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Speaker 1: Bloomberg Audio Studios, podcasts, radio news Now. Skincare is a

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Speaker 1: top revenue sector for estill Older, reflecting rising global demand.

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Speaker 1: It's clinic division also debuted on Amazon as it seeks

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Speaker 1: to redefine its brand for the future. Joining US now

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Speaker 1: is Clinique and Origin's global brand president, Michelle Frera. Michelle,

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Speaker 1: thank you for joining us skincare. I don't know whether

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Speaker 1: it's having a revival or certainly everyone's talking about where

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Speaker 1: you you know, this is where you make You can

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Speaker 1: make quite a lot of money. There's a lot of also,

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Speaker 1: you know, companies trying their hand at that. What kind

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Speaker 1: of growth are you expecting in the industry.

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Speaker 2: Yes, we are seeing very strong, healthy growth and prestige

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Speaker 2: beauty around the world. We saw a huge acceleration of

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Speaker 2: skincare growth during COVID and consumers are more and more

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Speaker 2: educated about their skin and skin is now really more

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Speaker 2: about skin health. And then post COVID then we saw

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Speaker 2: bounce back also to make up, but make up influenced

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Speaker 2: by skincare. So we are seeing really strong, healthy growth

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Speaker 2: and we're really excited to see how consumers are just

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Speaker 2: educating themselves more and and clinique education is core to

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Speaker 2: the brand, So we really take pride in educating consumers

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Speaker 2: about their skin health.

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Speaker 1: So, I mean, Clinic is one of the names that

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Speaker 1: everybody recognizes, It's been around for a long time. It

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Speaker 1: does it. It generates quite a lot of revenue. What

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Speaker 1: you spend most of your time thinking about is it

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Speaker 1: how you position it. So you talk about prestige, which

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Speaker 1: is not quite high end luxury, but it's kind of

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Speaker 1: like prestigious. Is it pricing or is it distribution?

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Speaker 2: Yeah, no, Clinic, it's really more about the consumer. We're

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Speaker 2: always thinking about the consumer, where the consumer is going.

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Speaker 2: The space that's very much growing is the space with

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Speaker 2: dermatologists brands and Clinique was founded in nineteen six by

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Speaker 2: a world renowned New York City dermatologist and today Clinic

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Speaker 2: is still dermatologists guided and we offer safe clinical solutions

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Speaker 2: that deliver on the highest level of efficacy with the

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Speaker 2: most rigorous safety, which consumers are really looking for.

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Speaker 1: Michelle, there's so many new entrants as well. Yes, how

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Speaker 1: difficult is it to actually fend those off? And does

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Speaker 1: it really depend on how you position yourself? And so

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Speaker 1: I know it's quite exciting that you're selling on Amazon.

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Speaker 1: What was the decision behind that.

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Speaker 2: Yes, we are selling on Amazon. We just launched in

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Speaker 2: the US only, and that is really about expanding our

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Speaker 2: consumer reach and making sure that we continue to speak

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Speaker 2: to an appeal to broader consumers in the US, and

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Speaker 2: we're doubling down on our authentic dermatologists heritage and so

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Speaker 2: consumers can come. We are launched on the Amazon Premium store,

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Speaker 2: and so we have a branded storefront where you can come.

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Speaker 2: You can get personalized solutions. We partner with our guiding

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Speaker 2: dermatologists to create a Clinic skin analysis tool where you

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Speaker 2: can get personalized recommendations uh, and you really learn about

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Speaker 2: the clinique uh dermatologist guided solutions that we offer for

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Speaker 2: skin care, but also makeup. So Clinic is the only

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Speaker 2: dermatologist brand that offers makeup. We offer dermatologists developed foundations.

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Speaker 2: We offer. Our eye makeup is by our I Safety Promise,

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Speaker 2: which means that we're all our I makeup is safer

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Speaker 2: sensitive I see for contact lensware. All of that is

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Speaker 2: on Amazon. You can learn about that.

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Speaker 1: I mean, it's amazing that actually you so you've decided

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Speaker 1: to partner with Amazon, and again, is that because it

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Speaker 1: takes away the pain of actually reaching consumers, or were

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Speaker 1: you ever worried, like talk to me about the discussions.

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Speaker 1: We ever worried that by being on Amazon it chieavements

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Speaker 1: it or are the benefits of actually reaching a wider

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Speaker 1: you know, consumer audience un present worth it because Amazon

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Speaker 1: is also changing.

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Speaker 2: So Amazon has really evolved in the last few years,

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Speaker 2: and so their premium store now allows brands to offer

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Speaker 2: an elevated experience, which is really important to us, and

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Speaker 2: allow for these personalized tools for education. So just the

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Speaker 2: overall experience on Amazon is you're not compromising as a brand.

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Speaker 2: You're able to deliver on that elevated experience and personalized

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Speaker 2: recommendations that consumers are looking for. So it is a

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Speaker 2: place where we felt like we could really double down

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Speaker 2: our authentic RM heritage and offer that to consumers.

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Speaker 1: What's next for Kleanie because you know, I know you're

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Speaker 1: also selling to mend and actually that demographic has really

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Speaker 1: come on to skincare, which is basically untapped revenue. There's

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Speaker 1: concerns that teens and tweens are starting into skincare, Like,

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Speaker 1: how do you see that evolving?

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Speaker 2: Yes, definitely, we see that. We take that very serious.

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Speaker 2: Safety is such at the core of clinique, and we

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Speaker 2: just make sure we have Here in the UK, we

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Speaker 2: have nine hundred consultants, so we have clinic as in

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Speaker 2: consultants that are clinical consultants trained in partnership with dermatologists,

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Speaker 2: so we make sure they're trained to offer recommendations for

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Speaker 2: any age, any skin type. It's men, women, young teens,

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Speaker 2: older women, which is really the beauty of clinic and

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Speaker 2: we can offer those safe clinical solutions no matter what

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Speaker 2: your age is.

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Speaker 1: What region is doing the most? Is there an appetite

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Speaker 1: for skincare in a region that's going better than others.

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Speaker 1: I don't know whether the US is leading or whether,

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Speaker 1: for example, it's in Asia or High C.

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Speaker 2: Yeah. Absolutely, I mean the US and the UK are

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Speaker 2: core heritage markets for US, must win markets for US,

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Speaker 2: and then we're also seeing an explosion in Asia in India,

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Speaker 2: which are also markets that we are also scaling. But

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Speaker 2: the US and the UK as our core markets remain

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Speaker 2: must win for US and where we know that we

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Speaker 2: can really truly start the clean consumer.

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Speaker 1: Should I imagine that AI plays a huge part also

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Speaker 1: able to do all this dermatology skincare. I mean, is

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Speaker 1: it really changing to the point where you know, you

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Speaker 1: buy a foundation online it's the right color. And how

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Speaker 1: much investment and how much attention are you paying to

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Speaker 1: AI to be able to sell the right things to

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Speaker 1: the right people.

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Speaker 2: Yes, I'm so glad you're asking that question because we

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Speaker 2: are investing a lot of time in that. First of all,

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Speaker 2: we're seeing sensitive skin is a huge global phenomenon right now.

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Speaker 2: It's on the rise. Seventy one percent of consumers around

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Speaker 2: the world say that they have sensitive skin. So personalization

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Speaker 2: is more important than ever, and so we actually are

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Speaker 2: rolling out right now an AI powered diagnostic tool to

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Speaker 2: offer those personalized recommendations. And what is so great about

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Speaker 2: is that it has fifty five years of our dermatological

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Speaker 2: science and research and the data of three million face

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Speaker 2: evaluations that we've conducted or leader. So it scans your face,

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Speaker 2: but it doesn't just take what it scans. It also

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Speaker 2: then takes all that information of the fifty five years

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Speaker 2: of science with the three million in facey valuations to

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Speaker 2: give you the most personalized recommendation. You could do it

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Speaker 2: on your phone, like go on our brand dot com

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Speaker 2: and do it, but if you go to the store,

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Speaker 2: the clinical consultants whose trained on that partnership with dermatologists

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Speaker 2: can also help guide you and.

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Speaker 1: How sensitive are your consumers to price increases? In price

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Speaker 1: change and so we're seeing cost of living crisis, We're

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Speaker 1: seeing inflation, but I imagine your supply chains and your

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Speaker 1: ingredients are also getting more expensive.

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Speaker 2: Yeah. Absolutely, I mean consumers, yes, as you say, are

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Speaker 2: very says, but it's really more about value versus price.

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Speaker 2: And I think consumers are very engaged in beauty, in

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Speaker 2: skin care, and so to them, they want approachable solutions,

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Speaker 2: you know, that are affordable, but it's about the value.

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Speaker 2: So they want us still make sure that they're getting

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Speaker 2: products that are from brands that they trust. They're willing

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Speaker 2: to pay for that, and they're willing to pay for

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Speaker 2: what they know it's going to be good for their skin.

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Speaker 1: Michelle Ferrer, thank you so much for joining us today.

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Speaker 1: That was the Clinician. Origins Global brand President Michelle Frere