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Is there something extra satisfying than getting an incredible deal on a extra inexpensive model of a well-liked product? Followers of the sweetness firm e.l.f. don’t appear to assume so.
Based in 2004, e.l.f. (an acronym for eyes, lips, and face) was created to supply high-quality cosmetics at a low value. On the time of its launch, most of e.l.f.’s merchandise value between $1 to $3.
In its first decade, the corporate skilled a interval of regular development, increasing its product line, opening its personal retail areas, and discovering some success in digital advertising. However by 2018, e.l.f. was experiencing a plateau in gross sales, and closed its standing retail shops, priming the model for a advertising pivot.
E.l.f.’s shift to TikTok
In 2019, the hashtag #elfcosmetics had over 3 million views on TikTok earlier than e.l.f. even had its personal presence on the platform. With this in thoughts, the corporate shifted its advertising technique to concentrate on TikTok’s consumer base (which was overwhelmingly Gen Z), leveraging short-form video and user-generated content material in its #EyesLipsFace marketing campaign.
Alongside Brooklyn-based company Movers + Shakers, e.l.f. commissioned an authentic music that was catchy sufficient to go viral and inspired TikTok customers to characteristic the music and the hashtag #EyesLipsFace. The marketing campaign was amongst TikTok’s most viral and cemented e.l.f.’s newfound concentrate on a Gen Z viewers.
To maintain the thrill going, e.l.f. centered its messaging on key factors that Gen Z values when making buying selections:
- Social duty: 50% of Gen Z shoppers received’t buy merchandise from magnificence manufacturers that aren’t cruelty-free.
- Affordability: Gen Z may additionally be extra frugal than different generations. 80% of Gen Z shoppers will wait till an merchandise goes on sale to purchase it, and 60% of Gen Z patrons mentioned the value of a product was the primary issue they think about when making buying selections.
These are two areas e.l.f. cosmetics can ship on. Since its founding, e.l.f. has been cruelty-free and continues to heart this level in its messaging. In comparison with different magnificence manufacturers, e.l.f. continues to be among the many most inexpensive choices.
Carry on the dupes
Capitalizing on its status as an inexpensive model, e.l.f. started introducing extra budget-friendly options to viral magnificence merchandise, also called dupes.
A few of e.l.f.’s dupes which have gone viral on social media embrace:
- Halo Glow Liquid Filter ($14): a well-liked dupe for Charlotte Tilbury’s Flawless Filter ($49)
- Energy Grip Primer ($10): a make-up primer that has drawn comparisons to the Hydro Grip Primer by Milk Make-up ($38)
- Hydrating Camo Concealer ($7): a concealer product that customers have in comparison with Tarte’s Form Tape ($31)
- Halo Glow Magnificence Wands ($9): blush, highlighter, and contour sticks which are paying homage to Charlotte Tilbury’s Magnificence Gentle Wands ($42)
- Forehead Elevate ($6): an eyebrow gel that’s thought of a dupe of the Forehead Freeze product by Anastasia Beverly Hills ($23)
- Whoa Glow ($14): a tinted facial sunscreen that’s much like Supergoop’s standard Glow Display screen product ($38)
From the packaging to the formulations, it’s clear that e.l.f. is hoping to seize budget-conscious clients who’re searching for inexpensive options to those higher-end merchandise. When these clients share their findings, it usually ends in user-generated content material that has excessive attain and engagement potential.
Along with creating dupes of standard high-end merchandise, e.l.f. has additionally launched a sequence of high-profile collaborations designed to be a magnet for Gen Z together with:
- A December 2022 holiday-themed marketing campaign starring singer Meghan Trainor in collaboration with The Climate Channel.
- A 2023 denim-themed assortment in partnership with American Eagle Outfitters (which can be a well-liked model amongst Gen Z consumers).
How efficient was e.l.f.’s pivot to concentrate on Gen Z?
Primarily based on the knowledge accessible, these techniques have definitely been efficient. In accordance with Piper Sandler’s spring 2023 survey, e.l.f. is the technology’s high cosmetics model, and this discovering is mirrored within the gross sales numbers.
E.l.f. reported a 49% improve in gross sales from 2021 to 2022. Moreover, e.l.f.’s development outpaced the general development of the cosmetics business. In 2021, the cosmetics business noticed an 8% year-over-year improve, whereas e.l.f. grew by 36% and the momentum is predicted to proceed. Earlier this yr, e.l.f. raised its 2023 outlook by practically $100 million.
That’s a whole lot of concealer.
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