Nancy Jeffries, Contributing Editor07.20.15
Indie brands attract today’s consumers with their unique positioning and creativity, while entrepreneurs with the right combination of ingenuity and cutting edge technology lead the way. Cosmetic Executive Women (CEW) took a look at the entrepreneurs who are identifying white space in the market and how they are building their brands at a recent CEW Newsmaker Forum, held June 24, 2015, at New York’s Harmonie Club. The presentation, called Beauty Disruptors: Indies, emphasized points of difference in a busy beauty landscape.
CEW President Carlotta Jacobson said that while the organization usually invites the big beauty companies to speak on trends, the new newsmakers are the indies.
“The indies are the ones that are really making news,” she told attendees. “These women stand out among the crowd because of their passion and creativity when launching a new beauty brand, and we’re excited to learn more about the innovation in beauty coming from the smaller, indie brands.”.
Jacobson thanked sponsors, Arcade Beauty, Beauty Inc, Grace Beauty, Dermalogica, Martin Kartin & Company, WWD, Kaplow Communications and Departure; and introduced the evening’s participants, Vennette Ho, managing director at Financo, who provided the keynote address, and presenters, Jenny Frankel, founder and president of Nudestix; Dr. Roshini Raj, founder, Tula; and Sabrina Tan, founder, Skin Inc, Skin Supplement Bar.
What Makes a Brand Attractive for Acquisition?
To get the evening started, Ho noted that there is a noticeable acceleration of merger and acquisition (M&A) activity in the beauty market today, much of which is led by indie brands. She spoke of the acquisition by Unilever of Kate Somerville Cosmetics, Ren, and most recently Dermalogica.
“M&A is the backbone of the industry. L’Oréal has a value of 22.5 billion euros, and they have acquired such indies as Kiehl’s, Essie, Vichy and many more. However, they have developed three of their own brands,” noted Ho, affirming the value of indie brand acquisition. “The beauty industry is expected to grow by 2.3% over the next five years and will generate growth through acquisition,” she said.
What makes these smaller companies so attractive? According to Ho, indies are independent, free-thinking, individualistic, unconventional, unfettered, maverick, bold and unconstrained.
“Not every brand is a great target for acquisition though. It’s important to have an authentic, unique point of view, superior products, a passionate and loyal customer base, and significant growth opportunities,” she said.
Ho warned, however, that the pace of innovation is increasing, and so is the competition.
“Digital is leveling the playing field, and ideas, iPhone connectivity, and Instagram are key,” she maintained.
To be successful the indies must address long-term lifestyle trends, personalization, and health and wellness, all parts of the new beauty equation.
“Indies rule the world,” she said, citing the growth of Kiehl’s from a small apothecary in the East Village, to its current $800 million in revenue, since its acquisition by L’Oréal.
Likewise, Burt’s Bees, which has grown from its indie beginning to be in 30,000 retail outlets worldwide, since it was acquired by Clorox in 2007.
“Today’s indies are tomorrow’s powerhouses,” said Ho, noting that Financo thinks beauty is one of the most exciting opportunities to make things happen in the indie world.
The Independent Players
Jill Scalamandre, senior vice president, Philosophy Brand and chief marketing officer, Coty Prestige Skincare, and moderator of the evening’s presentation, began the panel discussion with Jenny Frankel, founder & president of Nudestix, who acknowledged her daughters, Ally and Taylor, as her muses for the brand. Frankel, a chemical engineer with more than 20 years of beauty experience, has held positions in R&D at MAC Cosmetics, as well as being executive vice president of Cover FX, a cosmeceutical complexion brand for skin conditions and sensitive skin, and since 2014 has been on a new journey with Nudestix.
In 2014 she returned to her passion and identified the white space in the cosmetics industry with innovative neutral tones and easy-to-use makeup products, in collaboration with her daughters. The streamlined makeup collection is designed to provide a quick and easy, nude look that works for all faces. Basing Nudestix on the premise that makeup should be fun, easy, and to go, Frankel characterizes Nudestix as a luxury brand that is fun, like “a cross between Chanel and Crayola.”
“We are a lifestyle brand. Our retailers are Space NK, Fred Segal, Urban Outfitters, Sephora (the primary global partner), Forever 21 and QVC,” explained Frankel.
The brand features products that have color, no box to throw away, and provide solutions for the consumer on the go who wants easy performance.
“Social media is key and Ally and Taylor take the lead in their social media channels, with their primary channel of choice being Instagram. There is a Facebook presence too, but Instagram is key,” said Frankel.
Nudestix won Best Product of the Year in the UK and Best Indie Brand at CEW this year.
Raj is a board-certified gastroenterologist and internist with a medical degree from New York University School of Medicine and an undergraduate degree from Harvard College. An attending physician at NYU Medical Center/Tisch Hospital and a clinical associate professor of medicine at the NYU School of Medicine, Raj has a special interest in women’s health and cancer screening, and is a regular contributor on the Today Show. She founded Tula in July 2014, recognizing the need for women to achieve balance in life. The healthy-living brand launched with a new skin care line, the first in a series of healthy living products.
Raj has drawn the connection between a healthy body and healthy skin. She says that good bacteria for digestion, immunity and weight loss, is directly linked to the health of the skin.
“Good bacteria can secrete antibacterial substances to help the skin defend itself against inflammation,” Raj explained.
The name, “Tula,” comes from the Hindi word for balance, which is at the heart of her brand proposition. Tula contains antioxidants, Omega 3, and probiotics, and is “a delicious meal for your skin,” says Dr. Raj. She tells the brand’s story on QVC.
Sabrina Tan, founder of Skin Inc, Skin Supplement Bar, is a global beauty entrepreneur with a technology background. Frustrated by her changing skin needs and overflowing skin care drawer, Tan, who hails from Singapore, began customizing her own skin serums in an effort to find a solution that worked for her delicate skin. After months of research, Tan created Skin Inc, Skin Supplement Bar, which combines skin care and technology allowing women to co-create a customized serum blend to meet their needs, based on a simple, online quiz. Tan’s digital platform enables users to decode their skin identity, based on how an individual sleeps, eats and lives. By identifying key points in a person’s life, users may customize their regimen and create a three-step program. The products use encapsulation in a patented technology and each is designed to deliver 100% efficacy with 0% fuss. Effectiveness, customization, and ease of use are the hallmarks of the brand.
Established in 2007, with headquartering R&D facilities in Japan, Skin Inc features 38 products ranging from high potency customizable serums to facial masks. With flagship stores in Singapore, Barcelona, Madrid and seven other cities, a presence in Sephora in more than 60 cities globally, and Singapore Airlines, Tan has overseen a swift and enthusiastic expansion.
Indie Brands Identify White Space
Scalamandre asked how each panelist had identified a white space in the beauty landscape and translated personal inspiration into products. In developing Nudestix, Frankel wanted to create a business that would connect with teens. She downloaded all of her daughters’ platforms and noticed that they were following lifestyle brands, not beauty brands, and learned that their interests had more to do with lifestyle they could relate to.
“It had to be effortless and easy for them, everything for them had to be imperfect, without a lot of tools,” said Frankel. This was key to creating a beauty brand that really spoke to the millennial generation.
“This generation wanted a brand with less coverage; one that required less time, let them look effortless, and be authentic,” said Frankel. “They even inspired the packaging. It’s the connection and the product that engaged them,” said Frankel, adding, “It’s not just about Millennials, it’s also about the mature woman.”
Raj felt in her practice that there is a strong connection between her patient’s inner and outer health. She wanted to get the healthy living message out to women.
“As a doctor, I’m science driven, so ingredients were very important,” she explained. “Probiotics is a burgeoning field, and inner-outer beauty is key. These were the major drivers in reaching a white space in the industry that would be a game changer.”
Tan looked at customized serum as a way to outsmart outdated skin care regimens, with dryness, aging, and hydration as her key goals.
“I wanted to bring value to a busy woman’s lifestyle with efficacious products. These products are for city, busy lifestyles, whether you are in Singapore, New York City, or Madrid. Without the luxury of time, this customized system enables the user to calibrate what she needs,” said Tan, adding, “Customization is the key. We don’t launch a product for the sake of newness, but rather because it is ‘skin-worthy.’”
Scalamandre cited Gene U, in London, where swabs are used in diagnostic skin care.
“It boils down to lifestyle. Our questions inquire about environment, lifestyle, and pollution,” said Tan. “Technology has made life easier, and has, for example at Sephora, enabled customers to see Step One, Step Two, and Step Three, so they can create the formula that fits into the environment they are in.”
Building Your Brand
Raj had two partners that funded Tula with her, to help get the brand started. In contrast, the first five years of Skin Inc were self-funded, and two years ago, as the brand grew, Tan realized that her company had to work on a globalization plan. Frankel shared that her motivations were different when she created Nudestix, however, she learned from her experience at Cover FX how to pace her growth, choose the right retail partners, and determine how to fund the company.
“It’s important to know where you have friendly money when you need it,” said Frankel, noting that with her dot com business, she’s way ahead of the original plan.
Raj noted the importance of building the brand in a meaningful way.
“With QVC this is a way to get people to really know what the products are about,” said Raj.
Frankel touted the value of multi-channels of distribution, noting that Nudestix became very global very quickly.
“Lifestyle is a different driver and QVC has been an excellent partner,” said Frankel.
Tan noted that deep engagement with consumers is most important for her brand. She said her alliance with Sephora has created a great synergy, noting that Sephora has been a progressive partner.
Frankel said that social media is an important part of brand building for Nudestix.
“Instagram is our biggest platform, with 20,000 followers after only eight months. Instagram is the top driver. We also use Facebook, however, differently, as well as Twitter, to share news very quickly,” said Frankel.
Nudestix also has a You Tube channel, as well as SnapChat, which is a fast way to share stories from a social perspective. In addition, Frankel cited top press, and dot coms as helpful for the brand.
“Social media enables the brand to keep it fresh and let the consumer get to know you,” added Frankel, who said that the brand also partnered with Ipsy to help people learn more about the products, and stated that the brand is really driven by her daughters’ voice. Raj, as a media-driven personality, wanted an organic way to use current venues to engage with the Tula brand, and share the message of balance that is behind the brand. Tan emphasized the importance of sharing personal tips with interactive content.
When asked where Frankel saw the Nudestix brand in the next five or twenty years, and whether she was in it for the long term, Frankel replied, “Right now, I’m thinking about the next 12-18 months. I don’t have a 20-year plan. We built this brand not with an exit strategy, but as a brand that works for now.”
Raj sees Tula growing into a health and lifestyle brand.
“I definitely want it to grow as a product line that creates wellness in a global space,” she said.
For Tan, the goal is simple and yet, extremely ambitious.
“I want to be the Apple of the skin care industry.”
CEW President Carlotta Jacobson said that while the organization usually invites the big beauty companies to speak on trends, the new newsmakers are the indies.
“The indies are the ones that are really making news,” she told attendees. “These women stand out among the crowd because of their passion and creativity when launching a new beauty brand, and we’re excited to learn more about the innovation in beauty coming from the smaller, indie brands.”.
Jacobson thanked sponsors, Arcade Beauty, Beauty Inc, Grace Beauty, Dermalogica, Martin Kartin & Company, WWD, Kaplow Communications and Departure; and introduced the evening’s participants, Vennette Ho, managing director at Financo, who provided the keynote address, and presenters, Jenny Frankel, founder and president of Nudestix; Dr. Roshini Raj, founder, Tula; and Sabrina Tan, founder, Skin Inc, Skin Supplement Bar.
What Makes a Brand Attractive for Acquisition?
To get the evening started, Ho noted that there is a noticeable acceleration of merger and acquisition (M&A) activity in the beauty market today, much of which is led by indie brands. She spoke of the acquisition by Unilever of Kate Somerville Cosmetics, Ren, and most recently Dermalogica.
“M&A is the backbone of the industry. L’Oréal has a value of 22.5 billion euros, and they have acquired such indies as Kiehl’s, Essie, Vichy and many more. However, they have developed three of their own brands,” noted Ho, affirming the value of indie brand acquisition. “The beauty industry is expected to grow by 2.3% over the next five years and will generate growth through acquisition,” she said.
What makes these smaller companies so attractive? According to Ho, indies are independent, free-thinking, individualistic, unconventional, unfettered, maverick, bold and unconstrained.
“Not every brand is a great target for acquisition though. It’s important to have an authentic, unique point of view, superior products, a passionate and loyal customer base, and significant growth opportunities,” she said.
Ho warned, however, that the pace of innovation is increasing, and so is the competition.
“Digital is leveling the playing field, and ideas, iPhone connectivity, and Instagram are key,” she maintained.
To be successful the indies must address long-term lifestyle trends, personalization, and health and wellness, all parts of the new beauty equation.
“Indies rule the world,” she said, citing the growth of Kiehl’s from a small apothecary in the East Village, to its current $800 million in revenue, since its acquisition by L’Oréal.
Likewise, Burt’s Bees, which has grown from its indie beginning to be in 30,000 retail outlets worldwide, since it was acquired by Clorox in 2007.
“Today’s indies are tomorrow’s powerhouses,” said Ho, noting that Financo thinks beauty is one of the most exciting opportunities to make things happen in the indie world.
The Independent Players
Jill Scalamandre, senior vice president, Philosophy Brand and chief marketing officer, Coty Prestige Skincare, and moderator of the evening’s presentation, began the panel discussion with Jenny Frankel, founder & president of Nudestix, who acknowledged her daughters, Ally and Taylor, as her muses for the brand. Frankel, a chemical engineer with more than 20 years of beauty experience, has held positions in R&D at MAC Cosmetics, as well as being executive vice president of Cover FX, a cosmeceutical complexion brand for skin conditions and sensitive skin, and since 2014 has been on a new journey with Nudestix.
In 2014 she returned to her passion and identified the white space in the cosmetics industry with innovative neutral tones and easy-to-use makeup products, in collaboration with her daughters. The streamlined makeup collection is designed to provide a quick and easy, nude look that works for all faces. Basing Nudestix on the premise that makeup should be fun, easy, and to go, Frankel characterizes Nudestix as a luxury brand that is fun, like “a cross between Chanel and Crayola.”
“We are a lifestyle brand. Our retailers are Space NK, Fred Segal, Urban Outfitters, Sephora (the primary global partner), Forever 21 and QVC,” explained Frankel.
The brand features products that have color, no box to throw away, and provide solutions for the consumer on the go who wants easy performance.
“Social media is key and Ally and Taylor take the lead in their social media channels, with their primary channel of choice being Instagram. There is a Facebook presence too, but Instagram is key,” said Frankel.
Nudestix won Best Product of the Year in the UK and Best Indie Brand at CEW this year.
Raj is a board-certified gastroenterologist and internist with a medical degree from New York University School of Medicine and an undergraduate degree from Harvard College. An attending physician at NYU Medical Center/Tisch Hospital and a clinical associate professor of medicine at the NYU School of Medicine, Raj has a special interest in women’s health and cancer screening, and is a regular contributor on the Today Show. She founded Tula in July 2014, recognizing the need for women to achieve balance in life. The healthy-living brand launched with a new skin care line, the first in a series of healthy living products.
Raj has drawn the connection between a healthy body and healthy skin. She says that good bacteria for digestion, immunity and weight loss, is directly linked to the health of the skin.
“Good bacteria can secrete antibacterial substances to help the skin defend itself against inflammation,” Raj explained.
The name, “Tula,” comes from the Hindi word for balance, which is at the heart of her brand proposition. Tula contains antioxidants, Omega 3, and probiotics, and is “a delicious meal for your skin,” says Dr. Raj. She tells the brand’s story on QVC.
Sabrina Tan, founder of Skin Inc, Skin Supplement Bar, is a global beauty entrepreneur with a technology background. Frustrated by her changing skin needs and overflowing skin care drawer, Tan, who hails from Singapore, began customizing her own skin serums in an effort to find a solution that worked for her delicate skin. After months of research, Tan created Skin Inc, Skin Supplement Bar, which combines skin care and technology allowing women to co-create a customized serum blend to meet their needs, based on a simple, online quiz. Tan’s digital platform enables users to decode their skin identity, based on how an individual sleeps, eats and lives. By identifying key points in a person’s life, users may customize their regimen and create a three-step program. The products use encapsulation in a patented technology and each is designed to deliver 100% efficacy with 0% fuss. Effectiveness, customization, and ease of use are the hallmarks of the brand.
Established in 2007, with headquartering R&D facilities in Japan, Skin Inc features 38 products ranging from high potency customizable serums to facial masks. With flagship stores in Singapore, Barcelona, Madrid and seven other cities, a presence in Sephora in more than 60 cities globally, and Singapore Airlines, Tan has overseen a swift and enthusiastic expansion.
Indie Brands Identify White Space
Scalamandre asked how each panelist had identified a white space in the beauty landscape and translated personal inspiration into products. In developing Nudestix, Frankel wanted to create a business that would connect with teens. She downloaded all of her daughters’ platforms and noticed that they were following lifestyle brands, not beauty brands, and learned that their interests had more to do with lifestyle they could relate to.
“It had to be effortless and easy for them, everything for them had to be imperfect, without a lot of tools,” said Frankel. This was key to creating a beauty brand that really spoke to the millennial generation.
“This generation wanted a brand with less coverage; one that required less time, let them look effortless, and be authentic,” said Frankel. “They even inspired the packaging. It’s the connection and the product that engaged them,” said Frankel, adding, “It’s not just about Millennials, it’s also about the mature woman.”
Raj felt in her practice that there is a strong connection between her patient’s inner and outer health. She wanted to get the healthy living message out to women.
“As a doctor, I’m science driven, so ingredients were very important,” she explained. “Probiotics is a burgeoning field, and inner-outer beauty is key. These were the major drivers in reaching a white space in the industry that would be a game changer.”
Tan looked at customized serum as a way to outsmart outdated skin care regimens, with dryness, aging, and hydration as her key goals.
“I wanted to bring value to a busy woman’s lifestyle with efficacious products. These products are for city, busy lifestyles, whether you are in Singapore, New York City, or Madrid. Without the luxury of time, this customized system enables the user to calibrate what she needs,” said Tan, adding, “Customization is the key. We don’t launch a product for the sake of newness, but rather because it is ‘skin-worthy.’”
Scalamandre cited Gene U, in London, where swabs are used in diagnostic skin care.
“It boils down to lifestyle. Our questions inquire about environment, lifestyle, and pollution,” said Tan. “Technology has made life easier, and has, for example at Sephora, enabled customers to see Step One, Step Two, and Step Three, so they can create the formula that fits into the environment they are in.”
Building Your Brand
Raj had two partners that funded Tula with her, to help get the brand started. In contrast, the first five years of Skin Inc were self-funded, and two years ago, as the brand grew, Tan realized that her company had to work on a globalization plan. Frankel shared that her motivations were different when she created Nudestix, however, she learned from her experience at Cover FX how to pace her growth, choose the right retail partners, and determine how to fund the company.
“It’s important to know where you have friendly money when you need it,” said Frankel, noting that with her dot com business, she’s way ahead of the original plan.
Raj noted the importance of building the brand in a meaningful way.
“With QVC this is a way to get people to really know what the products are about,” said Raj.
Frankel touted the value of multi-channels of distribution, noting that Nudestix became very global very quickly.
“Lifestyle is a different driver and QVC has been an excellent partner,” said Frankel.
Tan noted that deep engagement with consumers is most important for her brand. She said her alliance with Sephora has created a great synergy, noting that Sephora has been a progressive partner.
Frankel said that social media is an important part of brand building for Nudestix.
“Instagram is our biggest platform, with 20,000 followers after only eight months. Instagram is the top driver. We also use Facebook, however, differently, as well as Twitter, to share news very quickly,” said Frankel.
Nudestix also has a You Tube channel, as well as SnapChat, which is a fast way to share stories from a social perspective. In addition, Frankel cited top press, and dot coms as helpful for the brand.
“Social media enables the brand to keep it fresh and let the consumer get to know you,” added Frankel, who said that the brand also partnered with Ipsy to help people learn more about the products, and stated that the brand is really driven by her daughters’ voice. Raj, as a media-driven personality, wanted an organic way to use current venues to engage with the Tula brand, and share the message of balance that is behind the brand. Tan emphasized the importance of sharing personal tips with interactive content.
When asked where Frankel saw the Nudestix brand in the next five or twenty years, and whether she was in it for the long term, Frankel replied, “Right now, I’m thinking about the next 12-18 months. I don’t have a 20-year plan. We built this brand not with an exit strategy, but as a brand that works for now.”
Raj sees Tula growing into a health and lifestyle brand.
“I definitely want it to grow as a product line that creates wellness in a global space,” she said.
For Tan, the goal is simple and yet, extremely ambitious.
“I want to be the Apple of the skin care industry.”