Where Are Makeup Geek Products Made

When Makeup Geek founder Marlena Stell started producing makeup tutorials for YouTube more than than a decade ago, she had little idea of the impact social media would have on the dazzler industry. It catapulted brands like hers, transformed dazzler 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 attain to several million followers to elevator almanac sales to over $22 million. "I love getting my audience involved," says Stell. "It's been a huge aspect of growing the company."

At present, the dynamics of social media are shifting rapidly, and beauty 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 being very good, everyone is scrambling to effigy out how to market place," says Stell. "We don't want to become back to mag and telly advertizing, that doesn't piece of work. Trying to predict what's going to happen in the next couple of years is very frightening." Dazzler Independent talked to her about efforts to build Makeup Geek offline for the uncertain future, including at Target and possibly with its own stores, extend her business to multiple brands, create products suited to the ascendance of skincare, evolve her role internally and externally on YouTube, and commit to causes bigger than cosmetics.

How did your make 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 and so much that I quit instruction in 2010 to focus on makeup. I launched the brand in 2011. At the time, there was a huge gap between drugstore and high-finish makeup. There wasn't annihilation that was actually high quality that still had an affordable price signal. I started my brand with eyeshadows because that's what I was actually passionate most. It was made in the U.S., had loftier quality and wasn't super expensive like the luxury brands.

Did you see it as but selling digitally?

I had no idea it was going to exist what it became. I but wanted to have something to sell to my audience. I was spending then much fourth dimension 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 audience in videos.

I knew the audience was there because I was education them how to use makeup in videos. It 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 testify how to use them. That automatically brought in sales. I did things astern from a traditional make. I congenital an audience start and, so, started to sell product as opposed to building an audience as you go.

I started with eyeshadows because I love color. I obsess over dissimilar colors. At the time, the only brands doing eyeshadow pans were MAC and Make Upward For Ever. No ane was doing them with lower toll points. I reached out to several labs, and I got kicked out past some, merely I was very persistent. It took two years of driving all over the country with my mom to finally find a factory that would work with me.

When did the make outset to gain traction?

Information technology was by 2012. Influencers started using the products and, because they started their YouTube channels shortly after I did, I would mention several of them. We were one of the first brands—Sigma was some other i—to offer an chapter program. I wanted to brand sure the influencers could make a living.

At what indicate did retailers reach out to y'all to carry Makeup Geek?

We had several retailers reach out to united states in 2016. We had Sephora, Ulta, Sometime Navy, Forever 21, Urban Outfitters and Target reach out to us. With our profit margins being much smaller than larger companies, it was difficult to brand happen. We could have raised prices or cut quality, but that wasn't something I wanted to practice. When Target reached out to us, I felt information technology was a nifty fit because it had a similar audience to ours looking for mid-level cost points. Information technology'due south known for having a proficient pick of products with proficient quality, and I like what they stand for. One of the reasons they wanted to piece of work with united states of america was because of our focus on inclusivity.

Personally, I've e'er been a huge Target fan. I have a quick story to share. When I launched the Makeup Geek make, it was in Nov of 2011, and that was the calendar month my dad passed away. I lived in a minor town in Michigan at the time, and Target was my safe haven. When he passed, I was actually in Target, and I've always had an emotional attachment to it. It'due south a very positive place for me to be. Office of the reason I wanted to start with Target is I already loved information technology.

What was it like to accept your brand enter Target?

It was pretty intimidating, especially with it being such a massive retailer. We started with Target last year equally part of a airplane pilot plan they did where nosotros were one of 8 indie brands that went in, and we sold out of products online within a couple of days. We went into stores this year, and nosotros are in well-nigh 400 stores. They've let united states know we will be expanding to 200 more stores by the finish of this twelvemonth. In Target, we have small quads and piffling eyeshadow palettes—that'southward new for u.s., nosotros normally sell singles on our site—and we have the face collection with brushes, bronzers, highlighters, lip products, brow pencils and fake lashes. In full, we take over 300 SKUs, and our single eyeshadows are our bestsellers. Our foiled eyeshadows do really well considering they have a unique formula.

My main goal for being in Target was to go the products in the hands of people in person, particularly those not comfy ownership online. It definitely made us seem more legitimate, and it gives united states substance. Earlier, I think people idea, "Oh, it'south a social media brand that will come up and go," but, to be in Target, it gives us depth, and it makes united states more attainable to people.

How are y'all driving sales to both Target and Makeup Geek's channels?

We utilize similar strategies for both. Social media is definitely our strong signal, and we use that as a footing to get people to go to the shop and check out what we are selling. At present, we are focusing more energy on paid advertisement on Instagram, Facebook and Google. We didn't used to do that every bit much. Nosotros relied mostly on influencers and YouTube videos, but we have diversified quite a fleck. Half of our budget goes to traditional social media and the other half goes to paid ad.

We are focusing on paid advertising because the influencer world has become saturated and the ROI isn't every bit strong as when nosotros exercise paid advertisement. When we practice paid ads, nosotros meet a 12 to one return. Usually, if we spend $i,000 on ads, we will see $12,000 in sales. When nosotros go the traditional route of [influencer marketing with] Instagram and YouTube posting, the ROI isn't every bit strong. It's still a great manner to market, but nosotros don't depend on its solely because we demand that ROI.

When did the ROI of influencer marketing dip?

The ROI was better up until 2016. After 2016, it started to take a pretty good swoop, and in that location are many reasons that could exist. 1 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 about products. They are less probable than they were to buy a concealer, for example, just because an influencer raves nearly it. In the dorsum of their minds, they are thinking, "It'due south a commercial. It's no different from a commercial on Television set where Halle Berry is saying she loves a product." The promise [of the ROI] is higher than what brands are getting, and that'south why at that place'south a bit of conflict now between brands and influencers.

Practice you think the current influencer marketing ROI dynamics could change?

If the overall community of influencers went dorsum to existence more than organic, it would assist some. I don't remember information technology could completely become back to how it was before 2016. If the pay per mail was more than in line with what a company was making, everyone would be happier. The rates have become so inflated that the ROI makes it not a good investment. If the rates were to come down to reflect the sales that are actually happening for a company, the ROI would be better.

What are your thoughts on TikTok?

I'g watching it closely. I've seen the rise of TikTok, but it's catchy for united states of america because you lot never know which [social media platform] sticks, which ones don't and which ones resonate with our audition. When Snapchat took off, I tried to be involved in it, but it didn't translate at all considering its audience was younger than our audience. We always effort to become an account started and post on each platform, but we take to expect a good year to meet if the platform is adept for u.s., and if information technology's worth investing time to take content on it. For us, the best ones have been Instagram and YouTube. I think TikTok is like to Snapchat, where people run across our products, but it's not necessarily a sales-driven platform. Information technology'south hard to convert people watching TikTok videos into people buying products. It's skillful for us to make it the hands of people that do these videos, just we aren't expecting sales from information technology.

How has your personal approach to social media changed?

It'south inverse a lot this yr. I decided to not exercise videos anymore as an influencer because the climate on YouTube has changed dramatically since I started 11 years ago. Obviously, it's still a bang-up platform, but the videos that are popular now are the more dramatic ones, non the educational ones. It'south non about makeup pedagogy equally much. Tutorials don't practice likewise because everyone has seen them and are a bit tired of them. I've decided to use YouTube to announce launches and keep anybody updated on the company, but not to provide educational content.

What's the growth of Makeup Geek been like?

Our growth has changed in the terminal couple of years because it's non just coming from direct-to-consumer, and we are seeing our revenue come from international wholesalers as well as Target. Our revenue is split 70%/thirty% with 70% coming from directly-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 up from international, whether people are buying directly from our site or through others. Nosotros are in the U.Thousand., Australia, Europe and Canada. In the U.K., nosotros work with Beauty Bay and, in other countries, people buy straight from us, and we send to them directly-to-consumer.

I definitely see the states becoming more retail-driven because I think, with the massive shift in social media, I want to diversify as much as I can to prepare for future changes. I retrieve that some of the audience is going back to buying in stores such as Target. They are already ownership their baby wipes and toilet newspaper there, and are throwing their makeup in their cart as well. We are hoping to expand to other retailers in the hereafter. My gauge is that, long term, half of our revenue will exist through direct-to-consumer and half through retail.

Where practise y'all see opportunities for the brand at retail?

I definitely don't desire to do drugstores because I feel that Makeup Geek is non a mass brand. It's masstige. It'due south at the mid-level, where it'southward not every bit high end as prestige as far every bit the price points, but information technology'south high cease in terms of the quality. If I were to pick the next retailer, I would do an Ulta or I would practice our own stores in various cities. They would exist hubs for our dissimilar companies. I'd have Makeup Geek, [clothing brand] Marste and Adelina Jewelry. I had a miscarriage final yr, and we were going to proper name the babe Adelina, so information technology's in accolade of her.

Why do y'all believe color cosmetics sales are slowing?

Trends always come up and go. What I've noticed is that, whatever was pop for a few years, what'south popular following that is going to exist the polar opposite. We are humans and get bored. At that place was the liquid lip tendency for and so long and, now, at that place are tinted lip balms. Because color cosmetics were strong for several years, people are going back to the more natural look where it's all about glowy skin and merely a fiddling mascara. If companies are enlightened of that, they will focus on foundations, concealers and hybrid skincare products. I'yard definitely working on those products for 2020 to make certain nosotros stay ahead of the trends.

You have been vocal about your commitment to addressing domestic abuse. Practise you feel a responsibility to phone call attention to causes that are of import to yous?

I feel a personal obligation because I have a platform of 1.five meg people. If y'all include the visitor as well, it'south over 4 meg people. I've fabricated a decision to focus on something bigger than just makeup. I desire to use my platform to bring sensation to certain things I've gone through, and domestic abuse is the master one. I'm a college-educated possessor of two businesses, and people may non recollect someone like me could exist in an abusive human relationship. I never thought I'd be in an abusive relationship, but it happened. I felt that in that location wasn't plenty data out there breaking the stereotypes, and I felt a personal responsibility to practise that. Going forward, a percentage of all Makeup Geek sales will go to shelters that help people leaving abusive relationships.

I want to have each business I starting time to partially fund projects that are close to my heart. For Makeup Geek, it will be focused on domestic abuse. For Marste, I'm trying to figure out what I desire to contribute to. My husband and I are starting the jewelry line Adelina, and we are hoping a portion of its sales will assistance fund child care, foster homes and orphanages in Sri Lanka. I likewise programme on speaking at conferences near women'southward empowerment.

How do you split your time between your various businesses?

I have to divide my time very strategically. I know that Mondays, for example, I'thousand going to focus on Makeup Geek. On Tuesdays, I'm going to focus on Marste. I accept built out a nifty squad that handles a lot of the tasks, and that allows me to focus on product evolution and the creative aspects. I let my team manage the rest. I take 40 people working for me now.

Has Makeup Greek brought on exterior funding?

We haven't. Nosotros grew from nothing to $22 million in sales without a unmarried loan or investor. What I tried to practise is grow organically. We are now starting to go lines of credit to help. In a year, I will exist gear up to bring on investors to grow each of my brands. I want to see if we can get 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 another brand mixed in with everything else at Target and Ulta. I don't desire it to become a cookie cutter brand. When I'grand sure an investor will continue it unique, I will sign on.

There'southward a rebrand in the works. When will it be completed?

It's slated for Nov. The purpose of the rebrand is educational. We will take what nosotros call the matrix system. Information technology's rows of colors that people choose from. We will still accept the unmarried eyeshadow pans, but they will be laid out from light to dark. Each row will exist a dissimilar tone. You will have rows of warm cerise browns, warm taupes and mauve browns. It makes sure that every color is complete, instead of just making 150 random colors that overwhelm people with choice. For the average customer that doesn't know what to pick, it volition be all laid out for them.

I will take a cadre group of 56 mattes and 56 metallic shades and, out of those cadre sets of singles, I create hundreds of color combinations that people tin can choose from. It'south less wasteful considering you'll be able to take your shadows and create a ton of palettes on your ain. There volition be a booklet that goes with it, which is pretty much a catalog of the palettes you can create. We will also have different combinations yous can buy pre-made. You will be able to buy those with an inspiration gallery of looks already done. It's using the aforementioned core group of products, but having different combinations of all the different shades put together.

Makeup Geek is going through a rebrand that will include a matrix system to organize eyeshadow colors and enable customers to easily create their own palettes.

How has your role evolved?

I've been wearing many hats for a long time. Once I'yard able to build out a stiff executive squad, I want to eventually pace away from existence the CEO and be the creative director. I would similar to do overall strategy and non focus on just Makeup Geek, just exist the creative visionary for each of my companies.

Where do you think Makeup Geek will exist in five to ten years?

I don't plan on keeping the company forever. Eventually, I will sell it, and I hope information technology volition be in bang-up hands with whoever buys it. I want it to be an international brand attainable to everyone.

Source: https://www.beautyindependent.com/social-media-makeup-geek-succeed/

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