Budget-Friendly Beauty Brand E.L.F. Sees Stock Shares Explode
Beloved affordable makeup brand e.l.f. Beauty made a splash during its debut on the New York Stock Exchange last Thursday as shares soared 56% from initial offering price. With a closing price of $26.50 per share, valuing the company at $1.18 billion. In total, the company was able to raise a cool $141 million.
E.l.f.’s high-quality yet budget-friendly wares tackle that sweet spot between high-priced prestige makeup and its uninspired, mass-produced counterpart. The beauty brand can typically be found strategically located in big-box retail chains and drugstores such as Target, Walmart and CVS.
A diverse demographic and an equally diverse workforce…
E.l.f. has had a strong reach with millennials and Hispanics in particular. As per CEO Tarang Amin, “E.l.f. Beauty cosmetics were always focused on diverse consumers and millennials long before it was fashionable to do so. We don’t believe women should have to pay high for luxurious beauty products. And we believe in serving all women.”
It would appear that e.l.f. takes the idea of better serving their target demographic, a diverse group of price-conscious makeup enthusiasts, to heart. In fact, the proud CEO ascribes much of their success in doing so to the fact that 80% of e.l.f.’s workforce is female, while 70% are millennials.
Despite an incredibly impressive performance amid a weak IPO market, e.l.f. shows no signs of slowing down and sitting pretty as they plan to expand into brick-and-mortar stores. As Amin explains, “[e.l.f.’s] real objective is long-term how to make luxurious beauty accessible to all women.”
…means learning about your customer from the inside, out.
While this is no doubt inspiring, e.l.f.’s story can also teach a valuable lesson about the importance of not only having a diversified staff, but a company comprised of some of the very same people you’re hoping to connect with. Seems easy enough, but how many times have we seen a company being raked over the coals due to a tone-deaf social campaign that only shines a harsh light on how lacking in diversity they really are? What about companies experiencing major pushback from their customers, who say while they used to love the brand, now feel completely alienated?
While turning a blind eye to all those with opposing opinions is definitely too far in the wrong direction, having your target demographic be a part of your workforce means gaining important consumer feedback directly from the inside.
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