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The Honolulu Advertiser
Posted on: Sunday, May 4, 2008

PRODUCT R&D
Years of research go into your everyday products

By Dan Sewell
Associated Press Business Writer

Hawaii news photo - The Honolulu Advertiser

Lauren Thaman, Procter & Gamble's global director of beauty science, displays a facial cleansing mask in her Cincinnati office. Creating the right ingredient balance of such products takes extensive lab work.

Photos by AL BEHRMAN | Associated Press

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Hawaii news photo - The Honolulu Advertiser

Bobbie Doxsey studies how different hair types react to care products at a Procter & Gamble lab in Cincinnati.

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CINCINNATI — Jim Schwartz remembers feeling a little bewildered when he started his job developing beauty care products at Procter & Gamble Co.

Schwartz, fresh off earning his doctorate in chemistry, wondered about the scores of researchers working on Ivory soap:

"I thought, what in the world are all these people doing here? It's a bar of soap, for crying out loud!"

Two decades later, he explains: Researchers must decide the right mix of materials to go into a new beauty product; make sure it feels, smells, looks right and has added personal benefits without ill effects; and determine whether it can be made affordably on a huge scale.

"That deceptively simple product sitting on store shelves has years and years and thousands of person-hours that went into making it work well," Schwartz said.

In an increasingly competitive business, a growing army of scientists focuses on years-long projects to study the hows and whys of human hair, faces and skin, and how nutrients, moisturizers and even genetics affect them. Their results can mean the next big thing to meet growing demand for products to help people look better and younger.

P&G has nearly doubled its beauty research staff, to 2,000, in the last seven years. Beauty sales, which include such brands as Pantene and Head & Shoulders shampoos and Olay skin care, more than doubled this decade, to $23 billion last year.

Researchers spend days peering through microscopes at human cells, analyzing genetic breakdowns, looking at facial pores blown up to look like moon craters and strands of hair that resemble tree bark, and lathering and rinsing rows of hair swatches. P&G buys more than 300 pounds of human hair (paying distributors up to $1,300 a pound) a year to test shampoos, coloring and other products.

Some workers wear safety glasses, and emergency showers are right outside lab doorways.

P&G has made building its beauty business a top strategic goal, as the U.S. baby boom population seeks ways to defy aging and will spend for it. Young people, too, are spending more on looking better. And increasingly, people in developing economies around the world have money to spend on their appearance.

P&G estimates the combined global market for beauty and personal healthcare at $360 billion.

The company, known for such household brands as Tide detergent and Pampers diapers, faces veteran cosmetics makers such as L'Oreal SA, Avon Products Inc. and Estee Lauder; consumer products competitors such as Unilever NA that are expanding beauty product lines such as Dove; and a growing number of niche players with specialty products.

"I think overall, it's a positive outlook, but it's going to be more challenging," said Karen Grant, beauty industry analyst for the NPD Group. "There are more people playing; competition is stiffer."

"A lot of the things that make it an attractive growth business to us, others see, too," said Bruce Brown, a P&G vice president for research and development.

Paris-based L'Oreal has steadily increased research spending, and has some 3,000 people in that part of the operations, said Patricia Pineau, its director of research communications.

"If you want to be a leader and compete, you need to anticipate the consumer expectations ... and what is going to be possible in 10 (and) 12 years," Pineau said.

For many of P&G's new beauty products, a journey of what can take from five to 10 years to reach store shelves begins at the Miami Valley Innovation Center, miles away from P&G's Cincinnati headquarters.

"There is nothing farther upstream at P&G than us," said James Thompson, associate director of P&G's global biotechnology division.

One scientist just spent nearly seven years there studying the genetic code of fungus that causes human dandruff.