Tom Branna, Chief Content Officer04.01.24
The Personal Care Products Council (PCPC) picked the perfect time to hold its first in-person annual meeting since the pandemic. New President and CEO Tom Myers welcomed attendees to Florida last month and rattled off an array of numbers that underscores the industry’s health.
“According to our new Economic and Social Contributions Report, our industry grew in almost every category,” Myers told attendees.
The report also uncovered several nuggets of diversity, equity and inclusion in the personal care workforce:
Myers may be new to the job, but he’s not new to the beauty industry—or PCPC. Prior to being named CEO, Myers spent the past 15 years with The Council, primarily as its general counsel.
“I love and respect this industry,” he told attendees at annual meeting that was held in Coral Gables, FL, February 26-28. “I had never been part of an industry that, remarkably, truly wanted to do the right thing and make a positive difference in the world. To empower women. To lean into diversity and sustainability. These weren’t just words on a page. And yes, it’s a business, and yes profits are important; but just as important is this unwavering commitment to improve the lives of others. Of its customers. Of the community. Of the world around us. And, for me, that was revelatory.”
“I have seen the work that they do firsthand, and I can tell you the people who do this work are well-meaning, they are selfless and 100% committed to the program’s laudable goals,” added Myers. “None of it would be possible without the commitment and contributions of our member companies—products, materials, finances. As I said, this is an industry that truly wants to make a difference in people’s lives.”
“Misinformation and its viral effects represent perhaps the most daunting challenge for us, which is why it is imperative that we advocate aggressively for evidence-based public policies,” said Myers. “We firmly believe that safety decisions must be grounded in science, not fear mongering.”
“Conversational AI can do amazing things,” admitted Bennett. “But it still has two key limitations—it makes mistakes and is hard to teach.”
That said, for the first time, it is possible to use AI to anticipate customer questions. That has major implications for the personal care industry in that 39% of beauty shoppers say they want data derived from AI and 15% are already using it. Bennett pointed out there are two ways beauty companies can use AI. Internally, it can write copy—that must be checked to ensure for accuracy. Here, AI has the potential to make employees more productive. Externally, using AI involves more risk. It can be used for shopping assistants, summary reviews and frequently asked questions. But Bennett warned that Amazon’s ChatGPT-written reviews are getting flack because they are very negative.
“Shopping assistant is the Holy Grail,” he insisted. “It can answer long form questions and open a window to the consumer.”
At the same time, Bennett warned attendees that Big Tech companies don’t know what works in these shopping systems.
“Think of it like early steering systems for automobiles,” he suggested.
In those days, engineers used levers, a design derived from small boats. Tillers were easy to use for very slow speeds and lightweight vehicles, such as those with three wheels. The round steering wheel debuted in 1895.
Wade Ackerman, an attorney with Covington & Burling, gave attendees an update on MoCRA and how it will impact record-keeping. He noted that FDA has had the power to inspect facilities since 1938—MoCRA adds record-keeping requirements.
“Your internal procedures must account for this record-keeping,” explained Ackerman. “Your employees should understand what FDA has access to and what FDA must do to get access.”
MoCRA gives FDA access to adverse events and GMPs. FDA doesn’t gain access to sales, pricing and personnel data. MoCRA gives FDA the ability to issue mandatory recalls. To help its members understand the new regulations, PCPC held a webinar on MoCRA last month.
“There are no user fees in MoCRA, but we want FDA to have funds to implement MoCRA,” added Ackerman.
Just last month FDA requested $8 million in additional funding to support MoCRA implementation. In a statement, FDA said it will use the money to further develop a modernized cosmetics regulatory program and enhance the agency’s efforts to protect consumers and help ensure the safety of cosmetic products. Funds will be used for activities such as developing regulations and compliance policies; managing submission platforms associated with MoCRA provisions; reviewing MoCRA-required information submitted to the FDA for industry compliance; and hiring additional subject matter experts to manage critical projects, such as the assessments of the use of perfluoroalkyl and polyfluoroalkyl substances (PFAS) in cosmetic products.
Ackerman noted MoCRA preempts some activity at the state level, but states can still issue ingredient bans. California’s ban on 23 ingredients goes into effect this year and Washington passed a similar bill last year. Other states to watch, according to Ackerman, are New York and Vermont.
“According to our new Economic and Social Contributions Report, our industry grew in almost every category,” Myers told attendees.
The report also uncovered several nuggets of diversity, equity and inclusion in the personal care workforce:
- 79% of the beauty workforce is made up of women;
- 33% of employees are people of color, and
- Nearly 19% identify as Hispanic or Latino.
Myers may be new to the job, but he’s not new to the beauty industry—or PCPC. Prior to being named CEO, Myers spent the past 15 years with The Council, primarily as its general counsel.
“I love and respect this industry,” he told attendees at annual meeting that was held in Coral Gables, FL, February 26-28. “I had never been part of an industry that, remarkably, truly wanted to do the right thing and make a positive difference in the world. To empower women. To lean into diversity and sustainability. These weren’t just words on a page. And yes, it’s a business, and yes profits are important; but just as important is this unwavering commitment to improve the lives of others. Of its customers. Of the community. Of the world around us. And, for me, that was revelatory.”
Look Good Feel Better
One example of how the industry improves lives is the Look Good Feel Better (LGFB) charitable foundation. The 501c3 nonprofit helps patients with appearance-related side effects of cancer treatment. LGFB helps people, particularly women, with hair and makeup and skin care and scarves. Program volunteers go into hospitals to work directly with patients or host virtual workshops. Since its inception, LGFB has helped more than two million women, men and teens in more than 26 countries. According to Myers, LGFB volunteers help restore and rebuild patients’ confidence.“I have seen the work that they do firsthand, and I can tell you the people who do this work are well-meaning, they are selfless and 100% committed to the program’s laudable goals,” added Myers. “None of it would be possible without the commitment and contributions of our member companies—products, materials, finances. As I said, this is an industry that truly wants to make a difference in people’s lives.”
Science-Based Decisions
LGFB works because it’s a collaboration between volunteers, PCPC and marketers and suppliers. Myers pointed out that partnerships with related trade organizations, regulators, NGOs and other groups can propel the beauty industry, especially in the face of obstacles.
The Personal Care Products Council presented its 2024 Madam C.J. Walker Award for Excellence in Diversity, Equity and Inclusion (DEI) during the opening reception of the annual meeting. The award recognizes entrepreneurs and corporate executives in the beauty and personal care products industry who demonstrate an outstanding commitment to DEI through strong leadership and sustained efforts with a focus on workplace culture, program and policies, or through external engagement with consumers and communities. The entrepreneur recipient is Monique Rodriguez, founder and CEO of Mielle, the fastest growing Black-founded and woman-led, multicultural hair care brand. The corporate honoree is Michelle Wang Goodridge, US president of brand growth at Kenvue. |
“Misinformation and its viral effects represent perhaps the most daunting challenge for us, which is why it is imperative that we advocate aggressively for evidence-based public policies,” said Myers. “We firmly believe that safety decisions must be grounded in science, not fear mongering.”
The Ire of AI
These days, few words conjure up more fear than artificial intelligence (AI). Will it change the way we live? The way we work? And perhaps, most importantly, is it coming for our jobs? During the PCPC annual meeting Max Bennett told attendees that AI is going to change ecommerce forever, but not in ways people think. Bennett should know—he’s CEO and cofounder of Alby, an AI company based in New York City. Bennett also cofounded Bluecore, a company that uses AI to help brands personalize their marketing.“Conversational AI can do amazing things,” admitted Bennett. “But it still has two key limitations—it makes mistakes and is hard to teach.”
That said, for the first time, it is possible to use AI to anticipate customer questions. That has major implications for the personal care industry in that 39% of beauty shoppers say they want data derived from AI and 15% are already using it. Bennett pointed out there are two ways beauty companies can use AI. Internally, it can write copy—that must be checked to ensure for accuracy. Here, AI has the potential to make employees more productive. Externally, using AI involves more risk. It can be used for shopping assistants, summary reviews and frequently asked questions. But Bennett warned that Amazon’s ChatGPT-written reviews are getting flack because they are very negative.
“Shopping assistant is the Holy Grail,” he insisted. “It can answer long form questions and open a window to the consumer.”
At the same time, Bennett warned attendees that Big Tech companies don’t know what works in these shopping systems.
“Think of it like early steering systems for automobiles,” he suggested.
In those days, engineers used levers, a design derived from small boats. Tillers were easy to use for very slow speeds and lightweight vehicles, such as those with three wheels. The round steering wheel debuted in 1895.
MoCRA and More
If contending with AI isn’t enough, PCPC member companies must prepare for new US regulations. Specifically, the Modernization of Cosmetics Regulation Act (MoCRA), which requires cosmetics companies to register facilities and products with the US Food and Drug Administration by July 1, 2024. In December, FDA launched the Cosmetics Direct portal for companies to register facilities and list personal care products.Wade Ackerman, an attorney with Covington & Burling, gave attendees an update on MoCRA and how it will impact record-keeping. He noted that FDA has had the power to inspect facilities since 1938—MoCRA adds record-keeping requirements.
“Your internal procedures must account for this record-keeping,” explained Ackerman. “Your employees should understand what FDA has access to and what FDA must do to get access.”
MoCRA gives FDA access to adverse events and GMPs. FDA doesn’t gain access to sales, pricing and personnel data. MoCRA gives FDA the ability to issue mandatory recalls. To help its members understand the new regulations, PCPC held a webinar on MoCRA last month.
“There are no user fees in MoCRA, but we want FDA to have funds to implement MoCRA,” added Ackerman.
Just last month FDA requested $8 million in additional funding to support MoCRA implementation. In a statement, FDA said it will use the money to further develop a modernized cosmetics regulatory program and enhance the agency’s efforts to protect consumers and help ensure the safety of cosmetic products. Funds will be used for activities such as developing regulations and compliance policies; managing submission platforms associated with MoCRA provisions; reviewing MoCRA-required information submitted to the FDA for industry compliance; and hiring additional subject matter experts to manage critical projects, such as the assessments of the use of perfluoroalkyl and polyfluoroalkyl substances (PFAS) in cosmetic products.
Ackerman noted MoCRA preempts some activity at the state level, but states can still issue ingredient bans. California’s ban on 23 ingredients goes into effect this year and Washington passed a similar bill last year. Other states to watch, according to Ackerman, are New York and Vermont.