P&G closes on-line cosmetics business

Related tags Procter & gamble Cosmetics Personal care

Proctor & Gamble has announced that its on-line cosmetics
business, Reflect.com has been closed down. The decision comes
after six years in business, during which time the predicted retail
dot.com never quite lived up to expectations for the company,
reports Simon Pitman.

P&G's​ on-line retail division lasted far longer than many of its other counterparts, which came and went within months of dot.com bubble bursting, but now, after an investment that company executives estimate to have cost $60 million, the wires have finally been pulled for good.

Back in 1999 Reflect.com was conceived as a means of selling cosmetic products directly to customers, giving them the opportunity to customize product color, packaging and delivery according the consumers exacting requirements.

Last week company spokesperson Cheryl Hugdins told the Cincinnati Enquirer the that the foray into on-line cosmetics sales had been a learning experience, and that some of that experience would now be channeled into its beauty care brands, including Pantene, Cover Girl and Olay.

Based in Ohio, the company took final orders on Monday, June 13, with the closure leading to the loss of some 45 jobs, chiefly concerned with processing orders and administrative duties.

Ginger Kent, CEO of Reflect.com from December 1999 to May 2002 told the newspaper: "It was very much forward thinking. Maybe it was too far ahead of its time, who knows?"

Reflect.com informed its customers by email ten days ago that the operation was due to close: "As a subsidiary of Procter & Gamble, the company has decided it is not currently in its long term strategic goals to continue the Reflect business and brand,"​ the email statement read.

The website now contains a small note thanking customers for their support over the years and a link to the P&G website.

The closure of the company's on-line business does not tie in with the many success stories reported by many leading cosmetic and toiletry companies currently.

One of the most noteworthy of late has been the Body Shop, which recently broke out a run of loss-making results, due in part to a strong performance from its newly introduced on-line retail services.

Likewise, industry experts also believe that sales of specific cosmetic and personal goods, particularly those at the premium end, are likely to drive future internet sales. Indeed, in the run-up to Christmas 2004, Britney Spear's Curious fragrance proved to be amazon.com's top-selling product.

"There are some big discounts to be enjoyed purchasing fragrance online and brand loyalty is higher in this sector than others, so consumers can easily benefit from cheaper prices buying brands,"​ said Claire Briney, head of Euromonitor's​ global cosmetics and toiletries research programme.

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