附近上门

Even in ancient times, there is evidence that cosmetics were a big deal.

Kohl鈥攁s worn by Cleopatra, for example鈥攚as traditionally made by grinding stibnite. It was used to contour, darken the eyelids, and apply as mascara for eyelashes.

In today鈥檚 world, major global conglomerates have dominated the sector with most consumers purchasing their cosmetics from drug or department stores. But with the advance of technology, and the increasing popularity of social media as a marketing tool, the beauty industry has proven itself ripe for disruption.

Follow 附近上门 News on &

More companies are offering customized makeup and hair care products for consumers via apps and websites. That鈥檚 especially appealing to younger consumers who have grown up using devices and technology to shop. Investors have been slow to get excited, but there is evidence that the beauty industry is about to enjoy a number of new, well-funded competitors.

Most recently, Taiwanese beauty app developer in a Series A round led by and joined by , , and And earlier this year, Function of Beauty 鈥� which offers personalized hair care products 鈥� in a Series A round led by Menlo Park-based .

The industry has also seen some impressive exits. In 2016, agreed prestige beauty brand for $1.2 billion in cash in a deal that marked its largest purchase in eight years. Also in 2016, makeup brand for $1.45 billion. Notably, the brand millennials and Generation Z, with 85 percent of its consumers reportedly under the age of 40, according to The Street.

鈥� co-founder and CEO of , an analytics platform for increasing convenient consumption of cosmetics 鈥� noted that 70 percent of the beauty industry is run by about 10 conglomerates.

鈥淚t isn鈥檛 as saturated as people think. It鈥檚 mostly all run by the same people 鈥� very acquisitive people,鈥� she told 附近上门 News. 鈥淚 think the venture world is missing that.鈥�

The Beauty Of Data

If 附近上门 data is any indication, interest in the sector has actually waned in recent years. But industry observers believe that trend will change as more investors realize the value and potential of beauty tech startups.

Globally, venture funding into beauty startups experienced a four-year surge. In 2015, that surge ended at a peak of $921.9 million across 187 deals, compared with just $120.9 million over 86 transactions in 2012. However, by 2016, activity slowed to $608.9 million across 150 deals, with no clear recovery in sight as 2017 comes to a close.

Despite the declines, one particular beauty model seems to have legs.

CEO and Co-founder came up with his beauty startup while working on his PhD at the Massachusetts Institute of Technology (MIT).

鈥淭here, I realized technology was transforming the way products are formulated and created,鈥� he told 附近上门 News. 鈥淎nd with the idea that every single person is unique and different, we should be able to leverage technology to create unique and different products for each and every person.鈥�

Unique Styles

Indeed, the idea of cosmetic and hair care products being customized to the individual is one of the most common aspects of companies that are raising venture money.

Further, Dossa recognized that the cosmetics and hair care industry had 鈥渢ons of middlemen.鈥�

鈥淚 figured that it was possible to eliminate many of those as possible through technology as a whole,鈥� he said.

Function of Beauty works by having the consumer take a hair quiz on its website. The results of that quiz then determine the formulation of shampoo or conditioner created specifically for that individual, Dossa explained.

鈥淲e use a lot of advanced manufacturing to automate that entire process,鈥� he added. 鈥淩ather than doing huge batches of development, we鈥檝e been able to narrow it down to combining ingredients one product at a time.鈥�

Founded in February 2015, Function of Beauty launched in October 2016. It has since seen 鈥減henomenal鈥� growth and now has 72 employees, according to Dossa.

鈥淲ord of mouth has been our biggest driver of sales,鈥� he said. 鈥淲e鈥檙e very much a function of our customers鈥� desires and requests so we鈥檙e exploring moving outside of the U.S. and Canada and into new product lines.鈥�

, managing partner at , was attracted to the idea that Function of Beauty essentially marries personalization with body grooming.

鈥淢ore and more 鈥� especially in the U.S but increasingly globally 鈥� we鈥檙e seeing brands emerging reaching out to younger millennial consumers who are growing up with social media, ipads and smartphones,鈥� he said. 鈥淭hey just have a different relationship with brands.鈥�

In Tung鈥檚 view, companies that marry technology with brand positioning, supply chain management, and social media have the best chances of success.

He was impressed with Function of Beauty鈥檚 ability to personalize hair care products.

鈥淚t鈥檚 a massive category mainly dominated by huge companies such as and ,鈥� Tung told 附近上门 News. 鈥淚t鈥檚 been done the same way for decades. Once it鈥檚 disrupted in this way, it鈥檚 not as easy for incumbents. Fortune 500 companies just can鈥檛 change their standard operating procedure just like that.鈥�

Overall, he believes personalization is going to play a huge role in many consumer sectors.

鈥淚 believe Function of Beauty is well-positioned to take advantage of that in the beauty and grooming categories,鈥� Tung told 附近上门 News.

Looking ahead, Fredrickson notes that beauty is a massive sector that has the potential for 鈥渘ew dominant players to come in what was otherwise a consolidated space.鈥�

鈥淚t has incredible margins and massive exits,鈥� she said. 鈥淎nd these large companies aren鈥檛 translating enough to millenials.鈥�

Startups that are able to successfully marry technology with personalization, convenience, and ease of delivery appear to be the ones most poised for success.

滨濒濒耻蝉迟谤补迟颈辞苍:听