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The D2C Disruption

...In Personal Care and Beauty


Paula’s Choice Faces Fan Discontent And Growing Competition From New Skincare Brands

Skincare brand Paula’s Choice is facing growing consumer complaints over some steps taken by the company and its founder Paula Begoun. After the company was acquired by private equity firm TA Associates in 2016, Begoun was replaced by Tara Poseley as chief executive officer in 2017. Negative consumer reaction began when the company started raising the prices of its products and after the company launched an eye cream. Also, the direct-to-consumer brand is facing growing competition from emerging skincare brands, such as The Ordinary, Cosrx, and Drunk Elephant. According to Poseley, the company urgently needed a rebranding and speeding up the rate it brings new products to the market.[Image Credit: © Paula's Choice]

Aesthetic Hydration Cosmetic Opens Shanghai Pop-Up Store, Marks Coming Into China Market

South Korean skincare brand Aesthetic Hydration Cosmetic has unveiled a pop-up store in Shanghai, marketing the company’s official entry into China’s beauty care market. According to AHC, its cosmetics products are being sold at health and beauty stores across China, as well as in online shopping malls in the country. With the pop-up store offering customers the chance to experience the company’s leading products, AHC said it will target women in the country with its leading moisturizing products.[Image Credit: © CARVERKOREA]


Avon Launches Online Training Program For Sales Training Teams

Avon announced the launch of Digital Innovation University, the direct-to-consumer beauty brand's digital training program for its Sales Training Teams. Developed in partnership with digital experts, the training program is available online. It comes with three modules and runs for three months.[Image Credit: © Avon Products, Inc.]

L’Oreal Receives Approval To Buy Bon-Ton Stores Mailing List

French beauty brand L’Oreal has received approval from the U.S. Bankruptcy Court in Delaware to acquire customer data from bankrupt department store chain The Bon-Ton Stores Inc. L’Oreal has agreed to pay $312,900 for the information after winning the right to buy the mailing list in an auction in July 2018. However, the purchase price could still change, with L’Oreal having to pay 35 cents per customer if the customer count falls below 894,000.[Image Credit: © Bon-Ton Holdings, Inc]

Glossier CEO Weiss Sees No Chance For Her Company Working With Amazon

Emily Weiss, founder and CEO of ecommerce beauty startup Glossier,said her company will never sell on online retailer Amazon's platform. Established in 2014, Glossier has received $87 million in venture funding, enabling it to create a beauty brand popular among women. Weiss said other ecommerce companies can grow outside Amazon's shadow and that the user experience offered by the online retail giant “may not be the best fit for beauty and fashion products”.

[Image Credit: © Glossier Inc.]

Jurlique Collaborates With Tryzens To Launch New Digital Platform With Improved User Experience

Australia-based skincare brand Jurlique has partnered with ecommerce technology company Tryzens to launch a new digital retail platform. In 2016, the brand first launched its digital platform; its partnership with Tryzens aims to improve its customer experience and offer new ecommerce capability for shoppers.[Image Credit: © Jurlique]

Rituals Cosmetics Plans To Open Kings Cross Store In London

Rituals Cosmetics plans to open a new store at London’s Kings Cross train station. Part of the beauty brand’s efforts to attract tourists, the store will offer customers with a “unique and immersive” shopping experience. According to the  company, the store will embody the company’s holistic and well-being ethos.[Image Credit: © Rituals]

Pharmacies Go Beyond Selling Medication, Transform Into Wellness Centers

Drugstores are expanding their lineups of products and services to address the shift in consumer concept of health and wellness. According to the 2017 report, “Well Economy,” by JWT Intelligence, 77 percent of respondents link health with physical condition; however, 75 percent say mental health comes to mind when they think of health. Also, only 17 percent of consumers seek out prescribed medication when they are ill. Casino Group partnered with L’Oreal in June 2018 to launch Le Drugstore Parisien in Paris where customers can avail themselves of personal care services, including light therapy, dry cleaning, and shoe shining. In August 2018, pharmacy chain CVS launched BeautyIRL, a retail concept designed to highlight the company’s locations as beauty destinations where customers can receive treatments, test products, and access information about new brands.[Image Credit: © CVS.com]


L'Oreal, ModiFace Partner With Facebook To Let Consumers Try Makeup Products Through AR-Enabled Experiences

L'Oreal and its recently purchased augmented reality and artificial intelligence company ModiFace have partnered with Facebook to create AR experiences for consumption by users of the social networking platform's camera products. Featuring a direct and seamless link between Facebook and ModiFace, the partners will deliver AR-based experiences, enabling consumers to virtually try on makeup products from leading beauty brands, including Maybelline, L'Oreal Paris, and NYX Professional Makeup. [Image Credit: © Modiface Inc.]

Market News

Subscription Model Dominates Ecommerce, Offers Benefits For Businesses And Their Customers

In 2017, the subscription model accounted for 75 percent of online sales and continues to grow at a steady rate in 2018. In the first half of 2018, the market saw a huge move toward subscription-based retail. At its early stage, the subscription-based model were driven by Netflix and Spotify, platforms used by consumers to pay for entertainment instead of buying physical media. Subscription-based business offers several benefits for consumers, including saving money, saving time, and access to wide collections of products. For businesses, the model offers advantages, including predictable income, price control, and data collection.[Image Credit: © BiljaST]
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