The Direct-To-Consumers PlaybookBeauty and Fashion Disruption Insights

The marketing world is changing…

…and The problem is HERAnd the millions of other passionate people like her who post videos & photos

Brands have a majorproblem…

Brands have lost control of their messaging due to a highly fragmented audience

Creators Networks Audience

Online retailers

Direct to consumers

Top Tier creators are hard to reach, long and expensive to activate. 41%

of views

Top

25YouTubers

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

Content watched on social media

Digital celebrities are as powerful as people not known personally, if not more.

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.

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.

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

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

Influencer Marketing Emerges as Key Model

The rise of Indie BrandsThe Direct-to-Consumer revolution in a social media environment:

Direct to Consumer revolution is reaching all industries

5Years old

$200MRevenueswww.bloomberg.com

2Years old

$75MRevenues

http://fortune.com/

2Years old

$60MRevenueshttp://www.inc.com/

What’s an Indie Makeup 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

7Years old

$40MRevenues

0Marketing spent

150Countries

https://en.wikipedia.org/wiki/Sigma_Beauty

A ROI Driven Company focusing on YouTube

13,000Affiliates

3Years old

$20MRevenues

149Countries

27sto sell 1 brush

An Instagram Brand

7Years old

$15MRevenues

A brand made by a YouTuber

Anastasia Beverly Hills

“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

“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

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Retailers are also disrupted

5Years old

$150MRevenues

fortune.com

5Years old

$50MRaisedforbes.com

6Years old

$125MRevenues

Key Lessons fromIndie Makeup Brands

3Years old

$32.4mTotal Funding

434kInstagram followers

#beauty #blog #referral #influencer founded

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, butwith 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

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.

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 feedbackfrom 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.

Search trends on Google: Glossier (in blue, launched in 2014) vs. Deciem (in red, launched in 2013)

3 key lessons from Glossier

Create direct lines of communication with your consumers

Advertise a product before its creation

#beauty #blog #referral #influencer foundedKey lessons

3Years old

$600kEstimated Revenue

4.1m Instagram followers

#beauty #collaborations #instagram

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

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 teamsto 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 #instagramx Collabs

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 #instagramAn Instagram strategy

Search trends on Google: ColourPop (in blue, launched in 2014) vs. Urban Decay (in red, launched in 1996)

The magic formula

#AdaptorDie to #SocialCommerceHarnessing the power of Influencers

INDIE BRANDS MAGIC FORMULA

Data & insights from Influencers

Word of Mouthby giving FREE products

Online Tupperware salesby giving incentive

to creators’ audience

+ +

CREATE MARKET NO MEDIA

SELLING WORLDWIDE

How to play the #TupperwareMillennials phenomenon?Software, organisation, mindset & scale

SOFTWARE PEOPLE

Customer Excellence

Products Creators

CREATIVE ASSETS + AUDIENCE CONNECT, EDUCATE & DRIVE SALESby creating a unique relationship with influencers

E-COMMERCE x COUNTRIES

Octoly - Company overview

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Our solution:The Octoly Free Store

#1 Marketplace for product reviews

Hundreds of brands -willing to give away free products to boost their social media presence

Thousands of influencers - eager to test new products and

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Monthly Ranking 2017

February 2017 Ranking

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