SMALL BUSINESS GROWTH   |   6 minute read

The beauty business revolution: 4 brands paving the way for digital transformation

Virtually every major industry has seen an upheaval in recent years as a result of digital technologies changing the way we do business – but perhaps none more than the beauty and cosmetics industry.

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Digital transformation solutions like eCommerce platforms, influencer marketing and cloud-based business software have led the rise of digital-born, single-brand beauty and cosmetics companies, leaving traditional department stores in their wake.

According to a 2017 study by Deloitte , digital channels have become the primary arena for consumer decision making when shopping for beauty products and cosmetics. What’s more, consumers aren’t as interested in the mass-market selling tactics that worked for top beauty and cosmetics brands just a few years ago.

Instead, consumers are looking to smaller single-brand companies that can offer personalized, convenient online shopping experiences.

Here, we look at four beauty and cosmetics brands leading the charge for the industry’s digital business transformation. Beauty Cosmetics Industry

Dirty Knees Soap Co.

Dirty Knees Soap Co. is an eco-conscious skincare brand specializing in quality handcrafted soaps, lotions and body care products made with minimal ingredients and sold at a reasonable price.

Based in north-western Minnesota, they sell to retail and wholesale customers throughout the US. A key to the company’s success is using digital technologies to integrate and streamline various functions, allowing them to operate as lean as possible. They use TradeGecko to automatically import orders from Shopify and enable wholesale customers to shop and pay invoices via TradeGecko’s B2B eCommerce platform

Dirty Knees Soap Co.’s founder, Heidi Danos, says moving from a SWOTS (See What’s On the Shelf) inventory management system to an integrated approach has been transformative :

Everything is all in one place and it’s just so much easier to manage. If you have any inclination of needing some sort of inventory management software, you probably do, and in the long run, it’s going to save you time, money, making mistakes and a lot of hassle.

The Skincare Company

The Skincare Company is the brainchild of Joanne Auld, a certified cosmetic nurse who also runs her own successful skincare clinic. Her experience in the industry taught her that customers wanted proven effectiveness and a straightforward routine that was not only going to actively help their skin but also offer good value for money.

As Joanne told beautyholicsanonymous , “It’s my personal mission to strip out any unnecessary ingredients and ensure our products are as active and effective as possible. Many products on the market have lists on 25 or more ingredients on the labels and I can tell you that most of these are superfluous and artificial. Our active products have only essential ingredients in them.”

With just eight staff, the company sells wholesale to 42 stockists in Australia and run an eCommerce store with delivery to Australia and New Zealand, with plans to scale internationally. How do they do it? The Skincare Company puts their ongoing growth down to utilizing the right systems to allow them to scale up:

TradeGecko helps The Skincare Company by offering a complete business management tool that can grow as our business grows. The mobile sales app is used extensively by our sales teams, and the feedback from our B2B customers regarding the ordering interface is exceptionally positive.

Paula’s Choice Singapore  

The evolution of Paula’s Choice is testament to the power of a well-planned digital transformation strategy. The company was formed in the US 23 years ago but the distributorship came to Singapore 9 years ago.

With the rise of online shopping, Paula’s Choice Singapore leveraged social media to benefit from connecting with customers and provide quality skincare advice and education. CEO Jeremy Tan also made the switch to TradeGecko to facilitate an omnichannel experience across online and offline channels:

TradeGecko has really impacted us by saving a lot time and helping us develop unique experiences for our customers. I would recommend it to businesses that are attempting to sell both online and offline technology because it helps them structure the way they think about their organization.

Pinks Boutique

For Pinks Boutique founders Luke and Kirstie Sherriff, their focus from day one was on selling the highest-quality certified-organic products and educating people on the benefits of going organic. As Kristie told The Beauty Bank , “The strategy was and still is to be able to offer the professional sector and crucially the clients that walk in the door a genuine natural and organic [product].”

They began selling their products wholesale as an offshoot to their beautician-training business before branching out into retail sales through their eCommerce store. Luke says that the switch from wholesale-only to wholesale-and-retail was when they realized they needed a more sophisticated system to centrally handle orders.

Today, Luke says they use TradeGecko’s mobile app and B2B eCommerce platform, and integrate with Shopify to manage their stock and sales orders from anywhere, at any time:

TradeGecko’s cloud-based system and mobile app are useful for us as a mobile business when we’re out on the road. Plus, the integration with Shopify is brilliant. It allows us to manage everything in the one place.

The B2B eCommerce platform reduces errors and makes the whole B2B sales process a lot more seamless. It’s probably the greatest feature ever invented.

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