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Self-Care and Beauty Startups Are Thriving

Customer Service & Sales

Isadora Teich wrote this article

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The Pandemic has had profound effects on all aspects of our lives in many ways and potentially changed entire industries forever.

While some industries have been hit incredibly hard by the pandemic, others have done surprisingly well.

For example, while tourism and the restaurant industry have taken a huge hit, app gaming has boomed.

Apps in general have infiltrated new markets at an accelerated pace. Check out this blog post if you want to see the numbers.

One of the big winners in the boom of apps and startups in the pandemic has been the beauty and self-care industry. Click To Tweet

Beauty startups like Nykaa, MyGlamm, Sugar Cosmetics, and Beardo grew over 2020 and are looking even stronger in 2021.

Why Is The Beauty Business Still Booming?

I have seen a lot of surprise regarding this online, but I do not think it is warranted. Here’s why:

Many people say things like, “because of quarantine, no woman has put on lipstick in a year” and assume that this means that the whole beauty industry is dead.

However, general statements like this are rarely backed up by numbers.

They also usually exclude other people, who wear makeup, have acne and other skin issues, shave, and bathe. It also does not really scratch the surface of an entire aesthetic-driven self-care industry of which makeup is only one part.

Anyone can have a dry scalp or skin, brush their teeth, take baths for sore muscles, take supplements, use candles, wear fragrance, and even apply concealer.

While, a big pandemic joke is that now that many people can’t go to the office or out to the bar, they have no reason to wear anything other than sweatpants, or even bathe, data doesn’t back this up.

The numbers show that this is not true.

In fact, people who are stuck at home and are still working have a lot of extra money on hand. And they are spending it on beauty, wellness, and self-care products globally.

It seems that they are leaning heavily on these things in a trying time.

A Look At The Success of Some Beauty Startups

MyGlamm is a popular direct-to-consumer beauty brand that has become huge in India. It is only a 4-year-old startup and has raised $25 million at a valuation of $100 million. Purplle, another beauty app headquartered in India, has raised almost double what MyGlamm has.

Early investors just sold their shares for a whopping 22x return on their investment.

However, the largest unicorn beauty and lifestyle startup in this market is arguably Nykaa.

Nykaa is an Indian beauty, lifestyle, and wellness retailer that currently has multiple web platforms, app, and physical stores.

It is valued at over $1 billion. Nykaa closed two funding rounds in 2020, during the pandemic and it looks like it may even have an IPO in the future.

Beardo

This is an Indian men’s grooming startup that offers beard care, skin care products, and more. In the self-care and lifestyle space, even the platforms themselves often tend to be somewhat gendered.

Even though Beardo offers some similar products to what more traditional platforms offer, for example, lotion and face serums, they are branded and marketed to men.

Last year, packaged goods giant Marico bought over half of the company.

This is interesting for a number of reasons, as it shows a big shift in what is being considered, and also proven to be, investment-worthy and profitable. It shows that niche consumer brands can be powerful acquisition targets and are attractive for venture capital investors.

The beauty and self-care industry is currently worth about $14 billion and is only expected to grow.

US Consumers Are Shopping Beauty In A Big New Way

Big things are happening here as well. Shoppable live streaming is emerging on established giants like Amazon, Instagram, and TikTok. Beauty brands are starting to take note.

Glossier-esque Gen-Z-focused beauty and personal care startup Blume recently launched a campaign with Shop LIT Live, a live streaming shopping platform launched last year by early TikTok investor Toby Zhang.

For the campaign, the brand is running a series of themed weekly live streams for a month. They are offering 20% off to viewers and hosting a gift set giveaway.

Keep in mind that Shop LIT Live is not even the only live streaming shopping platform.

How Does Live Streaming Shopping Even Work?

This is a new thing in the US, so you may have some questions about how shopping in a live stream even works. Here is a quick overview of how Shop LIT Live does it.

While other platforms will likely have other quirks and approaches, most of them will likely function roughly in this way.

Users can browse through a variety of live streams and pick one that interests them. Links to items mentioned in the stream will pop up and users can purchase them directly within the app. They can even switch between different videos and keep watching while they shop.

Shop LIT Live also gamifies the shopping experience.

For certain actions, users get coins they can use within the app itself. When you invite friends, follow the app on social media, or leave a review of it you can earn coins to shop within the app.

Why Are Beauty Brands Adapting To This So Early?

Shop LIT Live already has a number of official partners in this space: including Seabedee, Baseblue Cosmetics, and Masami.

It is likely because these industries were amongst the first to take to social media to build communities, reputations, and even cult followings.

Even if you know nothing about makeup at all, you likely know that Instagram and YouTube beauty and lifestyle influencers exist. You may even be able to name a few.

Peter Stadniuk, the co-founder of Seabedee, told Glossy:

“I see this as the new wave for online shopping. Everything is progressing toward video and live streams. Also, people are getting tired of paying influencers and not having any ROI from it. You have static websites and pictures on Instagram, but that doesn’t give the product life or help sell it. I love the idea of someone real, an expert in the field, selling our product and answering questions for people right there on the spot while giving them a discount or deal to purchase.”

Final Thoughts

Globally, beauty apps have been making big moves during the pandemic.

People not only want more self-care products but are shopping for them in brand new ways. Beauty brands and startups are proving themselves to be innovative, smart investments with a lot of growth potential.

What do you think? Talk to me.

About ChopDawg.com: Since 2009, we have helped create 350+ next-generation apps for startups, Fortune 500s, growing businesses, and non-profits from around the globe. Think Partner, Not Agency.

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