What was the rationale behind acquiring Milk Makeup and Obagi Skincare, and how do these acquisitions fit into the broader vision of Waldencast?
Waldencast’s vision is to be a sanctuary for the indie brands of tomorrow, combining the agility of entrepreneurship with the stability of an established organization. We acquired Milk Makeup and Obagi Skincare as our inaugural brands because they epitomized this vision. They operate in significant beauty markets, skincare and makeup, and have carved out their niches in high-growth segments, with Obagi Skincare in medical skincare and Milk Makeup in clean Gen Z-targeted makeup.
The brands’ ability to build strong communities was a key attraction. Obagi Skincare’s rootedness in the medical community, and Milk’s prominence as a favorite among the clean, Gen Z audience at Sephora, positions them as prime assets. Their distinct consumer bases and market dynamics align with our multi-category portfolio approach, ensuring resilience and adaptability amidst fluctuating market trends.
In the crowded market of beauty brands, how do you ensure uniqueness and relevance, and how do you adapt to evolving consumer needs?
Our approach to standing out in the crowded market revolves around offering a distinct point of view, rather than just another beauty brand. With whind, for example, we merge the sensuality and richness of traditional Moroccan beauty rituals with modern performance-driven ingredients. The brand is a celebration of a different beauty perspective, a nod to the golden hour beauty, rooted deeply in sensory experience yet elevated by contemporary formulations.
Listening to our community is paramount in evolving the brand. When whind launched, consumer feedback directed us towards expanding from skincare into fragrances and body products. It’s a balance of holding onto the core brand ethos while also adapting to the desires and needs of our audience. Responding to the demand, we diversified our product range and expanded our retail presence into physical stores, particularly in the regions where the brand resonated profoundly.
How do you take a beauty brand from inception to market, and what have been some pivotal moments in this process for whind?
Taking a beauty brand from zero to five involves a well-defined concept and an attentive ear to the community. For whind, it was born out of a unique marriage of sensuality and performance, spotlighting the underrepresented Moroccan beauty narrative. We started with e-commerce, an ambitious global direct-to-consumer launch, and adapted our strategy based on the feedback and geographical preferences of our consumer base.
Listening and adapting have been integral to our journey. The demand for an experiential, sensorial brand led us to expand from online to offline retail, grounding our presence in regions where whind’s concept was most appreciated. The brand’s evolution is a dynamic interplay between our foundational ethos and the ongoing dialogue with our community, ensuring relevance and growth.
How can a brand build a successful community in the beauty industry?
Building a successful community in the beauty industry hinges on authenticity, which has remained a constant driver of purchase across changing eras. Two decades ago, customers relied on recommendations from close family and friends. This evolved to trusting magazines, celebrities, and in the recent years, influencers and founders. The personal touch, a narrative that resonates with consumers on a personal level, is vital. It's about being "someone like me" - understanding the story behind the product and the brand. Authenticity, especially in the long term, is essential. As brands grow, maintaining their core values and connection with the community becomes a challenge. Thus, preserving this authenticity while scaling is a key aspect of continuing to build and nurture a loyal community.
In the beauty industry, emotional connection is paramount. It is not just about the functional attributes of the products but also about how these products make consumers feel. This sense of community and emotional connection is what sets successful brands apart. The goal is to ensure that consumers identify with the brand and consider it a part of their identity. As brands grow, they must safeguard this connection, ensuring that their growth does not alienate them from the foundational principles that garnered them a dedicated following in the initial stages.
What have been the key factors to your brand's success, especially given the volatile nature of SPACs in the market?
Our success can be attributed to our unwavering commitment to empowering the founders and teams of our acquired brands, allowing them to continue with their momentum. In the beauty industry, a sector known for its resilience and profitability, we have maintained a focus on aligning with dynamic brands that exhibit a robust potential for growth and longevity. Our strategy is not confined to chasing trends but is rooted in identifying and nurturing brands with a strong identity and community connection, which are integral to enduring success.
In terms of acquisition and commercial strategy, we are focused on aligning with brands that resonate with our values and have the potential to become iconic. We’re not limited by category; our objective is to build a diverse portfolio of brands that can stand the test of time. A brand’s potential to evolve while retaining its core DNA is essential. In a world inundated with transient trends and products, we seek to foster brands that transcend these ephemeral dynamics, offering a sense of identity and community to their users.
What are the emerging trends in the beauty industry, and how is your brand positioning itself in this evolving landscape?
The beauty industry is witnessing a compelling blend of trends, with sustainability taking center stage. Consumers are not only seeking sustainable options but products that seamlessly integrate into their lifestyles. Balancing sustainability with consumer-friendliness is a nuanced challenge.
Moreover, there's a duality in trends - a gravitation towards natural ingredients and a simultaneous inclination towards science-led skincare, showcasing the industry's diverse and dynamic nature.
Another captivating trend is the return to ancestral or ritualistic beauty, a shift from the fast-paced nature of modern life to practices that are grounding and holistic. The intertwining of external beauty and internal wellness is becoming increasingly prominent. Our approach is informed by these trends; we’re not just reactive but proactive, identifying and aligning with brands that embody these evolving consumer preferences and values. Our aim is to be at the forefront, shaping the industry's future, not just participating in it.
What is your message to aspiring Arab founders in the beauty industry?
For aspiring Arab founders, the message is one of encouragement and opportunity. The world is increasingly embracing diversity, and there is a growing appetite for representation and unique cultural narratives in beauty. The industry is ripe for brands that offer different perspectives and aesthetics, rooted in rich cultural heritages. It's an opportune moment to introduce Arab-born brands to a global audience, given the current trend of grounding in ancestral beauty and the quest for authenticity.
Our company is committed to fostering a diverse portfolio that echoes our values of authenticity, consumer centricity, inclusivity, and sustainability. We aim to be the home for the indie brands of tomorrow, a haven for founders with a distinct point of view and a desire to bring something different to a global audience. Our objective is not just to witness the evolution of the beauty industry but to be instrumental in shaping a future that is inclusive, diverse, and representative of the myriad beauty narratives that enrich our world.
