The Emerson Group goes prime time with ‘The Profit’

BY Michael Johnsen

The Emerson Group went prime time on the Dec. 12 episode of CNBC’s “The Profit.” The show’s millionaire business fixer Marcus Lemonis turned to Matt Poli, executive vice president of marketing at Emerson, and his team to review the potential behind a new skin care brand in the show’s latest episode. 

The episode saw Lemonis travel to Garrettsville, Ohio to help save the business of Monica Potter, star of the television series "Parenthood." Potter started a home goods store near her family in rural Ohio and, according to the clip above, is looking to expand into the consumer packaged goods beauty business.

This isn't the first time Poli and Lemonis have shared a stage together.

Earlier this year, Lemonis joined The Emerson Group for its 10th Annual Retail Industry Day in Philadelphia as the keynote speaker." [The Profit] is really not about business. It uses business as a backdrop, as a vehicle, to get the message across. The show is really about [people]," Lemonis told a room packed with Industry Day attendees. That focus on people is the true differentiator for small business, he added, and it's how successful entrepreneurs break through the clutter.

"I've always wanted my legacy to be; How do we get people to think differently about business and attach a personal perspective to it? How does that, over time, not level the playing field with 'big business,' but how does the small business owner get an edge?" he asked.

It's that passion for the small business owner that Lemonis will deployed in his attempt to help Potter take her business back to the black. 


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Which area of the industry do you think Amazon's entry would shake up the most?

Augmented reality gives the retail landscape a makeover


Beauty apps could be the tool paving the way for drug and mass retailers to compete with high levels of service at prestige competitors. Apps from augmented reality technology providers give shoppers a digital makeup artist in the palm of their hands and reduce the need for in-store testers that often are not available in mass-market stores.

Augmented reality apps, allowing users to virtually try on a variety of beauty products without the need to wash off the makeup in between, are growing in consumer acceptance. In fact, Kelly Alexandre, senior analyst in the consumer products practice at Parsippany, N.J.-based Kline, said the United States has the second-greatest acceptance of beauty apps in the world, pegged at 35%, behind China at 64%. She expects 2018 to be an even bigger year as the technology improves.

“AR has been widely adopted by major CPG companies in the cosmetics world, because of how visual the cosmetics category is,” she said.

For many consumers, virtual try-on is a key part of the mobile experience.

“Shoppers in this day and age are embracing mobile. And, they want to go to retailers and experiment. That is the most obvious reason why AR can change the retail landscape and turn into revenues and profits,” said Adam Gam, vice president of marketing at San Jose, Calif.-based Perfect, the company behind the YouCam Makeup app. In September, Perfect’s suite of AR apps hit a major milestone — surpassing 500 million downloads globally.

Already during the nascent holiday shopping period, apps from companies like Perfect and ModiFace are converting sales, according to Modiface founder and CEO Parham Aarabi. Over Black Friday and Cyber Monday, beauty brands with AR features powered by ModiFace reported a 200% increase in conversions.

“Augmented reality for trying on beauty products has evolved from a nice utility to a transformative technology that defines the brand-consumer relationship, and becomes a significant driver of sales and engagement,” Aarabi said.

While many mass-market chains are adding more beauty consultants, the channel is still mostly self-service. And, with shoppers researching products online before coming to stores, many don’t seek advice. Signing into an app either before or during an in-store visit to help with shade selection is seen as a major boost for the business.

Though some apps offer the option to buy products directly, experts maintain apps also drive shoppers to stores — and on a recent store tour of a redesigned Walmart location in New Jersey, the need for this technology in mass was underscored by vice president of merchandising beauty Jodi Pinson.

“We don’t have someone in the aisle teaching and training how to get trends like contour and highlighting,” she said, noting that more technology like AR-powered apps will facilitate this engagement.

With apps, users can see how a new lipstick color might look, experiment with hair color and even see how artificial lashes can enhance their eyes. Everything can be adjusted for in photos or videos, including the lighting in the room where an image is being captured.

Intelligent lighting technology can now adjust white balance for true renditions, according to Aarabi. It also is faster, he said, noting that speed is a must for instant gratification-seeking millennials.

“We have narrowed down the time to analyze a face, track the facial features and simulate makeup to under 0.03 seconds, which gives the smoothest video performance,” Aarabi said.

Products virtually applied move with the user. An important element is that the images can be shared with friends for advice, which Aarabi said is a feature that boosts sales — and is also is a key aspect to capturing younger users.

“We’re finding today that at every point that a beauty brand interacts [with a consumer], it can increase sales, increase time spent, engagement — any metric that is measured for success, AR can make a positive impact,” he said. “Seeing a product on a viewer’s face can boost conversion an average of 84%.”

Now AR is making the jump from the palm to the store — and that’s where mass chains can really benefit, experts said. AR offerings are being brought to stores via magic mirrors, where shoppers can virtually test items. Macy’s, Sephora and MAC made the first moves, but industry experts noted that Walmart is adding technology in its stores with more chains expected to follow. Walmart already has experimented with iPads on makeup tips in select stores. Based on success it is going to the next level with AR, especially in hair color.

Unlike erstwhile videos that mass retailers offered — and were often bypassed by shoppers who didn’t want to take the time to watch, or turned off by store officials who were annoyed by the video loops — in-store magic mirrors tapping AR can boost beauty sales by 32%, Aarabi said.

“As consumers become more familiar with AR applications, the less intimidated they are to interact with it,” he said. “In-store installations are a great way for the customer to quickly shop and try-on the product assortment, and engage with beauty cast members. Virtual mirrors are a great way to drive traffic to stores and increase time spent.”

Beyond cosmetics and hair care, apps are even giving skin care an AR makeover, as both ModiFace and Perfect released virtual skin care analysis tools this year.

ModiFace’s skincare app uses a detailed analysis of user images to recommend products. It guides users through a virtual skin consultation, after which it suggests the most appropriate skin care products. L’Oréal’s Vichy brand deployed this technology globally on its web and mobile sites following a testing period.

Perfect also added an AR skin diagnostic tool to YouCam Makeup. The real-time skin analysis feature scores four signs of skin health, including wrinkles, spots, skin texture and dark circles. Users snap a selfie to track results in the app’s Skin Diary, allowing them to check the efficacy of their skin care regimen over time. Each users’ detailed skin health report includes their skin age and skin scores relative to other users in their demographic.

Retailers can benefit from the boom in AR apps in several ways, according to ModiFace’s Aarabi. With a wide array of mass brands featured on apps, Aarabi recommended staff in drug and discount stores educate shoppers about the apps, most of which are free.

For retailers, he added, encouraging the use of apps helps improve shade selection and assuage safety concerns — nagging problems in the mass market where testers are nil and products are prone to being ripped open and rendered unsalable. And where there are testers, the potential for contamination can deter use and lead to shoppers getting home disappointed with a shade.

“The first thing a shopper wants to do is try on a product. But because of hygiene concerns or if there isn’t a tester, that’s not possible,” Perfect’s Gam said. “With technology, consumers can safely see products virtually on their face.”

Taking that a step beyond, consumers test drive shades they might never have considered before, Gam added, opening the opportunity for sales that would not have existed.

As apps catch on, experts say the next logical step will be tapping artificial intelligence, allowing retailers to learn shopper habits and recommend new products that match a consumer profile, according to Maya Mikhailov, co-founder and chief marketing officer at New York City-based GPShopper, a mobile commerce platform and mobile app developer. Also through apps, brands and retailers can even use beacon technology to alert shoppers, who are driving past a store, that their favorite beauty brand is on sale.

Indeed it is a brave new world.


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Which area of the industry do you think Amazon's entry would shake up the most?

Creme of Nature adds coconut milk to its natural ingredients line

BY Gisselle Gaitan

Creme of Nature is releasing seven new styling products within its Certified Natural Coconut Milk Collection. The line which is infused with coconut oil is designed to moisturize and protect hair, provide nourishment from roots to ends and aid in detangling dry, lifeless curls, the company said.

“Catering to your curls with the finest natural ingredients just got even easier with the styling products from our Certified Natural Coconut Milk Collection,” Teneya Gholston, Creme of Nature’s director of marketing, said. “Kinky, coily, wavy or curly, we’ve designed our newest styling products for every natural girl — from 3a to 4c — to look and feel beautiful with high-quality products at affordable prices.”

The line will include:

  • Creme of Nature Coconut Milk Curl Repair Leave-In Cream — a hydrating repair cream that detangles and moisturizes dry hair, prevents damage and restores shine. The 11.5-oz. size can be purchased for the suggested retail price of $5.99;
  • Creme of Nature Coconut Milk Hydrating Curling Cream — a curl-defining cream that is ideal for twist-outs and wash-n-go’s. The product provides elongation and curl definition, and the 11.5-oz size can be purchased for the suggested retail price of $5.99;
  • Creme of Nature Coconut Milk Moisture Curl Milk — a lightweight daily moisturizer that works to improve manageability, prevent breakage and define curls while providing hydration. The 8.3-oz. size can be purchased for the suggested retail price of $5.99;
  • Creme of Nature Coconut Milk Curl Quench Foaming Mousse — a frizz-fighting and curl-defining mousse that provides medium hold, leaving curls soft, defined and full of body. This product is ideal for a flexi-rod or roller set and comes in a 7-oz. size that can be purchased for the suggested retail price of $5.49;
  • Creme of Nature Coconut Milk Essential 7 Treatment Oil — includes seven oils Coconut, Olive, Jojoba, Sweet Almond, Argan, Shea and Sunflower to repair and smooth curls while locking in moisturize. The 4-oz. size can be purchased for the suggested retail price of $5.99;
  • Creme of Nature Coconut Milk Shine & Hold Control Glue — an alcohol-free maximum-hold gel that sculpts hair and adds shine. The 5.1-oz. size can be purchased for the suggested retail price of $4.99; and
  • Creme of Nature Coconut Milk 24 Hour Edge Tamer — smoothes, holds and controls edges for 24 hours. The 2.25-oz. size can be purchased for the suggested retail price of $4.49.

All products can be found in beauty supply stores nationwide. The Creme of Nature Coconut Milk Curl Repair Leave-In Cream, Creme of Nature Coconut Milk Essential 7 Treatment Oil and Creme of Nature Coconut Milk Moisture Curl Milk also will be available at Walgreens locations.


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Which area of the industry do you think Amazon's entry would shake up the most?