Annual Report 2013

Beauty Care

Business areas

In the following, we comment on the organic sales performance of our business areas.

Branded Consumer Goods

Our Branded Consumer Goods business achieved another solid increase in sales in 2013. Above all, the Hair Cosmetics business stood out with a strong increase in sales and again achieved a new high in market share. Growth was driven, in particular, by successful innovations under our Schwarzkopf and Syoss brands.

In the Hair Colorants business, we launched innovations that set new standards. With Color Ultimate, we introduced the first permanent foam hair color product that offers the possibility of multiple applications, and which can be used at the touch of a button with no mixing. We also launched Million Color, an intensive powder-to-cream colorant with the finest powder pigments for maximum color intensity and brilliant shine. Syoss Oleo Intense is an innovative development representing the first ammonia-free permanent colorant from Syoss activated by pure oils; it provides brilliant color intensity and 90 percent more shine.

In the Hair Care business, the introduction of Gliss Kur Ultimate Oil Elixir was a major growth driver. The new product line builds on the tremendous success of the innovative hair oils from Gliss Kur. With Syoss Supreme Selection, we created two lines of high-quality, professional care in close cooperation with salon experts: the Restore line for precise repair of damaged hair, and the Revive line for intensive shine and color sealing.

In the Hair Styling business, our strong performance was driven by the successful introduction of new styling lines, such as Taft Stylist Selection, the first Taft series in stylist quality. Strong growth was also stimulated by the launch of Taft Marathon – the first styling gel with 48-hour hold. Our trend styling brand Got2b posted double-digit sales growth, helped by the launch of Got2b beach babe – a texturizing styling spray for an unmistakable, "fresh off the beach" look.

The Body Care business benefited from significant innovations and continued to grow. Under the Fa brand, we launched Fa Shower + Lotion, the first shower care product with a body lotion complex. Fa Men Attraction Force is the first Body Care series from Fa enriched with pheromones. We also introduced Fa Romantic Moments, a line that leaves skin feeling soft and smooth. In deodorants, we now have Right Guard Xtreme Activated – the first adrenalin- activated deodorant. In the USA, Dial brought the megatrend of health drinks to shower care with the introduction of the Coconut Water line.

In the Skin Care business, we achieved a strong sales increase with the Diadermine brand, thanks to innovations in the anti-aging segment. The main drivers were Lift+ Soforteffekt, with a skinfirming effect in
90 seconds, and Lift+ Hautperfektion, with powerful anti-aging peptides that perfect the skin's structure for visibly refined skin. Also under the Diadermine brand, and in cooperation with Dr. Caspari, we introduced the skin care line Youth Infused, a particularly effective formulation for fighting wrinkles.

We likewise launched new products in the Oral Care business, including Vademecum ProVitamin, a toothpaste with a cell-stimulating pro-vitamin complex, and Theramed 2in1 Atemfrisch toothpaste with anti-bad breath technology.

Hair Salon

In our Hair Salon business, we did not reach the level of sales of the prior year due to the sustained decline in the market. While business performance was slowed due to the strong decline in the mature markets, especially in Southern Europe, sales in our emerging markets showed strong growth. We were therefore able to further consolidate our position as number three in the world.

We again stimulated the market with innovative launches. In hair colorants, the relaunch of Igora Royal means customers can now benefit from an even more impressive level of color performance. The introduction of Supreme Keratin, a salonexclusive application for long-lasting hair smoothness, further underscores the innovative power of Schwarzkopf Professional worldwide. In styling, the Osis+ Session Label product line added new impetus to the market.