For small beauty brands facing the economic implications of the coronavirus pandemic, focusing on digital direct-to-consumer business has been key to survival, and in some cases, growth.
“We’re staying connected with clients online, and driving the efforts into online sales,” Morariu said. The brand is also found digitally at retailers Space NK and Bluemercury. “So far, that’s what we’re doing, and so far, it’s working.” “I think there’s a lot of people in our category that are after a certain demographic,” she continued. “If we look at our stats and data, that demographic for us is roughly 25 to 40 [years old]. However, there’s another demographic that we haven’t really looked at in more detail until recently and that’s roughly 40 to 65. We have a brand new customer there that is very strong, probably the strongest.
Such a brand is Youth to the People — started in the Bay Area by cousins Joe Cloyes and Greg Gonzalez — also backed by Sandbridge Capital and found at Sephora. “It’s not just about our skin care but about addressing any skin issues, tips,” Cloyes said. “It’s also been a great way to keep everyone active.”
She, too, hasn’t had to let anyone go. “We have not seen a reduction of sales,” she said. “The majority of our retailers are digital first….At the end of the day, our products deliver performance. There is a true value in that. Anytime you’re in a recession or economic hard time, things that hold their value are sought out.”
When Italy became the virus’ new epicenter and ceased activity, Jules Miller — founder of The Nue Co. — found herself in a dilemma. There was “a massive boom in sales,” growing 20 percent, month after month, and yet she had to rely on the European country, where she sources the glass packaging of her otherwise U.S.-made organic, food-based supplements.
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