The Beauty of Social Commerce: The Nhuch interviews Ted Rubin, CMO, e.l.f Cosmetics

thenhuch.com hosted an interview with Ted Rubin, CMO of e.l.f Cosmetics as part of Social Media Week in NYC. In an intimate event, that took place at the new e.l.f showroom and headquarters, Ted spoke to us about social media, social commerce, relationship with bloggers, askelf, tips about tweeting and managing different social media tools, the importance of public relations and much more. He also invited Achelle Dunaway, the creative force behind the brand, to share her insights and experiences with us. Check out the video and let us know what you think!

 Watch The Beauty of Social Commerce with Ted Rubin CMO of elf Cosmetics.

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Bobbi Brown #prettypowerful Tuesdays Tweetstake

 

Bobbi Brown Pretty Powerful Tuesdays

Great social marketing campaign by Bobbi Brown reported by the The Beauty Chick blog. Asking their community why Bobbi Brown Cosmetics makes them feel "pretty powerful" is a clever way to gather huge amounts of insights and sentiment about the brand. This is a good example of using giveaways/sampling as currency in exchange for a specific action – others include blog comments, retweet, follow, fan, join a community, etc. These non-monetary exchanges create awareness and allow brands to engage with their communities and generate conversation. Mining the data may take time, but it can provide a great window into the future. Quite brillant!

 

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Sephora Vending Machines (via @Solessence)

I learned through Solessence.com that Sephora launched a series of vending machines in 6 major US airports before the holiday season (BNA in Nashville, TN; LAS in Las Vegas, NV; IND in Indianapolis, IN; DFW in Dallas, TX; JFK in Queens, NY; and IAH in Houston, TX). Last September we reported on the launch of U*tique in the US, a high end vending machine selling top notch products at convenient locations (the first one was launched at Fred Segal in LA). Sephora’s move confirms a trend for alternative use of vending machines (a Japanese tradition), but further establishes them as a truly innovative retailer, providing convenience and reliability to customers, by anticipating their needs (i.e. placing easy to use vending machines after security checks at airports). Sephora will also have vending machines inside JCPenney stores and malls. I can’t wait Sephora’s next retail innovation!

Sephora Vending Machine


 

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Orglamix: Artisan + Natural + Quality + Value

I recently made a great discovery on Twitter. I met Cheri, a self proclaimed "Beauty Junkie, Mineral Makeup Maestra, Mompreneur" and founder of Orglamix. She is a living proof that there is still room for innovation in the industry, offering high quality products, great value, developed with passion and customers in mind. (Launched July 2009 and received so far 1649 positive reviews on Etsy.com)

Cheri caught my attention because I noticed that she was inviting her over 5000 Twitter followers to suggest names for her upcoming fragrance on Facebook. I Twitted her that I was curious about her mass collaboration (crowdsourcing) efforts and I supposed she was intrigued by the terminology I used and responded almost immediately…and the rest is history. We had a great chat right before Christmas and talked about her passion for the industry, starting her business on Etsy.com, mixing colors, figuring out social media, working from her attic while being a mom, and plans for the future. It was so inspiring and exciting that I thought it was a great way to start the decade.

Why did you chose to start with Etsy.com? I wanted a place to start fast and easy. I was using Etsy as a test platform. I’ve been there for over 5 months now and it has been great (there were a little over 1500 positive reviews by December 23rd, so she got another 100 over the holiday season). However, I can only stay there as long as I make the products myself. I will launch my own website Q1 2010 as it will facilitate sales and enable me to sell other products that are not handcrafted.

What is our background? I’ve been in the industry since 1990. I had a local spa in the Chicago area, worked as a consultant and launched other brands. I launched a website in 1995 introducing global niche beauty brands in the US. Soon it became a platform for brands to enter the market, but once they got some traction, they would find bigger distribution and leave my site.

How did you start your own brand? My passion has always been mineral pigments. I started with mixing and matching pigments then came up with Orglamix earlier this year out of my attic and selling small batches on Etsy.com (they would sell out within a week). Up until a month ago, when I opened up a few wholesale accounts.

How do you plan to grow the business given the great success so far? I am looking into expanding my distribution while trying to focus in one niche at the time. I currently have 3 suppliers of mineral pigments and just hired an organic chemist to help me. Soon I will have to work with a lab.

What are in your products? We use as little ingredients as possible for best impact.  Our shades are a combination of pigments. Some minerals have iridescence and some shades are more reflective. The bigger the micron, they reflect more light.  We never go over 10 ingredients to stay as natural and pure as possible.

How can you sell your products for so low? I started packing 1 gram (105 applications) of eye shadow in a 5 gr jar, and then based on customer feedback (people wanted to use their brush in the jar, but it didn’t fit) I am moving to 2gr in a 8gr but only increasing the price by $1. Also, now that my quantities are higher, I am buying packaging in bulk and at half price. So the difference in packaging is being given in product. For example, we have doubled what Baressentials sells for a quarter of the price.

How big is your range? When I started Orglamix, I launched 36 shades and today we have close to 125 in the core eye collection. Our top three shades, since launch, are Teak, Obsidian, and Wasabi and combined they generate 25% of our eye shadow business.

Tell me about the fragrance. I worked on a fragrance for Orglamix. All of our orders ship with rose petals. So we sprinkled the fragrance on the petals and that is how we sampled the fragrance. Then I asked on Facebook what ingredients fans thought were in the fragrance plus suggestions for names in exchange for a givaway. I got a lot good ideas on how to name it, but nothing that resonates yet. Fragrance is very personal. I am looking for something that can resonate with everyone. The one thing that connects us all, is color, so the first scent is going to be named after a color. First fragrance launches February 1st.

Why do you think people like Orglamix so much? My photographs capture people. They start reading and for the price they are willing to try. If you look at my backend, people start with one product, usually an eye shadow. The next order is between 3 – 5 products. 

Who is your customer? Women 25 – 40, active and busy moms who want to put something natural in their bodies without having buyers remorse. I want them to think Orglamix is the best buy ever.

How do you promote Orglamix? I monitor conversations and respond. Blog reviews and contests, I already received 75 blog posts. I usually give products for review and ask that they run a promotion for their readers, BOGO (buy one get one free), PIF. 

What is PIF? Pay it forward is a way to give make up to people who can’t afford to pay, but that are willing to pay it with community work. Over 125 people have participated by volunteering at cancer wards, animal shelters, etc.

Have you broken even yet? Yes! After 3 months. But I reinvest all the money back into Orglamix.

What are the trends in make up? The market is shifting, is going very minimal. Slowly back to a mineral sheer tint. Five years from now we are going to be more skincare benefits oriented with a focus on anti-aging.

I think I’ve seen some brands making skincare claims? Yes, however it hasn’t exploded yet. But it will…

Where do you want to be next Christmas? I had so much fun this year!! I want to launch 12 new products and get into some good niche beauty boutiques. In 2-3 years I want to have my own stand-alone stores. I will go wherever they wanna take me!!

Wasabi Eye Shadow

 

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Mark Girl Selling on Facebook. Is this the beggining of a new era?

Mark, is on its way to change forever direct selling for the next generation. According to WWD, this was Andrea Jung’s request to Claudia Puccia, when she was appointed as Mark’s Global president in 2005. First was the iPhone app launched in August  to help sellers replace their old catalogs. Now Facebook users can shop directly from the Mark Girl fan page. A shop tab was inserted with an ecommerce widget allowing users to navigate, shop and select a representative without leaving Facebook. This is definitely a very forward thinking move, and perhaps one of the first major brands to do so on the popular social media platform. The shopping page has a great design and straightforward check out, even though it wasn’t integrated to Facebook in anyway to leverage the fans information. If someone has a previous meetmark.com account they can use it, otherwise they need to create a new account (without leveraging Facebook user info) and enter their details. Future integrations should consider tools like Facebook Connect to ensure a seamless experience for fans. As fans become savvier they expect those types of integrations from brands in order to expedite their experience inside Facebook. The current Mark model seems focused on helping the reps increasing their sales, but not leveraging the full benefits of being inside Facebook by allowing fans to share their purchases with their friends through full integration with Facebook. So the question is: What would it take for meetmark.com and Facebook fans to be combined in one database? Is it possible? Why wasn’t it done? The beauty of the web is that everything can be continuously improved and I am sure Mark and Alvenda are looking into these questions for future launches.

 

 Mark Tweeter Post

 

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Cosmetics & Beauty Values and Free Gifts

Traditionally cosmetics are rarely discounted on major department stores and specialty stores.  Estee Lauder, Clinique and Lancome may offer free gifts with purchase but brands usually don’t leave additional money on the table. However, I was surprised to find several offers in the Bloomingdale’s catalog I received last week. One side of the catalog was dedicated to beauty and featured several brands with discounted sets. At Bloomingdales.com the bonus offers are even more prominent. Fragrance sets are offering the largest value. For example, Marc Jacobs’s Lola Holiday Gift Set is $70 ($105 value) and Prada L’eau Ambre Set is  $76 ($108 value). 

On the specialty end, similar values are available at both Sephora and Bliss. Sephora has even deeper value offers, with Tarte offering a Crown Jewels Lipgloss Multi-Gift Set for $39 ($165 value). By the way, almost every holiday gift reco comes with an offer. Bliss’ catalog announced "over $450 in savings on these pages" and their website is offering 15% off plus free shipping on all Bliss and Remede purchases (expires today 12/14). Despite the discounts, some gift offers may still be pricey for many shoppers, and therefore there is a risk of alienating them for other goods. Cell phones and other durable goods are priced at similar levels and may steal the beauty industry’s Christmas lunch. If this is proves to be another tough holiday season, many companies will need to rethink their product development, pricing and marketing strategies in order to stay relevant until the economy recovers.

Bloomingdale's Holiday Offers

 

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iPhone Beauty Apps: Over 7 million downloaded

“Seven to 10 million iPhone or iTouch users have already downloaded a beauty-related app or indicated they are very interested in doing so. And we’re just starting to see big brands get involved, which will be huge,” said Sunil Verma, a founder of Mobclix, a mobile ad exchange network. Download the Face of your Dreams, New York Times, 11/25/09 (article found via Cosmetics Makeovers. Post ranked higher on Google than the NYT article itself)

Brands are all over apps. According to the article they are becoming more utilitarian and part of everyone’s lives. They resonate best with teenagers (14 – 17) but plenty of growth is expected among older woman. Are they really going to become every women’s best friend? Are we going to be innundated with millions of beauty apps like we are with products? Are they the new "micro site"/promo sites for brands? Is this the next must have after a website, Facebook fan page and a Twitter account? I am afraid  yes, yes, yes. Apps are the mobile way of consuming content instead of web browsing. At first I thought it was a fad, but now it is definitely here to stay. The challenge is to create dynamic apps that don’t require too much maintenance like web 1.0 sites used to.

Here is a list of Aps listed in the article: Make up, Sally’s Spa, Return to Beauty, iSurgeon.

Brands with apps: Lancome, L’Oreal Paris, Avon, Mark.

Mark App

Images: Used in header from NYT article by Tony Cenicola/The New York Times. Mark Get the Look from  DeCare Systems Ireland website.

 

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Lancome: Declaring Indigo iPhone App

After Facebook, iPhone apps seem to be getting traction in the beauty industry. This past October, Lancome launched an app to promote its Declaring Indigo Fall 09 Color collection by make up artist Aaron De Mey (one of the most talented make-up artists of his generation according to the app intro and brandall77 a Total Beauty community member). The app received only 2 starts out of 336 ratings. Users mentioned that it crashed often. I downloaded the app and didn’t experience any technical difficulties. However, I found it a bit limiting when it came to creating looks. It only allowed me to use one color at the time for eye shadow, lipstick and nail polish. Overall it is a nice looking app but extremely basic and it doesn’t have enough content to bring users back on a regular basis (news section is buried). Apps are a great opportunity to keep customers engaged. Brands should make sure to take advantage of the captive audience that already downloaded it and avoid treating it as a seasonal ad. On another note, I wonder how many people shared their looks. Mine is below.

Additional reviews:

Mail Movement

Hahayue

Total Beauty

Mobi Ad News

Lancome iPhone App

 

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SephoraClaus.com: Granting a Wish a Day on Twitter (and free research for the industry)

Sephora launched Sephora Claus on Twitter for the Holidays: "Tweet what you want from Sephora for the Holidays and we’ll grant one Sephora beauty wish each day until December 19th" (max $150 value). As of now, 30,895 wishes were submitted and 18 granted. There are 12 days left to go. Many people wonder about the value of Twitter for brands. This is a fantastic example on how to use Twitter for a purpose. Before making a wish, a large number of users had to visit Sephora’s website (I did!). Make your holiday wish and consider this type of campaign in the future.

PS: Brands should be all over this wish list to see what people want the most these days!! Fragrance, make up, skincare? Here is the beauty of socialweb tools…This is free research for any 3 year plan.

  1. Marialevi_normalmariaisarocker Dear @Sephora, All I want for the holidays this year is kinerase PhotoFacials Sun Damage Reversal System Introductory Kit . #SephoraClaushalf a minute ago from web
  2. 3087224_normalhalfbluesky Dear @Sephora, All I want for the holidays this year is urban decay box of potions. #SephoraClaus !less than a minute ago from web
  3. 12_normalshimey27 @Sephora, All I want for the holidays this year is Philosophy The Miracle Worker Kit! :)  #SephoraClaus1 minute ago from web
  4. Twitterprofilephoto_normalfourssns2 Dear @Sephora, All I want for the holidays this year is Urban Decay Book of Shadows Vol. II. #SephoraClaus1 minute ago from web
  5. N683760569_4082198_1232_normallaurendrews Dear @Sephora, All I want for the holidays this year is a Clarisonic Mia. #SephoraClaus3 minutes ago from web
  6. Default_profile_2_normalENoble1 Dear @Sephora, All I want for the holidays this year is Smashbox Lights, Camera, Action Blockbuster Kit.#SephoraClaus3 minutes ago from Sephora Claus
  7. Ls_3956_daphne_hair_fair_2_normalDaphneA Dear @Sephora, All I want for the holidays this year is Bare Escentuals bareMinerals Happiness Collection.#SephoraClaus5 minutes ago from web
  8. Twitterprofilephoto_normalNvr2Thn Dear @Sephora, All I want for the holidays this year is Bare Escentuals bareMinerals Pure Luxuries Collection.#SephoraClaus6 minutes ago from web
  9. N34102938_30710415_5120_normalKatieWallace7 Dear @Sephora all I want for the holidays is the Urban Decay Book of Shadows II! #SephoraClaus6 minutes ago from web
  10. Pic2_normalshellsuga Dear @Sephora, All I want for the holidays this year is the John Varvatos Artisan Gift Set. #SephoraClaus6 minutes ago from web
  11. Twitterprofilephoto_normaljessa1130 Dear @Sephora, All I want for the holidays this year is Clarisonic Mia SkinCleansing System. #SephoraClaus8 minutes ago from Sephora Claus
  12. Default_profile_6_normaljunoner Dear @Sephora, All I want for the holidays this year is Urban Decay Book of Shadows Vol. II. #SephoraClaus8 minutes ago from Sephora Claus
  13. Downsized_0523091220a_normalHeidi2CC Dear @Sephora, All I want for the holidays this year is Sephora Perfect 10 Brush Set. #SephoraClaus8 minutes ago from web
  14. Twitter_normalkaylamoo Dear @Sephora, All I want for the holidays this year is the Michael Kors Islands rollerball set. #SephoraClaus8 minutes ago from web
  15. Default_profile_1_normalglme Dear @Sephora, All I want for the holidays this year is a Zeno Pro Acne Clearing Device. #SephoraClaus9 minutes ago from web
  16. Linda_normalGabesMorenita Dear @Sephora, All I want for the holidays this year is Tarte Treasure Chest. #SephoraClaus9 minutes ago from Sephora Claus
  17. Photo-1_normalTiptoekisses Dear @Sephora, All I want for the holidays this year is T3 Plump Up The Volume Blowdryer Set. #SephoraClaus10 minutes ago from Twitterrific
  18. Beck1_normalwriterbecky12 Dear @Sephora, All I want for the holidays this year is Philosophy’s The Miracle Worker set. #SephoraClaus11 minutes ago from web
  19. Img00915_edited_normalSLyonesse Dear @Sephora, All I want for the holidays this year is T3 Pro Wet-Or-Dry Iron. #SephoraClaus11 minutes ago from Sephora Claus
  20. Photo_on_2009-09-12_at_13courtybourt Dear @Sephora, All I want for the holidays this year is d&g light blue. #SephoraClaus11 minutes ago from Sephora Claus

 

 

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Beauty Stat New Facebook App

Beauty Stat, an online beauty community destination, introduced this week the “first-of-its-kind”  Facebook application. The brainchild of industry veteran and visionary Ron Robinson, Beauty Stat is an innovative, non-biased, highly targeted expert driven community that connects women around beauty. Facebook provides them with a familiar environment to share, discuss, and engage in conversations about skin, make up, haircare, etc. The great insight for brands is the introduction of the concept of social product development. Beauty Stat offers a targeted forum for beauty companies to listen to customers talking about their brands and the opportunity to engage the network to output better, co-created products. Let’s hope companies get out of their comfort zone and try it out. I am already a fan (become a fan).

Here is an email interview with Ron:

1. Did you first launch a regular website then moved to a facebook app? I remember back in January/Feb signing up to Beautystat.com. Yes, I moved to a Facebook app because I saw a huge opportunity given Facebook’s tremendous growth.

2. Why did you decide to make the change? Was it a planned evolution? Yes, this was a planned evolution.  Facebook has nearly 350 million members worldwide.  More than half of those members are women. Facebook is an amazing platform that allows people to connect and share information with each other.  My vision for Beauty Stat is to allow women to connect and share information about beauty.  Facebook was a natural fit given our shared vision.

3. As the first app of its kind, how do you see Beauty Stat changing the face of beauty/cosmetics industry? Beauty Stat will have an effect on both consumers and brands. Consumers are overwhelmed and confused given the number of beauty products out on the market today. And they are skeptical about some of the strong claims being made as well.  Consumers are turning to each other for recommendations and testimonials before making a product purchase. Beauty Stat facilitates that communication on a much bigger scale. Brands are taking notice of this change in consumers and Beauty Stat allows companies to "listen" in on these conversations among consumers as well as expose their products in a zero bias environment.

4. How did you build your network of experts? How do they contribute? We look for experts who are willing to help educate our members. Those that are willing to give objective, expert advice.  Zero bias and no hard sell are part of the core values of Beauty Stat. We have a few more big name beauty experts that will be joining our roster soon as well.

5. Who helped you design the app? We created a partnership with a company called DotBox. They are a digital agency and marketing firm whose clients include Harry Winston, Henri Bendel and Cole Haan.

6. What are the main ways people can participate/be part of the community? Aside from exchanging advice with other members, the feature that members are really excited about is the ability to connect with one of our beauty experts. Members can email them questions directly as well as have live chats with our beauty experts. Soon we will be offering this service through live video streams as well.  

7. What is your business model? We provide beauty manufacturers with the ability to test new product concepts and advertising with consumers of different demographics and shopping habits.  We give consumers the ability to have a say in the new products that will be coming out and brands can use their feedback to make better products.

8. How can brands be part of Beauty Stat? Will they send you products for review? Brands can also sponsor product giveaways.  My expert beauty team reviews these products first and then we send them to our members to get their feedback.

9. You already got a nice following (in how many days did you get to over 500 fans)? We are really excited about the response since we just launched this week. 

10. Additional coverage:

 

Beaut Stat on Facebook

 

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