e.l.f. targets doubling of market share

Fast-growing e.l.f. Beauty thinks it can significantly increase market share over the next few years, helped by expanded marketing investment that is reaching new audiences.

Tarang Amin, chairman, CEO and president, told an earnings call that the brand had gained share for 19 consecutive quarters, going from 4.5% in 2019 to 10% today. “Given our momentum, we see an opportunity to double our share over the next few years,” he said.

Marketing metrics 

• Over the past four years, marketing investment has gone from 7% of net sales to 22%.
• “Our marketing investment is working, driving ROI multiples above industry benchmarks and helping us reach new audiences,” Amin reported. 
• Brand satisfaction jumped 16 points to 80% while unaided awareness in the US doubled from 13% to 26% – and Amin suggested that could double again.

Strategic imperatives

• Build brand demand. “Our disruptive marketing engine continues to redefine what’s possible in beauty,” said Amin, citing “boundary-breaking” collaborations with female gamers and leading actor Jennifer Coolidge.
• Power digital. “Digital channels drove 17% of our total consumption in Q2 on a much bigger business as compared to 16% a year ago,” Amin said. Much of that is down to 4.1 million Beauty Squad loyalty members, a group growing at 25% a year. “Our loyalty members are a key part of our digital ecosystem, driving almost 80% of our sales on elfcosmetics.com.”
• Lead innovation. e.l.f. claims first or second position across 16 segments of the color cosmetics category, which collectively make up over 75% of e.l.f. cosmetics sales. 
• Drive productivity with retail partners. e.l.f. is driving best-in-class productivity on a sales-per-linear-foot basis with Target and Walmart, according to Amin. “This productivity is earning us additional space with our retail partners.”

Key quote

“We continue to have these holy grails that consumers can’t seem to get enough of and our ability to shine the light on those holy grails through our marketing has been a winning formula that continues to propel the top line and our adjusted EBITDA margins” – Tarang Amin, Chairman, CEO & President, e.l.f. Beauty.

Source from Seeking Alpha

[Image: elfcosmetics.co.uk]