Daniela Morosini

L’Oréal’s dermatological beauty division is usually a blockbuster, but the impact of increased competition and the decline of drugstore distributors on its recent earnings show the company can’t rest on its laurels.

The influencer-favourite brand seemed on rocket-like trajectory in the 2010s, culminating in a reported $3 billion valuation in 2018. But since then, trends have shifted, sales have slid, debt has mounted and its main investor, the private equity firm TPG Capital, is ready to move on.

Senior correspondent Sheena Butler-Young sits down with beauty correspondent Daniela Morosini to explore how brands handle the fallout from product launch failures and hair loss claims.

Despite a slowdown in the M&A pipeline and rising pressure on indie brands, British cosmetics company Refy thinks it can buck the trend and become a breakout star. Pulling it off will require careful calibration to help it broaden its presence without denting its status.

The backlash that follows a botched product launch can quickly spill over from a bad news cycle to an all-out PR crisis. Beauty brands have the power to foresee these events, and stop them happening, providing they’re willing to do the legwork.

Trending beauty companies are looking to old-school forms of advertising like billboards, taxi wraps and wild posting to boost their brand awareness. Crafting a great out of home campaign means using a different playbook to what they might be used to.

The L’Oréal-owned cosmetics brand discontinued its first smash hit product, the Naked eyeshadow palette, in 2018. It’s hoping a limited edition re-run could hold the key to a wider brand reboot.

The niche brand, founded by former fashion buyer Yasmin Sewell, has closed its second round of funding with Manzanita Capital and Estée Lauder’s corporate venture capital arm also participating.