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Wednesday, April 15, 2009

Natural Trend: ALL ABOARD!

Small and mid-sized companies have jumped on board the natural trend bandwagon. The large multinational companies seem to only be entering the category via acquisitions. Estee Lauder jump started the trend in 1993 by acquiring Aveda. L'Oreal has acquired The Body shop, Kiehl's, Garnier, and Sanoflore to its portfolio in the last decade. Burt's Bees is now under the ownership of Clorox, a child of the P&G mega-family, and it has proven it can compete with the larger brands.

Multinationals acquire existing natural brands instead of launching their own because it makes more strategic sense to invest in products that have been tested and proved to be successful. These multinational mega-companies are now only responsible for marketing and promoting the brand. Let someone else pay for the research and development, right?

Adapted from Happi Magazine
Are Multinationals Missing the Natural Movement
Imogen Matthews

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