Website Closers® presents a Beauty & Skincare Brand that seeks to tackle issues Men and Women have with aging skin using a laser-focused array of products that have proven themselves time and time again. Using eCommerce as their primary sales channel and Social Media to drive traffic, this business is Direct to Consumer, solely selling via its Shopify Website, leaving Amazon.com as low hanging fruit for those buyers with an expertise in the Amazon 3rd Party Sellers realm. A key to their success are their video tutorials demonstrating how the products are used. Those videos were a huge success in driving conversions on social media and the company’s affiliates marketing program. The appeal of using social media to market beauty products is obvious from this company’s rapid 35% growth rate. The brand now markets 14 SKUs and is testing new ones. While women initially made up their core audience, men have become a growing part of the customer base as well.
This brand operates within a massive industry. The global skincare market was valued at $98.83 billion in 2020 and is projected to grow from $100.13 billion in 2021 to $145.82 billion in 2028, an amazing growth rate. The market includes creams, lotions and powders designed to improve the quality and health of skin for men and women, moisturizing, hydrating, and nourishing. Surveys indicate that 65% of women in the U.S. use skincare products every day, and 37% of men do as well.
During the start of the pandemic in 2020 when people were staying at home more, a lot of women and men took a stronger interest in their skin care, and many are open to trying to new products. A major trend in the past few years has been celebrities endorsing new skincare products or launching their own skincare brands, causing sales of those products to skyrocket. Before buying something new, consumers want a sense that it’s going to work.
This brand gave them just that, which is how they built up such a loyal following so quickly. How they got to this point is an interesting story. The brand sources its skincare products from companies in the U.S., and its beauty tools from China. All products are branded with the company’s name and logo on it. The company tested the tools and products first, using them for about six months before selecting the best ones that eventually make it to the marketplace.
The brand now has 14 SKUs which include a hot mist steamer, a face vacuum cleaner, facial rollers, and 7 skincare products that include moisturizers, cleansers, masks, toner, nighttime serums, face scrubs and collagen powders. The hot mist steamer has become their top selling product, representing 80% of revenue. Their average order value is $56.77.
This brand is a great example of how effective social media posts can be for all types of health and beauty products. The brand used photos and videos to demonstrate how impressive facial skin looks after using their SKUs, how the products can prevent skin from drying and hide signs of aging. The posts also included testimonials from customers who highly recommend their products and promotions on Product Bundles that can save money.
Their tutorial videos, highly popular on Instagram, demonstrate how the products are used, and what to expect afterwards, and have gotten a much better click through rate. One video, featuring a male ambassador describing how the steamer helps his beard, has done exceptionally well. In fact, while the company’s demographics are mainly women between the ages of 24-44, the company has started getting more and more male customers in recent months.
The videos have been enormously effective in diving sales and organic traffic, and the company is now averaging 18,000+ monthly visits to their Shopify website, which is their sole sales platform.
The company uses an affiliate marketing program that invites brand ambassadors to try their products. So far, more than 185 ambassadors have signed up, which has been instrumental in not just driving traffic to their Instagram feed but also in boosting sales. The brand has seen profits shoot up by 35% recently.
The company is starting to see past buyers return to make new purchases as their Repeat Customer Rate is now on the rise. The addition of new skincare products was designed to upsell to their existing audience, and the company is exploring new products to add, including an oxygen facial tool.
As the company has improved its brand recognition through social media, sales have remained steady. The fourth quarter of 2020 provided the brand with a major spike in sales as their SKUs became ideal holiday gifts. The winter weather also helped, encouraging more customers to purchase their hot mist steamer.
The company itself is smoothly run and highly automated. The company buys new inventory about once a month, and now ships up top 100 packages a day. They always maintain an inventory of between 1,000 and 5,000 units, and in the busy season it can take less than a month for inventory to turn over. The primary tasks for this business include shipping orders, handling customer service, doing email marketing, creating content for social media, and managing those platforms.
This is the perfect opportunity to take a young company that hit the ground running and quickly generated recurring revenue, develop more products, and scale rapidly – especially using Amazon and its lower Customer Acquisition Costs as the primary driver of next step growth. Since the brand’s social media platforms are booming, the company could recruit new social media influencers to boost brand awareness and help drive conversion rates.
There is also an opportunity to send samples of their products to top health product retailers such as Birchbox and Ipsy for the promotional value that offers. Two other digital marketing opportunities exist. The company could launch its first SEO program, having the website fully optimized with keywords to boost search engine ranking, and posting their tutorial videos on popular site such as YouTube and TikTok, introducing their products to the vast audience on both channels.
This is a company that rose quickly because the brand fully understood what its audience wanted, and delivered. The owner, having become the face of the brand through the video tutorials, is eager to become part of a larger team and retain equity in the business, while helping to guide a buyer to future success.
