Gucci designer Tom Ford and Estee Lauder

Estee Lauder, founded 59 years ago, always regarded as "mature" and "conservative" by young generation.

In April 2005, Estee Lauder sign a deal with Gucci Designer Tom Form to resuscitate it brand.

The launch of the Tom Ford Estee Lauder Collection attracted a crowd of over 1000 people to Saks Fifth Avenue in New York City.

Tom Ford is among the most highly respected and successful designers of the last decade. Ford is credited for reviving both Gucci and Yves Saint Laurent through influential collections and provocative ad campaigns. During 10 years as Creative Director, Gucci sales increased from US$230 million in 1994 to almost US$3 billion in 2004, making Gucci one of the largest, most profitable luxury brands in the world.

The 14 Sets Tom Ford collection are said drawing "not bad" revenue. Especially
gold colour Amber Nude: The Lip which cost USD35 and black colour eye-lash costing USD40.

Before the launch of Tom Ford collection. Estee Lauder was view as a old fashion brand, even unable to compete with it own secondary brand: MAC or Bobbi Brown.

NPD Group's NPD Beauty analyst said although Estee Lauder is the top 3 selling brand at Department store. The profit growth of other niche brand like N.V. Perricone M.D. and Philosophy really make Estee Lauder worried.

Those who show up at Saks Fifth Avenue included more mature loyal customer of Estee Lauder. They more attracted by a product transform from 1953 Youth Drew Amber Nude

Market researcher Young Group President Karen Young said "All cosmetic brand are targeting people group age 25 to 30. Which do not hesitate to spend. However, Estee Lauder traditionally is a brand that belong to middle income conservative brand, not a leading fashion brand.



Tag: Cosmetic : Beauty:Health & wellness

Beiersdorf and Nivea

If you mentioned to Malaysian Beiersdorf. They will ask Beiersdorf what? But if you mentioned Nivea. Most lady will heard of it before. Nivea is one of the product produce by Beiersdorf.

Beiersdorf rank no 7th largest beauty and cosmetic company in the world and no 1 in German.

1882: Pharmacist Carl Paul Beiersdorf establishes the Company on March 28.The date of the patent document for the manufacture of medical plasters is taken as the date of the Company’s formation.

Carl Paul Beiersdorf produces gutta-percha plasters in his laboratory on the basis of his patent, laying the foundations for modern plaster technology.

1890: Pharmacist Dr. Oscar Troplowitz takes over the Company.

1892: The first international cooperation agreement is concluded with US trading company Lehn & Fink for the USA.

1900: Patent application for Eucerit, an emulsifying agent. Eucerit is the basis for Eucerin and, later on, for NIVEA Creme.

1906: The first overseas branch is established in London.

1909: Labello is launched on the market. It is the first lip care product in sliding tube packaging. The term Labello is derived from the Latin for "beautiful lip" (labeo = lip; bello = beautiful).

1911: NIVEA Creme – the first stable water-in-oil emulsifier – is introduced. The emulsifying agent Eucerit is made from lanolin, found in sheep's wool, and is the key to NIVEA Creme's unique properties.

It is said that the main ingrediant of Helena Rubinstein (HR) product also comprises sheep's wool in Australia.

1918: The deaths of Oscar Troplowitz and his partner Otto Hanns Mankiewicz result in the formation of a stock corporation (limited company)on June 1, 1922.

1922: Willy Jacobsohn takes over as Chairman of the Executive Board of the newly formed stock corporation. The first self-adhesive plaster is introduced under the name Hansaplast.

1925: NIVEA is relaunched in blue packaging. The new design and communication lead to the crucial breakthrough for the NIVEA brand. The distinctive blue and white tin starts its successful history.

1929: Beiersdorf shares are listed on the Hamburg stock exchange for the first time. Over 20 production sites worldwide are already in operation.

1933: Under the pressure of National Socialist propaganda, the Jewish members of the Executive Board step down. Willy Jacobsohn, the former Chairman of the Executive Board, heads the foreign affiliates from Amsterdam until 1938.

By adopting a policy of "honorable tactics", the Beiersdorf Executive Board, under the leadership of Carl Claussen, succeeds in steering the Company through the Nazi period despite a large number of malicious campaigns by competitors. Although Beiersdorf retains its own business culture, it must still cooperate with the regime

1936: tesa is introduced as the umbrella brand for self-adhesive technology. The first innovative product is its transparent adhesive film, later known worldwide under the name tesafilm.

1945: At the end of the Second World War, a majority of the Hamburg production plants and administrative buildings have been destroyed.


1945-1949: Most of the affiliates and the international trademarks in almost all countries, in particular in the USA, UK and the Commonwealth, and France, are lost. The company Beiersdorf has to start again virtually from scratch.

1950:ph5 Eucerin is launched on the market. This innovative ointment focuses on the importance of the skin’s own natural protective acid barrier in maintaining good skin health.

1951: The first deodorizing soap is introduced under the name of 8x4. The brand is extended into a product family during the 1950s and 1960s.

1955: Beiersdorf launches a protective hand cream on the market under the name of atrix.

1963: NIVEA milk – liquid NIVEA Creme in the form of a water-in-oil emulsion – is introduced "for all-over body care".

1973: The images in the "Only Me" NIVEA advertising campaign illustrate how NIVEA Creme optimally bundles all aspects of skincare into a single product. The campaign defines the look of NIVEA Creme advertising in the 1970s and 1980s.

1974: Beiersdorf diversifies its business and introduces a divisional structure. At this time, the divisions are cosmed, medical, pharma and tesa.

1982: Start of steady expansion of NIVEA as a brand for skin and body care through a large number of subbrands with an international focus. Introduction of NIVEA Gesicht (face) in Germany, Austria and Switzerland.

1989: Change of strategy: Start of the implementation of a strategic reorientation process focusing on the core competencies of skin care, wound care and adhesive technology.

1990: Acquisition of the JUVENA brand, developed by the Divapharma pharmaceutical laboratory, founded in 1945 in Zurich.

1991: Acquisition of the la prairie brand. The company originated in the famous La Prairie clinic in Montreux, Switzerland.

1992: Launch of NIVEA's BLUE HARMONY advertising campaign, which is still running successfully today. It adapts to the current spirit of the times with powerful emotionality.

1995: Acquisition of the FUTURO brand. The company was founded in Ohio, USA in 1917 by Georg Jung, a German, and produced bandages right from the start. The "Futuro" brand with its black and yellow packaging was born in 1936.

1999: The Company's strategy is streamlined further to focus on a small number of strong consumer brands. Professional wound care and self-adhesive technology are given the opportunity to introduce their own organizational structures

2001: The new strategy enables tesa to become an independent affiliate. tesa AG is formed as a wholly owned affiliate of Beiersdorf, enabling it to react more flexibly to consumers and industrial customers.

Professional wound care is spun off in line with the new strategy and contributed to a joint venture between Beiersdorf and Smith & Nephew. BSN medical, domiciled in Hamburg, is founded.

2002: Florena becomes a wholly owned Beiersdorf subsidiary. The cooperation dates back to 1989, and was intensified following the reunification of Germany.

2003: A new functional group organization focusing on the areas of brands, supply chain management, finance and human resources replaces the previous divisional organization

2004: The new skin research center opens in Hamburg, underscoring the innovative strength of the globally successful Beiersdorf group.

Link to this page:chocolate-health.com


Tag: Cosmetic : Beauty:Health & wellness

Beneficiary of bird flu outbreak

While world economy under the threat of bird flu crisis. Swiss pharmauceutical manufacturing company Roche, with it only drug that able to provide the best defense in the initial phases of any global influenza pandemic call Tamiflu gain limelight recently. The other drug manufacture by UK Glaxo Smith Kline call Relenza, said to be expensive and have storage difficulties, thus not popular among respective government.

Roche have 6 R&D centre worldwide and operate in over 100 country, is a multinational operate in biotechnology industry. A lot of pharmaucuetical company face the problem of copyright due for expires soon. Roche most prifitable drug, however, is just at the beginning of it lifecycle. Other than Tamiflu, Rocje also own the largest copyright on anti cancel drug in the world.

US company Gilead is the inventor of Tamiflu and it license Roche to produce the drug in exchange to Royalty.

Roche founded in 1898, has a reputation of inventing new drug via R&D. Initially, it manufature Sirolin syrup. In 1930, it produce world first Vitamin C.

Prior to 1999, Roche was the largest Vitamin manufacturer. However, they have been accused of violating Monapoly regulation and has been taken to court and fine 462million Euro in 1999.

At that point of time Vitamin division contribute more than 50% of it turnover. It is a consumer orientated product and facing price fluatuation problem. In 2002, Roche divest it Vitamin and few other division. Remaining only two division: Pharmaceutical and Diagnostics.

Roche spend more than 15% of it turnover on R&D after that. Now, most of the top ten performance drug in Roche are new drug. It also acquired a few medical equipment manufacturer and become world largest medical equipment producer.

Roche also apply growth via M&A. It has acquired Genentech in US and Chugai in Japan. Genetech is the first US biotechnology company that listed on Nasdaq while Chugai is the leading biotechnology company in Japan.

Roche also made strategic alliance, joint venture with other small parmaceutical company.


Technorati Tag: Biotechnology pharmaceutical Bird flu Tamiflu Health & wellness

Shiseido, the first to set up counter at Department Store in Asia

Shiseido is the largest beauty and cosmetic company in Japan and it rank No 5 in the world largest beauty and cosmetic company. After Loreal,Unilevel,P&G and Estee Lauder.

Shiseido, Loreal and Estee Lauder is consider the only three focus company in top 10 beauty and cosmetic company in the world. Others like Unilevel and P&G is diversified company in other industry as well, like food and detergent.

Loreal and Estee Lauder acquired a lot of brand over the years. However, to maintain each individual brand is an expensive process. Each brand must have achieve a critical mas and economic of scale to cover cost of spoke person, R&D, cost of international channel.

Unilevel and P&G has start streamlining their brand over the years and only maintain their first and second brand in each category.

Shiseido also face the problem of too much secondary brand.Which face difficulty in resources allocation. A lot of brand unable to recoup the resources invested.

Thus, Shiseido plan to streamline it brand from 140 to 35 (Like Za, Uno and Fitit) at the end of 2005. This will further reduce to 20.

Loreal, however view that if you have 5 or 6 brand in each channel , you may have problem of too many brand and overlap in investment. But if you only have 2 brand, it is insufficient. Loreal now have 4 brand (L'Oreal Professional, Redken, Matrix and Kerastase) under it haircare professional product.It is function much better than only have 2 brand (L'Oreal Professional and Kerastase)previously.

Taiwan Sofnon chairman,Champion Huang which own several international brand like New York Alway Black , German Nobori, low cost product for teenages JUSTa100 ,Japanese herb PLUS+ , and Italy in Ocean said that Shiseido is the first company that market their product via professional counter in Department Store. This is a one of the Japanese marketing and management method.

In Malaysia, Shiseido is distributed by Tung Pau, a wholly own subsidiary of Warisan TC Holdings Bhd previously.

Warisan TC Holdings Bhd, a company under Tan Chong Group, which distribute Japan Nissan car in Malaysia. Their connection build up with Japanese during they become distributor of Nissan vehicle enable them to secure a franchise of Shiseido in Malaysia.

With globalization and liberalization of trade. A lot of automobile company take back the distribution right like Honda.

Beauty and cosmetic company Shiseido also doing the same. Shiseido Malaysia Sdn Bhd, a 50-50 joint-venture company between the Shiseido group and Warisan TC Holdings Bhd set up to handle the distribution of Malaysia since April 2005. Thus, now the distribution of Shiseido in Malaysia is operate by Japanese despite Warisan TC Holdings Bhd still half 50% shares.

Tag: Cosmetic : Beauty:

Estee Lauder largest focus beauty & cosmetic company control by US

Estee Lauder (1907-2004) invented her first product Super Rich All-Purpose Cream at the age of 18. She market her products via conducting party among housewife at the initial stage but her product available for sales in Department store not long after that. She is the first person market her product by giving sample set in the beauty and cosmetic industry.

However, her product unable to affect the dominant position of Helena Rubinstein (HR) and Elizabeth Arden at that point of time, until she launch her first Fragrance, Youth Dew in 1953. Youth Dew fragrance lifted Estee Lauder to become one of the leading brand name in beauty and cosmetic industry in US.

Estee Lauder launch another star product Clinique in 1967. Clinique signify that it is a product that would not cause sensitive reaction from skin.

Like Loreal, Estee Lauder also growth via merger and acquisition. It has acquired a lot of brand over the year. Among them include Stila, Aramis, Prescriptives, Origins, M.A.C., Bobbi Brown, Tommy Hiltiger, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, kate spade beauty, Darphin, Michael Kors and Rodan + Fields.

Estee Lauder now is the largest focus (not divesified like P&G) beauty & cosmetic company control by American (Loreal control by French)


TechnoratiTag: Cosmetic : Beauty:

Bio-Young enter ladies healthcare market

When I doing my regular window shopping in one of the Jaya Jusco shopping centre. A promotion lady hand me a leaflet.

It is from Bio-Young, a company that selling HGH product via multilevel marketing or direct selling. It is a new product from Bio-Young.

The new healthcare product, Phytogen Plus, target on curing women's period cramps, irregular period and low fertility.

This segment of market in Malaysia is dominant by one company, Keep Good Feel Corporation Sdn Bhd (Formerly known as Fasa Bebas Sdn Bhd).

Its product Lady Gold (picture) once dominant Malaysia's ladies healthcare product and at one point of time call Lady Vigra.

However, such market attracted a lot of competitors and Keep Good Feel Corporation Sdn Bhd has litigation on copyright infrigment with one of it major competitor.

Now, the company has a new competitor in Malaysia.

Technorati Tag: Biotechnology healthcare lady vigra pharmaceutical herb >Health & wellness

How SK-II become market leader from nearly bankrupt

SK-II is a product under a US company call Max
Factor. Thus, before I start talking about SK-II. Lets talk about Max Factor.

Max Factor is a make-up artist, complete his study in Russia and work as make-up apprentice in an opera performing company. Due to his passion on ladies movies star. He started his own retail business.

In 1936, Max Factor has become a leading cosmetic company in US. He build his reputation with cooperation with Hollywood movies star.

Max Factor is a family business as all his 4 sons work for the company. But non of it daughter in law work for the company. Thus, The company is manage and dominance by male even this is a famine business.

Max Factor family later dispose off the company and the new owner listed the company in stock Exchange in 1961. However, the new owner dispose to another company in 1971. He claim than operating a public listed cosmetic company is not fun as much of his time emphasis on profit and growth rather than creative and beauty previously.

A scientist in Japan, in search for a cure for his friend sickness, accidentally found a yeast called saccharomycopsis has successfully cure his friend illness. They name it Pitera. The scientist then sell the recipe formula to Max Factor in Japan.

In 1980, Max Factor launch it first product base on the recipe formula. They call it success Key initially. Only second generation product, they call it SK-II which used until today.

Procter and Gamble (P&G) acquired Max Factor (including SK-II ) in 1991. However, as the company used to sell detergent and pampers or what we call mass market product. This is first time P&G enter into beauty & cosmetic industry. Max Factor making loss of USD30million for continuously 3 years accumulating total loss of USD100million.

A 30 years old brand manager of Olay product in Taiwan's P&G's Olay division, Michelle was send to Japan as SK-II brand manager January 1994. She does not know Japanese language at that point of time.

Michelle was the third batch of brand manager assigned to revive the brand. The company has try numerous method but fail. Thus, an out of the box or breakthrough strategy was needed.

SK-II, despite an unpopular product with merely 5% of the population heard of it at that point of time, have a batch of loyal customer including movies star and royal family. It market through word of mouth.

Michelle, look for a spoke person for SK-II among it loyal customer. They decide to used Momoi Kaori (right picture) eventually. She is 45 years old at that point of time. Michelle also replace the TV advertisement prepared by the advertising company with a black & white advertorial in magazine.

After the launch of the new promotion. Sales start picking up and the division stop bleeding. Thus now the target is to become top mega brand in Japan.

She convinced P&G in Japan to allocate 50billion yen budget for TV advertising expenses. They also provide a hotline on the TV advertisement for customer to call up to request for sample product. From the first day of the launch of TV commercial, they received 100 thousand call. They retrieved the hotline number after 5 days as they only prepare 500 thousand sample sets.

It take 7 days for the yeast to convert to Pitera like brewing alcohol. It become the factory unable to produce enough to meet demand. Whole country women age 35 to 50 in Japan are talking about SK-II.

Michelle get promoted immediately. P&G in Taiwan & Hong Kong also shooting similar TV advertisement using local spoke person. P&G hq in US also consider launching the product in North American.

Later, Michelle launch another TV commercial to target for customer age below 35. She used same spoke person Momoi Kaori describing she start using the product since at the age of 20.

Michelle however, request to transfer to other department after that. P&G transfer her to hair care product Pantene division. She has left P&G now.

Spoke person Momoi Kaori career in entertainment industry pick up again after such incident

P&G acquired Cover Gil in late 1990 and hair care product Wella in 2003.

Wikipedia

Technorati Tag: Cosmetic : Beauty: Biotechnology:Pantene

Liewcf reply

I have a post regarding Liewcf resignation on 19 September 2005. I ask whether he able to share his knowledge on beauty and cosmetic industry with me as he previously work in this industry.

After nearly one month only I get a response from him. He post a response on 23 October 2005 and his reply are as follow:

I stumble on your blog when I was searching for "liewcf". :)

Though I was working in a cosmetic company, I was only a webmaster there. I did not touch on the company products. I did company website and managed their computers.

As far as I know, the company spend a lot of money on advertisements.

It is surprise that he do not have the industry knowledge. Maybe a webmadter is different from accounts department. Accounts department have to dealing with stock, I have a hard time to understand there is cleanser, toner, moisturizer when I first join the company. Then there is lipstick and lip gloss!?

Accounts Department have to come up with company profile, feasibility study and budget. Thus, have more understand to product and industrial knowledge.


Technorati Tag: Cosmetic : Beauty

Etsu beauty contest

JA Biohealth Sdn Bhd, the sole distributor of Etsu product in Malaysia, invite all ladies age 21 and above to participate in a beauty contest.

Winner will become brand ambassador of Etsu and would get RM10,000 cash.

Interested candidate must submit their application form before 30 November 2005 together with 2 recent photo. Application form can be obtain at Watson, Guardian, Sasa and all retailer that market Etsu product. Inquiry at 03-78802210 or check their website.


Technorati Tag: Cosmetic : Beauty

From IT to beauty

Jason Bak who left school altogether at 15, started Eisentech Resources in 1997. distributing computer hardware and products. Bak became the sole employer and employee of Eisentech, delivering stocks and doing the company’s accounts all on his own.

Eisentech Resources today is known as a software solutions specialist and is the authorised distributor for Apple, Corel, Microsoft, Network Associates, Symantec, Veritas, Macromedia, Lotus, AutoDesk, Pro/ENGINEER, Altiris and Adobe. From 1999 to 2003, Bak’s company was recognised as the top achiever in sales for the principal brands.

Eisentech Resources, a RM30 million company distributing information technology hardware and software.

Bak was travelling in Japan when a friend introduced him to one Dr Joe Shigemoto, a leading cosmetic surgeon based in Japan. Shigemoto suggested Bak try a new collagen-based beauty product, saying that it was really good. “I didn’t know a thing about beauty products. In fact he gave me some collagen powder [to drink]. Since he was a friend of a friend, I thought I’d give it a chance. I went back to Malaysia and started doing research on it. What was collagen?” Bak eventually found out what collagen was but while doing his research he learnt a little more. The brand of collagen that Shigemoto offered him, Etsu, was a consumable collagen powder that is said to help rehydrate skin, fight visible signs of ageing and improve skin condition. Studying Bak’s youthful (and irritatingly glowing) complexion now, it would be easy to believe the claim.

And so, in December 2004, he established JA BioHealth, a company bestowed sole distributorship by Nakamurado Co Ltd — a trusted and renowned beauty and healthcare product manufacturer with 150 years of history in Japan. JA BioHealth will be responsible for the representation and marketing of the Etsu brand in Malaysia and across Asia Pacific. For now, the company will start off by selling two products at all personal care stores and pharmacies: the Etsu B300 Potion Mask and the Etsu B300 Potion Food.

Excerpt from The Edge


Technorati Tag: Cosmetic : Beauty