Californians are well known for their liberal attitudes both politically and when it comes to social issues. They are avid recyclers, environmentalists and supporters of gay rights and animal welfare. They are also extremely selective about what goes into their cosmetic products.
In 2005, California was the first US state to pass legislation governing the safety and reporting of cosmetic ingredients. The California Safe Cosmetics Act requires manufacturers to disclose any product ingredient that is on state or federal lists of chemicals that are thought to cause cancer or birth defects. California is well known for being a state where everyone adheres strictly to the law, from driving at the speed limit to following regulation to the letter. The California Organic Products Act (COPA), which was amended in 2003, states that to put the term organic on the label of any C&T product, the formula must contain a minimum of 70% organic ingredients compared to a much smaller amount in other US states and in other countries. Anything that does not comply with this strict ruling will not be sold in California.
California’s C&T sector has always been mooted as a melting pot not only for regulation but also for innovation with many cult beauty brands hailing from its shores including Benefit (San Francisco), Urban Decay (Los Angeles) and Bare Escentuals (San Francisco).
Cultural compliance
Karen Behnke is the ceo of Juice Beauty, a Californian-founded company based in Marin County, north of San Francisco. Her facial skin care range is up to 95% certified organic and is USDA certified. The range utilises the power of natural fruit juices, is 100% suitable for vegetarians and does not test on animals. It is also, unsurprisingly, free from parabens, petroleum, surfactants, sulphates, synthetic fragrances and colours. When it comes to sales, the company’s ceo feels that homegrown loyalty counts for a lot.
Says Behnke: “Our range is fairly premium, retailing at between $28-45 per item, but we find our most loyal customers are the ones on home soil – they have grown with the brand and identify with its ethos and beliefs. As a rule Californians are extremely conscientious about what they put into their body by way of food and drink, often favouring organic choices and this is largely the same with the skin care items and cosmetics they use.”
Behnke says that when she launched her range in 2004 there were many Californian cosmetic companies purporting to be natural but not many in the organic sector. “We approached the head of Sephora US with our idea,” she says. “And they said if we can make it high-end enough then we will stock it. So that’s what we did and we have never looked back.”
She adds that statistically Californians have the lowest obesity/smoking levels in the whole of the US and people living there are generally very sporty and health conscious due to the outdoor activities offered to them by a geography of lakes and mountains.
Benhke says that key to the brand’s success has been the ongoing support of its retailers, whose commitment during the difficult past year has been particularly appreciated. She comments: “A key stockist of ours in California is Pharmaca, and this is a particularly good partnership for us as its customers are fully on board with the holistic lifestyle that our customers enjoy.”
Under one roof
Pharmaca bills itself as a “one stop shop” which combines both mainstream and holistic medicines with organic and natural C&T products, the idea being that the average Californian customer can get everything in one place. And with the vast majority of the 22 stores situated in California, it is obviously a concept that has taken off there since it was founded in 2000.
However, the group is very selective on where it opens store within the state, according to JoAnn Issenan, Pharmaca’s founder.
“I believe people on the west coast of the US, and I think Californians in particular, understand the concept of holistic medicine and complementary remedies so they are a perfect fit for the Pharmaca brand,” she says. “However, this does not apply everywhere and we have to be very selective about where we open stores. Our three criteria are that in any location consumers need to be of a high standard of education, income and have a high interest in self-care.”
Issenman says that the core group of Pharmaca customers are women in the 35-60 age group and they have taken brands like Juice Beauty to their heart. Each store has a “Power Wall” where it showcases a very selective group of facial skin care products which are displayed in a prominent position and any brand the company decides to work with needs to have “an excellent product, ethical ingredients and a focused marketing plan in order to develop in tandem”.
Industry interests
With California being such a hive of C&T activity, it was a positive move for the industry when the organisation Beauty Industry West (BIW) was set up to represent its interests. It members include contract formulators and manufacturers and those involved in the fragrance, packaging and ingredients sectors. BIW was established in 1990 by Robert and Suzanne Grayson who worked in the industry already and wanted to help other people in their quest to get products developed, manufactured and distributed. The Graysons came from an east coast background where there are traditionally several trade bodies for many different areas of the cosmetics industry and they wanted to create one umbrella organisation, meeting many different needs on the west coast.
Stacy Fernandez is the vice president and says that BIW aims to bring people together in a networking context where they have the opportunity to discuss ideas and listen to selected guest speakers. “We have tried to become a kind of marketing and social equivalent to the SCC (Society of Cosmetic Chemists) and our members very much enjoy the opportunity to listen to guest speakers with a local connection. For example, just last month we heard from Davis Factor, one of the grandsons of Max Factor and the founder of Smashbox Cosmetics, which was founded here in California in 1996.” Fernandez adds: “Compared to the corporate mentality and huge conglomerates of the east coast, this side of the US tends to encourage smaller, entrepreneurial businesses to flourish and this in turn leads to greater creativity in my opinion. This is also reflected by our consumers – they are very ingredient savvy and check labels like crazy before they buy something. In fact some might say this state is slightly over-regulated and that has caused consumers to adopt this behaviour.”
Urban Decay (now owned by Castanea Partners) is another Californian cosmetics company done good. It now has a worldwide cult following although its roots are still firmly based in the Newport Beach headquarters where it was founded. Eric Jimenez is Urban Decay’s worldwide sales director and he believes there are many reasons for California’s successful beauty record.
“Firstly I would say that while it is expensive to live in this part of the world, it does make you think creatively. Around 20 years ago most C&T companies in the US were New York-based but that is not the case anymore. After the dot.com boom here in the early 90s there was suddenly a lot of money available to successful business people and many of them decided to invest in either property, restaurants or the beauty industry.
Adds Jimenez: “We do find that Californian customers are loyal to us, and the fact that we are stocked in 17 Macy’s stores across the west coast would back this up. We are a Californian brand, born and bred so we need to make sure we are presentable in our own back yard. Paying attention to these details seems to have captured us loyalty, absolutely.” He adds that the company’s long-standing policy of no animal testing and recyclable packaging also makes it a favourite with the ethical Californian consumer.
And with many Californian-founded companies working along the same lines and tapping into the same subconscious of their local consumer and beyond, this part of the US seems set for a sunny and prosperous future.
Flying the flag
One of California s most iconic beauty brands is Benefit. Started by twin sisters Jean and Jane Ford in 1976, the business grew from a tiny store called The Face Place in San Francisco s Mission District to having more than 2,000 counters in over 30 countries. ECM talks exclusively to Jean and Jane about the outlook of the state where their success started
What do Californians look for in their beauty products?
Jean: In California, women want to have a healthy glow all year round. There is definitely a love of bronzing here, but women also want to appear ageless and protect against sun damage. Our Hoola bronzing powder is a best seller because it looks so natural on the skin.
Does Benefit sell particularly well in California because its roots are in San Francisco?
Jane: California is home to Benefit so there is absolutely a hometown pride and a very deep local following that exists here.
Jean: We settled here shortly after we made our big break in modelling, using the money we made from that to start our first store, and we have never looked back and feel very lucky to be in this colourful and beautiful city by the bay.
In what ways does Benefit specifically reference San Francisco in its marketing and advertising?
Jean: We love San Francisco – it’s our home. This city is deeply rooted in all aspects of Benefit’s brand culture. Our brand logo, catalogues, postcards and posters all contain the word San Francisco and inspirational imagery from this great city.
Jane: San Francisco is a big part of our brand DNA. This city has a great mixture of people from all over the world. San Francisco inspires us everyday – from product development to our company philosophy and we are very proud to be a San Francisco-founded company.