LG (probably) is buying Elizabeth Arden...

  • I think the acquisition will be great for Elizabeth Arden because LG has wonderful high end cosmetic brands in South Korea, like SUM:37, Beyond, O Hui, The History of Whoo etc. Their cosmetics have not only great formulas, but stunning packages as well (just a little example: http://blog.korea.net/wp-content/uploads/2011/10/cosmetics_sum37.jpg).

    So, I think LG can revitalize Elizabeth Arden.

    And you? Thoughts? Opinions? On the other hand, some consumers don't like seeing their favorite brand being buying by another...
  • When a company is acquired the first thing people complain about is "they changed my favorite product." Sometimes this is true, sometimes not. We'll have to wait and see how this plays out.  
  • I think it's usually true. L'oréal changed almost all SkinCeuticals products, Shiseido did the same in BareMinerals and NARS and the list goes on...
  • I think this is cool. 
  • There are a couple of reasons why companies change formulas when they acquire new brands.

    1.  Mislabeled products -  Often smaller companies do not follow the proper labeling rules so the new, bigger company has to go through all the old labels/formulas and fix them to be compliant.  They may not even actually change the formula but to consumers the label looks different so they think the product has changed.

    2.  Unstable formulas - Sometimes the acquired formulas do not meet the stability requirements of the bigger company.  Therefore the formulas have to be redone to meet quality standards.

    3.  Manufacturing efficiencies - A big reason that formulas are changed is because the big company can achieve a significant cost savings by switching out certain raw materials for ones that the big company gets at a good price.  They believe they can make the same quality product at lower cost.

    There are some other reasons like manufacturing capabilities, raw material supplier contracts, etc. but those three are the main ones.  

    Whether the reformulated products are better or not, well that depends on who you ask.
  • 1 and 2 seems the case for L'oréal/Skinceuticals.

    An ingredients list from a SkinCeuticals product before to be bought by L'oréal (I remember that there were a lot of color variations of the same product - sometimes it appeared to be light green, other times deep green):

    Water, botanical glycosides, uva ursi extract, sodium hyaluronate, cucumber extract, thyme extract, bioflavonoids, phenoxyethanol, herbal fragrance.

    The same product, now owned by L'oréal - always light green now:

    Aqua/Water, Glycerin, Propylene Glycol, Phenoxyethanol, Polysorbate 80, Sodium Benzoate, Sodium Hyaluronate, Hydr0xyethylcellul0se, Disodium Edta, Olea Europea/Olive Leaf Extract, Benzophenone-4, Butylene Glycol, Parfum/Fragrance, Citrus Grandis/Grapefruit Extract, Cocumis Sativus/Cucumber Fruit Extract, Thymus Vulgaris/Thyme Extract, Benzyl Benzoate, Alpha-Isomethyl Ionone, Morus Bombycis/Morus Bombycis Root Extract, Linalool, CI 42090/Blue

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