EDANA Outlook Personal Care Products Conference Cascais, 26th – 28th Sept 2007

Key Points

• Asia Pacific will be largest absorbent products market by 2011.
• Eastern Europe and Latin America have shown the highest growth rates since 2001.
• Ethical consumerism and concern for the environment could cause a backlash against disposability.
• “Globalisation” is in conflict with “Sustainability” especially in the textile industry where part-processed yarns and fabrics are shipped between continents several times to save cost.
• K-C's mission is to “innovate, develop and source advantaged nonwoven solutions” and be supplier of the year every year.
• An EDANA-sponsored study concluded that medical disposables are a relatively unattractive industry with low margins, high investments and huge competition.
• ExxonMobil report the availability of plenty of oil for the foreseeable future – political instabilities excepted.
• SCA will soon be able to make more money by burning wood pulp to generate electricity than by converting it into paper.

Global Hygiene Trends

Irina Barbalova, Head of Disposable Paper Products Market Research and Euromonitor International (UK) listed the key trends:

• People are getting richer (especially in middle/old age)
• They lead more hectic lives
• They are walking 10% faster than 10 years ago.
• They are marrying later or not at all
• They want to be fitter and healthier for longer.
• They want better products to make life easier, but…
• A backlash is now occurring, and compromises with being “Green” are being sought.

Ethical consumerism and an inclination to support “green” products wherever they appear is higher on the agenda than last year. In fact buying eco-friendly goods has become fashionable and “niche” hygiene products are moving into the mainstream.

Euromonitor $-based statistical headlines were as follows:

• Eastern Europe (16%) and Latin America (11%) account for over a third of global hygiene growth since 2001. (Asia Pacific grew 5% in the same period)
• Based on 2006 sales, USA , China , Japan , UK and France are the world's top 5 largest markets.
• Based on 2005-2006 growth, China , USA , Russia , Mexico and Brazil are the world's top 5 most dynamic markets.
• For personal care products globally, most growth between 2005 and 2006 came from Inco (10.5% growth), followed by diapers (7%), Femcare (6%), Wipes (4.8%) and Cotton Wool (3.2%).
• Household wipes grew less than 1% between 2005 and 2006. They are losing their novelty value and a return to traditional cleaning methods appears to be occurring.
• Within personal care wipes, facial cleansing wipes were now a billion dollar market growing at 10% pa, twice the size of the general purpose wipes which were growing at 9% pa and a third of the size of baby wipes now growing at 8% pa.
• Femcare wipes grew fastest (21%) but were a tiny market in comparison.
• Deodorant wipes, similarly small, recorded 5% growth.
• Baby wipes showed renewed growth (2005-2006) due to new introductions from P&G and KC.
• Wipes shares globally in 2006 were 64% baby, 20% facial, 11% general purpose, 3% deodorant, and 2% femcare.
• Household wipes now use improved detergents, better fabrics, more convenient device-like formats and more disinfecting power.
• Personal wipes have more application formats (hair wipes, foot wipes, male wipes, bald head wipes), and increasing novelty in packaging, scents and lotions.
• Natural ingredients, organic cotton, flushability and biodegradability claims are increasingly seen in facial wipes, and new gadgets for their use are being tested.
• “Silk” softness is a new feature in femcare, and here increasingly convenient and discreet packaging is appearing.
• “Green” disposable diapers are attracting more interest because washables remain unacceptable. Boy/girl, night/day and new ultra-premium diapers are emerging.

The Outlook to 2011:

• Asia Pacific will become the largest absorbent hygiene market - $18 billion sales growing at 6% per annum. China 's birth rate will increase due to the abandonment of the 1 child policy and this market alone will add $3bn by 2011.
• North America ($15 billion) and Western Europe ($12 billion) will show less than 1% pa growth.
• Latin America ($11 billion) will grow at 7.5% pa. Eastern Europe ($5.3 billion) will grow at 9.5% pa.

However, increasingly ethical consumerism and concern for the environment in an increasingly homogenous world could cause a backlash against disposables.

Energy Outlook

Didier Lutsen replaced Christophe Lacroix of ExxonMobil ( Belgium ) to review their projections for energy costs through to 2030.

World population would reach 8 billion mainly due to growth in non-OECD countries. Global GDP would grow at 2.8% per annum to reach $75 trillion and the energy demand would grow at 1.6% per year to reach 320 Million Barrels per Day of Oil Equivalent. This latter figure was a saving of 140 MBDOE over that predicted in 2005 assuming 2005 rates of energy use would continue. The savings came from energy-use plateauing in OECD countries, the growth coming mainly from expansions of the non-OECD economies. Most of this growth would be based on coal, gas and other sources, growth in liquids (crude plus oil-sands, biofuels etc) slowing. “Other” or the non-fossil energy sources would grow to 60 MBDOE by 2030 mainly due to growth in use of biomass, nuclear and hydro/geothermal sources. Wind and solar power would amount to no more than 2.6 MBDOE.

Natural gas demand would grow at 0.5% per annum in North America to reach 90 Billion Cubic Feet per Day by 2030, only 60 BCFD being available locally. Imports of Liquefied Natural Gas would make up the bulk of the shortfall, with a little coming in by pipe. In Europe, growth would be at 1.5% per year to reach 70 BCFD by 2030, 40 of this being piped in from Russia , and 20 being imported as LNG. Asia Pacific gas consumption would increase at 3.7% pa to 90 BCFD by 2030, 50 BCFD being produced locally, and the majority of the rest being LNG from the Middle East and Indonesia .

The consequence of this continuing dependence of fossil fuels would mean that global CO 2 emissions would continue to rise by 1.6% per year, mainly due to non-OECD expansions. Options for reducing atmospheric CO 2 levels included a switch to nuclear power, to advanced motor transport requiring much less fuel, to carbon capture and sequestration in depleted oil and gas fields, and breakthroughs yet to be made. Hydrogen for transportation remains energy intensive and complex, but the in-car generation of hydrogen using gasoline looks more promising and would reduce emissions by 45%. Carbon capture is expensive but pumping it into depleted oil and gas fields to push out the remaining fossil fuel looks practical.

Asked if political instability could limit availability of oil and gas, Mr Lutsen said it could and this had not been factored into ExxonMobils projections. Venezuela and Russia were reluctant to allow multinationals to exploit their reserves, and these states were spending their oil revenues on non-oil projects, and thus not reinvesting sufficiently. Nevertheless he felt there would be plenty of oil for the foreseeable future. Reserves estimates had been increased due to new extraction technology becoming viable at the higher prices. Carbon capture is expensive but pumping captured CO 2 into depleted oil and gas fields to push out the remaining fossil fuel now looks practical. The costs of this “last drop” extraction would of course be very high.

EU Energy Outlook

Per Arfvidsson, Senior VP and CPO for SCA Hygiene ( Sweden ) listed the challenges facing EU energy policy as:
• High oil price leading to costly gas and electricity.
• Tight supply – any disturbances cause a price spike.
• Russian oil and gas supply security.
• Middle East volatility.
• Competition from China and India for energy
• Only 10 years of gas left in EU. Imports are essential.

The energy outlook is now heavily influenced by the Emission Trading System which collapsed in 2006, CO 2 emissions being valued at zero €/tonne earlier this year. By 2008, when ETS Phase II commences, this should be corrected and the 2005 price of ~€20/tonne CO 2 should be restored. The Phase II ETS will lead to a convergence of all power, gas and coal markets, and prices for all energy sources will increase as a consequence.

The EU has a strong political commitment to convert itself into a sustainable society and in addition to the ETS, subsidies based on Renewable Energy Certificates will be available to encourage electricity production from renewable resources. When the value of electricity and the REC's are combined, their level at March 2007 meant that burning spruce woodpulp in SCA's combined heat and power stations made economic sense. In other words, rather than make paper, SCA could now use the wood to generate electricity more profitably - providing the wood could be sourced within about 300 km of the power station.

Asked if incineration of waste would be a useful energy source, Mr Arfvidsson and Mr Lutsen thought it would be and it already plays a big part in SCA's energy generation – more so than wind-power.

Innovation at KC

Robert Stargel, VP of Kimberly-Clark's Global Nonwovens Division (USA) defined innovation as “People implementing ideas that create new value”.

His examples of K-C's “Business Enabling Innovations” were spunbond for diapers, stretchable laminates for training pants, Coform for wipes, and SMS for medical barrier fabrics.

• Spunbond had been pioneered when KC installed Lurgi lines, which they debugged and perfected prior to licensing to Reifenhauser.
• Meltblown had been acquired from Exxon and similarly perfected.
• K-C's combination of the two in SMS had enabled new product categories to emerge.
• “Product enabling innovations” were listed as
• fastening loops (code-named PUB),
• Stretch-ears for diapers (NBL),
• Breathable cloth-like barriers (SFL)
• Thin absorbent cores (TABBI)

K-C has always placed high priority on intellectual property and is a prolific patenter, with 351 granted patents in nonwovens between 2002 and 2006, c.f. 145 from P&G, 49 from PGI and 42 from Freudenberg. Their innovation process has involved vertical integration from vision and ideas through polymer to converted product, and they develop the technological expertise to make this possible.

For the future their mission would be “to innovate, develop and source advantaged nonwoven solutions”, and they target being “Supplier of the Year” every year. To achieve this they would continue to use past successful strategies but with more emphasis on consumer insights, the internet, sales of IP, partnerships, open innovation and modelling. For consumer insights they used the ?whatif! innovation company. Partnerships with Pegas and various universities (including Caltech, MIT, Michigan , Oklahoma , NC State) were mentioned. Open Innovation was exemplified by the new “Sun Signals” indicator to show when children had had enough sun, and the “Cool Alert” aid to potty training.

In conclusion, Mr Stargel observed that while consumer insights drive short-term innovations, consumers don't know what they will need in the longer term, and so K-C's job is to try to anticipate these needs. He foresaw the talent pool shifting to India and China , hence the need for special initiatives to get US kids more interested in science, in addition to moves in Asia to harness the innovation potential there. They had launched an Innovation Center in Korea , a Hub and Spoke network in India and were partnering with Donghua University in China .

Innovation in Elastomerics

Richard Brennan, VP Personal Care for Kraton Polymers (USA) introduced Kraton as the world's leading producer of styrenic block copolymers, a billion dollar company with 850 employees. They obtain styrene, isoprene and budadiene from crude oil and make 600 different products. The Kraton D range comprises unhydrogenated SBC's, while the Kraton G range is hydrogenated. They provide personal care consumers with fibres and glues which offer stretch, soft-touch grip, adhesion, strength and durability; and hence comfort and fit in the hygienic disposables containing them.

A new class of very high melt-flow polymers has been created for fibres and films. Bicomponent fibres and spunbonds with a PP sheath on a Kraton core, the sheath buckling due to the elasticity of the core, are now being made. These perform as well as polyurethane/polyethylene bicomponents, while costing less and being easier to spin. They outperform the cheaper elastic polypropylene. Further elasticity improvements have been achieved by using an unspecified “PP Blend” polymer to make the sheath, and these can also confer more softness and better drape. In addition to disposable hygiene products, applications in short-life fashion garments are foreseen, where laundering up to 5 times is all that's required.

Asked if the SBC fibres were sticky, Mr Brennan said they were, but only as spun, and not in the finished product. He thought a fully elastic diaper was now technically possible, the system costs were now attractive, but further cost-downs would need to make it practicable.

Open Innovation

Prof. Wim Vanhaverbeke of Hasselt University and Eindhoven University of Technology ( Belgium ) used Philips as an example of a company managing to increase innovation rate and introduce more new products without achieving better growth. He argued their new products were mainly for stagnating markets and that the way forward should be to focus on new business creation and “breakaway innovations”. The latter arose when new products created new markets, and analysis of the new product launches from 108 companies showed that only 14% were in this winning category. However these 14% created 40% of the improvement in revenue and 60% of the profit improvement.

Breakaway innovations were most likely to arise from an open innovation strategy, where the internal Basic Research->Development-> New Product route typical of large organisations was supplemented by deliberate acquisition of external technology through external research and technology licensing. Surplus technology would inevitably be acquired but this would give rise to ideas for new markets and failing that could later be sold on or licensed to other firms. In this open model, internal and external development costs combined would be less than the internal-only costs of the closed model, and revenues would be increased both from growing your own market and from sales of surplus technologies.

Problems arise from power-play when big companies collaborate in Open Innovation with small or start-up companies. An over-heavy approach might kill the spirit of co-operation and entrepreneurship and could even result in litigation if the approach is perceived as an abuse of power. Open Innovation management implies OI's integration into the business strategy, and deliberate enhancement of the connection-making capabilities of the company. Furthermore, ways of motivating smaller potential partners to want to make connections need to be devised. Dutch State Mines favour 3-way negotiations between the potential partner and both their venturing unit and a business unit. 2 deals emerge, and these are packaged to yield “a maximal win-win situation”.

Social Computing

Jaap Favier, VP, R&D Director of Marketing and Customer Experience at Forrester ( Holland ) argued that processing power is moving away from the big corporations to the edge of the network where consumers have ample computing power in their cheap phones and broadband-enabled laptops to get information from Google, Wikipedia, Trip Advisor, Second Life etc. The young are particularly prolific at communicating with one another, and even the increasingly large older generation is relying more on the web for communication. Corporations are “dropping through the hole in the donut” and loyalty to brands is diminishing. Forrester surveys show that emailed recommendations from friends/family, and consumer opinions posted on the web are trusted as much as if not more than articles in the traditional print and TV/Radio media, and more than any advertisements. Social networking sites like “My Space” are allowing individual opinions to be spread very rapidly: corporate messages are being ignored and marketing now needs a new set of rules.

The on-line communities are pyramidal with 4 levels of engagement:

• The top 7% are the “creators”, who write their own blogs and websites, and influence the opinions of others.
• The next 14% are the “critics” who develop the messages originated by the creators and add new angles. They write the customer reviews and participate in chat-rooms and fora.
• The next 21% are the “collectors” who belong to, and chatter on social networking sites.
• The bottom 58% are the “couch potatoes”, who read blogs and customer reviews occasionally, but still rely mainly on the traditional media.

So, future integrated marketing from the corporations must now:

• Push the Couch Potatoes.
• Provide content to the Collectors
• Engage in a dialog with the Critics
• Collaborate with and create a platform for the Creators.

Examples of how this could be achieved are being provided by:

• Nike, who were allowing their web-site users to design and buy shoes on-line for €145/pair. This was a loss-leader but it gave Nike advance information on the colours and styles which were likely to become popular in the near future.
• American Apparel (and others) have stores in Second Life which allow consumers to interact and demand new styles, thereby predicting fashion changes in the real world.
• Endemol has Big Brother on Second Life – Reality TV in a Virtual World!

The marketing rules were therefore being rewritten:

• Content is King becomes Contact is King• The medium is the message becomes The Response is the Message• We call the shots becomes They* call the shots.*Women are far more likely to share information on line than men.

Globalisation

Prof. Suzanne Berger of MIT (USA) observed that the traditional western worry about globalisation - jobs being exported to the East - was not being borne out by the statistics. These worries tended to be generated by politicians at election times, and should be considered as urban myth rather than reality. In 2003, only 13,000 jobs were transferred from the USA , this being negligible compared with the 140 million jobs available. The problem is not job losses, but a recent failure to create sufficient new jobs.

Globalization implies a single world market, with wage costs, capital costs, interest rates and service costs being uniform worldwide. This will never happen but the movement toward this ideal is important. Outsourcing and Offshoring are important mechanisms of globalisation, and the USA does both together, companies outsourcing mainly offshore. Japan in contrast just offshores, by for example setting up Japanese companies in low-labour areas and keeping control of the production process. Either way, Globalisation can lead to massively fragmented and dispersed production routes, and the best companies are those that can best cope with the resulting complexity. Their new workforces can be in China or India and these workforces could be coping with completely new technologies.

Dell and Gap are examples of US companies dealing with such complexity. Dell for instance claims its computers are made in the USA on the basis of 4.5 minutes of assembly in the USA of components sourced all over the world. Gap manages a complex and globally disperse production chain to deliver fashion items to Western consumers. Other companies, e.g. Samsung in electronics and Zara in fashion textiles succeed by operating fully vertical organisations and yet compete successfully with the fully outsourced and offshored operations. Zara's verticality gives them unrivalled speed of response to sudden demand for new fashions.

So, following cheap labour is not necessarily the winning strategy. Overall system costs are the key. For instance sweaters are cheaper to make in Italy than in Rumania where wages costs are a tenth of Italian levels, because the Italian workers skill and versatility allows them to keep machinery productive for far longer in any given week.

In conclusion, Prof. Berger said globalisation demands a new breed of corporate leader, capable of being a “boundary spanner” able to identify and build value chains from widely distributed and fragmented global resources. Asked if globalisation could be in conflict with sustainability she thought it could, especially in the textile industry where obtaining the lowest garment cost could involve shipping part-processed material between continents several times.

Sustainable Development

Ioannis Hatzopolous, External Relations Manager, P&G ( Germany ) introduced EDANA's 2007 Sustainability Report by reminding us that sustainability is a really simple idea which is really hard to implement. It requires synergy between economic growth, social responsibility and environmental stewardship but everyone's life will be improved. For business it is an opportunity, provided we focus on the solutions rather than the problems. Reporting data and trends in a transparent and responsible way is part of the solution and the 2007 report updates the 2005 report and demonstrates EDANA's commitment to continual improvement of the sustainability of disposables. The key environmental advances were recorded as:

• Absorbent weight down 40% in 20 years, so energy required reduced by 32%, global warming potential by 37% and Summer Smog potential by 43%.
• Disposables and cloth diapers have been shown to be similar in the latest UK life cycle analysis.
• Diapers account for <0.5% of all solid waste and about 2-3% of municipal solid waste.

For the future, further reductions in environmental impact, and better understanding of the waste issues would be sought. The emerging Mechanical-Biological Pre-treatment technology may allow further waste volume and biodegradables reduction as required by the EU landfill directive.

Sustainability in Personal Care

Gabriella Grab Hartman, Senior Equity Analyst at Sustainable Asset Management ( Switzerland ) explained how SAM, founded in 1995 to manage sustainability investments, now has CHF 6.2 billion of assets under management, is the first carbon-neutral company in Switzerland , and now employs 70 people worldwide from the headquarters in Zurich . They identify investment opportunities arising from climate change and the concerns surrounding it by ranking companies for sustainability using a web-based questionnaire. The sustainability score has been shown to correlate with overall financial performance. SAM calculates a financial equivalent of the sustainability score, adds this to the stock markets “finance only” valuation of the company and arrives at a “Fair Value” which predicts how the share-price should develop.

Turning attention to the Personal Care sector, Ms Hartman identified demographic changes, both the ageing of developed country populations and the rising wealth of the emerging countries, as important. Also, consumer habit changes (rising expectations from global interconnections on the web) and resource shortages as the oil supply is depleted would be key drivers. Transparency, i.e. more reporting of non financial KPI's, Supply Chain Management (setting high environmental standards for suppliers) and reducing the environmental impact of the entire supply chain would become increasingly important.

Incontinence – The future for all?

Björn Uddenberg, Director of Incontinence Care at SCA ( Sweden ) said that of SCA's €11bn sales, 21% were in personal care and just over half of this were from sales of the Tena range of incontinence aids. Despite the title, 60-65% of 85 year olds will be continent and remain so for the rest of their lives. Incontinence only affects 5-7% of the population, is three times as prevalent in women as men, and the market for incontinence aids is growing at 5% per year. SCA lead the world in providing disposable incontinence products (26% share) followed by KC with 12%, Kendall with 8%, Hartmann with 7% and Unicharm with 6%. Outside the EU, NA and Japan the market remains tiny.

The key factors driving growth are:

• Communication: breaking the taboo.
• Discreet, leak free products.
• Further progress in light female incontinence pad design.
• Population ageing.
• Reimbursement of costs of products by health care providers.

Sales to Western light female incontinents, and the 65 – 80 age group would grow by 27% (2005-2025). Sales to the 80+ demographic would grow fastest at 72%, these numbers assuming an EU population decrease of 2% over that timescale.

In 2006 the global inco market (valued at €5 billion) would be 40% institutional care, 26% home care and 34% retail sales, growing at 3, 6 and 8% pa respectively. Institutional products are subject to pressures to reduce public spending, but they account for less than 1% of national health spending while affecting >10% of the total value chain.

Product designs have improved markedly in the last decade with pants, belted briefs and pouches being introduced. Alternatives to disposables, such as drugs and surgical treatments, will not dramatically change the rules. Too many people are reluctant to take drugs continuously, or subject themselves to surgery.

Measuring Quality of Life

Alan Cottenden of University College London stepped in at short notice to give Mandy Fader's ( University of Southampton - UK ) paper on the effects of incontinence products on the quality of life.

QoL was defined as:

• Physical, psychological and social well-being
• Personal relationships and sexual health
• Freedom from pain
• The ability to lead the life we wish to.

Effects on QoL should be assessed as part of the evaluation of an absorbent product and a way of quantifying QoL is needed to provide hard evidence to justify the development of improved products. Product Performance Questionnaires can be used to assess the functional characteristics of a pad (e.g. leakage, fit, discreetness, ease of use, comfort etc), but a QoL assessment could measure the impact on life, or the “so what” implications of the PPQ data. Most existing QoL tools measure the improvements in a patients condition following “cures” brought about by drugs or surgery. Pads are used simply to manage a condition without affecting a cure or changing the symptoms, so the existing QoL tools are inappropriate. The University of Southampton is therefore developing a questionnaire for QoL assessment of incontinence management where symptoms remain unchanged.

Communicating the benefits of hygienic disposables

Stephanie Christmann, Communications Manager of SCA Personal Care and Chair of EDANA's HAPCO Communications working group introduced the “Right for Hygiene” programme, a 2 year pan-European initiative arising from collaboration between Hapco and the Wet-Wipes group.

The objective was to build a series of communications which:

• Allow the hygienic disposables industry and its products to be recognised as having inherent social value.
• Increase knowledge, understanding and acceptance of hygiene products
• Enable EDANA to be a credible dialog partner with target audiences

The target audiences were listed as:

• All levels of government policy makers
• Opinion forming media
• Industry associations especially waste and wastewater treatment
• Health workers
• Voluntary groups dealing with childbirth and care
• Nonwovens suppliers

Activities would involve researching the benefits of hygienic disposables, producing leaflets about the products, and setting up a dialog with key audiences to create a community of interest.

The EDANA/Solvay MBA project

Laurent Gheerhart, Solvay MBA at the University of Brussels ( Belgium ) described the Business Field Project where by teams of 2-4 MBA students would spend 100 man-hours over 3-5 months on a project submitted by “industry”, while being coached by professionals and having privileged access to a large information and people network.

EDANA had sponsored a project on medical nonwovens. The budding MBA's had analysed and modelled the production process and the value chain and subjected it to the Porter 5-forces analysis. They concluded it was, for both roll-goods and converted product producers, a relatively unattractive industry with low margins, high investments and huge competition. However if it could be located in an emerging country (instead of EU) and could differentiate itself by adding new services and technology, there could be high market growth potential. The main advantage of location in an emerging country would be wage rates, and so the rate of convergence of these wage rates with EU rates would affect the returns over the life of the project. These studies cost around €11,000, said to be nominal compared with consultants fees.

Getting More from MBO's

Chris Fuller, Director of Equilia Ltd (UK) described the principles of organising, running and exiting an MBO. He has lived through several management buy-outs and is now sharing his learnings. Equilia is his own company, formed after he left Accantia, a management buy-out of the Lil-let tampon business from Smith and Nephew. Accantia was formed in 2000, and sold the South African division of Lil-lets in a separate MBO. Exit strategy involved selling to a secondary buy-out in 2004 and the company was split in a further MBO in 2006.

The significance of MBOs was illustrated:

• €160 billion of MBO deals in 2006, up 25% on 2005.
• Private Equity now employs 2.8 million people in the UK , or 19% of the non-governmental workforce.
• For investors the returns have been outstanding, and for management, increased wealth, enjoyment and independence are typical benefits.
• PE funds easily outperform all the stock market indices over all intervals up to 10 years.

Health economics

Prof Hans Rosling of the Karolinska Institutet ( Sweden ) gave his now famous (You Tube, Google Video) talk using the “Gapminder” software to illustrate the relationships between health and wealth in all the countries of the world. A possible relevance to nonwovens came from his suggestion that the per capita GDP has to be above $10/day for disposable hygiene products to start to be sold. The paper was not in the proceedings, but the full performance can be viewed on the web at

http://www.gapminder.org/video/talks/ted-2007---the-seemingly-impossible-is-possible.html

The Life-Changing Web

Geleyn Meijer, Group Innovation Director – LogicaCMG (Holland) observed that the IT industry is going through a transition from providing products to providing services and thought in future personal care product provision would be replaced by provision of personal care services. Such innovations in service provision are not easy to achieve, but LogicaCMG, claiming to employ 40,000 people in 41 countries, has harnessed this enormous talent-pool to provide us with the following key principles to guide the process:

• “Half measures don't deliver innovation”
• “David can beat Goliath”
• “The internet gives power to the people”
• “Business model innovation does not come from consumers”
• “Simplicity is not easy”
• “A business innovation can be made to last”

The speech failed to support the original contention that personal care services would replace products. The text provided no examples of innovation from personal care industries. Neither followed EDANA's printed summary. There were no questions.

Calvin Woodings

3 rd October 2007