How E.l.f. Noticed A 49% Improve in Gross sales by Focusing On Gen Z

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Is there something extra satisfying than getting an incredible deal on a extra reasonably priced model of a preferred 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 price. On the time of its launch, most of e.l.f.’s merchandise price 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 and marketing. 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 and marketing 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 and marketing technique to concentrate on TikTok’s person 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 unique tune that was catchy sufficient to go viral and inspired TikTok customers to function the tune 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 choices:

• Social duty: 50% of Gen Z customers received’t buy merchandise from magnificence manufacturers that aren’t cruelty-free.
• Affordability: Gen Z may be extra frugal than different generations. 80% of Gen Z customers will wait till an merchandise goes on sale to purchase it, and 60% of Gen Z consumers stated the worth of a product was the primary issue they contemplate when making buying choices.

These are two areas e.l.f. cosmetics can ship on. Since its founding, e.l.f. has been cruelty-free and continues to middle this level in its messaging. In comparison with different magnificence manufacturers, e.l.f. continues to be among the many most reasonably priced choices.

Convey on the dupes

Capitalizing on its popularity as an reasonably priced model, e.l.f. started introducing extra budget-friendly options to viral magnificence merchandise, often known as dupes. 

A few of e.l.f.’s dupes which have gone viral on social media embody:

• Halo Glow Liquid Filter ($14): a preferred 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 harking back to Charlotte Tilbury’s Magnificence Gentle Wands ($42)
• Forehead Raise ($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 just like Supergoop’s in style Glow Display screen product ($38)

From the packaging to the formulations, it’s clear that e.l.f. is hoping to seize budget-conscious prospects who’re searching for reasonably priced options to those higher-end merchandise. When these prospects share their findings, it usually ends in user-generated content material that has excessive attain and engagement potential.

Along with creating dupes of in style high-end merchandise, e.l.f. has additionally launched a collection of high-profile collaborations designed to be a focus 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 also be a preferred model amongst Gen Z consumers).

How efficient was e.l.f.’s pivot to concentrate on Gen Z?

Based mostly on the knowledge accessible, these ways have definitely been efficient. In accordance with Piper Sandler’s spring 2023 survey, e.l.f. is the era’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 anticipated to proceed. Earlier this yr, e.l.f. raised its 2023 outlook by practically $100 million.

That’s a variety of concealer.

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