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Monday, October 24, 2005

How Loreal become world largest beauty & cosmetic company


In 1907, Loreal was founded by a French chemist Eugene Schueller in his apartment's kitchen when he created his first hair dyer. He do all the work himself. Doing sales in the morning, delivery in the afternoon and production at night. Only until 1909, he hire his first employee.

How Loreal growth become a world largest company in beauty & cosmetic industry. Actually is via Merger & Acquisition ( M&A ).

In 1934, Loreal acquired a hair shampoo company Monsavon.
In 1935, Loreal launch it first sun protection product Ambrie Solaire.

In 1957, Frabcois Dalle become the 2nd CEO of the company when the founder pass away.

In 1963, Loreal become a public listed company in French and joint venture with Kose to venture into Japan market.

In 1964, Loreal acquired Lancome, this is first time Loreal enter into fragrance and perfume market. It also acquired Garnier, a hair care product.

In 1970, Loreal acquired Biotherm.

In 1973, Loreal acquired a German base Gemey and a pharmaceutical company Synthelabo Pharmaceutical Laboratories.

In 1983, Charles Zviak take over as 3rd CEO. The group R&D team has growth to 1,000 people.

In 1988, current CEO Lindsay Owen-Jones take over as it 4th CEO.

In 1989, Loreal acquired HR , and later La Roche-Posay. Before that, HR has alrealdy acquired Giorgio Armani fragrance and perfume division.

In 1993, It acquired another hair care product inUS, Redken.

In 1996, It acquired Maybelline and venture in to China market aggressively.

In 1998, It acquired a hair care product special for Black and African, SoftSheen Products.

In 2000, It acquired Carson, US haircare product Matrix, niche product Kiehl's and acquired 35% stake in Japanese Designer's brand Shu Uemura.

In 2002, Loreal join-venture with Nestle to form a companuy Inneov.

In 2003, It increase it shares in Shu Uemura to 52% and acquired a brand in China.

As you can see above, Loreal is a company that growth via Merger & Acquisition ( M&A )

Loreal new product under it own brand included Shine Delicieux lipstick.





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Saturday, October 22, 2005

Nanotechology and beauty cosmetic industry




I have a lot of search on "Nanotechnology" on my blog. In Malaysia, a few company in beauty and cosmetic industry claim that there are using nanotechnology on their product. Which allowed their skin care product more easily absorb by the skin, but there is nobody to verified their claim.

However, I discover a company base in Taiwan that founded by beautician that train under chinese traditional medicine before. The company call Luolihfen Beauty Care Professional Inc base in Taiwan.

Miss Luo Lih Fen has over the years collaboration with with research institution in US,Russia, Austria, Hong Kong, French and China and provided 10million Taiwan currency for those institute to develop a lot of machine that pioneer in beauty and cosmetic industry. Including a machine that send out some wave that resulting our brain to release an anti-aging BFGH to our skin
and many other beauty and cosmetic machine.

Her effort later attracted a French train Medical Doctor to join her company as a CEO. His French connection later cause her company to first launch first Human Growth Hormone ( HGH ) product in Taiwan. HGH product is now very common in multilevel marketing company in Malaysia. Most famous brand is Bio-young in Malaysia.

He later launch a Genome product for the company and later a Nanotechnology product for the company from French.

The company claim they have a franchisee in Malaysia on it company website, but no address and contact number provided.



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Wednesday, October 19, 2005

Designer's brand Shu Uemura



In Malaysia, Shu Uemura has counter in Metrojaya department store. However, if you really want to experience the brand. You can go to a boutique inside Lot 10 shopping centre in Bukit Bintang. It located in the ground floor left hand side of the main entrence.

The said whenyou walk in to the boutique. you will be greeted with a cup of green tea and hand towel. As you stroll around, trained make-up artists will be there to advise you on your skin care and make-up needs.

Shu Uemura now is a Desiner Brand under Loreal Group and the only Japanese brand the group has acquired to date.

Shu Uemura founded by Mr Shu Uemura, born in a weathier family. He biggest deam is become an actor. However, due to some kind of illness. He is on the bed for 5 years after completing his high school.This make him unable to follow normal path of what other people did. Study in University and get a job. He thoght of his future while on the bed. Eventually, his decision surprise many others.

At that point of time, when Make-up still not common in Japan. He decided to become a Make-up artist. He feel this comply his interest in art.

In 1955, Shu Uemura venture to Hollywood. He become a professional Make-up artist for a few US-Japan joint venture movies.

After some years of experience. He back to Japan in 1970 and create a brand using his own name, He also found an Academy in beauty and cosmetic.

In 1967, he bring back his legendary make-up removal oil from Hollywood .Since then, shu uemura’s cleansing beauty oils have remained a success for more than 30 years – an achievement in itself in the fast-changing world of cosmetics. The Cleansing Oils « fan club » includes Lauren Bacall, Jeanne Moreau, Jane Birkin,.. Based on a High Performance Oil System, the cleansing oils are used to remove make-up, to purify, and to balance the skin complexion.

With nearly 1 million products sold each year, cleansing oils have experienced steady growth since the launch of the first Balancing Cleansing Oil. The line of products has been completed very recently and now includes a light and enriched version, which was launched in November 2002. shu uemura has also launched a Green Tea Beauty Oil in 2003. Today, more than one cleansing oil per minute is sold throughout the world.

1983 Shu Uemura open it first Beauty Boutique concept in Omotesando, Tokyo, that allowed customers to sit in front of a mirror and see, touch and experience make up for themselves. After 20 years, all department store inthe world are using this concept but Shu Uemura is pioneer at that point of time.

In 1980,it launch it unique eye shadows. 1968, Shu Uemura was the first to merge makeup and art via makeup performances on stage and his seasonal Mode Makeup collections, which, to this day, he continues to inspire and awe twice a year.

shu uemura cosmetics became the first company in the world to incorporate deep-sea water into cosmetic products. Shu Uemura Depsea Water range, based on sea water extracted from a depth of more than 300 metres.

Deep-sea water contains more than 60 ocean minerals to boost the natural function of the skin. Trace minerals such as lithium, magnesium, silicon, selenium, copper, zinc and calcium in deep-sea water have a high affinity with human skin and can quickly absorb to rapidly refresh and hydrate skin. Compared to surface sea water, deep-sea water has three superior characteristics:

- PURITY without any deterioration from acid rain or industrial draining

- RICHNESS of minerals and nutrient substance

- STABILITY in low temperature

shu uemura Depsea Water – aka, “water from the depths of the sea” – is taken from the depth of the ocean where sunlight does not reach, at 320 meters. Pumped directly from the location, it is also bottled at the source, where the shu uemura manufacturing facility resides. Completely free of artificial color, natural aromatic extracts are then added to become lightly scented mists that rejuvenate and hydrate the skin, hair and body. It is also a key raw ingredient used in many of shu uemura makeup and skincare products.

shu uemura makeup brushes are the most luxurious and finest makeup tools available, anywhere!

Every hair on every brush is hand stacked, never cut. The benefit of keeping the soft natural point of the hair (not the hard, blunt edge of a cut hair) is that it is far less likely to irritate sensitive skin, or areas of skin, such as the eye-area, that are prone to sensitivity. shu uemura selects the highest quality kolinsky, sable, goat, pony and badger hair, using hair from the animals' tail that has been shed in the winter months, as this is the softest. Because the hairs have been shed from the tail, naturally, the animal is never harmed. Choosing a makeup brush is similar to how an artist chooses a painter's brush. The type of animal / synthetic hair dictates the porosity and flexibility of the brush. Porosity determines the brush's ability to hold and disperse pigment while the flexibility determines the application style, strong versus soft. For the truest reflection of color, shu uemura recommends Kolinsky brushes, or Kolinsky / Sable blends.

Colour is expetise of Shu Uemura, Shu Uemura has over 100 colour in eye shadow alone. They also have black colour nail product ( pedicure & manicure ) or yellow brown lipstick.

Loreal acquired the 35% shares if Shu Uemura in 2000 only increase it shares to 52% in 2003.






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Monday, October 17, 2005

Kiehl's leverage on big S


Loreal, a company that apply strategy that grow via merger & acquisition (M&A), however will maintain the brand they acquired. The Loreal team would spend time understand the brand's history, philosopher of the founder and core value of the brand.

In 2000, Loreal acquired a niche brand Kiehl's. Although the founder family no longer hold any shares in the company. Loreal has promise not to change the spirits of the brand. Loreal never push the product aggressively and comply with the principle of the brand: "Never advertise". Only one outlet in one territory. Minimum size of the outlet and must able to put in a motorbike.....expanding slowly and low profile manner in major city of the world.

Kiehl's founded by a pharmacist family in New York. Kiehl's give a way free samples to building bound with customer ( 30% of whom are men). Their growth via word of mouth method, attracted a group of loyal customer that like their laboratory. Kieh's never advertise. They are very strict on distribution channel as well.

Kiehl's does not put much emphasis on packaging. Basic plastic bottle,list of ingredient on a white label, no photo of young ladies. Print in black and white label without colour.

The price is comparatively higher (Even baby product). However, they have a lot of "Fans" around the world. In Taiwan, because actress Big S used such product. the product run out of stock during their anniversary celebration.

I think Kiehl's is not yet in Malaysia market.

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Monday, October 10, 2005

Qiqi will be in Malaysia on Wednesday & Thursday


KARINA FOO met actor Simon Yam and his international supermodel wife Qiqi in Hong Kong while they were wrapping up the production of their new television commercial for SK-II’s Facial Treatment Essence (FTE).

While REVITALISED skin with a beautifully supple texture that defies description is testimony of those who have used SK-II skincare products.

Celebrities and ambassadors of SK-II have provided similar endorsements and the brand is well-established in Japan, Korea, Taiwan, Singapore, Britain, Australia and Hong Kong.

"We call it ‘Miracle Water’ because of an ingredient called pitera. I’ve been using in for many years before becoming an SK-II ambassador. Simon only started using it recently and his skin is looking much better," said Qiqi, who has been endorsing SK-II products since 1996.

Their youthful and radiant skin clearly belies their age (over 40) and they attribute it to FTE, their favourite product.

The new advertisement, which took 10 weeks to produce, portrays Qiqi’s life-long intimate relationship with the FTE as her skin condition and needs change over the years.

"When I was 20, FTE helped to keep my skin fresh and moist. When I reached my 30s, it gave it a radiant tone and now it still looks healthy and I’ve received many compliments for my smooth and clear appearance."

Qiqi has appeared in several SK-II advertisements on different mediums but most people remember her in the television commercial for the brand’s Facial Treatment Mask where she comes home after a long day of work and treats herself to an exquisite "facial treatment", much to the bewilderment of her friend over the phone.

This is the first time Qiqi is appearing in an SK-II advertisement with her husband. "I’m very happy to work with Simon because he’s been a great support in whatever I believe in," said Qiqi.

"Many men may be apprehensive about trying something associated with women and I admit that I wasn’t so sure about SK-II and its products. But I saw that Qiqi’s skin was the result of the brand and it didn’t take me long to become an SK-II user. Now I use it before and after any film shooting," Yam said.

Kaewta Tachamahachai, assistant brand manager for beauty care, Asean/Australasia/India, for Procter & Gamble, which manages the brand, said: "We did a consumer study in Malaysia to assess audience responses to the new advertisement and the result was sufficiently encouraging for us to believe that consumers will take to it very positively. We found that they could connect with the advertisement."

"I feel that the new commercial will tell people what FTE can really do for them, especially those who are seeking a natural and simple way to improve their skin," Qiqi said. The advertisement will be screened this month and Qiqi will be in the country on Wednesday and Thursday.













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Saturday, October 08, 2005

Vitamin E, tocotrienol and tocopherol


Vitamin E is no stranger to the world of skincare. Combined with vitamin A and C, the trio are a powerful anti-oxidant force in fighting free radicals that cause premature aging. But, after seven years of research, Dr Saadiah Sulaiman, a dermatologist at Hospital Universiti Kebangsaan Malaysia and her team have discovered tocotrienol, the predecessor to the common form of vitamin E, tocopherol.

According to Dr Saadiah, tocotrienols are 40-60 times more effective than tocopherol in neutralising free radicals. Due to its chemical structure, it is easily absorbed by cells and able to reduce skin redness caused by sun exposure. Indirectly, this prevents pigmentation, a common beauty woe of Asian women.
Interestingly, Dr Saadiah further discovered that this moisturising vitamin not only protected skin during sun exposure but also after, unlike sunblock. But she cautions: “Although tocotrienols protect skin from sun damage, it is not as good as SPF15 so you still need a sunblock.”

Made in Malaysia

What better source to harness the goodness of vitamin E than our very own palm oil. And with the recent discovery of tocotrienol, Malaysians are making full use of this vitamin in locally made skincare, Activ-E.
Activ-E was formulated based on clinical studies conducted on Tocotrienols and a combination of botanical extracts. Manufactured according to pharmaceutical standards, Activ-E addresses all the different skin types.

In Malaysia, a Mesdaq listing company Carotech Bhd, a subsidiary of second board listed pharmaceutical company Hovid Bhd manufacture tocotrienols and claim they control 80% of world market of tocotrienols.

Carotech Bhd a home grow biotechnology company shares price has rise for the past few weeks as they manufacturer biodiesel product which can substitude oil and petroleum and benefit from recent Budget 2006.


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Thursday, October 06, 2005

Dior launch Personal Beauty Analyzer (DPBA)


A beauty consultants might butter you up in the hope that you buy their products? However, a computers don’t know how to lie.

Dior, a brand under LVMH Group launch its latest gadget call Dior Personal Beauty Analyzer (DPBA), an integrated skin diagnosis system that can analyse various skin conditions and offer solutions. It has a wrinkle-analysis tool that is claimed to compare wrinkles by age group, skin
elasticity measure tool, sebum balance measure tool and skin hydration condition check tool.

Each of the personal results obtained will then be compared with an average of the women in your age group from a database of over 5,000 Asian women representing various origins, skin types and age groups. elasticity measure tool, sebum balance measure tool and skin hydration condition check tool.

The DPBA is not meant to replace beauty consultants; rather, the device is used to back up their expertise and help them in their recommendations for each customer. Dior will then devise a personalised skincare beauty plan for hydration, anti-ageing or revitalisation.




In Kuala Lumpur, the analysis is available at Dior counters at Isetan, Lot 10 Shopping Centre and Parkson Grand in Suria KLCC. It is also available at Jusco, 1-Utama Shopping Centre, Petaling Jaya.


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Tuesday, October 04, 2005

Maybelline invent Mascara


In 1913, William, a 19 years old chemist like to help his younger sister Mabel to attract the eye of her admiry. He uses a mixture of chemical together with Vaseline to put on her sister eyelash to make her sister look beauty and attractive. Her sister married to her admiry eventually.

William invented the first Mascara in the history. He used his sister name and the name of his raw material to create a brand name......That how Maybelline born.

William's family operate the business for 50 years. Then, it sold to a drug manufacture Plough in 1967. In 1990, Plough sold the company to an investment group call Wassertein Perella & Company.

Investment banker Bruce Wassertein like to buy a near bankruptcy company, revive the company and dispose off at higher price.

In late 1990, Protect and Gamble ( P&G )buy a cosmetic brand Cover Girl. P&G competitor Unilever eying to buy Maybelline.

Unilever back out eventually. They feel it is difficult to revive Maybelline and do not feel P&G would successfully revive Cover Girl. Loreal CEO feel he able to revive this American brand into a global brand.

To revive a brand does not depend on instinct, Loreal already have similar brand. They have a similar brand in French call Gemey and Jade in German. Loreal feel that by combining Maybelline with it existing 2 brand Gemey and Jade. The deal has more advantage than P&G acquired Cover Girl.

Maybelline already venture to Asia back in 1994, when Loreal acquired Maybelline. Maybelline have penetrate China's market. And have a 300 workers factory in Suzhou. At that point of time, Loreal only has a one man representative office in Shanghai and Beijing respectively.

When Loreal executive visit Maybelline China operation. They discover that they have far behind that P&G in China's market. Thus, they want Maybelline to be a starting base in China, and hope that every Chinese's lady have a Maybelline lipstick.

The merger of 3 brand start immediately. Maybelline star product mascara was introduce quickly into Gemey and Jade preduct line and market it in European Market. Gemey flagship product Volume Express become a product under Maybelline brand as well.

Purchasing of raw material and packaging material quickly reach critical mass to take advantage of economic of scale by requesting a bulk discount. Cost saving quickly turn to budget on advertising and promotion to penetrate market.

They put a New York label under Maybelline. Loreal retain the same advertising company and it slogan at that time:

Maybe she's born with it, maybe it's Maybelline

In Europe, Gemey and Jade would add a Maybelline brand on it packaging. Slowly, it enlarge the Maybelline the make the word Gemey and Jade smaller on it packaging. Today, you still can see Gemey and Jade printed on Maybelline product in Europe.

In 1999, R&D division of Maybelline launch a Nail Polish that able to dry in one minutes. This fulfill the requirement of fast pce environment of office lady. It later make all the product to dry faster, like mascara, eye liner and lip liner.

Water Shine Lipstick is the first "globalize" product that produce by the company. This is also the first product not invent in Europe or US within Loreal Group. It invented in Asia.

Kose was an agent in Japan for Maybelline before takeover of Loreal. Sales of mascara was very good than. After the Loreal take-over, Loreal want lipstick become core product.

Product recommended by US team Moisture Whip too dry. Color and quality also not suitable for Japan market, and it fail in Japan market eventually. Japanese team reinvent the product to make it more suitable for Japanese market.

In August, 2000. Water Shine launch in China, then Japan, then other Asia country. From Tokyo, Shanghai to Singapore. Water Shine lipstick make a record sales.

From Water shine, Maybelline become a global brand. It become the first choice brand for 15-19 Japanese girl. In Taiwan, Maybelline control 40% market shares. Star product mascara even control more than 75%, almost monopoly. In China, Maybelline can sell 10 million units of lipstick per year and growth at 200% per year. In Europe, it control 20% market shares.




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Sunday, October 02, 2005

Skay & Fashion Asia feedback on Lancome lip gloss


I have blog on Lancome invented lip gloss before. I also post a comment on Fashion Asia's blog requesting a feedback on lip gloss( I am a guy, not using such item, do not have close female pal to ask at the moment). Below are the two feedback I received:

From Skay:

Peter : I am using one now and I like it. Juicy Tubes that is.

From Fashion Asia:

i never own one but i tried 1 from the counter. The Tube gloss(colored ones). My opinion? All tube gloss are about the same. Dislike? the fact that the color sink down to the bottom & when u squeeze the tube, the colorless gloss comes out first and then the color, then u gotta mix mix...abit messy.

Too bad! Did any executive from Lancome or Loreal reading this?

Skay & Fashion Asia:

Thanks for both of your feedback.


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Friday, September 30, 2005

Koa acquiring Kanebo


Yesterday issue of The Star reported that Kao plan to pursue a takeover bid of Kanebo Cosmetics Inc. This has proved my comment on 20 August 2005 accurate.

The report stated that L'Oreal SA, the world's biggest cosmetics company, Johnson & Johnson and Japanese cosmetics maker Kose Corp may make competing bids.Buying Kanebo would almost quadruple Kao's sales of make-up and help the Tokyo-based company challenge Shiseido Co, the leader in Japan's US$12.4bil cosmetics market.

Few days ago, COSMETICS Resources Sdn Bhd, Kanebo’s authorised agent in Malaysia, announced on The Star that the company is setting up five more Kanebo international salons in Kuala Lumpur, Johor Baru and Kuching by the end of next year.


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Wednesday, September 28, 2005

Unemployment and Biotechnology







On 12 September 2005 of The Star. A letter title 'Scientists can't find proper jobs" stated that:

I have friends who have graduated with degrees in botany, plant pathology, entomology or environmental biology but most of them are working in fields that are not related to their studies.

On 22 September 2005. Another reader send in a letter "Help science grads obtain jobs related to qualifications" stating that:

I know of a friend's biotechnologist daughter who is applying for a nursing job. A Universiti Sains Malaysian science graduate is working as a clerk in my company.

I have seen so many job advertisement recruiting nutritionist by some of our cosmetic and network marketing company. Apparently there is a mismatch between demand and supply of our manpower in biotechnology industry.

People in the recruitment industry, head hunter and job employment agency. There is an opportunity occur here. I come across a lot of employment agency specialize in IT industry. But there is no one in biotechnology industry in Malaysia.

Meanwhile, an interesting article on The Edge on INDIA'S BIOTECH QUEEN . When job opportunity is not there. Venture out to become an enterpreneur. Who knows you might be Bill Gates in biotechnology industry.

I feel you must be passion on what you study. Research job required long period of time that never incur any income. Only people with passion oramateurr will continue with the research like what happen in the IT industry, like founder of Microsoft, Yahoo etc. Their initial research generate no income. Only passion will make them continue.

Thus, do not study biotechnology because there is a potential, but because you are passion on it .






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Saturday, September 24, 2005

La Roche-Posay and Sunway



La Roche-Posay is the only physician dispensed skincare product under Loreal group. Meaning, this product is not sell in department store. You have to see a doctor, physician or dermatologists in order to get such product.

I unable to find La Roche-Posay product on Loreal's Malaysia website. Apparently not on sell in Malaysia market. Amazon.com website also sold out/not available at the moment.

La Roche-Posay is a village 300km in southern part of Paris.With only 1,500 population. However, during holiday season. 4,000 to 5,000 people will enter the village. Not for vacation but for 3 weeks skin care spa treatment.

According to scientific research. La Roche-Posay are only thermal spring water rich in selenium, a powerful antioxidant. and reduce free-radical. This mean it has anti-aging effect on human skin.

In 1617, first analysis report has been published on spring water at La Roche-Posay.Napoleon has build a spa at La Roche-Posay to provided treatment for it army with skin and dermatological problem.

In French, dermatologists can prescript for people with skin and dematological problem to spa and the bill will be pay by government. Unlike in Malyasia, spa in French will be station wil dermatologist.

In 1929, a chemist and dermatologists used spa water to produce skin care product. In 1989, Loreal acquired the brand and in 2003, acquired the whole country village to ensure continues supply of such spa water.

La Roche-Posay always position as Adjunctive Therapy product. Its main customer are physician and dermatologists. Product sold to patient via recommendation of physician and dermatologists.

Unlike normal skin care product that categories it product between oily skin and dry skin. La Roche-Posay categories its product according to skin problem into LIPIKAR" series and sensitive skin for TOLERIANE series.

Like phamaceutical manufacturing company. La Roche-Posay has to publish
it finding on medical journal, to gain trust from physician and pharmacist and build up it brand name. It has a Clinical Test Manager in HQ in French. To coordinate research in 5 different internal laboratory and external laboratory.

Traditional dermatologists use to emphasis less on "beauty" problem of his patient. This force people move to consult beauticien. Without, professional treatment. Some has become worst after seeking treatment from beautician.

Now dermatologists become a channel to become more beauty. La Roche-Posay able to gain more market shares.

However, La Roche-Posay has difficulty to gain more market share as product not available in normal distribution channel. Repeat customer unable to buy such product in the market if they do not want to seek treatment from doctor or dermatologists.

However, physician would cease to recommend it product to it patient if such product available in department store. Thus, it is difficult to make a decision.

New Brand Director Anthony J. Ponsford would like to maintain physician as their core customer. With emphasis on result of clinical test. At the same time, they would try to widen their distribution channel to pharmacy, to be more customer driven.

In first half of 2005, La Roche Posaylaunch it first "whitening" product in Asia.

In 2001, La Roche-Posay in US acquired a similar brand Biometic. It also plan to merge with an internal cosmetic unit PHAS. Thus, La Roche-Posay would have 3 product line cover Professional Physician, Skin care and cosmetic in the near future.

In Malaysia, Sunway City Bhd has acquired a site in Tambun, Ipoh to develop into Sunway City Ipoh. The site have an reknown Tambun Hot springs which I feel can develop into a location like La Roche-Posay in French. Sunway group also has plan to venture into healthcare industry.


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Thursday, September 22, 2005

Revlon start from Nail products, manicure & pedicure


Revlon launch it nails ( Or manicure & pedicure product) products initially in 1932, by Charles Revson. In 1935, Revlon started advertisement in print media. Leader of the industry at that point of time Helena Rubinstein(1870-1965) or HR and Elizaberth Arden are too busy fighting with Watch other on marketing shares , neglected a small rival which has slowly eaten up on their market shares. Revlon do not have any of their products. Only have nail , manicure & pedicure products.

Elizaberth Arden decided to venture in nail products in 1940. Revlon, however, venture into llipstick product. In 1940 Sales is USD1.7million but have increase to USD2.8million immediately after venture into lipstick products.

In 1950, Revlon launch "Where's the fire " lipstick.

In 1955, Revlon listed on New York Stock Exchange. On the same years, it become the first company in the industry that advertise on television. It brand immediately overtake its competitors after that.

In 1956, competitors Helena Rubinstein also start advertised on television. At the same time, in Europe Dior, after establish in frangrance product. It start venture in lipstick market as well.

Unlike his competitors. Revlon is a cosmetic company that remain to be manage by man since it started.

In Malaysia, Revlon product also sell via a multilevel marketing company Cosway other than available in normal distribution channel like Watson.

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Tuesday, September 20, 2005

LiewCF resignation

LiewCF has announced his resignation on his blog. I think he is the only Malaysian blogger that work in beauty and cosmetic industry.( other than myself).

However, his blog is related to technology, not cosmetic industry.

I really curious which company he attached to before? It would be good if he able to share some industry knowledge for me to blog!

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Sunday, September 18, 2005

Cleanser, toner & moisturizer

On Thursday, an article on the star stated that:

Ask any women and even if she is no beauty expert, she will probably be able to tell you that the basic formula for good skin involves cleansing, toning and moisturizing...........Made popular by Clinique. REALLY??

Biotherm, a brand acquired by L'Oreal in 1970. Unlike other traditional product that categories it product into hydrating product and whitening product. Biotherm categories it product base on your skin, Dry Skin, normal and combination and Oily Skin separate by Pink, Green and Blue colour respectively. It further categories into cleanser, toner and moisturizer.

Actually, 3 step formula of cleansing, toning and moisturizing was invented by Elizebert Arden.Whereas separation of skin into Dry Skin, normal and combination skin and oily skin was first introduce by Helena Rubinstein. A company under L'Oreal now.

Biotherm originated from mineral water. In the early of 19th century, a French biologist discover that mineral water under Pyrenees mountain in the southern part of French has "Thermal Plankton", a key to beautifully healthy skin, a potent skin rejuvenator. He apply intellectual property right on this discovery.

In 1952, founder of Biotherm acquired the IP right and used it in skin care product.

In 1970, L'Oreal acquired Biotherm and venture into Asia market in 1996. Being a late comer in Asia market, it target young people age between 20-29, It target body care product which is neglected by other brand and it also target Men's care segment.

On marketing strategy, Biotherm spend it major marketing budget on Direct Mailing. Usually, cosmetic company spend their marketing budget at the ratio of 4:1. Biotherm Direct Mailing Vs marketing ratio is 1:1. They selected Department Store loyal card holder age between 20-29, achieve certain spending target over last 3 months. Biotherm their brochure to those department's store loyal card holders. This targeted member received at least 3 brochure every year from Biotherm. Attract them to request sample product. Usually, cosmetic product's sample sets are 5ml. Biotherm give full sets of its product genereously.

As Biotherm give a lot of sample sets. It quickly build up it customer database. A customer database was build up base on respective identification number. Sales people would made follow up call after one week a person received a sample sets.

It quickly create a buzz among young people. Majority of Biotherm's new customer are recommended by friend, and this is the first time they buy skin care product. Thus, they have successfully attract first timer.......They bring in new customer to department store. After this incident, department store start allowing them to set up counter in their premises.

Later, Biotherm launch body care product and men's care product. Unexpected the market trend has change and slimming become a fashion. Sales of slimming product has been escalated. Even until now, slimming product comprise 1% of it turnover.

In Hong Kong, Biotherm breakeven in it first year. It become a top department store's brand in second year. In Korea, which people loyal to their own country brand. It rank no 7th .


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Sunday, September 11, 2005

Lancome invent lip gloss


Lancome, a brand acquired by Loreal in 1964. Founded by Armand Petitjean in 1935.

Rose is favorite flower of Lancome's founder Armand Petitjean .Since Lancome founded in 1935. Rose was appear in almost every advertisement of Lancome.

Lancome view as an old fashion by young generation.

In order to revive the brand and product.Lancome change it marketing strategy in 2004. Not so emphasis on rose; but rose, lady and product. With a hand written signature logo to signify a close relationship with it customer.

From 1996, R&D centre and marketing team in Japan are responsible for developing a lot of Japan version of product foe Asia market. One of it is BLANC EXPERT Mela-NO Cx Supreme Whitening Spot Corrector. This product quickly penetrate Asia and the world

In 2000. Lancome innovate world first lip gloss. It become a star product of Lancome. Every minutes. Lancome would sell 10 units of lip gross in the world. All competitors are follow to launch similar product.

In 2004,Lancome launch it product for oily skin Pure Focus. The idea was provide by its Taiwan Division and develop by it international team. This product able to sell not only in Asia but penetrate world market. Again, competitors rush to launch similar product.

In 2004, Lancome open it first boutique in Hong Kong. After sucessfully tested such concept. It launch it second boutique in Shanghai. It plan to open more such boutique in Asia, US and France in near future.


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Sunday, September 04, 2005

Clara International venture into biotechnology

Dr Clara Chee, founder and Chairman of Clara International Beauty Group, announced the company plan to venture into biotechnology industry at the recent Biotechnology Asia 2005 Conference at the Putra World Trade Centre.

Gelang Pasir, which is used by the Javanese for its anti-inflamatory properties, can be used as a raw ingrediant for cosmetic product targeted at hypersensitive skin. The results of this herb have been proven as itis used in the Clara International range of cosmetic products.

Recently, Dr Clara Chee has discovered a herbal based skin gel that she claims cures psoriasis, a skin disorder, and is looking for partners to bring this product to the market.

" The product was not put throught clinical trails as it is not a pharmauceutical-grade product, but a skin-care product. So far, the product has been sucessful in the case studies we have cinducted and the testimonials from users have been positive. However, we will look into putting the product throught clinical trials at a later stage," Reported The Edge.

Clara International currently has two manufacturing plants located near its headquarters in Puchong, planning to set up a phase three plant, a facility that is used for the development of orally prescribed products.

Clara International'd OTC (over the counter) plant is used to develop over-the-counter products while the phase four plant is used to develop cosmetic products.

" We will be looking into herbal menopause therapy eventually once this plant is up and running. The therapy will be an alternative to normone replacement therapy(HRT)," She added.


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Roslawati and Le' Rose

“I started being an announcer in RTM2 and modelling part-time while working in a bank because I needed money to buy clothes and make-up. I liked looking good and wearing designer clothes, so I had to work hard.

“I began recommending the skincare products I was modelling to family and friends. It got to a stage when they asked me to open a beauty salon so they could buy the products directly from me. I was also inspired by my friends who were doing well in the business,” said the 30-year-old, who holds a secretarial diploma and took beauty courses part-time while working in the bank.

International Trade and Industry Minister Datuk Seri Rafidah Aziz opened Roslawati's first beauty salon in 1999, and a big photograph of them standing together hangs in her office. A year later, Roslawati opened her second salon.

“It is all about working hard. Running a salon was profitable. But I wanted to start my own product because the profit margin will be higher. I also realised that beauty products can be too expensive for some of my customers. Everybody wants to be beautiful but sometimes my clients can only afford to buy the products for the first round.”

So she packaged her products in smaller quantity, and kept the price reasonable.

It is this pragmatism that seems to steer Roslawati's business philosophy.
“I started small. Even now, I have to be careful of costs. I cannot afford to advertise. The publicity we got has been from write-ups about our workshops,” said the managing director, who is completely hands-on in every aspect of the operations of her company, Le Rose Total Wellness Sdn Bhd.

It is essentially a one-woman show with a few employees to help out at her office in Gombak, which houses her distribution centre and the Le' Rose beauty salon.

Roslawati is, however, usually on the road as she has collaborations with Wanita and Puteri Umno to conduct beauty workshops.

“We have done the workshops in Johor and Pahang, and will start conducting the workshops in Kelantan this week. I enjoy conducting the workshops because the women respond so enthusiastically. It's very interactive, and we teach them about the importance of grooming and carrying themselves well.

“I teach them how to take care of their skin, and how important it is to wash their face. We also give them tips on how to wear their tudung and how to match their accessories. The participants enjoy the workshop; beauty is important to women, even 60-year-old grandmothers like to care for their skin,” said Roslawati, who was in Brunei for two months recently to conduct beauty workshops.

It is a good marketing strategy for Roslawati as she is able to introduce Le' Rose products to a captive audience. Some of the workshop participants also signed up to be her agents.

“I enjoy doing the workshops because I enjoy meeting people. But it is also hard work. We are scheduled to conduct the workshops in 45 parliamentary divisions in Kelantan over the weekends. That means I will not have any free weekends till next year,” she said.

In future, Roslawati hopes to expand her merchandise range to include cosmetics and herbal products.

The above are excerpt from The Star.


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Saturday, September 03, 2005

Revlon and Alliance Cosmetic Group


From a small shop lot in Sri Petaling, Alliance Cosmetics group has spread all over Malaysia and Singapore. Its staff of 16 to 18 people has now grown to over 230 (95% of them women).

Over the years, they’ve managed to expand their portfolio to include a range of cosmetics and bodycare products, including Revlon, Wet ‘n’ Wild, Avene, Elancyl and Silky. Revlon still remains their top-selling brand and is labelled the premium of the mass-market brands, after L’Oreal. Neither of them flinches when I mention their competitor’s name, nor do they start spitting venom. “They have L’Oreal and Maybelline, and we have our Revlon and Wet ‘n’ Wild,” Tan says confidently. “Wet ‘n’ Wild had its biggest growth last year. Right now, there are more than 400 counters all over Malaysia as well as Singapore.”

Alliance Cosmetics’ history with Revlon has been an eventful one, albeit not a very long one. After 20 months of negotiations, Alliance Cosmetics finally acquired sole distributorship for Revlon on Oct 7, 2000, in Malaysia, Brunei and Singapore.

Silky, Alliance Cosmetics’ in-house brand of cosmetics. It’s a brand that was launched in January last year; a brand that they hope to be able to market throughout Southeast Asia. At the moment, the young brand has three categories — Silky Lips, Silky Care and Silky White — all neatly priced at RM10 and below.

“I knew absolutely nothing about cosmetics,” says Tan. “I just bought over the company [with a partner], looking at it as another business opportunity. We started out with two brands — Physician’s Formula [make-up] and Avene [body care]

The above are excerpt from The Edge


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Sunday, August 28, 2005

Loreal and HR

Loreal started from a hair care product company to become one of the largest beauty and cosmetic company in the world.It CEO Mr.Owen-Jones has been listed as 100 most influencial people in the world by Times Magazine. How do they do that. They do it via merger and acquisition. Over the years, Loreal has acquired numereous brand worldwide. One of the brand it acquired is Helena Rubinstein or call HR.

L'Oreal Professional is the brand for it hair care product. Whereas L'Oreal Parisis the brand for it cosmetic and skin care product. It skin care product technology actually is using technology of HR. A company it acquired in 1989. HR is a well known brand in US found by Helena Rubinstein(1870-1965).

With technology from HR, together with other brand it acquired. Loreal become the largest company in beauty and cosmetic industry in the world.

HR closet competitors Elizaberth Arden. Elizaberth Arden, a company found by Elizaberth Arden is not a well known brand in Malaysia. I do saw some recomendation by Chinese media in Malaysia occasionally and it product sold in SaSa shop in Malaysia. Apparently the brand has acquired by Unilever at some point of time.However, it product does not adjusted to suite the weather in Asia, thus, Asian feel it is too oily and is not popular in asia.



Elizaberth Arden's (1884-1966) product is the only product that able to compete against HR. As Loreal's product mainly using technology of HR. Unilever Group who own Elizabeth Arden is rank second largest company in beauty and cosmetic industry in the world after Loreal. But unlike Loreal which derive nore than 90% of sales from beauty and cosmetic industry. Only 19% of Unilever income are from beauty and cosmetic industry.

However, HR are well known in it technology and product quality whereas Elizaberth Arden's strenght are in Product packaging and Design.


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