Schwan Cosmetics News Magazine

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NEWS MAGAZINE


NEWS MAGAZINE

TOMÁS ESPINOSA:

A TRUE FAMILY ENTREPRENEUR

BECOMES NEW CEO

WE BELIEVE THAT WE CAN

CONTRIBUTE POSITIVELY TO THE

LIVES OF CONSUMERS AND TO THE

MISSION OF OUR CUSTOMERS.

WE BELIEVE IN INNOVATIONS AND

SERVICES THAT ARE AIMED AT THE

NEEDS OF THE USERS.

WE BELIEVE BEAUTY IS MORE THAN

JUST THE PRODUCTS YOU PUT ON

YOUR SKIN. IT’S IN THE EXPRESSION

AND CELEBRATION OF YOUR

UNIQUENESS.

WE BELIEVE IN CREATING BEAUTY

MINDFULLY.

Tomás Espinosa takes over the role as Chief

Executive Officer (CEO) of the Cosmetics subgroup

within the Schwan-STABILO Group.

The interim head Sebastian Schwanhäußer will concentrate

fully on his task as overall Managing Director of the Schwan-

STABILO Group with immediate effect.

Tomás Espinosa knows the company well. He was Chief

Market & Business Development Officer of Schwan Cosmetics

for the last two years. In his new role as Head of Cosmetics,

he will continue to steer the subgroup towards sustainable

success.

With Espinosa, Schwan Cosmetics underlines its international

orientation. The 44-year-old family man comes from Mexico.

He has a proven entrepreneurial record, combined with sound

professional knowledge of his field: From 2001 to 2018, he

successfully built up his own family business, Cosmetic Colors,

in his home country. In this process, Espinosa left nothing to

chance: while his engineering degree provided him with the

necessary academic knowledge, he meticulously acquired

the practical know-how during everyday production. Today,

Cosmetic Colors is Schwan Cosmetics’ Mexican location.

Sebastian Schwanhäußer is convinced: “Tomás Espinosa

is a true family entrepreneur with excellent industry expertise.

He has already internalized our values and our DNA in his

previous position. Over the last few years, I have worked very

closely and very well with Tomás. I enjoyed it a lot and I am

» INNOVATION ARE IN

OUR BLOOD. WE HAVE

INVENTED MANY PRODUCT

CATEGORIES IN THE

COSMETICS INDUSTRY

AND WILL CONTINUE

TO DO SO. «

TOMÁS ESPINOSA,

Chief Executive Officer

personally very excited about what is to come.

As a company we are very pleased to have Tomás Espinosa,

such an experienced and valuable leader, as CEO for

Schwan Cosmetics.”

Espinosa can rely on many years of experience in management.

One of his main tasks will be to lead Schwan Cosmetics

back onto the path of success after the challenging

corona-related financial year 2020/21.

The declared goal: a significant increase in turnover in the

current fiscal year and at the same time a rise in efficiency.

Through teamwork and innovation the new CEO also wants to

pursue a consistent strategic reorientation.

Espinosa: “Innovation is in our blood. We have invented

many product categories in the cosmetics industry and will

continue to do so. In addition to focusing on our customers,

we will also increasingly focus on consumers in the future.

Based on our purpose of Mindful Beauty, we will continue to

write Schwan Cosmetics’ success story.”

Espinosa also intends to vigorously promote the company’s

focus on sustainability: “The cosmetics market is changing noticeably

at the moment and topics such as sustainability and

mindfulness are becoming increasingly important – which of

course also shift our customers’ needs. We are reacting to

this development with creative solutions and want to prove

that sustainability and product excellence are not mutually

exclusive.”



NEWS MAGAZINE

» OUR KNOWLEDGE OF

FUTURE TRENDS AND

OUR CONSISTENT FOCUS ON

THE HIGHEST QUALITY ARE A

SURE WAY FOR OUR CUSTOMERS

TO GET THE RIGHT PRODUCT AT

THE RIGHT TIME. «

GERMANY HEADQUARTER

Heroldsberg

Tomás Espinosa,

CEO

Trend forecasting can be like setting off into the unknown.

But at Schwan, we know where to start - we start with the

consumer.

Since 1927 Schwan Cosmetics has strived to constantly revolutionize

the world of beauty, many times pioneering with a

series of technical and marketing initiatives that have brought

original and relevant solutions to our customers’ satisfaction.

Having a deep understanding of the future end consumer is

the most important part of developing innovative products.

Our attitude

Being in the color cosmetics business for more than 90 years,

Schwan Cosmetics has gained a lot of valuable insights,

especially when it comes to delivering experiences beyond

the product. This motivates the team to work both with customers

and in many different roles within our own company to

change the way business is done. More than ever, our values

have also inspired our actions and the new color code of our

logo is an expression of this. After all, the iconic red swan represents

the DNA, heritage and core values of our company.

In other words, the color expertise, the passion, the demand

for quality, authenticity and a close relationship with the consumer

is what we represent. We fully adhere to this meaning

of Mindful Beauty, which stands for diversity and transparency

and allows us to build trust on proof.

We can all see that values are changing. They are shaped by

concepts such as respect and uniqueness, preservation of the

environment, naturalness, recycling, biodegradability and respect

for wildlife. With these changes, beauty becomes a tool to

express oneself, based on awareness of the product purchased

and the impact of its production, consumption and life cycle.

Beauty that goes beyond the products you put on your skin.

PRODUCTIONS LOCATIONS

Schwan Cosmetics Headquarter

Heroldsberg, Germany: 761 employees

Schwan Cosmetics USA

Murfreesboro, TN: 235 employees

Tianjin Schwan Cosmetics Co. LTD

Tianjin: 80 employees

Schwan Cosmetics Czech Republic

Český Krumlov, 530 employees

Schwan Cosmetics do Brasil

Curitiba: 150 employees

Cosmetic Colors, S.A. de C.V.

Toluca: 500 employees

Creative Colors S.A. Colombia

Bogotá: 85 employees

» HAVING A DEEP

UNDERSTANDING OF OUR

FUTURE END-CONSUMER IS THE

MOST IMPORTANT PART OF

CREATING INNOVATIVE

PRODUCTS. «

Iris Hubbes,

Director Trendforecast

The biggest innitiative of the Schwan Cosmetics teams is to

develop new products that costumers and end-consumers

can identify with because they respond to their beliefs, needs

and desires. In order to be in tune and in perfect symbiosis

with consumers, we closely follow all global and especially

socio-economic changes that shape these trends and influence

the future. We do everything we can to understand what is

driving the dynamics of the types of consumption to come.

Iris Hubbes Schwan Cosmetics Trade Marketing Manager,

who is overseeing the company‘s trend forecasting says,

„having a deep understanding of our future end-consumer is

the most important part of creating innovative products. These

products deliver a purpose that can give the consumer a

sense of meaning and identity whilst catering to their beliefs,

needs and wants.“

When thinking globally means being ready for local needs

One main asset is our industrial and commercial presence

on five continents (70 countries), where about 2600 people

are employed. „This gives us the opportunity to benefit from

invaluable market research on a global scale“, explains

Tomás Espinosa. This data from our global network, combined

with our many years of expertise, consultations with

experts, surveys and information events, gives us a high

degree of agility.

The needs of today‘s consumers can be translated to revise

our conclusions and produce even more accurate forecasts

of future consumer expectations. It‘s important to remember

that our database contains over 12,000 different make-up

solutions, including 370 textures!“

„Our knowledge of future trends,“ Tomás Espinosa emphasizes,

„and our consistent focus on the highest quality are

a sure way for our customers to get the right product at the

right time. „

The world is our canvas

With our local and global presence, we strengthen the

relationship with our customers through personalized support

and service. With our mix of 9 key locations worldwide and

our new Digital Campus, we take a tailored approach that

addresses local trends and products that are distinct and

relevant to consumers.

We are creating solutions for brands on a mission. Worldwide.



NEWS MAGAZINE

WOOD YOU?

Believing in the greater vision of mindful beauty, we

understand that big ideas start with change and sometimes

take their time to be called “perfect”.

Our clean formula for up to 24h wear properties and a

cashmere-like application is filled in our new InnovatedWood

Technology Pencil which secures high-performance while

reducing plastic by up to 70%.

We wood go the extra mile for you. Anytime.

AIR-TIGHT CLO-

Featuring a new strong lock

technology and a soft inlay

that acts as a grip-zone, our

protector cap sures an

air-tight closure for a wide,

high-performing color range.

EMERGING STRONGER

THANKS TO OUR ASSETS!

Schwan Cosmetics will undoubtedly emerge stronger from this

crisis which has been impacting the world for many months now.

New tools have been developed, such as the new Digital Campus

platform, whilst the new «Mindful Beauty» approach already

turns out to be a valuable asset.

New products were launched and one ultimate step for the

teams was to make wooden pencils airtight with a 100% natural

and biodegradable refinement that secures high-performance

formulas!

Barbara Bauer-Kropf, as Chief Sales Officer and always

close to the market, gives an insight into current challenges

and developments. She explains why the latest innovation

lives up to its name ‒PERFECT!

BARBARA BAUER-KROPF,

Chief Sales Officer

Scan QR code to

find out more

INNOVATED WOOD TECHNOLOGY

(PATENT PENDING)

A modern approach that captures the heritage

and pure essence of a wooden pencil

itself. Our patent pending innovation makes

wooden pencils airtight with a 100%

natural and biodegradable seal that allows

more sustainable products. Made for vegan,

clean,cruelty free and waterproof formulas.

No smudging, no fading from day to night.

How do you expect the industry to recover from the

pandemic?

Barbara Bauer-Kropf : We are convinced that the market will

emerge reinforced from the crisis. Luckily we found new ways of

staying very close to our customers during the pandemic. With

the help of our Digital Campus platform, we have a compelling

tool with which to take our customers on a journey through our

innovations.

Innovations will be key after the pandemic as consumers will

want to see new things. Our new strategy Mindful Beauty shows

what we believe in, mirrors exactly the latest market trends on a

worldwide scale and brings the customers’ needs into the centre.

Schwan Cosmetics as a privately owned company truly lives the

Mindful Beauty approach to its fullest. We marry our leadership

in formulas with our packaging expertise to create innovative

products by being mindful of the needs of consumers and the

world we live in.

What are the expectations that current consumers have of

their make-up products ?

Barbara Bauer-Kropf : Today’s consumers want all aspects

of their lives to be in tune with the environment, but are also

looking for products that do not compromise on performance.

There is a growing market demand for environmentally friendly

but high-performance make-up products presented in packaging

adapted to these new environmental constraints.As a

result, for those looking for an alternative to plastic, wooden

eyeliners appear to be the answer.

How do you respond to this change?

Barbara Bauer-Kropf : Our latest creation «Perfect» is asoft

eyeliner that combines high-performance formulas with this technology

called «InnovatedWood». For this whole new generation of

wooden cosmetic pencils, the plastic part is replaced by a wood

originating from this very technology. This reduces the amount of

plastic per pen by up to 70% and at the same time guarantees

the required high standard of performance.So, for the first time

in the industry, we are offering an ultra-durable, ultra-soft eyeliner

packaged in an all-natural wooden pencil.

What is the secret behind this new wooden barrel?

Barbara Bauer-Kropf : This so-called «InnovatedWood»

technology makes wood airtight thanks to a natural and biodegradable

high-tech refinement. This technology has overcome

the challenge posed by wood, which is after allan organic

material unable to store liquid substances. With this new approach,

the wood is completely impervious to all our aproved

high-performance textures.

» THE PERFECT PEN

WILL WRITE A NEW

CHAPTER IN THE AREA OF

SUSTAINABILITY PAIRED WITH

PERFORMANCE. AN ABSOLUTE

SALES DRIVER! «

The protective cap for the pencils is also special?

Barbara Bauer-Kropf : This is a new, highly effective locking

technology that prevents the cap from falling off the pencil and

ensures that the texture inside remains soft and smooth. The

new cap adapts very well to the wood to ensure the re- quired

airtight seal. It cannot accidentally fall off in a make-up bag or a

handbag. You see, just perfect in every way!

This innovation is only one aspect of Schwan Cosmetics`

environmental development strategy?

Barbara Bauer-Kropf : Yes, this flagship project is one of the

first steps in our sustainability strategy running to 2025. Our

commitment is to reduce the amount of virgin plastic used in

our products by 50%. This new achievement is also part of our

purpose «Mindful Beauty» which aims to provide consumers with

sustainable, high-performance solutions.



NEWS MAGAZINE

TRADE SHOWS, CHINA IS

ON THE ROAD AGAIN!

SCHWAN COSMETICS AT

CHINA BEAUTY EXPO,

THE REPORT…..

At the close of the first half of 2021, few trade shows in the

world were open to the public. China Beauty Expo was one

of them and Schwan Cosmetics was there! The aim was

to present the new formulas developed especially for the

Chinese market.

Interview with Leroy Lee, Regional President Asia-Pacific,

who gives us an update on the Group’s presence in Asia.

Could you please start by outlining Schwan Cosmetics’

presence and strategy in the region?

Leroy Lee : Schwan Cosmetics actually began to establish

itselfin the region 20 years ago. Our factory located in Tianjin

was established in 2002 and started operations in 2003.

TIANJIN SCHWAN COSMETICS

AT A GLANCE

Size: more than 6,000m2

Employees: about 80 employees

One stop shopping: inhouse

capabilities from injection molding,

bulk production and filling, to decoration

and secondary packaging

Annual capacity: 35 million units

The plant has served as our manufacturing base to meet the

requirements of the world’s leading brands in this region

(e.g. Schwan Cosmetics is the main supplier of eyeliner to

India) with its state-of-the-art technology in make-up pencil

production. It is worth nothing that we now have a local

development function that focuses on and develops innovative

products suiting the needs of consumers in the area.

LEROY LEE

Regional President Asia

What is your strategy for China?

Leroy Lee : As I told you, we have been active in this region

for over 20 years. And we have set up new production

capabilities to specially target China, clearly the largest

market in Asia-Pacific. As you know, China has remained a

very dynamic market and has suffered the least from the

Covid19 pandemic. Moreover, make-up is the only segment

here that is experiencing considerable growth. When

you add to that, the fact that big international brands are

also focusing on the Chinese market and need partners

with innovative ideas and local production capabilities

to enter it, you can see why our presence is key. For this

market, we will provide local to local solutions with such

innovations developed out of full local consumer insights

and local supply chains.

What makes your production site in Tianjin so special?

Leroy Lee : In Tianjin, we supply all of Schwan Cosmetics’

products (eyes, eyebrows, lips, face) and we handle

product registration, logistics and production. We supply

mechanical pencils, lipsticks with a wide range of formulations

and packaging options as well as liquid liners &

powders (Dip-in). Last year we invested signficantly to increase

our capabilities, particularly for mechanical pencil

capability. Our Tianjin plant has been building up in-house

capabilities as a full solution provider from injection, bulk

production, filling, to decoration and secondary packing.

Did you feel the effects of the Covid19 pandemic like

everywhere else in the world?

Leroy Lee : With a drop in sales of between 20-25%,

the impact of the pandemic was severe in the Asia-Pacific

region. Some key customers even experienced a 30-50%

drop in sales. India and Southeast Asia were the most

severely affected and whilst Korea and Japan suffered

less, they have been slow to recover. Luckily, China was

the least affected region.

China Beauty Expo: an opportunity to showcase innovations.

What are the main trends in this Asia-Pacific region?

Leroy Lee : In APAC there is no singular trend that applies

to the whole region. Each sub region has different consumer

needs and therefore has developed its own trend.

Northern Asia with Korea and Japan create the globally

popular K-beauty and J-beauty trends, which lean towards

natural make-up with a very sophisticated and sensorial

product experience. China has started to have its own

trends, especially when it comes to different color selections

in comparison to the others, and have a preference towards

fresh and moisturized textures. On the other hand, South East

Asia and India are still adopting quite western market trends

such as matte-finish, long-lasting, and high pigmentations.

This year was a first for Schwan Cosmetics as an exhibitor

at China Beauty Expo... What was the objective?

Leroy Lee : First of all, we wanted to present our entire range

of products and services. Following major investments in

China in more modern production lines and facilities, it seemed

also relevant to put forward our production capability

as well as our flexibility and agility in providing high-quality

ODM solutions. At our stand innovations for both the international

and local market were showcased.

Was there an opportunity to participate digitally?

Leroy Lee : That’s right. Due to the pandemic, the exhibition

was mostly open to domestic visitors but we also offered our

«Digital Campus», a link to a new virtual showroom.

This enabled visitors from other parts of the world to discover,

at any time, our innovations presented at the fair. In addition,

we wanted to show first-hand that after the transformation of

our production facilities in the Asia-Pacific region, our ODM

solutions had become flexible and timely.



NEWS MAGAZINE

TIME TO GET INSPIRED!

Our new digital on-demand platform grows continuously

and takes you on a journey to our latest innovations,

industry trends and boosts your experience

beyond product presentation.

Contact our sales team to register for our

DIGITAL CAMPUS experience.

DISCOVER

OUR

NEW PRODUCT

ROOMS!