E.l.f. Priming Alicia Keys Brand, Fans For Global Launch: ‘The World Is Craving A Brand With Soul’
Executive Summary
Coming off its seventh consecutive quarter of net sales growth, E.l.f. expects big things from Keys Soulcare, its third and loftiest brand that is building an online community ahead of initial product launches and a global debut planned for the new year.
E.l.f. Beauty, Inc.’s new lifestyle beauty brand created with 15-time Grammy-winning artist Alicia Keys – Keys Soulcare – is busy growing online buzz ahead of its first product introductions planned for December and a full-scale, global launch in early 2021.
“This is not another celebrity beauty line. We see Keys Soulcare as a brand with long-term potential. Alicia is truly an inspiration to so many, and we believe her passion for bringing light into the world will resonate with a broad set of consumers across the globe,” Chairman and CEO Tarang Amin told analysts on 4 November.
In a call to discuss E.l.f.’s fiscal 2021 second-quarter results, Amin said the Oakland, CA-based firm has “a multi-category, multi-year pipeline of innovation to drive [Keys Soulcare] beyond the initial launch.”
Currently, the brand is seeding itself in consumers’ imaginations through digital content, conversation and community-building at keyssoulcare.com and E.l.f.’s social-media platforms.
The Gen Z-focused firm has been particularly successful on TikTok with its #eyelipsface and #elfMagicAct hashtag challenges, both viral slam dunks.([A#RS150067])
“TikTok is taking note how e.l.f. is changing the game,” Amin said. He pointed to the brand’s creation of the first-ever TikTok reality show, “Eyes. Lips. Famous,” announced in August, which will provide entry winners with the opportunity to learn from leading TikTok influencers and represent e.l.f. on the platform.
E.l.f. has been investing more deeply in other social media channels, including Instagram, YouTube, Snapchat and Pinterest. In its infancy, Keyssoulcare has garnered some 32,000 followers on Instagram to date, with engagement metrics “trending well above platform averages,” according to Amin.
“The Keys Soulcare community is active, vocal and passionate about Alicia and the brand,” the CEO said, adding, "It's clear now more than ever, the world is craving a brand with soul."
“We're the fastest-growing among the top five color cosmetics brands in the US, and we see a lot of runway ahead.” – Tarang Amin
Described as entry-level prestige, Keys Soulcare will launch its first three products online on 3 December – a signature, sage and oat milk candle and two skin-care products to offer a taste of the complete skin-care line coming in 2021.
Stateside, Ulta Beauty will be the brand’s exclusive national retail partner.
At the head of Keys Soulcare is E.l.f.’s chief marketing officer Kory Marchisotto, whom Amin noted was one of 10 winners of Adweek’s 2020 Brand Genius Awards, alongside top talent at Procter & Gamble, PepsiCo, Walmart, Nike, Apple and Disney+. (Also see "What Did US Consumers Buy With Stimulus Checks? E.l.f. Beauty Products, For One Thing" - HBW Insight, 11 Aug, 2020.)
Marchisotto served previously as senior vice president of marketing at bareMinerals and, before that, spent 16 years in marketing leadership roles at Shiseido Americas.
Keys Soulcare offerings will sell for $20 to $40 apiece, adding a new dimension to E.l.f., whose namesake cosmetics line is positioned as premium-quality beauty products at value price points. The company acquired masstige, “clean beauty” brand W3LL People last year and rebooted it in October. (Also see "E.l.f. Puts Premium On ‘Clean Beauty’ With First Strategic Acquisition: W3ll People" - HBW Insight, 26 Feb, 2020.)
E.l.f. sees the brands as complementary with distinct consumer segments.
The firm booked $72.4m in net sales for the second quarter ended on 30 September, a 7% increase versus the prior-year period, marking its seventh consecutive quarter of net sales growth. (Also see "‘Moving At e.l.f. Speed’: First-To-Mass ‘Dupe’ Beauty Specialist Powering Through Pandemic" - HBW Insight, 28 May, 2020.)
Barring any significant disruptions to its consumers, customers or supply chain for the remainder of fiscal 2021, E.l.f. is projecting net sales growth of roughly 5% to 7% for the full year.
“We're the fastest-growing among the top five color cosmetics brands in the US, and we see a lot of runway ahead,” Amin said.