Schwan Cosmetics News Magazine

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!