The Indie and Direct-to-Consumers Brands Playbook - Beauty and Fashion Disruption Insights

1. The Direct-To-Consumers Playbook Beauty and Fashion Disruption Insights

2. The marketing world is changing…

3. …and The problem is HER And the millions of other passionate people like her who post videos & photos Brands have a major problem…

4. Brands have lost control of their messaging due to a highly fragmented audience Creators Networks Audience Online retailers Direct to consumers

5. Top Tier creators are hard to reach, long and expensive to activate. 41% of views Top 25 YouTubers Mid / Long Tail 59% of views 700+ YouTubers Octoly© Beauty FR Mid & Long Tail creators are a great opportunity for brands to reach creators and audience at scale MicroInfluencing is the Future of brands on Social Media

6. Content watched on social media is micro Digital celebrities are as powerful as people not known personally. Bloggers and vloggers create strong and eﬀective content for brands and are more reachable than most of the celebrities you may ﬁnd on social networks.

7. We are already living in a Post-Advertising World

8. Jean-Paul Agon CEO L’Oréal 8 “Our brands that grew the most were also very low [advertising and promotion] intensive,[…] Kiehl’s has no media. Urban Decay has no media. Many of these brands have no media.”

9. Influencers are More Relevant than Brand Pages As organic social reach is increasingly limited, social inﬂuencers oﬀer a more authentic voice, leading to more engaged audiences.

10. Influence has quickly changed hands 43% 47% 49% 62% 63% 62% 13 y.o. 14-17 y.o. 18-24 y.o. Millennials would try a product or a brand suggested by: TV / Movie star YouTuber

11. Influencers drive sales …of beauty consumers indicate that YouTube inﬂuenced their purchasing decisions by helping them to visualize how the products would ﬁt their lifestyle Pure players give incentives to creators' audiences through promotional codes 66% Source YouTube

12. 12 Micro-influencers really matter Mid- and long-tail creators usually: •  Have a greater freedom of speech •  Create more engagement •  Won’t request $$$ to collaborate •  Have a clearer schedule Smart brands will leverage their combined power and higher engagement 8 4 2 2 2 2 1 0 0 0 0 0 0 1 2 3 4 5 6 7 8 9 <1K 1K-10K 10K-100K 100K-1M 1M-10M >10M Instagram: like&comment rate by followership Like rate Comment rate Source: Markerly stats, 2016

13. The rise of Indie Brands The Direct-to-Consumer revolution in a social media environment:

14. Direct to Consumer revolution is reaching all industries 5 Years old $200M Revenues www.bloomberg.co m 2 Years old $75M Revenues http:// fortune.com/ 2 Years old $60M Revenues http:// www.inc.com/

15. What’s an Indie Brand? Any beauty addict can tell you they love top brands such as M.A.C Cosmetics BUT they believe their prices are too high. They’re generally endorsed by celebrities or models. Indie brands are taking off rapidly offering great products at an affordable price. They’re generally endorsed by Beauty blogger/vloggers. All these endorsements have the ability to generate engaging content but beauty bloggers do it better

16. “I sell directly to customers. With other brands, they are putting their stuﬀ in Sephora, and Sephora takes their cut, so they have to mark up their prices to cover overhead and staﬃng, and all that. But because we sell online—directly from the warehouse to the customer—we can kind of cut out that middle portion and save a lot of money in costs.” How are you able to provide the same quality as high-end makeup brands and keep prices low? Marlena Stell, YouTuber

17. Retailers are also disrupted 5 Years old $150M Revenues fortune.com 5 Years old $50M Raised forbes.com 6 Years old $125M Revenues

18. Key Lessons from Indie Makeup Brands

19. 3 Years old $32.4m Total Funding 434k Instagram followers #beauty #blog #referral #inﬂuencer founded

20. Overview Having big ambitions, Weiss launched in 2014 the New-York-based skincare and makeup brand Glossier as an outgrowth of the site ‘Into the Gloss”. The move from Into the Gloss to Glossier was a “total evolution of the same mission, but with tactile content”. The brand counts loyal beauty junkies and Into The Gloss fans; it inspires itself from comments on Into the Gloss and its growing community on Glossier. They have smart feedback that Glossier is putting to work in their products, from development to marketing. CEO Emily Weiss spent some time looking for a beauty brand that engaged with its consumers beyond mass marketing. While conversing with customers on a daily basis, she noticed there was a lack of brands made for women like her and her blog readers in the industry. Back in 2010 on IntoTheGloss website, the blog created a loyal following with more than 1 million unique visitors per month. Then came the idea of creating the “Glossier” brand, distilled from years of recommendations from ‘the coolest girls on the planet’. Creation #beauty #blog #referral #inﬂuencer founded Vision

21. A makeup empire #beauty #blog #referral #influencer founded Influencers are essential At Glossier, the influencers are regular people — customers who engage with the brand on Instagram and at pop-up events. Around 150 of the brand’s most active consumers chat online using Glossier-provided, city-specific Slack channels. In the Glossier world, cosmetics aren’t just cosmetics: they’re content. Every product is an opportunity for engagement. The influencers’ Instagram accounts may not have hundreds of thousands of followers but they ensure real-talk and honesty. From their social accounts, we’re led towards a personalised page on Glossier where we can buy these influencers’ top-favourite products.

22. Empower consumers New advertising strategy Weiss flips the way they usually advertise a product: instead of creating a product and then creating content, Emily Weiss decided to first create the content, get feedback and finally create the product. Using social media content to gain consumer feedback from the beginning, Glossier ensures that there is stricly no time-loss while creating a product. Three pillars of social commerce Weiss spent the first 6 months listening to what consumers really wanted from a skincare and cosmetics brand, hoping to break down barriers in what she calls the three pillars that help brands: content, community, commerce. 3 key lessons from Glossier Create direct lines of communication with your consumers Advertise a product before its creation #beauty #blog #referral #influencer founded Key lessons

23. 3 Years old $600k Estimated Revenue 4.1m Instagram followers #beauty #collaborations #instagram

24. Owners, Laura and John Nelson grew up with Spatz Labs, Oxnard, CA, came up with a plan to cut out the middleman within the beauty industry as a small side project. They realised that what was missing was the ability to give customers the products they want while they STILL want them! Very quiet and discreet, the founders don’t want to be direct reps of the brands. They let social media and their collaborators do the work. Overview #beauty They created Seed Beauty in 2014. The idea is to create a one-stop shop for creating new beauty brands. Colour Pop is a sister company with Kylie Cosmetics. ColourPop is a fun brand that empowers people to be playful and experiment with products in a way that isn’t intimidating and makes them feel good about themselves. The brand is part of the beauty startups to watch in 2017. #collaborations #instagram Vision Seed Beauty

25. The power of collaboration Trend and innovation is nurtured internally and externally; Colour Pop is inspired directly from its customers and their chemists work with the social media and customer service teams to develop and create new products. What do Kathleen Lights and Karrueche have in common? Both have collaborated with the brand and have created their own collection of products. ColourPop now boasts 4.1 million followers on its Instagram account and gets daily mentions by makeup enthusiasts, vloggers and models. #beauty #collaborations #instagram x Collabs

26. Influencers post their looks on Instagram or on YouTube adding hashtags to be recognised by ColourPop. The brand ‘regrams’ the influencers looks on Instagram and shares them. It’s a mutual beneficial system, where the influencer is more publically exposed - the brand shows interest in its consumers, which is very appreciated by all online communities. #beauty #collaborations #instagram An Instagram strategy Search trends on Google: ColourPop (in blue, launched in 2014) vs. Urban Decay (in red, launched in 1996)

27. 8 Years old 25 countries distribute KVD 5.7m Instagram followers #individuality #fan-curated #repost#inﬂuence

28. After her reality show debut, Kat Von D got approached by beauty bosses at Sephora, in 2008, to start her own makeup line. Famous for her mastery of all things ink, Kat Von D is breaking the mould of traditional beauty. Having a rebellious, individualistic and artistic approach to makeup, she created a makeup brand that specializes in long-wear, high pigment, and full-coverage collections. The all-vegan collection features Kat's own designs and personal touches with products she swears by and uses on herself everyday. Overview Launched in 2010, the company became independent of Sephora, and joined LVMH. Kat Von D Beauty was the original seed brand that later turned into Kendo. KENDO is dedicated to quality, innovation and authentic storytelling collaborating with global beauty powerhouses. Kat Von D is a sister company with Marc Jacobs Beauty, Formula X Nail, OleHenriksen and Bite. Beloved for both her artistry and authenticity, Kat Von D is now one of the fastest-growing global beauty brands in the beauty industry. Vision Kendo #individuality #fan-curated #repost#inﬂuence

29. Fan-curated content is a win for everyone: Customers get to be in the spotlight, and Kat Von D brand gets a break from creating totally original content. Kat Von D invites her fans to tag their Instagram photos showing her products on themselves with the hashtag #KatVonDBeauty. The beauty brand then uploads the pictures to Kat Von D Beauty’s website. This tactic shows future customers new ways to use products and suggests products they may not yet have, without wasting time with photo shoots for every new released item or color. A fan-curated strategy #individuality #fan-curated #repost#inﬂuence

30. Search trends on Google: Kat Von D (in blue, launched in 2008) vs. Hourglass (in red, launched in 2004) Her brand is doing two things well: Accommodating consumers’ insatiable thirst for visually stunning reposts from Instagramers and YouTubers and collaborating lately with the Kat Von D Makeup Artistry Collective. The Artistry Collective is brought together by four makeup artists using Kat Von D’s makeup promoting individuality and posting one video per week on Kat’s YouTube channel generating interesting content for her community. Encouraging diversity #individuality #fan-curated #repost#inﬂuence Made for the beauty obsessed KatVonDBeauty website is the destination to discover exciting new features such as tutorials, limited-edition products, and exclusive content by Kat Von D.

31. 10 diﬀerent brands 5 years old £70M estimated revenue #beauty #word-of-mouth #innovative skincare

32. Overview Truaxe and his team focused on many brands in many segments at the same time letting his team constantly dedicated and excited. The multitude of brands and processes from manufacturing to marketing are done in-house. Combined together, they’re doing more for each and every one of their brands. The Ordinary brand translates an ingredient-led strategy and a masstige price point into outsized buzz and organic visibility. Thanks to this type of strategy, DECIEM positions itself as an outsider of the beauty industry. The brand riots against color, long ingredient descriptions and self- deprecation. It is now a an umbrella of beauty brands, including Fountain, Hand Chemistry, HIF (Hair is Fabric), NIOD (Non-Invasive Options in Dermal science) and The Ordinary. Brandon Truaxe founder of DECIEM, ex-computer science student, and having a 20-year old background co-working with various beauty brands, was told he couldn’t work on more than one thing at a time, but he proved everyone wrong. Truaxe refers to himself as “screwed up”, admittedly hates the beauty business and considers the industry is a scam : “That’s why I decided not to hire anyone who has ever worked in beauty before.” He branded Deciem as “The Abnormal Beauty Company” with the goal of making medical-grade products that work and don’t cost a fortune. Their most expensive product rings in at $200, but the majority of their oﬀerings fall under $10. CreationVision #beauty #word-of-mouth #innovative skincare

33. “The scenery of beauty is going to be entirely disrupted over the next ﬁve years” - Brandon Truaxe DECIEM believes that there is a lack of loyalty to functional beauty - especially anti-ageing- which will increase and that is welcoming innovation. Nevertheless, brand loyalty to colour cosmetics will likely grow as this category is largely fashion led. DECIEM knows that the current mentality is “How do I look best immediately” and that the mentality of consumers will evolve to “How do I maximize my skin health so I age better?”. Truaxe is observing from a close-distance consumers’ expectations and is jumping on every single opportunity. By being more knowledgeable about what’s in their products and what they apply on their skin, Truaxe is making his consumers ‘Skintellectuals’. Customers are so pleased with the results that they’re all recommending DECIEM’S brands via social networks, blogs and vlogs without being sponsored by the brand. #beauty #word-of-mouth #innovative skincareBreaking the rules

34. The Ordinary is the third skincare concept to be launched under the DECIEM umbrella, following Hylamide and NIOD. The Ordinary exists because DECIEM believes that there should be a choice in all things and they also believe in delivering simple messages. The Ordinary’s goal is to bring familiar and often overpriced ingredients to the consumer at an honest and aﬀordable price. That way, consumers can test certain buzzy products and ingredients before committing hundreds of dollars to products that might not work for their skin. The Ordinary takes the basic research from its sister brands and uses simpler formulas and more generic ingredients to create products that are more wallet-friend. The Ordinary’s sister brands like NIOD and Hylamide have much more advanced formulas, and therefore higher price points, but research and development for all of DECIEM brands are the same. Search trends on Google: The Ordinary (in blue, launched in 2016) vs. Elizabeth Arden (in red, launched in 1910) #beauty #word-of-mouth #innovative skincareAﬀordable and innovative

35. 20 Years old $46.5m EMV on Instagram 13.4m Instagram followers #beauty #instagram#regrams

36. Anastasia Soare came to America and in 1997, built an empire out of eyebrows. Popularized through her customer relationships with many of the world’s most recognizable faces - Oprah, Naomi Campbell, Kim Kardashian, to name a few, the “brow revolution” she ignited, became a landmark contribution to beauty history. Soares has always wanted to educate women and teach them which makeup suited them the most. Unlike most top brands at the time, she wanted to create a brand for all skin tones. Overview Launched in the late 1990s by mother-daughter duo Anastasia and Claudia Soare began as a line for eyebrow pencils, gels and pigments. Claudia wanted to expand the collection starting oﬀ with a contour kit which sold out within hours. Based on that, they developed many other products in the makeup line: the brand now features lip and eye products -but is still best known for its brow products. Claudia suggested to link Anastasia Beverly Hills to Instagram and suddenly, everything blew up: dubbed the “people’s make-up brand,” ABH has grown cultivating an industry-unique relationship with its core customer via social media. Vision Creation #beauty #instagram#regrams

37. Instagram skyrocketed Anastasia Beverly Hills Anastasia Soare and her brand are the undisputed beauty queens of Instagram. Anastasia Beverly Hills went from a brow powerhouse to one of beauty’s fastest-growing makeup brands- all thanks to Instagram. The key to attracting a huge group of followers on the social platform is: Frequent updates, fan love and a strong brow game. #beauty #instagram#regrams x Instagram They have the highest engagement Averaging 62 posts per week, Anastasia’s account also sees the highest engagement - measured by gathering number of likes, shares and comments, with an average of 68,000 interactions per post. The brand has the highest EMV on Instagram. To put this into perspective, ABH has almost double the earned media value of MAC - which dominates every other social media platform, on Instagram.

38. Inﬂuencers post their looks on Instagram or on YouTube adding hashtags to be recognised by the brand. In exchange, the brand constantly ‘regrams’ on Instagram, retweets on Twitter and reposts on Facebook at least once every three hours and tags each and every content creator. By engaging with makeup enthusiasts, Anastasia Beverly Hills has created a personal connection with its followers and now works with more than 600 inﬂuencers. The brand has outdone others with its dedication and frequency #beauty #instagram#regrams A highly dedicated brand

39. 5 Years old $30m in Revenue 77,4K Instagram followers #skincare #beauty#word of mouth

40. Looking year after year for products that would suit her sensitive skin, Tiffany Masterson decided that she‘d like to create her own products. She had an intoxicatingly straightforward approach to skin care and her ethos was clear : If there‘s any doubt, it‘s out! Realising that she‘d never make anything that she wouldn‘t put on her face, her vision was simple: provide non-toxic and efficacious products andas being entirely transparent about the ingredients. Naming it Drunk Elephant after a myth that says that elephants love to eat the fruit that has fallen from the Marula trees. Once eaten, fermentation occurs inside their very large tummies and the elephants become drunk. Overview After years of listening, learning and months of studying ingredients, her brand was born. Drunk Elephant, based out of LA, California, was started in 2012. Masterson developed the brand out of a desire to create natural-themed formulas that were truly effective. Beyond effectiveness, she wanted to leave out what wasn’t effective and create products with toxic-free formulas. All with zero endorsements or ads, sales went up 400% in 2016. Top companies are now battling to invest in what is considered as one of the fastest-growing skin care companies in Sephora history. Vision Creation #skincare #beauty#word of mouth

41. Staying independant and growing strong This notion of expanding and building a business without the goal of immediately selling it to one of the beauty-industry giants is becoming somewhat of a trend: The strategy of remaining independent until the brand has become established as a major industry player is essential for Drunk Elephant’s creator. It’s all about word of mouth Always inspired by the “less is more” expression, Masterson delivers top-of-the-line products with no bad fragrances, chemicals or allergic sensitizers . Thanks to this, she says that the brand has never paid an inﬂuencer to date and doesn’t advertise at this time. She believes and relies entirely on people who carry good news to others because it’s the most authentic value for a brand and that buyers really know what’s best for their skin so only they, can deliver an honest review about the products today. Building a beauty empire #skincare #beauty#word of mouth

42. Small but mighty! Drunk Elephant line is a small line, but tends to make each product count, or at least puts an unconventional twist on the norm. They work on impressive products and extremely smart and minimal styled packaging. An involved brand They get over a thousand likes on most of their posts and dozens of comments, praise and questions that come in daily - many of these questions, if not most, receive individualized replies. The brand is highly requested worldwide and their social media team is on top of it all. And most of all, they inform and educate people about ingredients used in their product line. A brand that talks is a brand that works. A solid -though limited array of well-crafted skincare formulas and committed to fragrance-free products. A great philosophy #skincare #beauty#word of mouth

43. 4 Years old $20m revenues 697k Instagram followers #packaging #skincare #word of mouth#regrams

44. Overview Jess Hatzis, Bree Johnson, Erika Geraerts, Alex Boffa and Steve Rowley created Frank Body after customers began asking Steve for coffee grinds to take home from his café in Melbourne. When they first launched, they sent their product to a bunch of people they considered influential – makeup artists and beauty bloggers. They knew how important and valuable customers and ambassadors were and what kind of role they could play in their marketing. Six months after they launched, people started sending them before/after pictures when they had incorporated the scrub into their routine. Vision Creation With Alex looking to move into product development and Jess, Bree and Erika searching for a new project in social media strategy, the team came together to create the original coffee scrub. The Uni friends had no formal beauty training before launching Frank Body but had spent a decade of their adult lives trying different products out and like a lot of people, the founders were disenchanted with their current exfoliators: Big promises, price tags, chemical components and brands with no personality. That’s when Jess and Bree started their company with just $5000. #packaging #skincare #word of mouth#regrams

45. Real skincare: The Frank effect Frank Body intrigues: with substantial user-feedback via the #thefrankeffect and #letsbefrank hashtags on Instagram, people are showing positive reviews about the products that target problem areas on skin such as stretch marks, cellulite, eczema, psoriasis, acne, scarring and dry skin. They have a second account, @frankfeedback where they repost before and after pictures or comments on various types of skin. Its “Frankfurts” - the consumers, post pictures of them covered with coffee to give honest feedback on Instagram or on YouTube. They add hashtags to be recognized by the brand and incite others to buy the products. Word of mouth is the cheapest form of marketing and the most genuine for the brand. Getting to the core The team worked hard over two years on establishing a solid user- generated content strategy with a strong tone of voice. Today, Frank Body has deep values, unique selling points, and a personality that customers connect with. The brand works with bloggers and influencers to increase brand awareness and educate people. x social #packaging #skincare #word of mouth#regrams

46. Add to that, a good dose of Aussie humour As other (larger) beauty companies have struggled to get younger consumers interested in buying skin-care products in recent years, Frank Body is winning out. The team believes digital marketing is much more than an Instagram account: it’s a connected approach to a brand’s communication: website, social, packaging, and printed collateral. They create micro interactions between the customers and the easy going Frank persona: Frank is a humble laid-back Aussie guy and doesn’t take himself too seriously. He communicates on all the packaging and talks “dirty” – obviously relating to the coffee scrub! The Aussie owners wanted to adapt the brand’s tone of voice to their image. Frank’s marketing is aimed at each stage of the buyer’s journey. The branding is consistent and covers all the packaging from the box sent off, to the product received at home. The more they’ve expanded overseas, the more they’ve pushed the Australian humour, and buyers have been loving it ever since the day Frank Body launched. Marketing coffee #packaging #skincare #word of mouth#regrams Marketing through packaging

47. 8 Years old 6.8 bn Total organic potential impressions on IG 250 retailers #accessories #instagram#aﬃliates

48. With no previous experience in the beauty industry, Rene Xavier Filho, a civil engineer and his wife, Simone Xavier, a veterinarian became entrepreneurs from one day to the next. Rene designed his first set of makeup brushes after friends in Brazil asked him to send American makeup brushes as many brands didn’t export to their country. The couple went online to learn about brushes, shapes, prices and preferences and realized there was a real gap in the industry regarding distribution, quality and price for brushes. In 2009 they started their business and disrupted the brush industry. Overview The couple sent TiffanyD, a popular beauty vlogger, some of their brushes hoping for some kind of feedback. Instead, they got a YouTube video in which TiffanyD gushed about the new brushes by Sigma Beauty. This endorsement led to other ones, making Sigma one of the most recognized, celebrated and fastest growing companies in the the beauty industry. Research is also heavily employed on development of new revolutionary products. With 250+ retailers in more than 70 countries, Sigma Beauty is a global company with a marked presence on all continents. Vision Creation #accessories #instagram#affiliation

49. Sigma Beauty Gurus The brand says its followers on Instagram are 5 times more likely to click on an image or convert when they see makeup on a person as opposed to an image of the physical product in someone’s hand. As a result, Sigma has created an affiliation section on their website for their “Beauty gurus”. The company now counts thousands of affiliates, like TiffanyD, who get a 10% commission on products sold through links they post to Sigma Beauty’s website. Sigma’s strenghts Sigma has a robust social media following where they post instructional videos. The brand has maintained its status as one of the top social media beauty brands, with its largest community on Instagram where 2.8 million users follow the cult beauty brand. Sigma Beauty utilizes science and engineering to constantly challenge the beauty industry status quo and present its clients with state-of-the-art products. #accessories #instagram#affiliation Collaborating with influencers

50. To get featured on Sigma Beauty’s Instagram, next to reposts of famous beauty vloggers bloggers, consumers post their best looks on Instagram and add the hashtags #sigmabeauty or #sigmabrushes. Forward solutions, function, and quality are what have secured Sigma Beauty's position as a leader in innovation, are the cornerstones of Sigma’s products and what sets them apart from traditional cosmetic companies. Their motto “Innovating beauty” makes sense as they are constantly on the lookout for the latest trends. Client behavior constantly deﬁnes Sigma’s objectives and the “what’s next” products to launch. For instance, if consumers request the comeback of a limited edition product, the brand takes the information into consideration and creates countdowns to drum up the attention around the product. A brand that meets consumers demands #accessories #instagram#aﬃliation Connecting with consumers

51. 2 Years old 120 products in the collection 243k Instagram followers #makeup #community #social

52. Milk stands at the crossroads of the fashion, music, photography and film worlds in NY and LA and is a cultural hub nurturing brands and creativity. Milk Makeup was founded in 2015 by Mazdack Rassi, along with his wife Zanna Roberts Rassi and co-founders Dianna Ruth & Georgie Greville. Having little experience in the cosmetics industry, Sephora helped and acted as a sort of unofficial mentor to the fledgling brand, advising them from production to scale. In order to appeal to the millennial generation, Rassi’s tried to become part of it, spending nights reading blogs, watching vloggers talk shop and monitored how these reviews affect sales. Overview Milk Makeup focuses today on cool and trendy products, is environmentally conscious and cruelty free. The multi-use products are designed for self-expression and are created with the best possible multifunctional and high-tech formulas built for the cool girl on the go. When debating on ideas, it became clear that the ethos of the line could be about highlighting who you are, as opposed to covering you up. From then on, in just six months, Milk Makeup tripled its doors, expanding to 50 Urban Outfitters as well as 150 Sephoras by Spring 2017. Milk is now planning its international expansion starting with Canada in 2018. Vision Creation #makeup #community #social

53. x Culture of art-chic-cool #makeup #community #social The Milk Girl This “girl” is the kind of person who takes five minutes to put on her makeup in the back seat of a cab as she’s being ferried between chic events. She’s too cool to want a full makeup mask. The founders focused on three points : Milk girls and guys prefer to do their makeup on the fly, they don’t have the time nor the desire to weigh their face with makeup and they care about what goes into their products. Milk defines the brand as encompassing “punk fashion,” “art kids,” and “the next generation”—or “Gen Milk” for short. As for the “it” Milk Girl, she certainly doesn’t adhere to binary definitions of gender. A minimalistic back-to-school packaging All their products are recyclable, and their packaging is made from recycled materials with soy-based ink. They created an easy-to-apply collection with high- quality and lasting ingredients and made a packaging infused with antimicrobial silver “in case it drops on the bathroom floor so it stays safe and doesn’t discolor.”

54. The cosmetics brand lets its vast community mention the brand on social networks such as Instagram, Facebook and YouTube and Milk Makeup community is growing day by day thanks to word of mouth. Like many makeup brands, Milk is wise not to ignore influencers; their “Holographic stick” got a huge bump in exposure and sales when YouTuber Jeffree Star featured it. Ditto with Thomas Halbert and the Blur stick. they are currently vividly working with all-level influencers #BlurTheLines Campaign Milk Makeup’s YouTube channel embraces individuality and creates inspirational videos linked to its makeup. It gives power to voices that are generally unheard and discuss the gender spectrum exploring what individuality truly means today through campaigns like #BlurTheLines. Several LGBTQ+ models discuss how they feel about their gender identities, their fashion choices, and how they believe that “blurring the lines” between masculinity and femininity is beneficial. Taking it a step further, Milk gave a chance to some fans to feature in their upcoming #LiveYourLook campaign during the Beautycon festival in New York. where they were asked to visit Milk's multimedia studio and got glamed up and posed for portraits taken by Milk Studios photographer. The initiative aimed at inspiring people to break boundaries and celebrate diversity and individuality in the beauty space. Promoting individuality #makeup #community #social

55. 18 Years old $148m Estimated annual revenue 11.3m Instagram followers #community #social #makeup

56. Overview Vision Creation Nascent videos on YouTube about NYX made by young people conducting makeup tutorials and reviewing cosmetics made a quick appearance after NYX’s ﬁrst successes. Realizing this was the future, Ko sent freebies to social media stars. By 2009, Ko had 6 feet of space in each store and now the brand is globally available in over 70 countries in thousands of retail shops. In 2014, L'Oréal acquired NYX and is expanding it worldwide. NYX is today one of the most exposed beauty brands on YouTube generating nearly 138m views (2014). End 2016, the global rollout of NYX was a highlight for the consumer-products unit, which posted like-for-like sales growth of 4.7%. Growing up in a hard-working family, Toni Ko created what is today one of the biggest and fastest growing beauty brands in the US. Her vision was to create a line of high quality, on-trend professional beauty products at drugstore prices. At the age of 25, she invested the $250K seed money her parents gave her for her project, dealt with all the R&D by herself, pushed her suppliers to create each product to her exact speciﬁcations and sold her brand through her parents’ beauty supply. The economic crash in 2008 encouraged people usually spending hundreds, to discover drugstore alternatives such as NYX. #community #social #makeup

57. x Face Awards The beauty community awarded The power of NYX comes mostly from the FACE Awards initiative – the Fine Artistry of Cosmetic Elites Awards - for which beauty vloggers create themed challenge videos and compete for a $50,000 award determined from votes by the public. In 2013, the FACE Awards generated 120 m views of videos mentioning NYX, creating free exposure for the brand on YouTube. The awards have helped catapult many talented makeup artists into the spotlight. Many mainstream vloggers join in on the fun but most of the best tutorials come from indie makeup artists that barely have 10K subscribers to their channels. NYX has a large portfolio of products counting up to 2500 diﬀerent products and an exceptional range of colours, which led L’Oréal to acquire the brand. NYX fans are extremely passionate and the brand listens very closely to their requirements and expectations. Both beauty bloggers and professional makeup artists rave about the brand's innovative products and love that the company has kept its prices low, even as its range has expanded. #community #social #makeup

58. Mastering social media “NYX is a dynamic company that has done a tremendous job of harnessing the power of social media, digital marketing and multi-channel distribution” Frédéric Rozé, President and CEO of L’Oréal USA NYX’s DNA: Cultivating relationships NYX considers its fans to be the first port of call. Before something is even a finished product or a finished idea in their minds, they share it via social media to see how the fans react because they know how powerful they are. Most of the content that NYX uses is generated by its consumers and in exchange they give them the tools enabling the fans to makeup and create content by themselves. They consider that building a relationship and making their fans feel invested in the brand is an essential element which leads to success. Their main focus is to get the brand out there, make it visible and let the fans touch and feel the products. They work in close cooperation with online partners such as YouTubers, bloggers and vloggers and continue working with consumers to see where they see the brand fitting best. #community #social #makeup

59. 10 Years old $20m Estimated annual revenue 109k Instagram followers #community #makeup #social

60. Overview Vision Creation The whole idea of Julep was to create beauty products that give women a voice and help them explore outside their comfort zones. With highly engaged fans swapping nail art designs and doing “nail swatches,” Julep’s social media community has been a strong substitute for brand building via traditional print marketing. Julep has no limit in the number of product creations each month: they operate with a lot of freedom and have inﬁnite physical shelf space. The brand has released many other products other than nail polish such as mascara, skincare etc. and delivers up to 300 products each year. Jane Park started Julep in 2007, a chain of nail salons in Seattle but she began rethinking her model when the great recession hit in 2008 and many of her salon customers vanished. She decided to focus on e-commerce after seeing a strong interest in the brand arise thanks to people following Julep on social media such as Facebook, Pinterest and Instagram. Realizing that beauty is a business where women talk to each other about products they try encouraged her to create online forums in order to have a stronger understanding of her customers expectations and requirements. Her vision was about making beauty a fun and fearless experience for all women. #community #makeup #social

61. x the Mavens #Bravepretty Monthly Beauty Box Subscribers The company's first-line “beta testers” are the Julep Mavens. These subscribers pay a minimum of $19.99 a month to receive a custom-selected box of nail colors and other makeup at a discount off retail price (nail polish bottles go for $14 apiece). The social media chat begins, as buyers comment and submit photos of their products, allowing Julep to see how their products are used and appreciated. This phase allows them to be in line with their customers’ expectations before products are mass-produced. #community #makeup #social Julep’s wish is to empower women when it comes to makeup. They asked them about their typical makeup routines and challenged them to step outside of their beauty comfort zones by posting on various social networks their own definition of being brave as a woman today. This initiative was immensely appreciated by Instagram and Facebook users and followed up with the hashtag #bravepretty creating and unifying a community around Julep’s brand.

62. The Julep Beauty Lab: Where beauty and social opinion merges Customer feedback After launching the e-commerce site in 2011, Julep expanded its « lab » to enable fans to try out makeup concepts prior to their release. Julep’s Mavens are several thousands of customers that interact with Julep’s conceptors and actors to give their opinion and precious feedback. Jane Park sees this as an essential element of the brand’s DNA as the beauty industry is trending towards creating products consumers actually want . The feedback can be relatively harsh at some times but it saves a lot of time and money: only about a third of the concepts Julep initiates make it to market. This co-creation is not only about product development but also marketing and brand loyalty. Julep communicates with its Mavens through social platforms such as Facebook and Instagram, enabling them to create free exposure of content online and gain access to more fans. For instance, the company developed a lip mousse and sent oﬀ 80,000 prototypes to Mavens, who were asked for their opinions on two types of applicators and four formulas -feedback on colors was solicited via Instagram with the hashtag #julepbeautylab. #community #makeup #social

63. 9 Years old $3m Estimated annual revenue 554k Instagram followers #beauty #instagram#packaging

64. Launched in 2008, Jouer Cosmetics offers a playful approach to beauty with simple colors to wear and an ingenious design. Christina wanted her cosmetics line to fulfill two functions: contain excellent care ingredients and improve the appearance of the skin with each use. Customers enjoy the nourishing formulas and timeless colors and discussing with the brand to share their opinion on the way the brand has changed their skin. The now award-winning brand, is a line of makeup for people who have exceptionally high standards in regards to quality in makeup and want a more modern approach to beauty: simple and easy to wear colors with the best ingredients. Vision Creation As a model, Christina Zilber used to sit in the hair and makeup chair and analyze what artists where doing on set. She was constantly on the lookout for new kinds of products that would represent the ideal makeup for the working woman. One day when she was on set, one of the artists put together a palette and gave her the idea to compose her own products and stick them together. Not finding anything like it in the beauty industry, she decided to create it herself, envisioning a line of easy, fun, and portable colors you could combine to create customizable palettes. #beauty #instagram#packaging Overview

65. For women on-the-go Christina is the definition of a busy workingwoman. Juggling between her life as an entrepreneur, mother and wife she creates cosmetics for women who just like her, throw makeup on in very little time. She spends a lot of time with her daughter on their YouTube channel to discuss the products they each enjoy using- enabling Jouer to reach out to two generations. The cruelty-free brand offers today over 200 products ranging across face, lips, cheeks and eyes. Marketing through packaging – don’t forget to play With compacts that connect “Lego-like” to create customized makeup palettes, Jouer allows women to carry around what they want, when they want. Christina Zilber believes in the actual fun you gain out of composing your own products. The workingwoman -and now younger generation, has less time to apply too many products, which is why Jouer is an amazing solution to click a few products together and hop off to work or… school! x makeup on-the-go #beauty #instagram#packaging

66. A powerful social brand #beauty #instagram#packaging Influencers are talking authentically and engaging with their audiences Jouer Cosmetics encourages its customers to create and post their looks with the hashtag #JouerCosmetics or #AwayWithJouer on Instagram in order to share, gain and give a maximum of visibility to the brand. In return, the looks are reposted on Instagram and on Jouer’s website in the section “social looks” – If the website user likes a look, he/ she can click on it and discover which product the Instagrammer has used. Top influencers are helping the brand gain exposure Bigger influencers such as Jeffree Star (bottom right) are helping the brand gain more exposure as well as celebrating beauty and diversity. Jeffree Star recently created a buzz around the brand for collaborating with Jouer and giving away promo codes – something the celebrity rarely does. In return, all the profits he gains from the brand are donated directly to LGBT Centers to create more awareness.

67. 8 Years old $22m Revenue 2,6m Instagram followers #beauty #instagram#social native

68. Marlena Stell – at the time a high school music teacher, created her YouTube beauty channel in 2008 and established a very personal connection with her fan base. Considering top brands raise their prices with unnecessary ad-ons, and drugstore brands aren’t of amazing quality, she decided she wanted to create her own brand. She did a lot of research before starting her own cosmetics line, and in 2009 launched the website, makeupgeek.com to educate about beauty and teach about enhancing people’s own unique beauty. Overview She partnered with other cosmetics brands, and did a revenue share for any products she sold from her site, and sales rose to $200,000 monthly. Today, Makeup Geek is composed of a beauty-passionate team with a desire to give the very best of makeup education and products and is named to the Inc. 5000 fastest-growing companies list. The brand is committed to sharing useful beauty tips, supporting positive beauty messaging and selling exceptional products at aﬀordable prices. Vision Creation #beauty #instagram#social native

69. A dedicated space for beauty fans There is a dedicated space for influencers and beauty mavens on the website www.makeupgeek.com. They can upload video tutorials or pictures and tag the products on the side to show what they have used to create their looks. This helps the brands create a very searchable and shoppable eco system of user and influencer generated content. Makeup Geek curates their submissions by adding their favorite looks on the first page and repost on Twitter and Instagram. This is a win-win for both parties as influencers can add a link to their Instagram and YouTube accounts from Makeup Geek’s website leading them to gain more followers and Makeup Geek in return gains a lot of visibility in front of their artists’ Instagrams and YouTube channels. Collaborating with influencers #beauty #instagram#social native Co-branded products and limited-editions Marlena Stell didn’t want to be in the constant spotlight of her brand which is why she reached out to other famous vloggers like Kathleen Lights. The brand truly came to the forefront with its collaboration with the vlogger Manny MUA and its amazing, pigment-rich eye shadows. This has helped the brand create major visibility and reach out to audiences that have never heard of the brand before.

70. She crowdsources products and ideas with her audience, and in exchange sends off gifts of the product line to those who participated in contests for names or color preferences. Powerful advocacy thanks to micro-influencers Influencers are media platforms #beauty #instagram#social native The fan base created from Stell’s YouTube channel definitely helped propel her business early on, but social media was able to take it to the next level. Makeup Geek has curated a vlogger centric eco-system leveraging both top and micro-influencers with beauty- specific credibility. Marlena Stell refuses to neglect smaller influencers who generate great user generated content especially on Instagram these days. Thanks to this, Makeup Geek is one of the buzziest color cosmetics in terms of visibility and mentions. source : L2 Digital IQ index beauty, November 2016

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