MB Insights: The Era of Efficiency: How is Automation Reshaping Supply Chains?

Content Type: Case Study

Case Study, Consumer, Industry, Insight, Retail, Technology

Posted on 24 April 2023

From a global pandemic to rising geopolitical tensions, the supply chain industry has faced numerous challenges, and as we edge further into 2023, the sector finds itself at a crossroads.

The need for speed, strategy, and resilience has rapidly fueled innovation, and more businesses are leveraging the latest in automation technology to make faster, smarter decisions with more accuracy than ever before.

But what exactly is Supply Chain automation? And where is it leading us?

MacGregor Black explores the latest advancements in supply chain automation, and which key technologies are reshaping the industry’s future.

What is Automation?

Over the years, the main goal of the supply chain industry has remained unchanged. To deliver products to the right place, at the right time. Yet, to thrive in today’s competitive economy, a business must ensure constant availability, rapid delivery time, and the mailability to overcome unexpected changes.

This is where automation steps in.

Automation describes the use of technology to complete tasks that would traditionally require physical human interaction. Processes that would usually cost a gross amount of time, money, and labour can now be completed quickly and effectively using a combination of artificial intelligence and advanced robotics.

From Human Hands to Robotic Arms

Evolving from their first appearance in sci-fi movies into today’s supply chains, the use of robotics in the warehouse has become increasingly popular in recent years. Businesses in all corners of the world are transforming the way they manage their supply chains by investing in advanced technologies such as autonomous mobile robots, collaborative robots and even drones, in the pursuit of efficiency.

Autonomous Mobile Robots (AMR)

Autonomous mobile robots (AMR) are self-guided machines that, using a combination of sensors and algorithms, navigate safely around the warehouse moving goods from one place to another, locate and retrieve items and even pick, pack, and ship products at ultra speed. As the demand for faster and more efficient supply chain processes grows, AMRs are becoming an increasingly attractive solution for businesses looking to scale up faster, increase their operational efficiency, and reduce labour costs in this post-pandemic economy (as after all, robots can’t catch a virus…).

According to this year’s Global Autonomous Mobile Robots Market Report, in 2022, the market for autonomous mobile robots totalled at $3.14 million US dollars. A figure that is predicted to rise as high as $10.97 million US dollars by 2030. By taking over potentially dangerous jobs from humans, AMRs allow for cheaper labour costs, greater workforce adaptability, improved safety standards, and reduced risks. Nestle, DHL and Walmart are among the many high-profile brands that are already investing in AMR’s, with all three companies having rolled out driverless forklifts across their warehouses in 2022.

However, while progress is being made, “there are still a number of natural factors at play,” States Mark Lancaster, MacGregor Black’s Supply Chain & Logistics specialist.

“Whilst AMRs are designed to operate autonomously, they do still pose a risk to human workers if not properly programmed or maintained. As well as investing in skilled automation specialists to safely maintain the equipment, employers may also need to consider re-training existing workers on how to interact with AMRs in order to avoid accidents and injuries.”

Collaborative Robots

Unlike AMRs, Collaborative Robots (also referred to as Cobots) work along-side humans, rather than replacing them. Designed to be safe, simple to use and adaptable to varied processes, Cobots assist humans in performing repetitive or dangerous tasks to speed up production and avoid potential risks. UK retailer, Curry’s recently revealed its plans to invest £250,000 in Cobots at its facility in Newark, which will fund a fleet of robotic exoskeletons designed to give employees at the retailer’s logistics partner, GXO, relief from at least ten tones of weight throughout a typical working shift.

Another example of a brand investing in Cobots is the multinational information technology company, HP. In 2017, the Silicon Valley based brand opened a robotics manufacturing facility in Singapore; the country ranked second in the world for the number of robots deployed for every 10,000 employees. The facility utilises intelligent robotic arms that precisely emulate a human hand’s intricate movements in order to make a core component in HP’s commercial printers. The arm’s dexterity allows it to take on complex tasks, with acute precision, for 24 hours a day. HP said, since installing its robotics manufacturing lines in Singapore, production costs have dropped by 20%. A quite staggering saving in a world currently grappling with the lingering effects of the pandemic, high inflation, and geopolitical tensions.

However, replicating HP’s harmonious relationship with robotics isn’t quite as simple as it sounds. A successful shift into automation requires an immense, up-front capital investment, not only in technology but in the skills of the workforce. At HP, they have invested heavily in upskilling their employees, who verify parts rejected by the robots on the manufacturing line to help teach the machine and perfect the algorithm. Singapore itself has also long identified advanced manufacturing as a priority, with the country even introducing incentives such as tax breaks for highly automated factories, research partnerships with universities and subsided programmes aimed at retraining and upskilling workers.

Drones

According to an analysis of U.S. Census Bureau data, the average warehouse worker wastes nearly seven weeks per year in unnecessary motion, accounting for more than $4.3 billion US dollars in labour. A statistic that many businesses are now able to disregard following the introduction of intelligent autonomous drones into their supply chain.

Without the need for ladders or scaffolding, and in turn without the resulting risks, drones are used to track, transport and audit goods, with the data being stored digitally on a computer-based software programme. Drones are mainly used to help with inventory management and can be found flying around the warehouse scanning bar codes on products, auditing inventory levels, and comparing the data it collects with the data stored digitally. Swedish retail giant, IKEA is among the latest brands exploring technological solutions, revealing it has expanded its autonomous fleet of drones to 100 across 16 locations in Belgium, Croatia, Slovenia, Germany, Italy, the Netherlands, and Switzerland.

Developed in partnership with Zurch-based startup, Verity, IKEA’s drones are deployed during non-operational hours, working to ensure stock levels are accurate, and offering real-time analytics. Introducing drones and other autonomous technologies in the warehouse may seem nerving for some, but “Introducing drones and other advanced tools — for example, robots for picking up goods — is a genuine win-win for everybody.” States, Tolga Öncu of Dutch IKEA holding company INGKA.

“It improves our co-workers’ well-being, lowers operational costs and allows us to become more affordable and convenient for our customers.” 

Artificial Intelligence (AI)

Typical supply chain management is labour intensive, time consuming and prone to human error, which is why many businesses are utilising artificial intelligence in their supply chains.

Artificial intelligence is used in supply chains to analyse data, track the flow of goods, and centralise information sharing with suppliers, manufacturers, distributors, and retailers. The main goal being to streamline the entire end-to-end supply chain process and routinely look for ways to improve efficiency.

MacGregor Black’s Engineering & Operations specialist, Rob Blackburn explains that “AI tightly links together the business value chain, from manufacturing to the end consumer, and accurately forecasts customer demands to produce real-time analytics on a company’s entire supply chain performance.”

“The AI detects data patterns and recommends improvements such as, shorter walking times and smarter inventory positioning. Over time, the AI will even learn from its environment and perfect its own algorithm to ensure the warehouse is performing to maximum efficiency.”

One of the most beneficial features of AI is its ability to trigger automated responses to pre-defined scenarios. By communicating with the various internal data systems, AMRs and Cobots deployed at the warehouse, the AI can automatically respond to situations like a depletion in stock, a rise in market prices or a shift in consumer demand. For example, should the business run out of stock, their AI can automatically order more. Or should the market value of a product or raw material change, the AI can produce a detailed report advising the business on future procurement strategies.

This level of data-driven supply chain management reduces costs, mitigates risks, improves quality control, increases operational efficiency, and allows businesses to make informed analytical decisions, which in turn, improves the experience for the end customer.

It’s clear to see that automation has the potential to revolutionise the way warehouses operate. The latest developments in supply chain technology are creating exciting opportunities for businesses all over the world, which has raised a question in many of our minds, where does that leave humans? According to a report led by Oxford Economics, if the current rate of automation continues, 11.20 million manufacturing jobs will be lost to automation by 2030. Undeniably, certain occupations will become extinct in the battle between automation and tradition, however humans haven’t been totally eliminated from the race just yet. A report by the BBC suggested that the rise in automation will also boost the economy, predicting that 7.2 million specialist jobs will be created by 2037.

Automation is unarguably transforming the way businesses manage their supply chains. And as these technologies continue to evolve, the companies that will thrive will be those that are embracing the change. By taking full advantage of artificial intelligence and advanced robotics like drones, Cobots and AMRs, employers are able to maximise efficiency, improve safety and cut overall costs. However, automation technology requires immense planning and consideration, and if we’ve learned anything from sci-fi movie culture, this isn’t always the case…

If you’d like to speak with our dedicated team of Engineering & Supply Chain consultants, get in touch today via hello@macgregorblack.com or via +44 (0)191 691 1949.

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Premium Spirits Brand

We were exclusively appointed by our client as they looked to expand their London On-Trade team, whilst their internal talent team actively recruiting the role themselves. The position was responsible for managing and growing premium account across London but it was very important that the person appointed understood the brand and was able to tell its unique story.

This was a very specific search in terms of individual characteristics, experience and the ‘story teller’ passion that was required. Having first conducted in depth candidate pre-screens and interviews to understand potential fit with our client along with the correct knowledge and background, we we’re able appoint a fantastic candidate, within a very short timeframe. The successful candidate faced tough competition from several other candidates in process, coming from the companies own direct applications.

They have since been a fantastic addition to the team, in terms of fitting in with the company culture and representing the brand in a way that was desired by our client.

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Case Study, Consumer, Industry, Insight

Posted on 19 January 2023

With record numbers of companies entering administration, unseen since the 2008 financial crisis, coupled with government intervention in the form of furlough schemes and business support grants, how and why did some companies experience record levels of growth during Covid-19? And what can we expect to see next?

As many business leaders can attest, the key to a successful and sustainable model is a solid set of foundations; with recent events testing one such foundation above all else…the ability to adapt to change.

When the global pandemic first surfaced, very few could have predicted the scale, duration, and lasting impact it would leave on us. Many lost livelihoods, businesses we’re starved of cash, and new health & safety procedures we’re being designed around the clock.

Now, three years on, some could argue the economy is beginning to settle into the ‘new normal’. Brands are once again evolving to accommodate the latest wave of consumer expectations, confidence is on the up, and the dust is beginning to settle in the battle between e-tail and retail.

But what exactly are consumers expecting from brands? Why did some thrive during the pandemic? And what does the ‘new normal’ even look like?

MacGregor Black takes a closer look at how companies have successfully adapted their business models and are continuing to do so in a post-pandemic economy.

From Surviving to Thriving

Conscious Consumerism  

At the height of the pandemic, communities worldwide rallied together, key workers we’re celebrated as national heroes, and in true wartime fashion, companies in all corners of the globe rapidly converted their operations in a bid to cover us head to toe in PPE.

Today, although the dust may well have settled and we no longer find ourselves staring down the barrel of a global epidemic, the value of acting with an increased level of consciousness has not been lost on the every-day consumer…

Studies show that one such pre-pandemic trend is once again blossoming. Consumers are once again favouring brands that are conscious of their social, environmental, and economic impact. Research conducted by global professional services company, Accenture, found that a whopping 72% of shoppers are focusing more on limiting food waste, 68% are shopping more health-consciously and 66% of people are actively making more sustainable choices when purchasing, and will continue to do so.

Looking to stay ahead of this sudden moral shift in consumer behaviour, many brands have re-assed how their products are made, packaged, marketed, distributed, and discarded of. With the aim of reducing any negative impacts at each stage of the process. Such change has directly led to organisations making wholesale changes such as, sourcing more energy efficient suppliers, reducing non-recyclable materials throughout their product lifestyle, investing in renewable energy sources, partnering with charitable causes, and setting ambitious sustainability targets that will no doubt, pave the way for numerous additional changes in the future.

MacGregor Black’s Specialist Operations Consultant, Rob Blackburn, comments:

“The negative impact that brands have on the planet has been a priority for most businesses since covid, particularly in the food industry, and I’d say there’s definitely been an organisational shift in many companies to accommodate that.

‘In the past, Health, Safety and Environmental (HSE) was often grouped together into the same job function, but now, with there being such a huge focus on sustainability, I’m supporting more and more businesses with splitting ‘Environmental’ into its own separate function; and I’m souring more specialist talent, with specific knowledge into environmentally focused practices.”

“The same can be said for the Beauty industry,” Comments, Kriisti Atherton, MacGregor Black’s Health & Beauty Specialist.

“As consumers demand more from the brands they love, we see more campaigns like the ‘Clean Label Movement’ pop up. In response, companies are looking to make major environmental, sustainable, and ethical changes to their products, and they need the skills to back it up! Right now, I’m working with various beauty clients to source passionate well-networked candidates who have experience sourcing clean ingredients, working within B Corp Certified businesses, and who have experience building relationships with global ethical partners.”

Health & Safety

Executing health and safety measures has long been a priority in the workplace. Yet, the pandemic unarguably forced companies to act with a level of urgency unlike any other. For some businesses, the pandemic unmasked a number of underlying flaws in their existing practices; acting as a catalyst for change and forcing companies to re-think their future business models.

Important topics around mental health & wellbeing, hybrid working, the need for effective childcare, sufficient sick pay, and reasonable adjustments have all been widely spotlighted by employees since the COVID-19 pandemic.

Jack Dennerlein, PhD, adjunct professor of Ergonomics and Safety at the Harvard T.H. Chan School of Public Health commented, “The pandemic has brought topics like well-being to the forefront of the conversation. Now, all of a sudden, people realise the impact work has on mental health, and other aspects of well-being, through impacts like reliance on childcare and disparities in work. The conversation has changed.” 

Having noted the appreciation from staff and in some cases, an uplift in productivity, many businesses have chosen to stick with their ‘pandemic’ benefits; opting to continue offering additional support such as, hybrid working, free 1-2-1 counselling sessions, regular manager well-being calls, revised sick pay policies and regular occupational health training. Chevron, one of the world’s leading energy companies, has continued to run what they refer to as, The Employee Assistance and WorkLife Services Program, which offers their employees free sessions with licensed counsellors to help cope with any challenges they may face in the workplace, or at home. This is something Chevron will continue to offer staff now, and in the future.

Some businesses hoped to reduce stress and anxiety by offering their employees benefits such as, mental health webinars or free subscriptions to health and wellness apps. Whilst this may be useful and even greatly appreciated by some, it could also come across as slightly dismissive. If employees’ workloads are too excessive, management is lacking in compassion, or they’re unable to support a work-life balance, how effective will a mandatory mental health webinar really be? Perhaps an opportunity has been missed here to really address the underlying issues? More than just raising awareness and promoting an understanding culture, the organisations that are flourishing in today’s post-pandemic world are those that are ensuring line managers are fully trained, are listening to their employees, and have a thorough understanding of what good mental health support looks like, on a case-by-case basis.

“According to a survey of 1,001 Americans, when asked ‘Have you ever bought a product or service online that you found out about from an influencer?’, over a whopping 52% said yes! “

– Digital Marketing Specialists, Fractl and BuzzStream,

Diving Deep into Digital

Without a doubt, the post-pandemic world is a digital one.

As retailers closed their doors and physical interaction was kept to a ‘Castaway like’ minimum, the digital world proved to be not just a lifeline for many businesses, but a license to succeed. Brands that not only embraced but adapted and invested in this digital transformation thrived. Even after retailers opened their doors, mass vaccinations were introduced and the world began to re-settle into a somewhat ‘normal’ existence, the digital boom has showed no signs of slowing down. In fact, it’s estimated that digital media accounted for 59% of all global ad spend in 2020.

Similar to the Health and Safety sector, the push towards digital transformation forced many organisations to pay closer attention to their digital and technology investments. In a pre-pandemic world, digital campaigns were often mere brand marketing tools, used simply to bolster impressions and raise overall awareness. Whereas today, after a period of relying solely on tech to engage with customers, many digital campaigns now feed customers directly into specially designed sales and ecommerce mechanisms; through an integrated and cohesive sales funnel that allows companies to closely measure their ROI. For example, in 2021, Shopify began using QR codes dubbed, ‘Shopcodes’ that when scanned with their phones, directed customers to specific products, tracked conversions, and allowed them to retarget customers for future sales in an entirely digital environment.

MacGregor Black’s Specialist Ecommerce Consultant, Qasim Khan, comments:

“With digital campaigns now driving an increased share of sales since the pandemic, the need to track, measure and tailor these campaigns has become an absolute necessity. In my market, I’m seeing more of my Fashion & Luxury clients invest in UX/UI and Performance Marketing roles as a result.

There’s also been a large increase in the number of brands launching and developing their marketplace presence. Which is another accelerant for the need to hire experienced, analytically minded, and results orientated professionals, with specific skillsets such as Zalando or Amazon.”

Another digital strategy that many businesses saw exponential growth through is affiliate marketing. With millions confined to their homes, unable to work, travel, or socialise. Many turned to, you guessed it… social media. The undisputed home of affiliate marketing. And an environment that provided both brands and affiliates with the perfect recipe for growth.

Many brands recognised this increase in social media activity, and when coupled with an eCommerce boom, developed purpose-built strategies to capitalise, financially rewarding customer to customer interactions, UGC production, web traffic, and sales. When we add to that the emergence of ‘at home’ products such as high-end coffee machines, air fryers, and pizza ovens, customers are continually searching for an elevated experience without ever leaving the house. And who better to influence them, than… the influencers.

Brands have now not only fine-tuned the quality of their social campaigns, but have also increased their partnerships with influencers, and micro-influencers, that are able to offer them a direct route to their target audience. According to a survey of 1,001 Americans, conducted by digital marketing specialists, Fractl and BuzzStream, when asked ‘Have you ever bought a product or service online that you found out about from an influencer?’, over a whopping 52% said yes! Companies can work with influencers to promote all sorts of products, from clothes & makeup, to cleaning products & home organisation accessories. By simply clicking a link on their favourite influencer’s page, customers are sent straight to the product purchase page, where they can often buy it using a discount code from the influencer, who usually receives a small sponsorship payment each time someone purchases the product using their link.

The biggest downfall to online shopping is of course, the inability to physically interact the item. Making it difficult to get a sense of whether or not it’s the right product. This is one of the key opportunities for Augmented Reality to act as a reliable substitute for testing out and trying on items in the store. For example, social media brand Snapchat has partnered with various fashion and retail companies to offer their users AR creations that allow customers to try on products via their app. Their most recent partnership will see thousands of Amazon’s top-selling eyewear virtually don the faces of Snapchat users across the world. If looking to purchase any of the glasses, users will then be directed to the ‘Amazon Fashion’ store directly form the Snapchat app.

Snapchat explained:

“More customers are turning to mobile shopping – in the past year, Amazon Fashion customers ordered more than one billion fashion items on mobile devices. The growing Snapchat community of 363M daily active users now have access to Amazon’s popular eyewear brands, including Maui Jim, Persol, Oakley, and Costa Del Mar, among others.”

However, on the flip side to the fashion coin, resale platforms like Depop, Preworn and Preloved, that sell second-hand clothes have also prospered since the Covid-19 pandemic, as a result of the spike in conscious consumerism mentioned earlier.

Bricks and Mortuary?

Despite the unarguable window of opportunity that digital devices have presented businesses with since covid-19, some of the world’s most popular global brands like Apple, Macy’s and Walmart are still continuing to advocate for Bricks & Mortar retail. But, if stores want to engage with their customers on a physical level, does shopping needs to evolve with the times?

Today, if a customer visits a store, they expect an experience that outperforms the convenience of shopping online. And so, the ‘Experiential boom’ begins.

Whilst not all concepts are brand new, shop-in-shop for example (where a brand or retailer opens its own smaller retail space inside another retailer’s store) is certainly on the rise. In many cases, with shop-in-shop partnerships, there will be a general cross over between the customer base of the two brands involved.

In February 2021, just as the pandemic was beginning to settle, and stores we’re attempting to lure us through their doors once again, US retailer Target unveiled the first ‘Apple at Target shop-in-shop’. The partnership provided the tech giant with a new route to market, as well as elevating Target’s status as a prime destination for electronics and accessories. A win-win. Target have also extended their existing shop-in-shop partnership with UltaBeauty, adding 250 of the beauty brand’s pop-up stores in national Target locations.

Another company embracing beauty concessions is, Kohl’s, who have announced a huge shop-in-shop programme with beauty retailer, Sephora, which will see 850 mini-Sephora stores in Kohl’s stores this year. Furthermore, Walmart introduced their own shop-in-shop concept, having partnered with Claire’s in 2018, which saw the retailer’s accessories and jewellery stocked in more than 250,00 Walmart stores. Not to mention, a strategic partnership ahead of the recent holiday period also saw high-end US department store, Macy’s, partner with WHP Global to bring Toy’s R Us stores to every US Macy’s location throughout the months of July- October 2022; making things much easier for exhausted parents to shop for both quality clothes and noisy toys all in one place.

In the hopes of also reinventing their customer’s retail experience, some brands have invested further in alternative experiential marketing methods. Similar to ‘shop-in-shop’ and sometimes referred to as event marketing, or engagement marketing, experiential marketing is a way for brands to physically interact with their customers through a specific experience. For example, Lululemon not only sells trendy yoga attire, but also offers customers free, drop-in yoga and fitness classes in almost every store. Luxury department store, Nordstrom even introduced a Tonal exercise machine in their stores in 2021, which customers can use for free with a full demo included.

As each example above demonstrates, the world is a multifaceted, reactive place, moulded only by the ever-evolving economy. The margin for success and failure is often razor thin, and after facing almost three years of uncertainty and the ability to conduct business as usual, brands in all corners of the globe have put their malleability to the test; making radical changes in the hopes of catering to a list of post-pandemic demands. From revised working from home policies to detailed and integrated digital campaigns, the businesses that were able to make the necessary changes not only survived… but thrived.

If you’d like to speak to our team of management and executive talent partners, get in touch today via hello@macgregorblack.com or +191 691 1949

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Advertising, Case Study, Consumer, Cosmetics, Fashion, Health & Beauty, Industry, Insight, Marketing, Retail, Social Media, Technology

Posted on 27 October 2022

When social media first popped up in the late 90’s, none of us could have predicted the astronomical growth it would undergo, nor the influence it would ultimately hold over our lives.

What began as a way to simply connect with friends, has since become one of the most powerful global platforms of our time, able to reach millions of targeted people in milliseconds and influence the way we shop, vote, and even feel. Evolving far beyond your typical networking tool, social media has opened up opportunities for not only the every-day-scroller, but for businesses also.

But is the way we use social media set to change? And have brands had enough?

MacGregor Black takes a closer look at social media, and why some brands are taking a permanent break from it.

Social Media vs… The Battle of the Brands

With Facebook alone connecting 2.11 billion users all over the globe, it’s no surprise that social media has come to play an integral part in many of our lives. But with such scale, how is it possible to monitor and control 2.11billion individual narratives? The simple answer is… it isn’t.

With such publicity, comes scrutiny. And as platforms such as Facebook continue to embed themselves deeper into our society, many users are beginning to highlight some of their potential negative effects. One particular issue that continues to dominate the conversation, is social media’s relationship with our mental health.

In recent years, research has provided us with a plentiful evidence pool linking social media usage with a number of mental health issues like depression, anxiety, and body dysmorphia. According to a 2022 Healthline study of 1,042 U.S citizens, 29% of participants of all age groups felt they needed to take regular social media breaks, in order to feel a benefit to their mental health. This number increased to a shocking 46% amongst 15–24-year-olds.

So, what can be done about this, and who’s responsibility is it to take control?

Lush Cosmetics

Noting the negative effects that social media was having on many of its customers, global cosmetics company, Lush, took a stand; and in 2021, decided to cut ties with online platforms Instagram, TikTok, Snapchat and Facebook.

The British retailer released a statement to accompany their decision:

“From 26th November 2021, the global Lush brand will be turning its back on Instagram, Facebook, TikTok and Snapchat, until the platforms take action to provide a safer environment for users. This policy is rolling out across all the 48 countries where Lush operates. In the same way that evidence against climate change was ignored and belittled for decades, concerns about the serious effects of social media are going largely ignored now. Lush is taking matters into its own hands and addressing the issues now, not waiting around until others believe in the problem before changing its own behaviour.” 

Tesla Motors & SpaceX

Pre-dating Lush’s decision by almost three years, in March 2018, tech billionaire Elon Musk joined the race against social media; deliberately deleting both Tesla’s and SpaceX’s Facebook business pages.

Having regularly aired his opinion publicly, it is widely known that Elon Musk distrusts the way Facebook handles their consumer data. The decision then came to pull both his business pages, following a tragically historic week for the social media company, one that still sits fresh in our memory. In 2018, the Cambridge Analytica scandal prompted a wave of mistrust against Facebook, which later gave rise to the #deletefacebook hashtag.

At the time of the scandal, WhatsApp Co-Founder, Brian Acton tweeted in protest, “it is time #deletefacebook”, in which Musk responded sarcastically, “What’s Facebook?”. The Silicon Valley entrepreneur then went on to tweet that he thought Tesla’s Facebook page was “lame”.

In a final act, Musk was challenged by Twitter users to delete Tesla’s and SpaceX’s pages, “if he really was ‘the man’”, and in typical form, Musk declared he would delete them immediately. Sure enough, in under 30 minutes both business pages were cut from Facebook, and the following media attention, combined with the Cambridge Analytica Scandal, caused Facebook’s stock to plunge 6%.

Elon Musk has since gained the reputation as the modern day ‘Robin-Hood’ of free speech, as in April of this year, the eccentric billionaire made another daring move. This time, against Twitter.

In an effort to force change, on April 14th of this year, Musk made a bid to buy the social networking site for $54.20 per share, putting one of the world’s richest people at the helm of one of the world’s most influential platforms. Musk declared that, should the deal go through, his first priority would be to crack down on data management. However, only weeks after Elon’s rather rambunctious offer, he sought to terminate the deal, citing concerns over the social media company’s use of bots on the platform, artificially inflating their user numbers. Claims which were later supported by a company whistle blower. Twitter has since sued Musk to follow through with the acquisition. The judge overseeing the case has given both parties until the 28th of October to close the deal or face a trial in November.

Bottega Veneta

In 2021, globally established fashion house, Bottega Veneta announced their own bold move to completely cut social media from their marketing strategy.

Creative Director, Daniel Lee, stated in an interview with The Guardian that, “there is a mood of playground bullying on social media which I don’t really like. I wanted to do something joyful instead… I don’t want to collude in an atmosphere that feels negative.” However, despite personal comments from Lee, the Bottega Veneta company refrained from releasing an official statement to explain their swift exit from social media. Leading fans to believe that perhaps this was the company’s latest strategic move in creating the ultimate luxury brand?

Kalyani Saha Chawla, former VP of Marketing & Communications at Dior believes luxury brands need to re-consider the fine balance between over-accessibility and exclusivity, quoting to Grazia UK that,

“luxury brands are diluting their image by using the same social mediums that every high street brand is utilising. Luxury stands for exclusivity, and if it’s all over Instagram and Twitter, it becomes too accessible, which might not resonate with a niche audience.”

A message that sat fittingly with Bottega Veneta’s social media departure, as it came less than a month after it unveiled its exclusive “Salon 01 Spring/Summer Show”, which was being secretly recorded at the time. Shortly after Bottega Veneta’s decision to ditch social, luxury apparel brand, Balenciaga quickly followed suit, wiping all of its content from Facebook, Instagram, and Twitter. Perhaps another strategic move with this decision also preceding the brand’s first haute couture show in over 50 years…

Answering the Burning Question… What Happened Next?

In today’s society, it’s near impossible to picture a global company succeeding without a social media presence, but alas…some of our favourite cosmetics companies, automotive developers and high-end fashion brands claim they are already paving the way to find a successful future without ‘the Gram’.

Lush Cosmetics

After announcing their departure from its social media channels in 2021, cosmetics brand Lush turned to creating what they felt would be, authentic, quality content on the company’s online site instead. At the time, the company released a statement assuring shoppers that, ‘there are plenty of other places to take a dip into the Lush world’, stating that customers could still engage with the brand through shops, events, through the customer care team and on other digital platforms like Lush Player, Lush.com and their Lush Labs app. However, it’s worth noting that some individual stores and Lush staff continued to be active on social media and the company even encouraged customers to continue using branded lush hashtags to promote their content organically. Meaning Lush would remain true to its anti-social media protest, whilst also still staying fresh on the screens of shoppers across the globe.

SpaceX & Tesla

Following Elon Musk’s bold decision to delete both SpaceX and Tesla’s business Facebook pages, the company went on the make an even bolder move in 2020, officially dissolving it’s entire PR department; dubbing it the first automaker to no longer engage with the press. When asked to comment on the move, the billionaire business magnate stated that he wouldn’t go back to having a PR department because he ‘doesn’t believe in manipulating public opinion,’. He responded to a twitter user that encouraged the reinstatement of the Tesla PR team, saying, ‘Other companies spend money on advertising & manipulating public opinion, Tesla focuses on the product. I trust the people.’

So, with a much-reduced social media presence and absolutely no PR staff, how does a multi-billion-dollar business like Tesla expect to stay ahead of the curve?

Well, the American clean energy company relies heavily on one of the most effective marketing strategies out there, word of mouth. Tesla runs a highly popular referral program that encourages customers to share their love for the brand with their friends and family. Tesla enthusiasts, and their referees can earn rewards like free supercharger miles and cash to spend on energy efficient products. Not only that, but the electric vehicle manufacturer also manages multiple customer forums, hosts a global ‘owners club’, and is regularly involved in giving back to the communities they operate in. All of which are great ways to establish a strong brand message without even so much as a ‘share’. However, it’s worth noting that Musk himself has been a driving force behind Tesla and SpaceX’s ongoing success. His loud, charismatic, and sometimes even controversial social media presence certainly draws enough attention to both brands…

Bottega Veneta

Founded in 1996 in Vicenza, Italy by Michele Taddei and Renzo Zengiaro, Bottega Veneta has since firmly established itself as a high-end, luxury fashion house. Their fine leather handbags and quality crafted accessories don the frames of wealthy style icons in all corners of the world, that no doubt, enjoy scrolling as much as the rest of us.

Which is precisely what Bottega Veneta was counting on…

Despite not posting on their business account anymore, Bottega Veneta lives on through the Instagram pages of their loyal customers, influencers, and external partnerships. Rather than coming directly from the brand, content like product launches, events, and brand promotions make the rounds mainly through organic, user-generated content. Which enhances the brand’s exclusive image and cuts out a huge chunk of their workload. So, in theory, they can kick back and reap the rewards as customers are naturally drawn to their brand.

A strategy in which Bottega Veneta took to heart as at the time, the luxury brand doubled down on its quarterly online magazine in what they hoped would offer, “more progressive and more thoughtful” content. A goal in which many say they have successfully achieved since then. 

MacGregor Black’s Global Head of Marketing, Mark Thursby, commented:

“I couldn’t agree more with Kalyani Saha Chawla, in that many Luxury brands sit in a precarious position. One that almost caused the demise of the iconic British Fashion Brand Burberry during the 1990’s, where high demand was met with ease of accessibility. And I believe social media is currently turbocharging just that, or the false impression that luxury products are easily accessible.

Social media is a great equaliser in that it grants the average user access to countless celebrity and influencer lifestyles, mixed in with our friends and family. However, when our feeds are excessively filled with luxury goods, this directly drives demand to a potentially dangerous level. Therefore, when accessibility meets it, in the form of ‘replica’ products, via short-term financing options such as fashion rental, or services such as Klarna, a brand can pass a point of which it’s presence in a market is too heavily saturated and it ceases being perceived as ‘luxury’.

The same theory applies across the board. From cars, to homes, to holidays, and even our own physical appearance. When social media creates the illusion that all of these brilliant products are easily attainable, and not just that, they’re owned by your neighbour, your best friend, and the people you went to school with, the potential to damage a person’s self-esteem can be severe.

Therefore, with brands withdrawing from social media it’ll be very interesting to see what impact that has in the long-term. Will losing the central voice of their brand, do the opposite of what they aim to achieve, and create a more customer-controlled brand image? Or will it dampen demand down to sustainable levels and drive traffic through more ‘traditional’ channels where brands can better manage the battle between demand and access?”

Whilst there are many advantageous qualities to the root-and-branch reform of social media, something brands should consider is, one of most identifying features of a successful business is its powerful approach to customer loyalty. What social media offers consumers is the ability to receive quick responses via direct messaging, as well as the opportunity to engage with brands honestly and publicly on live comments. Some argue that, as a result of axing social media, businesses run the risk of potentially thinning the line of communication between themselves and their customers.

Is This the Way Forward?

Without doubt, social media is one of the most impactful and cost-effective marketing tools available today. But as we’ve recently discovered, some brands are beginning to stand up and take notice of the damage it may be causing to, not just to their customers or their brand image, but to wider society in general. Dubbed with a disregarding attitude towards mental health, rocky data management processes, and the potential to banish a brand’s luxury image, is the social media sparkle slowly dwindling?

And as globally recognised brands like Bottega Veneta, Tesla and Lush radically re-think their social media strategies, many of us are left asking the question, is this the beginning of the great social media snub?

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Since acceptance, we have supported the candidates international relocation process ensuring they have settled quickly and easily. They are now planning further key hires in their international team, moving into 2023.

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We were contacted by a leading global consumer business, to partner with them on the appointment of a Senior Integration Engineer, responsible for supporting their new global system role out. To begin, we conducted a thorough assessment of the sector, creating a candidate market map of key people within the field. Following this, we designed a robust and collaborative recruitment process, leveraging immediately available, and ‘open to work’, talent in our network, including a comprehensive headhunt within target companies, resulting in a outstanding shortlist of candidates. The client offered the position within their target timeframe and has since advised the hire has been invaluable to the project, adding the skillset and expertise they were lacking and has ultimately delivered the project within budget and timeframe, greatly exceeding their expectations. Following this project, we have since placed further roles with the client including an additional Senior Integration Engineer, a Global Director of Shared Service IT and a Software Maintenance Engineer.

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We supported our client, who is consultancy partner, on a digital transformation project with a Leading Fashion Brand. The search was to find a Head of Ecommerce candidate that would work closely with the fashion brand, to accelerate their digital selling capabilities and create their digital roadmap. The candidate was also responsible for setting up the eCommerce practice for our client in Portugal. This was a senior, very important hire for our client, as the candidate would be a representation when advising the fashion brand, as well as being pivotal in the recruitment of a large team of eCommerce professionals to be based out of their newly created, purpose built campus in Portugal. Since successfully filling the role, relocating a fantastic European candidate, we have further developed our partnership with the client, making several other key hires, across various teams.

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We worked on a retained assignment with our client for a key role based in their Germany HQ. The role was to manage the consumer experience across all channels, as well as motivate and develop a high-performing team. We secured a candidate that had worked within agencies, as well as a direct competitor, and leading players in similar industries. This was a key hire, with a candidate who had experience across the different facets of the digital landscape, as well as and the ability to enhance our clients customer experience. The candidate has settled in quickly and is continuing to add talent to their team.

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Case Study, Consumer, Cosmetics, Health & Beauty, Industry, Insight, Sustainability

Posted on 7 October 2022

For thousands of years, skincare has played a vital role in many of our daily routines.

As early as 4000 BCE, our ancestors have experimented with creative and resourceful ways to enhance their physical appearance. Now, one modern trend looks to reshape the multi-billion-dollar global industry.

MacGregor Black takes a closer look at the cosmetics industry and its latest development, ‘Clean Beauty’.

The Cosmetic Industry

The ancient Greeks lathered their faces with honey and the early Egyptians exfoliated their skin with salts extracted from the Dead Sea. Our historic desire for the perfect complexion has echoed throughout the ages, giving birth to a £395.7billion industry we know today as, the cosmetics industry.

An industry where, in more recent years, many brands have drifted away from traditional techniques and ingredients forged in nature, instead turning to science in the search for success. Whilst such techniques may well have resulted in cheaper, more convenient, and (admittedly) in many cases more effective products. There is a newfound spotlight shining brightly on the long-term effects of pursuing perfection.

Fast forward to present day and an increasing amount of consumers are beginning to pay close attention to the products they consume. Labels are used to educate rather than attract, ingredients are analysed and understood, and brand are now held to account for the impact they have on not only our skin, but the world around us.

The result?

Cosmetics companies from across the globe are beginning to ditch the new for the old… all in the name of the ‘Clean Beauty Movement’.

What is Clean Beauty?

At its core, clean beauty refers to cosmetic products that are free of hormone disrupters, carcinogens and other harmful chemicals or ingredients such as, petrolatum, parabens, oxybenzone, phthalates or artificial fragrances, to name but a few.

Led by a rise in conscious consumerism, clean beauty products are flooding the cosmetics industry. And are we really surprised? According to data collected by Statista Research, almost half of 13–19-year-olds are interested in trying clean beauty and personal care products. In fact, in today’s market, clean beauty products generate around £350 million per year, with forecasts expecting 600% growth by 2024, totaling to a whopping £20 billion worldwide.

Clean beauty products are not only defined by their use of safe, non-toxic ingredients but are also bolstered by their transparency. There is a conscious movement towards tearing down the wall of secrecy that has previously surrounded many well-known brands, as modern consumers seek to educate themselves to better the decisions they make. So much so, that according to a recent survey conducted by Statista Research, 66% of 13-39-year-olds are more likely to buy a personal care or beauty product that has a ‘clean’ label on it.

Long gone are the days when consumers shopped solely for designer names or fancy packaging alone. Ingredients are now firmly under the microscope, with favour falling heavily to transparent beauty brands that clearly list not only exactly what is in their products, but also omits ingredients that can potentially harm.

Now to some, the conversation may end there. After all, a ‘clean’ label must mean it’s clean, right? Unfortunately, this isn’t always the case. In truth, there is no legal or official definition for clean beauty at this moment in time. And in the absence of clearly defined rules bring ambiguity. Ambiguity that many brands have taken advantage of, seeking to define clean beauty according to their own agendas. Not only that, but the cosmetics industry sadly isn’t as regulated as we’d all like it to be and as a result, some brands have the ability to mislead their customers. For example, ‘fragrance’ is not an ingredient but due to the lack of detailed regulation, companies can hide toxic ingredients in their products under the banner term ‘Fragrance’.

This is precisely what Clean Beauty aims to correct.

What Else Could Be Considered ‘Clean Beauty?’

Fuelled by a sudden boom in the health and wellness sector, many brands have opted to launch products that are not only labelled as ‘clean’, but also ‘organic’, ‘cruelty-free’, ‘green’ or ‘natural’. We’ve broken down those terms for you below.

Organic

For a product to be dubbed ‘organic’, it must be composing of at least 95% organic materials, formulated using organic farming, handled and manufactured in coordination with specific laws, free of genetically modified ingredients and must be officially certified as ‘organic’. Unlike the food & drink industry, the term ‘organic’ in cosmetics has little regulation and unless a product has gone through an extensive testing process to become officially certified, it’s difficult to guarantee it contains truly organic ingredients. However, one thing to bear in mind is, in the United States the USDA organic certification isn’t cheap and therefore some smaller health and beauty companies operating out of the US can’t always afford to display the official USDA organic certification seal, despite their products being truly organic. So, it’s best to do your research!

According to data collected by Mordor Intelligence, the organic skincare market is expected to grow by 8.5% per year through to 2026. Currently, the market is primarily dominated by a select group of large cosmetics companies, however as more and more beauty brands reap the benefits of producing organic products, we expect to see a surge of new contributors entering into this space.

Cruelty-Free

With the same passion shown for their own health, many consumers are pushing for the cosmetics industry to also be more conscious of the effect they have on animals.

Unfortunately, the cosmetics industry has a long and ugly history of testing on animals. Thankfully, and in large part due to consumer backlash, this is slowly changing, and many beloved brands are now opting to test their products using other methods of research instead. For example, cosmetics companies can utilise vitro testing (the practice of testing on human cells and tissue), silico testing (testing using computer modelling techniques) and are also able to test their products with the help of human volunteers.

As cruelty-free brands become more popular, there’s a common misconception that these products are also ‘vegan’. Whilst cruelty-free products share the same sentiment as vegan products and aim to protect animals as much as possible, cruelty-free products can still contain ingredients derived from an animal, despite them not being sourced in ways that could prove harmful to the animal. For example, a product that contains honey could be considered cruelty-free, as extracting honey from the hive doesn’t harm to the bees, however, the product is not vegan as it still contains animal ingredients.

If you’d like to know which products are cruelty-free, keep your eyes peeled for official cruelty-free logos and certifications.

Green

Easily confused with ‘clean’ beauty, ‘green’ beauty refers to products that cause no harm to the environment. From its manufacturing to its ingredients, all elements of a green beauty product will have little to no impact on the planet.

One of the most talked about topics within green beauty right now is, sustainable packaging. According to a study conducted by specialist health & beauty agency, The Pull Agency, nine out of ten shoppers (88%; rising to 93% of Generation Z) look for sustainability credentials in their beauty and personal care purchases and a third (32%) have deliberately chosen a sustainable brand in the past.

However, despite the swelling demand from consumers, the cosmetics industry is one of the top contributors to plastic pollution, producing more than 120 billion units of packaging waste every year. This is because, sadly, much of the packaging used in the health and beauty sector is comprised of a mixture of materials that are extremely difficult, if not impossible, to recycle.

Natural

As reported by Nielsen, 40.2% of consumers say they look for natural ingredients when making a purchase. However, buzzwords like ‘natural’ are tricky to define.

In a nutshell, if a product is claiming to contain ‘natural’ ingredients, it’s more than likely referring to the essential oils inside the product. An essential oil is a concentrated hydrophobic liquid containing volatile chemical compounds derived from plants, and depending on how concentrated the oils are, this could drastically change their effects on your health. Whilst they are natural, if they’re not formulated correctly, essential oils could damage the protective barrier across the skin, which is why when racing to grab the latest ‘natural’ products from the shelves, consumers should still always be conscious of the ingredients inside them. However, more often than not, essential oils incorporated within manufactured products go through a degree of regulation and are usually pretty safe to use.

How Much Damage Can Products Really Do?

Since there are little regulations around keeping harmful ingredients out of cosmetics, the clean beauty movement must be led by health-conscious-consumers and companies alike. Being aware of the effects that certain ingredients in products can have on both our safety and the planet is the first step down the path to true clean beauty.

Preservatives such as parabens, used by brands to increase the shelf life of their products, have been known to cause skin irritations, allergic reactions, and in some cases, have even been known to disrupt the hormones in our bodies, causing fertility issues and increasing the risk of cancer. And that’s just one ingredient!

Similar to parabens, phthalates, which are used to bind a product with a fragrance, can also cause allergic reactions, hormone disruptions and irritate our skin.

As you can see, some (not all) of the ingredients used in health and beauty products can have long lasting, harmful effects on our health, but did you know that some of them can also do just as much damage to the planet?

Oxybenzone is an ingredient most commonly found in sunscreens, used to protect our skin from the harsh UV rays. Although used in over 3500 sunscreens worldwide, this popular ingredient offers far less protection than we might think…Not only does oxybenzone act as a human hormone blocker, but it has also been known to bleach and cause serious damage to coral reefs. Many consumers aren’t aware of this, nor are they aware that there are many suncream brands out there that opt to use zinc-oxide or titanium oxide instead of oxybenzone, both of which are kinder on our skin and the planet.

We can understand why products using synthetic ingredients can often get a bad rep (especially after reading the above!) and whilst we might assume that natural ingredients are superior to lab-created synthetic ingredients, this isn’t always the case. In fact, after years of detailed research and development, many skincare brands have been able to create safe synthetic chemicals as a method of maintaining the purity of their products and increasing their shelf life. Which in turn, means less packaging waste and a smaller carbon footprint!

Brands to Watch

As the demand for clean beauty soars and an abundance of new products pop up in stores across the globe, it can be tricky to pin down which brands are truly clean.

MacGregor Black spoke with Health & Beauty sector specialist, Kriisti Atherton, to review her top clean beauty brands and why they made the cut.

The Ordinary

A common question many people have about clean beauty brands is, are the products worth the money? It seems that the cleaner the label, the steeper the cost and many consumers say they shy away from clean beauty products simply because of their extortionate price. This is where The Ordinary comes in.

It’s no surprise that bloggers, influencers and consumers are going mad for The Ordinary’s products. This brand aims to make skincare accessible. Most of the brand’s products cost less than £20, with some of their serums, creams and solutions costing as little as £5. Each of The Ordinary’s skincare formulations are simple, easy to understand and are free of additives, fillers, fragrances and dyes. Their packaging is minimal and straight-forward and their product labels explain exactly what’s inside them.

Kriisti Atherton comments:

“The Ordinary products are ideal for those who want to get straight to the point when it comes to their skincare. My favourite product from this range is their chia-seed oil, which personally I feel is massively underrated! It helps me with pretty much all of my skincare concerns (and even keeps my hair smooth and shiny!), from breakouts, to fine lines, to split ends. For me it’s magic.

I also really like their products in particular because they’re packed with evidence-based ingredients like retinol, salicylic acid and hyaluronic acid, without the market leading prices people might usually be expected to pay.”

UpCircle Beauty

Founded in 2016 by siblings Anna and William Brightman, UpCircle is a brand that aims to make the most of the hundreds of prime cosmetic ingredients that end up in landfill each year. This affordable organic beauty brand has built themselves a credible reputation for fighting waste by for sourcing and re-using natural ingredients discarded by the food & drinks industries. In their products, you’ll find ingredients like coffee grounds, olive stones, kiwi juice, maple bark and apricot stones.

Health & beauty specialist, Kriisti Atherton commented in a statement:

“UpCircle beauty products hold a special place on my shelf. I’m actually using their body scrub made with tangerine and repurposed coffee grounds and the results have been amazing. The circular economy sits at the foundation of their brand, as they aim to reduce as much waste as possible through upcycling (hence the name UpCircle) and taking advantage of the many perfectly usable ingredients that end up in landfill each year. And to top it off, their products are palm oil free, vegan, cruelty-free, natural and sustainable. Plus, their packaging is 100% recyclable.”

Biossance

In 2003, Biossance patented a life-changing technology that allowed them to create an accessible cure for malaria. Today, the sustainable brand has turned to beauty, developing over 120 million skin-loving treatments, thanks to this technology. The ingredient most commonly found in their products is squalene, an oil Biossance produce entirely from sugarcane (rather than it’s typical source. Yep, you guessed it… shark livers!).

The brand prides themselves on their continued efforts in shark conservation, saving over 2 million of these ocean dwellers lives with their renewable squalene creations. Not only that, but their packaging is fully recyclable and in partnership with CarbonFund.org., they also plant trees and fund large restoration projects offshore each year.

Kriisti Atherton gives her insight:

“What I love about Biossance is their undying commitment to the environment! The company ships carbon neutral, is cruelty-free and has a green lab certification, meaning the brand meets the non-profit’s laboratory standards for energy consumption and usage. The company has also taken it upon themselves to personally ban over 2,000 harmful ingredients (like parabens and phthalates) from their products, further proving their passion for preserving the planet, as well as the safety of their customers.”

Monday Haircare

MONDAY is a dermatologically tested haircare brand that currently has people across the internet raving about its results. Their shampoo and conditioner formulations are free from SLS, parabens and are certified under the Leaping Bunny programme by animal protection and advocacy agency, Cruelty Free. Whilst also being recognised by PETA as a brand that has a zero-tolerance policy when it comes to testing on animals.

MacGregor Black’s beauty expert, Kriisti Atherton notes:

“I wanted to include a haircare brand in this round-up because the clean beauty movement isn’t just focusing on skincare or cosmetics, it extends to pretty much any personal care product out there.

With a focus on using natural ingredients, MONDAY is all about making luxury products more affordable for the average person. They don’t believe you should pay more for quality ingredients or fancy packaging, which still looks amazing and is 100% recyclable.”

In short, the Clean Beauty Movement encourages us to challenge the norm and push for what we feel is right. While cutting through the hype and investing your time into finding out which brands are truly ‘clean’ can be difficult, it’s worth remembering that the Clean Beauty Movement began out of a genuine need for transparency and higher-quality ingredients in the products we consume. Thanks to this demand, the industry is evolving, and more brands are tackling problems like the misuse of harmful ingredients, unethical practices, and misleading marketing.

By reframing the focus on the ingredients in our skincare and pushing for cleaner, natural, better-quality products, the Clean Beauty Movement holds the power to re-shape a multi-billion-dollar industry.

If you’d like to speak to our Global Health & Beauty Practice, get in touch today via hello@macgregorblack.com or +44 (0)191 691 1949

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The candidate had extensive experience as well as an impressive track record, and was a great cultural match with the business.

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