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Jatai International, a supplier of finely crafted razors, shears and shaving accessories, has evolved tremendously since its inception 67 years ago—and thanks to the revival of the old-school barbershop, has seen a recent spike in sales. Spearheaded by CEO and president Dean Wada, the business is now also a family-owned and operated one. Let’s take a look at the company’s rich history, greatest victories, growth strategies and big plans for the future.

BRIDGING THE GAP
In 1950, Jatai International was founded by Fred Wada, a man with whom Dean coincidently shares the same last name, but no direct relation. Jatai (an acronym for Japan America Trading Agency, Inc.) originated as a liaison office in California to promote postwar trade between the U.S. and Japan.

“Fred Wada was a man who was really interested in establishing Japan in the world market. After World War II, Japan was devastated, and he felt that the only way to get Japan back on its feet was to create commerce,” Dean says.

A produce wholesaler who distributed to grocery stores throughout Southern California, Fred faced many challenges in getting Jatai up and running. “There was prejudice against the Japanese after World War II, and that was a major obstacle for him,” Dean says. Despite such hurdles, Fred formed a network of business professionals—CPAs, lawyers and bankers—well versed in the various regulations required for foreign corporations to do business in the States.

“My advice to entrepreneurs is to stay focused, stay true to your convictions and be patient—nothing happens overnight.”

–Dean Wada

Interestingly, Fred also made tireless efforts while serving on the Tokyo Olympic Committee, which helped Japan get the nomination for the 1964 Summer Olympics. Dean says, “This was really important because in ’64, it opened Japan to the rest of the world. The first bullet train was introduced at the Olympics, and this was the start of Japan coming out of World War II devastation.”

As the company grew, Fred invited a commodity trader in New York, who specialized in foreign trade, to join him on the West Coast. That man was Kay Obayashi, who would become Jatai’s next owner in the late 1970s. At first, Jatai specialized in sewing machines, and later switched focus to what Obayashi knew best: importing and exporting. From tatami mats to diatomaceous soil to scrap pieces of tuna for canned cat food, the company didn’t find its niche until Obayashi started importing haircutting razors and blades.

SHEAR LUCK
In the 1960s, under Obayashi, Jatai began distributing Feather Safety Razor Co. products, starting with the Feather Switch-Blade Shears with Replaceable Blades—an item that did well for many years as one of the priciest, high-quality shears on the market (and is still sold by the company today).

“[Obayashi] started to find products he could have full or exclusive distribution rights to,” Dean says. “Today, that’s what we’re enjoying right now. We have been the sole distributor of Feather professional beauty products as well as a couple other product lines.” Jatai has also created its own line of men’s grooming products, which includes shaving cream, facial cleanser and moisturizer.

Feather products are made in Seki, Japan—the birthplace of the samurai sword and a region known for its cutlery, knives and grooming tools made using the land’s plentiful natural resources, like pine charcoal for kilns. “Jatai razors are truly remarkable. Their quality is what sets them apart,” says Dean’s daughter Vanessa, who oversees marketing and product development. “Feather, our razor manufacturer, sets the bar on razor production. ... They are very precise with their production techniques and quality control testing.”

In 1991, Jatai and Feather developed the Feather Styling Razor, which is Jatai’s hero product and the No. 1 haircutting razor in the world. “The Feather Styling Razor is the first replaceable-blade razor with guarded blades to appear in the market,” Vanessa says. Prior to its invention, razors folded and had a guard slip on the head of the razor, which allowed hair to get clogged between the guard and blade. This posed a danger to stylists who could easily cut themselves. Unlike its predecessors, the Feather Styling Razor has a guard built right onto it, with a blade that extends into the handle for a more secure grip.

“The other thing about our razor is that it doesn’t fold. It’s a straight-handle razor, which was unheard of back when we brought it out. The reason we did that was to give the hairdresser a real easy tool to use, which you don’t have to learn how to hold. It’s just like grabbing a pencil or paint- brush—and you start cutting,” Dean says.

THE BARBERSHOP BOOM
Dean was working as a CPA for one of the Big 8 firms in the 1980s (“Way back when we had floppy disks,” he laughs), and Jatai was one of his clients. Though Obayashi’s nephew was poised to take over the business, he tragically died in a plane crash; Obayashi invited Dean to join the company in 1987. “I always wanted to get involved with a small company to help develop it and be more entrepreneurial,” Dean says. Seventeen years later, Dean purchased Jatai, moving its headquarters from Santa Fe Springs to Buena Park, California.

Dean says that his most memorable accomplishments over the years include conceptualizing the Feather Styling Razor, bringing Seki Edge tools to the U.S. and witnessing Seki Edge nail clippers become the No. 1 nail clipper sold on Amazon.

“Today, when people think of the Feather Styling Razor, they think of Jatai—and that’s a great feeling.”

–Vanessa Wada

“Because of the internet, people who shave at home can get access to less expensive products, and great products as well. So due to that, a lot of entrepreneurs have come out and developed shaving products and men’s haircare products, which opened the doors for the barber industry to really flourish and continue to evolve. Before this all started, we sold very few blades. Yet since the barber industry changed, we now sell thousands per month,” Dean says.

But the recent growth in the barber industry also meant increased competition. “It’s definitely changing the business model we have been comfortable with for decades. Finding new products and getting them distributed properly [is a challenge] given the distribution channels we have today, which are very narrow and difficult to get a new product into,” Dean says.

He has increased efforts to get Jatai products into more retail stores by reducing retail prices earlier in the year; Dean is also working on additional solutions to help stores boost sales of Seki Edge products in particular. To compete with online prices, he says he needs to even out the playing field, and is confident Jatai will increase in brick-and-mortar store sales in the near future.

THE NEXT GENERATION
Jatai’s success may equally be due to its supportive culture. Dean says that he treats the 10 employees that make up Jatai’s staff like family, nurturing everyone’s talents as best he can. “The culture is a community working together to find the best products that meet our customers’ demands, and great service. If I hire good, solid employees, they will bring our Jatai culture to life and give that feeling of ‘family’ to our customers and our suppliers,” he says.

Three of his employees also happen to be family: His wife Gloria, vice president, manages payables; his son Kevin, who joined seven years ago, handles operations; and his daughter Vanessa, who came on board six years ago in a marketing capacity.

Vanessa previously worked as a registered dietician, with the hopes of creating an online business promoting her nutritional services; one day she realized that she could be an asset in increasing Jatai’s marketing efforts. “Maybe it was just because I’m his daughter, but I’d like to believe he thought I could make a positive difference at Jatai,” Vanessa says.

Over the years, her role has evolved to encompass website management, video production, photography and product development, among other things. Vanessa finds inspiration for new products by studying market trends, reading customer reviews and applying what other industries are doing to the beauty industry. “I take a new product, create a brand look and feel, and then determine ways to bring it to market. I wear a lot of hats, but I like it this way because it means I’m constantly learning and being challenged,” she says.

Vanessa admits that working with family has its pros and cons, saying, “It’s family, so it’s easier for me to express what I feel without feeling like I will be fired. I have a greater ability to try to carry out my initiatives and ideas. I can turn on my daughter charm and sometimes get my way! But I still feel like an employee. ... If any of us get into a bad argument it could easily be carried into family life outside of work if we let it.”

“We are always on the lookout for new products to bring to market.”

–Kevin Wada

Kevin adds, “Working with family is not too different from working for someone else. When I’m at work I don’t interact differently with my family versus our other employees. One difference is company expenses feel more personal, as if I’m spending my own money.”

Kevin, a CPA prior to joining Jatai, didn’t have a clearly defined role when he started, but now manages the computer systems, accounting, human resources, purchasing orders, attends trade shows and more. He says, “A lot of days I’m not sure what will come up, and it keeps things interesting.”

Dean feels it’s becoming increasingly difficult to hire quality employees—something that’s on his mind right now because he’s planning to reorganize the company in 2018, getting Kevin and Vanessa more involved with upper management and daily operations while he takes a backseat. With family businesses being a rarity these days, Dean says, “I really feel a family operation allows the legacy to continue, giving the next generation a running start and the opportunity to spread their wings.”

In addition to expanding the distribution of new products released this year (Jatai Heat Shields, Jatai Teasing Pin Comb and Feather Standard Blades R-Type), 2018’s emphasis will be on adapting to an ever-changing market. “A greater focus on selling direct will come into play, which means we will more heavily draw our attention to building online sales,” Vanessa says.

Kevin agrees, saying, “E-commerce is playing a larger and larger role in distribution. It offers a great opportunity, but it creates challenges for brick-and-mortar distribution. Navigating between those two distribution channels will be very important for our future.”

Dean says the company wouldn’t be what it is today without the ongoing encouragement of his wife Gloria. “Without her understanding and support, it would have been difficult for me to advance the company. We have four children, so she was constantly taking care of them while I was on the road selling or staying late at the office, doing what I had to do. She is a big part of why we’re here today.”

Optimistic about the future of the company, Dean says, “If you’re passionate about what you believe in, those bumps in the road are just bumps, and you’ll continue and succeed. It may not be in dollars, it may not be in the fashion you thought, but you know you’ll succeed as far as you can go.”

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Today’s cosmetics junkies have endless options to find what they need, but it’s hard to imagine that just over 40 years ago, department stores and drugstores were about the only places to find beauty products. This was a reality for Lily Garfield, the driven, forward-thinking founder and co-chairman of Cos Bar, established in Aspen, Colorado, in 1976. Living in a dry climate at an altitude of 8,000 feet, Garfield recognized a need for quality skin care, which wasn’t accessible. “I saw how fast your skin can age,” she says.

A former Bloomingdale’s account executive, she applied her knowledge of the industry to do something that was quite radical at the time: she opened a beauty store. However, Garfield sought to create something different than what she experienced at the beauty counter of department stores. “I have seen everything in a department store—the greediness, the aggressiveness, the ‘Don’t go near my counter,’ ‘Don’t try my perfumes’; Bloomingdale’s back then was the epitome of everything I didn’t like,” she says.

“The thing that I always hear Lily saying, which I love and appreciate, is that her model from the start was to be the anti-department store,” adds Cos Bar CEO David Olsen, a down-to-earth, in-command and tech-savvy entrepreneur.

While the Bergdorfs and Saks Fifth Avenues of the world carried high-end cosmetics in the ’70s, Garfield says she was able to convince vendors to distribute to her because she wasn’t a threat to department stores. “I was 200 miles away,” she says.

“We’ve trained our staff to treat every customer the exact same way, and make her feel important regardless of what she’s wearing.”

–Lily Garfield, founder, Cos Bar

And unlike department stores that had a different sales model, with associates that represented a single brand, her employees could sell any brand in the store. “Specialists who leave department stores and come and work for us say that one of the best things about working at Cos Bar is that they are now free to sell across brands—giving the customer what’s best for them,” Olsen says.

In today’s competitive beauty retail landscape, Cos Bar continues to be a top luxury brand retailer while running a very smart omnichannel sales program, positioning itself for growth and expansion in the coming years. Its history, leadership, clear identity, customer service and relevant business practices all factor into making it a thriving beauty retail operation—now in its 41st year.

ELEVATING THE EXPERIENCE
Since 1976, the beauty industry has seen unprecedented changes. In the ’80s, many fragrance brands started cropping up, while the 1990s saw the emergence of makeup-artist-created brands like Bobbi Brown. But, Garfield maintains that some things never change.

“For the first two decades of business, everything was being catered to the baby boomers,” says Garfield, who predicts that millennial shoppers’ buying habits will one day follow suit of their boomer predecessors. “Every generation wants to be smarter than there parents, but it turns out, life repeats itself. I’m watching things change, but eventually I can still see that even this millennial generation will end up being like their parents.”

“It’s more about being treated well than what we sell.”

–David Olsen, CEO, Cos Bar

Garfield says that Cos Bar has not deviated from what she created 41 years ago. Its stores even carry many of the original brands, such as Lancôme and Guerlain. “I’ve always stayed true to what is in the best needs of the customer, not what the vendor wants me to [sell],” she says.

“Another thing that makes us unique is our luxury positioning,” Olsen adds. “A lot of people throw out the buzzword ‘prestige’ or ‘masstige’; we position ourselves at the top of that pyramid.”

Cos Bar carries a curated selection of upscale beauty products in an intimate boutique environment, one that Garfield describes as the “Cheers” of beauty—when a customer walks in, specialists know their name. “What we want to do with digital is really enhance that, so in the off chance [the specialists] don’t know their name, they’re able to look the customer up and see their purchasing history, using technology to enhance the overall experience between the specialist and the customer,” Olsen says.

THE IMPORTANCE OF OMNICHANNEL
David Olsen’s area of expertise is e-commerce. While attending law school at the University of Miami, where he received a joint JD-MBA degree in 2000, he was bitten by the entrepreneurial bug. “When I graduated I really didn’t want to be a lawyer. I was so excited about the internet,” he says.

That year, Olsen asked his dermatologist mother, Dr. Margaret Olsen, if he could build a website for her Los Angeles practice, which sold cosmeceutical products. Soon after, her office and garage served as the company’s warehouse. Because David didn’t become the tech mogul he’d dreamed of being (which he laughs about today), he practiced law for three years while still maintaining the website (“litigating by day and packing boxes by night,” he says).

“People think they can put up products [online] and become rich—but that’s not the case,” Olsen says.

His retail experience eventually led him to start his own e-commerce site in 2004 called DermTeam, which provided online solutions by selling white-label products and building websites for physicians, day spa owners, plastic surgeons and dermatologists. In 2009, DermStore, a competitor with more marketing and development support behind it, acquired DermTeam. Olsen grew DermStore exponentially over the next few years, which helped him land the position of global vice president for the Net-A-Porter Group in 2012, overseeing the launch of their beauty and grooming category.

While working for Net-A-Porter, Olsen connected with Richard Gersten, a lead partner at private equity firm Tengram Capital Partners and Cos Bar board member. Olsen asked Gersten if he was interested in investing in Cos Bar, and that if Tengram did make an investment, he’d want to be considered for the CEO role, he says.

“If you have a clear vision of where you’re trying to get to, it’s much easier to get there.”

–David Olsen, CEO

“I just saw a huge opportunity for omnichannel, the ability to sell in-store and online,” Olsen says. “I spent the first 17 years of my career saying, ‘Brick-and-mortar is dead. In digital, we can recreate what occurs in the beauty specialty shop.’ Clearly we can’t. If you look at conversion rate, online sales are 6 percent and in-store is 80 percent. There is clearly something very critical about the human touch.”
Garfield adds, “We still want to keep it much more high touch, as opposed to high tech.”

Olsen became Cos Bar’s CEO in February 2016, growing online sales from 2 percent to 15 percent in less than two years. “In today’s day and age, being omnichannel is critical. … I know a lot of people say omnichannel is an overused word, but until the experience online is the same or better than in-store, it’s still multiple channels—so, how do you connect them in a seamless way?”

RETHINKING RETAIL
Olsen’s main focus is ensuring that Cos Bar customers have an overall positive experience, whether that’s giving them the ability to buy online and pick up merchandise in-store, or guaranteeing that deliveries are received on time. But he’s also looking into new text messaging and online technologies to better connect with his target demographic.

Stella Connect is a digital tool that will soon be integrated into all Cos Bar locations, and is currently being beta-tested in the New York and Texas stores. Here’s how it works: About an hour after a customer makes a purchase, they receive an email from the beauty specialist that assisted them. The email includes a picture of the specialist and a friendly letter that includes personal information about him or her. The customer is then asked to rank their experience from one to five stars, and is given the ability to “buy” the specialist a cup of coffee, lunch or a spa day (which corporate pays for). For every five coffees a specialist collects, they receive an actual coffee; for every 10 spa days, they’ll earn a spa day.
“It’s connecting the customer with the specialist and giving us the ability to really congratulate and honor specialists who go above and beyond,” Olsen says.

Cos Bar also has its B. Cos loyalty program, where customers can earn points for every dollar spent after signing up with an email address and birth date. On the month of their birth, shoppers can redeem a complementary makeover and accrue additional points. The loyalty program has been around for just over a year, yet 84 percent of sales come from B. Cos members.

“When I look at technology, I look at three major things: Is it practical technology (will it enhance the experience between the customer and the beauty specialist)? The adoption rate (will people actually use it?); and, does it work?” Olsen says.

Cos Bar is now beta testing same-day delivery from its Brentwood, California, locale with a signature white Fiat, and plans to rollout delivery cars to other locations in the near future.

LOCATION, LOCATION, LOCATION
Though you’ll find most Cos Bars in affluent neighborhoods (think Vail, Colorado, Montecito, California, and Newport Beach, California), Olsen and Garfield believe that luxury is more of a feeling than a price point. Most customers are over 35 years old, but 20 percent are millennials.

“It’s more about being treated well than what we sell,” Olsen says. “… And if you’re going to splurge, you want the full effect: to be sat down, educated and have someone tell you the perfect products for you. We definitely don’t want to ostracize any group.”

Garfield adds, “Once we assess the socioeconomics of a community, not every [location] is going to be selling the $1,000 creams in an area you might call blue collar; but we’re still going to keep that image that we’re luxury. You can still be luxury and carry affordable products, but you have a choice of being treated nicely.”

Though brands like La Mer, Dolce & Gabbana, Estée Lauder, La Prairie and Sisley Paris are store staples, Cos Bar supplements its roster of about 80 brands based on momentous trends. For example, AmorePacific is for K-beauty fans. For customers seeking natural and organic products, they offer Tata Harper.

“If you’re going to splurge, you want the full effect: to be sat down, educated and have someone tell you the perfect products for you.”

–David Olsen, CEO

“Luxury is always what we look at, but what does that mean? Efficaciousness, positioning in the market, other distribution and a great founder story—all those things play into how we look at brands,” Olsen says.

For customers looking to meet brand founders and celebrity makeup artists and snap Insta-worthy pics, Cos Bar hosts in-store events, such as makeovers and master classes. Previous events have included visits from Giorgio Armani lead makeup artist Tim Quinn, Laura Mercier makeup artist Jay Halo, Tata Harper and Gwyneth Paltrow for Goop (which is available at the Montecito location). The brands also offer training for specialists two to four times a year. Managers attend training events as well, like the recent Tom Ford education summit in Laguna Beach, California.

“It’s critical to our business that [specialists are] very knowledgeable about everything we sell. We don’t have 500 brands; we only have 80 to 90 because we really want them to be comfortable and familiar with all the brands,” Olsen says.

Cos Bar’s 20th store opened in Dallas on December 13, 2017. “I’m making sure we’re opening stores faster, better, on time and on budget,” Olsen says, “making sure we’re as close to perfect as we can be. I think that’s what my first two years were about—setting the foundation to give us the ability to scale.”

Utilizing private equity backing, in 2018, eight more stores are expected to open their doors, with another 12 projected for 2019, and 15 to 20 more in 2020. With each store opening, the design becomes more refined. The sleek Oklahoma City, Oklahoma, locale has pale pink walls that have brought a fresh update to Cos Bar—now the Carmel, California store will soon be remodeled to reflect this new look.

“[Garfield] is truly the pioneer in specialty luxury beauty,” Olsen says. “She was doing this so far ahead of everyone. Timing and location is everything, but the fact that she had a family-run business for 39 years—very successful for any business, much less in the beauty space where things change all the time—is absolutely amazing.”

TIPS FOR SUCCESS
Cos Bar founder Lily Garfield and CEO David Olsen share their tips for entrepreneurs.

Set Realistic Goals:“You need to have tangible goals so you can reach them,” Olsen says. “A lot of people say, ‘I want to be a millionaire,’ but that’s not a goal. How are you going to get there? I write down my goals and I stick them on my mirror one at a time, and knock them down one at a time. If you have a clear vision of where you’re trying to get to, it’s much easier to get there.”
Be Passionate:“The founder has to be very passionate, whether it’s in retail or coming into a new product. You’ve got to have tough skin to say, ‘I believe in this, this is going to work and I know I can be successful at it,’” Garfield says.
Don’t Give Up:“Just because you love beauty doesn’t mean you’re going to be an incredible beauty entrepreneur. It is a lot of hard work. It is a lot of constant learning and a lot of dedication,” Olsen says.
Know the Market: Garfield stresses that basic marketing 101 is all about knowing supply and demand. “Make it sparse, and it becomes much more important,” she says.

Beauty Store Business's interviewed CEO David Olsen to talk about Cos Bar's omnichannel strategy and plans for expansion in the future. For more information on Cos Bar, visit cosbar.com.

[Videography and photo by Jason Bennett]

In 2015, the American Academy of Dermatology noted that “nutricosmetics–the use of nutrition or nutritional supplements for skin health and beauty–is popular abroad and may be the next frontier for improving skin health and beauty in the U.S.” The prediction turned out to be prescient. The Business of Fashion reported last October that the beauty supplement category has doubled within the last two years. A 2016 survey from the Council for Responsible Nutrition (CRN) found that 26 percent of those who use supplements for a beauty boost are ages 18 to 34 (compared to 17 percent ages 35 to 54, and 14 percent over 55 years old), meaning the future of the category looks bright.

Last June, Global Industry Analysts reported that the global nutricosmetics market was projected to reach $7.5 billion by 2024, and points to myriad factors at work behind the surge: a consumer emphasis on less invasive beauty treatments; a growing interest in preventative care due to skyrocketing healthcare costs; and the health and wellness megatrend, fueled by manufacturers who are offering consumers new pathways to beauty from within. The report even suggested that male consumers would be increasingly susceptible to appearance-enhancing supplements.

The category is projected to continue growing. “The beauty supplement business is still relatively small. In the $18 billion prestige beauty market in the U.S., beauty supplements represented just $13.1 million–but most industry insiders are betting on growth,” says Jonny Bowden, PhD, CNS, a Los Angeles-based nutritionist, speaker, consultant and author of 15 books, including The 150 Healthiest Foods on Earth. “The CRN’s 2016 consumer survey on dietary supplements found that nearly one-fifth of supplement users in the U.S. already take supplements for skin, hair and nail benefits.”

INGESTIBLES ON THE RISE
Beauty stores are accustomed to meeting customers’ every beauty need–but are they satiating their growing hunger for ingestibles? Topical products for hair, skin and nails are stalwarts of the industry, but it’s becoming an increas- ingly good idea to also stock up on products that promote beauty from within. Sephora, for example, recently added Moon Juice powders to its already robust lineup of supplements designed to fix issues from acne and sagging skin to thinning hair and dark undereye circles.

After all, with more consumers aware of the link between their inner health and outer appearance, they’re beginning to seek solutions outside of the latest topical treatments. “I’m a big believer in the idea that beauty starts from the inside out, just as aging does,” Bowden says. “Superficial fixes like skin creams and wrinkle-hiders may temporarily improve the look of the skin–or, more correctly, may help camouflage the signs of aging and wear–but the regeneration of healthy skin, and the moisturizing of skin in general, really has to start from within.”

Esther Blum, MS, RD, CDN, CNS, an integrative dietician, holistic health expert and author of Cavewomen Don’t Get Fat, based in Weston, Connecticut, agrees that more and more consumers are making the correlation between wellness and beauty. “Topical products are great at treating the symptoms,” Blum says. “But if you want to reverse or cure what’s creating those problems, you have to start from within.”

Don’t fret; no one’s going to toss those high-end, age-defying creams just yet. Bowden emphasizes that supplements aren’t necessarily more or less effective than topical products–they simply work in different ways. “We do know that substances can be delivered to the body transdermally (through the skin), but how much active ingredients can be put into skincare products vs. how much can be ingested through supplements is an open question,” he says. “I’m a big believer in building the infrastructure first, and in skin and beauty, the infrastructure starts at the cellular level. That’s where nutritional supplements can really shine.”

INGREDIENT INTELLIGENCE
Looking for certain key ingredients in beauty supplements can help you select the optimal options for customers. According to Bowden, supplements that help build collagen–the most abundant protein in the body, important for connective tissue like skin and joints–are good bets for promoting beauty from within. In years past, people were taught that collagen supplements couldn’t be absorbed when taken orally, “but that’s old information,” he says. “High-quality collagen supplements can very definitely be absorbed, and a fair amount of research shows improvement in skin and joint health with the proper use of the right kind of collagen supplements. I think daily collagen supplements can go a long way toward helping to stem the destruction that comes from having smaller and smaller collagen stores.”

Bowden notes that there are more than a dozen different forms of collagen, but only three are important for the human body. Collagen types 1 and 3 are more targeted to the skin, while type 2 is helpful for joints. And Blum adds that many protein powders now often contain collagen as well–an ideal way for those who already use these formulas to receive an extra beauty boost.

Omega-3s, Bowden believes, can do more to improve the skin, hair and nails than any superficial “fix” thanks to their anti-inflammatory properties. After all, inflammation “is a promoter, an accompaniment or cause within virtually every degenerative disease on the planet, from heart disease to diabetes to arthritis,” Bowden explains.

Acne outbreaks, too, are related to inflammation, so anti-inflammatory ingredients can help the skin. His top ingredient picks? Fish oil, which boasts two omega-3s (EPA and DHA), or alpha-linolenic acid (ALA), found in flaxseed and chia seeds.

Blum also advocates omega-3 fatty acids, which hydrate and plump skin cells, and keep blood vessels flexible and fluid (ideal for those prone to capillary damage). Because of their anti-inflammatory properties, they can be helpful for customers with rosacea; she recommends at least 2 grams, or 2,000 milligrams, per day.

As environmental stressors, styling tools and aggressive products take their toll, keratin has become a popular supplement for creating healthier-looking locks. “Keratin is the main structural protein in the hair,” Bowden explains. “There’s an awful lot of anecdotal evidence showing that keratin supplements can make a big difference in its appearance, thickness and luster.” Nails are also made of keratin, so these supplements may make dry, brittle nails longer and stronger.

Meanwhile, biotin is a B vitamin often used to improve the look of hair, skin and nails. Biotin strengthens the bonds in this trio of beauty indicators since keratin creation requires biotin. “For those who are low in this vitamin, it’s really hard to have lustrous hair and strong nails,” Bowden explains. “And, even if there’s no deficiency, extra biotin through a supplement can
help with those areas.”

Finally, experts agree that probiotics help with overall health, which translates to healthier skin. Blum thinks of skin as “your gut walls turned inside out–a direct reflection of what’s happening inside, either digestively or hormonally,” and probiotics are especially helpful for people with eczema, psoriasis and acne. “Probiotics are the healthy bacteria that live in your gut, and I recommend anywhere from 25 to 50 billion a day. Most people are taking 1 billion, which is what would be found in a kombucha tea,” Blum notes. “If someone says, ‘I don’t know where to start,’ always start with a probiotic.”

Bowden agrees that probiotics are essential for a healthy gut and, therefore, healthy skin. “We now know that the gut is central to just about every health condition we can imagine,” Bowden says. “A lot of this is connect the dots, but because we have studies linking the health of the flora that lives in your gut with a host of issues, from obesity to depression, and we have studies that show the gut and mind connection, it’s not a big leap to believe it also affects your appearance.”

FINDING YOUR FORMULAS
With so many varieties available, how do you select the right supplement providers? Outside of seeking specific ingredients, look for companies that can be true partners when it comes to the oft-complicated world of supplements. Seek continuing education or perform your own research (using trustworthy sources) on the basics of supplement ingredients and what they do.

Blum also advises working with companies that have solid, scientific research, such as peer reviews or literature, behind their claims. Or work with a local registered dietician or nutritionist to select the right formulas for your store. Finally, check ingredient lists. “I think when the fillers on the ingredient label are longer than the active ingredients, when there’s chemical dyes or ingredients you don’t recognize, that’s a warning,” Blum says. “Supplements shouldn’t have a lot of binders, colors or fillers.”

Ultimately, with the right partnerships, products and customer education, beauty stores can successfully tap into the beauty-wellness market–and potentially change customers’ health in positive ways. “If, as industry insiders project, this is a growing market, it makes sense for beauty stores to carry all the things marketed for the same purpose under one roof,” Bowden concludes. “After all, beauty supplements certainly target the same demographic as those looking to buy antiaging skin creams!”

ONES TO WATCH
Looking for additional ingredients that can help to boost beauty? Esther Blum, author of Cavewomen Don’t Get Fat, recommends the following.

• Borage or Primrose Oil: Contains gamma-linolenic acid (GLA) which helps control sebum production for those with acne. It hydrates and moisturizes from within
• and regulates the hormonal balance.
• Astaxanthin: A specific type of red algae that pink flamingos and red salmon eat to give them their signature pink color. In humans, the ingredient provides a natural SPF of about 5 when taken orally, but it’s also a great anti-inflammatory and antioxidant.
• Diethylaminoethanol (DEAE): For tightening and toning the facial contours, (DEAE) helps boost neurotransmitter production, so it aids both brain and beauty. Think improved cognitive function and anti-sagging capabilities.
• Hawaiian Spirulina: A great detoxifier to counteract the effects of mercury or mold exposure, which makes people sick and causes everything from undereye circles to liver issues.
• Zinc: Use for inflammation, especially rosacea and acne–and most people are deficient due to a high-sugar diet, high stress and poor gut function. Try ionic zinc in 25- to 50-milligram doses.

 
THE NUTRITION FACTOR
Educate your in-store and online shoppers by sharing these nutritionist-approved tips. Esther Blum, an integrative dietician and holistic health expert based in Weston, Connecticut, points out that supplements are just that–a supplement to a healthy diet and lifestyle. While you’re not expected to staff a nutritionist at the beauty store, you can share this expert’s tips with your customers for glowing skin and stronger hair and nails. (Please note: Recommend that customers consult with their physician before making any dietary changes.)

1. Sugar accelerates aging. It’s super inflammatory and causes collagen molecules to stick together, which can accelerate the wrinkling process from within. Avoid it as much as possible!
2. Wild Alaskan salmon is loaded with DEAE and astaxanthin.
3. Green leafy vegetables, or any veggies, are high in antioxidants.
4. Wild blueberries and other berries are loaded with antioxidants and have anti-inflammatory properties.
5. Get high-quality protein. Ditch the factory-farmed meats in favor of pasture-raised meats, such as chicken (and eggs) raised on grass. They naturally contain omega-3s.
6. Incorporate nuts and seeds, which are loaded with healthy fats.
7. Choose oils carefully. Oils can be temperature sensitive, so for high-heat cooking, try avocado or coconut oil. Olive oil is great for low- to medium- heat cooking. For baking, use real butter (stay away from margarine and other fake foods), coconut oil or avocado oil. Never use canola, sunflower or safflower oil, which are highly inflammatory–even if they say organic.
8. Sweet potatoes and winter squash reduce inflammation. They’re slow-release carbs, and very low in sugar.
9. Bone broth, slow-cooked at a low temperature for 18 to 24 hours (or purchased from a local butcher or retailer), supplies collagen and heals the gut wall.
10. Fresh herbs, from basil to parsley, help detoxify the liver.
11. Struggling with acne, rosacea or any other skin condition? Avoid gluten, most grains and dairy; these changes often clear up 90 percent of the problem.

[Photo by Maciej Frolow/Getty Images]

In the beauty industry, credit used wisely can be a profitable friend; used carelessly, it can be a destructive enemy. When your business has an excellent credit score, you are likely to be offered the most favorable interest rates if you need a loan. Equally important, suppliers and vendors will be inclined to extend their most attractive terms, and your business is likely to be well regarded by the business community–all of which makes it more attractive to customers and prospects.

On the other hand, a poor credit score can seriously damage your reputation and hamper your store or salon in a number of ways. Here are some important things you need to know about business credit.

PERSONAL VS. BUSINESS CREDIT
In order to build a good business credit score, it’s important to understand the differences between personal credit and business credit.

As individuals, as soon as we receive a Social Security number and apply for our first job, the three major credit-reporting agencies start tracking our lives and building our personal credit profile. Any firm that issues credit will usually report their experience with us to the credit reporting agencies. The eventual result is a report that ranks us personally in terms of credit risk.

Manage your business debt carefully, especially credit card debt.

While business credit works the same in many ways, it differs in others. Information about business credit transactions is gathered by the business credit agencies to create a business credit report. Identification includes business name and address, and Federal Tax Identification Number (FIN), also known as an Employer Identification Number (EIN), issued by the IRS. The business credit bureaus use this information to generate a report about a company’s business credit transactions. In many cases, companies that issue business credit will rely on the business credit report to determine whether they will grant the applicant credit and how much credit they are willing to give.

Keep in mind, too, that if your personal credit reports are mixed with your business reports, any problems with your personal credit may make it difficult, if not impossible, to obtain credit for your business.

An important difference between business and personal credit is that business credit information is sent to the business credit bureaus on a strictly voluntary basis. Because of this, the credit bureaus may receive little or no information about your credit worthiness--no matter how long you’ve been operating your store or salon and no matter how well you have handled your business credit. That’s why it’s to your definite advantage to take steps to create a positive business credit rating.

ESTABLISHING A BUSINESS CREDIT REPORT
Once you have established a positive credit score with the business agencies, it will be easier for you to acquire future lines of credit and get favorable terms on leases and loans. Any time you apply for a lease or a loan from a financial institution, the bank and most landlords will check your credit score before acting on your application. In almost any type of business transaction, a favorable credit history will give your business a reputation for financial stability.

It’s easiest and safest to establish a business credit report if your business is structured as a corporation or LLC with a Federal Identification Number (FIN) or Employer Identification Number (EIN) issued by the IRS.

It’s best to build up a history with one card before applying for another.

If you’re operating as a sole proprietorship or partnership, your business credit information could be mixed in with personal credit data and vice versa, muddying up the credit waters. In addition, sole proprietors and partners are personally responsible for the debts of the business, putting all personal assets at risk.

Keep in mind that credit-scoring models used by the credit bureaus are complex and not revealed to the public. Therefore, it’s impossible to know exactly which factors affect credit and to what to degree. However, the steps outlined here are generally regarded as those that will help you to build a positive credit score.

First, register your business with the business credit bureaus. The major business credit bureaus are Dun & Bradstreet (dandb.com), Experian Business (experian.com) and Equifax Business (equifax.com).

Registration with Dun & Bradstreet using your legal business name is free and will provide you with a DUNS number. The DUNS number is a unique nine-digit sequence recognized as a universal standard for identifying and keeping track of the over 100 million businesses in the D&B database. Once you register, you will probably be solicited to purchase a full credit profile; current list price is about $549. While there are some advantages to buying a full credit profile, it isn’t at all necessary to do this. Simply registering at no cost will enhance the credibility of your business with potential creditors and enable suppliers and lenders to learn something about your business.

Of the big three, Dun & Bradstreet is the only bureau that focuses exclusively on business credit, and they focus primarily on how a business interacts with vendors and other suppliers.

Once you have registered your business with the major credit bureaus, you can take steps to build a positive business credit report. Almost every beauty-industry business owner will need to ask for credit at some point. By building your business credit score early, you can avoid having to use your personal credit history or a personal guarantee in order to get the best possible terms when you apply for credit or a loan.

7 TIPS TO BUILD YOUR BUSINESS CREDIT
Here are some valuable tips to help your credit work for you and your business, not against you.

1. Be certain to ask any company you have a favorable credit history with to report their experiences to the business credit bureaus to help you build your credit reputation. Remember, there is no requirement for them to do this. Unless you ask, it probably won’t happen.
2. Make sure that your business meets all state, federal and industry requirements for conducting business. It’s important to build your business credit under a Tax Identification Number, not your personal Social Security number.
3. Make sure that your business has a current business plan. While a business plan isn’t always required in credit situations, having one, along with supporting documents, is one of the most widely accepted ways to demonstrate a solid management approach. This, in turn, enhances the roadway to a high business credit score. Your business plan does not have to be a lengthy and complicated document, but it should contain the basic goals of your business and it must be in writing. For help in creating a business plan, log on to sba.gov.
4. Make full use of business credit cards. If you decide to open more than one business credit card, avoid applying for them all at once. It’s best to build up a history with one card before applying for another. Careful use of business credit cards will add to your credit history, make purchasing quick and easy, and help to simplify and monitor your bill payment procedures.
5. Avoid large credit card balances. Outstanding balances larger than about 25 percent of your credit limit are a red flag to financial institutions.
6. Eliminate pre-approved credit card offers from your mailbox. These packages offer a temptation to identity thieves who might try to open new credit accounts in your name or the name of your business. Once they get their hands on such a piece of mail, they can complete the offer by listing a different address. That’s all they need to have an account opened in your name without your knowledge. Fortunately, there is a way for you to opt-out of these credit offers. Just visit the official Consumer Credit Reporting Industry website at optoutprescreen.com or call (888) 567-8688 to opt-out via telephone.
7. Manage your business debt carefully, especially credit card debt. While it’s not always easy to get favorable credit transactions reported to the credit agencies, credit card issuers are unerringly diligent in reporting problems with an account. Any failure on your part to make credit payments on a timely basis will almost certainly be reported to the credit bureaus. This, of course, will result in a negative effect on your credit score. Despite the inherent risks in the use of credit, there is no practical way for a business owner to avoid it. Fortunately, credit in itself is not harmful, and when used skillfully, it can be one of most valuable business tools available to you.

[Photo/Colin Anderson]

Hair art has become a fun and creative trend for barbers, stylists, and artists alike to show off their skills. Adding color to the art brings the piece to life. For smooth color pencil art finish, the quality of the pencil is always a must to determine how long the color will last. Vibrant colors allow for the art to really pop and be seen from across the room. The colors are sweat and water proof so they can even be seen underwater! The silky, long lasting application will give the work of art a run for its money.

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Eric Horn’s involvement with the Professional Beauty Association (PBA) began so long ago that the organization wasn’t even formed yet. Now, nearly 23 years later, he serves a dual role: associate executive director of business development and North American trade show director for North American beauty events, including Cosmoprof North America (CPNA). Coming from the hospitality industry, where he coordinated conventions, the transition to trade show guru was perhaps natural–but in the beauty business, and the PBA in particular, he found a lifelong home.

It helps that PBA, as a powerful industry advocate with 50,000-plus members, never fails to keep Horn on his toes. Always on the lookout for improvement and innovation in the events arena, Horn ensures that each year the PBA’s mega-shows, International Salon & Spa Expo (ISSE) and CPNA, wow attendees and exhibitors alike. Beauty Store Business recently caught up with Horn to learn about his fated journey to joining the PBA–and what’s in store for the organization and its iconic trade shows this year.

A TURN OF EVENTS
Before the PBA, earlier organizations acted as industry advocates, including the Beauty & Barber Supply Institute (BBSI) for distributors, which held its Winter Buyers’ Conference (WBC) every January. In 1993, it landed at the Grand Hyatt Washington in D.C., and Horn, then employed at the property, became the convention services manager assigned to the account. “I took care of the entire show, from the day it was contracted to the final farewell,” he recalls. “Back then, BBSI had nine employees working in Fairfield, New Jersey: executive vice president Fred Polk, one general manager and several employees who ran the association and its events.”

The following year, fate would continue to work in strange ways. The WBC moved across the country, to the Manchester Grand Hyatt in San Diego, California, where Horn had been transferred; naturally, the BBSI group was again assigned to him. After another successful event, Polk took Horn to dinner and offered him a job for $1,000 more than his salary at the time; but, at 29 years old, a former lifeguard liv- ing four blocks from the beach and finally earning a livable wage, Horn was hesitant.

A year later, he’d be promoted to associate director of catering and convention services of the Hyatt Burlingame in the San Francisco area. In town for a board meeting, Polk invited Horn to lunch. “I pulled up in my new car, a gently used, spotless, white 1989 BMW convertible, roof down, radio blaring, and saw his face; it was priceless,” Horn laughs. “I had an idea he was going to ask again, so pulling up in a seemingly expensive car gave him pause; he thought he knew my salary.”

Still, Polk remained persistent–and came armed with a better offer. Though he now admits his “amazing” raise would be a pittance by today’s standards, he was excited for the new adventure. Fittingly, there would be one more twist in the tale as Polk threw in a minor detail: The entire association was moving to Scottsdale, Arizona. Horn told himself he’d take the position for two years, max, and move on.

FAMILY TIES
In August 1995, seven of the original nine BBSI employees moved to Arizona; the team added an assistant for Polk, and an accountant named Steve Sleeper (now executive director of the PBA). In 1999, still operating as BBSI, the organization built its 20,000-square-foot member headquarters. With 15 employees, it occupied half of the building; today, it’s 75 percent, with more than 35 employees, a state-of-the-art conference center and the PBA Foundation’s heritage museum.

PBA was eventually formed by the merger of BBSI and the American Beauty Association, and incorporated The Salon Association in 2002 and the National Cosmetology Association in 2010. “It’s unified; we represent the entire beauty industry,” Horn explains. “I think my favorite part of the journey has been the relationships I have with our members. I pretty much grew up in this industry, and they’ve seen me through family crises, my personal bests and disappointments, and our collective successes. It’s a family atmosphere.”

Over nearly a quarter of a century, Horn has held several positions with PBA, all geared toward trade shows and events. He notes that events and membership are the two revenue-producers for the association–and all proceeds go straight back to the industry in the form of education, charitable outreach, government advocacy, unique events and more. “Many see us as an event producer, and that’s only a portion of what we do,” Horn says. “We’re the largest organization of salon professionals, with members representing salons/spas, distributors, manufacturers and beauty professionals. The event production simply aids our greatest efforts, which fall under government advocacy and protecting our members.”

On May 15, Horn will celebrate 23 years with the association; he and Sleeper are the last men standing from the small team that landed in Arizona. But the connections he’s forged remain indelible–and he has no plans to leave his beloved beauty family. Horn even married into the industry. His husband, Inigo Uriarte, is a hairstylist, offering a built-in source for feedback and advice when needed. “Since Fred Polk hired me, I felt like I was adopted by the beauty industry and allowed to work with the most creative and passionate people,” Horn marvels. “Our members are special people, they care and they use their passion to change the way we look, feel and act. No other industry can do this. It has been the most incredibly enriching experience, and I’ll continue working in this industry for as long as I have something to contribute and as long as they’ll have me!”

MAIN EVENTS
Despite its ultimate goal of industry out- reach, events are a massive undertaking for the PBA–and Horn is at the epicenter, continuously working on the following year’s events in the office, visiting a show site, traveling to other industry shows or meeting with possible sponsors or partners. “We try to bring the most current programs to CPNA, because we know our audience (both professional and retail) demands it,” Horn says. “I’m traveling lately more than I’m in the office; the downtime that used to exist is long gone.”

The demands are indeed fierce, as PBA strives to work years in advance of each event; for both ISSE in Long Beach, California, and CPNA in Las Vegas, Nevada, the organization has space on hold for shows until 2028. Teams in Las Vegas, Milan and Scottsdale constantly seek to institute relevant, unique and cutting-edge projects to elevate the experience for attendees and exhibitors alike. “In the beauty industry, things can change in the blink of an eye, so to stay current, we normally work on the upcoming show logistics the day we end the previous show,” Horn says. “It’s a cycle that never changes, but thankfully, the details never remain the same. Boredom would come quickly, and I’m sure I would have never stayed this long.”

Luckily, CPNA alone has pioneered a slew of projects to wow its whopping 35,000 attendees. For example, Discover Beauty was a first-of-its-kind curated event, matching independent brands with select buyers. Meanwhile, the professional section boasts Discover Green and Green Leaf, Discover Scent, Discover Spotlight and Tones of Beauty. And CPNA’s two newest areas include Discover Pack in the packaging section and the Discover Pro Beauty in the professional section. (Discover Pro Beauty is another curated area, for manufacturers seeking distribution and guaranteed meetings with buyers–and PBA welcomes interest from larger OTCs, as well as unique brands, to participate.)

Another successful, yet still growing, program is the OTC Program, which offers two complimentary three-day show badges per store for qualified beauty store owners. Each store may have up to two people attend, and multiple stores can register with different addresses. (Contact your manufacturer rep to be placed on their list of eligible OTCs.) Each exhibitor also has five free VIP tickets to give away to eligible buyers–and Horn notes that many of these go unused, so check with your manufacturers!

For 2018, the PBA show train presents no signs of slowing down. Susan Howard, PBA’s director of events, is now spearheading ISSE, with valuable feedback from member exhibitors and attendees helping boost benefits. This year, Horn hints that the show will feature some exciting changes: the introduction of The Playground, with short, single-technique, hands-on classes; a Wellness Room, with classes centered around stylists’ well-being; and a new event on January 28 named The Blow Out, which will host a reception followed by a program featuring the Leading Ladies Panel and a Beauty Underground artistic presentation. “This is the one time I would tell all participants not to miss this event,” Horn enthuses. “Not only do we have the outstanding and impressive lineup of Leading Ladies and a presentation to rival all others from Beauty Underground, there will be a special, not-to-be-missed announcement about the future of ISSE.”

Meanwhile, at CPNA 2018, attendees can expect a streamlined floor space that Horn expects to retain for years to come. “We’ve changed the layout and moved our popular areas to positions on the floor that will give smaller manufacturers more traffic and visibility, and we’re working very hard with manufacturers to keep them on the show floor and not to utilize the hotel rooms and suites,” Horn explains. “We don’t want the OTCs, buyers and reps taking a great deal of time out of their day to travel to and from the show floor, losing time for the valuable business on the show floor.”

INTO THE FUTURE
So what’s next for the PBA and its ever- evolving orbit of industry efforts? Horn promises some changes, both subtle and substantial, in the coming year. First, the PBA will be channeling its efforts toward the licensed professional, putting more focus on their education and careers–hence ensuring heightened value of membership. “We’re not forgetting about our B2B members, either; that’s where my position as associate executive director of business development comes into play,” Horn adds. “I’ll be looking for new shows, new ideas and new ways for our members to do business. My position was created to bring more revenue and opportunities to members, so I welcome any suggestions for the next great idea!”

True to this ever-changing industry, the PBA is also updating its look–both in print and communications. Even its website is getting treated to a makeover; this year, PBA will debut a new site designed to improve the member experience and provide a sleek, modern feel (which is already in the works). And, of course, Horn continues to hone PBA events for unforgettable experiences. “The talented people who work in our events area, along with myself, know we are only as good as our last event, so we always look to impress and provide the best we can,” Horn says. “This industry is special, and we all have a common bond: to help people be their best.”

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HELPING HANDS
Here’s how you can make a difference by donating to the PBA’s Disaster Relief Fund.

From Hurricanes Harvey and Irma to California’s wildfires, the nation–and world–took some hard hits from Mother Nature this year. Thankfully, members of the beauty industry have somewhere to turn: PBA’s Disaster Relief Fund, funded by members and dedicated to helping those affected by hurricanes, floods, tornadoes, snowstorms and other misfortunes. “One hundred percent of funds donated go directly to beauty industry professionals, member or nonmember,” Horn says. “We’re in this together, united by beauty.”

In the wake of recent disasters, the industry has (as always) responded generously; the fund has distributed a whopping $315,000 to those in need. But PBA still has 500-plus individual unfunded requests. And, as memories of recent disasters fade, there’s been a drop in donations. “Please keep the money coming in. If you have prospered in any way from this industry, please give back to help those who now need it,” Horn explains. “It’s a tough request, to ask for money when there is no actual disaster, or the disaster has passed, but that’s what must be done to continue to help and be at the ready for the next catastrophe hitting our members.” To help, donate to the Disaster Relief Fund or the other charities officially sanctioned by PBA, Cut it Out and Look Good, Feel Better.

PBA AND COSMOPROF NORTH AMERICA FAST FACTS
Cosmoprof North America (CPNA) is a joint venture between the Professional Beauty Association (PBA) and Italian trade show organizer, BolognaFiere Sp.A. (BF).

• NABE: PBA and BF created a joint partnership in 2002 called North American Beauty Events, LLC (NABE). NABE was initiated to bring relevant events to the North American market. Currently, Cosmoprof North America is the main focus of NABE.
• BF: BF has a U.S. office in Las Vegas, which currently handles strategic marketing for CPNA. BF also has offices in Bologna and Milan that handle the CPNA sales for all international exhibitors with the exception of Canada and Mexico.
• PBA: PBA holds the overall management responsibility for CPNA as well as the North American sales activity (US/Mex/Can).
• CPNA 2017: 1,250+ Exhibitors and 30,000 Attendees
• Expected for CPNA 2018: 30% International Attendance, 70% Domestic Attendance

Renegotiating a commercial lease can be daunting. At best, the whole process can feel like a necessary evil that you can’t wait to move on from. However, when you cruise through your lease renewal without considering all the terms, and most importantly negotiating them, you are actually damaging your business and hurting your bottom line. As a tenant, you have much more power than you think you do–the key is realizing it and proceeding confidently.

To find out how to make your lease work best for your business, Beauty Store Business spoke with Dale Willerton, the CEO and founder of The Lease Coach and the coauthor of Negotiating Commercial Leases & Renewals for Dummies.

TYPES OF LEASE RENEWAL
There are two different kinds of lease renewals: Either your current lease is expiring and it’s time to renegotiate a new one to remain in your space, or you are midway through your current term but can’t afford the rent as-is. There are steps you can take in both situations in order to reach an agreement that fulfills your needs.

If your lease is expiring and you want to negotiate a lease renewal, make sure your landlord pursues you, and not the other way around. “The tenant is the customer to the landlord,” says Willerton, who cautions against oversharing with your landlord’s team. “Too many tenants will call up the property manager and say they want to make renovations, or ask how to get their lease renewed,” he says. Statements like these can hurt you–the landlord knows they don’t have to work to re-earn your tenancy. Then, they can raise your rent because you’ve already revealed that you plan to stay.

Instead, when a landlord approaches you for a lease renewal, ask questions like: “What are you prepared to do? What incentives will you provide to keep us here?” As Willerton phrases it, “There are lots of other fish in the sea; there are lots of other properties.”

As a tenant, it’s crucial to approach your lease renewal as if you might have to move. “And if you might have to move, do your homework and find out what else is available,” he adds. This all leads us to the crux of making yourself attractive as a tenant, which creates competition for your tenancy.

If you find yourself in the alternative scenario, where your rent is no longer feasible for you, don’t despair. Instead, communicate with your landlord so they understand where your business stands. “It will all come down to your P&L,” Willerton says. “You have to be able to show the landlord you simply can’t afford the rent and you need rent abatement.”

In this situation, being up-front is the best advice. “You’ve got to know what your business is doing if you want your landlord to believe you have a future there,” he says. It’s OK to show your landlord that business is down 7 percent, to clarify where you’re coming from. “Having a bookkeeping sense about you is important,” says Willerton.

COMMON PITFALLS
Once you’ve established that you need a lease renewal and are beginning the process, proceed with care. There are common missteps that first-time business owners tend to make. “Letting the real estate agent represent you is a big problem,” Willerton says. “If a tenant was having legal problem with a landlord, you wouldn’t share their lawyer, so why would you share their real estate agent?” The agent wants a good deal for the landlord. Even if you get your own agent, both are splitting a commission from the landlord. “So the game is rigged against you,” Willerton adds. “Tenants are often a bit naive and think everyone’s trying to help them, but landlords are trying to help themselves.”

Another common mistake business owners make when entering a lease renewal negotiation is not asking for what they want–or even knowing what to ask for. This is why you must do your research. “Business owners don’t know what to ask for, so they don’t ask for very much,” Willerton says. Although it is common for landlords to offer six to nine months of free rent, many tenants are too afraid to ask for it or don’t know that they can.

Not only should you speak up, but don’t get discouraged if you get turned down–no doesn’t necessarily mean no. “This isn’t a dating situation, this is a real estate negotiation,” says Willerton. “Sometimes you have to ask more than once, you have to ask in different ways or you have to walk away from the negotiating table.”

Having worked with landlords for many years, Willerton has direct experience with this. “You never get their best deal when you’re sitting at the table. You only get their best deal when you’re walking out the door,” he offers. Don’t be afraid you will lose the location or alienate your landlord by negotiating. “You just have to be confident. You have to do your homework,” he adds.

THE DOS AND DON’TS
DO: Start Well in Advance
When you’re about to negotiate a new lease or a renewal, you want to give yourself enough time from start to finish, without ever having to rush through it. “Start well in advance,” says Willerton, who explains that the entire process usually takes much longer than the tenant realizes. “The tenant wants to get it out of the way. It’s a nuisance. But for the landlord, all they do is make deals. So they’re prepared to go 10 rounds.” Starting early will also allow you to better assess your needs to find exactly what you’re looking for.

DO: Negotiate on Multiple Sites
“These are the most important words I can say,” Willerton begins. “The average entrepreneur finds a location, falls in love with it and focuses on it 100 percent. Consequently, they don’t create any traction or competition as a tenant,” he explains. “What I say to my clients is, even if you’re renewing a current lease, give me two or three other locations ... that you would consider moving to if this other deal didn’t work out. If I can create a bidding war and position one landlord against the other, then they are competing for your tenancy,” he says. The main takeaway is, that as a customer, you have a choice. Negotiating for multiple sites at the same time is what gives you leverage over your landlord.

DO: Research the Area
You should always find out about the tenants, both current and former, in an area you are considering. Don’t just find out who they are, follow up and ask questions about their business. If they left, was it because business was poor in that area, or did they just move to a different property? The answer could reveal issues that would affect your chances of success. “The average tenant does almost no homework,” says Willerton. “They don’t know how well the building is doing or how well the property is doing.” Though you may not know this information, the landlord does. It’s your responsibility to find out by asking questions.

DON’T: Miss the Chance to Speak Directly with the Landlord
A typical agent will create a barrier between you and the landlord, so you never even speak directly. “My strategy is to bring the tenant and the landlord together,” says Willerton. You want to familiarize yourself with the land- lord’s personality before you sign your lease. Don’t ever question whether it’s inappropriate for you to talk to the landlord–a good landlord should want to talk to you.

“If they won’t meet you now, during the courtship, are they really going to meet with you when the roof is leaking? There are signals and we have to respect them,” says Willerton, who encourages going with your gut.

On the other hand, don’t let kindness blind you. “It’s easy to misinterpret the signals,” he adds. He cautions against thinking, “They are treating me so well, I might as well sign.” Don’t gloss over the facts–though the landlord is actively courting you as a tenant, ask yourself if this area is the best location for your business.

DON’T: Let Your Lawyer Negotiate
While it’s often in your best interest to hire a lawyer to review your documents, you should not let a lawyer nego- tiate the terms. “My personal experience is, most lawyers are not great negotiators,” he says. It’s important to know when and where to employ legal help, and not use a lawyer as your crutch throughout, adding, “Landlords see lawyers as deal killers, not deal makers.”

DO: Consider the Details
When going through the lease renewal process, it’s important to consider all details. “Make sure you negotiate your parking, signage and your permitted-use rights because these are things tenants take for granted. All of this needs to be written down,” says Willerton, who cautions against being too casual with your lease. A lease agreement can be anywhere from five pages to 55 pages, but in general the longer the lease, the better. “You want a lease agreement to cover all the bases,” he explains. If you own a salon or will be renting out chairs, it’s also important that your landlord understands this, as the practice could be considered subletting–and thus implicitly breaches the terms of your lease. The landlord won’t necessarily push back against this business model, but they have to be aware of it. Willerton suggests asking: “Is subleasing permissible and is that something you allow for?”

Though it can be overwhelming to begin the lease renewal process, it’s important to take it step-by-step, always considering the bigger picture and knowing your worth throughout. “Negotiating a commercial lease can feel foreign,” says Willerton, “which is why it’s natural to make mistakes.” However, he explains, “This can really affect the value of your business over time.” If you go into your renewal confident and informed, you can set the terms that work best for you, which means greater success for your business.

The business of bringing a beauty product to market is full of excitement, from branding, product development and marketing to surveying retail options, generating consumer interest and making the sale. And then, there’s the other side of the beauty business; getting the product to the customer. Although, this side of the business can seem dull and secondary, it shouldn’t be overlooked. Before a brand even considers generating sales, logistics must be in place for it to have any chance of managing growth.

“Logistics is the last thing thought about,” says Linda Gillette Parodi, founder of Parodi Professional Care, maker of skincare products for professionals in the beauty industry and beyond. “It’s like, ‘Oh my, I’ve got the product. ... Where am I going to put it? How am I going to ship it?’”

She adds, “Logistics is the most important thing in any business; even more important than sales. It’s not something to take lightly. You can have the best marketing, the best chemist with the best product or design–the best everything–but if you can’t get the product to the customer, everything was in vain. I highly recommend that brands think logistics first.”

Logistics includes everything from inventory management and warehousing to packing, shipping, shipment tracking and more. These are all processes that impact customer experience, customer satisfaction and brand perception. Products packaged negligently can leave customers unhappy. And packages that don’t arrive on time can be a customer service nightmare. “Every week, I’m involved in some type of log meeting or conversation about getting our products to our distributors or customers, inventory coming in and going out, and making bundle packs. It’s a big part of weekly conversation,” Parodi explains.

For owners of nascent beauty businesses with small budgets, hiring other companies to manage logistics can seem gratuitous when they can simply fulfill orders from their home kitchen, basement or garage. They understand that at some point, they may need to partner with logistics specialists to keep up with sales; but the question is, when exactly is the right time?

“I get asked this question a lot, and I always provide the same answer: As soon as you can afford to or as soon as logistics starts to take over so much that it has a negative effect on your ability to run your company,” says Rachel Whittaker, founder of Indie Beauty Delivers, a company that offers entrepreneurs a competitive edge with guidance in logistics and other processes. The company also helps U.S. brands enter the U.K. market and pairs them with compatible logistics partners in the U.K. and Europe. Whittaker adds, “I mean, why would you be picking and packing orders when you can be out getting new retail partners, formulating your newest product or designing a marketing campaign?”

THE COST
The expense involved in hiring a logistics company is a legitimate concern. The point here is not that small brands should hire a logistics partner before they can afford to, but that they should consider hiring one as soon as they can afford to, according to Whittaker. Small brands may believe they are saving money by doing it all them- selves, but her question remains: What is it costing them?

• Sustainable Growth: Outsourcing logistics can position your brand to act when opportunities arise, Whittaker notes. For instance, an unexpected retail deal with Sephora. If you’re working with a logistics company, you are prepared for that opportunity. If you are doing logistics in-house, taking on the opportunity could topple your small business.
• Worthwhile Efficiency: Logistics firms have the technology and other resources to help brands maximize their efficiency. Matt Hohenshil, vertical manager of beauty at TPS Logistics, which has about 15 clients within the health and beauty sector, says that visibility alone–on both the inbound and outbound side–can improve efficiency and lower costs. It also can “drive creative programs to get products to the end consumer a lot faster and cheaper. We’ve seen our clients typically save 15 percent to 20 percent on freight, and efficiency goes up by 20 percent on average,” he adds.
• Noteworthy Expertise: One of the hidden benefits of hiring a logistics partner is the expertise that comes with it–especially for new brands on the rise. Logistics specialists can guide small brands through the logistics process, connect them with other necessary partnerships and resources, and help them avoid costly mistakes. “Requirements are constantly changing, such as new routing guides, new approved carrier documents and so forth,” says Hohenshil. And not just at the retail level; regulations regularly change nationally and internationally. Tapping the vigilance, connections and expertise of logistics specialists can save a small brand’s time, money and reputation.
• Maximized Budget: Handling logistics in-house carries hidden costs. There may be savings in using FedEx, UPS or some other shipping agent, but for many brands that option still requires paying employees to pick, pack and ship the products. Whittaker adds that small brands have small volumes, which limits their leverage to negotiate costs for delivery, packaging and so forth. These are areas in which they should see instant reduction in costs when they begin working with a larger organization that gets better rates. If a brand was to tally the total price of doing logistics in-house–including the time taken from business-building tasks, the time required to research and manage requirements and regulations, the cost of paying workers, etc.–would the final bill rival the cost of paying an outside agency? “I think it all comes out the same,” says Parodi. It’s worth it for brands to explore the costs of outside logistics to determine whether they’re actually saving money doing it in-house.

RETAILERS AND BRAND LOGISTICS
Retailers are inevitably impacted by a brand’s logistics. Whittaker explains that there are actions a retailer can take to identify potential logistics red flags when considering new brands.

• Learn About Infrastructure: Retailers can ask the brand about its logistics infrastructure, such as how it stores and delivers its products. Doing so can alert the retailer to potential negligence in this aspect of the brand’s business.
• Know Your Expectations: Provide detailed expectations, including any customizations required prior to delivery, as well as any fines that may be applied for mistakes. In this way, the retailer gains insight into how well prepared the brand is to meet requirements.
• Residual Stock: Inquire about the brand’s residual stock. This can help the retailer gauge whether the brand will be able to accommodate unexpected requests for large volumes in a timely manner.

“For retailers, if they’re working with someone who is using a logistics partner, that is a relief for them,” says Parodi. The partnership saves the retailer both time and money. Logistics companies can generally get the product to the retailer faster; seize consolidation opportunities that save the retailer time; process large orders with ease; and work with the retailer’s methods of choice, such as using a preferred carrier, adds Hohenshil.

It’s worth noting that retailers can work seamlessly with brands that manage logistics in-house, too. This is particularly true of brands that have made logistics a chief function of their business, rather than a secondary undertaking. A retailer’s perceptive questions when considering new brands is key to forging these ideal partnerships.

FINDING THE RIGHT LOGISTICS PARTNER
Experts share their recommendations for finding the ideal logistics partner for your beauty business.

Linda Gillette Parodi, founder of Parodi Professional Care
“Every logistics site will tell you what they think you need to hear,” Parodi says. Therefore, you need to know what you want in a logistics partner. In the end, Parodi went with Bold 3PL Logistics in Kansas, which was a start-up at the time and was availabile to take her calls, answer her questions and be an effective guide. Here’s what she looked for in a firm:

• She sought a company that wanted to work with small businesses and was equipped to manage small volumes–in other words, a place where her company wouldn’t get lost.
• The firm needed to have programs to manage her inventory.
• Fees, combined with her small orders, needed to make sense for her budget.
• She was looking for a location in the center of the U.S., so that her orders could get to everyone in no more than three days.
• Her partner had to ship consistently without problems and take responsibility for issues. Parodi says that she has lost shipments of $7,000 to $10,000, but later found her products popping up at places such as Amazon.

Matt Hohenshil, vertical manager of beauty at TPS Logistics
Finding a logistics partner that has a history of working with beauty brands is essential. “Do they currently handle health and beauty clients? Are they understanding of the retail world, or are they just going to try and fit the beauty brand into their current asset-based model and force that upon the brand, which typically does not work?” Hohenshil says.

He adds that businesses may want to consider whether the company is asset- or nonasset-based. Nonasset-based logistics companies are not attached to any one mode, supplier or carrier. As a result, they can be extremely flexible in how they deliver results. Whittaker builds upon this insight with the following advice:

• Find a firm that already delivers to the retailers you are currently working with and are targeting.
• Look for one that can offer the full range of services you need now and in the future.
• Visit the company and make sure it feels right.
• Look for a firm with great IT solutions.

Rachel Whittaker, founder of Indie Beauty Delivers
You might find a company with red flags such as being dirty, disorganized or unclear; having confusing charging structures; or lacking testimonials, Whittaker says. She adds that brands also should make sure the logistics firm is clear about when and how often it reviews charges.

Additionally, brands should keep in mind that they aren’t the only ones evaluating potential partnerships. “When you approach a logistics firm, they are looking at you just as much as you are looking at them,” she says. “Logistics firms need to make money, and so they need to feel a confidence that you are going to move some product and generate some revenue. You need to impress logistics firms with your professionalism and future plans.” Here’s how to do so:

• Provide details about volume, such as how many pallets of stock will be stored, order volumes, average units per order and a list of retailers you are working with.
• Offer links to your website and social media platforms to give them insight into your brand.
• Detail your growth plans and ambitions.
• “And a few samples never go amiss,” she adds.

From greeting a customer by name–which science shows lights up a different cortex of the brain than hearing the sound of any other word–to presenting products tailor-made to his or her specific taste, it’s hard to overestimate the importance of a personal connection to successful retailing. In fact, research by marketing agency Medallion Retail shows that 46 percent of consumers will buy more from a vendor who personalizes their shopping experience. “In simple terms, personalization is when patrons experience services that are uniquely relevant to them, thus prompting their loyalty,” says Jeff Wakefield, vice president of sales enablement at Verifone, a California-based company that’s revolutionizing sales technology. Moreover, a 2014 survey by American Express found that 68 percent of consumers will pay more for a better customer experience, while 74 percent said they have spent more in such a situation.

It’s clear that in our current market, clients are calling the shots. And sellers who fail to keep up with these soaring new standards run the risk of getting left in the sales slump dust.

In many ways, the concept of personalization isn’t revolutionary. Heritage haute-couture clothiers once made to measure every gown, shirt and pair of trousers for each individual client. Merchandise was universally bespoke and tasked to meet rigorous service requirements, until the innovation of factory-line manufacturing ushered in the era of mass- produced prêt-à-porter products. But trends are cyclical, and everything that once was old tends to swing back in vogue again. Recent improvements in technology have led to a shift in purchasing demands–namely, shoppers’ heightened expectations for sellers are keeping pace with their increasingly tech-savvy acumen. Today’s retail climate challenges merchants to craft an individualized experience for every prospective patron.

“It’s essential to operate wholly on the notion that every consumer is unique and, in addition, a brand never engages the same consumer twice,” notes Jason Grunberg, vice president of marketing at Sailthru, a company that personalizes individual customer experiences across digital communication channels. “Following each engagement, that individual’s circumstances have changed–he or she may have read or learned or experienced something new.” While this might at first sound overwhelming, the practice of personalization need not intimidate. A few key changes in behavior can result in a large, lasting impact.

LEARN ABOUT CUSTOMERS
No two shoppers are created equal. Personalization equates to providing all patrons the unique retail experience that’s right for them–and only them. But to do so, one must first learn about the individuals browsing online or walking through the front door of a store.

Start by collecting consumer data. Advanced point of sale (POS) software now makes it possible to automatically generate a customer profile with each new order. Organize contact info and track spending habits to compile a detailed history, including buying behaviors, preferred purchases and email addresses.

Or turn for assistance to companies like Sailthru, which were founded to help vendors connect across email, web and mobile via the science of data collection and management.

CURATE OFFERINGS
Customer information, once acquired, is of little value if not used correctly. Today’s successful brands employ innovative predictive intelligence tools to recommend products and experiences for online shoppers. Information such as browsing behavior, purchase history and tracking other websites used to search for similar products help to inform these predictive tools. And when combined with motivations to convert, retailers are pulling every lever to capture a sale. Industry reports indicate that a staggering 41 percent of consumers currently expect offers that are personalized and relevant when they enter a store, either physical or virtual.

NYX Cosmetics, the self-described “digital-first brand,” has led the charge on this customization front. Once dubbed a cult beauty group, the company’s Instagram account now boasts an impressive 12 million followers, placing it squarely among the ranks of other beauty giants like MAC Cosmetics, Anastasia Beverly Hills and Sephora, with 16, 14 and 13 million followers, respectively. Customer selfies representing a diverse array of genders and races get proudly featured in lieu of traditional celeb-focused ads. Recently the brand also launched an app that utilizes advanced algorithms to let viewers watch video tutorials by beauty bloggers, then add items to their carts as artists demonstrate their use. Buyers can further construct personalized beauty profiles of preferred cosmetics by swiping left or right on eye-popping product shots.

Prestige beauty market-leader Sephora likewise recorded stunning growth in 2016 profits and revenue by continuing to redefine skin care’s highly personal nature. “This [retail] brand stands out from its peers with a robust digital personal shopper that specifically tailors product recommendations to a customer’s exact skin type and tone, as well as her eye and hair color,” marvels Grunberg. This means that one woman’s view of her Sephora homepage will drastically differ from that seen by her bestie, and all discounts and promotional offer- ings are likewise customized dynamically.

The brand has even auspiciously experimented with augmented reality (AR) technology, wherein real-world environmental elements are enhanced by computer-generated graphics to devise a more immersive–and thrilling–overall experience. “Sephora’s technology allows you to take a picture of yourself, then use your mobile device to virtually ‘try on’ various hues of eye shadow or lipstick to see which item best suits your skin tone or determine how a shade will transition from day to night,” Grunberg explains.

The third and arguably most advanced layer of personalization dabbles in prophesying. “Data-science driven approaches help us predict what a person may do next, in terms of likelihood of purchasing a specific product,” Grunberg says. Website homepages subsequently feature images of that must-have item you didn’t even know you wanted, or a brand may send an email with a discount coupon valid for only a few hours or days as shopping bait.

STAY SOCIAL
A 2013 survey conducted by technology market research group Dimensional Research found that 90 percent of customers are influenced in their buying decisions by positive online reviews. Bottom line: Social media still has a monumental influence on shoppers’ buying decisions, thus maintaining a vibrant presence on channels such as Snapchat, Instagram and Facebook continues to register as essential. Recruiting Instagram influencers or top bloggers with scores of followers are among today’s top ways to boost social reach.

INTEGRATE MULTIPLE PLATFORMS
It’s no longer enough to open a beautifully organized brick-and-mortar store, and then launch its accompanying website. Retailers wishing to remain competitive must establish a vigorously active presence across all web and mobile channels, and this experience must be interactive. After all, the platform where a customer is first exposed to a product (i.e., online) may not necessarily be the one from which he or she makes a purchase (i.e., in the physical store). “Consumers have grown accustomed to the convenience and simplicity of the online experience, and they want similar features in-store, which is where nearly 90 percent of sales are still generated,” Wakefield informs. “It’s clear that the shop is a valuable part of the buying process, but retailers are still searching for ways to enrich it with some of the features associated with e-commerce.”

Research additionally proves that for younger patrons, the procuring act itself often resonates as more significant than the items acquired. “By 2020, millennials will represent more than 40 percent of consumers in the United States, and their view of the shopping occurrence tends to supersede the actual purchase,” Wakefield reveals. “Drawn to digitally connected, hyper-personalized experiences, millennials write home (aka, blog or post) about merchants who integrate their in-store environment with their online world.” Based on findings from PricewaterhouseCoopers 2016 Retail and Consumer Report, “As retailers transform into true multichannel organizations, constantly refocusing on the customer experience and improving, enhancing and integrating all elements of the customer shopping journey will be an important part of their long-term success.”

CUSTOMIZE LOYALTY INCENTIVES
The 2015 Shopper Experience Study conducted by Retail Info Systems News magazine revealed that 80 percent of shoppers belong to at least one loyalty program, while 32 percent said strong loyalty programs trump lowest price when deciding where to buy.

But just as patrons may suffer decision fatigue when faced with an array of too many shelf choices, so too do they lose patience with one-size-fits-all loyalty schemes that fail to consider specific wants and needs. Whether it’s automatic discounts, points given per dollar spent or perks attained according to status level, vendors are well advised to get personal with their brand super-spenders.

PAY IT FORWARD
“In today’s boutiques and restaurants, consumers increasingly have their smartphones at the ready to aid purchasing decisions, compare items or find deals and locate products as they walk the aisles,” Wakefield says. Retailers, take heed: Now’s the time to hop aboard the avant-garde payment bandwagon growing in popularity. Research by consultancy giant Capgemini and BNP Paribas bank revealed that globally, people are expected to make 726 billion transactions using digital payment technologies by 2020.

“The proliferation of new technologies and payment methods is fueling a faster pace of life, as these solutions help simplify the transactional moment while–bonus–improving security,” Wakefield discloses. “Technologies like Bluetooth Low Energy, 3G/4G and WiFi connectivity combined with mobile or portable POS devices allow merchants to extend the POS beyond the counter and throughout the store, plus reduce the time customers spend in check- out lines while forging a more one-on-one shopping experience.”

VALUE CUSTOMER SERVICE
“The 21st-century retail environment is a jungle,” Wakefield says. Various forms of personalization technology are ushering in an exciting new shopping era, but are there drawbacks to consider? Grunberg lends one note of caution: “Brands that focus solely on performance marketing and automation will still fail if they forget to honor the age-old tenet of successful salesmanship: customer service.” Hire sales staff who love and care about your brand, and can be empathetic to customer complaints. After all, personal is the key word in personalization.

TREND WATCH 2018
Verifone’s Jeff Wakefield shares exciting customization trends we can look forward to in the coming months.

Security: Breaches and hacks are ever-prevalent. To answer this growing threat and ease concerns, authentication will move away from simple PIN numbers and codes to individualized biometric info including fingerprints, facial recognition and iris scans. “Additional perks like tokenization enable merchants to provide a safe way for consumers to buy and return anywhere without having to present their card again, creating a seamless experience regardless of where a purchase was made,” Wakefield says.

Alternative Payment Options: Apple Pay reports over one million new users a week, while lifestyle apps like Alipay are gaining traction in Europe. “As the tech and security behind mobile-payment apps increase, user adoption will grow with it, pushing providers and businesses to keep pace with the trend,” Wakefield predicts.

Frictionless Experience: Accepting any kind of payment, anywhere, at any time will be key to future retail. Wakefield says, “Expect to see more merchants try different kinds of concept stores to drive online to in-store traffic, and vice versa.”

Ordering at Kiosks: Quick kiosk ordering is proving invaluable at many fast-food restaurants and retail chains. “Here’s a solution designed to decrease long lines by offering self-service to expedite orders, while lowering overhead,” he notes.

Beauty Store Business's recently sat down with the Professional Beauty Association's North American trade show director Eric Horn, who gave us a preview of what's to come at this year's trade shows, and more about the various services PBA has to offer for licensed professionals, salons, manufacturers, suppliers, distributors, spas, schools, independent practitioners and students. See the full video here, or visit probeauty.org for more information.

[Photo courtesy of Eric Horn]

The best beauty products are born out of necessity. Such was the case for Miranda Coggins, the founder, CEO and co-owner of The Lano Company. “The whole company started because I have chronically chapped lips that would peel and bleed,” she says. When she found a solution, Miranda knew consumers could benefit from her secret weapon, too.

The idea came to Miranda in December 2003, following the birth of her daughter. While she was breastfeeding, she used medical-grade lanolin, a wax derived from sheep’s wool, often prescribed for chapped, sore nipples. “I put it on my lips and they were healed for the first time in 30 years,” Miranda says. When she tried searching for a lanolin-based lip balm, she couldn’t find one. And then, a light bulb went off.

“I was having lunch with a girlfriend of mine and I said, ‘I have a million dollar idea,’” she says. Miranda rushed home after picking up some natural products and began concocting a formula for a lanolin-based lip balm. “[My husband] Layne always makes the joke that it’s the only time the stove has ever been turned on.”

The Cogginses recently sat down with Beauty Store Business to discuss The Lano Company’s history and their latest venture, the acquisition of Mirabella.

WINNING FORMULA
Miranda spent the next several months playing with different formulations of all-natural ingredients like jojoba oil, sweet almond oil and vitamin E. “I had no experience as a chemist, and really didn’t know if the formula was stable,” she says.

After spending about six months looking for a lab that was willing to work with her, Miranda found one out of Florida. She innovated a lip balm using the purest form of lanolin–the same kind that breastfeeding mothers use. Once she had the formula down, the next challenge was figuring out how to manufacture it. So, she enlisted help by paying people to fill lip balms out of her basement. “It was pizza at noon and beer at 4:30. That’s how we got people over,” she laughs.

“I truly believe that we can be the No. 1 salon professional brand by the end of 2018, as far as a full cosmetic line.”

–Miranda Coggins, founder

Layne, co-owner of The Lano Company, says, “We literally had people over to fill lip balm all day long. Our basement was a weird, archaic factory.”

In 2005, The Lano Company was offi- cially founded. After successfully selling her all-natural lip balms, Miranda created another product: massage oil candles.

By 2007, she debuted Light-Up Lip Gloss, which quickly became her company’s hero product. “We took that same great formula we had in the lip balm and decided to put it in the light-up tube with a mirror and color–and it just took off.”

It was around that time that Layne joined the business, and began negotiating contracts with distributors. The Cogginses ran the company out of their home for four years, until they couldn’t keep up with the demand any longer. At one point, they were selling 10,000 lip glosses a day–out of their basement.

“At the time we didn’t really under- stand what a distributor looked like, so of course we didn’t have our pricing right. Not coming from the industry and start- ing from scratch was much more difficult than I assumed,” Miranda says.

The Cogginses soon realized that they wanted to expand their product range, so in 2009, they launched Pure Cosmetics, an affordably priced, high-quality, paraben-free makeup line. For the next few years, business continuously boomed, and the couple instituted The Lano Company’s headquarters in Kansas City, Missouri.

In 2015, the Cogginses debuted Pure Lano, an all-natural skincare line based around their star ingredient, lanolin. Unlike the immediate success the cosmetics saw, their skincare line faced a few unique challenges. First, the couple found that the skincare market was more competitive and highly saturated; second, it was difficult to educate people about the benefits of lanolin, an ingredient that many consumers to this day don’t know much about. “We’re getting ready to launch in Australia, where people really understand the healing benefits of lanolin more than the U.S. customer,” Miranda says. Layne adds, “The response to the product now is great, but we do not have the same reach that we do on the cosmetics.”

THE FRESH FACE OF MIRABELLA
With the goal of concentrating on color cos- metics, the Cogginses acquired professional mineral-based makeup brand Mirabella on February 22, 2017. Mirabella was founded in 2002 by salon owner Christy Thurston. From 2006 to 2016, Mirabella was run by president and owner John Maly, who Miranda highly commends for establishing brand awareness and loyal customers over the last 10 years. “By the time we acquired it, Mirabella needed a lot of TLC,” Miranda says of the company, which was suffering from inflated costs of goods, a lack of communication with customers and complications with moving product nearing its expiration date.

“The problem was, a lot of the products had not been ordered, so we had to make some difficult decisions,” Miranda says. Rather than reordering the same products, they decided to completely rebrand Mirabella, while staying true to the brand’s origins as a mineral-based, gluten-free, talc-free makeup line geared towards salon and spa professionals. Last June they shut down Mirabella’s Valencia, California, office and moved the company to its warehouse in Kansas City.

“There had been a disconnect when the prior company owned it,” Miranda says. “[Store owners] were afraid that we were going to be moving into Ulta and Sephora. The biggest question they had when we purchased it was, ‘Are you staying salon professional?’ The answer was yes.” Mirabella already has a home in salons; the Cogginses are looking to reenergize the brand where it currently resides.

Miranda and Layne spent most of 2017 overhauling Mirabella’s formulas to be more affordable and feel more luxurious, with additions like sleek ombré packaging and chic metallic accents. They also developed acrylic modules for their open-sell display units, which feature gorgeous imagery of models, attractive backlighting as well as housing for open stock and tester units. “The prior company made people purchase their acrylic updates, which was very expensive for the small salon owners, but those come free with all of our new launches this year,” Miranda says.

Layne adds, “We brought the prices down on several items. Miranda’s done a great job–the packaging is just so much higher-end than it used to be. I think everyone is excited about 2018.”

The pair has also taken control over speaking with vendors directly, without involvement from a third party. For instance, with the help of a private Facebook page for retailers, Miranda is able to answer questions from Mirabella customers, making the brand’s transition to new management easier. She says, “Literally, I’m the person that’s answering them, which makes them feel like somebody’s listening.” They’ve also implemented a Mirabella marketing support site, go-bella.com, for sales people, distributors and salon owners, which allows them to download images and sales sheets in one consolidated space.

THE YEAR AHEAD
While most of 2017 was devoted to revamping Mirabella, 2018 will be the brand’s year for aggressive product launches. The company recently unveiled new eyeshadow palettes, and an improved lip gloss formula will hit shelves in March, followed by blushes and sculpting duos in April and lipsticks by the beginning of summer.

“We are going to cross-pollinate the things that worked really well in the Pure Cosmetics line with some of the things that didn’t work as well in the Mirabella line, and vice versa,” Miranda says. “I truly believe that we can be the No. 1 salon professional brand by the end of 2018,
as far as a full cosmetic line.”

Layne is also excited for what the future holds. “I think we have so many options for growth. Miranda created a great open-sell display, this huge flooring unit that can go in higher-end salons. We also have a premium tester unit–so you don’t have to have as much back stock.”

“Sometimes baby steps will get to a big step; just don’t do too much at once.”

–Layne Coggins, co-owner

One thing the couple didn’t expect to see was loyal fans of Pure Cosmetics trying out the new Mirabella products in their stores. “When we purchased Mirabella, we really didn’t think we would see salons carrying both,” Miranda says. “And now moving into 2018, it’s really about how to start growing the business and retaining not only what Mirabella had, but getting a whole new client base with the new pack- aging and new products. We’re going to hit the trade shows hard this year. We’re also utilizing our 47 educators out in the field.”

LEARNING FROM THE PAST
While adding more members to their team is inevitable as Mirabella grows, Miranda and Layne currently have 13 full-time employees–some of which have been with them from the beginning. They provide flexible work hours for busy parents, and have employed stay-at-home moms who were out of the work force for a long time. Stressing the importance of an upbeat company culture, they even introduced fun ABBA Fridays, in which ABBA songs can be heard throughout the office.

On a day-to-day basis, Miranda oversees product development and marketing, while Layne handles sales and communications with the distributors. Layne says, “You learn what each other is good at, and then you let them focus on that and try not to intervene when something’s already taken care of.”

“I tried to let him create a product one time and it wasn’t the best, so he leaves that up to me,” Miranda laughs.

Though working with a spouse may be arduous at times, this affectionate pair is truly inseparable. “We have way too much fun together, honestly,” Miranda says. “When we go to trade shows, we have such a great time that half the time it doesn’t feel like work. I don’t think most partners are that way, but we’re each other’s best friend.”

It’s also evident they have an endless amount of mutual respect for one another. “Miranda was pretty much doing it on her own from the very beginning, and she had to learn a whole lot about how to source. You have to be patient, but you also have to be aggressive–which she was,” Layne says.

The future of Mirabella looks incredibly bright thanks to the hurdles the Cogginses have learned to overcome through years of experience. Miranda admits that one of those hurdles was being overzealous about inventory in the past (“selling out is not always a bad thing,” she reflects). Today, they also know the value of having a good mentor to help with the decision-making. “We make sure to ask the right questions now before we go ordering 20,000 Light Up Mascara–which was a complete fail,” Miranda says.

“After you’ve somewhat established yourself, it’s easier to go sell the product and then create it than say, ‘I really hope this sells,’ and create 10 or 20,000 of [something], and then try to sell it without any takers ... Sometimes baby steps will get to a big step; just don’t do too much at once,” Layne adds. The acquisition of Mirabella was a big step for The Lano Company, but using what they’ve learned over the past decade, these co-owners are now ready to take Mirabella to uncharted heights.

TIMELINE OF EVENTS
A brief glimpse at the history of The Lano Company.

• 2003: Miranda Coggins comes up with the idea for a lanolin-based lip balm.
• 2005: Miranda formulates The Original Lip Balm, first sold in October 2005, and The Lano Company is born in her basement.
• 2006: The Lano Company introduces Lano Light Candles, which burn with a soothing scent and melt into massage oil that soothes dry skin.
• 2007: Using the must-have formula of the lip balm, the innovative Pure Illumination Lip Gloss is created, which features an LED light and side mirror.
• 2008: Miranda’s husband, Layne Coggins, joins The Lano Company as VP of sales.
• 2009: The Lano Company’s cosmetics line, Pure Cosmetics, debuts worldwide.
• 2010: The company’s first headquarters opens up in downtown Kansas City, Missouri.
• 2015: The Coggins launch Pure Lano, a natural skincare brand that further touts the benefits of soothing lanolin.
• 2017: In February, The Lano Company acquires Mirabella, and spends the year rebranding and updating the line.
• 2018: Mirabella unveils its newly packaged eyeshadow palettes, lip glosses, blushes, sculpting duos and lipsticks.

GET CONNECTED!
mirabellabeauty.com, thelanocompany.com
Facebook: @mirabellabeauty
Instagram: @mirabellabeauty
Twitter: @mirabella

After studying molecular and cellular biology at the University of Illinois at Urbana-Champaign and marketing at Columbia College of Chicago, businesswoman Keli Smith had an epiphany; she wanted to find a way to make natural products more enjoyable for consumers. “I entered the beauty industry following my own personal journey to live more holistically,” she says.

Because “cake” is a word synonymous with fun (and it’s at the heart of every celebration), Smith founded Kaike–an all-natural, cruelty-free, vegan beauty brand that uses organic ingredients, plant-based oils and butters, cold-pressed essential oils for the body and hair, and recyclable and reusable packaging. Handcrafted in small batches out of Chicago, the products are proudly manufactured without using artificial ingredients, preservatives, fillers, phthalates, sodium laurel sulfate or alcohols. The brand’s hero product, Frosting, is a triple-threat moisturizer for use on the hair, skin and lips; furthermore, it smells and feels like actual frosting!

Smith recently sat down with Beauty Store Business to discuss more about what drives her, and why she hopes other like-minded women find joy in pursuing their dreams.

Beauty Store Business: What inspired you to create Kaike, and when was the brand founded?
Keli Smith: I founded Kaike in 2015, after transitioning from relaxed hair to the big chop. It was a documentary that turned the light bulb on for me, causing me to look at not only the products I was using in my hair, but taking it a step further to skincare products as well. As I searched for more natural products, I discovered that there wasn’t much available out there–and what I did find was either misleading or boring. This led me to create a brand for women in similar situations that I found myself in; women who want to transition to a more natural lifestyle, with transparency in the ingredients used and fun in the brand.

What was the formulation process like for the first product you created?
It was a very long process. Our first product was Frosting, and it took nearly a year to get it right. Even after launching, we went back to perfect the frosting-like consistency, and now it’s one of our best-selling products.

“Don’t rush the journey. Building a brand takes time, and mistakes are more likely to happen when you rush through steps.”

What makes Kaike’s all-natural, vegan, handmade products so special?
I believe it’s a combination between the green ingredients, the fact that each product has multiple uses and the brand’s focus on celebrating natural beauty while having tons of fun!

What are your plans for the future?
One of the more immediate goals is to launch some of the products we have in our pipeline. We are expecting to launch four products this year, with two of them as part of a new product line. Our larger goal is to open our own storefront, which we are planning for 2019.

What retail stores is Kaike currently available in, and do you hope to expand retail distribution?
Kaike is currently available at Lena Rose Natural Beauty, located in Chicago, and several online locations. Our complete list of stockists is available on our site. We do plan to continue expanding our retail distribution, and have some exciting partnerships planned for this year.

As a mompreneur, how are you able to find balance between running a company and raising four kids?
At times, I don’t really know how it all gets done! All joking aside, I am very intentional when managing time and setting priorities. I block time on my calendar to get work done and spend time with family–and don’t schedule over them. Also, my kids help in day-to-day operations. My oldest two have assigned roles for themselves in the company, and I’m amazed at how helpful they are!

“It can take years of planning to become an overnight success.”

What have been your career highlights as a CEO?
My proudest moments have come from my children expressing a desire to start their own businesses, and even writing out business plans. It means a lot that they see what I’m doing with Kaike and want to follow in those footsteps.

What’s the biggest lesson you’ve learned?
Don’t rush the journey. Building a brand takes time, and mistakes are more likely to happen when you rush through steps. Take the time to not only properly prepare, but also to enjoy the step you’re at because it all changes so quickly.

What can fans of the brand expect to see in 2018?
Kaike fans can expect to see some exciting new products, a fresher look to our packaging and a few fun events headed their way!

What advice can you offer other beauty entrepreneurs?
It can take years of planning to become an overnight success. Identify what your unique story is, and become an expert at telling it ... and then keep telling it. You may not see the results you want right away, but keep going and stay consistent!

GET CONNECTED!
shopkaike.com
Instagram: @shopkaike
Twitter: @shopkaike
Facebook: @shopkaike

[Photos courtesy of Kaike]

Chances are, most of your customers are active women on the go. It seems this new movement is truly having its moment in the spotlight. After all, even if your customers are sitting still, they have the world at their fingertips. Beauty in action has multiple meanings, from beauty in transit, when women paint their faces on public transport (minus the fear of being shamed) to beauty designed to hold up no matter what women do–that’s right, we’re talking hot yoga-proof cosmetics. All of this has led up to a new class of high-performance products. These innovative tools are not only easier to use but don’t require as much effort and precision to put on, so you can apply them anywhere. Your customers are probably already experimenting with these on-the-go products, so show them that your store is ahead of the game with on-trend stock and displays that will catch their ever-moving eye.

PUBLIC DISPLAYS OF APPLICATION
Doing makeup on the go is the ultimate time-saver–it definitively kills two birds with one stone. However, not everyone is on board with the trend. After a video of a man in the U.K. telling off a woman for doing her makeup in transit went viral, the subject was thrown out in the open. To gauge public opinion on the act, Metro UK conducted a poll on Twitter, asking 449 respondents: “Is it acceptable to put your makeup on in the tube [British slang for subway]?” Although the results were overall positive, with 34 percent agreeing “of course” applying makeup on the go is totally acceptable; 40 percent preferred it to be just a “light touch up”; and 26 percent were in complete opposition, declaring, “totally not.”

Whatever the reason for being against it, the old guard is going to have to get used to the new wave of commuter beauty. As people work longer days and have less time for themselves, the trend may even become the norm. YouTube is full of tutorials on how to do makeup on the go. Even Drew Barrymore got involved on Instagram, posting an image of herself applying makeup on the subway using products from her Flower Beauty line with the caption “Concealing on the subway!” According to global market research firm Mintel, 30 percent of adults in the U.S. use public transportation. Of those, according to the American Public Transportation Association, 55 percent are women.

"This campaign is a celebration of the many ways women use makeup to represent themselves—however, whenever and wherever they choose.”

–Ukonwa Ojo, global SVP, CoverGirl

To change any negative opinion about applying cosmetics in a public space, and to empower women to do so, CoverGirl stepped in–the ultimate voice of beauty authority. Their “Cosmetics on the Go Campaign” or #ProjectPDA (Public Display of Application) takes aim at the idea that beautifying in public is inappropriate, instead emboldening women to do so wherever they are–with pride. The inspiration for the campaign all started from a NYC subway sign, which effectively compared putting on makeup with clipping your toenails (something we can all agree is dissimilar).

“[The sign] encourages people to only apply their makeup in the restroom,” a brand rep commented about the PSA. This got the team at CoverGirl wondering why there is a stigma surrounding makeup application in public, and bigger-picture judgments about wearing makeup in general.

To challenge the idea of shaming those who apply makeup in public, CoverGirl spotlighted unapologetic self-expression through cosmetics. To really drive the point home, the company set up mirrors around NYC, documenting public makeup application as one would a grand-scale art project. “This campaign is a celebration of the many ways women use makeup to represent themselves–however, whenever and wherever they choose,” said Ukonwa Ojo, global senior vice president of CoverGirl. “It’s about rejecting the notion that people have to apologize or hide for their makeup choices and where they apply it.”

WHAT COMMUTERS WANT
Now that being empowered to apply makeup is officially a thing, how do we get great face in motion? Consumers’ active lives have demanded a response from brands. You might not have noticed, but they’re listening. Mentions of “convenience”, “ease of use” and “on the go” have been steadily used by cosmetics companies launched from 2015 to June 2017. In 2016 alone, 19 percent of products referenced “ease of use” in their campaigns, 4 percent made mention of “on the go” and 2 percent pointed to their “convenient packaging,” according to analysis from Mintel.

Since consumers want their makeup with them, products are innovating to make sure they fit in, literally. Often, that translates to more makeup. Customers have expressed a preference for kits and palettes, which means they can take their options with them. Mintel reports that 25 percent of women in the U.K. ages 16 to 24 bought an eye palette, compared to 9 percent who bought a single eye shadow. As a beauty store business owner, that’s a valuable piece of intel; millennial customers aren’t willing to settle for a single option.

Mirrors and tools that are built into a cosmetic product offer a more complete package. As Mintel reports, 68 percent of both German and Italian women think it is important to check their appearance in the mirror throughout the day; his no doubt applies to women in the U.S. as well, and lends itself not only to the idea of commuter beauty, but beauty 24/7. Products that are easy to use, portable and require less precision to apply fit within this beauty category.

Now that the demand for these types of products has been solidified, we can expect innovation across the board–especially when it comes to mobility, since consumers take their phones everywhere and touch-ups on the go are crucial. Addressing this, as well as the universal wish to take the perfect selfie, Pout Case reached the market in the summer of 2017. Pout Case looks like a standard iPhone case but is actually a built-in customizable makeup palette. Not only can consumers choose their perfect colors, they can also select which phone case color they prefer (it comes in four options). Similarly, Ferrari launched a fragrance case under the same premise; the Scuderia Ferrari Fragrance Phone Case is always with you, and it holds 25 milliliters of their signature scent.

Multipurpose products that have combined usage are also on our radar, because more is more when you have room for less. We foresee three-in-ones and two-in-ones, like the TrèStique Highlight Stick, which has a highlighter on one side and a sponge on the other, as the new wave of products to look out for. Not only do they offer bang for the buck, they’re perfect for all those that live on the move.

GYM-READY COSMETICS
Not just a trend, commuter beauty indicates that women want to look their best all the time, and want the cos- metics on hand to help them do so. Naturally, the gym extends into that “all the time” bracket. Just because your customer is sweating, doesn’t mean she doesn’t want to look her best. Enter active beauty, the gym-time equivalent of commuter beauty.

If the real trend is looking amazing 24/7, then active beauty and a category of workout-proof cosmetics are the obvious next step–especially because fitness has become part of our everyday lives. It’s not easy to stay made up during a hard workout, but brands are working on the perfect products to get us there.

“To us, active beauty isn’t a trend—it’s really a lifestyle that we are seeing more and more women living.”

–Taryn Hemmings, COO, Sweat Cosmetics

Sweat Cosmetics was founded on the notion that you can give 100 percent in fitness and still look great while doing so. As the creators of the brand put it, “Sweat was inspired by our own everyday lives!” The brand’s founders, Taryn Hemmings and Emily Hines, were college students and soccer players when they first came up with the idea for Sweat. As they transitioned into becoming a professional soccer player and a CPA (respectively), the need for products that were compatible with their dynamic days hadn’t gone away.

“We were leading super active lives, running from one practice to the next, or the office to lunchtime yoga and back, and needing lightweight but high-performing beauty products that we could use on the go,” Hemmings says. When asked about active beauty, she is fast to note it is a way of life. “To us, active beauty isn’t a trend–it’s really a lifestyle that we are seeing more and more women living. From the ingredients to the packaging, we are creating products that are 100-percent dedicated to making the active woman’s life a little bit easier.”

If you’re looking for makeup strong enough to endure a workout, Hemmings advises keeping an eye on mineral powder. “Mineral powders are something we focused on creating first because they are breathable and easier on the skin, especially while your pores are open and sweat is creating an environment where bacteria can thrive,” she says.

To create a truly sweat-proof product, testing was everything. “When we were creating these products, we weren’t doing the normal photo-proof testing; we were testing them during our 90-minute soccer games in the middle of summer,” Hemmings says. “While there are a couple things that add to the sweat-resistance of the powder, the biggest is how finely milled our powder is compared to other mineral powders on the market. It allows the powder to adhere more closely to your skin, helping it not only outlast sweat but look and feel completely natural.”

She sums it up with what could be the ethos behind this trend–no matter what the consumer is doing, there’s a product for that. “We created Sweat to survive an athlete’s toughest workout, but our products are really for any woman with a hectic, active lifestyle,” Hemmings says. “No matter what your day holds, you want to be wearing the right products that can protect and enhance your skin!”

If the active beauty trend teaches us anything, it’s that the consumer wants access to cosmetics at more places, with a more accessible application on the go; and they want to keep their makeup on, even at the gym. That being said, it’s a good time to be in the beauty business. Customers are coming to you as the authority for what’s best in every situation, from the train to the dance floor to the treadmill. Carrying the latest goods will help you stay ahead of the competition, while keeping your customers looking their best–wherever they are.

[Photos courtesy of Cover Girl and Sweat Cosmetics]

In the early ’80s, Aaron Tiram owned beauty supply stores in Miami–so he had plenty of experience working with products of all stripes when he moved north to start his own hairstyling products venture. “He saw all those products and thought, ‘I can make these myself,’ so he came to Chicago to start his own manufacturing company,” recounts Jonathan Tiram, Aaron’s son and vice president of Ecoco, an eco-friendly, unisex haircare brand. “He knows the business inside and out. He was a pioneer.”

From a two-person startup to mega manufacturer with 200-plus SKUs sold in 30-plus countries, Ecoco has evolved into a fast-growing player in beauty– while keeping its core ethics intact. But, true to its visionary roots, the company keeps on hustling to improve, expand and innovate with the fresh energy and enthusiasm of a second generation.

“We look for natural ingredients that will benefit the user, and we introduce them into their everyday life– before anyone
else is doing it.”

—Jonathan Tiram, vice president, Ecoco

STARTUP TO SUCCESS
Jonathan notes that Ecoco came from truly humble beginnings. His father hired a single chemist, and together they introduced Eco Style hair gel, which set the tone for the coming decades of innovation.

“Talk about being ahead of the curve– he’s been developing and manufacturing eco-friendly products since 1985,” Jonathan says. “His vision was combining beauty with nature, achieving the desired style without damaging your hair or the environment. He was the first to market alcohol-free styling gel, which set him apart, and he was the first to market styling gel without color added: a clear, natural product called Krystal, made for all hair types.”

Today, Ecoco has more than 100 employees, but it’s still a true family business. Jonathan joined in 2011 to run sales and marketing, and went on to introduce his own men’s line, El Patron, at the 2014 International Beauty Show. His younger brother, Andrey Court, runs Master Well Comb, which the company acquired in 2015. And patriarch Aaron continues to focus on Ecoco’s R&D behind the scenes.

While Jonathan and Andrey are young and exuberant, they are equally methodical, focused and steeped in knowledge of the beauty industry. They have a clear vision of what they want each brand to be. And after spending an afternoon shooting them for our cover, our staff had no doubt that they will take Ecoco to a newfound level of success.

“We specialize in manufacturing eco- friendly products for all hair types; we’re a brand that’s for everyone, and we’re currently in multiple categories,” Jonathan says. “Of course, having a successful business is still difficult, even after so many years. You can’t replace hard work. But we’re passionate about what we do, and our passion drives the business. We never substitute for formulas. We don’t take shortcuts or look for the cheapest alternative. We keep the quality high. That’s why we’ve had success as a trusted consumer brand. And we have affordable prices, so it’s a win-win for consumers and retailers.”

Of course, constant product innovation also has helped the company soar to such heights. Recognizing this ingenuity, Jinny Beauty Supply honored Ecoco with its Product Innovation of the Year Award in 2017 for the Eco Style Black Castor & Flaxseed Oil line. The five products (currently some of the company’s hottest sellers) include Leave-In Conditioner; Conditioning, Styling & Shining Gel; Maximum Hair Growth Formula; Deep Conditioning Therapy; and Beeswax. “The industry is always evolving, and this is a global business, so we’re able to source from around the world, finding what best helps hair and skin, then using it in our development,” Jonathan explains. “The Black Castor & Flaxseed Oil line is a great example of that. We look for natural ingredients that will benefit the user, and we introduce it into their everyday life—before anyone else is doing it.”

Consumers have responded resoundingly to that ahead-of-the-curve thinking. Eddie Jhin, president of Jinny Beauty Supply, has distributed Ecoco products for 33 years. He says that in the last several years, the company’s business has boomed, growing 25 percent in 2016 over 2015, and a whopping 82 percent in 2017 (the brand’s best year ever). “I think the reason for such increase was definitely due to the new products launched in 2017, and because the company has really stepped up and positioned themselves well,” Jhin explains. “Aaron worked so hard on building his company to where it is, and both Jonathan and Andrey have been instrumental in growing it further. In 2018 and beyond, Ecoco will continue to be different and excel in the marketplace.”

Innovation is easier thanks to the company spearheading its own manufacturing, Jonathan explains, fueled by a top-notch R&D department and labs with award-winning chemists. “That’s the core of our company, and it gives us so much more flexibility: We handle our own packaging, ingredients–the whole process from concept to marketing,” he says. “There aren’t many true manufacturers left, but we have our own manufacturing facility. That gives us the cutting edge and the best price points for retailers and wholesalers, which make us a more attractive company to work with.”

A GLOBAL COMMUNITY
Taking care of people is another major tenet of the Ecoco ethos, and that attention extends from its own employees and Chicago locals in need to its retail partners and far-flung sources of raw materials.
In fact, every employee has worked at Ecoco for at least five years–and many have logged more than 10 or 20, a result of the positive working environment that Jonathan stresses is so important for success. “We care about employees and the environment–if we’re going to have our own business, we want to do it our way,” he says. “People trust and respect us because we deliver great products and do the right thing. And we use technology in manufacturing to make a better working environment for our employees, while creating more and more jobs.”

Indeed, the company already maintains two manufacturing facilities, more than 100,000 square feet of space in Chicago. But as growth continues, a sleek new corporate headquarters is opening this spring: a three-story, 60,000-square-foot glass building in the hip Ukrainian Village neighborhood of the Windy City. The new campus alone will create more than 35 new jobs in the first quarter of 2018.

Then there’s Ecoco’s charitable focus, which includes hosting give-back events throughout the year–drumming up back- to-school supplies for students in need, giving haircuts to local youth, donating to food kitchens, funding scholarships for beauty education and supporting youth sports such as soccer and football. Meanwhile, Ecoco’s educational outreach helps improve the lives of professionals and consumers alike.

“We care about employees and the environment– if we’re going to have our own business, we want to do it our way.”

—Jonathan Tiram, vice president, Ecoco

“We offer live classes at all levels– providing product knowledge, instruction on how to use the products and information about our company–for businesses, professionals and consumers,” Jonathan notes. “B2B, B2C, we do it all; education is essentially weekly. That’s why I love beauty. You get to work with amazing people, inspire them and make them feel good. It’s a unique business that allows for so much creativity.”

Ecoco’s positive influence extends beyond North America, into its markets in Europe, Asia, Australia and Africa. But its real focus is business to business, supporting its retail partners. For example, the company provides a store locator on its website, urges retailers to register and collects data for all of its partner chains. “Instead of trying to make the sale ourselves, we promote customers going to their nearest retailer,” Jonathan explains. “Our business model is to support the people who support us: our retailers and distributors. We’re a manufacturer, not a marketing company. We work with our vendors and retailers to find out what they need and how they want it.”

Those conversations drive Ecoco’s product development and expand its options for retailers and consumers alike. In fact, the company even has made unique products for special markets. “Staying flexible in a moving environment like beauty is key–and selling in over 30 countries, you have so many needs with so many skin and hair types, so we have to know what each market is looking for,” Jonathan says. “We stay competitive by knowing our consumer, working with our businesses, developing the right products and staying ahead of the curve.”

Luckily, over the decades since Aaron started the company, consumers around the globe have taken more of an interest in natural and eco-friendly products, increasing both Ecoco’s success and goodwill exponentially. “I think every cure and solution exists in nature, and I think more people care about their health and longevity, and their skin and hair. They’re more aware,” Jonathan says. “Here, we can feel good about what we make–safe products, no animal testing, products that make people literally smile when they use them. That’s why I’m able to be so passionate, because I believe in what we do, and other people see that and get excited, too. Plus, because everything is sustainably sourced, we can make positive impacts in other communities.”

GROWING BOLD
Jonathan proudly notes that Ecoco is a true category driver. “The styling gel category alone has had more than 20 percent category growth from 2016 to 2017, and we’re the No. 1 gel,” he explains. But staying on top of the ever-changing beauty game also requires diversification, and in the last few years, the Ecoco family has looked to expand its horizons.

“Ecoco has championed, and will continue to champion, creativity and self-expression, and we’re more committed than ever to releasing new products that revolutionize the
beauty industry.”

—Andrey Court, CEO, Master Well Comb

Those efforts kicked into high gear when Jonathan introduced El Patron in 2014. Whereas Ecoco is “kind of a hybrid,” Jonathan says, starting in salons and developing into a mass brand, El Patron is a professional brand. He even created a separate company, Talyoni, to launch the new line. Designed for modern men, with a focus on great performance, quality and marketing, El Patron has been embraced instantly–it’s currently the top-selling men’s brand in SalonCentric stores. Still, its founding principle mirrors Ecoco’s: “Innovation through and through,” Jonathan explains. “We were the first to market spray talc, which we had to patent, and the first to market sea salt spray for men. We also have semi-permanent hair color infused into styling gel, called Black Gel, which is super innovative and one of the top sellers for the line. It covers gray hair in three to four shampoos and is really easy to apply. But our No. 1 seller is Black Seed Beard Oil, which came out in 2014– you’ll see black seed oil as a trend now, but we’ve had it for years!”

In 2015, the family acquired Master Well Comb, a historic manufacturer of high- quality men’s toiletries (its slogan is “Trusted Since 1935”). Indeed, the heritage brand features a slew of respected barber products, and the Tirams retained all of its key original formulas. Meanwhile, new offerings and improvements to its styling gels have taken the old-time brand into the modern era.

“Master Well Comb is setting its sights on the next 80 years with trusted, classic products and formulations that are getting a clean, modern look for the modern man, with a graphic, expressive identity that celebrates individuality and creativity,” Andrey says. “Always clean and always classic, Master will continue to be a time-honored standard, but we’ll continue to develop cutting-edge products that change the way we view and use ingredients. We honor the past but never stop moving forward.”

Jonathan adds, “We were excited to add Master Well Comb to our portfolio of products. This brand is famous for its aftershave–there are literally more than 20 varieties of aftershave–and we’ve added some new innovations, too, like Black Gel for hair, Vanishing Menthol Shaving Cream, and Styling Gel and Wax; and we improved some of the styling formulas. Another key brand item is Krew Comb, an original formula since 1935 that’s a styling prep for hair and famous for being pink. The packaging, fragrances and formulas have that old-time feel, and those old-school looks are big again. The brand is sold through Urban Outfitters, for example–from Mad Men to hipsters, it’s still cool today.”

And, as the new launch and the acquisition have matured, Ecoco keeps breaking new ground. A full line of cannabidiol (CBD) oil-based products for hair and skin, featuring four formulas that provide heal- ing benefits from soothing eczema and psoriasis to counteracting the signs of aging, was released in March under the Ecoco brand. (The El Patron and Master Well Comb brands have also launched CBD oil-infused products.) “It’s definitely a big breakthrough for the industry, the first CBD line in the multicultural space,” Jonathan says. “Not many people can create a new category right now in beauty. Most people aren’t manufacturing, most people aren’t innovating. They’re [copycat] companies. But the stuff we do is for a reason. It’s just hard work and passion—passion for the consumer and delivering what they want, which is solutions for all hair and skin types. We make products that are really needed by consumers.”

Andrey adds that the company is seizing the zeitgeist, focusing on its mission of providing high-quality, budget-conscious products that allow customers to celebrate individuality and personal style. “We’re entering an era of love, inclusivity and pride,” he says. “We think it’s important for people to be their authentic selves, and we love helping people take pride in their appearance. Ecoco has championed, and will continue to champion, creativity and self-expression, and we’re more committed than ever to releasing new products that revolutionize the beauty industry.”

Similarly, Jonathan thinks retailers should work hard to elevate and diversify their own product offerings. The right mix of products and categories, he believes, can lure consumers away from online ordering and into stores. “Retailers are up against online, and online has every option, so the more options a store has, the more opportunities they have to sell to consumers,” he explains. “I think great service and strengthening the relationship with suppliers are also very important. Have those conversations, have that relationship–because by working with suppliers, you’ll have the right mix of products. Now, major retailers
are doing private labeling, but that’s not inventive. Instead, work with American manufacturers that are supporting you. It’s mutually beneficial!”

MAJOR MILESTONES
After more than 30 years of manufacturing, Ecoco has had a slew of memorable moments. Vice president Jonathan Tiram lists some of its standouts.
1985 - Aaron Tiram founds Ecoco and launches first-to-market alcohol-free styling gel.
2010 - Eco Style Krystal receives Best of the Best Award from TextureMedia.
2013 & 2014 - Eco Style Olive Oil receives Best of the Best Award from TextureMedia in back-to-back years.
2014 - Jonathan Tiram founds Talyoni and launches El Patron, a boutique professional men’s line.
2015 - Eco Cocktail receives Editor’s Choice Award from TextureMedia.
2015 - Ecoco acquires Master Well Comb, a heritage men’s grooming brand.
2017 - Ecoco receives Product Innovation of the Year Award from Jinny Beauty Supply for its original Black Castor & Flaxseed Oil product line.
2018 - A new corporate headquarters and third official Ecoco location opens in Chicago.

GET CONNECTED!
ecocoinc.com, elpatronusa.com, master1935.com
Instagram: @ecocobeauty, @elpatronusa, @masterwellcomb

Considering their similar backgrounds and interests, it’s surprising that Kevin Wachs and Steven Goddard didn’t truly form a bond until they’d spent decades in the beauty business. When Goddard was being honored in 2015 with City of Hope’s Spirit of Life Award, the two finally connected, joining forces as beauty business legends with a passion for helping others.

Wachs, president of Earthly Body in Chatsworth, California, had owned several beauty supply stores and salons, and eventually went on to helm a pioneering product empire. Goddard, then the owner of the wildly successful haircare brand Pravana, had spent 45 years in the industry, starting as a stylist and platform artist and later becoming a manufacturing marketing guru for big brands like Revlon, Wella and Sebastian before launching his own line.

When they did get together at long last, their partnership struck just the right note–not only for the two Southern California-born beauty bigwigs but for the scores of charities that benefit from their altruism. Both avid musicians since childhood, they’re now part of the Tribe, a supergroup that donates all of its proceeds to various causes, changing the world one concert at a time. Their next charity concert, Rock the Cure 2, will be held at the El Rey theatre in Los Angeles on June 22 and 23, with proceeds benefitting the City of Hope.

KINDRED SPIRITS
Wachs was born into the industry. His mother, now 83, still owns and operates a beauty supply store that’s just a stone’s throw from Earthly Body; Laura’s Beauty Supply has been a fixture in Chatsworth
for more than 35 years. Wachs himself joined a distributor team at only 16 years old, and opened his own store after marrying his wife, Mare, in 1985. A second and third location would follow in the 1990s, but that decade would also pique the couple’s interest in manufacturing. After losing a business in the San Fernando Valley earthquake of 1994, they used money from the Small Business Administration to start creating their own products–first in the back of one of their stores, then in their house’s garage as the operation grew.

“What are you doing to improve your business? If you don’t have at least 15 to 20 answers to that question, you’re not going to improve.”

—Kevin Wachs, founder, Earthly Body

The inspiration? Demand from customers who came in requesting hemp-based products. Wachs laughs now at the public’s initial confusion surrounding the ingredient, posing questions like “Is it legal?” and “Am I going to get high?” But after The Body Shop introduced a hemp skincare line, customers were clamoring for the healing ingredient in bodycare formulas.

“We had a ton of people coming in asking for hemp products after buying them at The Body Shop–and our answer was no, there wasn’t anything like that,” Wachs recalls. “We wanted to capture that business. And we still use hemp in almost everything we make.”

The brand began with one item: a hemp hand and body lotion available in four fragrances. In 1999, the couple attended their first trade show in Las Vegas, officially marking Earthly Body’s arrival–even if their excitement was, in retrospect, slightly premature. “We wrote three or four orders that day for maybe $100 each, and we thought we’d won the lottery,” Wachs says, laughing. “We went out and danced all night, we were so excited.”

The Wachses’ first international shipment, to Ecuador, was packed in their driveway–a far cry from their company’s presence in 40 countries today. But those decades of experience with beauty stores helped them to create products customers would crave. “Having beauty stores and understanding why people buy things has really helped us as a manufacturer,” Wachs explains. “To this day, when we come up with something new, we’re always thinking, ‘Would people buy it?’ It’s about knowing at the most basic level why people want to use your shampoo or detangler. If we have a good reason for why we might buy it, the odds are, someone else will probably like it as well.”

Like the Wachses, Goddard has an intimate knowledge of the beauty industry– but his was shaped first as a hairstylist behind the chair, then as a fast-rising star representing major manufacturers. Over an illustrious career, he moved from being a stylist to marketing and helping hatch new products in laboratories at top haircare companies. He has held a number of executive positions, including Redken senior vice president of marketing and advertising; senior vice president of global new product development for Revlon in Barcelona, Spain; general manager of Rusk Company; and president and CEO
of both Wella Corporation and Sebastian International. By 2004, he left his post at Wella and Sebastian to start Pravana, a company that thrived over 13 years under his direction, until he sold it to Henkel Corp. in 2017 so that he could focus on his two outside-the-industry passions: music and philanthropy.

INTRODUCING THE BAND
It was, in fact, those twin passions that brought Goddard and Wachs together. Wachs has been a drummer since high school–happy to “treat it like a hobby,” he says. At one time, his band, Pacific, was the No. 1 local musical group in the San Fernando Valley, winning KKDJ radio sta- tion's Battle of the Bands with DJ Charlie Tuna. He eventually assembled a musical crew for charity events as a fun side gig. In 2004, the Wachses formed the Get Together Foundation, a nonprofit dedicated to providing basic needs for the homeless; the foundation also promotes its own con- certs and donates all of the proceeds.

Meanwhile, Goddard, an accomplished guitar player, was being recognized for his own dedication to giving back. In 2015, he earned the prestigious City of Hope Spirit of Life Award, which honors outstanding philanthropic, personal and professional achievements. “I met Steve just before he received the Spirit of Life Award and knew he was a musician, so we started working on a show, Rock the Cure, held at The Canyon Club in Los Angeles, to piggyback along with the award event in Las Vegas,” Wachs recounts. “That year, we decided to up the ante on the events and, rather than just use my band, planned a tribute to the Beach Boys.”

“Not everybody can go to Vegas, but they can come down to the El Rey and become part of raising money for a cure!”

—Steve Goddard, founder, Pravana

Wachs reached out to a host of top-notch musicians, some of whom had actually played with the Beach Boys, as well as Carnie Wilson, daughter of Beach Boy Brian Wilson. The event was a sellout, raising more than $20,000–and Goddard grabbed a well-deserved piece of the spotlight. “I knew he played guitar and was really talented, but I’d never heard him sing. We invited him to be a part of
the show; he picked ‘Sail on Sailor’ and I thought, ‘Shoot, I’ve never heard him sing– what if he sucks?’” Wachs says, laughing. “But he came in and knocked everybody out, just killed it. He’s been a staple in all of our shows since then. He’s an amazing singer and guitarist–and quite a man as well.”

Goddard has similarly high praise for his bandmate and friend. “I’m not your typical guy; I don’t know anything about sports, guns, hunting or fishing,” he says. “Instead, I love music and the beauty industry, so there’s not a lot of guys I can talk to. But Kevin, like me, grew up in Southern California. We like a lot of the same music, and hanging out with him is a treat for me. He’s a very innovative and creative guy; we play off each other very well.”

Through his first concert with the Tribe, Goddard got involved with the Get Together Foundation, for which he now serves as president of the board of directors. Since 2015, the Tribe has performed a couple of times each year to benefit worthy causes, focusing in recent years on charities that address the homelessness epidemic. But this year, as Creative Age Publications’ CEO Deborah Carver gears up to accept the Spirit of Life Award, they’ve decided to repeat their 2015 success, hosting Rock the Cure 2 in June at the El Rey Theater in Los Angeles to benefit City of Hope. Goddard says, “Now I’m spending six months of the year in Maine, and I do similar philanthropic things on the East Coast, like a concert for wounded veterans or working week- ends at the homeless shelter. Then, in California, I’ll join in on several concerts each year with the Tribe.”

In addition to the core band of about 20 members (all veteran musicians who have worked with top musical names) who rotate musical roles, stars make frequent appearances. Legends such as Micky Dolenz of the Monkees and Mary Wilson from the Supremes are avid supporters and guest members at iconic Southern California venues such as the Palace Theatre and the Valley Performing Arts Center at California State University, Northridge. “They’re so talented. For me, it’s just a privilege to play with them or even watch them; I have to pinch myself,” Wachs marvels. “It’s quite an all-star band with a lot of talent, and they all donate their time, working for free for the charities we’ve chosen. That’s our Tribe family.”

ROCK THE CURE 2
June 22 and 23, El Rey Theatre, Los Angeles

On June 22 and 23, at Los Angeles’s El Rey Theatre, the Tribe will be putting on special performances to raise money for cancer research at the City of Hope ahead of the annual Spirit of Life Award event honoring Deborah Carver in Las Vegas. This year’s theme will be “Decades,” and they’re already soliciting influencers in the beauty biz to help introduce songs and deconstruct of-the-moment looks from the 1950s until the present day.

“We’ll be showing video clips with presenters talking about how music influences beauty and fashion, and vice versa; from Elvis and the Beatles to grunge, they’re intrinsically linked,” Steve Goddard says. “Not everybody can go to Vegas, but they can come down to the El Rey and become part of raising money for a cure!” Doors will open at 6:30 p.m. for a silent auction, with the show to follow at 8 p.m. For more info and to purchase tickets, visit rockthecurela.com or call (818) 727-7884. For those who can’t attend, you can still help by making a donation. Visit gettogetherfoundation.com to learn more.

WORDS OF WISDOM
Earthly Body president Kevin Wachs and Pravana founder Steve Goddard offer some key advice for stores to score success in today’s competitive landscape.

Kevin Wachs
• The Personal Touch: Identify and focus on the things you can provide that custom- ers can’t get elsewhere. A lot of that is service, a personal touch and products that need to be smelled, touched or tried on, like fashion accessories. If you have the same things they can buy online, in a big-box store or CVS, how do you compete? Service
is so important–knowing people’s names when they come in, creating loyalty. You can get educated online, but you can’t beat the personal touch between human beings and talking to someone live. And the smell of a product is so important. You can describe the scent all you want online, but there’s no substitute for unscrewing the cap and taking it in.
• If It Isn’t Broken, Don’t Fix It: This is my new theme in life: Not everything that’s new is better. I love email, but if it’s replacing face-to-face conversation or even phone calls, that’s not better. Some of our products have gotten great improvements, but our hand and body lotion is not much different than the first we made back in the day; it’s as good as it needs to be.
• Be Proactive: What are you doing to improve your business? If you don’t have at least 15 to 20 answers to that question, you’re not going to improve. We at Earthly Body ask that every day. You’re battling for the consumer’s dollar. If business is slow, what are you doing about that? People usually don’t have an answer to that question, but you need a lot of answers—a bunch of little things, good ideas—to treat a complicated problem. Action is what matters. If you think you can just sit back and let things happen, good luck!

Steve Goddard
• Get Social: Social media has become the primary means for beauty companies to communicate their marketing message and to solicit, excite and inform customers. The store environment is no different. Look for ways to use social media to connect with and excite your customers.
• Tap Into the DIY Trend: This is growing enormously. Social media platforms such as YouTube and Facebook make it easy for anyone to successfully experiment with virtu- ally any type of beauty product. Are you stocking products that match the current DIY beauty trends? If not, this is a great opportunity.
• Encourage Customers to Try Products: Every brick-and-mortar business is competing with online sales. Your point of difference is, store customers can see and touch the products in your store. Make the experience richer by having plenty of products, especially new products, available in easy-to-use testers.

It can take years of planning and struggling to become an overnight success in the beauty industry–for Innovative Beauty Products’ founders Clay and Lena Campbell, it took over a decade.

“There are literally tens of thousands of beauty products on the market, so breaking through can be very difficult and time- consuming, especially if you are small and undercapitalized,” Clay says. “We were five years into this thing and dead broke. But, strangely enough, time can be your friend–as long as you establish a good plan and are consistent with your execution. We tell everyone we are a 12-year overnight success.”

Innovative Beauty Products, the parent company of the Godefroy brand, has 75 SKUs that mainly cater to the women’s multicultural and men’s grooming market segments. The company’s best-sellers include 28 Day Mascara, Instant Eyebrow Tint and Double Lash & Brow. “As we have developed the product line over time, our customer base now includes women of all ages and nationalities and men with facial hair who are beginning to gray,” Lena says.

The Campbells recently sat down with Beauty Store Business to discuss how they turned their struggling business into a modern-day success story and what’s to come in the future.

BIG DREAMS IN THE BIG APPLE
Clay and Lena met shortly after graduating from college, and both worked for Revlon’s professional products division in New York City in the mid-1980s. “We reported to the same person ... and spent a lot of time together,” Lena says.

Lena attributes much of what she learned about the industry to her two marketing mentors at Revlon: Richard Stella and Karen Zipp. While working there, Lena and Clay married. Later, they relocated to Dallas, where Lena worked for Mary Kay for five years, all the while fine-tuning her product development skills.

After spending almost 11 years at Revlon in sales and marketing positions, Clay was employed by two other small beauty companies and worked as a niche product developer (“which I enjoyed very much and still do,” he says) before he and Lena were bitten by the entrepreneurial bug.

“Despite everything you read and hear, e-commerce is not going to eliminate retail.”

—Clay Campbell, cofounder, Innovative Beauty Products

In 2004, the couple founded Innovative Beauty Products, at first headquartered in Arlington, Texas, and twice relocated since then to move into larger facilities. That year, they acquired Godefroy–a manufacturing company founded in the 1800s in France that has since been owned by several large companies, including Carson products. Godefroy made its way to the U.S. around the 1930s and was the first manufacturer of TRESemmé haircare products in the 1940s. One Godefroy product that survived changes in ownership is the hair color capsules, still sold today.

“The goal was the same then as it is now: Bring to market high-margin, niche items that serve a unique purpose,” Clay says.

When Clay and Lena acquired Godefroy, the brand was in a state of disarray. It was generating less than $100,000 per year in revenue, and Clay says the challenges they faced made the acquisition almost the equivalent of starting a brand new business. “It had a loyal following and some very unique features; it just needed someone with the right skill set to focus on it. I tell my wife all the time there are a lot of Godefroys out there,” Clay explains.

Turning their attention toward revamping the company, Lena combined her practical and cost-conscious approach with Clay’s risk-taking, forward-thinking mentality. Lena says, “I take a much more conservative approach to business, and am very detail-oriented, whereas Clay is more of a big-picture type. ... If I could give you [a] visualization, Clay is 10 steps ahead of me and I’m in the background picking up the things that fell and cleaning them up.”

GROWING GODEFROY
In 2008, the Campbells introduced Instant Eyebrow Tint, a permanent eyebrow tinting kit that uses natural, plant-based, nontoxic dyes. It’s ideal for consumers with sensitivities to harsh, traditional hair-coloring products because it contains no hydrogen peroxide and pro- vides color that lasts for up to six weeks. “Before that, the only available product was [a lash and brow tint], which was very expensive and limited mostly to the pro market,” Clay says.

“The goal was the same then as it is now: Bring to market high-margin, niche items that serve a unique purpose.”

—Clay Campbell, cofounder, Innovative Beauty Products

Following the success of Instant Eyebrow Tint, Lena and Clay created 28 Day Mascara, an eyelash-tinting product that lasts for at least four weeks and features a nontoxic formula free of coal tar derivatives, synthetic dyes and hydrogen peroxide. And because it’s compliant with Food and Drug Administration regulations, they were able to sell 28 Day Mascara to larger chains in the U.S. and Europe.

About three years ago, Innovative Beauty Products introduced a men’s grooming line, which was, and continues to be, a big hit. The line’s best-sellers include Thick, a beard and mustache growth serum; Barbers Choice, premeasured color capsules ideal for coloring gray facial hair; and the company’s newest product, SilverFox–a non-greasy, leave-in serum that adds vibrancy and shine to dull, white or gray facial hair. “It’s a violet-based crème that you work into your beard to eliminate yellow and brassy tones in gray facial hair; think Shimmer Lights for men’s beards,” Clay says.

“Men’s grooming has been a good category for us, especially with the beard color and maintenance products,” Lena says. “We do well with these items on Amazon and the ethnic OTC market. The beard colors are very popular with African-American and Hispanic men.”

Today, the company’s distribution model is quite diversified. Fifty percent of their business is done on Amazon, both through direct sales and through third-party sellers. The remaining half is broken down as follows: retail, OTC ethnic, OTC Caucasian, salon, nail, catalog, specialty retail and international sales. “We have a distributor in every country that Amazon services. We are in 17 countries worldwide and, for whatever reason, we seem to do pretty well in Latin America and Eastern Europe, and especially well in Russia.”

Innovative Beauty Products has seven full-time employees and works with three contract workers on an as-needed basis. Though Lena says that no two days are the same, the couple spends most of their time managing their full-time staff, developing products, handling the logistics of manufacturing and doing back-office work.

“We try to provide everyone with a living wage, regardless of the skill set needed.”

—Lena Campbell, cofounder, Innovative Beauty Products

“We are very involved in all aspects of the business. ... Other than working with an outside chemist on formulations, everything else we do ourselves,” Clay says.

Lena adds, “We try to provide everyone with a living wage, regardless of the skill set needed. We bring our dog Max to work with us every day and he makes his daily rounds to say hi to everyone. Max brings a smile to everyone’s face.”

CONSTANTLY EVOLVING
Throughout Godefroy’s evolution over the last century, the beauty industry itself has seen its fair share of changes. “It’s a mature industry now without a lot of top-line growth, so we have seen a tremendous amount of consolidation, both in manufacturing and distribution,” Clay says. “It’s not nearly as entrepreneurial as when I started, and most of the larger distributors and retailers demand ever- increasing margins. Also, the OTC Caucasian market has seen a tremendous amount of store decline, making it even more difficult for small companies to gain entry.” Though Amazon has helped Innovative Beauty Products grow over the last several years, Clay notes that online retail as a whole has made it increasingly difficult for small companies to find success.

Lena says, “There are certainly a lot less full-service dealers and OTC stores than when I first began. But the nail and ethnic OTC markets were practically nonexistent as well, so that has created new opportunities.”

In the future, Lena says she hopes that the company’s export markets continue to grow, particularly in developing countries. “Social media has made it much easier to reach remote markets,” she explains.

But despite a lot of changes, some things have remained the same. “From a product development view, not much has changed. Other than African-Americans, who have distinctively unique needs for hair and skin products, most other nationalities can be catered to the same way you would the Caucasian market. Certainly your packaging and marketing materials should reflect the changing demographics though,” Clay says.

One of their focuses for the future is to grow Godefroy’s retail distribution. “Despite everything you read and hear, e-commerce is not going to eliminate retail,” he says. “People still go to retail stores to buy things. I would like to see us develop more distribution at the retail level, but it’s certainly not easy.”

For beauty store owners, Clay says that the two key factors to help retailers thrive in today’s market are 1) a diverse product offering and 2) good customer service. “Try to source and stock interesting items from all over the world and strive to offer the very best in customer service. Anything you can do to differentiate yourselves from the chains and Amazon will create real value and protection,” he says.

To find success in the industry, Lena also believes that it’s a necessity to have a network of experts you can call upon for advice. “With my experience working with billion-dollar companies, you always have an expert to ask about a situation. Now, being the owner of a small company, I do not have that luxury. Thank goodness for our network of friends and business associates that have helped guide us!”

Clay and Lena work well together because they recognize each other’s strengths. “We are both fortunate to work in an industry that we truly enjoy. If you’re lucky enough to enjoy what you do, it’s more of a hobby than a job,” Clay says.

Lena jokes that one advantage of working with her husband is that he “always pays for lunch,” and they truly have fun together and are passionate about bringing one-of-a-kind products to market. Clay says, “We both have different skill sets that complement each other, and neither of us takes ourselves too seriously, which helps.”

ENTREPRENEURIAL SPIRIT
Innovative Beauty Products cofounders Clay and Lena Campbell share their business tips for retailers and brand owners.

• Set Yourself Apart: “Our whole philosophy is to do things that nobody else has done,” Clay says. “Sometimes it works, sometimes it doesn’t, but when you’re a small company and don’t have a huge advertising budget, you’ve really got to do something to differentiate yourself.”
• Make Sure Your Packaging Is Effective:“We strategically use our packaging and product names as descriptors of what each product does,” Lena says. “We try to help the retailer in the sense that once they put it on shelves, the packaging pretty much tells customers exactly what they’re buying and exactly what they’re going to get.”
• Play to Your Strengths: The Campbells are focusing on product development to grow Innovative Beauty Products in the future. Clay says the couple stays ahead of trends, often extends existing, successful product lines and knows their audience. “If it makes sense for you, try to best serve your customers’ needs,” he says.
• Stay Organized: For retailers, how your store is organized will affect how well your products sell. “There’s no secret to it–just put things where they belong,” Clay says. Most of the Godefroy products are eye-related, so it makes sense for them to be placed near eyelash and eye accessories. Don’t make your customers work hard to find exactly what they need.

GET CONNECTED!
godefroybeauty.com
Instagram: @godefroybeauty
Facebook: @godefroybeauty

The face of beauty is changing; and this should be of no surprise. The U.S. population is set to become majority minority by mid-century. Minorities are increasing the population, expanding their education and income levels, and growing businesses–altogether amplifying their buying power and prowess. African American women in particular are rapidly filling in the voids in beauty. From wet lines for curly and coiled hair to cosmetics that accommodate darker skin tones, black-owned beauty brands are growing the market. Their successes build upon the work of their predecessors and spotlight the booming beauty segment and its constituents’ tremendous buying power.

BUYING POWER AND INFLUENCE
Black consumer spending is expected to reach $1.2 trillion by 2021, according to the Nielsen 2017 Diverse Intelligence Series report. The report also notes that black women (24.3 million people) control the vast majority of spending power among black consumers. These factors may partly explain why some beauty giants are now seriously expanding their beauty offerings for women of color. For instance, L’Oréal has established a New Jersey-based Women of Color Lab, and Unilever recently snapped up SheaMoisture in its acquisition of Sundial Brands–one of the largest black-owned beauty companies. These developments signal change and opportunity within the beauty sector–two factors that beauty retailers should pay attention to.

“Beauty retailers, if they have not already, must take heed of the immense impact black women can have on their bottom line by stocking the products we prefer and recognize as culturally relevant,” says Cheryl Pearson-McNeil Grace, senior vice president of U.S. strategic community alliances and consumer engagement for Nielsen. “In doing so, these retailers can tap into the $1.2 trillion in black buying power, while also tapping into the influence we have over non- black consumers. If you look at what’s hot at any given moment, its origins can often be found in the preference of black consumers, which has huge implications for businesses looking for growth in an increasingly multicultural U.S. population.”

It turns out that 73 percent of non-Hispanic whites and 67 percent of Hispanics believe that African Americans influence mainstream culture (according to Nielsen). Black people have had to creatively pursue advancement and provision in a society historically and contemporarily fraught with disadvantages and biases against them; and they’ve had to do so within the context of possessing inherently distinct characteristics. These factors are a breeding ground for creativity–and influence upon those who are watching.

“I noticed luxury beauty brands didn’t speak to me. From model choices to pigments and undertones, I didn’t see myself [represented].”

–Kristen Elise Brown, creator, Gold Label Cosmetics

As seen in the beauty sector, if a black woman can’t find what she needs, she’ll make it herself. Indeed, black women are excelling in entrepreneurship. The U.S. Census Bureau’s Survey of Business Owners reported in 2015 that the number of businesses primarily owned by black women grew to more than 1.5 million (a 67 percent increase) between 2007 and 2012. Nielsen specifies that these businesses collectively have earned more than $42 billion in sales, and their growth is in contrast to 13 percent for white women and 27 percent for all U.S. women.

Kristen Elise Brown, creator and owner of Gold Label Cosmetics, which offers cruelty-free and paraben-free beauty, says that she launched her line to help
fill the void in luxurious beauty products for women of color. She says, “I noticed luxury beauty brands didn’t speak to me. From model choices to pigments and under- tones, I didn’t see myself [represented]. I wanted some luxury [in which] women of color could say, ‘Wow, they really included me when they made this product.’ Or, ‘That model looks like me. How nice!’”

Vera Moore, founder and CEO of Vera Moore Cosmetics, which offers 157 SKUs across skin care and cosmetics for women of color, launched her brand after experiencing the void in quality cosmetics while portraying nurse Linda Metcalf on NBC’s Another World. Not only was the makeup the wrong shade for her skin but it rubbed off on everything, including her white uniform. “I needed help. I [knew that if] I was experiencing this, then other women of color were also. Thus, the genesis of Vera Moore Cosmetics,” she says.

Nielsen highlights a few characteristics of black female consumers that surely play a role in their trendsetting savvy and influence on mainstream culture. Forty-two percent of black women are influenced by what’s hot and what’s not (57 percent higher than non-Hispanic white women); 82 percent say it’s important to be well groomed. They’re also younger than their counterparts, with a mean age of 35.1 (versus 42.8 for non-Hispanic white females and 39.4 for all U.S. females). Black females are avid social-media users (69 percent use YouTube) and are prone to sharing their experiences with services and products via social media (43 percent). Fifty percent regularly seek advice before making a purchase, and 47 percent say others regularly seek their advice before making a purchase. All of these factors play a huge part in their impact on mainstream culture.

THE BLACK BEAUTY CONSUMER
Black women spend billions of dollars annually on beauty products. Essence Smart Beauty Research found that African American women were spending as much as 80 percent more on beauty than other women. One of the factors at play is that the average black woman has to contend with much trial and error to find the right products. “Women of color are extremely price conscious, but with focus on quality,” Brown says. “If it costs $65 but her skin looks like baby skin, it’s well worth it.”

Black women also become loyal to a brand when they find what works for them, says Lake Louise, founder of Plain Jane Beauty, which offers eco-friendly, organic, nontoxic cosmetics. The brand’s extensive color range accommodates a wide array of skin tones, such as the Crème Minerals foundation, offered in 17 shades. Louise says that her customers are overjoyed to find products that are both clean and a match. Her customers with darker skin have been especially happy to share their discovery of her brand with others. “We’re the only clean brand that has the color range, especially in liquid [foundation]. Black women come to us for ingredients, quality, performance and color range,” says Louise. She is also the CEO (chief eco-beauty officer) of Skin, Mind, Body Essentials, a beauty and wellness company. Louise is responsible for all of its brands, including Plain Jane Beauty, Lotus Moon (skin care), DetoxRx (wellness) and SON (for men). She says her educated demographic does their own research and knows what they’re looking for. “Whenever we get calls or emails or any kind of information from customers, they’re like, ‘I’m changing my diet, so now I want to change my beauty,’” Louise says.

“Constant education is key. [Consumers] come to you. They trust you and expect an answer. Let them know you care.”

–Vera Moore, founder, Vera Moore Cosmetics

Moore, on the other hand, has made it part of her brand’s mission to educate her customers about the importance of skin care in conjunction with makeup. The Vera Moore Cosmetics’ mantra is “skin care is the true foundation, makeup is an accessory.” She promises her customers that if they tend to their skin, they’ll see the results. Both Louise and Moore champion health and skin care, respectively, as chief components of their brands. And both of their approaches are right on target with black beauty consumer interests. Research shows that black women are increasingly educated about ingredients and what they need and want in a product; they’re invested in skin care (52 percent have a strict skincare routine, reports Nielsen); and they’re proponents of both natural and organic beauty products (63 percent buy natural products for health reasons, while 46 percent regularly use natural/organic beauty products).

Brown adds that although women of color are extremely price conscious, quality trumps price for them. She explains that they desire quality in every aspect of a brand, from ingredients to design and packaging. She says, “To me, the most important quality women of color look for in makeup is packaging. A great product in a crappy tube won’t move off the shelf. There have been times when I couldn’t move forward with a product because the packaging I had in mind just wasn’t hitting its mark.” Gold Label Cosmetics features minimalist, all-gold packaging to catch the eye of the discerning.

THE RETAIL CONUNDRUM
Black women are avid beauty users with needs and money to spend; so, why aren’t they buying the beauty products you’re offering? Industry experts agree that the top two reasons are ...

Your store doesn’t have what she’s looking for. If you are interested in attracting women of color to your store, you’ve got to offer color range. You can’t offer three shades (light, medium, dark) and think you’ve done due diligence. Black skin tones range from the lightest of hues to the deepest, darkest browns; and multiple shades can be found on her face alone. “As black women, we’ll have two shades on our face. Our forehead might be darker than our cheek. You can’t find one shade [and put it all over the face],” Louise says.

There is also undertone to consider. Two black women can have the same skin color but different undertones. Is she cool, warm or neutral? “There are three undertones,” Moore explains. “They never change. Blue veins equal cool undertones, green veins equal warm undertones and neutral is sort of a mixture of both. That’s the basics for starting a conversation and getting a more perfect foundation color. It’s not about just mixing colors to accommodate our array of complexion.”

Retailers should also be educated about color correctors, Louise explains. “[Retailers] offer concealers because that’s what people know. For darker skin, we use color correction in the oranges, the reds ... because it’s about color correcting and neutralizing those areas–tricking the eye as the light bounces off it. When I learned color correcting, that threw concealers out the window,” she says. “That’s why we don’t have 16 concealers, and why we push color correction, because that will change your life.”

“Black women come to us for ingredients, quality, performance and color range.”

–Lake Louise, creator, Plain Jane Beauty

She doesn’t know that your store is carrying what she’s looking for. Your store might already be carrying products that offer customers an extensive color range, yet maybe consumers aren’t buying them. If this is the case, you need to evaluate what you’re communicating to your customers. Your store’s imagery, advertising, marketing and promotions, need to convey inclusivity. When black women launch makeup brands, their offerings generally speak to the diversity of women, not just the women who look like them. Retailers should follow suit.

“[In your marketing, you want to say] ‘darker, browner skin tones ... rich shades,’” Louise says. “Women with darker shades don’t think they’re included in ‘women of color’ [because that phrase is usually marketed to lighter skin women]. Who comes into your store is [determined by] who you market to.” She explains that others refer to Plain Jane Beauty as a brand created for women of color because it includes brown shades and the creator is a woman of color who understands that need. But the launch of the brand was about “inclusivity,” says Louise. “... From vanilla to ebony and all the undertones underneath, I have colors that are better sellers than others. But, there are people who are that match and who are hard to match, so I keep [those shades]. I just don’t make a whole lot of them.”

Experts offer the following additional suggestions for retailers: For one, be vigilant in maintaining the quality, appearance and condition of your products. Women aren’t interested in counters “where the foundations have separated, the eyeshadows are crumbled and the lip products are mushed all over the place,” Brown says. Second, don’t send her off to an isolated area of the store to look for her cosmetics within a designated area; integrate them throughout.

Nielsen’s report also highlighted a few attributes that will come in handy for retailers seeking to attract women of all skin tones. Sixty-two percent of black women enjoy wandering a store looking for new, interesting products (10 percent higher than non-Hispanic white women); 43 percent like to change brands often for the sake of variety and novelty (57 percent higher); 45 percent tend to make impulse purchases (20 percent higher); and 85 percent will gladly switch brands to use a coupon (19 percent higher). And, African American women still favor the brick-and-mortar experience, since 70 percent like to smell products in-store before buying them (5 percent higher than non-Hispanic white women).

Some retailers may face a learning curve to catch up with the evolving beauty market, but success is simply a matter of decision and education. “Constant education is key,” Moore says. “[Consumers] come to you. They trust you and expect an answer. Let them know you care. It’s not about the sale. It will come. Initial sales don’t make a business. They must believe and trust you.”

GET CONNECTED!
Gold Label Cosmetics, goldlabelcosmetics.com
Plain Jane Beauty, plainjanebeauty.net
Vera Moore Cosmetics, veramoorecosmetics.com