They might be low on the beauty-box radar screen, but Ipsy is a powerhouse and has its finger on the pulse of the beauty industry.
Because of its multiple components such as a beauty box subscription service known as Glam Bag, which is priced at $10 a month and features five deluxe or full-size samples, and a budding vlogging community, Ipsy has hit $100 million in revenue in just three years. And no wonder. With more than 900,000 Glam Bag subscribers and 3.4 million registered members on ipsy.com, this company is rapidly on the rise.
“The core of our growth has been through YouTube and Instagram,” said Marcelo Camberos, cofounder and chief executive officer of Ipsy. “We’ve grown with very little money. We raised less than $3 million to date. Some of our competitors have raised almost $100 million. We’re going to be the biggest in the space this year and the reason is because it comes down to [the products we provide] and being in touch with this YouTube generation.”
The company’s organic growth, which is all due to word of mouth and has spread like wildfire, doesn’t stop there. Ipsy’s Generation Beauty, a two-day convention in Los Angeles that brings together Ipsy users, beauty vloggers and brands to network and discover through panels, demonstrations and meet-ups, is expanding to New York at the end of 2015.
“[Generation Beauty] is another way for us to be in touch with this community,” added Camberos. “It’s expanding what we’re doing in a bigger way.”
Meanwhile, Ipsy is constantly seeking out new talent and its vlogger community consists of 25 content creators. And it’s a smart strategic move. According to Tribe Dynamics, consumers are 40 percent more likely to look for a brand after watching a three-minute video featuring it.
“We’re always looking for new, up-and-coming stylists who will really resonate in our community and who are creating content that’s very authentic and very compelling,” said Jennifer Goldfarb, cofounder and president of Ipsy.
To that end, Ipsy has a 2,500-square-foot studio in L.A. where four beauty stylists create exclusive content that coincides with Ipsy’s monthly Glam Bag.
“[One of our stylists] is named Desiree Perkins, and she started with 45,000 subscribers in February 2014,” noted Camberos. “Now, she has over 750,000 subscribers. It’s not just about what [the stylists] can do for us, but what we can do for them and how can we become part of the community.”