Weekly comment

The time is now for niche players to target the developing markets

12-Oct-2009 - With the growth of cosmetics sales continuing in most of the major developing markets new opportunities continue to proliferate for niche cosmetic players, but now is the time to get in on the act.

New orders, new clients: business looking up for contract manufacturers

08-Oct-2009 - As consumers feel the pinch of a global recession they often look to private label goods as a way to save a few pennies. Couple this with the lower overheads and financial outlay offered by contract manufacturers and the sector seems to have a winning formula to survive difficult economic times.

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Economic crisis redefines the cosmetics industry

08-Sep-2009 - Despite cries of the ‘lipstick effect’, the cosmetics and personal care industry has not been protected from the economic downturn and some analysts argue recent alterations to the market and changes in consumer behaviour might be here to stay.

Top three stories this week

P&G ventures into risky and uncharted territory with acquisitions, says analyst

24-Jun-2009 - A Mintel analyst has warned that Procter & Gamble (P&G) must commit significant resources to build the premium male grooming market and turn its recent acquisitions into a success story.

Top three stories this week

P&G buys another luxury men's grooming company

16-Jun-2009 - Procter & Gamble has added another high-end male grooming brand to its portfolio through the acquisition of men’s skin and shave care brand, Zihr.

Marionnaud Group announces 700 job lay-offs

16-Jun-2009 - Luxury perfumeries and cosmetics chain Marionnaud has announced plans to lay-off around 700 employees in France, owing to the “very difficult current economic context”.

Gross margin growth expected in personal care, despite surge in oil price

15-Jun-2009 - European personal care companies should enjoy “strong gross margin growth” despite the recent surge in the oil price, says Bernstein Research.

Interactive timeline of the ugly economy and the beauty industry

09-Jun-2009 - Cosmetics Design has created an interactive timeline of the major news stories on job losses, corporate failure and restructuring in the cosmetics industry over the past six months to give readers a new perspective on the impact of the economic crisis.

Private label and cheaper brands win out as recession bites

08-Jun-2009 - Consumers are continuing to turn their backs on premium cosmetics in favour of less expensive and private label brands, as a new market report underlines a further tightening of purse strings.

BASF opts out of care chemicals price war

04-Jun-2009 - The head of BASF’s care chemicals business said the company refuses to be drawn into a price war to compete in the depressed market for personal care ingredients.

Appointment of new Physicans Formula CFO threatens NASDAQ listing

03-Jun-2009 - Physicians Formula has received a NASDAQ Staff Deficiency Letter threatening the company with delisting if it does not fulfill requirements for its executive board.

Cognis reports sharp drop in quarterly sales

28-May-2009 - German specialty chemicals firm Cognis has posted a net loss of €33m for the first quarter following a sharp drop in turnover.

Dealmakers search for acquisition bargains in cosmetics and pharma

18-May-2009 - Corporate bargain hunters are looking for good buys in cosmetics and healthcare as the economic downturn throws up a range of acquisition opportunities.

Symrise restructures as first quarter profits suffer

07-May-2009 - Symrise is closing a production facility in Spain as part of restructuring plans which aim to improve the company’s bottom line.

L'Oreal reports limp sales as luxury takes a tumble

07-May-2009 - L’Oreal reported flat first quarter sales but differences between divisions were marked with luxury and professional product sales being the hardest hit.

BASF reports sales slump and cuts 2,000 jobs

05-May-2009 - BASF has announced plans to cut about 2,000 jobs by the end of the year after first quarter sales fell sharply.

In-cosmetics panel gets under the skin of the recession

28-Apr-2009 - A panel of beauty experts gathered at in-cosmetics in Munich last week to examine the latest data on the cosmetics industry and diagnose its financial health.

European Commission imposes conditions on BASF’s acquisition of Ciba

13-Mar-2009 - BASF is now one step closer to acquiring Ciba but had to promise to share cosmetics know-how and sell businesses to get the €3.8bn deal accepted.

Avon rating downgraded on currency weakness and CEE gloom

10-Mar-2009 - Citing currency weakness and overexposure in the Central and Eastern European (CEE) market, an analyst has downgraded Avon's outlook for 2009.

Dow settles differences with Rohm and Haas

10-Mar-2009 - Dow Chemical’s acquisition of Rohm and Haas will go ahead after the companies reached an agreement that eases Dow’s debt burden.

Beiersdorf says acquisitions are still possible as results defy downturn

04-Mar-2009 - Beiersdorf announces strong sales growth and beats earning forecasts, adding that it will remain acquisitive in 2009 if the right opportunities arise.

Raw materials and acquisition costs drag earnings down for Symrise

04-Mar-2009 - Sales increases at fragrance and flavour company Symrise were not enough to keep net income from slipping in 2008.

Comment

Value cosmetics will be key to beating the economic downturn

03-Mar-2009 - With word out that consumers are increasingly focused on value for money, providing personal care products that fulfill this criteria is now the big challenge facing manufacturers.

BASF’s outlook for 2009 is weak after a difficult fourth quarter

26-Feb-2009 - BASF expects a drop in sales and an even greater drop in operating income in the coming year.