Beginning today, beauty entrepreneur Patricia Pao will implement an online platform designed to turn her skin care company, Restorsea, into a $10 million brand by the year’s end. The digital initiative, called the Lifetime Value of Customer Program, offers targeted individuals with a “significant online presence” — such as bloggers — financial compensation for endorsing Pao’s products on their blogs, Facebook, Twitter, Instagram and Pinterest pages. According to Pao, product sales through the program will account for 90 percent of the expected $10 million in retail sales by December 2013, a major jump from its $125,000 in revenue from September through December 2012.
“We are living in a time now where we need to find ways to commercialize the Web,” said Pao, a Harvard Business School graduate who during her career has worked on products for brands like Avon, Elizabeth Arden, Guerlain and Peter Thomas Roth. “It’s time to figure out how to use the Web similar to how Avon representatives went door to door 150 years ago.”
Through the patented digital platform, online “influencers,” as Pao refers to them, earn a certain percentage from products purchased via click-though links posted on their Web pages and social channels. In addition to earning money from the initial sale, as per the program, when an affiliate’s follower makes a purchase on restorsea.com, the follower is forever associated with the affiliate, who will garner commission from all of the follower’s future purchases. Commissions are paid quarterly.
“People have built huge followings online and it’s about leveraging that reach into sales,” said Pao, who also offers another buzz-generating program called Share The Love, in which online Restorsea shoppers can send complimentary deluxe skin-care samples to three friends, which Pao believes will further drive brand awareness and sales. “We are all about win-win,” she said. “We want to make this work for everybody. If a brand genuinely wants to do that, people actually believe you and will get it.”
Pao said it was the $20 million price tag needed to secure the rights to her exclusive ingredient — an enzyme called Aquabeautine XL, released during the salmon hatching process — that got her thinking of unique ways to bump sales figures aggressively and quickly. “I was looking at the numbers and realized I needed to figure out how to pay my ingredient supplier,” said Pao. In October, the line entered Bergdorf Goodman, where industry sources say the brand’s current two stockkeeping units generate between $5,000 and $7,500 in retail sales a week. “Desperation is a highly motivating factor to thinking innovatively,” said Pao.
Because her brand still doesn’t have the “critical mass or door count” of bigger brands, Pao said she believes by owning the “online direct-sale channel,” she can put Restorsea on the map, much like Leslie Blodgett did through QVC with a once-little-known mineral makeup brand called Bare Escentuals.
The Restorsea lineup — which currently includes Rejuvenating Day Cream and Revitalizing Eye Cream — will expand this spring, and will range from $65 for a cleanser to $195 for a serum. The Restoring Night Cream and Renormalizing Serum will launch in March, the brand’s Rejuvenating Day Lotion SPF 30 will be introduced in April and in June, the Reviving Cleanser will roll out. All products are hypoallergenic and contain a proprietary skin-exfoliating and strengthening complex, which features Aquabeautine XL and complementary ingredients like brown algae and Japanese Songyi mushroom extract.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)