What’s Next: Niche multicultural brands make inroads
BY Lonni Delane
In the race to win the business of millennial consumers, the personalized shopping experience is the name of the game. People of color continue to grow as a consumer group, and Cosmoprof has been an industry leader in recognizing and expanding the beauty services and offerings available to this demographic.
Daniela Ciocan, marketing director for Cosmoprof North America, introduced a special segment to the 2015 show called Tones of Beauty specifically to showcase up-and-coming niche multicultural brands. According to Ciocan, "there is a population shift whereby there is an increase in consumer demand seeking innovative, problem-solving solutions for their polyethnic needs. We recognized that no one was cohesively speaking to this segment within a trade show environment and felt it necessary to introduce Tones of Beauty.”
Ciocan needed someone with their finger on the pulse of the business of ethnic beauty to bring her vision for Tones of Beauty to the show floor, and she called on longtime colleague Corey Huggins whom she met during his time at Glossy Box. Huggins is the founder of love, Aunt Bonnie – a business dedicated to building a “beauty bridge” for brands seeking a connection to the black and brown market. It features a curated subscription box designed to bring unique, luxury ethnic beauty to the marketplace. Huggins had the savvy and foresight to build a comprehensive brand that didn’t stop at black hair care, but would span a range that included fragrance, skin care and color cosmetics.
Huggins filed through his lengthy contact list of ethnic beauty brands and cherry picked eleven to participate in the show. He looked for brands that had a story to tell as well as a great aesthetic and that came from a unique angle. For example, Lamik – Love and Makeup in Kindness – is an eco-chic line designed to simplify beauty for the average woman, while revealing her personal beauty. He also chose Design Essentials, a brand that has evolved over 25 years from hair relaxers to catering to the natural hair community.
The endeavor was a huge success and resulted in explosive growth for each of the participating brands. Tones of Beauty is even returning for the 2016 show. Huggins is excited about what has unfolded. “All of my brands, every single one got distribution. They all picked up additional press, partnerships, even investor money.”
A few of the success stories were:
- Earth’s Nectar – This skin and hair care line has partnered with Nordstrom and HauteLook.com, as well as expanded their presence at Sephora.
- CLIQUE by Roble – The showcase allowed them to cross over and speak to a wider audience. They have expanded to an international audience by partnering with the Luxess Group of Germany.
- My Skin – This brand has found new inroads to the industry, accessing key players from both blogging and retail stores.
Pfizer Consumer partners with Galvanize on OTC innovation incubator
SAN FRANCISCO – Galvanize and Pfizer Consumer Healthcare on Thursday announced a joint health and wellness innovation program that will enable up to 10 startup companies specializing in the development of potential solutions for improved sleep, stress management, energy, aging and nutrition to access Galvanize's network of technical talent and investors.
"We're excited to team up with a leader in healthcare such as Pfizer Consumer Healthcare to foster innovation in the health and tech industry," stated Jim Deters, Galvanize CEO. "This program will provide an amazing environment for healthcare startups to grow and reach their full potential, and is proof of Galvanize's ability to provide great technical talent and invaluable resources for founders."
"Developing new ways for consumers to improve their health and well-being remains a priority for Pfizer Consumer Healthcare," said Suneet Varma, president and general manager, Pfizer Consumer Healthcare. "Collaborating with new partners enables us to build on our own efforts to develop new, innovative ways for consumers to achieve better health and wellness by tapping into the creativity and thinking taking place all around us."
The first cohort of companies will be jointly selected by Galvanize and Pfizer Consumer Healthcare for a six-month program beginning on March 7, 2016, that will be housed at Galvanize's San Francisco campus. Companies interested in the program can apply now at galvanize.com/pfizer until Feb. 23, 2016.
During the course of the program, companies will gain access to all of Galvanize's membership programming and meet with the Galvanize team every week to connect with mentors, learn how to grow their business and get introductions to startup experts and investors within the broader Galvanize community. Additionally they'll be able to pitch their company's projects to students from Galvanize Full Stack and Galvanize Data Science programs – making it easier for them to get access to technical talent and take their business to the next level.
By teaming up with Pfizer Consumer Healthcare, and taking advantage of its global expertise in consumer health and wellness, participants in the program will have access to mentoring and insights from Pfizer Consumer Healthcare that will help them develop and grow their companies.
This is the latest in a string of collaborations for Galvanize with a number of large partners such as IBM, Silicon Valley Bank and Allstate to help founders and students reach their full potential by providing access to talent, resources and a massive startup network.
Mylan announces $9.9 billion Meda acquisition
HERTFORDSHIRE, England and PITTSBURGH — Mylan on Wednesday announced that it would be acquiring specialty pharmaceutical company Meda for about $9.9 billion, including Meda’s net debt. Both companies’ boards of directors have approved the acquisition offer, as have Meda’s two largest shareholders, Stena Sessan AB and Fidim SRL. The companies expect the deal to close in the third quarter of 2016, following regulatory approval.
The acquisition of Meda — whose business is divided 60%/40% between prescription and OTC, respectively — will grow Mylan’s business in several ways, not least of which will be the combined company’s portfolio of more than 2,000 products in branded, specialty, generic and OTC drugs, with access to more than 165 markets, the company said. In particular, the Meda acquisition will expand Mylan’s reach into such emerging markets as China and Russia while expanding its OTC offerings. Mylan expects that its OTC division at the close of the transaction will be worth about $1 billion.
“We have been very clear about our commitment to enter the OTC space and continue our expansion in emerging markets,” Mylan CEO Heather Bresch said. “Meda and Mylan also have an extremely complementary therapeutic presence and we see exciting opportunities across a number of strategically important categories, particularly allergy/respiratory, given the strength of our combined portfolio, the multitude of exciting launches we will have in the coming years, and the commercial strength of our combined business.”
This acquisition, Mylan said, will build on its recent purchase of Abbott Laboratories’ branded generics and specialty businesses outside the U.S. and will consolidate the EpiPen in Europe, the market where Mylan and Meda have worked together on the anaphylaxis treatment.
“The proposed transaction with Mylan is very compelling from a strategic standpoint and I believe Meda will be a strong partner for Mylan and will bring additional value to Mylan,” Meda CEO Dr. Jörg-Thomas Dierks said. “The two businesses are highly complementary, and the combined business will benefit from strong therapeutic presence in respiratory/allergy, dermatology and pain and inflammation, as well as enhancing our mass in Europe and US presence.”
Mylan expects the acquisition to be immediately accretive to earnings, increasing signiciantly after 2017. The company projects about $0.35 to $0.40 in accretions in 2017, which Mylan says indicates it is on track to realize a return of $6 in adjusted diluted earnings per share in 2017.
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