Why Good Regulatory Policies Will Help Small, Independent Businesses
Three words come to mind: Clairol Herbal Essences. Aimed at “generation Y” women who want to use environmentally sound and natural products, this is the number-two shampoo, with sales topping 42 million and six percent of market share – more than all the shampoos made by the natural products sector combined.
Yet how natural and “herbal” is it really? Herbal Essences Body Envy shampoo, which ranks a five (moderate hazard) on Skin Deep, contains at least 15 synthetic chemicals, including several linked to allergies and skin toxicity; a synthetic fragrance made of who-knows-what; and at least one carcinogenic contaminant not listed on the label. (More on that soon, including a big announcement from parent company Procter & Gamble).
The point is: the product is certainly not natural or herbal, but it has an extremely effective marketing campaign. The brand even shows up on sit coms.
To have a free and fair market, we’d need to have full transparency and full information available to consumers about what they’re really buying, so they can make the best choices.
But in a market like this, when the true toxicity of products and even the ingredients are hidden from consumers, the advantage goes to the company that spends the most money on market research and ad campaigns to convince people they’re buying something that will enhance their sense of well being, even if it’s just a dressed-up bottle of the same old synthetic chemicals.
Polices that require full disclosure of product ingredients (including fragrance chemicals and contaminants) and limit the hazardous chemicals allowed in products will not only protect people’s health, they will serve as a tool to educate consumers and help them make smarter choices. They will give an advantage to companies that are already doing the right thing and making safer products.
The true innovation in the beauty industry is happening right now in the natural products sector, where many small, independent, values-driven companies are solving the toxicity problems of the past and figuring out how to make truly great, non-toxic products – products that actually do enhance well-being.
If only we could put that story on a sit com. Until then, policies that increase transparency and open up the information flow are the best bet for leveling the playing field for the independent business community.
Stacy Malkan, 3/11/10
Read more about how P&G revived the Herbal Essences brand by putting lots of effort into the curvy new bottle (and apparently not much thought into the chemicals in it).
for wearing 
