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November 30, 2009

Shiseido Forms JV Company in Greece

GREECE: Looking to grow sales here, Shiseido International Europe S.A. has inked a joint venture agreement with Gerolymatos Cosmetics S.A., a cosmetics importer based in Athens. The joint venture, Shiseido Hellas S.A., begins operations next month. Shiseido will control 51% of the company.
Shiseido began selling cosmetic products in Greece through a distributor in 1991. By undertaking direct operations through a joint venture, the company plans to establish a sales organization that is “intimately connected to the market” and will “ultimately increase sales by creating an enhanced presence for the Shiseido brand.”

Gerolymatos Cosmetics is a subsidiary of Alapis S.A., a manufacturer and distributor of pharmaceuticals, parapharmaceuticals, veterinary pharmaceuticals, cosmetics and detergents. In other news, Shiseido has started selling its wares in the Republic of Azerbaijan. Products are rolling out this month via Shiseido’s subsidiary, Shiseido Europe S.A.S. The Japanese company’s entrance in the market is part of the firm’s plan to increase its operations internationally. Azerbajian is the 73rd country and region in which Shiseido is selling cosmetics.

Sephora Opens Flagship in Singapore

SINGAPORE: Sephora has opened a new flagship store in Singapore. The 1,200-square-meter shop, which is located in the luxury Ion Orchard shopping center, is Sephora’s largest retail space in Southeast Asia.

“This opening is another step in Sephora’s successful international expansion and illustrates our desire to be a leader in emerging markets with strong growth potential. It is one of the largest of our network of 1,000 stores across the world and will become Sephora’s reference outlet in Asia,” said Jacques Levy, president of Sephora Worldwide.

Sephora, part of LVMH, opened its first store in Singapore in late 2008.

L’Oréal’s Libramont Plant Goes Green, Carbon Neutral

BELGIUM: L’Oréal has opened a bio-methane center at its Libramont, Belgium plant, marking what the company calls an important step forward in its commitment to cut carbon emissions in half by 2015.

The plant, which was opened in 1975 and employs 400, now uses 100% green energy and is carbon-neutral. The first of its kind in Europe, the center, developed by Eneco and Bio Energie Europa, transforms biomass from local farmers and the agro-alimentary industry into methane gas, which undergoes a fermentation process and then is transported to the plant, where it is converted into electricity and heat. The process provides the facility with 100% of the plant’s electricity and 80% of its heat. Since more green electricity is generated than required by the factory alone, the surplus power—enough to meet the needs of approximately 4,000 households—can be injected into the public grid, according to L’Oréal.

CP Kelco Opens CMC Plant in Taixing, China

CHINA: CP Kelco has completed construction of a hydrocolloid facility in Taixing, China. The facility, which complies with China Food GMP standards, produces carboxymethyl cellulose (CMC). Designed to produce 15,000MT/year with the ability to expand to accommodate future demand, the facility will allow the company to further expand its purified CMC offering into the Asian markets, said Robert Dunn, CMC category director.

CP Kelco’s Taixing facility will feature the new Majol CMC brand, a highly purified, cold-water-soluble polymer.

In-Cosmetics Asia 2009 Attracts 2,200 To Singapore

SINGAPORE:In-Cosmetics Asia 2009, which took place in Singapore from Oct. 13-15, attracted 2,202 visitorsincluding attendees from China, India, Indonesia, Malaysia, Philippines, South Korea, Thailand, Brazil, France, U.S. and South Africa, according to show organizers. Exhibitors ranged from large firms such as Croda, DSM Nutritional Products and Seppic to niche firms. The Korean and French pavilions were extremely popular, with visitors keen to explore the newest products originating from these countries, according to Reed Exhibitions.

In addition, the Spotlight on Skin-Whitening conference was sold out, with delegates from Amway, Johnson & Johnson, Kimberly-Clark, L’Oréal and Procter & Gamble. The Cosmetic Regulations and Safety Assessment workshop was also another sell-out, according to show management. The first of its kind in Asia, it gave delegates the opportunity to review the Asian regulations and to assess product safety in accordance with the ASEAN Cosmetic Directive, through interactive, practical demonstrations.

“In-Cosmetics Asia has really established itself as the training and educational center for the cosmetics industry in Asia, thanks to the excellent educational programs each year, covering the hot topics in the ASEAN region and across the globe,” said Sarah Gibson, exhibition manager of In-Cosmetics Asia. “The unprecedented number of international visitors helped create a vibrant and stimulating atmosphere at this year’s conference as well as on the exhibition floor.”

In-Cosmetics Asia 2010 will take place at Queen Sirikit National Convention Centre in Bangkok, Thailand from Nov. 16-18, 2010.

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Private Label Demand Grows in India

INDIA:Private labels are increasingly posing a threat for fast-moving consumer goods (FMCG) companies in India, according to a new consumer insight report from Datamonitor. The consumer survey reveals that while the adoption of private labels began with its value proposition, consumers perceive these store brands are offering quality at par with other national brands.

The increased operational scale of retailers is shifting the bargaining power from FMCG companies to retailers. “The growing adoption of private labels can compel FMCG companies to reassess their trade margins or relationship with retailers,” said Vaibhav Khera, director, India consumer markets research at Datamonitor.

Indian retailers are laying a strong emphasis on the growth of their private label brands which is bringing in greater margins and is helping them gain greater bargaining power with FMCG companies.
Retailers, which started launching their private labels as a value alternative to national brands, are now mirroring these national brands with regard to packaging and claims and are offering these products at a lower price. Retailers are also launching products with tiered pricing to cater to a wider audience while holding on to their store positioning.

Datamonitor expects that a customer satisfied with a private label brand in a low involvement category such as household care would have a greater propensity of trial in other categories such as food and beverages and personal care. 

Though private labels are increasingly gaining a strong foothold in the organized retail segment, FMCG companies can avoid this competition by investing in innovation and product differentiation.

According Khera, “FMCG companies should play on their strengths and monetize opportunities emerging due to changing consumer behavior.”

Kosé Releases High-End Cosmetics Brand In China

CHINA: Japanese cosmetics maker Kosé Corp. has introduced its luxury brand, Cosme Decorte AQ, in China. Cosme Decorte AQ makeup and skin care products will first be sold through high-end department stores in Beijing. Based on response, Kosé will expand sales to other major cities.

According to a report in the Nikkei Business Daily, Kosé is also selling its ultra luxury brand Cosme Decorte in China but will put most of its effort into promoting the AQ line.