When Does Makeup Geek Start Selling In Target
When Makeup Geek founder Marlena Stell started producing makeup tutorials for YouTube more than a decade ago, she had little thought of the impact social media would have on the beauty industry. Information technology catapulted brands like hers, transformed beauty marketing, and provided a mechanism for consumers to communicate directly with companies. Makeup Geek has tapped influencer partnerships, solicited customer feedback and expanded its social media reach to several meg followers to elevator annual sales to over $22 1000000. "I love getting my audience involved," says Stell. "It's been a huge attribute of growing the company."
Now, the dynamics of social media are shifting rapidly, and dazzler brands are being forced to reconsider their digital strategies as influencer sponsorship costs increase and visibility on social media platforms decreases. "With the ROI not beingness very good, anybody is scrambling to figure out how to market," says Stell. "Nosotros don't want to get back to mag and television advertising, that doesn't work. Trying to predict what's going to happen in the next couple of years is very frightening." Beauty Independent talked to her nigh efforts to build Makeup Geek offline for the uncertain time to come, including at Target and peradventure with its own stores, extend her business to multiple brands, create products suited to the ascendance of skincare, evolve her office internally and externally on YouTube, and commit to causes bigger than cosmetics.
How did your brand begin?
It was built-in out of social media. I was a music teacher for many years and, in 2008, I started to put my makeup tips on YouTube. It was a hobby. I just loved makeup. I decided that I loved it so much that I quit teaching in 2010 to focus on makeup. I launched the brand in 2011. At the time, there was a huge gap between drugstore and high-end makeup. At that place wasn't anything that was actually high quality that still had an affordable price point. I started my brand with eyeshadows considering that's what I was really passionate about. It was made in the U.S., had high quality and wasn't super expensive similar the luxury brands.
Did you encounter it as simply selling digitally?
I had no thought it was going to be what information technology became. I just wanted to accept something to sell to my audience. I was spending so much time promoting other brands, and I wasn't able to financially survive off of that. I wanted to create products to make myself financially secure and be able to showcase them to my audition in videos.
I knew the audition was there considering I was teaching them how to utilize makeup in videos. Information technology was an easy transition to sales because I could demonstrate the products I was making. I was able to feature the products I made and show how to use them. That automatically brought in sales. I did things astern from a traditional brand. I built an audition offset and, then, started to sell product as opposed to edifice an audience equally you go.
I started with eyeshadows because I love color. I obsess over different colors. At the time, the only brands doing eyeshadow pans were MAC and Make Upwardly For Ever. No 1 was doing them with lower cost points. I reached out to several labs, and I got kicked out past some, but I was very persistent. It took two years of driving all over the country with my mom to finally find a factory that would piece of work with me.
When did the brand showtime to gain traction?
It was by 2012. Influencers started using the products and, considering they started their YouTube channels soon later on I did, I would mention several of them. Nosotros were one of the first brands—Sigma was another one—to offer an affiliate program. I wanted to make sure the influencers could make a living.
At what bespeak did retailers reach out to yous to carry Makeup Geek?
We had several retailers attain out to us in 2016. We had Sephora, Ulta, Old Navy, Forever 21, Urban Outfitters and Target reach out to us. With our turn a profit margins being much smaller than larger companies, it was difficult to make happen. We could accept raised prices or cut quality, but that wasn't something I wanted to practise. When Target reached out to us, I felt it was a cracking fit because information technology had a similar audience to ours looking for mid-level cost points. It's known for having a skillful selection of products with skillful quality, and I like what they represent. I of the reasons they wanted to work with us was because of our focus on inclusivity.
Personally, I've ever been a huge Target fan. I accept a quick story to share. When I launched the Makeup Geek brand, it was in Nov of 2011, and that was the month my dad passed away. I lived in a pocket-sized boondocks in Michigan at the fourth dimension, and Target was my safe haven. When he passed, I was really in Target, and I've e'er had an emotional attachment to it. It's a very positive place for me to exist. Office of the reason I wanted to commencement with Target is I already loved it.
What was it like to accept your make enter Target?
Information technology was pretty intimidating, particularly with it beingness such a massive retailer. Nosotros started with Target last year as role of a pilot program they did where we were 1 of eight indie brands that went in, and we sold out of products online within a couple of days. We went into stores this year, and we are in nigh 400 stores. They've let us know we will be expanding to 200 more than stores by the end of this twelvemonth. In Target, we have small quads and little eyeshadow palettes—that's new for us, nosotros usually sell singles on our site—and we have the face collection with brushes, bronzers, highlighters, lip products, brow pencils and false lashes. In total, we have over 300 SKUs, and our single eyeshadows are our bestsellers. Our foiled eyeshadows do actually well considering they take a unique formula.
My main goal for existence in Target was to go the products in the hands of people in person, especially those non comfy ownership online. It definitely made the states seem more legitimate, and it gives the states substance. Before, I retrieve people idea, "Oh, it'south a social media brand that will come and go," but, to be in Target, it gives us depth, and it makes us more attainable to people.
How are y'all driving sales to both Target and Makeup Geek's channels?
We use similar strategies for both. Social media is definitely our potent point, and we use that as a ground to become people to become to the shop and cheque out what nosotros are selling. Now, we are focusing more than energy on paid advertizing on Instagram, Facebook and Google. Nosotros didn't used to do that equally much. We relied mostly on influencers and YouTube videos, but we have diversified quite a chip. One-half of our budget goes to traditional social media and the other half goes to paid advert.
Nosotros are focusing on paid ad because the influencer world has go saturated and the ROI isn't every bit strong equally when nosotros exercise paid advertising. When nosotros practise paid ads, we see a 12 to one return. Usually, if we spend $1,000 on ads, we will see $12,000 in sales. When we go the traditional road of [influencer marketing with] Instagram and YouTube posting, the ROI isn't as strong. It's still a great style to market place, but we don't depend on its solely because nosotros need that ROI.
When did the ROI of influencer marketing dip?
The ROI was better upwardly until 2016. After 2016, it started to take a pretty practiced dive, and there are many reasons that could be. I is the oversaturation. Besides, the consumer started to realize that influencers weren't as organic as they used to exist, and they were being paid to talk most products. They are less likely than they were to buy a concealer, for instance, just because an influencer raves about it. In the dorsum of their minds, they are thinking, "Information technology's a commercial. It's no dissimilar from a commercial on TV where Halle Berry is saying she loves a product." The promise [of the ROI] is higher than what brands are getting, and that's why there'south a bit of conflict now between brands and influencers.
Do y'all recollect the current influencer marketing ROI dynamics could alter?
If the overall community of influencers went back to being more organic, it would help some. I don't think it could completely go back to how it was before 2016. If the pay per post was more in line with what a company was making, everyone would be happier. The rates have get so inflated that the ROI makes it not a good investment. If the rates were to come downwards to reflect the sales that are actually happening for a company, the ROI would be meliorate.
What are your thoughts on TikTok?
I'1000 watching it closely. I've seen the ascension of TikTok, but information technology'southward catchy for us because you never know which [social media platform] sticks, which ones don't and which ones resonate with our audience. When Snapchat took off, I tried to exist involved in information technology, simply it didn't translate at all because its audience was younger than our audience. We always try to get an account started and post on each platform, simply nosotros have to wait a good yr to meet if the platform is practiced for us, and if it's worth investing time to have content on information technology. For us, the best ones have been Instagram and YouTube. I think TikTok is like to Snapchat, where people see our products, but information technology's not necessarily a sales-driven platform. It's difficult to convert people watching TikTok videos into people buying products. It'southward expert for us to get in the hands of people that exercise these videos, merely nosotros aren't expecting sales from it.
How has your personal approach to social media changed?
It'due south changed a lot this year. I decided to not do videos anymore as an influencer because the climate on YouTube has inverse dramatically since I started 11 years ago. Obviously, it's still a great platform, simply the videos that are popular now are the more dramatic ones, not the educational ones. It's non well-nigh makeup education as much. Tutorials don't practise every bit well because anybody has seen them and are a bit tired of them. I've decided to use YouTube to announce launches and continue anybody updated on the company, simply not to provide educational content.
What's the growth of Makeup Geek been like?
Our growth has changed in the final couple of years because it's non simply coming from directly-to-consumer, and we are seeing our revenue come from international wholesalers besides as Target. Our revenue is split up 70%/xxx% with 70% coming from straight-to-consumer, and the remainder coming from retail and international wholesalers. We used to be 100% direct-to-consumer through our website. About 40% of our sales come from international, whether people are buying direct from our site or through others. Nosotros are in the U.One thousand., Australia, Europe and Canada. In the U.K., we work with Beauty Bay and, in other countries, people purchase directly from us, and we ship to them direct-to-consumer.
I definitely see us becoming more than retail-driven because I recall, with the massive shift in social media, I want to diversify as much as I can to set up for future changes. I think that some of the audience is going back to buying in stores such equally Target. They are already buying their baby wipes and toilet paper at that place, and are throwing their makeup in their cart too. Nosotros are hoping to expand to other retailers in the future. My guess is that, long term, one-half of our revenue will be through directly-to-consumer and half through retail.
Where do y'all see opportunities for the brand at retail?
I definitely don't desire to practice drugstores considering I feel that Makeup Geek is not a mass brand. Information technology's masstige. It's at the mid-level, where it's not equally high end as prestige as far equally the toll points, simply information technology's loftier end in terms of the quality. If I were to pick the next retailer, I would practise an Ulta or I would do our ain stores in various cities. They would be hubs for our different companies. I'd have Makeup Geek, [clothing make] Marste and Adelina Jewelry. I had a miscarriage last year, and we were going to name the babe Adelina, then information technology'southward in honor of her.
Why practise you believe color cosmetics sales are slowing?
Trends always come up and get. What I've noticed is that, whatever was pop for a few years, what's popular post-obit that is going to be the polar opposite. We are humans and go bored. At that place was the liquid lip trend for then long and, now, there are tinted lip balms. Because color cosmetics were strong for several years, people are going dorsum to the more natural wait where it'south all about glowy skin and but a little mascara. If companies are aware of that, they will focus on foundations, concealers and hybrid skincare products. I'grand definitely working on those products for 2020 to make sure nosotros stay ahead of the trends.
You have been vocal most your commitment to addressing domestic abuse. Do you feel a responsibility to phone call attending to causes that are important to y'all?
I feel a personal obligation because I have a platform of 1.5 1000000 people. If y'all include the visitor as well, it's over four one thousand thousand people. I've made a decision to focus on something bigger than just makeup. I desire to utilize my platform to bring sensation to sure things I've gone through, and domestic abuse is the main one. I'one thousand a college-educated possessor of two businesses, and people may not think someone like me could be in an abusive relationship. I never thought I'd be in an abusive relationship, only it happened. I felt that in that location wasn't enough information out there breaking the stereotypes, and I felt a personal responsibility to do that. Going forward, a percentage of all Makeup Geek sales will go to shelters that help people leaving abusive relationships.
I want to accept each business I start to partially fund projects that are close to my heart. For Makeup Geek, it will exist focused on domestic corruption. For Marste, I'm trying to figure out what I want to contribute to. My husband and I are starting the jewelry line Adelina, and we are hoping a portion of its sales will help fund child intendance, foster homes and orphanages in Sri Lanka. I also program on speaking at conferences about women's empowerment.
How do you split your time between your various businesses?
I accept to divide my time very strategically. I know that Mondays, for example, I'yard going to focus on Makeup Geek. On Tuesdays, I'm going to focus on Marste. I take built out a groovy squad that handles a lot of the tasks, and that allows me to focus on product development and the creative aspects. I permit my team manage the rest. I have 40 people working for me now.
Has Makeup Greek brought on exterior funding?
Nosotros haven't. We grew from zero to $22 million in sales without a single loan or investor. What I tried to do is grow organically. Nosotros are now starting to go lines of credit to help. In a year, I will be fix to bring on investors to grow each of my brands. I want to come across if we tin can go more solid in Target, but the main reason I delayed having investors is because of the vision for the company. I didn't want Makeup Geek to turn into some other brand mixed in with everything else at Target and Ulta. I don't want it to go a cookie cutter brand. When I'm sure an investor will continue it unique, I volition sign on.
There's a rebrand in the works. When will it be completed?
Information technology'southward slated for November. The purpose of the rebrand is educational. Nosotros will have what nosotros call the matrix system. It's rows of colors that people choose from. Nosotros volition still accept the single eyeshadow pans, but they volition be laid out from low-cal to dark. Each row will be a different tone. You will accept rows of warm cherry browns, warm taupes and mauve browns. It makes certain that every color is complete, instead of just making 150 random colors that overwhelm people with option. For the average customer that doesn't know what to pick, it will exist all laid out for them.
I will take a cadre group of 56 mattes and 56 metallic shades and, out of those core sets of singles, I create hundreds of color combinations that people can choose from. It's less wasteful because you'll be able to take your shadows and create a ton of palettes on your own. At that place will be a booklet that goes with it, which is pretty much a catalog of the palettes yous can create. We will also have dissimilar combinations you can purchase pre-made. Y'all will be able to buy those with an inspiration gallery of looks already done. It's using the same cadre group of products, just having different combinations of all the different shades put together.
How has your role evolved?
I've been wearing many hats for a long fourth dimension. One time I'one thousand able to build out a stiff executive squad, I want to eventually step away from existence the CEO and exist the creative director. I would similar to exercise overall strategy and non focus on just Makeup Geek, merely exist the creative visionary for each of my companies.
Where do you lot think Makeup Geek will be in five to 10 years?
I don't plan on keeping the company forever. Somewhen, I will sell it, and I hope it will be in great hands with whoever buys it. I want it to be an international brand accessible to everyone.
Source: https://www.beautyindependent.com/social-media-makeup-geek-succeed/
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