Acquiring Beauty – Future M&A Trends and Drivers Across the Personal Care Value Chain

With over 25 years of industry experience, Kline’s Eric Vogelsberg, Senior Vice President of the M&A and Corporate Development Practice, brings an authoritative and qualified perspective.
While 2011 ended in uncertainty, Eric sees the M&A environment as remaining fundamentally strong and fecund.
On April 18, 2012 at in-cosmetics Barcelona Eric will discuss the current M&A environment and key underlying trends and drivers and share his views on the impact on the personal value chain. He will examine how the continued consolidation and evolution of players will alter the structure of the business and the competitive landscape, and he will help you understand why personal care remains one of the hottest spaces in M&A.
Hear Eric speak on Future M&A Trends and Drivers Across the Personal Care Value Chain at in-cosmetics Barcelona, April 18, 2012 at 12:30PM in the Marketing Trends Theatre.

Skin Care: A Beauty Spot in Barcelona – Nikola Matic on the Specialty Actives Market

Kline’s Nikola Matic, drawing upon many years of extensive and international market-research, will be at in-cosmetics Barcelona on April 17, 2012 where he’ll share timely specialty actives insights and trends gleaned from Kline’s recently published report Specialty Actives in Personal Care 2011: Multi-Regional Market Analysis and Opportunities.

Within the specialty actives market, consumers are often the trend-setters. A growing consumer understanding of active ingredients in personal care products driven by extensive media coverage is compelling active ingredients manufacturers to innovate. Read more »

Personal Care Shopping: Beauty is Increasingly in the Eye of the Beholder of a Computer Mouse

The savvy shopper of today often doesn’t bother making a trip to a drug or department store when the products they want to buy are just a few clicks away.

Traffic? Change for a parking meter? Not issues when shopping’s effortlessly done from home or the office.

On January 31st at 1:00 PM US ET, catch a video recapitulation of a panel of leaders in the world of virtual beauty as they discuss beauty retail options outside the traditional bricks-and-mortar model in the Virtual Beauty Retail Webinar. Topics will include: what virtual retailers are looking for, different models for success, and how to capture the short attention span of the digital-age consumer.

Karen Doslow, Kline’s Consumer Products Practice Industry Manager will participate and discuss trends and insights gleaned from Kline & Company’s recently published report Beauty Marketing 2011: U.S. Promotional Activities and Strategies Assessment. She will also be available during the live questions-and-answers session after the webinar.

Virtual Beauty Retail: Video Recap from HBA, Tuesday, January 31st 1:00 PM US ET.

To register for this timely event, click here.

Global lubricant consumption – Where are we going?

2011 has ended, and we are back to doing what we were some three years ago: contemplating how bad the economy will get before it gets better. There is bad news everywhere. The list of critical countries in the euro-zone grows longer by the day. Greece, Ireland, Spain, and Portugal have been lately joined by Italy. France could be next. Outside the euro-zone, the United Kingdom, with its large financial industry and significant exports to the euro area, is being sucked into recession. The United States is also battling its own problems. High unemployment, low consumer confidence, high government debt, and political deadlock are all hampering recovery. Asian economies played an important role in pulling the world economy of out recession in 2009, but now they are not up to the task. Both China and India have battled high inflation. Interest rate hikes in response to the inflation and the high fuel prices have acted as a dampener on consumer demand. China needs to reorient its economy from export driven growth to domestic consumption driven growth. This is proving very difficult with the current level of interest rates. India has also seen a huge drop in its currency from INR 45.45 to USD 1.00 in December 2010 to INR 51.59 to USD 1.00 in December 2011. Given that India is dependent on oil imports, this is translating into higher fuel prices and still higher inflation. Read more »

The Specialty Trap – Managing Hybrid Commodity/Specialty Businesses

As elaborated in a recent Kline & Company article from the November 2011 edition of the Harvard Business Review Brazil, commodity and specialty businesses have disparate needs and markets, and consequently a danger lies in attempting to consolidate these and falling into what authors Jonathan Goldhill, Sergio Rebello and Sunanda Desai deem the ‘specialty trap’.

The article points out that because of the major differences in competitive dynamics between these two types of businesses, management’s focus is also very different. Managers in commodity driven businesses rightly focus on cost minimization: low cost raw materials, operational optimization and efficient channels to market. Conversely, managers in specialty businesses focus on understanding and responding to customer needs, product innovation and targeted marketing and sales. Read more »

L’Oréal Acquires Clarisonic – A Logical Choice

The recent news of L’Oréal’s acquisition of Pacific Bioscience Laboratories, Inc., the marketer of Clarisonic, comes as no surprise to us at Kline. L’Oréal has a long and solid history of growing its business by acquiring and developing dynamic brands… Matrix, Kiehl’s, Skinceuticals, and Essie, just to name a few. L’Oréal is a leader in the global and U.S. beauty market; it has deep pockets; and is quick to act on market trends. The firm is also reporting solid financial results against the backdrop of a tough economy, with its first three quarters of 2011 up 5.1% on a like-for-like basis. The acquisition will also help bolster L’Oréal’s position in skin care in the U.S., which is relatively weak compared to its global standing. Read more »

Kline wins Agrow Award for Best Supporting Role

Last night at the Marriott Hotel in London there was a prestigious awards ceremony to honor corporate and individual excellence in the crop protection and production industry. Kline won the 2011 Agrow Award for ‘best supporting role’, i.e. best service provider to the industry. Our submission is attached. We were in good company, with Dow Chemical winning the award for the Best Novel Agricultural Biotechnology category.

This is great recognition of our positioning and offerings both on the KMC and KMR sides of our business, with many people contributing to our success. Well done, everyone! We’re now going to figure out how to leverage this to maximize our exposure in the industry.

The Widening of the Panama Canal – The Potential Game Changer

Historically, the U.S. East Coast (Atlantic region), led by New York, dominated trading activities with other nations. This makes sense as most of the trade those days was between Europe and the United States. With the emergence of the Asia-Pacific region (first with Japan and now China and the East Asian Tigers) the U.S. West Coast (Pacific region), led by Los Angeles and Long Beach, grew in importance. This certainly had an impact on the local economy in terms of growth in related industries such as shipping, trucking, railroad, and other such industries which resulted in the growth of marine engine oils, railroad engine oils, and HDMOs. Read more »

Traditional Beauty Retailers: Take a lesson from alternate channels.

Alternate retail channels are white hot in the beauty business, having grown sales nearly $1 billion since 2005. Instead of trying to figure out how to compete, traditional bricks-and-mortar brands should take a page from the alternate channel playbook and leverage these new opportunities to reach customers at their new favorite place to shop: at home.

Sales of cosmetic and toiletry products through alternate channels have exploded over the last five years, fueling a 5.2% growth in direct sales that is outpacing the total market more than three-fold. While conventional person-to-person sales are declining gradually since 2005, multi-media driven channels have snapped up sales, with e-commerce growing by more than 26%, home shopping networks up nearly 20%, and infomercials posting just over 17% growth. This upward trend is expected to continue as mobile technologies, social media, and online deal-hunting converge to help bricks-and-mortar and direct sales-only retailers reach a wider, more diverse, and engaged audience. Read more »

Excipient Blends: the new frontier in oral pharmaceutical applications.

Excipients are the unsung heroes of the oral solid-dosage-form (OSDF) pharmaceutical industry, seemingly content to remain out of the limelight and let the active ingredients take center stage. Now, a new breed of specially formulated blends could be just what the doctor ordered to help drug makers optimize production and potentially reduce the cost of producing life-saving medications.

Most consumers are completely unaware of the critical role excipients play in delivering the beneficial medicines millions rely on to fight diseases and stay healthy. Yet it is the fillers, binders, disintegrants, lubricants, and coatings that ensure the accurate, timed delivery of drugs required to safely maintain optimum active ingredient levels in our system and give the OSDF drugs we take every day their palpable size, texture, and flavor. Read more »

Follow

Get every new post delivered to your Inbox.

Join 301 other followers