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Why the Farmacy, Ouai and Tula acquisitions made sense
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Welcome to Glossy’s Week in Beauty & Wellness, our newsletter recapping the biggest industry news you missed this week. Every Friday, we’ll spotlight the in-depth features, case studies and exclusive beauty news we published in the days prior, building on the originally reported stories with more insight on why they matter. Let us know what you think! And if there’s something more you’d like to see within our industry-leading beauty and wellness coverage, we’d love to hear from you.
Procter & Gamble is in the middle of a spending spree. Since November, it’s scooped up hair-care brand Ouai and skin-care brands Farmacy and Tula. It’s clear that it’s rebuilding its prestige beauty category, after selling off its specialty beauty division to Coty in 2016. That included 43 brands, from Clairol to Covergirl, as well as multiple beauty licenses.
P&G’s new, digital-savvy brands play into its modernization strategy. But to avoid past mistakes, it will need to get out of their way.
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It makes sense that P&G is looking to build on its prestige beauty offerings, which, prior to November 2021, included just First Aid Beauty and SK-II. In the first half of 2021, prestige beauty recovered faster than other beauty categories, growing by 11%, according to The NPD Group.
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P&G picked up three prestige beauty brands in a two-month timespan, starting on November 15. Its most recent buy, Tula, no doubt had the heftiest price tag. In 2021, the brand reportedly earned $150 million in net sales. That’s twice the revenue of Farmacy and three-times that of Ouai.
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According to experts, P&G should take a hands-off approach to these partnerships, rather than attempt to “Procter-ize” the brands. Its management of Gillette should serve as a lesson learned: After P&G bought the company in 2005, it lost $8 billion in value in the next 14 years, failing to compete with Harry’s and Dollar Shave Club.
After realizing the impact of appealing to Gen Z, Maybelline is being more intentional in its attempts to earn the demo’s stamp of approval. Last year, the brand’s Sky High mascara happened to go viral on TikTok. Now, with this month’s release of its Curl Bounce mascara, it’s making a direct play for young shoppers.
From the formula to its packaging, every aspect of the product was designed with Gen Z in mind:
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The corresponding marketing visuals are music-inspired, based on data showing the importance of music in Gen Zers’ lives.
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Meant to reflect the unprecedented level of diversity making up Gen Z, a diverse array of influencers – of various genders and with different follower counts – were tapped to spread the word.
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The product packaging is yellow and white, in keeping with the notorious Gen-Z aesthetic.
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Maybelline is promising that the product delivers lasting curl, partly driven by the rise of lash perms among young people.
BY EMMA SANDLER | JAN 21, 2022
It took a pandemic, but the at-home hair-dye category has finally been disrupted. As salons closed and DIY hair care became the only option, more people turned to over-the-counter color – and beauty brands took notice. In the last two years, brands offering at-home hair color have expanded well beyond the old drugstore standbys of Garnier, L’Oréal and Nice & Easy. The latest is IGK, which launched a 25-shade range in Ulta this month. Targeting Gen-Z and millennials, the company rethought every aspect of traditional boxed color, from the branding and the marketing to the design of the included instructions.
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