The CTPA’s Annual Business Forum always provides a valuable update on the state of the industry. The 2006 event (20-21 November) took the theme Cosmetic Concepts and was no exception
Over 150 delegates, speakers and guests attended the CTPA’s (Cosmetic Toiletry and Perfumery Association) 2006 two-day event at the Barbican in London. Structured to take into account CTPA members’ feedback preferences from previous years’ events, day one was devoted to seminars and regulatory issues affecting the industry, while day two involved external stakeholders, covering more wide ranging issues that affect the operating and business environment. Delegates from a variety of backgrounds including commercial, technical, regulatory, legal, customer service, sales and marketing, external affairs and communications from companies of all sizes and all areas of industry.
Lord Sainsbury of Turville, Minister for Science & Innovation, had been due to give a keynote address but resigned from the Government a few days prior to the event. Standing in for him was Richard Carter, director of the chemicals unit of the department of trade & industry (DTI) and chairman of the chemicals regulatory forum (CRF). Set up in 2004, the CRF brings together industry bodies (including CTPA), government and regulators to look at the effects of regulation on the UK chemicals industry. Previously there had been no mechanism to allow a joint government-industry forward look at regulatory proposals, or any forum to consider the cumulative impact of regulation on the competitiveness of the industry. Carter introduced the CRF’s Forward Work Programme.
The seminar on packaging issues highlighted the contradictions of the current marketplace. INCPEN (Industry Council for Packaging & the Environment) continues to promote the worth of packaging to society in preventing product spoilage and is increasingly focusing on sustainable distribution. Meanwhile, politicians focus on ‘unnecessary packaging’ and Trading Standards are increasingly active in enforcing regulations that mandate the minimisation of packing used. At the same time, retailers are busily introducing shelf/retail ready packaging (SRP or RRP) which, apart from forcing manufacturers into holding additional product variants (SKUs or stock keeping units), actually increases transit packaging, with all additional costs being borne by the manufacturer of course.
Discussions on REACH highlighted a shift in manufacturer-supplier relationships away from the minimum cost purchasing model of recent years, with increasing emphasis on the more rounded purchasing approach that takes account of reliability of future supply and the technical and regulatory expertise of chemical manufacturers and distributors. The increasing scrutiny of our business was also demonstrated by the seminar on cosmetovigilance where the success of the cosmetics industry’s own voluntary scheme on monitoring and reporting adverse effects is essential if we do not want to see legislation on the subject.
Official reviews of the safety of our ingredients continue apace, the European Commission has introduced its recommendation on the efficacy and claims for sunscreens and UVA protection is a major issue. Nanotechnology has the potential to become a major public relations disaster in the same way as genetic modification, in spite of scientific evidence regarding safety and the potential benefits of this technology. All this demonstrates the need for the CTPA to continue with its external programme of engagement with the media and opinion formers, promoting sound science, the value of the industry to the country as a whole, the value of self-esteem and maintaining consumer trust.
Risk analysis
With external stakeholders present, the second day turned to risk, consumer perceptions, media and regulators. The CTPA’s chairman, John Ballington, drew attention to the importance of consumer confidence as he posed the question businesses, society and authorities must tackle: Who do we trust? Trust is at an all time low and we cannot be passive in this debate, which is more pertinent now than ever. “In many surveys honesty has overtaken product quality and consumer care,” said Ballington. There is a lack of scientific understanding in the population at large but we must recognise that, even though risks may be small, the one in a million chance of something going wrong affects a real person.
Director of Sense About Science, Tracey Brown moderated a social science session, Challenging Perceptions. “It is a question of leadership and responsibilities and not just trying to shift the risk and avoid personal or corporate culpability,” she said. “Reclaiming of shifting responsibility must be part of the picture.”
Chris Flower emphasised the safety/efficiency link. “There is now a greater understanding of quite how many types of risk there are and we are working towards the CTPA being a body of trust,” he said, adding that this was rather more complex than he originally thought.
However, we must not be frightened to grab hold of issues and promote the benefits versus the risks. There is a slow but increasing backlash against the nanny state and regulation and we should capitalise on it. We must be open and transparent in our dealings with our stakeholders and ensure that commercial interests do not override the public interest. Even REACH can be seen as a tremendous opportunity to promote the benefits of the safety of chemicals, although it will be a difficult task.
Bertil Heerink, director general at European cosmetics association Colipa, moderated the session on The Politics of Global Business, arguing that the regulations have not stopped us being innovative. Regulation is an increasingly global exercise and international organisations regulating cosmetics play
an increasingly significant role. Heerink pointed to the growth of ISO in particular and told delegates they could not ignore this and that they must invest. There are also developments in industry collaboration between the EU, US, Japan and Canada. However, Heerink is anxious to ensure the countries interact adequately. At the moment a major conference is held every five years but he accepted this was too static a way to be moving forward.
Advertising claims
The current situation with advertising claims for cosmetic products and the self regulatory system managed by the Advertising Standards Authority (ASA) was the subject of the final session. The CTPA and its Advertising Claims Group have been engaged in a dialogue with the ASA to develop a joint understanding of what is required to support a claim, focusing initially on skin care. At a seminar in September, a number of industry scientists gave a series of presentations to demonstrate the science behind cumulative moisturisation, a principle that had not been accepted by the ASA and its experts. The ASA has now accepted this principle but the CTPA Forum proved a useful setting for the ASA to give its assessment of progress to date and to clarify some issues in a panel debate. Everyone agreed that the moisturiser seminar marked something of a milestone but clearly there is still a lot to do.
Ex-BACC director Paul Denham said the recent work was a useful model for building co-operation and understanding but he issued a word of caution: “There is a danger of everyone getting too hung up on the science. More work is needed on what it is that the consumer understands from the claim.”