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There have been fears that the beauty industry was in some troubled waters after reports recently. Especially in the UK, where the new living wage could put a lot of small beauty companies out of business. However, experts believe that cosmetics is set for another boom. Let’s take a look at the rise and fall of this profitable market. Along with what causes such fluctuations.
Picture credit – Flickr
With the current economic crisis, some beauty companies have seen a decline in business. With people finding it difficult to get a mortgage or put food on the table, cosmetics have taken a backseat. Smaller beauty businesses have also found it difficult to stay afloat during the financial turmoil. Fewer people are visiting salons and choosing to do the work themselves. Using Youtube and Pinterest for tutorials. This has caused many small beauty businesses to go out of businesses. The last time the industry saw this much of a decline would have been back in World War 2. Many women were making their own cosmetics, due to there being very few available on the market.
Now that much of the western world is pulling itself out of the financial turmoil, it is thought the beauty industry will flourish again. Companies are getting smarter with the way they market their products and services to the masses. Beauty bloggers have recently come under fire for marketing products to their readers. Without full disclaimers. Yet, the beauty industry is still relying on this clever form of advertising to pull in new customers. Makeup products are flying off the shelves. Just because they’ve received a positive review from a well-known beauty vlogger. Combined with the fact that many people now have a bit more disposable income, it’s unsurprising if we do see a boom again.
Profits and Changes
It’s not just the marketing tactics that have changed. The cosmetics industry is now investing in smarter technology and more cost effective solutions. In order to bring down the cost of their products even more. Along with providing better quality for their customers. As an example, sanitary mixers are now being used in many cosmetics factories. These are cheaper than some of the other options while also being cleaner and less toxic. The higher quality standards are being passed onto customers, but the pricing changes may not be. This industry remains one of the most profitable on the planet. The markup of certain beauty products has been a talking point for quite some time. With many people questioning how companies can get away with charging so much. For products that cost them so little to make. However, with such a fluctuating industry, this tactic ensures bigger brands never go out of business.
Of course, much of this talk of booms and declines is really all just hearsay. Only the cosmetics companies themselves know how well they are performing. If they continue to use smart marketing techniques and cost effective manufacturing. They won’t see a decline for quite some time. Meaning many of your favorite brands are here to stay.
Dita Von Teese recently admitted that the number of beauty products that she uses regularly goes in to the hundreds.
Dancer Dita Von Teese, born Heather Renée Sweet in Rochester, Michigan, has admitted she is such a beauty junkie that she couldn’t live without any of the multiple cosmetics and haircare products which she uses to achieve her glamorous retro look.
Asked what her three must-have items are, Dita Von Teese giggled: “Three? Oh my god, it’s more like 300! If you only knew, I have a lot of things that I absolutely can’t do without.
“Even for my shows, I do everything by myself, from make-up to choosing my own outfits.”
However, Dita Von Teese, 40, believes make-up can only go so far and the only way to exude s** appeal is to have confidence in yourself.
She explained: “For me, s** appeal is a very individual thing, it’s about finding yourself above all and mostly about having self-confidence. We have to find what suits us and makes us feel good.
“It’s all about being s**y, it’s nothing to do with what people think – on the contrary. It’s completely psychological.
“I love the process of getting ready, both in terms of hair as well as make-up. With only three things, I’d have a lot of trouble getting ready!”
Dita Von Teese admitted that the number of beauty products that she uses regularly goes in to the hundreds
Two years ago Dita Von Teese told the New York Times Style magazine that she uses Just For Men hair dye to achieve raven eyebrows, and also that perfect skin hasn’t come easy.
She spoke about how she visited several doctors in a bit to cure her rosacea, revealing: “I was told by a big name dermatologist, <<this is your life now>>, because he couldn’t figure out how to get rid of it.
“A million creams later, I went to a real skin doctor in Orange County. He prescribed a pill and one lotion, and boom, it was gone.”
Creme de la Mer is her choice of face cream – “it’s pricey, but so worth it”.
Her favorite beauty products include Dior Capture Totale foundation, MAC Mineralize face powder, Dior Dolce Vita lipstick, Guerlain Divinora liquid eyeliner and Dior Show mascara.
Dita Von Teese’s top tip for feeling good is adorning herself in a tasteful amount of jewels, and she especially loves rubies because they are so “sensual”.
She explained in an interview with French fashion website Pure Trend: “It’s true that I like jewellery, but I wear just the right amount to emphasize the statement piece I choose. I like diamonds but my real favorite has always been rubies.
“At the moment for instance, I’m wearing ruby earrings. I love touching them, playing with them, it’s a very sensual stone.”
Dita Von Teese has also said she relies on pink lights and a dimmer switch to banish cellulite, citing “it’s the only thing that works”.
Kardashian sisters’ Khroma Beauty debut make-up line has been forced to change its name to Kardashian Beauty in a trademark dispute.
WWD reports that the rebrand is being made to end an 8 month-long trademark dispute between the Kardashians and a Florida-based company called Kroma Makeup, which sought $10 million in damages.
An array of Khroma Beauty products had already been produced, promoted and were ready to hit more than 5,000 retailers across the U.S. but now the costly task of relabeling will begin.
Despite the announced changes, the Kardashian’s original website, www.khromabeauty.com, and Facebook page are still currently functioning.
The long-running saga started last June when Lee Tillett, the founder of Kroma Makeup, sent a cease-and-desist letter to Boldface Group Inc, the branding company behind the Kardashian’s Khroma Beauty line, accusing it of “stealing” the name.
Lee Tillett set up her company in 2004 and trademarked the name Kroma – which apparently means “color” in Greek – six years later.
In the legal case she sought $10 million in damages, claiming that the Kardashian sisters’ company, for which they are set to make at least $6.2 million, would cause confusion in the marketplace.
And it appeared that those leading the case agreed. After months of heavy promotion the Kardashians were instructed to stop distributing products this March.
“Tillett has demonstrated that [she] will likely lose business opportunities, customers and goodwill due to Boldface’s use of the confusingly similar Khroma Beauty marks,” Judge Audrey Collins, said in her ruling.
Khroma Beauty has now officially changed its name to Kardashian Beauty to end an 8 month-long trademark dispute
“The court has little doubt that, in short order, the Khroma Beauty products will likely eliminate Tillett’s business entirely, creating irreparable harm sufficient to justify an injunction.”
Boldface Group Inc appealed the decision, seeking to reverse the U.S. District Court’s injunction so Khroma Beauty products could go on sale, but this was not granted.
As a result Khroma Beauty has now officially changed its name to Kardashian Beauty.
Florida native, Lee Tillett, previously told the Orlando Sentinel: “I developed the Kroma line myself, built my business through my own hard work, and took the legal steps necessary to protect it.
“And yet I have now been forced into legal battle with the Kardashians simply because they have decided to take something that doesn’t belong to them.”
In her formal federal court response she claims the promotion of Khroma was likely to mislead customers into thinking her line is associated with the Kardashian sisters.
Lee Tillett added: “The false association is damaging … and threatens to destroy its business.”
According to the counter-claims, Boldface Group Inc had paid the Kardashians an upfront advance of $1 million for licensing rights, with guaranteed minimum royalty payments of $4.6 million to $5.2 million.
As part of the deal, they allegedly have some power over the product line and that Kim Kardashian “proposed” it be called Khroma.
Lee Tillett’s attorney Elliot Gipson claims Kim Kardashian should have known better.
He pointed to discussions by representatives for himself and TLK Fusion, which allegedly acted as Kardashian’s product-placement agent for a show that was being produced by Kim Kardashian.
Elliot Gipson said: “On or about May 2010, representatives for Tillett and TLK Fusion were engaged in discussions regarding the possible product placement of the KROMA cosmetics line on the television reality show special The SPINdustry that was scheduled to air on E! Entertainment Television following an episode of Keeping Up With the Kardashians.”
No deal was ever reached, but if this is true she could have had advance knowledge that the name was already in use.
Salma Hayek has admitted that she achieves her skin perfection by never washing her face when she wakes up in the morning.
Salma Hayek, 46, looks much younger than her age, and she attributes her less than hygienic regime as the secret behind her skin perfection.
Speaking to Kate Garraway on ITV’1 Lorraine, Salma Hayek said: “OK, one tip – always wash your face at night. Clean it.
“You don’t have to wash it, but you have to clean it really, really well at night.”
Salma Hayek has admitted that she achieves her skin perfection by never washing her face when she wakes up in the morning
The actress said: “One strange tip – don’t wash it in the morning, at all, never. Because at night your skin is rebuilding some of the oils that you need to keep your skin young, and it balances the PH.
“So in the morning if you take them off – you can splash it with water, do something mild – but you don’t want to get rid of that. And if your skin is dirty in the morning, it means you didn’t clean well at night.”
With one secret out the bag, Salma Hayek was happy to share even more of her knowledge on maintaining a youthful appearance.
The mother-of-one developed her own range of beauty products that she uses all the time and only sells in one store over in America.
Salma Hayek said: “I’m not very trim, but I don’t have as many wrinkles as probably I should. But I do use, I use my products but you don’t sell them, I just sell them in only one drug store in the States.
“And I do a lot of that for 10 years, and I’ve been using that stuff even since before, so I use creams, it’s creams.”
The Mexican born actor stars in new Oliver Stone movie Savages, alongside John Travolta, Benicio Del Toro and Taylor Kitsch.
The big budget thriller tells the tale of warring drug cartels and the violence that the narcotics business contributes to society.
Salma Hayek said of her role in the film: “I am the queen of the most important drug cartel in Mexico.
“I think it’s important people see that for people who consume drugs and they think, ‘There’s nothing wrong with just a little bit, I’m not going to die from it’, you might not die from it, but you buying it – for that to get to you, a lot of people died.
“So the people that use drugs somehow contribute to this violence and this business.”
Katie Holmes has become the first ever face of Bobbi Brown Cosmetics.
Katie Holmes, 33, who recently divorced husband Tom Cruise after five years of marriage, has signed a deal with the beauty firm which will see her act as both muse and collaborator.
Bobbi Brown told WWD: “We weren’t looking for a celebrity, just a cool, amazing woman who would fit with our brand. And she’s just ridiculously naturally beautiful.”
Katie Holmes, who favors a bare-faced, almost no-make-up look, is a perfect fit for the cosmetics company, which also shares a natural aesthetic.
According to Bobbi Brown executives, as well as being the first celebrity face of the 21-year-old brand, Katie Holmes name will appear on a capsule collection of fall 2013 cosmetics.
Katie Holmes has become the first ever face of Bobbi Brown Cosmetics
She told WWD: “This is my first foray into beauty products and the evolution of a look.
“You want the hair and makeup to support the woman, just like you want the clothes to support the woman. You don’t want to lose the woman. That’s how Jeanne and I design.”
The news comes as the actress and designer prepares to stage the first-ever Fashion Week show for her label, Holmes & Yang.
Katie Holmes, who founded the line with stylist Jeanne Yang, will join the likes of Diane Von Furstenberg and Donna Karan at Mercedes Benz Fashion Week at Lincoln Center on Sunday.
And by all accounts, the success of the show, and the fashion press verdicts, will mean a lot to her.
Katie Holmes explained: “When you go in and you show your clothing, you think that they’re going to buy the whole collection. And when they don’t, you’re like, <<What do you mean? It all goes together. So what do we do with this?>>.
“So that was new, but I think that’s kind of a life thing – <<What, you don’t want all of me?>>”
The event will take place on the same day as Victoria Beckham, putting the two celebrities – and one-time friends – head-to-head.
The Holmes & Yang pieces, which she described as “just nice, well-made luxury items that highlight the woman wearing them”, range in price from $700 to $3000.
“We use a lot of silks and leathers and suedes,” she added, as if by way of explanation.
The Holmes & Yang first formal New York Fashion Week presentation and the Bobbi Brown beauty campaign together indicate that Katie Holmes is carving a sophisticated new image for herself, in the wake of her divorce.
Her acting career has not been completely sidelined, however.
Katie Holmes is set to star in a Broadway play, Dead Accounts, from November, and has two movies in the pipeline for next year.