Henkel launches organic vegan beauty brand N.A.E.
German consumer goods group Henkel's latest venture sees the company aiming to establish new growth paths in the challenging sector of mass-market beauty. Faced with consumers who are increasingly dissatisfied with the big-name brands sold through large retail chains, and who are seeking out smaller labels and alternative distribution channels, such as organic stores and pharmacies, as well as the internet, Henkel has been adapting its strategy to appeal to beauty fans investigating new horizons. On the French and Scandinavian markets, this strategy has led the company to launch a new brand.
N.A.E. will be rolled out in France and Scandinavia in January of next year but a selection of its products will debut as a preview at Monoprix in December. The brand, whose name is an acronym of "Naturale Antica Erboristeria", isn't totally new - in a way, it's the offshoot of a brand acquired by Henkel in 1992: Antica Erboristeria, which is only available in Italy. This label will continue to operate on its home market but will also be joined there by its new sister brand towards the end of 2019.
The new range seeks to take advantage of the current consumer interest in organic cosmetics with products which have both Ecocert and vegan certification. In so doing, Henkel is playing into a fast-growing trend, and it's a path that the company is also exploring with its other brands, such as Fa, Barnänger, Diadermine, Vademecum and Syoss, all of which will be launching responsible products in 2019 or are currently in the process of securing a "90% natural ingredients" logo.
N.A.E.'s launch offering will include 26 products, covering face and skincare, shower gel, deodorant and micellar water. The brand intends to democratise natural beauty with products which range in price from 4 to 12 euros and clearly detail their ingredients, all while consciously channelling the label's Italian DNA.
The launch will be supported by a comprehensive multi-channel marketing strategy, with the social media push beginning in December, followed by two print and television ad campaigns in March and September. The brand will therefore be exploring a number of new ways to snag consumers who usually steer clear of mass-market beauty. And it's an approach that can be adapted to suit different markets. While N.A.E. was conceived in collaboration with Henkel's French and Scandinavian teams, the company's German team has opted to launch a different brand under the name of Nature Box, which has a wider ranging offering that includes haircare. This label also foregrounds its natural ingredients but it's the brand's vegan certification which takes pride of place in its messaging. Nature Box was rolled out in German-speaking markets and the US in September.
Having reported overall revenues of $20.029 million in 2017, Henkel expects to see an increase of 2 to 4% this year, with growth of 0 to 2 % in its beauty business.
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