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The direct-to-consumer model n n n Retail bloggers to build a relationship.” The advantages of the internet are clear: platform to test the market. “We initially Commodity,” he adds. had zero intention of ever setting foot in the “It’s not either-or [traditional retail or internet], brands can reach out to a massive audience traditional retail space. However, in 2014, sometimes you start with one and you evolve at little cost and use it to test the market, build the Try At Home Fitting Kit program [which into another,” says Liebmann. What is essential awareness, raise funds or tweak products before allows consumers to test fragrance samples] whether it be socially online or in a physical a retail launch. “It’s building the brand story, did so well on social media that it caught the location, is that the brand builds awareness, whether that’s traditional media or social media attention of retailers,” recalls Commodity ceo she stresses. and that doesn’t go away just because you sell it Ash Huzenlaub. The strategy to launch on Online selling, however, necessitates a long- without a store infrastructure,” says Liebmann. Kickstarter not only helped test market reaction term vision. “It is not so diffcult to launch a Start-up fragrance brand Commodity, which to the concept, but also provided awareness for brand, it is diffcult to make it known and to was originally conceived as an internet brand, the company, comments Huzenlaub. “It was at sell it,” says Azucena Pagny, founder of French launched on the Kickstarter crowdfunding that time that LVMH’s Sephora learned about skincare brand Rosazucena. Although the brand has had distribution offers, it has chosen to focus efforts on selling from its website where it can ensure how the brand is presented and Case studies that it can meet the demand. “We decided to Michelle Phan’s digital direct sales continue to sell only online because it is working. YouTube beauty star Michelle Phan’s em cosmetics We’ve had propositions [to go into retail], but it’s brand spearheaded digital direct selling in 2013, complicated to fnd a niche,” says Pagny. “We launching only on the internet with a strategy to need to go slowly and carefully so as not to be capitalize on online social engagement trends. out of stock all the time.” Although Phan’s YouTube fan base of some 4.5 Indeed, the popularity of a brand on social million at the time of the brand’s launch ensured media can challenge a young company’s a community following from the get-go, the resources to deliver. Following its entry into brand was said to be priced a little too high out Sephora, Commodity ran out of stock. “You of its consumers’ reach, according to experts. The can never forecast when someone with a large STAY INFORMED WITH OUR L’Oréal-owned brand now ships internationally and following will tweet or rave about your brand. is sold on Amazon’s Luxury beauty store in Europe. That happened to us a few times and it is a luxury problem to have,” says Huzenlaub. DAILY NEWS SERVICE Glossier builds brand on web popularity The blog Into the Gloss used its popularity on Branded stores & beauty parties social networks (200K Instagram followers, Aside from the internet, brands are looking to more than 56,000 Facebook likes, and 15,000 have their own store where they can properly YouTube subscribers) to create a skincare showcase their products or where they don’t News headlines daily on www.bwconfidential.com brand called Glossier inspired by its digital have to negotiate with distributors. friends. According to online marketing company But going into the brick-and-mortar business Stylophane, it is the ninth fastest-growing beauty also opens up a new set of challenges, points • All major news on the industry published every day on our website brand on Pinterest, with more than 37,000 out Liebmann. “On the one hand you end up subscribers. Sources say Into The Gloss converted in the real-estate business—everything about • News headlines complement analysis and interviews in our 28,000 new Instagram followers into customers. location, service, the cost of managing the electronic publication and print magazine physical space—and then you have to ask yourself is one store enough, so it is a totally • BW Confidential is the destination for keeping up-to-date with Stowaway connects with consumers different strategy that you have to think US-based brand Stowaway sells products about. And that’s just one piece of the puzzle,” what’s going on in the industry and staying ahead of the competition in sizes that can be easily carried and used up before their expiration date. “By selling explains Liebmann. Another area that is seeing traction is the directly to our consumer we can offer quality home party distribution model. For example, Daily news on www.bwconfdential.com at a size women want, which saves them money and reduces waste,” says co-founder UK-based My Showcase curates a selection of @BWCbeautynews around 30 beauty brands that are sold through Julie Fredrickson. Launched in 2015, social media has been driving traffc to the site. The a network of independent stylists at what it calls private showcases in homes and offces and company does not have plans to enter retail, through MyShowcase.com. The company says BW Confidential, the inside view on the international beauty industry but will not rule it out later on. its brings together a direct-sales approach with • • • The website - daily news The electronic publication - every two weeks The print magazine - four times a year 66 November-December 2015 - N°24 - BW Confidential