![]() ![]() In fact, the beauty industry is so diverse and fragmented, with so many brands and endless communication channels, that it has found its place in essentially every household in the modern world via both mass (drugstore) products and premium lines. By definition, this includes makeup, cosmetics, skincare, haircare, and even extends to fragrances and deodorants- and is not limited by age, gender, nor cultural background. After all, with cosmetics being one of the categories more sensitive to consumer taste, it’s important to keep up with consumer needs in order to succeed long term.In the era before the new normal – otherwise known as the year 2019 – the global cosmetics market was valued at $380.2 billion. The trick is to quickly succumb to going public or a major liquidity event before someone like Amazon takes over the category. Matchco was quickly acquired by Tokyo-based Shiseido last year for an undisclosed sum.įor these “tech beauty” brands, appealing to millennials’ hunger for customizable, minimalist aesthetic is just the beginning, Blankenship explained. Take, for example, Matchco, a San Francisco-based startup that allows consumers to scan their face to create a custom foundation for their exact skin shade. Glossier could not be reached for comment for this story.Įven if taking the company public isn’t in the cards for those enduring in this category, exit prospects are still bright. Indeed, Glossier is set to open a flagship store in New York City and just opened a second in Los Angeles, implying on-the-ground expansion is on the horizon. With the right strategy, these companies can use their massive funding to go to the next level, Blankenship explained. “The beauty industry is looking for a more personalized way to empower its independent entrepreneurs,” McCloskey explained.Ĭosmetics and grooming are naturally sticky categories. Styleseat helps consumers find a customized service, such as booking a stylist for a certain type of braid, in 15,000 cities since its launch in 2011. While its platform caters to beauty professionals’ needs, as opposed to consumers directly, there has been a massive transformation in this space, CEO Melody McCloskey told Crunchbase News. ![]() StyleSeat, an online marketplace that helps beauty and wellness professionals connect with clients, has found similar success. ![]() The company’s aforementioned round came on the heels of its success using its online community to create cosmetic products that appeal to the coveted 18 to 34-year-old market, a spokesperson told Crunchbase News. Memebox, a former K-Beauty seller turned online product community, closed an impressive $60 million Series C round led by Formation Group, which brought the company’s total funding to nearly $100 million. “The profit margins of beauty and cosmetics are so high, especially compared to perishables, which attracts investors to these fresh startups longterm.” Considering the long shelf life of cleansers and lipstick, it’s no wonder this crop of e-commerce startups are faring better than the likes of Blue Apron or Juicero.Īnd it’s not just the “big names” that are attracting millions in funding these days. ![]() “I believe this is the coolest, most interesting category around right now,” Ross Blankenship, a venture capitalist at Angel Kings, told Crunchbase News. Deciem, which declined to comment on the round for this story, is experiencing successful trickle down to its other subsidiary brands despite a PR crisis involving CEO Brandon Truaxe. Not far behind Glossier is cult favorite Deciem-the Toronto-based umbrella company responsible for breakout (pun) skincare line The Ordinary-which has attracted funding from cosmetic giant Estée Lauder. According to a SimilarWeb report, “Average monthly visits in Q4 2017 were three times higher than the same quarter in 2015.” Not bad for a three-year-old brand born out of a beauty blog and known for relying heavily on social media and a virtual ambassador program. The $52 million Series C brought Glossier’s total valuation to $400 million in March. This is the coolest, most interesting category around right nowįirst up is Glossier-arguably the hottest cosmetic startup of the moment-which is said to be on the verge of an IPO thanks to its latest funding round. ![]()
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