CosmoBiz Magazine November 2015 | Page 91

Clariant Expands in India Clariant, the Swiss chemical company, has been working with its Indian offshoot to come to an agreement with Vivimed Lab. The Clariant operation will be acquiring a segment of the Indian Chemical company in order to diversify its own offerings. It is hoped that this acquisition will enable them to produce more sun care, hair and skincare, and antimicrobial products. A representative of the company said in a press release, “The personal care industry in India offers us immense potential, supported by the growing middle-class consumer population and the rising disposable income. This strategic decision will be a significant step towards strengthening our product portfolio and thereby reinforcing Clariant’s long term commitment in the segment. We believe in the growth potential that India offers and are focussed on expanding our footprint in the region.” Africa and Middle East UK Conglomerate Faces Exchange Rate Issues in Africa Rwanda and Ghana as quickly growing segments. Estee Lauder recently announced plans to expand the MAC brand into Rwanda, so it should be of little surprise for the rest of the cosmetic leaders to take note. New insights point to extreme growth in the Middle Eastern beauty market in particular. Current expectations predict that the market will increase by 74% to $80 billion by 2020. South African Sorbet Salon Celebrates 10th Anniversary One of South Africa’s most esteemed and largest Salon groups has been celebrating its 10th anniversary. The family business was started by Ian Fuhr in 2005 and has rapidly expanding to 137 locations, one of the most recent being a flagship store in London. Fuhr started the business working with his three children and a niece, and the family still own and operate five of the total stores, the rest being franchises. Sorbet has been one of the trend leaders in the area: in 2012 they started their own Dry Bar and have since gone on to launch Sorbet Man—catering to the growing men’s grooming industry in South Africa, and Candi & Co an, ethnic hair division. The total Sorbet group employs approximately 1,200 staff with 120 of the franchises being predominantly female; the company take pride in these statistics and has made itself known as a charitable powerhouse in the world of female empowerment. PZ Cussons, the conglomerate of UK consumer goods, announced some recent stats on its African and Asian performance. Unfortunately, it seems that exchange rates are affecting company sales. Nigeria remains the company’s most diverse and largest market, and luckily the exchange rate has remained fairly stable. The company did note that, “ Low oil prices continue to contribute to an environment of tight liquidity with additional foreign exchange restrictions imposed for certain imported items.” Meanwhile changes in exchange rates have been shown to have impacted sales in Kenya and Ghana. L’Oreal Looks to Emerging Markets Although the personal care company sees most of its profits, up to 60%, c oming from Western Europe and North America, the corporation has recently turned its focus to the Middle East and Africa. It’s reported that the European market is losing steam, making less tapped markets more interesting than ever. Recent stats show that 40% of revenue for large cosmetics companies is coming from emerging markets. This is up from 2005 when these same markets only made up approximately 25%. L’Oreal in particular has been looking into 91