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I just want to let you know a few things today, mainly the sale of Cult Beauty to The Hut Group. It was sold for 275 million pounds. On the one hand, there is good news from a local brand, which has been grown locally rather than passed on to venture capitalists. Cult’s steady growth comes from the early discovery of the gaps in the Internet beauty market, and insisting on his beliefs, keeping up with the times, and keen to predict the success of new brands. Not so good is the way The Hut Group started to dominate the British beauty market. Slowly but surely, they have snapped up as many available e-commerce sites (HQHair, Mankind, Beautyexpert, Lookfantastic, Skinstore and now Cult) they own Perricone MK, Glossybox, ESPA, Illamasqua, Grow Gorgeous, Ameliorate, Christophe Robin and so on.

However, private label is not the whole picture. Hut Group acquired the manufacturer and formulator business Acheson & Acheson a few years ago, and recently acquired a US manufacturing base, which allows them to formulate formulas not only for their own brands, but also for other beauty brands (in fact, they have already Did this). That’s not all-Hut Group also provides platform hosting services for brands such as Elemis, PZ Cussons, Burt’s Bees, Revolution and By Terry (to name a few) under the TGH Ingenuity plan. Ingenuity is an e-commerce platform and fulfillment service that uses data and learning from the THG brand.

For beauty consumers, this may mean that the longer-term impact is similar to L’Oreal’s trickle-down effect, where the new formula starts with a premium brand, while the very similar formula (if not the same) based on the original formula enters the high street brand . This is great, if you realize it, if you only spent £50 on something that you later discovered for £10, with only a slight difference between the two formulas, that would be great. So, this is one thing. The next one is a very similar approach across e-commerce sites-hard marketing and the disappearance of brand personality. When THG buys a new brand, they always conduct PR and marketing internally, which leads to a very themed approach to consumer outreach. When everything from start to finish is concentrated in one place with the same marketing spirit, the opportunity for personalization disappears. In fact, the concept of public relations almost does not exist, because marketing is what they know. Only in the long run can we see whether these tentacles deep into the British beauty market will affect pricing-which is likely to be positive-because when you control so much from start to finish, the world is beautiful your oysters. I don’t know what this means for small brands trying to enter the beauty world, but I’m not sure if this will make things easier (although like other large beauty companies, they are likely to have an incubator program).

What I like about this transaction is that it is time we are no longer dominated by the three giants-L’Oréal, LVMH and ELC-but I still worry that our beauty landscape will be formed entirely by one company.

Another not-so-noticeable but still interesting news is the sale of Emma Hardy to Creighton. Creightons has established its own brands for commercial streets and supermarkets, such as No More Frizz and Argan Body. These brands are similar to existing popular brands but without price tags. Therefore, Emma Hardie is a major turning point for them-this is a great brand, shaped into a commercial form by Robert and Jane Foulston. Emma Hardie is rooted in self-care and self-healing, so they need to pay attention to maintaining their personality and solving the problems of existing audiences instead of trying to immediately push it in a new direction. I am curious what will happen!

Transparency disclosure

Unless otherwise stated, all products are sent to me as samples from brands and agents. You can use affiliate links. Posts are not affiliate driven.



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