NEW YORK — Breaking into the mass-market color cosmetics business is not for the faint of heart. Even powerful players have tried to introduce new color brands and failed — Procter & Gamble Co.’s Olay brand, and Revlon’s Vital Radiance and Jane Cosmetics, which at one point was owned by the Estée Lauder Cos. Inc.
Against the odds, the up-and-coming brand E.l.f. Cosmetics (Eyes. Lips. Face.) is gaining traction by taking the road less traveled. The brand launched online first and is building its retail business.
“We’re disruptive because we do things differently,” said E.l.f. founder and chief executive officer Joseph Shamah.
Industry sources estimate that E.l.f. is about a $50 million business, and roughly 70 percent of its sales are generated in stores. It counts Target and Walgreens among its retail partners. E.l.f. Studio, which is positioned as a professional makeup artist line, will be featured in an exclusive department at a Walgreens set to open in Hollywood.
Next year could prove to be the real test of Shamah’s disruptive course. The company plans to unleash its largest collection of new items to date: 144 stockkeeping units across a number of new categories. The brand also is looking to expand beyond Target and Walgreens to other discount and drugstore and even food chains. In some cases, the brand aims to gain a foothold with new retailers with seasonal programs. The company’s close ties to the apparel business through Shamah’s family also enabled E.l.f. to distribute its color products in stores such as Forever 21, Urban Outfitters and Ross.
The brand is moving full-throttle ahead, said retail executives, with an arsenal including more nail color — holiday gift sets with 15 colors for $15 — new eye shadow quads, “chubby” lip stains, an eye refresh item with a roller ball and potentially BB creams and other corrective skin care.
E.l.f. also remains committed to e-commerce. Its digital effort allows for deep product assortments that stores can’t accommodate, said Shawn Haynes, vice president of retail sales. The devoted E.l.f. consumers serve as a “test” market to identify the biggest hits, which can roll out to stores, he said. For instance, Studio Mascara & Shadow Shield — an item so hot that one can’t even be found in E.l.f.’s New York showroom — was a hit online first. The tool is held below the eye during makeup application to reduce smudges and shadow overflow. Other items aiding online sales included baked eye shadow palettes, High Definition Blush and Mineral Primers in the Studio line.
In the same vein, E.l.f.’s online business can sift out failures and eliminate them quickly instead of having a flop in stores.
While e-commerce provides a testing ground, Shamah doesn’t believe it detracts from demand in stores. “It is a different consumer online and for those who like the products in the store, they can go online to find more of our items. We have thousands of stockkeeping units online,” he said.
The majority of price points range from $1 to $3, but E.l.f. has been able to trade consumers up to its Studio line priced at $6.
However, Shamah said the moderate price points inspire more multiple sales. “If retailers ask, ‘Aren’t the lower prices driving dollars down,’ we can show that people buy more and build a bigger basket,” he said. Shamah said one retailer moves four times the pieces of E.l.f. than many other makeup brands producing inventory turns for the line that are at least twice the industry average.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)