Buzzworthy Beauty Insights Vol 185: EL to Keep Too Faced, Dr. Jart, & Smashbox

Research evidence excerpt

Buzzworthy Beauty Insights Vol 185: EL to Keep Too Faced, Dr. Jart, & Smashbox

Faced will relocate from LA to NYC and join EL's makeup cluster alongside MAC & Bobbi

Brown, Smashbox will remain in LA w/ a leaner organization, and Dr. Jart will continue operating

from Korea under existing leadership. The decision comes shortly after EL walked away from

acq discussions w/ Puig as Charlotte Tilbury sought a renegotiation of her contact for $1B (see

note here). While retaining the brands delays potential capital redeployment into faster-growing

assets, the decision reinforces mgmt's message that portfolio actions and M&A must meet return

& profitability thresholds.

AI Powers China Share Gains; Oppty in Hair, Fragrance, & Wellness: China’s beauty mkt

remains an evolving but sizable opportunity (RMB553B / $77B); winning share increasingly

requires an AI-first, social-commerce-driven playbook. Industry experts est China is 18-24 mos

ahead of Western mkts in AI-enabled commerce, with AI already driving a DD% sh of retail

sales. Brands that can identify high-growth niches (haircare, fragrance, wellness) and effectively

leverage AI, livestreaming, creator ecosystems, & dynamic merchandising are best positioned. In

haircare, environmental stressors have made hair loss & damage outsized concerns for Chinese

consumers, driving demand for premium scalp serums & targeted treatments/supplements.

Fragrance remains underpenetrated, w/ domestic brands gaining traction through localized scents,

ingredient storytelling, experiential retail, & innovation. In wellness, both premium & value-oriented

offerings are resonating, while mid-market remains more challenged.

Increased Consumer Selectivity Hits Salon Spending: Per Kline & Co., US salon revenues declined Sydney Wagner * | Equity Analyst