Gone are the days where a brand's DNA is defined solely by clothing and accessories. With the luxury goods sector experiencing a recent downturn, more and more companies are breaking into the perfume and cosmetic spheres. The movement may be attributed, in part, to the "lipstick index," a phrase coined in 2001 by Leonard Lauder, then-chairman of Estee Lauder, to describe how beauty products may act as affordable indulgences during times of economic recession.
With so many companies moving into the personal care product arena, the issues of regulation and safety come into play. Although FDA does not currently "approve" cosmetics, Congress is considering legislation that would give FDA additional regulatory authority, or "bring cosmetic regulation into the 21st Century," according to Rep. Frank Pallone (D-NJ). The outstanding issue dates back to Senator Diane Feinstein's (D-CA) and Senator Susan Collins' (R-ME) Personal Care Products Safety Act (S. 1014), introduced in April 2015, that will (most likely) frame action by Congress in 2017.
In this episode of Fashion Counsel, partners Anthony Lupo and James Ravitz discuss perfumes and cosmetics and what retailers need to know in order to bring them to market. Stay tuned to see how cosmetic and personal care product regulatory legislation plays out in the coming year.
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