Direct-to-consumer brands

Best practices and resources specifically for DTC brands to help them grow strong. Those brands are disruptive and need new strategies as they are going after incumbents.

Creating killer cosmetic packaging for your beauty brand

The beauty and cosmetics industry is staggeringly huge.

Globally, the industry is worth over $500 billion with skincare being the most profitable. Then it should be of no surprise to you that 45% of beauty videos on YouTube are makeup tutorials, or that L’oreal’s revenue in 2018 topped $31.2 billion USD.

But that doesn’t mean that smaller brands can’t thrive – quite the opposite in fact. Society is becoming more and more aware of what we put into – and onto – our bodies.

And cosmetics are no exception.

This shift in consumerism makes it possible for smaller brands with values different to massive corporations to take a nice slice of the market.

Organic skincare brands, natural moisturisers and sustainable ingredients are unique selling points that the consumer wants to be a part of.

Furthermore, the success of D2C brands (Direct To Customer) like Glossier and subscription boxes like BirchBox and Ipsy have only solidified the power of the internet as the best way to build up a customer base.

But with competition as fierce as it is, building that loyal and engaged community around your brand can be tricky. But whether you’re selling in-store or online, there’s one physical touchpoint that comes first.

Packaging.

In this article, you’ll see:

  • The role packaging plays in the cosmetics industry
  • How to design cosmetics packaging
  • Creating an entire packaging set for a cosmetic brand

Successful DTC brands: Not unicorns but $10 Million ponies

The future of consumer goods and ecommerce is not unicorns. It’s niche $10M ponies.

Bonobos, Glossier, Casper – we have heard all about those darlings of the consumer goods space. Investors love them as they love any disruptors – venture funds specializing in direct-to-consumer (DTC) brands are popping up in Europe and the US.

Forerunner Ventures alone raised $360M to invest in those companies. DTC brands (also known as DNVB – Digitally Native Vertical Brands) are the hope and future of a stagnant market. For a bit, it seemed like consumer brands are following in the steps of SaaS, shooting for the stars.

Can DTC be the new SaaS or gig Economy? Can the new AirBnB be a mattress, razors or underwear company?

Yes and no.

The brands of the future are not for everyone

A hundred years ago, consumer products were a symbol of democratization – everyday items became available in large quantities at an affordable price as people didn’t need to make their own soap, sew their clothes or knead their bread.

Convenience and the new-found joy in being able to buy things without making them led people to believe slogans like “the best canned tomato soup” and buy it in scores. It worked in those early consumerism days before society started to change faster than products on the market.

Ecommerce benchmarks for beauty brands

Beauty is one of the sectors where direct-to-consumer brands are taking a lead. The traditional market for cosmetics seems to be lacking in variety and accessibility while customers want more and better solutions for their beauty needs. Direct-to-consumer democratizes the access to specialized products, high-end makeup and natural products, to name a few consumer trends to watch. This is why we have every reason to believe more and more DTC beauty brands will be successful.

To help smaller brands get there, we gathered data from the beauty brands we work with on a daily basis to make key ecommerce metrics benchmarks available.

Consumer trends DTC brands should watch

It’s easier than ever to go to market with your own product. Paying in cryptocurrency, VR fitting rooms and AI shopping assistants may be all the rage now but the winners are the companies adjusting to shifting consumer trends.

Mad Men marketing doesn’t work anymore as Millenials step in as the driving force of buying power. Even their parents are changing the way they shop. Let’s look at the top consumer trends now and how brands can be relevant.

Native’s tactics: what the DTC cosmetics brand did to succeed

Native is one of the few wildly successful DTC brands that got acquired – by no other but Procter & Gamble for the incredible sum of $100 million in cash only 2.5 years after launch. They had only one product at the time of the acquisition and 8 employees.

We are insanely happy to have shared Native’s journey from 0 to hero as their trusted analytics platform. Native’s founder Moiz Ali, who now is on our advisory board, doesn’t hide he uses Metrilo daily and this level of control over the business performance helped hugely to get where they are today.

That’s why we’d like to go over the tactics that Native used, the concrete focus points that brought them success.

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