Made in Italy

Part
01
of six
Part
01

Top White Label Beauty Manufacturers

The top three white label beauty product manufacturers in the United States are Mana Products, Inc., Lady Burd, and FMK Labs, Inc. The required details were all inputted into the linked spreadsheet, rows 2 – 4, and columns A — B.

FINDINGS:

TOP WHITE LABEL BEAUTY MANUFACTURERS

Based on sales figures, the details of the top three white label beauty manufacturers in the United States are the following:

MANA PRODUCTS, INC.

  • Mana Products, Inc. is a private label manufacturer that offers innovative beauty products to key players in the beauty industry.
  • The company's products include color cosmetics, skin care, hair care, and other beauty product lines.
  • Its estimated revenue is around $284.92 million.

LADY BURD

  • Lady Burd is involved in manufacturing private label beauty products. Its beauty product categories include cosmetics for the face, eyes, cheeks, and lips.
  • The company also manufactures mineral makeup, skin care products, and beauty accessories.
  • It is earning approximately $20.86 million in annual sales.

FMK Labs, Inc.

RESEARCH STRATEGY:

To determine the top three white label beauty product manufacturers in the United States, we first looked for directly available lists of top private label or white label beauty product manufacturers. We looked for this information in various sources such as in beauty industry sites such as Cosmetic Index and other similar sites. Based on this search effort, we found a consolidated list of private label cosmetics manufacturers from the Cosmetic Index site. To determine the top manufacturers from this list, we tried to check their revenues from their official websites and any available financial report. However, we found out that most of the companies are private and hence, not required to release their revenues publicly. We then checked the estimated revenues of these companies by looking through publicly available business directories such as Hoovers, Crunchbase, and Craft. After validating the sales data of the companies, we were able to identify the three firms with the highest revenue figures. Based on the estimated revenue data in the Hoovers site, the following are the sales data of the top three companies: Mana Products — $284.92 million; Lady Burd — $20.86 million; and FMK Labs — $8.16 million. The differences between the companies' revenues are quite big. However, their revenue data are still significantly higher than the other manufacturers in the list such as the following runners-up: VisagePro — $0.21 million; Dynamic Blending Specialists — $0.78 million; Frost Cosmetics — $0.23 million; Precious Cosmetics — $1.33 million; Colorlab Cosmetics — $4.05 million; and Radical Cosmetics — $2.2 million. The other companies on the list also have much lower sales data. Given this, we concluded that the three chosen companies were the top private label manufacturers in the beauty industry in the United States.
Part
02
of six
Part
02

White Label Beauty Manufacturers CL

Mana’ s Hush product prices range from $24-$34 and the price of Lady Burd Anti-Shine Kit Summer Special is $15.95. Mana's sales growth per year is 402.5%, Lady Burd's is -43.0% and FMK's is -28.5%. The findings are listed below and in the spreadsheet.

White Label Beauty Manufacturers CL

1. Mana Products, Inc:

  • Sales Growth Per Year: The sales growth per year of Mana products is 402.5%. (Please refer to calculation)
  • Product Price Point Examples: Mana’ s Hush product prices range from $24-$34.
  • Mana is a leading contract and private-label maker of cosmetics, skin care, and hair care products, and develops, manufactures, and packages these items for the nation's top beauty brands.

2. Lady Burd:

  • Sales Growth Per Year: The sales growth per year of Lady Burd is -43.0% (Please refer to calculation)
  • Product Price Point Examples: The price of Anti-Shine Kit Summer Special is $15.95.
  • The price of 4 Travel Sized Moisturizers & Masques kit is $10.95.
  • The price of Royal View Shadow Base and Correctors is $1.95.
  • Lady Burd manufactures cosmetics and offers colors for eyes, cheeks, and lips; skincare products for age defying, hydrating, and calming; minerals for face, eyes, cheeks, and lips; and brush line, accessories, and displays.

3. FMK Labs:

  • Sales Growth Per Year: The sales growth per year of FMK Labs is -28.5% (Please refer to calculation)
  • FMK Labs is a leading private label and contract manufacturer and offer formulation, compounding, filling, packaging and quality assurance services for personal care & color cosmetic products.

Research Strategy:

1. What information is not available?

  • Information on the customer demographics and regional demographics is not available for Mana Products, Lady Burd and FMK Labs. Also, there is no information on the product price examples of FMK Labs.

2. Research Strategy:

Our first strategy was to look for information on the company websites of Mana Products, Lady Burd and FMK Labs. We searched for company reports, press releases, and blogs to see if they have published any information about the products target market, which would have included demographics of the customer and regional markets, but this strategy did not work, because we were only able to find information about the company overview, people, services, and products. We tried this strategy because we thought some companies publish information about who are buying their products, and to which customers the products are targeted.

Our second strategy was to look for information on sites that provide insights on audience measurement like Numerator and Quantcast. This strategy did not work as the search result did not show information for Mana Products, Lady Burd and FMK Labs in their database. We had thought that this strategy may work as these sites provide insights on real-time advertising, audience insights and measurement with comprehensive data on purchasing behavior, and may have included these companies in their database.

Our third strategy was to look for articles and reports on the Beauty and Cosmetic industry site like Beauty Packaging, cosmeticbusiness, and cosmeticindex. This strategy did not work as there was no information about demographics, instead we could only find information about an overview of these companies. We had thought that this strategy may work as these sites published information about personal care, cosmetic and fragrance industry and may have published this information.

Our fourth strategy was to look for interviews of C level executives for the companies listed on sites like happi.com, cosmeticdesign, and premiumbeatutynews. This strategy also did not work as the information found was about their success and how they manage their cosmetic business. We had thought that this strategy may work as C-Level executives discuss their company market strategy and may have answered questions about the demographics market. WeI had also thought there may be a discussion about some products of the company and their price range or a new product launch with price for FMK Labs.

3. Calculation for Sales Growth Per Year :

Mana Products Inc:

  • From the graph, the estimated revenue of Mana in Q2 2018 was about $75 million.
  • From the graph, the estimated revenue of Mana in Q2 2019 was about $376.87 million.
  • Sales growth rate per year using CAGR Calculator =
Beginning Value: 75,000,000
Ending Value: 376,870,000
Number of Periods = 1 year
  • Therefore the sales growth of Mana products is 402.5%

Lady Burd:

  • Sales growth rate per year using CAGR calculator.
Beginning Value: 11,800,000
Ending Value: 20,700,000
Number of Periods = 1 year
  • Therefore the sales growth of Lady Burd is -43.0%

FMK Labs, Inc :

  • From the graph, the estimated revenue of FMK Labs in Q2 2018 was about $7 million.
  • From the graph, the estimated revenue of FMK Labs in Q2 2019 was about $5 million. (Source 10)
  • Sales growth rate per year using CAGR calculator.
Beginning Value: 7,000,000
Ending Value: 5,000,000
Number of Periods= 1 year
  • Therefore the sales growth of FMK Labs is -28.5%
Part
03
of six
Part
03

Made in Italy Insights

The US consumers view the "Made in Italy" label as synonymous to fine quality and style and the majority is inclined to pay a premium price for products associated with the label.

“Made in Italy” Beauty Market in the USA

  • Italian cosmetic sales reached $12.8 billion, with a 9% growth in 2017.
  • The Italian government launched a program called “Beauty Made in Italy” that will host 35 companies not yet distributed in the US.
  • 60% of all beauty products are made in Italy, however, most are through private-labeling or contract-manufacturing for non-Italian brands.
  • Italy is one of the largest exporters of beauty products to the US, totaling over $785 million in 2017.

“Made in Italy” value

  • According to a Brands Distribution article, if "Made in Italy" is a brand, it can be considered as the world's third-best-known brand after Visa and Coca-Cola.
  • The "Made in Italy" label has granted many products' prosperity in the market as it is synonymous with quality.
  • Italian brands have increased their brand value over the last 12 months by 14% or $96.9 billion.
  • When it comes to the luxury industry, "Made in Italy" brands rank third (after France and Switzerland) and ranks high for the Personal Care segment.

"Made in Italy" - overall consumers' perspective

  • Consumers usually land between the following extremes: “I feel gratified when I buy a Made in Italy.” and “It is a myth created by the Italians, whereas it is not much appreciated abroad.”
  • The “Made in Italy” brand suggests attributes in consumers’ minds that positively characterize Italy's image as a country. It facilitates discernment because of the effect of the product-country association.
  • "Made in Italy" is recognized as a synonym for "excellence and craftsmanship".
  • The "Made in Italy" label is also associated with sense of style and fine quality.
  • Brand studies emphasize that all over the world, the “Made in Italy” label is a positive brand image.

"Made in Italy" for Premium Price

  • A study conducted showed that a prevalent proportion of the sample (60%) appears prepared to pay more in order to purchase a “Made in Italy” product.
  • Younger individuals (born after 1978) seem more oriented to pay a premium price for a "Made in Italy" product.
  • Among the individuals who are more likely to pay a premium price for these products, 57% are females.

"Made in Italy" in the Digital Era

  • Google Trends showed that interest in the traditional sectors of "Made in Italy" is growing steadily, while according to Nation Brands 2016, its trading value increased by 21% in 2016.
  • Between 2010 and 2017, online searches with "Made in Italy" have grown by 153%.
  • Reactions to “Made in Italy” in social media platforms are mostly neutral (87%) and positive (12%).
  • Most of the mentions are on Tumbler, Instagram, and YouTube.
  • Relevant taglines associated with the label are handmade, luxury, and style.

Research Strategy:

We started our research by looking for direct reports, statistics, and analysis on consumer’s perceptions about the “Made in Italy” label when it comes to beauty products. We looked for this information in news and financial sites like Forbes, Business Wire, and Business Insider and fashion and beauty-related sites like Fashionista, In Style, and Fashion Business among others. Unfortunately, we were not able to find the consumers' perspective on this particular correlation.

Next, we researched the "Made in Italy" beauty market and the overall value of the label which provided some interesting insights about the industry. In order to provide more in-depth insight, we broadened our research to the overall perspective about the "Made in Italy" label and what does it mean to consumers, as to create a pattern for consumer’s views about the label that could be helpful. Here we found out that a portion of consumers is willing to pay premium prices for such products.

Finally, we analyzed the impact of “Made in Italy” in different social media platforms and the connections that it created in order to establish digital influence and marketing opportunities. We could find some information, but most of it was behind a paywall. One possible reason why we were not able to find direct information about the correlation between “Made in Italy” and beauty products could be that even though Italy produces most of the cosmetics sold in the world, the majority is made through private-labeling or contract-manufacturing.
Part
04
of six
Part
04

CBD in Beauty Products

After the approval of The Farm Bill in the US, CBD's use in beauty products is a growing trend with high acceptance due to its recognized benefits for the skin and hair. Brands are leveraging its soothing qualities and its anti-inflammation and relaxation effects. Some top beauty brands that use CBD in their products are Vertly, Cannuka and MILK Beauty.

Key PRODUCTS

  • Emerald by the brand Herbivor: this is a deep moisturizing glow oil infused with Cannabis Sativa hemp seed ranked 5-stars with more than 10,000 points in Sephora clientele popularity. The product sales for $58 and they donate $1 per sales to entrepreneur women.
  • Cannabis Sativa Seed Oil Herbal Concentrate by the brand Kiehl: this is a face oil infused with sativa seed oil and oregano that received a 5-star rating with 1,495 points in Sephora clientele popularity. The product helps reduce redness and acne, acts as antioxidant and antiseptic for a price of $49.
  • Lord Jones by the brand High CBD Formula: this is a body lotion infused with cultivated hemp received 4.5-stars ranking with more than 5,482 points in Sephora clientele popularity. The formula is vegan and gluten free and helps reduce muscle pain.
  • Lavender Hemp Sleeping Mask by KANA: this mask helps reduce scar tissue, and is rich in vitamins A and E and antioxidants. It retails for $55.
  • CBD Blemish Control by the brand Myaderm: this product is leading in acne treatment products with CBD and tested for purity and quality by pharmacist at the Botanacor labs. Allure affirms its efficacy in treating acne, eczema, skin inflammation, breakouts. It also hydrates skin. It retails for $25 and is vegan and gluten-free certified.

KEY Brands

    MILK Beauty
    • MILK's KUSH CBD line is rated one of its most popular. MILK's mascara infused with sativa cannabis has a 5-star rating and, with 50,000 points, has one of the highest popularity points total's in Sephora's ranking system.
    • The mascara helps condition and hydrate the lashes hair and retails for $24.
    • MILK's lip Balm infused with cannabis seed oil CBD received a rating of 4-stars and has more than 10,000 points in Sephora's clientele popularity system.
    Cannuka
    • Cannuka offers a wide range of products with CBD, including Body Cream which retails for $28 and helps as an anti-inflammatory.
    • Cannuka's formula combines honey and CBD for all their products which also include a Calming Eye Balm for $38, a Healing Skin Balm for $58, a Hydrating Lip Balm for $9 and a Cleansing Body Bar for $18.
    • Cannuka's Calming Eye Balm has been tested with 99.7 percent purity and helps eliminate eye circles and eye inflammation.

    Vertly
    • Vertly's relief lotion retails for $45 and helps relief the muscle pain and skin inflammation.
    • Vertly's Bath Salts are infused by CBD alleviate pain and relax the muscles for $29.
    • Vertly's lip balm in rose was categorized one of the best and most luxurious CBD beauty products and retails for $22.
    • Vertly's products are tested with high production standards and quality.

Regulations

  • In December 2018, the US Farm Bill law was approved with authorizes the use of hemp as an agricultural product.
  • The law seeks to modify the strict regulations on the use of hemp and legalizes its utilization in the industry.
  • American farmers will now be able to plant and use hemp in the US for the first time in 50 years.
  • The new law allows the cultivation on hemp and transfer of hemp through different states for industrial purposes and studies.
  • The law removes any restriction on the use, possession and selling of hemp made products.
  • People cannot freely cultivate hemp. Any crop cultivation will be highly regulated and controlled for personal or industrial use.
  • The section 10113 of the Farm Bill establishes that the hemp cultivated and used in products cannot contain more than 0.3 percent THC, if this percentage is exceeded the plant will no longer be considered hemp but marijuana and follow laws for the use and plantation of said plant.
  • The same law indicates that the departments of agriculture has to create a plan with the governor and the chief law enforcement office of each state to must consult with the governor and chief law enforcement officer of each state and submit it to the Secretary of USDA in which they stipulate who the state will regulate the production of hemp.
  • Each state will be responsible for their internal hemp regulations.
  • The USDA will provide licenses and regulations for hemp cultivators in every state for which they have to apply in order to produce it.
  • The Department of Agriculture, the State and the USDA will share their regulations and responsibilities and have them in their program.
  • Using and cultivating hemp without license or with a THC percentage that exceeds 0.3 will be considered law violations and punished by the law as felonies.
  • Any product derived from CBD will be considered legal as long as the hemp used to obtain the CBD complies with the regulations mentioned.

Consumer perception and adoption

  • People are quickly adopting the use of CBD with a wide acceptance in beauty products, because of the multiple positive benefits this oil posses.
  • Even before being legally approved the US industry of CBD infused products already had a market size of $1 billion.
  • The beauty industry is expected to continue using CBD in their products and not slowing down on the trend and has become one of the hot ingredients to try for cosmetics and skin care.
  • Since their legalization in all 50 states, CBD beauty products are showing up across the country. There is an ongoing trend of celebrities who believe in CBD's benefits for skin care and pain reduction, including Alessandra Ambrossio and Jeniffer Aniston. These celebrities are inspiring their followers to join the trend.

  • Proven effects

    • The similarity in CBD's composition to the natural oils produced by the body make it an effective moisturizer.
    • CBD soothes the skin, rejuvenates dehydrated, tired and dry skin. It helps with skin sensitivities, prevents irritation, promotes sleep and calm, reduces anxiety, alleviates inflamed skin, and contains omega fatty acids, vitamin E, and linolenic acids.

    Research Strategy

    We focused our research on well-regarded business publications and beauty industry leaders such as Allure Magazine, Huffington Post, Business Insider, Amazon, Sephora, Ulta, The Washingtonian, NY Magazine, and others. The "Key Products" and "Key Brands" lists were populated by assessing both sales volume and customer review ratings.
    Part
    05
    of six
    Part
    05

    Stem Cell Use in Beauty Products

    The insights surrounding the current and future use of stem cells in beauty products are:
    • Products contain niacinamide which prevents stem cell loss.
    • Potentials of apple stem cell.
    • Human stem cell as a new ingredient trend.
    • Plant stem cell-based technologies as future of anti-aging skincare.
    • Cord lining stem cells as an ingredient in stem cell technologies.

    INSIGHTS SURROUNDING THE CURRENT AND FUTURE USE OF STEM CELLS IN BEAUTY PRODUCTS

    PRODUCTS CONTAIN NIACINAMIDE WHICH PREVENTS STEM CELL LOSS

    POTENTIALS OF APPLE STEM CELL

    HUMAN STEM CELL AS A NEW INGREDIENT TREND

    PLANT STEM CELL-BASED TECHNOLOGIES AS FUTURE OF ANTI-AGING SKINCARE

    CORD LINING STEM CELLS AS AN INGREDIENT IN STEM CELL TECHNOLOGIES

    • Proven Results: Singapore-based biomedical company called CellResearch Corp has identified the lining of the umbilical cord as a rich source of stem cells.
    • The biomedical company was able to use it to develop medical applications and create a cosmeceutical line.
    • Doctors recommend the product Calecim to boost healing and optimize aesthetic results; as well as at home as an anti-aging treatment.
    • In a study by Stem Cell Research & Therapy, the human umbilical cord yields both mesenchymal and epithelial stem cells.
    • These cells have "high proliferative capacity" and their high harvest yield and multiplication make them better than the contemporary adult stem cells.
    • Trends: The discovery of Calecim as a revolutionary skincare product which uses deer umbilical cord to extract a key active ingredient in restoring youth.
    • It received the SPA Award for Best Cosmeceutical Facial Product in 2018.
    • The trend in applying stem cell treatments would embrace umbilical cord stem cells and their potentially unique properties, and there are other skin creams on the market that purportedly use cord cells as potent anti-aging topical treatments.
    • Best Selling Products/Lines: Best-selling products includes Calecim Professional.

    Research Strategy:

    We looked into available information from research, studies, news, company products, and e-commerce beauty products with reviews about stem cell use in beauty products. The trends and insights we used in the research brief corroborated with multiple sources. Additionally, these insights also have relevant scientific background and studies conducted to support the trends on the beneficial effects of stem cell technologies in beauty products.
    The best-selling products included were based on the recommendation of medical professionals, reviews of actual costumers and star ratings given. There are also sources which listed “top” products on some trends.
    The research was focus on the stem cell technologies in Beauty products and I did not include any medical procedure in the trends and insights.

    Part
    06
    of six
    Part
    06

    Luxury Materials in Beauty Products

    Luxury materials, especially gemstones are being widely used in the US in beauty products such as makeup, cosmetics, skincare, nail polish, soaps, and therapeutic products. At times, the properties of these luxury materials are proven and the therapeutic use is quite widespread, but it is expected that, as scientific studies continue to analyze the medicinal properties of these luxury materials, the future of this market is even more promising.

    Gemstones in cosmetics

    • Gemology Cosmetics, a pioneer in the use of gemstones in cosmetics and sold well in the US, uses more than 20 luxurious minerals in their products.
    • Blue amber has the ability to stimulate the immune system.
    • Peridot contains a lot of magnesium to stimulate the cell energy.
    • Iron in sapphire stimulates the collagen synthesis to strengthen the skin.
    • Ruby, which contains chromium, regulates lipolysis which is very good for combination skin.
    • Jade is rich in silicon which can be used in dry skin products.
    • Gold is used in American skin care products with a focus on its anti-aging, anti-inflammatory, skin illuminating and lightening, and collagen producing properties.
    • There is not enough scientific evidence to support this information. However, experts say that gold as an ingredient to be used in cosmetics, has a promising future with its extremely healing properties.
    • Many Americans seek beauty products with gemstones for their holistic effect, aiming at emotional and even spiritual balance. This seems to be the objective of companies Gemstone Organic (L.A) and Wild Medicine (N.Y).
    • These and other companies aim to increase the healing properties of gemstones and believe that their raw use incorporated into cosmetics will enhance the consumer's ability to absorb its effects.
    • Gemstones such as sapphire and quartz has soothing, re-energizing, and curing abilities. This trend of using gemstones in cosmetics is strong in the present and promises to grow even more along with the concept of natural healing.
    • Emerald and ruby are ingredients incorporated into luxury cosmetics in the US which represents promising future. Emerald is used as an ingredient in anti-aging products because it stimulates the production of collagen, prevents loss of moisture, and stimulates the formation of new cells.
    • Ruby crystals are good blood cleansers. They warm the skin, stimulate blood circulation, and eliminate toxins. They are an ingredient in beauty products that treat skin infections and clear acne.
    • Precious gemstones such as quartz and tourmaline are also used in face masks. Widely sold in the US, they promise to add firmness and shine to the skin through re-denaturing. With sales increasing, it seems to be a trend that will still grow.
    • The sales of luxury skincare products have skyrocketed in the US in recent years and experts believe that this trend will continue. Other elements being used in luxury cosmetics include amethyst (against redness in the skin), citrus (cell renewal), dimant (pearl powder) used against chemical stains and light and sapphire (tonification of the skin).
    • Gemstone powders are being used in makeup products such as post illuminators, shadows, and lip glosses and nail polishes. Amber, amethyst, pink quartz, aventurine and aquamarine, smithsonite, malachite, and pearl are common gemstones used in these products.
    • Americans are also sticking to the use of illuminating and therapeutic spray. The aesthetic properties are real and delight consumers, but the market is expected to grow as scientific research advances in studying the healing properties of gemstones.
    Sources
    Sources

    From Part 05
    Quotes
    • "Apple stem cell extract is an added bonus: the ingredient can actually help your skin cells behave like younger cells."
    Quotes
    • "Apple extract significantly induced production of vascular endothelial growth factor and interleukin-6 in adipose tissue-derived mesenchymal stem cells and human cord blood-derived mesenchymal stem cells."
    Quotes
    • "As an example, Schmid et al. produced stem cells of an old rare apple plant grown in Switzerland with very good storage properties, by applying plant cell culture technique. The extract of the cultured apple stem cells was obtained after plant cells lysis using high pressure homogenization and had shown multiple beneficial applications."
    • "Clinical trial of Malus domestica (Phytocell Tech™), a liposome encapsulated extract of cultured apple stem cells as a cosmetic ingredient has shown significant potential to reduce wrinkles in the crow's feet area of the face."
    Quotes
    • "Right now, we’re intrigued by a new ingredient trend that’s very unexpected (yes, even compared to salmon sperm): human stem cells."
    Quotes
    • "Dr. Hope, however, believes human stem cells will likely have an impact on skin rejuvenation and hair restoration. The science is just beginning to understand human stem cell biology and finding ways to exploit this knowledge to reverse signs of aging."
    Quotes
    • "This is till Singapore-based biomedical company CellResearch Corp identified the lining of the umbilical cord as a rich source of stem cells. This source is so plentiful that the biomedical company is able to use these stem cells to develop medical applications, such as wound healing, as well as a cosmeceutical line called Calecim Professional."
    Quotes
    • "Harpers Bazaar is the modern and sophisticated woman’s guide to the best of fashion, beauty, design, travel and the arts."