ISSUE #7APRIL 10, 2020

A Publication of WWD

Home Sweet HomeDespite the severity of the coronavirus crisis, there are some bright spots

— the home fragrance sector being one of them. Sales in core categories like candles are doubling for many brands. For more, see pages 9 and 10.

Plus: MAC’s Drew Elliott, the growth of the coronavirus-beard contingent and the latest on e-commerce sales. COLLAGE BY ALEX BANDONI Im

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Beauty Bulletin

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APRIL 10, 2020

THE BUZZ

¬ A coalition of top beauty and wellness founders have banded together to form BeautyUnited to support health-care workers during the COVID-19 pandemic.

The group includes Hollywood royalty (Gwyneth Paltrow, Victoria Beckham, Drew Barrymore), influencers (Marianna Hewitt, Lauren Gores and Huda and Mona Kattan) and entrepreneurs including Gregg Renfrew, Barbara Sturm, Jerrod Blandino and Jeremy Johnson and Zanna and Mazdack Rassi, and is being led by Beautycon ceo and founder Moj Mahdara.The group is focused on raising $10 million for Frontline Responders Fund, which transports life-saving medical supplies from manufacturers directly to communities that

need them most. More than 45 of the participating brands are donating personal-care supplies to frontline health-care workers, starting with those at the Jacob K. Javits Center in New York. In addition, the coalition created a video produced by Milk Studios to further drive awareness and raise funds. — J.M.

¬ Celebrity makeup artist and entrepreneur Jillian Dempsey is jumping into tech (beyond her gold vibrating face bars, that is). Dempsey has launched Fyfe Beauty, a shoppable, subscription-based app available now on Apple’s app store. The app is available for a $5.99 monthly subscription fee, and comes with a variety of exclusive content, including videos and look tutorials. Videos feature a click-and-buy feature, allowing consumers

to purchase products from her eponymous makeup line. Dempsey, who is equally loved by fashion and Hollywood insiders, was an early proponent of natural formulations, and more recently, introduced a vibrating gold facial massage bar that literally had the style set buzzing. For the app, Dempsey joined forces with Perfect Corp., best known for its YouCam app that enables users to try on makeup virtually. —James Manso

Jillian Dempsey Jumps Into Tech

All Together Now

Beauty execs banding together .

TikTok twin-fluencers are causing

beauty buzz.

Shanae and Renae, aka the Nel

Twins, recently brought in their 20th

birthday by launching Gloss Twins,

a Gen Z beauty brand. Gloss Twins

debuts with the “Nel Gel” collection,

a line of three lip glosses priced just

under $12 on the brand's web site.

The Nel Twins are the first TikTok

beauty influencers to launch a line

of their own — during a pandemic,

no less. The pair plans to livestream

lab sessions over the next few weeks

and has been gifting the products

to fellow influencers on YouTube,

Snapchat and TikTok for review.

A combination of its algorithm

and lack of #SponCon saturation has

made TikTok an effective marketing

tool for a growing number of beauty

brands. Clean skin-care brand Truly

saw two of its products — a butt

polish and breast polish — sell out at

Ulta after amassing 20 million TikTok

views over the past couple of weeks.

Elsewhere on the Internet, NYX

Cosmetics is hosting a virtual music

festival. Jessie Reyez, Kim Petras

and Princess Nokia will livestream

performances on NYX's Instagram

throughout the weekend of April 10.

“During these unprecedented

times, we have seen an enormous

rally of human connection all over

the world, and this has truly inspired

us to take a closer look at how we

engage with our audience,” said

Stephanie Binette, general manager,

NYX Professional Makeup U.S.A.

“We want to bring an innovative,

digital experience that encourages

our community to come together in

a unique and exciting way.”

The Thread: The First TikTok Beauty Influencer Line Is Here Elsewhere on the Internet, Kim Petras will perform at NYX Cosmetics' virtual music festival. BY ALEXA TIETJEN

Shanae and Renae, known as the Nel Twins, have 1.2 million followers on TikTok.

Product Love The most engaging skin-care and makeup items on social media for March.

CHERRYPICK IS a social media analytics firm that measures product engagement at the stockkeeping-unit level. Here, the top items for March. Skin care resonated deeply at a time when consumers were house-bound, particularly masks, for both face and lips. Overall, engagement in the category was up 10 percent. Makeup, was down, losing 23 percent.

1. colourpop cosmetics Lux Gloss

2. huda beauty Pastel Obsessions Eyeshadow

Palette

3. morphe The James Charles Palette

4. urban decay All Night Long Lasting Makeup Spray

5. benefit cosmetics Brow Styler Eyebrow Pencil and

Powder Duo

6. fenty beauty by rihanna Gloss Bomb

7. jeffree star cosmetics Velour Liquid Lipstick

8. ysl beauté Rouge Volupte Shine Oil-In-Stick

9. dior makeup DiorSkin Forever UnderCover

Concealer

10. charlotte tilbury Luxury Palette

MAKEUP

1. tarte Jelly Glaze Anytime Lip Mask

2. wishful Yo Glow Enzyme Scrub

3. caudalie Purifying Mask

4. farmacy Very Cherry Clean

5. fourth ray Beauty Soak It Up Hydrating

Hyaluronic Mask

6.charlotte tilbury Magic Cream

7. colourpop cosmetics Colourpop x Mulan Brave Lip Mask

8. farsali Rose Gold Elixir

9. murad Vita-C Glycolic Brightening Serum

10. ole henriksen Banana Bright Vitamin C Serum

SKIN CARE

3

APRIL 10, 2020

NEWS FEED

ZOOM, SKYPE, GOOGLE

HANGOUTS: Beauty brands are

using all of the tools available to

keep communication current during

the coronavirus.

Clinique was planning to move to

a new floor in its Manhattan offices

when the coronavirus struck the city,

prompting the company to require

its 300 New York City employees to

work from home. Employees have

been using Skype, Zoom and Teams

to communicate, according to Jane

Lauder, Clinique’s global brand

president, and two weeks ago, the

company held a virtual town hall.

“We repurposed the town hall to

talk about what’s going on today,”

Lauder said. “I asked people to send

in pictures of things they’re grateful

for to remind ourselves that there’s a

lot of great things out there. Health

of our employees and community

comes first, so we talked through

that and all of the tools and ways

we can support everyone during this

time. Then, I wanted our teams to

talk about some of the changes and

successes they’ve [seen] to pivot to

how we speak to our customers and

how we engage.”

The concept of working from home

is more familiar to some than others.

Deepica Mutyala, founder and chief

executive officer of online community

and cosmetics brand Live Tinted,

began her entrepreneurial journey as

an influencer working from home.

“Most influencers start out that

way,” Mutyala said. “After launching

Live Tinted, the first year, we

were working out of my garage.”

Live Tinted now has five full-time

employees.

Charlotte Cho, founder of skin-

care company Then I Met You and

chief curator of Soko Glam, said

she felt somewhat “prepared for

what was to come” to the U.S. after

witnessing the coronavirus' impact

on her eight-member team in South

Korea. Now, her U.S. team of 32 is

using the same tools, i.e. Slack and

Google Hangouts, it normally would

in-office, but from home.

Managers are upholding their

previously scheduled weekly and

monthly one-one-ones with direct

reports over Google Hangouts, said

Cho, and communication between

the ceo, Cho's husband Dave, and the

staff is now more frequent.

“During this uncertain time,

you have to be continuously

communicating with the whole

company and making sure there’s

company-wide meetings regularly,

more often than before,” Cho said.

“As you see news coming out about

companies shifting, furloughing,

layoffs, there’s heightened anxiety.”

At Glow Recipe, the 23-person

team has assembled a “buddy

system,” pairing individuals from

different departments, said Sarah

Lee, cofounder and co-ceo. The

pairings, she said, promote one-

on-one interactions, allowing team

members to get to know one another

better through video chat.

“We are helping all departments

work collaboratively with better

understanding of each other,” Lee

said. “It’s important to support one

another and work closely during

this time.”

The desire to preserve a sense

of workplace culture amid the

coronavirus presents a sort of

paradox. Companies are intentionally

increasing communication, while

simultaneously advising employees

to unplug more frequently. La Mer,

Ouai and Beauty Bio are among

those implementing mandatory

breaks mid-workday.

“We have set definite parameters

around meeting hours to encourage

our teams to take breaks, spend

time with family, eat meals, exercise

or wind down, including a brand-

mandated, daily one-hour lunch

break,” said Sandra Main, global

brand president of La Mer and

Bobbi Brown.

Hannah Beals, vice president

of brand marketing at Ouai, said

the company has instilled a daily,

mandatory noon to 2 p.m. break to

“preserve our sanity and team energy.”

“It's less hours than we normally

work, but we have no meetings

during that time company-wide,”

Beals said. “This is our time to go

outside, recharge.”

Jamie O'Banion, founder and

ceo of BeautyBio, has mandated a

30-minute period of “zero screen

time” every afternoon.

“There are these blurred lines

right now, where there’s no clear

delineation between when your work

day starts and stops because it’s all

happening from the same place,”

O'Banion said. “The flip side of lack

of productivity can be where you’re

working too much, you’re in front of

the screen Zoom call after Zoom call.”

O'Banion is also keen on

keeping work culture traditions,

such as birthday and anniversary

celebrations, and cultivating visual

connection among team members.

“We’re social distancing, but you

have to caution against emotional

distancing,” she said. Employees

are encouraged to participate in

something called Monday Masking,

where they join team video

conference calls wearing eye gels,

sheet masks, hair masks and the

like. One team member's pet pig

made an appearance. O'Banion has

also set up a Slack channel meant to

simulate morning coffee time, where

employees can chat before officially

starting the work day.

For some brands, it's a matter

of acclimating to the coronavirus'

new norm. But for others, especially

those that haven't launched yet, the

guidelines are more vague.

Rare Beauty, Selena Gomez's

forthcoming cosmetics brand, is

taking steps to communicate both

internally among team members and

externally with potential customers.

A few weeks ago, the company

hosted a Zoom call with 15 people —

five Rare Beauty employees and 10 of

its Instagram followers — to initiate

interaction between the brand and

its following, said Katie Welch, chief

marketing officer.

“While we can’t meet our

community in person yet, we wanted

to start forging strong relationships

with people across the country,”

Welch said. “We haven’t been live-

streaming or broadcasting these

calls, but we decided to connect

with people in our community at

random. We invited them to a Zoom

call where they could meet different

members of the Rare Beauty team.

It was less about meeting us and

the brand but more about how can

we in this time of loneliness create

connection and have our community,

which is so strong and positive

online, meet one another. What a

time to be making new connections

that are meaningful.”

How Beauty Brands Are Adapting to the New WFH Norm Clinique, Glow Recipe, La Mer, Ouai and more beauty companies are implementing various strategies to preserve workplace culture and structure. BY ALEXA TIETJEN

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Glow Recipe has paired team members from different departments to promote one-on-one interactions during the coronavirus.

“There are these blurred lines right now, where there’s

no clear delineation between when your work day starts and stops because it’s all happening from

the same place.” —jamie o'banion, beautybio

4

APRIL 10, 2020

NEWS FEED

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WHILE THE CORONAVIRUS

pandemic has shut down much

of the world, it hasn't stopped

the growth of gray roots and

other beauty inconveniences. And

though far from a true crisis in this

situation, DIY beauty is experiencing

a surge, as consumers look for

at-home hacks for monthly beauty

maintenance like hair color, waxing,

Botox and the like.

Take hair color, which is up 66

percent year-over-year, per the NPD

group. Madison Reed, a direct-to-

consumer color brand which has 15

salons around the country, has seen

a spike in new customers since the

COVID-19 closures. A spokesperson

said that sales to new customers

were up twelvefold last week. “We

have seen women who have never

colored their hair at home turn to us

now, and we’re doing everything we

can to try to make it easy for them,”

the spokesperson said. “These times

are anxious enough.”

To meet the demand, Madison

Reed has tapped its in-salon

colorists to assist on the digital

customer service team, which now

numbers 115, up from its original 30. 

Josh Wood, the U.K.-based colorist

and Redken’s Global Color Creative

Director who launched his eponymous

hair color and care line in the United

Kingdom in 2018, has noticed a similar

uptick in sales and engagement. 

To keep up with the demand, Wood

has expanded his one-on-one color

consultant team from three to nine

people, and has moved his plans to

launch in the U.S. to deal with the

influx of North American clients, who

can now only shop on joshwoodcolour.

com. While he was originally planning

on launching in the U.S. in the next

12 months, he is now actively seeking

distributors to expedite the timeline.

“We have to address the amount of

inbound we’re getting from North

America,” Wood said.

DpHue is among the hair-care

brands seeing a spike. The brand’s

president and chief operating officer,

Martin Okner, said he’s seeing sales

above the 500 percent increase his

team has tracked in the category.

“We’re cautiously optimistic that this

period of time is going to become

more of a trend,” he said. “It’s

probably a little too early yet, to call

this trend sustainable.”

A different type of hair

maintenance — wax kits — has

also boomed. Flamingo, another

DTC brand which sells razors and

at-home waxing kits, had its biggest

day ever since its launch on March

29. Both the brand’s face and body

waxing kits are up 311 percent, when

comparing March’s first week to

its last. Flamingo is also trending

25 percent above forecast, and saw

products like its Ingrown Spot

Treatment sell out online.

Facial devices and skin care,

specifically those that can mimic

the effects of Botox and other in-

office dermatological treatments,

have also seen a dramatic increase.

Peace Out, for example, saw sales of

its microneedle facial patches with

active ingredients like retinol jump

300 percent in the past weeks. 

NuFace, which makes microcurrent

devices for the face and body, has also

reported a sharp increase in sales.

Tera Peterson, chief executive officer,

says the decrease in its professional

channel (roughly 2,500 spas in the

U.S. use and sell NuFace) are being

compensated for by online sales

as the company explores affiliate

programs with its professional

partners. Sales on body device are up

200 percent, sales of skin care have

jumped 71 percent, and sales on its

own dot-com, mynuface.com, have

risen  90 percent.

Even with brick-and-mortar store

closures, Peterson reported a hearty

boost across its retail distribution;

nordstrom.com, for example, posed

a 300 percent increase with NuFace.

“We’re attributing a lot of that to

just how we’ve pivoted in the past

month,” Peterson said, playing to

the brand’s increased social strategy.

“How we pivot now is going to form

the future of NuFace.” 

Melanie Simon, aesthetician and

founder of ZIIP Beauty has seen

a spike in demand for her ZIIP

microcurrent device. “We’re seeing

a 350 percent growth in sales in

this period of time compared to

last year, and people are at home

and want an approximation of what

you get in a professional setting,”

her cofounder, David Mason,

said, despite supply chain issues

with manufacturers following the

COVID-19-induced closures.

While others in the industry

express concern that the buying has

to stop, Simon herself thinks the

momentum for ZIIP is here to stay.

“We’ve never been big marketers

or advertisers, we’ve always been a

word-of-mouth product, and as more

people get that instant gratification,

that will keep moving,” she said.

The New DIY: At-Home Treatments Boom

At-home alternatives to beauty services, treatments and procedures are experiencing double-digit growth. BY JAMES MANSO

HIGH-TECH AT HOME

DIY goes high-tech with beauty machines. BY JENNIFER WEIL

DUOLABDuolab is a machine that makes personalized, preservative-free skin care using a range of capsules and a diagnostic tool. It’s from a

L’Occitane Group start-up.

HYLABWith HyLab, by Romy, people can choose their base and encapsulated active ingredients — with the help of an app — to make more than 1,000 different skin-care

combinations.

SCENT CREATORScent Creator is a speedy app-connected device allowing people to concoct their own perfumes. It’s from the bespoke beauty brand Noustique, born from a joint venture between Puig and BSH

Hausgeräte GmbH.

BEAUTYMIXBeautyMix is a blender coming with recipes to create natural face-care products, hygiene products, hair care and makeup.

Flamingo, a DTC brand focusing on wax kits and razors, is trending 25

percent above forecast.

While some are taking a grassroots approach to beauty, whipping up concoctions in the privacy of their own homes during the crisis, there’s a high-tech faction, too. Such folk aren’t taking out their mixing bowls, avocado and honey to whisk together a mask the old-fashion way. Rather, they are turning to machines that create made-to-measure beauty products and fragrances.

Here’s a selection of some recent gizmos coming out of Europe.

Experience 48-HOUR sweat and odor protection, crafted with pure essential oils. Free of parabens and dyes.

NEW

ESSENTIAL LUXURY.

Camilla Mendes

6

APRIL 10, 2020

NEWS FEED

FORMER L’ORÉAL USA

executive Joseph J. Campinell passed

away on Saturday. The cause was

complications from the coronavirus.

He was 73 years old.

Campinell retired as president of

L’Oréal USA’s Consumer Products

Division in 2011. He spent 25 years

at the company, and is credited with

helping to establish brands such as

L’Oréal Paris, Maybelline New York,

Garnier and SoftSheen Carson into

leading players.

He joined in 1986 as vice president of

marketing for hair care and hair color,

and quickly rose through the ranks. By

2002, he was in charge of the Consumer

Products Division, which then consisted

of L’Oréal Paris, Maybelline and

SoftSheen Carson. Under his watch,

L’Oréal Paris became the number-one

beauty brand in the U.S.

“Joe Campinell was a beloved

member of the L’Oréal community and

one of the great architects of L’Oréal

USA,” said Frédéric Rozé, executive

vice president of L’Oréal Americas.

“A natural-vborn leader, Joe took the

Consumer Products Division to new

heights during his 25-year career at

L’Oréal and made it a market leader

in almost every category. As we think

of Joe today, we can remember the

inspiring leader so thrilled with the

hard-earned success of the business

and so proud of his teams. On this sad

day, we share our gratitude for the time

spent with Joe and for the powerful

legacy he left behind and express our

deepest sympathies to his family.”

Despite his success across all

categories, Campinell said at the

time of his retirement that one of

his proudest business moments was

propelling L’Oréal to the top spot

in hair color, ahead of then-market

leader Clairol, which was owned by

Procter & Gamble at the time. When

he joined the company, L’Oréal had

a 26 percent market share of the

market, versus Clairol at 56 percent.

“I was in Paris in a meeting with

[former L’Oréal chairman] Lindsay

Owen-Jones and we were told we

just passed that other competitor,” he

said. “The ride was unbelievable and

it was a big deal. Those moments are

very special when you get that info.”

He also talked about the

importance of leaving a legacy, but

not in the typical sense. “In the end,

you have to ask if you had something

to do with leaving good people to

run the company well? “There was a

time here when people [here] were

shaky about the business and I said if

we can do half as good as the people

before us, we will do good. We grew

in the double digits a dozen years in

a row,” Campinell told WWD.

Campinell engendered fierce loyalty

in his team, including protégés like

Carol Hamilton, now group president

of acquisitions; David Greenberg,

who today heads up the Professional

Products Division, and Karen Fondu,

who retired as president of L’Oréal

Paris USA in 2016.

“Everyone talks about his

personality, but it’s important to

know he was the major foundation

of building the L’Oréal Paris brand,”

Hamilton told WWD at the time of

Campinell’s retirement. “It was a

niche brand and now it’s the number

one beauty brand in the world.”

Hamilton worked closely with

Campinell, and noted that the

longevity of the team he put together

was part of what made the company

so successful. “We were fixated on

the long-term business, and talking

about where we wanted the business

to be five years down the line,” she

said. “When we started, we were the

challenger — the only business we

had was hair color. Cosmetics had

just started and was tiny at about $5

million and there was no skin care.”

She also lauded Campinell’s ability

to bridge the gap between French

and American working styles, noting

that he was able to bring the two

sides of the company closer together.

“Before Joe came, we were working

in silos, but Joe gained the trust of

management in Paris and management

in the U.S., and helped formulate a real

way of working between the two sides.

He always found the common ground

to enable the teams to find the right

solution for the business.”

Campinell is survived by his

wife, Mary; daughter, Melissa Frey;

two sons, Eric and Mark, and 10

grandchildren. A service celebrating

Campinell’s life will be held in the fall.

Joseph Campinell, Former L'Oréal USA Exec, Dead at 73 Campinell is credited with helping to drive L'Oréal to a leading position in the U.S. BY JENNY B. FINE

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FOLLOWING SALON AND spa

closures and the mass of unpaid beauty

service providers, beauty brands are

compensating by freezing outstanding

credit payments and donating to

funds aimed at unemployed or unpaid

service providers.

Leading the charge is L’Oréal

USA. Salon and stylist customers

of L’Oréal’s professional division

with an outstanding credit on their

account are having their payments

frozen until their businesses are

able to reopen. L’Oréal USA has also

extended points set to expire in April

from its loyalty program, LEVEL

Loyalty Rewards, to the end of May.

This comes in tandem with the firm's

$200,000 donation to the Professional

Beauty Association’s COVID-19 Relief

Fund, giving short-term relief for

necessities to salon workers and service

providers. Other donors to the fund

include Kao, Living Proof, Moroccanoil,

Priori Skincare and Davines.

Hair care brand R+Co is also helping

its salon clients with an affiliate

program enabling salons and stylists

selling R+Co products to their clients

through a link to earn a 40 percent

commission on the sales. It is also

accelerating their payments to reach

professional clients every Friday. The

goal for March, for example, was to pay

out $500,000 in salon commissions.

DpHue has also found success

with its affiliate program. Martin

Okner, president and chief operating

officer, said that there were 3,000

sign-ups for the program in March,

wherein professional clients make a

50 percent commission for purchases.

The salon professional administers

the transaction, while DpHue ships

the product to the consumer directly

to avoid burdening the mediator with

shipping charges. This is an increase

from DpHue’s previous 35 percent

commission rate, and the commission

is deposited directly to the affiliate’s

PayPal account every two weeks.

Okner underscored the importance

of helping hair salons and small

businesses as unemployment

numbers reach record highs. “There

are probably about 3 million stylists

that aren’t able to work,” he said.

“In terms of market penetration and

getting these stylists to make money,

we’ve got a long way to go.”

How Beauty Brands Are Directly Supporting Service Workers Firms are freezing salon payments and jumpstarting affiliate programs until their businesses are permitted to reopen. BY JAMES MANSO

7

APRIL 10, 2020

NEWS FEED

AS PEOPLE AROUND the world

continue to acclimate to quarantine,

many men are turning to new

grooming routines to experiment with

their appearance and pass the time.

No one could have predicted or

prepared for how long mandated

lockdowns would last given these

unprecedented times. As the days

progressed, grooming practices

maintained normalcy, but over time

and with barber shop closures, men

have become lax about their grooming

routines with many growing what is

being dubbed as the "corona-beard."

The corona-beard is exactly how

it sounds. Men are growing their

facial hair out during the lockdown,

and donning everything from Tony

Stark-esque goatees to beards to

complement their moustaches,

wide sideburns, or "muttonchops,"

or letting their beards get long like

NBA All-Star James Harden.

“A lot of guys are taking the

opportunity to get creative,” said

Devon Zdatny, chief executive officer

of First & First Consulting. “The

motivation fundamentally starts with

‘What’s the point?’ and evolves into,

‘Why don’t I try this?’”

Zdatny found that one in four men

in America are growing out their

facial hair, and one in three men who

had stubble are growing their facial

hair longer. She added that the men

in particular who have “taken the

time to be a bit lazy,” range in age

from 25 to 44, are mostly married

or in serious relationships and have

high-paying, manager-level positions

in client-facing jobs.

Oars + Alps ceo and cofounder

Mia Duchnowski also noticed

an increase in men’s facial hair

saying that customers don’t feel

motivated to maintain their facial

hair. “From what we're hearing on

social and through our customer

service team, there is no pressure to

look completely put together,” said

Duchnowski. “Many say that Zoom

isn't HD or like real life, so you can

get away with an unkempt beard.”

Walker & Company brands vice

president of marketing Tia Cummings

said Bevel customers have been sharing

photos and stories about growing their

facial hair. “Now that they’re stuck in

the house, they don’t feel the pressure

to shave every day," she said. "Maybe

they’ve always wanted to grow a beard,

but didn’t want to go through the

patchy phase in public.”

Facial hair maintenance was

actually in jeopardy at the beginning

of the coronavirus. A 2017 infographic

from the Centers for Disease Control

about facial hair styles that are most

suitable for wearing a respirator made

its rounds in late February 2020, with

many media outlets reporting that

shaving is recommended for all men.

The CDC followed saying that the

graphic is only for those who wear

respirators for protection at work

and that it doesn’t recommend men

outside of the workplace shave their

facial hair.

Still, some guys are continuing

to shave. Zdatny said some just

can’t handle maintaining a beard,

while others are influenced by their

significant other. First & First’s Social

Insights report found that men “have

gravitated towards extreme ends of the

facial hair spectrum.” This bodes well

for grooming brands offering products

for shaving or facial hair maintenance.

“We're seeing significant spikes

in search and demand for home

grooming products — especially

stylers, trimmers, IPL products,”

said Ahmed Rizk, spokesperson for

Gillette and The Art of Shaving.

Cummings said that the Bevel beard

trimmer, beard balm and beard oil

“have been selling strongly,” and the

trimmer, shave system and balm in

particular have “grown in popularity.”

Oars + Alps beard oils sales have

seen “a 50 percent increase week over

week” from the end of January to this

week. Maapilim founder Jonathan

Keren said their beard wash and beard

softener are trending up and the under

beard serum that launched in March

“has shown really nice sales,” with

beard product sales up 45 percent.

Scotch Porter founder Calvin

Quallis said that customers have

historically purchased two products

at a time, but are now buying the

full beard product collection called

the Superior Collection that includes

a hydrating hair wash, nourish and

repair conditioner, smoothing balm,

leave-in conditioner and serum.

“Growing a beard is a personal

extension of men’s style and who

they are,” said Quallis. “The guys

with healthy-looking beards take a

lot of time to take care of it. Even

during times like these because they

care so much about it.”

While brands are experiencing

an increase in sales for beard

maintenance products, Fulton

& Roark has seen a 121 percent

increase in Shave Cream sales. “Our

customers are spending lots of time

on video conference calls, which

means that not only are other people

looking at your face, but you actually

have to spend time staring at your

own face, too,” cofounder Kevin

Keller said. “In talking with some of

our barber partners, it sounds like

guys who used to get shaves at the

shop are invested in trying to up

their shaving games. I wouldn’t be

surprised if a higher level of interest

in getting the best possible shave

persists after this is all over.”

But what impact will the

coronavirus have on grooming when

the lockdowns are over?

Quallis predicts that men will keep

up with their grooming routines, but

will be more price-conscious, opting

for a less-expensive shampoo or get

a haircut from a barber charging less

money. “Grooming and the way we

present ourselves and how we value

outward appearance will continue

to be important,” he said. “The art

and process of grooming lends itself

to the way we feel. We want to feel

good. The importance of self-care

hasn’t become less important. There

are just different ways to do it.”

He also believes that the businesses

that will survive this lockdown are

going to think of ways to add value to

customers lives unselfishly, citing as

examples Scotch Porter’s Instagram

Live workout, grooming and cooking

shows, The Art of Shaving’s virtual

barber shop on Instagram, and

Fulton & Roark’s social media series

which gives a gift card to someone

helping people on the front lines.

Duchnowski mentioned the

potential to expand into new

categories. “We previously strayed

away from using alcohol as an

ingredient,” she said. “However

customers are looking for options

when it comes to hand sanitation.

Men are focusing more on hygiene

and self-care, less on luxury and feel-

good products. This is a very different

shift and making us think differently.”

Zdatny, however, believes the

corona-beard phenomenon will not

live on when the lockdowns are over.

“I don’t expect our corona-beard bros

to keep their facial hair,” she said.

“We expect the workplace to change,

but we don’t expect private equity

and law firms to embrace facial hair

as the new norm at such scale. In

terms of what will happen, as we

come out of lockdown, there will be a

big decline in the beard trend. We’re

going to see a trend with hygiene.”

The Corona-Beard: Men's New Quarantine Hobby Brands are benefiting from men growing their facial hair experimenting with new looks while on lockdown, but will the new hobby remain? BY OBI ANYANWU

Men are getting creative with their grooming

during the crisis.

8

APRIL 10, 2020

WEEKLY ROUNDUP

LAUDER ENHANCES LIQUIDITY¬ The Estée Lauder

Cos. Inc. has borrowed $1.3 billion on its $1.5

billion revolving credit facility as it looks to

“enhance its financial flexibility and liquidity”

during the ongoing coronavirus pandemic.

The beauty company already had $200

million outstanding on the loan. Lauder has also suspended purchases of Class A common stock, and

says it believes it now has “sufficient liquidity”

in order to operate during COVID-19.

Lauder is still up and running, with stores

reopening in Asia being a bright spot,

but things are different now, according to

their filing with the U.S. Securities and

Exchange Commission on Tuesday. Lauder

has modified business practices and has

seen many of its retail partners close. Travel retail, a driving force for the business, has

also taken a big hit, but Asia is starting to pick

up again, the company said, and online sales are also a bright spot. The move comes as beauty companies

large and small have had to weigh different financial options as the

COVID-19 pandemic persists.

—Allison Collins

¬ Tiffany & Co. and LVMH Moët Hennessy Louis Vuitton are still headed to the altar — but a COVID-19 slowdown at the Australian regulatory agency could delay the high-end marriage.

The New York-based jeweler said in a filing with the Securities and Exchange Commission on Wednesday that it had received or was in the process of obtaining approvals from governments

around the world to close the $16.2 billion acquisition.

But the coronavirus outbreak has slowed down the bureaucracy in Australia. The country’s Competition and Consumer Commission issued a no-action letter on March 30, clearing the transaction. But a March 5 filing seeking the approval of the Australian Foreign Investment Review Board has been delayed. — Evan Clark

¬ Unruly, the video advertising platform that is part of Tremor International, surveyed consumers globally to assess changing sentiment toward content amid the coronavirus pandemic. With only 10 percent of the U.S. continuing daily lives as “normal,” Unruly’s findings show changed interests in advertising experiences. Twenty-two percent of respondents report they “want brands to share information on how they are supporting their staff and customers during this time.” An additional 21 percent

reported they “want brand advertisements to include information about COVID-19,” 17 percent “want ads to provide a sense of continuity and normalcy.” The final 17 percent “want ads to be funny or positive in an effort to distract from what’s going on.” The company’s research additionally found that just over half of consumers prefer brands to communicate through television advertisements and within the 18-to-24-year-old age range, 42 percent prefer brands to communicate through online video. — Alexandra Pastore

¬ Consumer spending

on fashion is way down, but not entirely shut down. While Walmart, Walgreens, Amazon, Target, CVS, Costco, Kroger, Trader Joe’s and other “essential” retailers are in high gear to meet the rush for food, pharmaceuticals and protective gear, others despair over what to do

¬The coronavirus crisis is weighing heavily on the French economy, which has entered a recession with first-quarter GDP down 6 percent, according to the governor of the Bank of France, François Villeroy de Galhau, on Wednesday.According to the institution, a study of figures from the second half of March shows that economic activity slowed by around 32 percent as lockdown measures came

into effect. The country’s statistics agency INSEE released an initial estimate of the decline in economic activity at around 35 percent on March 26. Speaking on French radio channel RTL, the governor said annual GDP could be weighed down by around 1.5 percent, offering a more grim assessment than a previous estimate of around 1 percent, suggested by the finance minister in March. — Mimosa Spencer

France in Recession

LVMH’s Tiffany Deal Held Up

COVID-19 Reshapes Consumer Content Preferences

Pandemic Crushes Retail

The Latest From WWD Fashion.Finance.Media.Retail.

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with all their “nonessentials.” “Clothing and footwear is facing a crisis. This category sees the greatest number of consumers cutting spending, and the level of sales transfer to e-commerce is insufficient to offset the impact of store closures,” according to Coresight Research.

Several retailers and industry experts cited bright pockets in soft goods, in particular baby clothes, basics, bedding, pajamas, sweats, denim, and generally speaking, clothes for comfort, lounging and sheltering in. Board games, toys, home improvement, streaming services, tutorials and tech accessories were frequently cited as strong sellers. — David Moin

9

APRIL 10, 2020

DEEP DIVE

IN FEBRUARY, perfumer David

Moltz, founder of Brooklyn-based

D.S. & Durga, was selling a lot of fine

fragrance.

Candles and ancillary products like

hand soaps and body lotions were a

nice-to-have, not need-to-have, part of

the business, making up less than a

quarter of the brand’s total sales.

A lot has changed in one month.

Coronavirus-induced lockdowns have

left most consumers confined to their

homes, and demand for candles and

home fragrance has skyrocketed.

For D.S. & Durga, home fragrance

sales on the brand’s e-commerce

site have tripled in the last month,

and doubled through its wholesale

accounts with retailers such as

Nordstrom and Saks.

The surge in sales dates back to

mid-March, when “the s--t really hit

the fan,” in New York, with businesses

shuttering and people self-isolating,

said Moltz.

“Everyone wants to be cozy,” he

said. “We’re selling through our

inventory and it’s going super-rapid

right now.”

With nonessential retailers

like Sephora, Ulta Beauty and

department stores shut down and

operating online only, total prestige

beauty sales were down 58 percent

in March, according to data from

The NPD Group.

Despite the sharp decline, there

are some bright spots, and home

fragrance is one of them. Home

ancillary gift sets — essentially,

candle sets — were up 6 percent

this week.

“It doesn’t seem like much, but in

a double-digit decline, that’s pretty

impressive,” said Larissa Jensen, vice

president and beauty industry adviser

at The NPD Group. “It’s all about self-

care and the home spa environment.”

She noted that candles are up not

just in the U.S., but globally. 

Jensen said the increase is part

of the self-care trend that much

of the U.S. population is currently

engaging in, whether doing online

workouts or their nails at home.

“Staying healthy is everyone’s number

priority, and beyond that, trying to

maintain some sense of normalcy

under these circumstances is still

top of mind for many,” she wrote

in a blog post. While noting that

personally she’s not doing the 30-day

workout challenge her son adopted,

she did admit she’s not immune to

the self-care movement. “Outside

of the obsessive hand washing,” she

wrote, “I’m making sure to moisturize

my skin, do my own nails and light

the occasional scented candle when

I start to feel stressed and need an

olfactive getaway.”

“We have seen some changes with

our mix of business, specifically in

China where our home category

has doubled,” said Jean-Guillaume

Trottier, global brand president,

Jo Malone London. "In our home

market, the U.K., a third of our

purchases are currently made in

the home category.”

In the U.S., the home fragrance

category, which includes candles,

room sprays, diffusers and ancillary

items like hand soap and lotion is

small, but has been on a growth streak

for the past few years. As consumers

spend more time at home, that u

Candles Burn Bright Amid Coronavirus Pandemic While the beauty industry faces steep declines, home fragrance is a bright spot. BY ELLEN THOMAS COLLAGE BY ALEX BANDONI

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“People are working from home and are interested in both

cleanliness and creating a home

environment where they want peace and escapism.”

—linda levy, the fragrance foundation

growth is set to accelerate.

“It was [previously] only a small

portion of the fragrance business,

but the home fragrance category

during the pandemic is undoubtedly

seeing major increases,” said Linda

G. Levy, president of The Fragrance

Foundation. “People are working

from home and are interested in

both cleanliness and creating a home

environment where they want peace

and escapism.”

Several brands echoed this

sentiment, telling Beauty Inc they

were experiencing unprecedented

online orders, not just from

wholesale accounts, but their direct

business as well.

Maria Dempsey, chief executive

officer of Nest New York, said the

brand has seen a surge in online sales

from both its own e-commerce site

and retail partners such as Sephora

and Nordstrom, noting a “dramatic

shift” back to candles from diffusers,

which had been more popular at the

start of the year.

Sales of Nest’s triple-wick candles,

which retail for $68, have more than

doubled, said Dempsey, especially

in the brand’s core scents such as

Bamboo and Moroccan Amber. “What

we’re hearing is that in this time of

crisis, people are loving the ritual of

lighting a candle,” said Dempsey.

Hand soaps and lotions are also up,

she said.

“From that first week that

Americans were working from

home, we saw a massive spike,”

said Eduardo Valdez, director of

marketing and communications for

Diptyque. “This is unlike anything

you could imagine happening in our

lifetime, and people are trying to

differentiate between their work and

home environment — scent is a really

nice way to do that.

Similar to Nest, Diptyque is seeing

increased demand for candles

in its core scents, such as Baies,

10

APRIL 10, 2020

DEEP DIVE

1. Sales of home fragrances are spiking, with brands repor ting that classic scents have been sel l ing the best.

2. The impact is spill ing over into home-care items. Laundr y detergent, dish soap and mult isur face disinfectants from luxur y and niche brands are al l increasing in popularit y. 3. A new breed of direct-to-consumer brands are finding success online—even without an IRL component enabling consumers to test the scent first.

Key Takeaways

Tuberose, Feu de Bois and Ambre.

“It’s definitely something that’s

safe,” said Valdez. “During this time,

[consumers] aren’t willing to take a

risk on something they’re not quite

sure about.”

With Diptyque stores closed,

sales are coming mainly from the

brand’s e-commerce site and its

retailer accounts. The first initial

rush on Diptyque’s web site was

likely customers stocking up on

replenishments, Valez said.

Most brands Beauty Inc spoke to

agreed that online sales don’t begin

to make up for brick-and-mortar

business lost, but the consumer’s

quick adaptation to online candle

shopping is making them rethink

direct e-commerce as a more

important channel post-pandemic.

Lafco founder Jon Bresler was

certain he wouldn’t get any traffic or

orders on the brand’s web site during

the citywide lockdowns. He has

followed government mandate and

closed his Brooklyn manufacturing

facility, where he ships orders from,

and even put a banner on the site’s

home page announcing that all

online orders would be held until the

warehouse is able to reopen.

Still, consumers are ordering.

“We are still receiving a

tremendous amount of orders,” said

Bresler. “We thought the Internet site

wouldn’t get any orders and we are

getting more orders than we used to.”

Lafco sells direct through Amazon,

where he said the brand’s Office

candle and hand soaps and lotions

are in high demand. He's thinking

about going to the warehouse this

weekend and fulfilling himself orders

for hand soaps and a new shipment

to Bluemercury, which has sold out

online of much of its inventory.

“We have had a run on [bar] soap and

liquid soap in a way we’ve never seen

before,” said Bresler. “We’re thinking

people really need this.”

The demand from lafco.com

will have to wait, he said, because

the volume is too high for him to

fulfill alone.

“A whole portion of our business

has come to a screeching halt, but

we’ve seen on our web site over the

past week has been above and beyond

what we forecasted and even what we

reforecasted a couple weeks ago,” said

Casey Riley, brand director for Capri

Blue at Curio Brands.

Capri Blue sells its home fragrance

line in about 5,000 specialty

boutiques and in Anthropologie,

where its Volcano scent has

become a cult hit. The brand

recently expanded into home care

with cleaning products, including

laundry detergent, dish soap and a

multisurface disinfectant.

The multisurface cleaner, launched

in January, has already oversold,

said Riley.

Lifestyle items are also doing well

at Diptyque. The brand’s Hourglass

Diffuser and, interestingly, a hair

mist, are also in high demand,

said Valdez.

The pandemic has altered how

some fine fragrance brands, for

which home fragrance was an

insignificant portion of sales, will

approach product development

going forward.

At Nest, Dempsey is thinking

about a new launch cadence,

especially as consumers gravitate

toward the brand’s core scented

candles. “Newness is a risk,” she

said. “Maybe [we take] smaller risks

if we want to try a new fragrance

and start with a limited amount and

doing it only on our web site.”

Moltz has been “thinking about

ways” his business can give back. In

the short term, that means making

hand-sanitizer through his Bronx

manufacturer, and donating half the

supply to New York-area hospitals.

“It will change what products we

make,” said Moltz of the pandemic.

“[We may be] pivoting to more

cleaning products, candles, maybe

less perfume launches — looking at

what people really need.” ■

THE NEW CANDLE COMPETITORSFive brands formulating with full-spectrum cannabinoids.

While Diptyque, Nest and Jo Malone have historically ruled the home fragrance landscape, a new class of players is emerging in the candle category, giving Millennials options that home in on affordable luxury and clean ingredients. OTHERLANDFounded by former Ralph Lauren staffer Abigail Cook Stone, the idea for Otherland was born out of a desire for a sophisticated candle that wouldn't break the bank. Otherland's candles have quickly become a Millennial favorite and are sold direct through its web site, or on 12 OVERROSEOverrose candles combine luxury scent with sustainability — founder Matthieu Belhandouz worked briefly for Stella McCartney. The brand is said to follow a strict sourcing policy when it comes to ingredients, using only organic and natural oils. At $58 to $68 each, its candle prices rival that of Diptyque, but vessels in an array of bright and holographic colors serve as a differentiator.

MAISON LOUIS MARIEAnother Parisian import, Maison Louis Marie is a six-year-old brand quickly gaining traction in the U.S. for its affordable scents —$34 for a candle — and use of clean, botanical ingredients. The brand is sold online at Sephora. APOTHEKEApotheke uses the power of Instagram to promote its $38 single-wick candles through an ambassador program. The Brooklyn-based brand sources its scents from essential oils. KERZONYet another French home fragrance line is making its way to the U.S. market. Kerzon's Paris-inspired candles, $42 each, are made with biodegradable wax and are sold at Nordstrom. The greater line, sold in France, includes cleaning products such as laundry detergent. D.S. & DURGAThe Brooklyn-based perfume house began selling candles last year. Big Sur After Rain, a popular fragrance from the brand, has become a top seller.

5 0 T H A N N I V E R S A R Y O F

E A R T H D A Y

R E C O G N I Z E T H E

+

E A R T H D A Y : A P R I L 2 2 , 2 0 2 0

Opportunities Include:

CU STOM CONTENTB R AN D ADS

SOCIAL H IGH LIGHTSDIGITAL EVENTS

FOR MORE INFORMATION, PLEASE CONTACT RACHAEL DESANTIS, BEAUTY DIRECTOR AT RDESANTIS@WWD.COM

Beauty Inc’s April 17 newsletter will focus on the beauty

brands, companies, solution providers and retailers making

an environmental impact through clean products, sustainable

practices, philanthropic initiatives and beyond.

TH

12

APRIL 10, 2020

MASTER CLASS

DREW ELLIOTT BROKE THE Internet as Paper Magazine's editor

in chief. Now, as MAC's senior

vice president and global creative

director, he aims to do the same in

beauty. He sat down with Beauty Inc

before the coronavirus pandemic to

share the direction he envisions for

one of beauty's most storied brands.

What was your first job and

what did you learn?

Drew Elliott: I worked the door

at The Roxy nightclub in New York

City, which was an old roller rink

that was turned into a huge dance

club on the West Side. I learned

so much about New York, people

and the curation of how you put

the right people together to have a

spectacular occasion. It’s kind of like

the choreography of people.

What do you know now that you

wish you knew when you were

starting out? D.E.: Your plan is going to change.

My dream when I was a kid was to be

an actor. I went to theatrical camp,

I did all kinds of things, and all of

that was not lost because I love to

perform. I sing to the people here.

I will crank up the tunes and make

everyone dance. Being in theater also

helps me in meetings. That’s what

my dream was, and then I worked

in publishing and that was a dream.

I wanted to be on TV —  that was a

dream. And then this happened. I

never closed myself off to opportunity,

but I think when I was young, I

was like, 'This is what I’m gonna

do,' which I think is ambition. But

sometimes you have to understand

that your ambition can be what you’re

able to achieve as opposed to the

thing you’re achieving.

What’s driving the growth of

MAC and where do you see

opportunity for improvement?

D.E.: Emerging markets, areas

like China. Geographically, that’s

what’s driving our business. But

also, all of our innovation. What’s

amazing about MAC is we have

so many things. Some stores have

1,700 products in them. We really

have over the years accumulated

every single thing that you need to

create whatever look you want. I

think there are certain heroes inside

of that, whether it’s our Studio Fix

Foundation, our bullet lipsticks,

Ruby Woo. There are staples to the

business, there’s newness to the

business, and then there are new

markets to the business. That’s really

what creates our growth.

What are your top three

priorities for the next year?

D.E.: My first one is around our

brand dot-com. What’s amazing

about MAC is it’s such an experience.

When you go in stores, when you

try on our products, our artists

— it’s second to none. People love

MAC when it’s in real life, so I think

translating that and making sure it

equals that excitement digitally is the

number-one thing that I’m looking at

achieving. We have amazing things

like virtual try-on and shade finder,

so it’s just bringing all of those to

the front and helping consumers

understand how they can use online

the same way they can use our stores.

Number two is making MAC

remarkable. It has this artistry, it has

fashion, it has all of those amazing

components and that’s why people

know MAC and love it. Translating

that remarkable feeling for young

people is really exciting to me.

Starting with [the collaboration with

“Euphoria” star] Alexa Demie, that’s

the MAC that I love, but it’s nuanced.

I always believe in this idea of now-

stalgia: making something brand new

by looking back. Alexa’s mother was a

makeup artist at MAC 20 years ago. It

has all of those elements of story.

The third piece would probably be

how we are reigniting the experience

in store. We’re rolling out a brand

new look. How do we appear at these

really important places whether it’s

in your hometown or in a tourist

destination? How do we build an

experience that’s special for you?

What’s the most important

change you’ve seen in consumer

behavior over the past year

and what are you changing to

address that? D.E.: Consumer behavior is

interesting because of how people

are tuning in to live events. That, to

me, is one of the most interesting

things. It’s almost like a trending

moment that everyone’s doing at

once, like we’re seeing on TikTok.

A lot of our artists across APAC

and China are doing tons of live-

streaming. People are taking cues

from that. Trends used to come from

backstage, from films and artists.

Now, trends are coming not only

from social media stars, but they’re

happening in real life all at the same

time. We’ve seen this speed of the

Internet take commerce and trend

to a whole new direction.

What is the toughest assignment

you’ve been given and how did

you navigate it? D.E.: Probably this job is my

toughest assignment, and not for

all the reasons you would think. It

means a lot to me personally, because

I’ve always loved MAC. MAC is the

place that has always made me feel

included. Being a queer kid who grew

up in Indiana, I always found MAC to

be a place where I could explore and

play and find a community of people

like me. Having met John Demsey

when I was 19 years old and then

knowing the former creative director

and meeting Mr. [Leonard] Lauder,

you understand that it is a family and

you want to make it as magical as I

always felt it was in my heart when

I was young. So I have the job and the

responsibility and the opportunity to

deliver that to everyone around the

world. I take that as a challenge, but

it’s an honor at the same time.

What’s your favorite question

to ask when you’re interviewing

someone?

D.E.: I always ask people, “What

do you really want to do? What is

the North Star?” I want to see where

they’re going because I want to see

where they are in the journey of

getting there. If you can understand

what their big dream is, you can help

them with the steps that are going to

take them to get there.

What do you do to de-stress? D.E.: I love to shop and not to buy

a single thing. Nothing is better, to

me, than walking down Fifth Avenue

and looking at the stores and going

in and talking to the people on the

sales floor, asking them questions.

Not only does it enhance what I

do for a job, I find it so interesting

because that gives you a look into

what’s happening in culture. And I

don’t just do it in New York, I do it

anywhere I travel. At home, I usually

do absolutely nothing. I am watching

“Love Is Blind” [on Netflix]. I watch

the worst, horrible TV, which I love.

I will binge a whole thing. I love

being home and I love being left

to my own ideas.

Drew Elliott MAC Cosmetics' senior vice president and global creative director on joining the Lauder family, rethinking the brand's dot-com and de-stressing with "Love Is Blind" on Netflix. BY ALEXA TIETJEN PHOTOGRAPH BY MASATO ONODA

DIRECT CONNECT: @Drewpsie

13

APRIL 10, 2020

DETAIL ON RETAIL

NOW THAT U.S. SHOPPERS

have stocked up on enough toilet

paper to get them through the

coronavirus pandemic, they’re starting

to think about buying beauty products. 

While essential purchases, like

cleaning and health-care supplies

continue to dominate consumer

spending, online beauty sales are

starting to trend upward. In the

prestige beauty category, online sales

— normally 20 percent of the U.S.

business — went up by 47 percent the

week of March 28, capturing about

90 percent of total beauty spend,

according to the NPD Group.

While until recently, people have

been preoccupied with stocking up

on the basics and not buying beauty,

“beauty fits into the next wave,” said

Wendy Liebmann, chief executive

officer of WSL Strategic Retail.

As retail store closures persist and

overall beauty sales decline — they

were down by 58 percent for the week

of March 28 versus the prior year,

according to NPD — online sales,

both in the U.S. and abroad, will play

an increasingly important role for

beauty companies as cross-border

commerce in China starts to return. 

Data from Attentive Mobile

shows that while beauty sales

dropped off the week of March 9,

as the seriousness of the COVID-19

pandemic started to hit U.S. shoppers,

they have gained in the past few

weeks. Beauty is accelerating,

Attentive data shows, along with

food, home, pets, electronics, health

and outdoor equipment. Auto, sports

and certain apparel categories are

down, according to the company.

Online beauty sales were up 10

percent in March versus February,

Attentive data shows, and are pacing

to be up 13.5 percent in April versus

March, with high-growth categories

including home hair color, hair care

and skin care. Sales dipped 17.5

percent for the week ended April 6

because of promotions that had run

the prior week that boosted numbers,

according to Attentive. Fragrance and

makeup sales are down, the company

said. “It's not a big surprise there,

you can’t smell people on Zoom,” said

Brian Long, cofounder and ceo of the

text marketing business.

Data from Spate shows that Google

searches for beauty categories like

hair, skin and makeup declined

week-over-week between Feb. 23

and March 15, but have since picked

up. Searches around skin care were

up 75.7 percent week-over-week as

of March 29, while makeup was up

73.6 percent and skin was up 48.2

percent, according to Spate data. 

Many retailers are seeing the lift

from that increased shopper interest.

Sephora is said to have posted a

more than 30 percent gain in its

e-commerce business in March,

for example, while smaller beauty

retailers, like Cos Bar and Credo, are

also experiencing upticks. Ulta Beauty

declined to comment for this story.

Credo's online sales posted a

triple-digit comp versus last year,

with upticks in self-care products,

including bath salts, hair masks, face

masks and peels, as well as basics,

like body wash and shampoo and

conditioner, according to cofounder

and chief operating officer Annie

Jackson. “Interesting, too, that we

saw other shifts in the business

as customers are staying in, such

as from foundation into tinted

moisturizer and from sunscreen into

self-tanner,” Jackson said.

Cos Bar saw a 216 percent lift

in online sales between March 18

and April 6, driven by Oribe Root

Touchup, masks, exfoliators and hair

bath and body products. 

The Estée Lauder Cos. is seeing more

online engagement with shoppers, with

50 percent more new customers and

a 60 percent increase in chat sessions

over last year, according to Salima

Popatia, senior vice president of global

customer acquisition and retention

at Lauder. The company is leveraging

its field teams and beauty advisers

as “virtual advisers” — something a

handful of beauty companies are doing

in order to keep employees on payroll

and generate online sales.

But even with gains in online sales

and engagement, most beauty firms

are not expecting e-commerce to

be able to fully compensate for the

volumes lost from retail store closures.

Kline is predicting the beauty market

will decline further in 2020 than it did

after the Great Recession.

“It is not business as usual,” said

Oliver Garfield, Cos Bar copresident.

“I don't think that anybody is going

to be able to make up for this,” said

Kendra Butler, founder and ceo of

Alpyn Beauty. “We as a brand, instead

of trying to drive sales and execute

and make money, are like, 'Let's take

this time and get ahead of the game.'”

For Alpyn, an indie skin-care brand

sold with Sephora, Goop, Credo and

Bluemercury, that means planning

further in advance “so when we're ready

to go ahead, we're just pushing buttons

and everything's done,” Butler said.

Sans marketing, which Alpyn has

cut back on during the COVID-19

pandemic, the brand has still seen lifts

in sales both on its own dot-com and

through retail partners, Butler said.

“About [four] weeks ago we saw

e-commerce sales completely fall off

a cliff,” Butler said. “Over the past

[few] weeks, however, we’ve seen a

slow and steady increase that things

are starting to come back.”

“People are starting to understand

that this may be the new normal for

a little while, and now they need to

figure out what supplies they need in

their home to make themselves happy,”

Butler said. “If mentally you’re feeling

unbalanced, what can you control? You

can control your beauty ritual.”

Many brands have said they’re

seeing online sales surges from retail

partners too, but that logistics can

sometimes pose a problem.

“Can [retailers] replace the two-

thirds [of sales] that are done in

stores online? That’s a lot, and it’s not

that they couldn’t, but most of them

aren’t in the logistical, operational

position to do it,” Liebmann said.

Liebmann said that retailers with

established online channels should

look to capture sales as consumers

start to “hunker down.”

“That’s the next move here —

people are stocked up on all the

basics,” Liebmann said, and will look

to shop for beauty. “If you don’t have

an online presence [and] a successful

or efficient way to deliver your

beauty products, you won’t recoup

for some considerable time.”

Can Beauty E-commerce Sales Make Up for Store Closures? Beauty brands are seeing sales increase online, but it's not enough to make up for drops from retail sales. BY ALLISON COLLINS

Online beauty sales are up, but they aren't expected to make up for the volumes lost to coronavirus-related retail closures.

“Can [retailers] replace the two-

thirds [of sales] that are done in stores

online? That’s a lot, and it’s not that

they couldn’t, but most of them aren’t

in the logistical, operational position

to do it.” —wendy liebmann,

wsl strategic retail

14

APRIL 10, 2020

EYE CANDY

Spring in Their Steps¬ The Fifth Avenue Easter Day Parade is canceled this year, but it is a tradition that spans centuries, said Melissa Marra-Alvarez, co-curator of the FIT Museum’s upcoming exhibit, “Head to Toe.”

“Hats were an important fashion accessory throughout the 19th century,” she said, noting the Easter Day Parade started spontaneously in the 1870s as affluent parishioners left their Fifth Avenue churches in their finery. It quickly became an expression of sartorial prowess: “Old proverbs spoke of

bad luck for anyone who did not have something new to wear for Easter,” Marra-Alvarez said. Nowadays, hairstyles in lieu of traditional bonnets are more common for many, but Easter has become a day when people can flout their most outrageous creations. “The Easter Parade has become an extravagant display of fanciful hats, headpieces and hairstyles,” Marra-Alvarez said. “While it still is about dressing to impress, it’s very much about creativity.” Here, fanciful creations from years past.” —James Manso

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