Organic products promise & reality

9/29/13
© Alice Communications Inc. All Rights
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Organic products:
Promises and
realities
Alice Communications Inc. & SJ Consulting
2013ry

The new societal
deal
How the last 10 years have reshaped society in
profound and unprecedented ways
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Society: A rapidly changing
environment
§  New technologies are changing society
§  The rise of the social media pushes new
organization and communication
models, affecting market, enterprise and
politics.
§  We are moving from a silo/vertical
organizational model to a horizontal/
collaborative model, driving new
customers expectations in terms of:
§  Quality, Values, Design
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The rise of a new
environmental and global
consciousness
§  A global world
§  Environment is a global problem
§  Environmental and social change are
interwoven
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New concerns and
drivers
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The Rise of Environmental
Consciousness
§  Global warming
§  Pollution and scarcity of natural
resources
§  A global world: others become
important
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Safety
§  Natural is perceived as safe
§  Large campaigns drive that perception,
mainly playing on fear and ignorance
§  The demand for natural products grows
accordingly
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Clean and green
§  If it is natural, it doesn’t pollute
§  Preserving the environment now
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Sustainable: the future of
our children
§  The notion of sustainability becomes
essential, in front of the uncertainty of
the future prompted by environmental
concerns
§  By promoting and using sustainable
product we believe that we can help
secure our planet’s and our children’s
future
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Ethical
§  We no longer live in a bubble, others are
concerned by our consumption habits
§  Environmental and social consciousness
start to blend
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Reaction
How the industry reacted
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What we did
§  The industry, especially large groups
elected to look the other way
§  Organic cosmetics
§  Giving in and using the no parabens
claim as a marketing tool: the “free”
cosmetics
§  Fake naturals: when demand for
naturals grew, we thought that it was
enough to just claim “natural”
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What we didn’t do
§  Listening and paying attention to the
true motivations behind the demand for
naturals
§  Gather as an industry to address the
problem in a coherent manner
§  Fund the proper studies to debunk myth
and expose the truth
§  Inform
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The result?
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Continuous rise in extremist
consumer groups
§  Deliver more: Products, performance
§  More efficacy = more side effects
§  Safety becomes a front and center issue
§  Fear is a predominant factor
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The rise of organic
certifications
§  Ecocert
§  Boots
§  Cosmos Standard
§  Cosmebio
§  AB
§  Natrue
§  Nature et Progrès
§  …..
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The emergence of a myriad
of substandard brands
§  A number of very small brands emerge,
not always able to deliver products
meeting good quality and safety levels
§  The whole industry suffers
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Accidents and potentially
increased regulatory
pressure
§  More products are pulled from market
because of contaminations due to the
lack of adequate preservation
§  The Campaign for Safe Cosmetics puts
pressure on the regulatory bodies to
pass legislation that would make it very
difficult for manufacturers to create and
market new products
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Mistrust: a rampant and
large phenomenon
§  Unfulfilled promises breed mistrust
§  Unfunded rumors and fears
§  Safety issues, real or perceived: safety
becomes a front and center issue
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Loyalty lost, driven by fear
§  Brands are no longer perceived as beacons of
quality and reassurance
§  Consumers turn elsewhere despite the lack
of quality found in smaller brands:
Development of small unsafe brands, or
unsafe formulations.
§  Reinforcement of extremist consumer groups
§  DIY movement, FabLabs
§  Explosion of organic products and demands
for harsher standards, despite their inability
to deliver on the real demands
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The Rise of
Organic
Landscape
Perception vs Reality
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What does exist?
A wide array of logos, acronyms,
certification bodies information on
cosmetic packagings, that are all related
to the environment or to natural
cosmetics:
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Areas covered:
§  Environment
§  Eco and organic labels
§  Natural and organic cosmetic labels
§  European cosmetic reference labels
§  Fair trade labels
§  Distribution channels or groups of
cosmetic companies establishing their
own label
§  Environmental information (as soon as
2011)
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COSMOS
STANDARD
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What will exist ?
§  PROJET DE REFERENTIEL EUROPEEN PAR
LE COLIPA
§  A european reference which wil give
rise to an ISO standard at the
international level:
§  ISO launches vote on natural and
organic cosmetics project
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ISO
During the last plenary meeting of the International
Standardisation Organisation (ISO) Technical
Committee (TC) 217 Cosmetics in June this year,
France and Spain proposed a new work item on
technical definitions and criteria for natural and
organic cosmetic ingredients and products. The
project was approved during the meeting, but all the
new ISO work item proposals need to be formally
voted. The ISO TC 217 secretariat has launched the
vote on the natural and organic cosmetics project on
the 2 December. The vote will be closed on the 2
March 2010. If the approval is confirmed, the work on
this ISO project can start.
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Perception
§  The perception is that these products
are safer:
§  For us: natural is safe
§  For the planet: natural doesn’t pollute
§  For our future: sustainable
§  For others: fair trade helps us help
others
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The reality: no certification
today delivers on all four
points
§  Natural or organic isn’t always safer
§  Pollution is not always linked to the
nature of the product: processing and
transport are also to be examined
§  Organic doesn’t mean sustainable
§  Organic doesn’t mean ethical
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Consumers and
organic cosmetics
Not there yet
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Expectations: the 4 drivers
+1
§  Safe
§  Clean
§  Sustainable
§  Ethical
§  Efficient ( à confirmer)
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Perception: naturals still
better than certified
organic…
“Natural” cosmetics seem to appeal more
to customers than certified organic beauty
products:
§  ”It stinks, it sticks and it does
nothing!” (more so in the US)
§  ”not THAT organic: 10%” (EU)
§  ”It’s expensive and poorly distributed"
§  "segmentation is too short"
§  " I can’t figure out all these labels"
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Growth drivers
A world of opportunities
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Technology
§  Green chemistry
§  Green technologies
§  Biotechnologies
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Communication: restoring
confidence
§  Large brands didn’t take the risk yet for
the consumer confidence level, paired
with the scrutiny of the watch groups
made it a dangerous proposition.
§  They are now starting to really pay
attention with limited but verifiable
programs.
§  The breadth of their reach may very well
change the landscape forever….
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J&J Safety and Care
Commitment
§  Safety and Transparency
§  Actual actions:
§  A website:
http://www.safetyandcarecommitment.com/
Removal of a selected list of ingredients:
§  Preservatives: Formaldehyde Releasers;
Parabens
§  Other Materials: 1,4 Dioxane; Phthalates;
Triclosan; certain fragrances
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J&J Healthy Future
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2015 Goals - exert

P&G Sustainability 2020
§  Replace petroleum-based materials with sustainably
sourced renewable materials by 25 percent.
§  Increase cold water washing to 70 percent of all
machine loads.
§  Reduce packaging by 20 percent per consumer use.
§  Conduct pilot studies in developed and developing
markets to understand how to eliminate landfilled/
dumped consumer solid waste.
§  Increase renewable energy powering company plants
to 30 percent of the total mix.
§  Reduce disposed manufacturing waste to less than 0.5
percent.
§  Reduce truck transportation by 20 percent (km/unit of
volume) compared to 2010 baseline.
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The Future
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New Standards
§  The organic movement is a consumer driven
movement
§  Al,though it has been used by a number of less savory
actors, for profit and pure marketing purposes
§  Organic certification might disappear as the practices
they advocate become mainstream
§  We see progressively the whole industry adopting the
standards that answer to the consumer’s real
demands, thus making organic certifications obsolete
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Alice Communications Inc.
Marie Alice Dibon
madibon@alicecommunications.com
SJ Consultancy & Training
Sandie JAIDANE
Tel : +33 (0) 6 16 35 51 21
sandiejaidane2003@yahoo.fr
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Organic products promise & reality

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