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Showing posts with label Beauty and cosmetic. Show all posts
Showing posts with label Beauty and cosmetic. Show all posts

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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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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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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Sunday, August 21, 2005

Kanebo delisted by Tokyo Stock Exchange


Kanebo Ltd, a textile company which aggressively venture into cosmetic and skin care product, involve in one of the Japan's biggest accounting fraud involving a non-financial firm.

Oriental Daily has reported that Tokyo Stock Exchange has started a delisting procedure against the company.

Sin Chew Daily yesterday reported than Japan government has start prosecuting executive involve in such scandal.

Industry player like Koa From Japan, Loreal from France, KOSE from Japan, P&G, Relvon and Johnson and Johnsom from US, are reported have been submitted a bit to acquired Kanebo.

Other than industry player. Financial Institution like Goldman Sachs, Investment Bankers from Japan and a few Private Equity Investment Fund also interested in Kanebo


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