Beauty Bakerie Cosmetics Brand, Inc. announced in March that it would shutter. Now, West Lane Capital Partners, the private equity firm that bought Mented earlier this year, has scooped it up, and it's slated for a fall relaunch. Read more: https://bit.ly/3WideeI #hereforthefierce #beautyentrepreneur #wellnessentrepreneur #beautybusiness #beautynews
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We all passed The Body Shop sign at some point and some of us know the story of the Body Shop and what the Brand stands for. Bruce Whitfield is outlining a classic example of Purpose misalignment in an acquisition - Once the purpose is lost, culture follows, then customers and staff. A sad ending to a beautiful brand. Youre right Bruce Whitfield - "you poo-poo purpose at your peril" - #DSM Advisory #leadershipinsights
Award winning broadcaster, best-selling author & speaker l Translating complex economic, political & business concepts into engaging, understandable & humorous narratives for organisations
Body Shop, the revolutionary skincare group created by the late Dame Anita Roddick in Brighton in the 1970s, has gone bust 18 years after the founder’s death. It’s a big lesson for managers as to why they should never lose sight of what made the business they run great in the first place. She created a purpose-driven brand long before it was trendy to do so, and her customers loved it. Roddick gained Body Shop a legion of fans around the world based on her ethical trading principles, which included a ban on animal testing and ensuring raw materials were ethically sourced. It is why she drew criticism for selling out to a big firm which was not seen to be aligned with her values. It has changed hands three times since Roddick sold to multi-national beauty group L’Oreal for £652m, a year before her death in 2006. At first, the business showed signs of growth, and it was sold to Brazilian group Natura for £880m 11 years later. In 2023, it was sold to private equity firm Aurelius for a quarter of that, and it has now called in administrators to rescue and restructure it. Where did it all go wrong? Under Roddick, its customers felt that they had found a brand that aligned with 21st-century values. Products sold at a premium created a sense that, somehow, customers were contributing to the fight against environmental and social exploitation. Under corporate ownership, however, it became about driving profitability, and manufacturing moved to the Philippines as bean counters focussed on volume and margins, which included new pricing models which undermined the perceived value of the brand. That sort of management works for a while, but unless you bring on legions of new fans, it wears thin over time. The demise of Body Shop demonstrates what can go wrong when founders exit, and the principles on which a business was built play second fiddle to cold commercial imperatives. The company employs 10,000 people and another 12,000 staff through franchises in 3,000 stores in more than 70 countries. In January, the private equity owners announced plans to sell most outlets in Europe and part of Asia. Calling in the administrators means the group is likely to continue but with a far smaller physical presence. It is a stark reminder to brand owners that once your customers love who you are and what you stand for, you poo-poo purpose at your peril. #BodyShop #InformedDecisionMaking #BusinessInsights #Purpose #BruceWhitfield
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Chief Fixer that lives and dies by the deadline; Leading by supporting; Planner and Organiser to the Executives; Technophile
This highlights the importance of retaining your #BrandPurpose as well as the harm that can be done from pure profit-seeking. While there are many ways to show a profit, there is only one reason that makes your purpose make sense.
Award winning broadcaster, best-selling author & speaker l Translating complex economic, political & business concepts into engaging, understandable & humorous narratives for organisations
Body Shop, the revolutionary skincare group created by the late Dame Anita Roddick in Brighton in the 1970s, has gone bust 18 years after the founder’s death. It’s a big lesson for managers as to why they should never lose sight of what made the business they run great in the first place. She created a purpose-driven brand long before it was trendy to do so, and her customers loved it. Roddick gained Body Shop a legion of fans around the world based on her ethical trading principles, which included a ban on animal testing and ensuring raw materials were ethically sourced. It is why she drew criticism for selling out to a big firm which was not seen to be aligned with her values. It has changed hands three times since Roddick sold to multi-national beauty group L’Oreal for £652m, a year before her death in 2006. At first, the business showed signs of growth, and it was sold to Brazilian group Natura for £880m 11 years later. In 2023, it was sold to private equity firm Aurelius for a quarter of that, and it has now called in administrators to rescue and restructure it. Where did it all go wrong? Under Roddick, its customers felt that they had found a brand that aligned with 21st-century values. Products sold at a premium created a sense that, somehow, customers were contributing to the fight against environmental and social exploitation. Under corporate ownership, however, it became about driving profitability, and manufacturing moved to the Philippines as bean counters focussed on volume and margins, which included new pricing models which undermined the perceived value of the brand. That sort of management works for a while, but unless you bring on legions of new fans, it wears thin over time. The demise of Body Shop demonstrates what can go wrong when founders exit, and the principles on which a business was built play second fiddle to cold commercial imperatives. The company employs 10,000 people and another 12,000 staff through franchises in 3,000 stores in more than 70 countries. In January, the private equity owners announced plans to sell most outlets in Europe and part of Asia. Calling in the administrators means the group is likely to continue but with a far smaller physical presence. It is a stark reminder to brand owners that once your customers love who you are and what you stand for, you poo-poo purpose at your peril. #BodyShop #InformedDecisionMaking #BusinessInsights #Purpose #BruceWhitfield
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Partner @ EXEO Capital | Chairman - Nurture Brands | Private Equity Investor | Shapers Podcast
The Body Shop is such a good case study for businesses and for private equity in particular. "WHY" we do things and "HOW" we do them matters! And the short-term culture that PE investment horizons often tend to support, will in my mind be increasingly punished if we do not honor the junction that society is finding itself at. Short term thinking and doing will have to align with long-term values, sustainability and value creation.
Award winning broadcaster, best-selling author & speaker l Translating complex economic, political & business concepts into engaging, understandable & humorous narratives for organisations
Body Shop, the revolutionary skincare group created by the late Dame Anita Roddick in Brighton in the 1970s, has gone bust 18 years after the founder’s death. It’s a big lesson for managers as to why they should never lose sight of what made the business they run great in the first place. She created a purpose-driven brand long before it was trendy to do so, and her customers loved it. Roddick gained Body Shop a legion of fans around the world based on her ethical trading principles, which included a ban on animal testing and ensuring raw materials were ethically sourced. It is why she drew criticism for selling out to a big firm which was not seen to be aligned with her values. It has changed hands three times since Roddick sold to multi-national beauty group L’Oreal for £652m, a year before her death in 2006. At first, the business showed signs of growth, and it was sold to Brazilian group Natura for £880m 11 years later. In 2023, it was sold to private equity firm Aurelius for a quarter of that, and it has now called in administrators to rescue and restructure it. Where did it all go wrong? Under Roddick, its customers felt that they had found a brand that aligned with 21st-century values. Products sold at a premium created a sense that, somehow, customers were contributing to the fight against environmental and social exploitation. Under corporate ownership, however, it became about driving profitability, and manufacturing moved to the Philippines as bean counters focussed on volume and margins, which included new pricing models which undermined the perceived value of the brand. That sort of management works for a while, but unless you bring on legions of new fans, it wears thin over time. The demise of Body Shop demonstrates what can go wrong when founders exit, and the principles on which a business was built play second fiddle to cold commercial imperatives. The company employs 10,000 people and another 12,000 staff through franchises in 3,000 stores in more than 70 countries. In January, the private equity owners announced plans to sell most outlets in Europe and part of Asia. Calling in the administrators means the group is likely to continue but with a far smaller physical presence. It is a stark reminder to brand owners that once your customers love who you are and what you stand for, you poo-poo purpose at your peril. #BodyShop #InformedDecisionMaking #BusinessInsights #Purpose #BruceWhitfield
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Award winning broadcaster, best-selling author & speaker l Translating complex economic, political & business concepts into engaging, understandable & humorous narratives for organisations
Body Shop, the revolutionary skincare group created by the late Dame Anita Roddick in Brighton in the 1970s, has gone bust 18 years after the founder’s death. It’s a big lesson for managers as to why they should never lose sight of what made the business they run great in the first place. She created a purpose-driven brand long before it was trendy to do so, and her customers loved it. Roddick gained Body Shop a legion of fans around the world based on her ethical trading principles, which included a ban on animal testing and ensuring raw materials were ethically sourced. It is why she drew criticism for selling out to a big firm which was not seen to be aligned with her values. It has changed hands three times since Roddick sold to multi-national beauty group L’Oreal for £652m, a year before her death in 2006. At first, the business showed signs of growth, and it was sold to Brazilian group Natura for £880m 11 years later. In 2023, it was sold to private equity firm Aurelius for a quarter of that, and it has now called in administrators to rescue and restructure it. Where did it all go wrong? Under Roddick, its customers felt that they had found a brand that aligned with 21st-century values. Products sold at a premium created a sense that, somehow, customers were contributing to the fight against environmental and social exploitation. Under corporate ownership, however, it became about driving profitability, and manufacturing moved to the Philippines as bean counters focussed on volume and margins, which included new pricing models which undermined the perceived value of the brand. That sort of management works for a while, but unless you bring on legions of new fans, it wears thin over time. The demise of Body Shop demonstrates what can go wrong when founders exit, and the principles on which a business was built play second fiddle to cold commercial imperatives. The company employs 10,000 people and another 12,000 staff through franchises in 3,000 stores in more than 70 countries. In January, the private equity owners announced plans to sell most outlets in Europe and part of Asia. Calling in the administrators means the group is likely to continue but with a far smaller physical presence. It is a stark reminder to brand owners that once your customers love who you are and what you stand for, you poo-poo purpose at your peril. #BodyShop #InformedDecisionMaking #BusinessInsights #Purpose #BruceWhitfield
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Community Builder|Corporate Relationship Manager|Business Coach|Public Speaker|Moderator/Facilitator|MC|slamic Banking|Fintech Enthusiast|Entrepreneur
A reminder to always remember your purpose as a business owner and to maintain consistency with the principles upon which your business was built
Award winning broadcaster, best-selling author & speaker l Translating complex economic, political & business concepts into engaging, understandable & humorous narratives for organisations
Body Shop, the revolutionary skincare group created by the late Dame Anita Roddick in Brighton in the 1970s, has gone bust 18 years after the founder’s death. It’s a big lesson for managers as to why they should never lose sight of what made the business they run great in the first place. She created a purpose-driven brand long before it was trendy to do so, and her customers loved it. Roddick gained Body Shop a legion of fans around the world based on her ethical trading principles, which included a ban on animal testing and ensuring raw materials were ethically sourced. It is why she drew criticism for selling out to a big firm which was not seen to be aligned with her values. It has changed hands three times since Roddick sold to multi-national beauty group L’Oreal for £652m, a year before her death in 2006. At first, the business showed signs of growth, and it was sold to Brazilian group Natura for £880m 11 years later. In 2023, it was sold to private equity firm Aurelius for a quarter of that, and it has now called in administrators to rescue and restructure it. Where did it all go wrong? Under Roddick, its customers felt that they had found a brand that aligned with 21st-century values. Products sold at a premium created a sense that, somehow, customers were contributing to the fight against environmental and social exploitation. Under corporate ownership, however, it became about driving profitability, and manufacturing moved to the Philippines as bean counters focussed on volume and margins, which included new pricing models which undermined the perceived value of the brand. That sort of management works for a while, but unless you bring on legions of new fans, it wears thin over time. The demise of Body Shop demonstrates what can go wrong when founders exit, and the principles on which a business was built play second fiddle to cold commercial imperatives. The company employs 10,000 people and another 12,000 staff through franchises in 3,000 stores in more than 70 countries. In January, the private equity owners announced plans to sell most outlets in Europe and part of Asia. Calling in the administrators means the group is likely to continue but with a far smaller physical presence. It is a stark reminder to brand owners that once your customers love who you are and what you stand for, you poo-poo purpose at your peril. #BodyShop #InformedDecisionMaking #BusinessInsights #Purpose #BruceWhitfield
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FOR STRUGGLING PUBLIC COMPANIES, GOING PRIVATE IS NO PANACEA The Business of Fashion: Nordstrom, TOD'S and L’OCCITANE Group are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors. On Sunday, Puig filed to go public in Spain, betting that an infusion of capital and the “checks and balances” of a listed company structure will unlock the next phase of growth at the fragrance and cosmetics giant. In fashion, many brands and retailers are coming to the opposite conclusion. This week also saw Macy's end its proxy fight with a pair of activist investors, appointing two of their slate of nominees to the department store operator’s board. The new directors will sit on a committee to evaluate the activists’ $6.6 billion takeover bid. Macy’s wasn’t the only company contemplating going private. Austrian billionaire Reinold Geiger is reportedly lining up potential lenders and investors, including the private equity giant Blackstone, to acquire L’Occitane (Geiger is already the beauty conglomerate’s controlling shareholder). There’s more: The Nordstrom family is reportedly mulling taking its namesake department store chain private. Italian shoemaker Tod’s is planning to delist from the Italian stock exchange, eliciting the help of L Catterton, LVMH’s investment arm, which agreed to buy 36 percent of Tod’s shares in February. Struggling direct-to-consumer brands like Allbirds, which recently received a notice from Nasdaq that it would be delisted if it can’t raise its share price, are among other potential takeover targets. The circumstances are different at each of these companies. But the motivation for going private is often the same: a belief that it will be easier to turn around a struggling business away from the scrutiny of the public market. Tod’s owners said in a statement in February that going private would grant the company “greater management and organisational flexibility, with faster decision-making and execution times.” There’s some truth to that. Turning around a fashion business requires commitment, patience and finesse, qualities that few investors possess. For a public company, a couple disappointing quarters can derail a meticulously planned five-year strategy. Family-controlled companies think in terms of generations, not quarters (at least until the heirs get antsy for a payday). Rather than cashing out when the going gets tough, these owners have the type of vested interest in the long-term success of their companies necessary for gruelling, high-risk turnarounds. learn more: https://lnkd.in/gajZSUAR #ai #fashion #metaverse #web3 #investment
For Struggling Public Companies, Going Private Is No Panacea
businessoffashion.com
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Black-founded and owned, Mented Cosmetics, was acquired by West Lane Capital Partners. Terms of the transaction were not disclosed. Mented launched its brand of clean, vegan, cruelty free products in 2017. They rose in popularity with a range of nude lipstick shades that worked across skin tones. By 2020, the company had raised $3 million dollars in series seed from lead investor CircleUp Growth Partners, making co-founders, KJ Miller and Amanda Johnson, the 15th & 16th Black women in the U.S. to raise more than $1 million in capital. The brand has enjoyed healthy retail partnerships with Target and Ulta Beauty. According to a West Lane issued press release, the company brings its deep industry relationships and knowledge to support the continued distribution of the Mented brand as well as establish new innovative products to meet consumer demand. West Lane has acquired numerous beauty and wellness businesses over the past few years and continues to grow its portfolio of companies in this space. "Mented is a very strong addition to the West Lane platform of beauty and wellness businesses, and we are excited to work with KJ and the team to continue providing high quality products to Mented's loyal customer base," said Michael Wentz, a Vice President at West Lane. KJ Miller added "Joining the West Lane portfolio is the right strategic move for Mented and will provide numerous growth opportunities for the brand. West Lane's resources in the beauty and wellness space will provide tremendous benefits for the business from both an operational as well as growth perspective. We have been fortunate to have built up a large and engaged customer base and look forward to continuing to provide them with high quality products to suit their particular needs and skin types." #beauty #beautynews #beautycompanies #beautytrends #cosmetics #beeautyindustry #blackowned #entrepreneurs #multiculturalmarketing #mcbi #beautyretail #beautyprofessionals #beautytrade
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More is not always better — but Kylie Jenner doesn’t seem to think so. Kylie Jenner, Forbes’ certified youngest self-made billionaire and self-proclaimed vodka soda connoisseur, is entering her 6th business venture. Sprinter Spirits is the newest addition to Jenner’s resumé, totaling her brand ownership to 6: KHY by Kylie Jenner, Kylie Baby, Kylie Skin, Kylie Cosmetics, LLC, Kylie Swim, and now Sprinter. Here’s where Kylie’s celebrity alcohol brand falls short of her iconic brands: 🍸 Too much, too fast. There is no connection between Sprinter and her 5 existing brands (in comparison to celebrity brand portfolios like Rihanna’s Savage X Fenty and Fenty Beauty being in two separate industries but both centering around a cohesive mission of inclusivity), making the launch appear disjointed and random. 🍸 Sprinter’s colorful design is a stark contrast to the rest of Jenner’s signature minimalist personal brand, which dilutes the overall recognizability and strength of her personal brand. 🍸 Canned cocktails aren’t exactly new — in fact, that space is becoming more saturated by the minute. Jenner’s choice to release this product line comes off more like a cash grab than a genuine personal interest in the alcohol space. What do you think of Kylie Jenner’s newest business venture? Let us know your thoughts in the comments below. #kyliejenner #brandidentity #newventure
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In 2023, the beauty industry witnessed a flurry of mergers and acquisitions (M&A) as companies sought to expand their portfolios and capitalize on growth opportunities. Despite potential economic headwinds, the beauty market has demonstrated resilience and adaptability, with U.S. prestige beauty industry sales reaching $14 billion in the first half of the year—a 15% increase compared to the same period in 2022. High-profile transactions, including Procter & Gamble's acquisition of Mielle and e.l.f. Beauty's purchase of Naturium for $355 million shows the strategic importance of diversification and direct-to-consumer engagement. As we delve into the intricacies of the beauty M&A landscape of 2023, we'll explore how these deals are not only driving financial growth but also setting new standards for what constitutes an attractive investment in the beauty industry. Here is a comprehensive list of notable beauty M&A deals that took place throughout the year: https://lnkd.in/gHPgSRwJ #retail #fashion #businessnews #fashionindustry #retailnews #beautytrends #fashionnews #ecommerce #dtc #consumertrends #trends
The Biggest Beauty M&A Investment Deals of 2023
retailboss.co
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Senior Executive @ Accenture | Unified Commerce | Data & AI | Digital | ERP | Trasformation Officer | POS | Order Management | Payment |
Charting a New Course: Tod's Embarks on a Journey to Private Ownership In a bold move, TOD'S, the renowned luxury leather goods company, alongside private equity fund L Catterton, is embarking on a journey to delist from the public market. Here, we delve into the compelling reasons why going private emerges as a prudent choice for Tod's. 1. Unlocking Value: Tod's wants to be valued for what it's really worth, not just its stock price. Going private lets Tod's focus on long-term plans, potentially benefiting shareholders. 2. Flexible Decision-Making: Privatization frees Tod's from the pressure of meeting short-term investor expectations. This means Tod's can invest boldly, innovate, and explore new opportunities without constant scrutiny. 3. Streamlined Operations: By going private, Tod's can cut through red tape and operate more efficiently. With fewer rules to follow, Tod's can use its resources better and make decisions faster, boosting productivity and profits. 4. Long-Term Growth: Tod's can now focus on long-term success without worrying about meeting quarterly targets. This means investing in innovation, building the brand, and keeping customers happy for sustained growth. 5. Partnerships for Success: Partnering with L Catterton brings expertise and resources to Tod's, helping it grow strategically and stay competitive in the luxury market. As Tod's embarks on this new chapter, the stage is set for a reinvigorated brand poised to captivate consumers and stakeholders alike with its timeless elegance and enduring appeal. #LuxuryGoods #StrategicDecision #OperationalEfficiency https://lnkd.in/dmZCAKAe
Tod’s Group to Go Private in Deal with L Catterton
businessoffashion.com
