DTC Brands Embrace Brick and Mortar Retail for Growth
- Naturium lands in Ulta Beauty
- 46 products available in over 1,400 stores
- DTC brands expanding into brick and mortar for consumer awareness
- Hybrid approach to selling
- Wholesale remains the most profitable investment channel
- E.l.f. acquired Naturium for $355 million last year
Naturium, a skin care brand acquired by E.l.f. last year for $355 million, is expanding its reach through wholesale distribution channels. The brand has now landed in over 1,400 Ulta Beauty stores and continues to grow its customer base. This move reflects an industry trend of DTC brands adopting a hybrid approach to selling, combining online and offline retail strategies for increased consumer awareness. A recent report by NuOrder suggests that wholesale remains the most profitable investment channel for beauty brands. E.l.f.’s revenues have grown significantly since acquiring Naturium, with net sales exceeding $1 billion in fiscal 2024, partly due to its successful wholesale partnerships.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Naturium’s expansion into wholesale, its partnership with Shoppers Drug Mart, and E.l.f.’s growth through wholesale partnerships. It also mentions the acquisition of Naturium by E.l.f. and Susan Yara’s involvement as the brand’s founder. However, it lacks some context on the industry trend of DTC brands venturing into brick-and-mortar retail and doesn’t mention any potential drawbacks or challenges of this approach.
Noise Level: 3
Noise Justification: The article provides relevant information about retailers expanding into brick-and-mortar stores to boost their customer base and growth through wholesale partnerships. It also highlights the success of E.l.f. Beauty’s collaboration with Naturium. However, it lacks in-depth analysis or exploration of long-term trends and does not offer significant actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the acquisition of Naturium by E.l.f. Beauty and its expansion into wholesale, which impacts the beauty industry and the financial performance of both companies.
Financial Rating Justification: The article mentions financial figures such as $355 million acquisition price, 77% revenue growth, and $1 billion net sales for E.l.f. Beauty, showing relevance to financial topics.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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