How Merit Won Over the Grown-Up Glossier Girl

Three years in the past, the sweetness world had seemingly misplaced curiosity in Millennials and set its eye on a shiny new set of spenders: Gen-Z. However serial entrepreneur Katherine Energy, who based trend editorial web site Who What Put on, skincare line Versed and natural wine model Avaline, felt the world wanted a minimum of yet another Millennial model – minus the pink.

“We’ve at all times gone after this older Millennial … who didn’t really feel like they match into a number of the Millennial manufacturers with the pink and the neon,” mentioned Energy of Advantage Magnificence, a clear color line launched in January 2021.

Her instincts have paid off. Advantage, which is bought direct-to-consumer and thru Sephora, is worthwhile and surpassed $100 million in retail gross sales final yr. In 2024, it’s projected to achieve over $100 million in income with its line of merchandise geared towards creating quick and straightforward “no-makeup make-up” appears to be like. With its fast ascent, the model has its eye on the longer term. In February, it appointed former MAC Cosmetics world president Philippe Pinatel as CEO. This yr, it additionally tapped Goldman Sachs to discover exit choices.

At a cheaper price level than different clear or luxurious magnificence labels — its particular person merchandise price between $20 to $40 — Energy is betting that traditional, minimalist make-up is a successful idea.

“It’s very totally different from many of the trade, which tends to go along with the buyer who could be very avid about magnificence and passionate in regards to the class,” mentioned Pinatel, who describes the Advantage buyer as one with a “pragmatic strategy to magnificence.”

Millennial Gold

Advantage’s January 2021 launch got here as the sweetness world was obsessing over the decline of Millennial pink and the sweetness “girlboss” period. As trade commentators had been hailing the tip of the curated Instagram aesthetic and rise of Gen-Z manufacturers with colourfully chaotic style, Advantage opted for a handful of merchandise like its Flush Balm blush orb and Bronze Balm stick bronzer in understated gold, beige and lucite packaging.

“They cater to working girls and complicated girls. A whole lot of the sweetness manufacturers have gone very Gen-Z,” mentioned Brooke DeVard, a Millennial content material creator and host of the podcast Bare Magnificence, who has performed branded social content material for Advantage. “[Merit] feels grown-up. It feels pulled collectively. It appears like, ‘We would like the no-makeup make-up look, however we wish one thing that feels a little bit bit extra grown-up than say, Glossier.’”

Energy isn’t any stranger to model constructing. She based or co-founded Who What Put on in 2006, life-style website Byrdie in 2013, Versed in 2019 and Avaline in 2020 with Cameron Diaz, who has appeared in get-ready-with-me movies on Advantage’s YouTube web page whereas consuming wine. Advantage, like a number of of Energy’s different manufacturers, discovered its candy spot with Millennials and Gen-Xers. Over 50 p.c of Advantage’s web site guests are between the ages of 25 and 45.

“We had been creating Advantage throughout a time of maximalist magnificence, development magnificence and artistry magnificence. There was this micro era that wasn’t being addressed inside the new manufacturers that had been popping out,” mentioned Energy.

Much more necessary than age demographics is psychographic profiles, mentioned Pinatel. In line with Energy, the model’s idea resonates with magnificence customers in a number of key methods: luxurious positioning at a cheaper price level (its basis stick is $38, whereas Westman Atelier’s is $68), an ingredient profile that matches Sephora’s “clear” ingredient lists (developed with the assistance of Billie Eilish’s esthetician Biba de Sousa) and fast routines for busy professionals. With a number of merchandise in a stable stick format, Advantage emphasises the thought of the “five-minute face” that may be performed on the go; Energy herself likes to do her make-up within the automotive.

Whereas priced about 30 p.c decrease than comparable labels within the luxurious magnificence market, in response to Energy, the label leans into upscale and fashion-forward positioning. Energy’s trend media expertise working Who What Put on has shone via and has helped appeal to a cult of fashion-world faces to star in campaigns together with former Vogue inventive director Grace Coddington, ex-J.Crew designer Jenna Lyons and supermodel Helena Christensen.

And regardless of not being a make-up artist model like Mario Dedivanovic’s Make-up by Mario or Gucci Westman’s Westman Atelier, Pinatel mentioned that the truth that Advantage is a “fashion-adjacent model” offers it “a really inventive aesthetic and really clear route.” For the Fall/Winter 2023 trend season, it collaborated on a bag with Proenza Schouler whereas additionally being energetic backstage on the label’s runway present, offering make-up appears to be like on fashions together with Bella Hadid.

Nailing the Fundamentals

As a slew of cosmetics manufacturers equivalent to Make-up by Mario, Glossier and Uncommon Magnificence, in addition to fellow clear color labels Kosas and Westman Atelier, are all reported to be entertaining exit choices, Advantage’s success has stood out because it achieved profitability in a brief time period.

Whereas e-commerce makes up half its gross sales, Advantage has averted the DTC-only mannequin of earlier Millennial labels. It launched with Sephora a month after its model debut in February 2021. Up to now, its Minimalist Perfecting Complexion Stick is the primary stick basis on the magnificence retailer, in response to the label, its Solo Shadow eyeshadow grew to become Sephora’s top-selling eyeshadow at launch and its Flush Balm and Bronze Balm are within the prime 5 of their respective classes.

The recognition of stick merchandise ties into Advantage’s consideration to quick and straightforward make-up routines. This has led to prioritising full-face bundles equivalent to its five-piece “Polished Set” for $129. This technique has meant that no product makes up greater than 20 p.c of its income; the model’s common order worth on its DTC website is over $100.

To increase its development, the model’s subsequent strikes embody introducing extra multi-purpose merchandise, in addition to a push into worldwide markets. It has three extra merchandise popping out this yr and plans to broaden extra deeply into skincare. Worldwide growth has begun with a DTC launch within the UK, with additional plans to maneuver into Europe. These efforts are already mirrored on Advantage’s social media channels, the place a big portion of its “quiet luxurious” influencers are based mostly in France. Whereas Pinatel has intensive expertise working magnificence manufacturers in Asia, he mentioned “it’s too early to discuss” a extra world footprint.

And as sale rumours proceed to comply with the model, Energy mentioned firmly, “We’re not engaged in a sale course of right now. … I encourage all my manufacturers to make relationships with bankers nicely forward of any sort of course of, as a result of I believe it’s necessary to get to know the market. And Goldman is clearly prime of their area.”

For now, model constructing seems to be Advantage’s focus.

“Our buyer is shopping for the merchandise for his or her daughter and recommending them to their mom,” mentioned Energy. “We actually wished to create one thing that was multi-generational, that might stand the take a look at of time.”