The inaugural Beauty Drop – a 48 hour online-only beauty sale event – closed at midnight last night, giving beauty brands a new opportunity to increase sales and build direct relationships with their customers.
Born from a desire to work more closely with its clients in new ways to create new sources of online revenue, GO Digital combined its entrepreneurial and digital skills to create a standalone brand, The Beauty Drop.
Made for beauty enthusiasts by beauty enthusiasts, the Beauty Drop allows brands to build a direct relationship with their customers via Beauty Drops’ platform, with the support of more than 30 trusted beauty intermediaries.
The traffic and sales figures from the 48 hour event signal beauty consumers value the opportunity to shop directly with their favourite beauty brands.
Says John Yanny, managing director, GO Digital: “The beauty category in Australia is growing rapidly, supercharged by the pandemic with almost 40% growth in online sales but only $1.3 billion or 11% of sales are currently generated online.
“There are lots of reasons that’s the case. A large part however, is due to the simple fact that people like to touch and feel items they’re going to put on their body. That is changing however, especially for younger consumers.
“GO Digital’s core focus is building great digital experiences based on a methodology we call HX – human experience design. We saw the opportunity to combine our skills in digital, an entrepreneurial desire to create new brands, and our mission to help clients grow.
“We’re always looking for ways to be a genuine partner to our clients. We’ve built brands before and understand what it’s like to be in the trenches. It’s the type of experience you can only earn by doing. The Beauty Drop builds an entirely new revenue stream for our clients.”
Before the Beauty Drop, GO Digital, was already working with more than 25 leading beauty brands.
Says Yanny: “The Beauty Drop is close to zero risk for our clients. We’ve put our money where our mouth is and taken on the heavy lifting of promotion, outreach, PR, media buy and negotiation. If we do a good job, we get paid based on the sales we generate for the brands.
“We also know the brands well, so we’re careful to portray them in a way that elevates their profile. We marketed the Beauty Drop in an elevated way to avoid being deemed as another cheap sale.”
Beauty is a rapidly evolving industry with lots of new players in a market typically dominated by large income and brands.
Says Yanny: “Each side of this very broad spectrum has its own challenges and tailwinds.
“Some legacy brands are struggling to tap into new audiences and adapt to a digital first model of customer acquisition and direct relationships with customers, while new brands often struggle to build trust and legitimacy in what is often a very crowded category.
“And when it comes to promotions and sales, brands are either relying on their retail partners to help promote their brand amongst hundreds of other competing brands or they are trying to go direct to market and build relationships with customers that have typically had a long term relationship with an intermediary, like a bricks and mortar store.
“The Beauty Drop is offering a solution to all of these challenges. It’s direct to consumer, communicates in the way brands want to communicate, and is immediately trusted by consumers thanks to a combination of buying directly from their favourite brands, with a confidence boost from our beauty enthusiasts.
“From what we’re seeing this morning, the event has been a win-win-win, for our clients, their beauty brands and their consumers. We’ll dig into the details in the coming days but we’re looking forward to the opportunity to see what we can do with the Beauty Drop brand next.”