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 a fantastic deal on a extra reasonably priced model of a preferred product? Followers of the wonder firm e.l.f. don’t appear to suppose 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 progress, 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 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 unique track that was catchy sufficient to go viral and inspired TikTok customers to function the track 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 excitement going, e.l.f. centered its messaging on key factors that Gen Z values when making buying choices:

• Social accountability: 50% of Gen Z customers received’t buy merchandise from magnificence manufacturers that aren’t cruelty-free.
• Affordability: Gen Z might also 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 value of a product was the primary issue they take into account 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.

Carry on the dupes

Capitalizing on its status as an reasonably priced model, e.l.f. started introducing extra budget-friendly alternate 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 Elevate ($6): an eyebrow gel that’s thought-about 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 common 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 reasonably priced alternate options to those higher-end merchandise. When these clients share their findings, it typically ends in user-generated content material that has excessive attain and engagement potential.

Along with creating dupes of common high-end merchandise, e.l.f. has additionally launched a sequence 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 customers).

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

Primarily based on the data out there, these techniques have actually 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% enhance in gross sales from 2021 to 2022. Moreover, e.l.f.’s progress outpaced the general progress of the cosmetics trade. In 2021, the cosmetics trade noticed an 8% year-over-year enhance, whereas e.l.f. grew by 36% and the momentum is predicted to proceed. Earlier this 12 months, e.l.f. raised its 2023 outlook by almost $100 million.

That’s a whole lot of concealer.

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