Financial Times 06Mar2020

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2 ★ † FINANCIAL TIMES Friday6 March 2020

Women in Business


E


ntrepreneur Marcia Kilgore
was strolling through Milan
train station five years ago,
carrying a backpack of free
skincare and make-up sam-
ples after a visit to an Italian cosmetics
manufacturer.
Walking into Sephora, the multi-
national chain of beauty stores, she
noticed that the same beauty products
as the samples in her bag were on sale
for many times what it cost to make
them.
“The system is broken when someone
has to pay this much to get something
decent and it’s 10 or 20 times produc-
tion costs,” Ms Kilgore says.She is
speaking at the London head office of
Beauty Pie her latest venture. Behind
her, a large wall calendar outlines the
cosmetics company’s new launches
stretching ahead for the year.
At the time the Canadian-born serial
entrepreneur had recently sold Soap and
Glory, a line of affordable bath, body and
cosmetic products, to Alliance Boots, the
health and beauty retailer. She was also
becoming disillusioned at the outlook
for retail. Smaller brands were finding it
tougher to negotiate with their retail
partners as the rise of Amazon and
ecommerce stole away store footfall.
“You’ve got the monopolies, with
these big beauty retailers like Sephora
and Boots Walgreens,” says Ms Kilgore.
“They own a lot of their own brands and
those are the ones that they really push
[because] it’s better margin for them.”
At the same time, US start-ups such as
online clothing retailer Everlane and

prescription glasses maker Warby
Parker had shown how brands could use
transparent pricing o cut out inter-t
mediaries and target the market
directly. On top of that, consumers were
becoming used to paying monthly
membership fees to access anything
from razors (Dollar Shave Club) to
music (Spotify) and movies (Netflix).
In December 2016 Ms Kilgore
launched Beauty Pie, a self-styled “fairy
tale” club for beauty junkies in the UK.
Memberspay a monthly membership
fee of between £10 and £50, which lets
them buy — at cost price — make-up
and a growing roster of products includ-
ing skincare, haircare and candles.
By sourcing these directly from the
manufacturers, cutting out the inter-
mediaries and avoiding expensive real
estate and advertising costs, the busi-
ness showed consumers the true cost of
cosmetics and turned the industry’s
traditional model on its head.
Ms Kilgore says: “Some people would
care that the industry would be very
upset with them, but I have always been

a bit of an outsider and did my own
thing.”
Warm in manner, and with glowing
skin, Ms Kilgore bursts with ideas.
Beauty Pie is her fifth start-up in less
than three decades nd follows Blissa
Spa, Soap and Glory, FitFlop footwear
and Soaper Duper, which makes natu-
rally-derived bath and body products.
She grew up in Saskatchewan in west-
ern Canada. Her father died when she
was 11 and she graduated second in her
class in high school while holding down
three part-time jobs. Aged 17, she
arrived in New York with $300 in her
pocket.Missing a student loan applica-
tion deadline led to working as a per-
sonal trainer and taking part-time eco-
nomics classes.
The idea for Bliss Spa, her first entre-
preneurial venture, came after a bad
facial treatment experience. “It was
supposed to be a treat,” she says. “But I
was totally skin shamed and talked into
buying a lot of products. I left thinking
that if I had a place like that I would
never make people feel so bad.”
She took a crash course in skincare
and opened Bliss Spa in 1993. The busi-
ness grew rapidly through word of
mouth and soon gathered a roster of
celebrity clients, including Oprah Win-
frey, Madonna and Uma Thurman.
Ms Kilgore was credited with revolu-
tionising the urban day spa industry
and at the age of 29 she appeared on the
cover of Canadian Time magazine as an
emblem of a new generation of gutsy
entrepreneurs.In 1999, she sold a
majority stake in Bliss Spa to luxury
group LVMH.
She recalls the surreal feeling of
returning to New York by Concorde
after LVMH had flown her to Paris. Tak-
ing the subway home, she “looked
around and wondered if anyone else
had come on the Concorde that day”.
The common thread that unites all
Ms Kilgore’s start-ups iscreating an

experience or the product that she
would want herself. “I just always make
stuff that I want to buy,” she says.
“That’s the easiest way. I don’t know if I
would be so successful selling things
that I either don’t want, don’t under-
stand or am not so interested in.”
Beauty Pie has grown to tens of thou-
sands of members and on March 12 it
will launch a pop-up at Harvey Nichols
in London. Now based in Switzerland,
Ms Kilgore declines to reveal revenues,
saying: “If you compared it to a retail
business, it would be about £150m, but
because we don’t charge a mark-up,
we’re about a 10th of that.”
Until now, Ms Kilgore has not taken
any external funding for any of her ven-

Beauty disrupter who


offers luxury for less


Entrepreneurship


Marcia Kilgore cut out


intermediaries to create


Beauty Pie, writes


Harriet Agnew


Late 1980s pens Let’s Face It!,O
a skincare treatment centre
1996 aunches Bliss SpaL
1999 ells majority stake in BlissS
Spa to LVMH
2004 tarwood buys Bliss SpaS
2006 aunches Soap and GloryL
2007 ounds FitFlop footwearF
2014 lliance Boots buys Soap andA
Glory
2016 aunches Soaper DuperL
2016 ounds Beauty PieF

Key dates


‘You shouldn’t have to spend a lot or be rich to take care of your skin’: Marcia Kilgore— Charlie Bibby for the FT

On a prominent wall in the Foreign
Office in London hang a series of por-
trait mirrors, each labelled with a senior
diplomatic role that has not yet been
held by a woman.
The Foreign and Commonwealth
Office installed the mirrors in 2018 to
encourage its female staff to stand in
front and “see themselves” in coveted
roles, such as ambassador in Paris or
permanent under-secretary of the
whole government department.
In a highly symbolic moment, the
mirror for ambassador to Washington,
one of the most coveted and most dem-
anding, will shortly be replaced with a
picture of Karen Pierce as she becomes
the first woman to take on the job.
Currently the UK’s permanent repre-
sentative to the UN, Dame Karen has
been posted to Tokyo, the Balkans and
Geneva since joining the FCO in 1981.
She was also the UK’s first female
ambassador to Afghanistan in 2015 and
2016.
While experience in countries with
warring factions is not essential to
securing a top FCO posting, the biparti-
san hostility between Democrats and
Republicans in the US leads one diplo-
matic official to observe that her “con-
flict zone experience could be useful”.
Dame Karen also takes over at a time
when the long standing “special rela-
tionship” between London and Wash-
ington is under strain.
The UK has been without an ambas-
sador to Washington since theembassy
was shaken by the resignation of Kim
Darroch last year, when he was forced
to quit after confidentialcriticism of US
president Donald Trump was heavily
leaked.
Former colleagues say the appoint-
ment of Dame Karen, whom they com-
mend for “gravitas” and “poise” as well
as a “top class brain”, could not come at
a more crucial time. Mr Trump
expressed hisfurylast month to UK
prime minister Boris Johnson after he
ignored US warningsand granted the
Chinese telecoms company Huawei
access to Britain’s future 5G mobile
phone networks.
“One of Karen’s best assets is that she
has presence and force,” says Alexandra
Hall Hall, former British ambassador to

Georgia and former Brexit counsellor at
the British embassy in Washington.
“What Karen brings is real policy heft
married with a compelling personal
style. She’s coming at an incredibly diffi-
cult time, so having some charm to
defuse awkward situations and person-
alise the relationship with warmth is
really important.”
Hinting at one challenge, Ms Hall Hall
adds: “I don’t doubt her ability to sell,
the question will be what the govern-
ment is selling.”
Dame Karen’s style also sets her apart:
she wore a feather boa at a meeting of
the UN Security Council and is known
for brightly coloured outfits. Just weeks
into the UN job, she made headlines
worldwide by trading barbs with Rus-
sia’s UN ambassador following the Salis-
bury poison attack.
As ambassador to Washington, there
is a public and a private role. The public
diplomacy requires making speeches
and an ability toengage the thousands

of guests hosted in the British embassy
every year. Dame Karen is known for
her socialising— “she likes a party”, says
a friend — and media profile. She is a fre-
quent interviewee on US cable news
channels including Fox News. “Ameri-
cans like her,” says one colleague.
But behind the scenes, any ambassa-
dor takes on a substantive policy role in
which they are expected to articulate
ideas and arguments persuasively and
in depth with leading policy experts.
“It requires an extraordinary level of
expertise and the ability to master briefs
on a whole host of issues,” says one
former ambassador.“When your coun-
try is advocating a policy or a decision
you know is going to be unwelcome by
your host government, that can be very
difficult. You may also challenge a host
country on their human rights record,
when at the same time working towards
building a relationship.”
Another part of the job involves
reporting back to London on the reac-
tion of the host country to a British pol-
icy, as well as being required to warn the
government if you believe the UK’s
stance could cause problems.
Dame Karen s the first woman to bei
appointed to any of the four top jobs in
the diplomatic service, a move that
would have been unimaginable less
than 50 years ago.
For a start, she is married. Until 1973,
a strict “marriage bar”— maintained
while dropped by other Whitehall
departments —meant Britain’s female
diplomatshad to choose between pro-
fessional ambition and a husband.
Today, 61 female ambassadors and
high commissioners represent Britain
abroad. The number has increased al-
most three-fold in 10 years, and repre-
sents 31 per cent of all heads of mission.
Barbara Woodward, ambassador to
China, is one of a number of high profile
women representing Britain overseas
in prominent roles. Half the UK’s
ambassadors in Africa are women,
including NneNne Iwuji-Eme, Britain’s
first black female high commissioner,
in Mozambique.
“Championing women and diverse
leadership is a priority for the FCO,” said
Sir Simon McDonald, the department’s
most senior civil servant, after Dame
Karen’s appointment. “Whether it’s a
young woman starting her first diplo-
matic placement, or a new ambassador
to Washington, we support our staff, so
they can best represent Britain’s inter-
ests around the world.”
He plans to be present when the mir-
ror for the Washington job is replaced
with Dame Karen’s photograph.

First female ambassador to US


mirrors change in UK diplomacy


Diplomatic service


Karen Pierce’s move to one
of the most coveted jobs for
an envoy is a breakthrough,
writesLaura Hughes

The Financial Times is launching its
eighth annual Women in Business
essay competition in partnership
with the 30% Club nd Henleya
Business School. The prize is a fully
funded place on Henley’s part-time
Executive MBA programme, with
the winner announced in the FT in
the autumn.
The competition is open to
women and men who have relevant
experience.Entrants should answer
this question in no more than 800
words: “How can organisations help
women succeed by involving more
men in their efforts? What
strategies and actions are most and
least helpful?”
Entries should be sent to
[email protected] by May 18 2020.
Terms and conditions can be found
at:hly.ac/WiLscholarship

Win a free EMBA


Essay competition


Sevdil Yildirim was in talks with the
owners of a Turkish furniture maker
two years ago when they made a confes-
sion. They wanted to appoint her as
chief executive but ere worried that aw
female boss would not be taken seri-
ously in the sector.
“I loved it because they were honest,”
says Ms Yildirim, who had erved on thes
company’s board. “Most people don’t
say these things openly, they make
excuses.”
Six months later, the owners of AGT
Industry and Trade took the plunge and
appointed her anyway. Under her lead-
ership, AGT has more than doubled pro-
duction capacity and greatly increased
the number of export destinations.
Ms Yildirim is helping to blaze a trail
in a country where female labour force
participation is steadily rising, albeit
from a low base. The rise includes sect-
ors that often struggle to attract women,
such as engineering and science.
But, as she points out, women remain
under-represented, especially at the
higher levels of business, politics and
government. “It’s hard to say that we
have equal chances to be the main deci-
sion makers.”
Turkey outperforms the European
average in terms of itsratio of female to
male cientists and engineers. But Ebrus
Ozdemir, chairwoman of Ankara-based
infrastructure company Limak Invest-
ments, wants to see more women work-
ing n the field.i
In 2015, Ms Ozdemir started a scheme
to sponsor and mentor 100 young
female engineering studentsa year from
across Turkey. Her aim is to help them
into male-dominated parts of the busi-
ness, especially energy and cement, and
on construction sites.
Ms Ozdemir is a civil engineering
graduate, aised in a family of engineers.r
In 2010, she was appointed to head the
board of the business, which her father
co-founded in 1976. Limakcompanies
employ around 60,000 people.

She has two children, now eight and
10 years old. Her son was born while
she was working on-site on the con-
struction of Istanbul’s Sabiha Gokcen
airport, and she returned to work a
week after his birth. “My mother was
joking that... we should have called
him Sabiha.”
Ms Ozdemir concedes she is lucky —
as a senior executive she can afford “a
lot of help”. For the young women on the
mentoring scheme without such resour-
ces, her “biggest fear” is that they will
drop out if they get married and have
children. “We have to make the utmost
effort for them not to leave,” she says.
Plans involvereviews of the company’s
gender pay gap and work-life balance.
Analysts blame a severe shortage of
affordable childcare as one of the main
reasons why Turkey consistently lags
behind the OECD average rate of female
participation inthe workforce. At 34 per
cent, it had the worst rate in the group of
mostly wealthy nations in 2018. It also
comes eighth from bottom in terms of
the female share of seats on boards of

the biggest publicly listed companies,
according to the OECD, although it per-
forms better than many emerging mar-
ket peers.
Yet Gunes Asik, an assistant professor
of economics at Ankara’s TOBB Univer-
sity of Economics and Technology, says
she is “positive” about the underlying
trend. Turkey’s headline statistics are
distorted by underemployment among
older women, she says. “Younger gener-
ations have more skills, they are more
open to [the idea of] work.”

PresidentRecep Tayyip Erdogan, who
came to power in 2002, regularly pro-
vokes criticism by women’s rights org-
anisations for his frequent appeals to
women to have at least three children
and for describing those who are not
mothers as “incomplete”.
Yet the presidenthas enabled greater
female employment by overseeing a big
expansion inuniversity places. e alsoH
lifted a banon wearing the headscarf at
university, which had acted as a barrier
to women from conservative families.
Attitudes among men, especially
from more traditional backgrounds, will
be crucial to further change.
That is why Nur Ger, the 63-year-old
founder of Istanbul-based fashion pro-
ducer Suteks Group, decided two years
ago to set upYanindayiz “we are at(
your side”). It aims to bring men into
the conversation on women’s rights. She
says the primary obstacle to greater
equality in Turkey is a “patriarchal
mindset” that harms not just women
but also men.
Ms Ger, who started Suteks in 1986,
has recruited a string of high-profile
male business leaders, journalists, law-
yers and other professionals to talk
about equality and women’s rights with
their peers. They give “barbershop”
talks to young people about patriarchy
and violence against women, and cam-
paign for regulatory and social change.
While she laments the scale of the
challenge, she also believes that atti-
tudes are rapidly changing.
She was stunned on a recent visit to an
outdoor café in a conservative district of
Istanbul, when one “macho-looking”
man was giving his baby a bottle while a
male friend played with his young
daughter. The mothers werenowhere to
be seen.
“You couldn’t see that 20 years ago —
not even 10 years ago,” Ms Ger says.
“The change is like the boiling of water.
Until the boiling point you don’t see it.
Then, suddenly, there is steam.”

Women


push for


influence


in Turkey


Country focus


From manufacturing to
fashion, pioneering female
business leaders are opening
up opportunities, writes
Laura Pitel
Ebru Ozdemir: supporting female engineering students— Bradley Secker for the FT

One ‘macho-looking’ man
was giving his baby a bottle,

while a male friend played
with his young daughter

On making mistakes:‘The
worse it is, the faster you learn’

On mentors:‘I try to have
everyone as a mentor. You
learn from how people deal
with others, and you learn from
all your interactions’

On networking:‘Show up. Just
go. The more people you know,
the more information you have
read... the faster your
opportunities open up’

In her own words


tures — because “I didn’t have to” — but
this time she is exploring teaming up
with an investor. This would help
address the difficulties she has encoun-
tered in hiring people with enough
experience working for “direct-to-con-
sumer” brands.
“It seems that if you don’t have a ven-
ture partner you don’t tap into this pool
of really great talent,” she says.
Beauty Pie now employs more than
50 people in London and plans to
expand in the US.
“I’ve always been about trying to give
women more confidence. You shouldn’t
have to spend a lot or be rich to take
care of your skin and treat yourself to
beauty products.”

MARCH 6 2020 Section:Reports Time: 3/3/2020- 18:37 User:harriet.arnold Page Name:WAB2, Part,Page,Edition:WAB, 2, 1

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