Great post Jayne, I wrote a post last week about why i choose to support British Beauty brands but I love this post, it takes it one step further and outlining we need to support small, independent brands too. I completely agree that I wouldn't like to start my own brand in this current climate but I have huge respect for people that do. One of my favourites I've found recently is Natural Wisdom. All organic products, British made and they sell only through their own website (at the moment)...but while the average consumer is still buying the big name brands from the high street chains, It's going to be a difficult ride for any independent company starting up now.
I love this post thanks! And I don't think this situation is only happening in UK but all over the world. I read Paula's site and she always talk about how different brands are all owned by those few big companies and the formula is just the same. Big brands are earning massive margin and a lot of times consumers are not paying for the product quality. We are just paying for an image from advertising.
I had no idea about this. It's awful! I thought that by buying smaller brands through a large chain I would be supporting them, not harming then. I guess the only thing I can do is buy directly from the brand when possible?
Is there any way of finding out which large retailers are treating brands fairly? I was feeling hopeful about the new M&S beauty depts (as a consumer I *think* they treat suppliers well, but who knows??) Also, I was pleased to see Balance Me in Waitrose as I assumed it was a sign they are doing well. (Again, I would hope Waitrose are behaving in an ethical way...)
I have noticed what looks (to me) like copycat branding before (This Works/Good Works and Amie/a Tesco range that I can't remember the name of. Amie vanished from their shelves and the copycat remained.)
I have been considering giving up on shopping at Boots - I already mostly shop from online beauty shops, but what I heard on the BBC recently made me look at Boots in a very different way. It now pays NO tax in Britain whatsoever - at least, that's what was said on the programme I watched - I think it is unethical and I don' t want to support such an organisation.
I do not understand why the Office of Fair Trading has not investigated the high street retailers for price fixing of cosmetics. There is very little or more often no variation in price between outlets. There seems to be a push to squeeze independants out of all markets at the moment. Government interferes to much and too often at present.
Similarly why are there so few independant chemists. I do not understand why Boots has been allowed to buy so many chemists.
Smaller indépendant brands could benefit from creating/joining a co-operative scheme they all sign up to to ensure that they follow a basic we won't crap on each other or sell out code, customers know who they are buying from and that the products are unique, not owned or just repackaged by other brands and they can carry an easily recognised symbol on the packaging. I would rather buy from those personally.
I must admit that I wasn't aware of the whole "badging" thing within the beauty industry, however I've been aware for a long time, that a great many cheap supermarket food brands are exactly the same product that you'd buy from a more expensive brand, but with different packaging and a cheaper price tag, even being made from the same factory. My Nana (who has been retired for over twenty years) worked for a well-known brand of food and she said that they packaged products for other brands thirty or so years ago, even though it was their product being sold. It's a huge shame that this stuff is still going on, because it wipes out the independent brands that just want to earn a living, whilst the larger companies stamp all over them, because they have the power and money to do so!
wow, that was an eye opener - I am also owner of a small beauty brand and was hoping that one day I will be selling on the high street - now I am thinking that maybe I don't want to after all, unless I own my own shop... Lizzclare, I think that is a brilliant idea and one I have been toying with for a while. Instead of having a shop just selling my won stuff, it would be nice to sell lots of small brands - there is such a shop in my home town in Germany and it is flourishing.
I agree with the above. A beauty version of Etsy would be amazing. Reviews could be left and I think it would be a fantastic way to build a community of beauty lovers. If the retailers Boots then I'm not one iota suprised. Selfishness is their middle name, moreso towards staff on the shop floors.
One of the big problems for brands with switching high street sellers is that it can diminish their brand. This might sound silly, but think about it: you expect to get a premium product if you buy it in House of Fraser/ John Lewis/ Debenhams beauty hall; If that brand suddenly drops out of the department store and appears in Boots, it's become just a little less premium. Similarly if a product switches from Boots to Superdrug - it's slightly downgraded in perception. Still the same product, but consumers see it differently.
For example - could you imagine buying MAC in Superdrug? This is not to imply that Superdrug are anything less than reputable, or that they sell less-good products, simply that they are designed as a cheerful, good-value everyday shop, not a premium destination. And MAC have an established image as a premium brand. It doesn't fit. If you bought MAC in Superdrug you'd think there was something wrong with it, that it was 'grey market' or old stock.
And THIS is a stick that the big chains can use to beat indie brands with. The indie brand works hard to build up capital in terms of credibility, good reviews on blogs like this and a following of people who love their products, so they get into the high street and then the shop they're in can threaten them with devaluing all that hard work. The only alternative is to up-switch and trade from e.g. Boots to e.g. House of Fraser. It's tricky.
Gosh, thank you so much for enlightening me to this. One British brand I have been trying to give my wholehearted support to (because I 100% agree with their cruelty-free, vegan, natural ingredients and eco-friendly ethics)is 'Beauty Without Cruelty' - without a doubt the best mascara I have ever tried, and I have very sensitive eyes, among the fab-ness of all it's products. Anyway, I had no idea this was going on. Do you think that by buying from the brand's online store this may help a little to alleviate the problem? I am keen to support my favourite brands, and keen to boycott said shops - I know you probably can't tell us which it is but I'd love to know. In any case, thank you xxx
Do Space NK count in this too? I always thought they were a pioneer for beauty brands. Honestly though- I wouldn't buy beauty out of Tesco or even boots these days. I'm thoroughly bored of the sam old Clinique, Liz Arden and Estee Lauder counters.
I suspect I work, at least for now, for one of the retailers your allude to. I also suspect this practice is widespread on both sides of the Atlantic. I seldom shop in-store any more, preferring to buy direct from the brand I want, on-line, where possible. In other words, cut out the middleman as much as you can.
Thanks again for highlighting something that many don't know about. It really sets you apart as you're not afraid to address issues that major organisations would rather were left untouched.
This was a very enlightening post. Thank you for being willing to write it! 'Badging' - we call it 'generic' or a 'house brand' on this side of the pond - is rampant. It was interesting to read in the comments that the same practice has been occurring in the food industry for so long. There truly is nothing new under the sun. I admit to having purchased some house brands - budget being the primary reason. What causes my chin to hit the floor is the practice of the retailer to renege on the original terms of payment, product placement, etc. I was surprised to learn a few years ago how many brands are owned by Lauder & other conglomerates. I think I found that info on Paula Begoun's site or else just googled it. I've always known that Wal-Mart treats their suppliers this poorly often buying goods below cost but didn't realize it was common practice across the board for so many retailers. Wordbird hit the nail squarely on the head with how consumers perceive a brand - luxury, high end brands are found in a beauty hall or department store as you work down to the level of a Boots/Ulta - quality is perceived to be lower then down to SuperDrug/Walgreens/CVS - cheapest of the lot. You couldn't pay me enough to start up an independent beauty brand now. My hat is off to those that do & have found a niche market. I have several favorites for scents & cosmetics that I purchase from online. This article has strengthened my resolve to seek out more of those. Thanks for such great food for thought this morning!
Alas, it's an unescapable fact that the major multiples exploit beauty brands, especially the smaller ones. While the big players have the marketing budgets and brand value to haggle on the level, the smaller brands continue to get shafted. It's not just beauty, but it appears to be particularly bad in this market.
With few BIG retailers in each category, the monopoly power at play is huge. Add to that how hard it is to protect your IP in the market and you have an uphill battle.
The message seems to be clear in every area that the multiples deal in - build up your brand as much as possible and wait until they come to you begging to sell your brand, then get them into an ironclad contract! Otherwise, you're getting screwed :(
THis is a really interesting topic and I'd be very interested in knowing what brands actually are independent. I keep finding out brands I like are owned by other companies - I realise they're are not small local brands but I was shocked that both Vichy and La Roche Posay are distributed by L'Oreal.
I'm shocked to what extent this is happening! TBH I think it's all industries this is happening in, I work in video games and some publishers can't even get games on the shelves in the high street unless they take huge cuts on price and deals. Why do retailers have to be so darn greedy?? I know its a business, but working the horse to death doesn't help in the long run.
Hi Jayne, another area where small manufacturers are getting the lifeline squeezed out of us is getting certification, after 2 years of pursuing fair trade certification ticking all the boxes, I have been told that I can only get it if I get my products made by 1 of the 3 certified companies. This would mean that my range is not made by me by hand althouhgh I would i tick one of the boxes of what is unique to my brand. It's a real moral dilema.
Aaaaah - I see - lightbublb moment. went on! Things keep on disappearing from boots and upon asking staff I am told that they are given trial periods and that they are cut when they don't sell enough! Seems that that is not the whole story. It seemed odd to me that things like Steamcream disappear from Boots - they obviously weren't prepared to play ball. Am V sad for the indie brands though - big boo to you greedy pig retaliers.
I really love the insightful posts on your blog! I work for a cosmetic brand in the US and I think this is a good recap of some of the issues cosmetic brands face to make it.
UK specifically, I was DEVESTATED with Pout Cosmetics went out of business in 2009, I wish that I could have found a way to save them but when they partnered with VS in the US, I think it hurt them more than helped them grow, I know nothing of the specifics but I helped launch the brand (in store) and just loved it. I still hoard old and probably not usuable pieces.
Anyway, loved this. support brands you love and products you love, it's the only way to succeed. :)
25 comments:
Great post Jayne, I wrote a post last week about why i choose to support British Beauty brands but I love this post, it takes it one step further and outlining we need to support small, independent brands too.
I completely agree that I wouldn't like to start my own brand in this current climate but I have huge respect for people that do. One of my favourites I've found recently is Natural Wisdom. All organic products, British made and they sell only through their own website (at the moment)...but while the average consumer is still buying the big name brands from the high street chains, It's going to be a difficult ride for any independent company starting up now.
I love this post thanks! And I don't think this situation is only happening in UK but all over the world. I read Paula's site and she always talk about how different brands are all owned by those few big companies and the formula is just the same. Big brands are earning massive margin and a lot of times consumers are not paying for the product quality. We are just paying for an image from advertising.
I had no idea about this. It's awful! I thought that by buying smaller brands through a large chain I would be supporting them, not harming then. I guess the only thing I can do is buy directly from the brand when possible?
Is there any way of finding out which large retailers are treating brands fairly? I was feeling hopeful about the new M&S beauty depts (as a consumer I *think* they treat suppliers well, but who knows??) Also, I was pleased to see Balance Me in Waitrose as I assumed it was a sign they are doing well. (Again, I would hope Waitrose are behaving in an ethical way...)
I have noticed what looks (to me) like copycat branding before (This Works/Good Works and Amie/a Tesco range that I can't remember the name of. Amie vanished from their shelves and the copycat remained.)
Thank you for making me aware of this.
I have been considering giving up on shopping at Boots - I already mostly shop from online beauty shops, but what I heard on the BBC recently made me look at Boots in a very different way. It now pays NO tax in Britain whatsoever - at least, that's what was said on the programme I watched - I think it is unethical and I don' t want to support such an organisation.
I do not understand why the Office of Fair Trading has not investigated the high street retailers for price fixing of cosmetics. There is very little or more often no variation in price between outlets. There seems to be a push to squeeze independants out of all markets at the moment. Government interferes to much and too often at present.
Similarly why are there so few independant chemists. I do not understand why Boots has been allowed to buy so many chemists.
Smaller indépendant brands could benefit from creating/joining a co-operative scheme they all sign up to to ensure that they follow a basic we won't crap on each other or sell out code, customers know who they are buying from and that the products are unique, not owned or just repackaged by other brands and they can carry an easily recognised symbol on the packaging. I would rather buy from those personally.
I must admit that I wasn't aware of the whole "badging" thing within the beauty industry, however I've been aware for a long time, that a great many cheap supermarket food brands are exactly the same product that you'd buy from a more expensive brand, but with different packaging and a cheaper price tag, even being made from the same factory. My Nana (who has been retired for over twenty years) worked for a well-known brand of food and she said that they packaged products for other brands thirty or so years ago, even though it was their product being sold. It's a huge shame that this stuff is still going on, because it wipes out the independent brands that just want to earn a living, whilst the larger companies stamp all over them, because they have the power and money to do so!
wow, that was an eye opener - I am also owner of a small beauty brand and was hoping that one day I will be selling on the high street - now I am thinking that maybe I don't want to after all, unless I own my own shop...
Lizzclare, I think that is a brilliant idea and one I have been toying with for a while. Instead of having a shop just selling my won stuff, it would be nice to sell lots of small brands - there is such a shop in my home town in Germany and it is flourishing.
I had no idea this was happening. TERRIBLE! Are you able to name the stores we should avoid? I assume Boots is one? But who else?
I agree with the above. A beauty version of Etsy would be amazing. Reviews could be left and I think it would be a fantastic way to build a community of beauty lovers. If the retailers Boots then I'm not one iota suprised. Selfishness is their middle name, moreso towards staff on the shop floors.
One of the big problems for brands with switching high street sellers is that it can diminish their brand. This might sound silly, but think about it: you expect to get a premium product if you buy it in House of Fraser/ John Lewis/ Debenhams beauty hall; If that brand suddenly drops out of the department store and appears in Boots, it's become just a little less premium. Similarly if a product switches from Boots to Superdrug - it's slightly downgraded in perception. Still the same product, but consumers see it differently.
For example - could you imagine buying MAC in Superdrug? This is not to imply that Superdrug are anything less than reputable, or that they sell less-good products, simply that they are designed as a cheerful, good-value everyday shop, not a premium destination. And MAC have an established image as a premium brand. It doesn't fit. If you bought MAC in Superdrug you'd think there was something wrong with it, that it was 'grey market' or old stock.
And THIS is a stick that the big chains can use to beat indie brands with. The indie brand works hard to build up capital in terms of credibility, good reviews on blogs like this and a following of people who love their products, so they get into the high street and then the shop they're in can threaten them with devaluing all that hard work. The only alternative is to up-switch and trade from e.g. Boots to e.g. House of Fraser. It's tricky.
Gosh, thank you so much for enlightening me to this. One British brand I have been trying to give my wholehearted support to (because I 100% agree with their cruelty-free, vegan, natural ingredients and eco-friendly ethics)is 'Beauty Without Cruelty' - without a doubt the best mascara I have ever tried, and I have very sensitive eyes, among the fab-ness of all it's products. Anyway, I had no idea this was going on. Do you think that by buying from the brand's online store this may help a little to alleviate the problem? I am keen to support my favourite brands, and keen to boycott said shops - I know you probably can't tell us which it is but I'd love to know. In any case, thank you xxx
Do Space NK count in this too? I always thought they were a pioneer for beauty brands. Honestly though- I wouldn't buy beauty out of Tesco or even boots these days. I'm thoroughly bored of the sam old Clinique, Liz Arden and Estee Lauder counters.
I suspect I work, at least for now, for one of the retailers your allude to. I also suspect this practice is widespread on both sides of the Atlantic. I seldom shop in-store any more, preferring to buy direct from the brand I want, on-line, where possible. In other words, cut out the middleman as much as you can.
Excellent post!
Ali
I don't think this is exclusive to the beauty industry at all...I think it's the way large retailers treat their suppliers full stop :-(
Thanks again for highlighting something that many don't know about. It really sets you apart as you're not afraid to address issues that major organisations would rather were left untouched.
This was a very enlightening post. Thank you for being willing to write it! 'Badging' - we call it 'generic' or a 'house brand' on this side of the pond - is rampant. It was interesting to read in the comments that the same practice has been occurring in the food industry for so long. There truly is nothing new under the sun.
I admit to having purchased some house brands - budget being the primary reason. What causes my chin to hit the floor is the practice of the retailer to renege on the original terms of payment, product placement, etc. I was surprised to learn a few years ago how many brands are owned by Lauder & other conglomerates. I think I found that info on Paula Begoun's site or else just googled it.
I've always known that Wal-Mart treats their suppliers this poorly often buying goods below cost but didn't realize it was common practice across the board for so many retailers.
Wordbird hit the nail squarely on the head with how consumers perceive a brand - luxury, high end brands are found in a beauty hall or department store as you work down to the level of a Boots/Ulta - quality is perceived to be lower then down to SuperDrug/Walgreens/CVS - cheapest of the lot.
You couldn't pay me enough to start up an independent beauty brand now. My hat is off to those that do & have found a niche market. I have several favorites for scents & cosmetics that I purchase from online. This article has strengthened my resolve to seek out more of those.
Thanks for such great food for thought this morning!
Alas, it's an unescapable fact that the major multiples exploit beauty brands, especially the smaller ones. While the big players have the marketing budgets and brand value to haggle on the level, the smaller brands continue to get shafted. It's not just beauty, but it appears to be particularly bad in this market.
With few BIG retailers in each category, the monopoly power at play is huge. Add to that how hard it is to protect your IP in the market and you have an uphill battle.
The message seems to be clear in every area that the multiples deal in - build up your brand as much as possible and wait until they come to you begging to sell your brand, then get them into an ironclad contract! Otherwise, you're getting screwed :(
THis is a really interesting topic and I'd be very interested in knowing what brands actually are independent. I keep finding out brands I like are owned by other companies - I realise they're are not small local brands but I was shocked that both Vichy and La Roche Posay are distributed by L'Oreal.
I'm shocked to what extent this is happening! TBH I think it's all industries this is happening in, I work in video games and some publishers can't even get games on the shelves in the high street unless they take huge cuts on price and deals. Why do retailers have to be so darn greedy?? I know its a business, but working the horse to death doesn't help in the long run.
On the button again Jane, perfectly timed piece of information from my point of view!
Hi Jayne, another area where small manufacturers are getting the lifeline squeezed out of us is getting certification, after 2 years of pursuing fair trade certification ticking all the boxes, I have been told that I can only get it if I
get my products made by 1 of the 3 certified companies. This would mean that my range is not made by me by hand althouhgh I would i tick one of the boxes of what is unique to my brand. It's a real moral dilema.
Aaaaah - I see - lightbublb moment. went on! Things keep on disappearing from boots and upon asking staff I am told that they are given trial periods and that they are cut when they don't sell enough! Seems that that is not the whole story. It seemed odd to me that things like Steamcream disappear from Boots - they obviously weren't prepared to play ball. Am V sad for the indie brands though - big boo to you greedy pig retaliers.
What an insightful read- unfortunately I think this happens across the board in many other industries and the world over- Viva' la entrepreneur !
I really love the insightful posts on your blog! I work for a cosmetic brand in the US and I think this is a good recap of some of the issues cosmetic brands face to make it.
UK specifically, I was DEVESTATED with Pout Cosmetics went out of business in 2009, I wish that I could have found a way to save them but when they partnered with VS in the US, I think it hurt them more than helped them grow, I know nothing of the specifics but I helped launch the brand (in store) and just loved it. I still hoard old and probably not usuable pieces.
Anyway, loved this. support brands you love and products you love, it's the only way to succeed. :)
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