How have you approached the evolution of your product portfolio, particularly in expanding from hair care to other areas like skincare?
In our journey at Davines Group, we've always emphasized a strong organizational purpose rooted in ethics. We've drawn inspiration from entrepreneurial legends like Adriano Olivetti and have founded our principles on eudaimonia – an Aristotelian concept about living a meaningful life. This philosophy challenges the superficial notion of beauty prevalent in the industry. Instead, we believe in beauty that radiates from the inside out, a principle that heavily influences our product formulas, supplier relationships, and our overall approach to the beauty industry.
It appears that Davines Group anticipates market trends rather than reacting to them. How do you adapt to these evolving consumer preferences?
At Davines Group, we prioritize our purpose over market trends and research. This instinct is honed by extensive research, curiosity, and robust R&D. A key element for us is product functionality. While sustainability is vital, the product must deliver on its promise, particularly to our professional consumers. If it works and advances ecological transition and sustainability, then we believe we not only have a right to exist but also to grow. Striking a balance between performance and sustainability often requires reimagining our supply chain, like our move towards regenerative organic agriculture.
What's your perspective on the importance of collaboration for sustainability in the beauty industry?
We spearheaded the B Corp Beauty Coalition, which started with a handful of brands and now includes more than 70 companies. By collaborating on sustainable supply chains, green logistics, and eco-friendly packaging, we aim to transition the beauty industry towards more sustainable practices. Open-sourcing our knowledge allows these companies, representing about 2% of the global beauty market, to work towards making a broader industry impact. Beyond this, we actively engage with various communities globally on environmental initiatives and believe that activism is the best form of learning. We firmly concur that collective action is essential in our current climate.
What is Davines Group’s "secret sauce" for developing its distinctive company instinct?
Our unique approach lies in balancing multiple, sometimes conflicting, strengths. We focus on four pillars: decarbonization, circularity, biodiversity, and water. This strategy stems from a culture of measurement refined over years, backed by a diverse team of scientists. We aim to satisfy the consumer, especially professionals, ensuring our products are effective at the skin or hair level. Managing these differing energies and ensuring they align with our commitment to sustainability is crucial to our success.
Can you speak more about Davines Group’s broader initiatives, especially in terms of promoting happiness and sustainability on a global scale?
Davines Group champions the concept of eudaimonia, which emphasizes a fulfilling life rather than fleeting happiness. We actively promote this idea. Globally, we engage with communities on waste collection, helping cities achieve green or carbon-neutral statuses. We believe in learning through activism. Also, our support for Bhutan reflects our endorsement of growth for good, which aligns with our vision of sustainable growth.
At Davines Group we see the values of ethics, beauty and sustainability as the three pillars of a fulfilling life and these are key in our actions and choices as a company: we believe in learning through activism and we engage with the communities of the countries in which we operate. We believe human species needs to find a new way to inhabit the planet that cannot leave a fulfilling life out of consideration. With regard to that the example of Bhutan is a significant representation of our endorsement of growth for good.
How do you envision the connection between beauty products and wellness, and what experiences are you aiming for Davines Group customers to have?
Feeling good about oneself is pivotal. Through our extensive studies, we've discerned that a fulfilling life emerges from a harmony between one's personal, professional, community, and planetary identities. This coherence, spanning from the nano to the macro level, fosters a richer, more meaningful existence. The beauty industry holds an immense privilege as it influences individuals at a deeply personal level, impacting self-esteem and well-being. By touching upon these aspects, the industry can guide individuals to live more harmoniously on our planet. Instead of merely utilizing the planet, the beauty sector has the potential to lead humanity towards inhabiting the Earth responsibly. This philosophy also motivated us to establish the Regenerative Society Foundation, bringing together entrepreneurs from diverse sectors to promote regenerative practices.
Given the current global challenges, what are the main concerns for the Davines Group?
Our foremost concern revolves around technological constraints that hinder the realization of our vision. In 2021 we founded EROC (European Regenerative Organic Center) in Parma on a partnership with Rodale Institute and this is the first European Center of research and training on regenerative organic agriculture. One such project involves transforming EROC’s 17 hectares into an agrivoltaic field. The objective is not only energy generation but also the production of regenerative organic ingredients.
Our target is to introduce 10 new ingredients annually over the next decade. Balancing energy production and aesthetics is challenging as most agrivoltaic installations aren’t visually appealing.
External global challenges, like the direction in which the world is moving, are also concerning. However, such macro issues are beyond our immediate control. Instead, we focus on amplifying our voice, activating and empowering our community to stand united for shared values, and fostering genuine diversity and inclusion.
To conclude, can you shed light on Davines Group’s key commercial goals for the upcoming years?
We're targeting a revenue milestone of half a billion before the decade's end, likely achieving this a year or two earlier. Our growth journey is self-financed, aiming for an organic growth rate consistently between 10% and 20%. In the last 20 years of our 40-year history, we've maintained a compounded average growth rate of 19%. As a B Corp, our strategy isn't profit-maximization for shareholders, but rather optimizing profit for all stakeholders. Our emphasis on "growth for good" ensures we don’t resort to shortcuts. For instance, while we're committed to sustainability and being its early adopters, we’re comfortable being followers in the technological arena. Our core strengths lie in sustainability, beauty, and ethics.
