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Highlights from HBA: The Changing Face of Beauty Distribution

July 1, 2011April 27, 2018Alchimie Forever, All, Industry newsLeave a Comment

HBA is possibly my favorite beauty industry conference. I remember attending four or five years ago, and listening to Sarah Kugelman, Founder and CEO of Skyn Iceland, present her story on a panel about indie beauty brands. I decided I had to somehow find a way to be a speaker – I wanted to be just like her (funnily enough, we had coffee at the Javits at this year’s show, as we now often do, and I told her that story). For the past three years, I have been invited to speak and moderate various panels, which is both a pleasure and an honor.

The panel I moderated on Wednesday was possibly my favorite to date. It was a “Part 2” of a panel I moderated in 2010 on shifting trends in beauty distribution. Last year, that panel was composed of Shop NBC, Bloomingdale’s and bluemercury – I was moderating and presenting the brand’s perspective on the various channels (home shopping, department stores, independent beauty boutiques).

In this year’s panel on “The Changing Face of Beauty Distribution,” only “virtual” channels were represented: QVC, Hautelook, and Dermstore.com. Karen Doskow, Industry Manager, Consumer Products Practice, Kline & CO., set the stage for us by presenting some data on the personal care industry. Three key data points:

– The US personal care market reached $36.5 billion in 2010, surpassing pre-recession levels

– Industry growth bounced back after a dip in 2009, and was up 2.4% in 2010

– The direct sales channel (TV, internet, person-to-person sales) achieved a 5.2% CAGR and is the fastest growing channel over the past five years (in comparison, over the same persio, department store sales decreased 3.5%)

– Within the direct sales channel, the internet posted the highest CAGR, 26%, followed by TV shopping, 19.7%.

No need to further explain why the panel was composed of Allen Burke, Senior Advisor for Beauty for QVC, Paula Scandone, Vice President of Beauty, Hautelook, and David Olsen, Vice President of Business Development, Dermstore. As Allen Burke said in his opening comments, “a significant shift in beauty distribution is the fact that only virtual channels are represented here today.” Indeed…

Here are some highlights from questions I posed to the panelists:

The most significant shifts in beauty distribution in the last three years were identified as:

– Consolidation (including consolidation between bricks and mortar and internet businesses; think of Walgreens and Skinstore.com for example, or Nordstrom and Hautelook)

– The advent of mobile shopping; as Allen said, “today it seems almost old-fashioned to be shopping on your computer.”

– The rise of flash-sale sites such as Hautelook

New sampling business models have emerged, driven by Birchbox, which launched its curated and edited box of samples in September 2010.

– Both Paula and Allen agreed that this offers an opportunity to expand the reach of certain brands, without the need to internally handle shipping and handling. Indeed, QVC has now partnered with New Beauty on two of its “TestTube,” and plans on continuing this successful association.

– A slightly different model is Dermstore’s BeautyFix program, which provides consumers full-size products in a mystery box.

The next question centered on the integration of bricks and mortar channels and virtual channels. There was no true consensus, other than the agreement that the consumer is now shopping across all channels. Allen discussed QVC’s partnership with Sephora, and Paula presented the cross-marketing opportunities between Hautelook and its new parent, Nordstrom – in effect, leveraging different consumer bases, introducing Nordstrom consumers to Hautelook, and encouraging the Hautelook consumer to shop preferentially at Nordstrom.

From a brand perspective, I proposed that the two keys to a successful mixed distribution channel is strategy (for example, how do flash sales fit in to your mix, how many times per year, on which products, etc.) and honesty with your partners (let your spas know you are going to be on QVC ahead of time; let your retailers know when your products will be discounted on a flash sale site).

Most interestingly to me, we then discussed the key success factors for the various channels, which are so very different from the key success factors needed in the spa channel (think training, gratis for staff, professional-only products), or in retail (think GWPs, in-store support, ads).

For Dermstore, David identified the keys to success as a true strategic partnership with the brand, brand visibility, and sampling. For QVC, Allen suggested that innovation and the experience of the shopper are key: “It is not about a good demonstration, it is about the experience.” For Hautelook, Paula identified assortment, value, and brand recognition as the keys to success.

HBA is an international show, and TV and the internet are global. We thus had to touch on the three companies’ international plans and experiences. David mentioned that Dermstore used to own dermstore.ca, prior to selling the business to Rogers Communications. While the internet is indeed global, the rules and regulations affecting the sale of personal care products differ country by country, making internet sales abroad complicated. Paula spoke of foreign Hautelook-like companies, including VentePrivée, but suggested that given the young age of Hautelook (3 years old), her focus was still on the US. Allen spoke about QVC’s experience in Japan, Italy, Germany, and the UK. His conclusions were not far off from David’s. Indeed, while US brands tend to do fabulous on QVC UK, UK brands have not been successful on QVC US. Perhaps it is not just the regulatory framework that makes global beauty selling complicated, but also differences in beauty cultures and consumer preferences…

I left the most controversial question for last – how has discounting impacted the various channels? David explained that Dermstore, as a general policy, does not discount. However, the company finds other ways to compete, including free shipping and gift with purchases. Paula is all for discounting, after all, that is the founding principle of flash sale sites. She suggested however that her consumer, while enjoying the discounts, continues to shop at full price. From her perspective, discounting is here to stay, and is should be part of a brand’s marketing strategy (notice, again, the word strategy; think about when and how and why you discount, don’t just do it). Allen closed the discussion by stating that QVC does not offer free shipping because a consumer should understand and be ready to pay reasonable shipping fees for a quality product, and that QVC will not offer a brand at a price that is higher than it is commonly found in other channels.

As the session came to a close, we all agreed that we were all still friends, despite differing perspectives. We also all agreed that it is amazing how different the beauty distribution landscape looks today versus five or 10 years ago. And that is what makes our industry, and this panel, so interesting… I am already hoping for a shifting distribution, “Part 3,” at HBA 2012.

Bisnow Entrepreneurship Series

June 21, 2011April 27, 2018All, Business, TravelLeave a Comment

This morning, I woke up grumpy. Might have to do with the fact that I got home at 2:30 am, after three exhausting tradeshow days in Las Vegas and a flight that involved a very large man seated next to me (whose bulk kept overflowing in my seat) and a 2-year old across the aisle from me who had a 4 hour temper tantrum (equivalent of a lifetime dose of birth control). Oh, and the fact that I woke up at 6 am for a crazy day. When I am grumpy, only three things tend to be foolproof in helping my mood: red lipstick (check); a cute dress (check; and white in honor of the first day of summer); and inspiration from other entrepreneurs (check). I came so close to not attending the Bisnow Entrepreneur Series event this morning, for which I had a couple of weeks ago re-arranged some client meetings (which I never do), in order to sleep one additional hour. But I did go, and am so happy I did. Not only did I run into some of my favorite people in the DC entrepreneurship community, including Kate Palmer of Network for Teaching Entrepreneurship and Jeff Reid of Georgetown University, but I finally had the opportunity to hear and to meet a hero among us DC entrepreneurs (in particular among us Georgetown McDonough School of Business graduates), Michael Chasen of Blackboard. His presentation was more effective than an extra hour of sleep or four extra cups of coffee in terms of waking me up, and changing my mood.

For those of you who have met him, it will come as no surprise that I would describe him as handsome (he actually asked me put that in my blog, although I would have even if he hadn’t), charismatic, confident, funny, smart. He gave us the short story about how he started Blackboard (which today is a public company, has over $500M in revenues and over $100M in EBIDTA), and then shared some key lessons learned along the way.

Lesson #1: “Focus on the business, not on the office.” Work on the business model and forget about everything else, including a fancy corporate suite and expensive office chairs.

Lesson #2: “Networking is essential.” It’s all about who you know, who you know that knows someone who is the neighbor of the best friend of the wife of someone you really need to meet.

Lesson #3: “Constantly share your vision” (in a memorable and confident way). He told of introducing himself at a networking event (see lesson #2) as “Hi, I’m Michael, co-founder of Blackboard, an e-learning company, and we are very excited about our first deal with Microsoft.” (Their first deal being the purchase of Microsoft Office).

Lesson #4: “While you need to seek advice, you also need to recognize that you are the expert in your business.” Supplement your vision with what you learn from others. The operative word being “supplement” (ie not “replace”).

Lesson #5: “You should have a business model that makes money.” When Michael started, the trendy thing for software companies was to give their software away for free. He admitted to adding up zeros in all the columns of an Excel workbook, and concluding that it still amounted to zero.

During the Q&A session, a few additional lessons, or pieces of advice, emerged. Michael, as most successful entrepreneurs I have heard say, spoke about the need for passion for what you are doing. As entrepreneurs, we work harder and (for a long time although hopefully not forever) for less money than we would if working for someone else. Only true passion can get us through that. His is passion for education. He also talked about making mistakes everyday, and about the importance of not dwelling on these as negative experiences, but on learning from them, and most importantly, on incorporating them in your business strategy. He talked about his love of being a business based in downtown DC (I so relate to that). He talked about people who ask him “What do you do for fun” and him responding “My job is fun, my work is my hobby” (I so relate to that too).

The last audience question was something I had been wondering about since he started his presentation. How is it that he, Michael Chasen, the co-founder of Blackboard, is still the CEO? How has he been able to go from ideating the business to launching a startup to growing a small company to going through an IPO and to running a multi-hundred-million dollar business? Such a rare occurrence… With the matter-of-fact attitude he showed through the entire discussion “I’ve been successful by hitting our sales numbers every quarter.”

On that note, let me head back to the office and work on my own quarterly sales numbers. Eagerly, effectively, with a renewed sense of inspiration, and with no recollection whatsoever of the fat man, the screaming toddler, or my short night. Thank you Michael.

Grooming for our fathers

June 15, 2011April 27, 2018All, Beauty1 Comment

When people ask me why Alchimie Forever offers products for men only, I often answer “because my mother [the force behind our new product development] loves men and wanted to make them feel special.” In honor of Father’s day, and all the men in our lives, I thought it might be timely to write about men’s grooming, and our Alchimie Forever men’s products.

Despite what one might think, men spend a lot of time in the bathroom. As my Mom says, “they just close the door before they start looking at themselves in the mirror.” I can confirm both that my husband spends a lot of time grooming and that he always closes the door. While I don’t exactly know what happens behind closed doors, I know how good he looks when he gets out. Here are my favorite tips and products for men.

Soft feet. There is nothing less sexy to me than bad feet. Whether they are in bed next to me feeling rough against my skin or belong to a stranger in flip-flops I pass on the street. On that note, I think there is one less sexy thing – feet in Crocs. But that is a topic for another discussion…
Manicured hands. Assuming the man’s feet are in closed shoes, my eyes immediately go to the hands. Do they look powerful? Do they look strong yet soft? How would it feel to hold his hand? Are the nails too long? Are the nails bitten? What tales do any calluses tell? Of course, my Alchimie Forever 532nm antioxidant relief for the hands and feet is the best product to ensure both soft feet and soft hands.
No shaving bumps or post-shaving irritation. A red, angry neck and ingrown hairs do not make for a good first impression. The Grooming Lounge’s Beard Master shave oil can help. As can choosing a better razor, and never shaving against the grain. Finish with the Alchimie Forever Antioxidant skin repair gel and your skin will thank you.
Hair. Whether you have a little or a lot, embrace what you have and run with it. I love a shaved head. Michael Jordan and Bruce Willis made that sexy and manly many years ago. If you are blessed with a head of hair a la Pierce Brosnan, make sure the back of your neck always looks clean. I love salt and pepper hair… which my husband has. So refined and elegant. Much better than a bad color job. And I love the way his Aveda Men Pur-Formance shampoo and hair conditioner smell.
Also, hairs (notice the “s”). Whether you have a lot or a little was decided by Mother Nature. What you do with it is entirely up to you. Invest in trimmers. For ear hair. For nose hair. For chest hair. Invest in waxing services (don’t ask your wife to trim the hair on your back; value a bit of mystery in a relationship).

Happy Father’s day to all the most handsome Dads out there!

Mid-year goals evaluation

June 8, 2011April 27, 2018Alchimie Forever, All, My lifeLeave a Comment

I cannot believe that we are almost in July… and that half of the year is gone. On a six hour drive yesterday I mentally revisited my 2011 goals, both personal and professional, and realized there is much to do still. I thought by putting in writing what I have accomplished this year so far, and what I have yet to accomplish, by sharing this with you and with the Universe, I would hold myself more accountable and move forward with more purpose. Feel free to periodically ask me how I am doing on any of these goals… knowing you might be a great motivator!

Ada goals:

– Drink more water: done! I now carry around a water bottle everywhere I go.

– Read more: in process. Current book: Atlas Shrugged by Ayn Rand.

– Learn to be a good wife: hmm… not sure about this one. Need to ask my husband.

– Build my art collection: in process.

– Develop a better morning routine: not done. I still read emails on my phone before even opening both eyes up. Need to stop doing that and start my day in a different way. Thoughts?

– Unsubscribe from emails I don’t read: in process. Hopefully you are reading this one and won’t unsubscribe…

– Do more yoga: definitely need to work on this.

Alchimie goals:

– Consolidate our partnership with Universal Companies: in process (the six hour drive yesterday was Abingdon – Washington DC).

– Grow sales: in process; in my mind, sales are never high enough and never grow fast enough

– Reformulate our products without parabens: in process

– Improve our sampling program: done! As of next week, we will have beautiful paquette samples of five of our best-selling products! So excited…

– Continue to generate national, international, trade and online press mentions: in process. Would you like to write about us? Email me!

– Relaunch our website: done! Have a look…

– Do more with social media: in process. Are you a fan on Facebook? Do you follow us on Twitter? Have you seen our various YouTube videos?

– Improve our sustainability practices: in process. We are reducing, reusing, and recycling. Our new brochure is printed on paper from managed forests, with vegetable dyes. Our new samples are aluminum, not plastic. We are working with the Arbor Day Foundation and Casey Trees to plant trees throughout our community. And we are having fun doing it!

– Find someone to join our Board of Directors: in process. Interested? Please email me to apply!

Lessons From a High School Graduation

May 26, 2011April 27, 2018All, My life, TravelLeave a Comment

Two nights ago, I attended my husband’s son’s high school graduation in New Orleans. I guess I should say I attended my step-son’s graduation… It was a warm Louisiana evening, filled with proud parents, happy siblings, and excited graduates. I couldn’t help as I watched the ceremony, listened to the speeches, and enjoyed the music, thinking back to my own high school graduation.

What I remember most from my graduation (back in 1995… yikes!) is the overall theme of “yes you can.” Our speakers (whether students or guests) spoke of ambition, of endless possibilities, of dreams coming true, and of changing the world. That day, there was nothing I couldn’t do. No goal was too far out of reach. No plan was too ambitious. If I wanted to do it, I could, and I would. Watch me. While I still believe in that feeling, it has been informed by almost 20 years of life, which in my case has meant entrepreneurial highs and lows, personal love and loss. Today, I still know I can do anything I set my mind to, but I also know it will probably be hard.

I was surprised that that was indeed the theme of Parker’s graduation Commencement speaker. Anh “Joseph” Cao, former U.S. Representative for Louisiana’s 2^nd Congressional District (the first Vientamese-American elected to Congress, he served from 2009 to 2011) and a candidate for Attorney General of Louisiana, spoke of his life, of the lessons he learned along the way. He spoke of being born in Vietnam and leaving his home country at the early age of 8. He spoke of wanting to be a physicist, but then becoming a Catholic Priest. He spoke of realizing it was not his vocation and of becoming a lawyer. He spoke of losing everything during Hurricane Katrina, of having to rebuild everything. He spoke about life being filled with hope, but also filled with hardship. His three pieces of advice to the graduating class were:

– Be prudent

– Be disciplined

– Be persistent

I listened, and nodded in agreement. This theme re-emerged at the very end of the evening, when the Principal granted the graduates their diplomas, and ended the night by quoting Winston Churchill: “Never, never, never give up.”

While I couldn’t agree more with either the former Congressman, or the Principal (these are lessons and words I live by every day), I still somehow missed the innocent naiveté of the messages I heard at my own graduation. Then again, I thought to myself, we aren’t exactly in 1995… the messages I heard Tuesday night were a stark reminder of the “different reality” we live in today.

Sun, sunscreens, sunburns…

May 18, 2011April 27, 2018Alchimie Forever, All, BeautyLeave a Comment

The sun is (or at least should be!) shining, it’s that time of year. And May is Skin Cancer Awareness Month. All in all, it is time to review sun, UV, sunburns and sunscreens. Here are some tips to help you separate fact from fiction when it comes to this burning topic (no pun intended…).

Myth: I don’t need to wear sunscreen on a cloudy day.

Truth: Up to 85% of UV can penetrate light cloud cover

Myth: I have a tan, so I won’t burn.

Truth: Having a tan is only the equivalent of about SPF 4, and does not mean you won’t burn.

Myth: I am young, I don’t need to worry about skin cancer.

Truth: Melanoma (skin cancer) is the number one cancer seen in ages 25-29

Myth: I need more vitamin D so I shouldn’t wear sunscreen.

Truth: You only need about 10 minutes of sun exposure per day to get enough vitamin D for your wellbeing. (And remember, even with sunscreen on you will get sun exposure).

Myth: Getting just one sunburn won’t really harm my skin.

Truth: A single sunburn in childhood will increase the risk of melanoma. And it can take up to 5 years for the skin to fully recover from a single sunburn!

Myth: Tanning beds are sage.

Truth: UVs matter inside and out; indoor tanning may increase the chance of getting melanoma up to 75%

Myth: Sunscreen will block all UV

Truth: “Sunscreen is not enough” as said Dr. Karen Burke. Remember to layer your antioxidants under your sunscreen, so you have a second line of defense (try our Diode 1 + 2 serums for your face, and our Alexandrite gel for neck and bust for your body).

Other interesting facts about the sun and sunscreens…

UVA versus UVB:

UVA damage DNA and lead to skin cancer (damages not initially visible to the naked eye)
UVB lead to redness and ultimately wrinkles (the visible sunburn effects)

Chemical versus physical sunscreens:

Chemical sunscreens absorb the UV rays. These are typically lighter sunscreens.
Physical sunscreens (really known as sunblocks) reflect UV rays. Ingredients such as titanium dioxide and zinc oxide are used in physical sunscreens. The usual “thick, white, sticky” feel of sunscreens comes mostly from physical sunscreens.

Water-resistant versus waterproof sunscreens:

Water-resistant sunscreens maintain their SPF levels after 40 minutes of water exposure
Waterproof sunscreens maintain their SPF levels after 80 minutes of water exposure

The sun’s reflective powers are great:

17% on sand
80% on snow

If you want to learn more about the sunscreens I like, watch this week’s segment on Let’s Talk Live. And remember, no sun is safe sun. And you earn the skin you’re in!