As the world of cosmetics outsourcing is undergoing profound transformation with a clear concentration on the global level and a massive demand for turnkey products, MS Beautilab — the Beauty Division of the Swiss group Marvinpac — has initiated a historic transformation process under the leadership of Olivier Salaun, the new group CEO, and a new executive committee, and of a board of directors composed of historic Managers and representatives of family shareholders. “We aim to outperform the strong growth expected for outsourcing by tripling our cosmetics turnover by 2025. By then, skincare and makeup should both account for half of our sales,” explains Olivier Salaun.

Massive investments

The Marvinpac Group was founded as Strand Cosmetics Europe, a French Lyon-based company specialized in high-end makeup and skincare formulation and production, and Marvinpac, a Swiss specialist of packaging and co-packing, gradually got closer between 2017 and 2020. It is divided into two main Divisions: Marvinpac, for food & beverages, and MS Beautilab, for makeup & skincare – they represent 57% and 43% of the group’s business, respectively. The group counts three production sites: one in the suburbs of Lyon, France, one in Switzerland, near Fribourg, and one in the Czech Republic, near Prague, mainly specialized in packaging.

We have huge assets, for example we succeeded in diversifying our products by adding skincare to makeup, and we boast a very complementary industrial tool in line with market expectations. We are viewed as a reliable player, but we need to enhance our innovation capacities and geographical presence, because we are still too focused on European markets,” says Olivier Salaun.

The Beauty Division’s ambitious growth targets will be achieved with considerable investments intended to transform MS Beautilab’s value proposition: the company wants to boost its full-service offering for premium, prestige, and luxury brands and offer more innovations on the most growth-driving segments, like anhydrous cosmetics and natural formulas.

Investments will focus in particular on strong growth segments and new segments in the group’s portfolio. “Our expertise will also help us develop anhydrous skincare products with disruptive ambitions in this sector,” adds the CEO. “We will strengthen our capacities in many categories. In certain cases, like powders, we may have to plan an acquisition or an industrial partnership,” he says.

All in all, the group’s investments over the next five years should reach several tens million euros, the majority of which will be allocated to the MS Beautilab cosmetics division.

Heading for North America and Asia

If, right now, 90% of MS Beautilab’s sales are achieved in Europe, the idea is to soon enter new markets in North America and Asia. “We want our turnover outside Europe to reach 25% to 33% by 2025,” announces Olivier Salaun. This way, about a third of the group’s sales would be achieved in France and Switzerland, another third in other European countries, and the last third in Asia and North America.

To make sure this objective is fulfilled, MS Beautilab has planned to open a sales office in the USA in 2021, with a presence on both the East and West Coasts, and to create a development laboratory focused on makeup in California as soon as late 2022.

As for China and Asia, where the company already offers bulk products, they will focus on skincare, in particular for major local and international brands. “We aim to strengthen our presence in Asia, so we have started discussions with various potential partners to have our formulas packed locally.

The company intends to rely on its capacity to offer brands made-in-France and made-in-Switzerland skincare and makeup products – these two origins are very popular in the premium, prestige, and luxury segments. As regards CSR, a strategic roadmap is being finalized with the aim to start implementing it from 2022 in the continuity of our EcoVadis certifications (Gold in Switzerland, and Silver in France and the Czech Republic.)

Innovation and full service

Just like many partners of cosmetics brands, MS Beautilab saw its business considerably change in just a few years, with turnkey finished products now accounting for the main part of the business. According to Olivier Salaun, this change of paradigm involves “thoroughly reorganizing our working methods and customer relationship”.

The company aims to provide more and more customers, both major international brands and emerging indie brands, with a full-service offering, by gradually managing a more significant part of the value chain and getting to the all-in-one phase, the objective being to offer not only a formula in a primary pack, but also a comprehensive marketing proposition including both product and pack design and a marketing strategy, in synergy with the expertise and historical know-how of the Marvinpac entity.

MS Beautilab can rely on a strong scientific approach thanks to extensive knowledge as regards the skin, sensoriality and textures. Our work on naturalness provides a unique skincare offering, and we also boast rare expertise in pigments,” emphasizes Camille Schmit Deroin, VP Skincare VP.

To improve the customer experience in connection with the Make Up and Skin care Business Units, a "cosmetics task force and resources dedicated to Marketing and Innovation" have been created and strengthened within the Group, specifies Jean-Marc Tuffal, VP Marketing & VP innovation.

We need to listen and be able to anticipate needs. We aim to be positioned as a reference made-in-France makeup player, thanks to a strong value proposition and an integrated value chain. With our high-end, made-in-France and made-in-Switzerland skincare offering, we are one of the rare players to be present on both markets,” concludes Olivier Salaun.