We never want to turn off
the creative faucet, says Rebecca Fleming, the vice
president of product innovation at BIG, an acronym
for Beauty Incubator Group. [Cristina] has a desire
to try a lot of small concepts and see which ones t.
Wander Beauty regularly consults its Instagram
audience on makeup shades to guide the colors it ultimately produces; at Seed Beauty, every post, e-mail
and comment is read to glean ideas. For example,
an Instagrammer mentioned she wanted a hot-pink
shadow from ColourPop and, about a week later, the
brand put the shade into its rotation. It is about actualizing feedback, not just hearing it. It isnt within
the next quarter or product launchit can be in the
next day, says Laura Nelson.
Adds Gugnani, With digital businesses, you own
the relationship with the customer. When they like
something, you know it because they tell you. When
you have a product in development, you can have a
bunch of customers tell you they like product x, y or
z. There is a product-development loop.
Speed is another critical element. Deciem, an incubator founded by Brandon Truaxe, developed its
hair-removal brand Inhibitif in a little more than
three months. Its skin-care brand, Hylamide, took
eight months to come to fruition.
Seed Beauty looks to take brands from concept
to launch in three months. ColourPop is its only
brand on the market now, but its Web site lists three
brandsColourStyle, Jupe and Fluid Beautythat
are in the works. It is about rapid turnaround and
bringing high-quality products to the consumer in
real time, says Laura Nelson. The rate of consumption of content is continuing to accelerate in this segment, and the overall cycle of trends is shortening
and intensifying.

ther beauty incubators have longer development periods. However, most share the tactic of bombarding the market with multiple brands,
often simultaneously. A loaded brand portfolio can
diversify risk. BIG Beauty has set up seven brands,
but Fleming indicates that two of those brandsAr-

chetypes, a fragrance line, and Buttery, a topical

pheromonewill get the most support, especially in
the rms early days.
Since its founding three years ago by Truaxe, an Indeed Labs alum, Deciem has unleashed eight brands
and has at least two more in progress. Truaxe is very
aware not every brand will be a hit, but says those
that are will fund those that arent. We are in a position were we have to do risk-oriented things [big
beauty companies] would never do. We are a rabbit
surrounded by a number of elephants. We know we
can run much faster, he says.
A multibrand strategy helps incubators secure a
beachhead in retail distribution. Luxury Brand Partners has four brands distributed to salonsR+Co, V76
by Vaughn, Smith & Cult and Oribewith ve more
salon-oriented brands scheduled for launch in the next
six to 18 months, not including new lines it will create
for Sephora under a new specialty-retail division. Our
model is built off of 3,000 [A-list U.S. salons] and, in
order to go deep in those 3,000, you cant have only
one brand, says president and chief executive ofcer
Tevya Finger, adding, The days of the Aveda salon are
done. People like different brands.
Romanowski underscores that consumers today
arent a one-brand-ts-all bunch, and notes big behemoths are losing market share to specialized competitors. You go to Pantene, and there are 15 variations for every hair type. Women are like, Which one
is for me? It loses its appeal, she says. We are seeing
brands with a more-targeted focus do better.
Fleming agrees. We are not creating a 20-sku line
and bringing it into a brick-and-mortar retailer, she
says. We are cherry-picking ideas and looking for big
winners in those spaces. Even Seed Beauty kicked off
ColourPop with one shadow product, although it was
available in 20 shades.

uch a strategy seems to be paying off. Deciem

generated roughly $16 million in wholesale
revenue in the 18 months since its rst product hit
shelves and is projected to generate $180 million
by 2017. Luxury Brand Partners is forecast to register $55 million in wholesale volume this year and
reach $100 million by 2018. Citing GlamGlow as an
example, Romanowski says, [The beauty sector] is
so saturated, yet these brands can come and make
a big splash. A lot of companies fail, of course, but
because women are seeking information and looking
for something different, they can be successful.
Those kinds of gures are attracting the attention
of strategic buyers, particularly LOral and the Este
Lauder Cos. And while most incubators insist they
have no intention of sellingOur mission in life is
just to build and create disruption in the beauty market, says onerecent market dynamics would suggest otherwise. After all, as every parent knows, there
comes a day when children have to leave home if they
are to mature and grow. Q
WWD BEAUTY INC

31

A NEW
GAME

AS PROCTER & GAMBLE SHUFFLES ITS BEAUTY

HOLDINGS, INDUSTRY INSIDERS ANALYZE
THE DYNAMICS THAT LED TO ITS DIVESTITURE
STRATEGYAND WHAT THE FUTURE HOLDS
FOR THE PERSONAL-CARE POWERHOUSE.

TKTKTKT

BY JENNY B. FINE
PHOTOGRAPHED BY JAMES WOJCIK

32 WWD BEAUTY INC

TKTKTKT

hen A.G. (Alan) Laey was

named chief executive ofcer of Procter & Gamble Co.
in 2000the rst time aroundhe set about to affect a
total transformation of the company.
Some of his changes were more cosmetic than others. He
redecorated the 11th oor executive ofces, dismantling the
burnished-wood mens club vibe in favor of an airier, openplan design scheme. He actively sourced innovation from
outside the historically inward-facing company, making
external collaborations a hallmark of his tenure. And, perhaps most signicantly, Laey spent an estimated $69 billion on acquisitions in the beauty and grooming sectors to
transform P&G into a personal-care powerhouse.
Fast-forward 15 years and Laeynow serving his second tour of duty as chairman, president and ceo of the
consumer-goods giantis in the process of dismantling
the very empire he erected, as P&G pursues the divestiture of some of its key beauty brands, possibly including
Cover Girl, Max Factor, Wella, Clairol and a slew of prestige
WWD BEAUTY INC

33

licenses such as Dolce & Gabbana, Gucci and Hugo Boss.

At a time when many of its global competitors, including Unilever
and Henkel, are going deeper into the category, P&G is retreating,
seemingly unable to transform itself from a need-based marketing organization into a want-based one.
In its heyday, from 2005 to 2007, P&Gs beauty and grooming revenue was estimated to reach $23 billiona gure that had it knocking
on the door of the number-one position in the global beauty industry.
It was led by six brands that did more than $1 billion in salesOlay,
Pantene, Head & Shoulders, Wella, Mach 3
and Gilletteand seven brands in the ondeck circle, those between $500 million
and $1 billion in sales. They were Hugo Boss,
SK-II, Cover Girl, Herbal Essences, Rejoice
(a value-priced shampoo sold in China) and
Gillettes Fusion and Venus franchises.
Compare that to 2014, when WWD Beauty Incs Top 100 ranking estimated P&Gs
beauty sales to be $19.8 billion, a 3.4 percent
decrease that reected the ongoing struggles of Olay, Pantene, Cover Girl and others.
The 1985 acquisition of RichardsonVickswhich included Pantene, Oil of
Olay and Vidal Sassoonjump-started
the companys beauty business. Next came
Noxell and Cover Girl in 1989, followed by
a deal with Revlon for Max Factor and Betrix, which incuded SK-II and Hugo Boss
fragrances, two years later in 1991. All was
quiet on the acquisition front for about a
ANDREW SHORE,
decade. In 2001, Laey made his rst big
MOELIS & CO.
move, acquiring hair-color giant Clairol for
a reported $4.9 billion, a deal that signaled
a systematic acquisition drive. In 2003,
there was Wella, for a reported $7 billion,
which made P&G a major player in the
prestige fragrance category as well as professional hair care and color; in 2005 came the $57 billion acquisition of Gillette, and then, for
the next two years, a series of smaller brands including Frdric Fekkai
(sold in May to Fekkai Brands for an estimated $50 million), DDF, Zirh
and Nioxin, culminating with the Art of Shaving in 2009. Along the
way, there was the launch and demise of the online beauty play Reect.
com, plus the addition of multiple high-end fragrance licenses.
So what went wrong? In a series of wide-ranging interviews with industry analysts, bankers, retailers and former P&G executives, a picture
emerges of a conuence of causes, all exacerbated by the Great Recession of 2008.
First and foremost, the landscape changed, as the rise of beauty specialty retailers, e-commerce and niche brands siphoned off mass shopping dollars. Since 2009, $14 billion in sales has been created from
brands under $100 million, says Andrew Shore, managing director of
the investment bank Moelis & Co. That is 2.4 percentage points of market share that has shifted from big companies to smaller companies.
Then there was the retirement of key executives, including Laey
himself and Susan Arnold, who was vice chairman of beauty and health
before being named the president of global business units in 2007, both
of whom were the primary architects of P&Gs beauty strategy. Their

34 WWD BEAUTY INC

departures were followed by years of talent turnover and the loss of

many key players.
Finally, there is a sense that beauty was never a great cultural
t for P&G. While the company was able to effectively harness its
internal and external R&D for a continual stream of innovation, it
was less successful at creating the emotional connection between its
brands and consumers that marketers say is crucial to success in the
beauty category.
William Susman, managing director of Threadstone, says, They
spent money and tried to use their leverage
with retailers, but [this business] isnt about
chemistry. Tide can make your laundry whiter and brighter, he points out, but beauty is
a romance product.
P&Gs sheer size also mitigated against
success in a time when agility is a strategic
advantage. Basically they were too big,
says Susan Babinsky, the head of management consulting at Kline Group, which
recently published a report titled P&Gs
Beauty Divestitures are a Treasure Trove of
Opportunity.
There were too many brands, too many
stockkeeping units, and they lost focus in
terms of what they were about, she continues. There were so many moving parts, plus
trying to grow the business globallyit became unwieldy. At that point, youre putting
out res and you have lost your ability to strategically grow the business.
Some sources were not willing to be quoted
on the record. After all, P&G still wields considerable clout: If the Cincinnati-based company holds onto the skin-care brands Olay
and SK-II and the hair-care brands Pantene
and Head & Shoulders, as it has indicated it
will, the rm would still have estimated annual beauty sales of at least
$8 billion, which would keep it among the top ve beauty companies in
the WWD Beauty Inc Top 100.
Laey and other P&G executives declined to comment for this story.
P&G was culturally unprepared to succeed in cosmetics, says one
insider. Their big play was to make the beauty business look like their
other successful businesses, but the drivers of beauty are different.
They never understood the emotional benets, the purely female benets, of beauty.
They were used to winning with product innovation and huge volume categories, this person continues. They werent used to image
management and winning in a desire-based business. They never got
the emotional benet of making a woman feel beautiful.
One oft-heard opinion is that P&G regularly used innovation, rather
than emotion, as a marketing message. One example is Cover Girls
LashExact mascara, which featured a rst-to-market technology with
a molded silicone brush. Historically, mascara is a category dominated
by LOral, which controls many design patents for bristle-brush wand
technology. In 2006, Cover Girl spent an estimated $1 million on silicone brush molds to gain market share in the category in a major way.
The plan workedkind of. Cover Girls mascara business skyrocketed.

SINCE 2009,
2.4 PERCENTAGE
POINTS OF
MARKET SHARE
HAVE SHIFTED
FROM BIG
COMPANIES
TO SMALLER
COMPANIES.

THE
ACQUISITION
TIMELINE

1985

PROCTER & GAMBLE BUILT ITS BEAUTY

BUSINESS THROUGH A SERIES OF
STRATEGIC ACQUISITIONS, STARTING
IN 1985 WITH RICHARDSON-VICKS AND
CONTINUING THROUGH 2009.

Oil of Olay

Acquired
Richardson-Vicks,
including Pantene,
Oil of Olay, Vidal
Sassoon and
Clearasil, for a
reported $1.2 billion.

1990

1989

Model Carol Alt

was an early
Cover Girl.

Acquired Old
Spice from
Shulton Co. for
$300 million.

Acquired Noxell,
Cover Girl and
Navy fragrance,
for a stock swap
transaction
valued at $1.3
billion.
P&G modernized Old
Spices marketing and
product categories.

1991
Acquired Max
Factor and Betrix
from Revlon for
a reported $1.14
billion. Hugo
Boss, Laura
Biagiotti and
SK-II were part
of the package.
Max Factor became the second pillar
of P&Gs color cosmetics business.

A recent Lacoste
launch.

1999

2001

Acquired
Giorgio
Beverly Hills
for $150
million.

Launched Reect.com,
an online pure-play
beauty concept that
was discontinued in
2005.

Acquired
Clairol
for $4.9
billion.

Reflect.com was
an early experiment in
customization
and e-commerce.

2003

Wella provided entree to

the professional market.

Acquired Wella, which

included fragrances
like Gucci, Dunhill,
Rochas, Escada and
Anna Sui, and the
professional hair-care
brand Sebastian, for a
reported $7 billion.

2007

DDF represented
a foray into the
dermatological
arena.

Acquired
Gillette for
$57 billion.

CLAIROL PHOTO BY GEORGE CHINSEE

Acquired the Dolce

& Gabbana license
for at least $120
million up front
and a 10 percent
royalty agreement,
according to
market sources.
After acquiring the Dolce & Gabbana
license, P&G added makeup and
skin care to the brand.

2008

Hair entrepreneur
Frdric Fekkai.

2008

Acquired Frdric
Fekkai for an
undisclosed amount
estimated to be $440
million by sources. In
2015, P&G sold the
brand to a joint venture
between Designer
Parfums and Luxe
Brands for an amount
sources said was
$50 million.

Acquired Nioxin in a
deal valued at just
under $300 million,
according to industry
sources.

Nioxins hair-growth technology still holds

great potential according to analysts.

2009

2009
Acquired the Art
of Shaving for an
undisclosed amount
estimated to be in the
$60 million range.

Acquired Zirh, a mens

grooming line, for
an estimated $40
million. The brand
was discontinued in
2011.

Zirh never seemed

to gain traction.

2005

2005

P&G became a
force in grooming
with Gillette.

Acquired DDF for

$50 million to $90
million, according to
market sources. In
2014, P&G sold the
brand to Designer
Parfums for an
undisclosed amount.

Clairols business
comprised hair
color and care.

The signature scent

of the Eighties.

2001
Acquired Joy
Perfume by
Jean Patou and
the Lacoste
fragrance
licenses for an
undisclosed
amount.

1994

Inside an Art of Shaving boutique.

THEN
Eventually, though, competing brands acquired the technologyand
in the meantime, Cover Girls marketers had taken their eyes off the
bigger business.
They took the lead in mascara away from Maybelline, says one analyst, but they spent so much time doing it that they lost their dominance in the face business, which was their traditional power base and
has the highest loyalty factor in cosmetics.
As the competitive landscape changed dramatically from when P&G
rst entered the market, particularly with the rise of specialty beauty
chains and e-commerce, this poor feel for beauty became more acute.
If youre a 26-year-old today, says one person, youre not going to
Cover Girl or Revlonyoure going to Sephora.
Industry insiders say P&Gs marketers also struggled with the most
effective way to reach young consumers. The rise of cable TV and the
Internet robbed P&Gs traditional mediumnetwork televisionof
some of its inuence, making it more difcult for the company to effectively disseminate its marketing messages. It became harder for
the message to reach the right consumer, says one person. Like many
large companies, P&G doesnt understand digital.
In terms of Olay and Pantene, the problems were different. In the
early Aughts, the brands were symbolic of P&Gs success in beauty: In
a 2007 WWD Beauty Biz story, Susan Arnold estimated Olay was a
$200 million brand when P&G acquired it from Richardson-Vicks in
1985 and had grown to almost $2 billion by 2007, while Pantene was
between $20 million and $40 million at acquisition and had grown
to almost $3 billion.
One major retailer says both brands became too big, with so many
subbrands and variations that the marketing messages got muddled
and consumers found them confusing to shop. Olay, for example,
has six different facial skin-care lines, ranging from Classics, where a
moisturizer costs about $9.99, to ProX, where a top-of-the-line antiager is $29.99.
Olay was a great midpriced antiaging brand, says William Schmitz,
an analyst at Deutsche Bank. As it grew globally, they tried to make it
all things to all people. Ultimately, they were allocated too much shelf
space, so it became unproductive for the retailer who then took the
space away, and it becomes a vicious cycle.

n the prestige
fragrance category, a picture equally as bleak emerges. One industry
analyst says that P&G was overreliant on promotional activity to drive
its big fragrance licenses like Dolce & Gabbana, Gucci and Hugo Boss.
While P&G Prestige effectively launched new fragrance master brands,
like Gucci Guilty or Dolce & Gabbana Dolce, leveraging them with sustained investment was another matter. They launch really well but they
dont reinforce the brand in a way that builds it for the long term, says
one prestige market analyst. Look at Chanel and Diorits not that
the product is incredibly innovative, but they pump a lot of advertising money behind it to keep it cool and fresh. You have to be willing to
36 WWD BEAUTY INC

Susan Arnold
Vice Chair, Beauty, 2004-2006
Vice Chair, Beauty and Health,
2006-2007

Ed Shirley
Vice Chair, Global Beauty
and Grooming, 2008-2011
A.G. Lafley
President and Chief Executive
Officer, 2000-2009
Bob McDonald
Vice Chairman, Global Operations,
2004-2007
Chief Operating Officer,
2007-2009
Chairman of the Board,
President, Chief Executive Officer,
2009-2013

THE LEADERSHIP
SHUFFLE

Dimitri Panayotopoulos
Vice Chairman, Global
Business Units, 2011-2013

AFTER A.G. LAFLEYS INITIAL

DEPARTURE IN 2009, P&GS BEAUTY
DIVISION HAD A SERIES OF LEADERS.

AND NOW
R. Alexandra Keith
President, Global Skin
and Personal Care

David S. Taylor
Group President, Global Beauty,
Grooming and Healthcare

A.G. Lafley
Chairman of the Board,
President and Chief
Executive Officer
Colleen E. Jay
President, Global Retail
Hair Care and Color

Patrice Louvet
Group President,
Global Beauty

do whatever investments are needed to make

sure your brand is going to be top of mind.
Virginia Drosos
Then there was the leadership exodus.
Group President, Global
Beauty, Skin, Cosmetics and
While
Laey and Arnold recognized the valPersonal Care, 2011-2012
ue of longevity in the beauty category, things
changed with the advent of Laeys successor, Robert McDonald. Leaders who couldnt
turn around the business were generally gone
in 18 months, while at the lower levels, the
company reverted
to its customary
practice of moving brand managers throughout
Deborah A. Henretta
various parts of
Group President, Global
Beauty Care, 2012-2015
the businesssay
from laundry to
diapers to hair
careevery 24 to 36 months.
Successful companies today are a blend
of people who have tried-and-true experience plus new talent that understands new
technologies and is much more entrepreneurial in spirit, says one former insider.
P&G acquired businesses and most of the
employees and fresh talent they thought
they were bringing invery few stayed,
this person continues. Beauty is a category
where tacit knowledge is important. When
I look at P&G, people change jobs so ofSUSAN BABINSKY,
tenthey can apply some of their smarts,
KLINE GROUP
but not all.
Its not that they have dumb people,
says another alum. But they have basketball players playing hockeythey are out of
their depth and LOral has skated rings around them.
In January, P&G disclosed the latest round of signicant management changes for the beauty business, a move that many sources believe
signals a new day for Procter & Gamble. Company veteran David Taylor
was named group president of Global Beauty, Grooming & Healthcare
and is seen as the clear frontrunner in the race to succeed Laey as
ceo, and Patrice Louvet became group president of global beauty. Alex
Keith, a veteran of Olay who has worked on myriad categories at P&G,
was promoted from vice president of North American Fabric Care to
president of Global Skin Care and Personal Care. Many analysts see
these as positive appointments.
The beauty division that they will oversee will most likely look very
different in time. In August 2014, Laey revealed a dramatic plan to sell
off or shutter at least half of the consumer-product giants 160 brands.
In terms of beauty, most analysts agree that the brands being sold include Wella, Clairol, Cover Girl, Max Factor and the bulk of the prestige
business, except for SK-II.
In March, P&G sold the Rochas fragrance and fashion business to
Inter Parfums for a reported $108 million, and in early May, it sold
the Frdric Fekkai business, acquired for an estimated $440 million,
to Fekkai brands, a joint venture between Designer Parfums and Luxe
Brands, for an estimated $50 million. P&G tried unsuccessfully to

McDONALD PHOTO BY ROSS VAN PELT; ARNOLD BY MELANIE DUNEA; SHIRLEY BY GEORGE CHINSEE; DROSOS BY JOHN AQUINO; HENRETTA BY BRIGITTE LACOMBE

create a dual-channel distribution structure for the brand straddling

prestige and mass.
Executives who have been briefed say the company is looking for an
entity to buy as much of its beauty business as possiblea difcult goal
to accomplish given the size of the businesses.
Coty and Revlon are often mentioned as potential suitors for the
Cover Girl and Max Factor businesses. Coty in particular, says one
source, has an appetite for big deals.
Another plausible scenario is a large-cap private equity rm, such
as KKR, the Carlyle Group or Blackstone,
entering the fray. There are multibilliondollar funds that want to get involved in
beauty but cant because most of the time
the brands are too small, says one investment banker. This is a unique opportunity
with a lot of size.
And, adds a source, there are a lot of free
agents in terms of executive talent to run
such an acquisition, noting that in the past
three years, many seasoned ceos have retired or left their spots, including Alan Ennis, formerly of Revlon, and Michele Scannavini, who shepherded Coty through its
initial public offering.
In terms of the hair-care businesses,
Wella and Clairol, Henkel AG and Kao
Corp. are often cited as likely buyers. The
future of P&Gs fragrance brands is murkier, say analysts. In addition to the category
being challenged, many big players would
have a conict of interest between P&Gs
brands and ones they already market.
Another scenario thats been oated is
that P&G spins off its beauty holdings into
a separate entity, although most observers dont believe this is likely. Spinning it off requires a full leadership
team which they dont have and cant attract, says Susman.
Even with the divestitures, P&G is expected to retain a sizable portion of its beauty businessone that it still needs to turn around. While
one major retailer is less than optimistic that this will happen quickly,
others are more bullish.
They need to take prices down, which will impact protability and
margins, and they also need to rationalize the sku count, which will impact sales, says Schmitz. So they have some tough decisions to make.
But part of it is the macroenvironment. Everybody is struggling.
Mark S. Astrachan, an analyst at Stifel, takes a guardedly optimistic
position on the future of P&Gs beauty business in a March report
titled P&G: Potential Beauty IPO? The global beauty category has
a favorable long-term growth outlook, with an approximate 4 percent sales CAGR since the early 1990s, he wrote. Exiting two-thirds
of its beauty business reduces the companys exposure to a dynamic
category, potentially hurting longer-term sales growth, assuming improving share trends.
That said, he concludes, improving [the] performance of Olay
and Pantene and maintaining current positive momentum for Head
& Shoulders would positively impact company sales growth, all else
being equal. Q

THERE WERE
SO MANY
MOVING PARTS,
PLUS TRYING
TO GROW THE
BUSINESS
GLOBALLY
IT BECAME
UNWIELDY.

WWD BEAUTY INC

37

LAST CALL
RESTAURANTS
AND CAFS
1

Community Table
Washington, Conn.
A table in the bar is so
cozy and the food is
always delicious.
A difficult reservation.
SONIA KASHUK

Chaiwalla
Salisbury, Conn.
Fabulous teas and
scrumptious cakes.
GREG RUGGERI

The Olde Inn on the Green

New Marlborough, Mass.
The dining rooms are only lit
by candlelight. So romantic.
JANE LARKWORTHY

The Pantry
Washington, Conn.
Our Saturday lunch spot and
the best takeout in the area.
SONIA KASHUK

The Southfield Store

Southfield, Mass.
The best breakfast in the
worldand they allow dogs.
JANE IREDALE

Prairie Whale
Great Barrington, Mass.
Owner Mark Firth was an
owner of Marlow & Sons in
Williamsburg. Moved his family
up to the Berks and now they
live on a farm and own the
hottest restaurant in town.
JANE LARKWORTHY

8
5

SHOPPING
6

Privet House
New Preston, Conn.
I never walk out empty
handed. So chic and stylish.
SONIA KASHUK

3
4
5
2

Affordable, wearable clothes

and a staff that knows how to
style. JANE IREDALE

Berkshires Buzz

The Berkshires, the bucolic area in Western Massachusetts

and Connecticut known for its many cultural offerings, is fast
becoming beauty central. The Connecticut contingent includes
Sonia Kashuk and Daniel Kaner, LOrals Carol Hamilton and
Salon Ruggeris Greg Ruggeri and Craig Longhurst, while in
Massachusetts, youve got everyone from W magazines beauty
director, Jane Larkworthy, to mineral makeup magnate Jane
Iredale. Here, their favorite places to frolic come summer.

Michael Trapp
Cornwall Bridge, Conn.
A hidden gem for the
unexpected. A true cabinet of
curiosities. Do not miss!
SONIA KASHUK

One Mercantile
Great Barrington, Mass.
The chicest home-goods
store in town.
JANE LARKWORTHY

ILLUSTRATION BY ANNE SMITH

Louisa Ellis
Great Barrington, Mass.

Guidos
Great Barrington, Mass.
Purveyor of great produce.
GREG RUGGERI

1
8

Project Native
Housatonic, Mass.
This is a nursery that
only sells native plants.
JANE IREDALE

38 WWD BEAUTY INC

B
2015 CHANEL, Inc.,

AVAILABLE AT CHANEL .COM