Posts tagged with "Clean cosmetics"

Bono-backed Beautycounter is bringing its clean makeup to the masses at Sephora

June 23, 2020

On August 7, Beautycounter—a beauty brand with a much-hyped “Never List” of 1,800 ingredients that are not used in the production of its clean products—is launching some of its most popular confections at the stores of makeup retail giant Sephora in a bid to bring its clean mission to the masses.

The products will hit Sephora’s website even sooner, on July 7, for a limited time only, CNBC reports.  “It’s an opportunity to really validate the movement for clean,” CEO Gregg Renfrew told the cable news outlet in a phone interview, adding, “We have an army of advocates, and we want more voices to our movement.”

For LVMH-owned Sephora, the partnership advances its commitment to stocking its shelves with more clean beauty products, building on the trend toward using only safe and sustainable personal-care products. Beautycounter’s merchandise will be featured online on Sephora’s “Clean Makeup” page, alongside brands such as Kosas and Supergoop.

“We also know our clients continue to seek high-performing, clean beauty products,” Artemis Patrick, executive vice president and chief merchandising officer at Sephora, said in a statement.

Beautycounter’s business has been unconventional from the start — in that it eschewed the first-floor makeup counters of traditional department stores in favor of a model more akin to the cosmetics giant Avon.

Headquartered in Santa Monica, California, it launched as a direct-to-consumer business in 2013, selling through its own website and web of consultants—of which it has more than 60,000 today. It was first founded by Renfrew in 2011.

Many of these consultants are so-called micro-influencers, according to Renfrew, and they tout Beautycounter’s merchandise through their social media accounts with thousands of followers, or over virtual Zoom gatherings. They receive up to 35% commission on their retail volumes, she said. And many of the consultants will actually build out their own teams and sell together, Renfrew added.

According to CNBC, Beautycounter currently has three boutiques—in Denver, in New York City, and a seasonal pop-up in Nantucket— with another set to open in Los Angeles later this year.

Beautycounter has raised $106.9 million to date, according to PitchBook. The privately held company, whose roster of investors includes the U2 frontman Bono and the private-equity firm TPG, was most recently valued at about $400 million.

Research contact: @CNBC

‘Pretty, pretty good’: Natura Cosmeticos acquires Avon Products

May 24, 2019

The news is “pretty, pretty good,” as comedian Larry David would say: Avon Products—the iconic British company that eliminated the department store beauty counter and sent its vast network of  sales representatives out to market cosmetics and beauty potions person-to-person (and door-to-door)—has been acquired by Natura Cosmeticos, a Brazilian beauty conglomerate, for about US$3.7 billion in stock.

The purchase will create the fourth-largest pure-play beauty group in the world. The combined businesses will have more than 6 million direct sellers, 3,200 stores, and operations in 100 countries, according to the companies.

In 2017, Natura bought The Body Shop, another British beauty company, from L’Oreal.

Avon, which was founded in 1886, had been struggling financially and losing salespeople, according to a report by Fast Company. However, it is still the fifth largest beauty company in the world, with a salesforce of 6.4 million reps worldwide, and generated $5.5 billion globally in 2018.

Part of Avon’s woes had to do with the fact that the company had not kept up with changing consumer behavior, Fast Company notes. At the same time, there have been many beauty startups vying for Avon’s customers.

Among them is Glossier—which launched in 2014 and began targeting Millennials with a strong social media presence. It creates product based on the vast amounts of customer data it gathers and is currently worth about $1 billion, Fast Company says

Another is Beautycounter, launched in 2013, which offers “clean beauty” products—free of 1,300 known toxins or questionable ingredients. It is currently valued at around $400 million.

In the hands of Natura, Avon products could be sold throughout Latin America, Europe, and Asia using the company’s vast distribution channels. In a release, Natura says it expects to generate annual gross revenues of more than $10 billion.

Research contact: @Naturacosmetica