From Analytics to Action: How Marketing Mix Modeling Helps Inform the Estée Lauder Companies’ Activation Strategy
On Ep. 54 of Earned, we spoke to Doug Jensen, SVP of Go-to-Market Analytics & Activation for the Estée Lauder Companies (ELC). We...
March 16, 2021
After a COVID-related slowdown in the blockbuster beauty acquisitions that rocked the industry prior to 2020, activity picked back up last month, when The Estée Lauder Companies announced plans to increase its stake in the cult favorite multi-brand skincare company DECIEM. Estée Lauder’s decision to increase its ownership from 29% to 76%, with plans for full ownership after three years, represents a remarkable achievement for DECIEM, a one-time underdog within the saturated skincare market that’s now valued at $2.2 billion.
Founded in 2013, the internet-beloved company found success thanks to its digital-first, direct-to-consumer marketing strategy, distinctive branding, and science-backed products. These factors have come to define skincare’s continued ascent amid setbacks to beauty as a whole, cementing DECIEM’s status as a trendsetter within one of the space’s hottest markets. Below, we take a closer, Earned Media Value (EMV)-driven look at how DECIEM achieved this stunning success, and what its several brands now offer Estée Lauder.
By marketing itself as a sleek, science-backed—and often ultra-affordable—alternative to traditional skincare products, DECIEM—the umbrella company for “abnormal” skincare brands like The Ordinary, Niod, and more—attracted attention from the next generation of skincare influencers. The brand quickly assembled an arsenal of high-profile Gen Z advocates, including superstar vlogger Hyram Yarbro (@skincarebyhyram on Instagram) and makeup artist Kali Ledger (@kali.ledger). These savvy content creators, who helped bring other young consumers into the DECIEM fold, reflected the brand’s Gen Z-friendly spirit perfectly: Hyram could be considered one of the biggest names on TikTok, while Kali seamlessly blends beauty content with support for political causes like Black Lives Matter. From February 2020 to January 2021, Hyram and Kali powered a respective $5.0M EMV and $2.0M EMV as DECIEM’s top two highest earners.
Beyond its impressive sales figures—DECIEM enjoyed net sales of $460 million from February 2020 to January 2021—Gen Z’s enthusiasm for the company’s multiple brands, particularly The Ordinary, presents Estée Lauder with a unique opportunity to make inroads among this valuable demographic. While Estée Lauder remains a prestigious name within the beauty industry, many consumers are turning to new alternatives, especially brands that cater to the dewy, natural aesthetic currently in vogue. (Minimalist packaging is on the rise, too.) This generational divide helps explain many beauty influencers’ emphasis on skincare as a key component of their makeup routines—a shift that in turn helps explain DECIEM’s runaway popularity among beauty gurus. By locking in one of the most buzzworthy skincare brands on the market, The Estée Lauder Companies, Inc. has opened a path to a new audience for its makeup offerings, while maintaining the possibility of intriguing crossovers down the road.
In addition to the demographic dynamics that made DECIEM such an enticing acquisition target, the brand has also seen promising momentum in quantifiable metrics over the past year. From February 2020 to January 2021, DECIEM pulled in $58.8M EMV; while this fell slightly below the Estée Lauder brand’s own $65.5M EMV figure, DECIEM’s haul represented a 25% year-over-year growth, outpacing Estée Lauder’s 17% YoY decline.
Moreover, DECIEM’s community of 13.7k content creators proved larger than Estée Lauder’s 11.6k. A monthly analysis of the two brands’ community figures proves telling: while Estée Lauder outperformed DECIEM in February 2020 (1.1k vs. 933 content creators), Estée Lauder’s community gradually contracted over the next year, while DECIEM’s steadily expanded. By January 2021, DECIEM claimed 1.2k monthly content creators, while Estée Lauder garnered just 742. This fluctuation reflects accessible skincare’s relative popularity during lockdown, as influencers and their followers took a newfound interest in health and well-being.
With DECIEM, and skincare as a whole, showing no signs of slowing down, The Estée Lauder Companies, Inc. appears to have made an extremely savvy investment. Time will tell what plans Estée Lauder has for these new signature brands, but for now, look for DECIEM to continue to innovate as an influencer favorite in skincare solutions.
For more skincare and clean beauty coverage, check out our post on 2021’s top clean beauty brands. And to stay up-to-date on all things beauty, download our latest Tribe Top 10 today!
On Ep. 54 of Earned, we spoke to Doug Jensen, SVP of Go-to-Market Analytics & Activation for the Estée Lauder Companies (ELC). We...
Few market landscapes are as competitive as the food and beverage industry, particularly in the sports nutrition category. If...
In November 2022, when Estée Lauder acquired Tom Ford for an eye-popping price tag of $2.8B, many media outlets focused on the...
Tribe Dynamics’ data-powered influencer marketing platform spotlight the most relevant activations, products, and brands that are driving earned media and moving the landscape (as we speak).
Tribe Dynamics provides iconic brands the full picture of their influencer marketing programs through industry-leading data and influencer marketing analytics solutions. We work with brands, retailers, and agencies across industries—from beauty to entertainment—so let’s get in touch to see if we’re the right fit for you!
“Working with Tribe Dynamics over the past 5+ years has been a true partnership in every sense of the word. The sophistication in their data is unmatched in the industry, and the level of insight in their analysis has become indispensable for any marketer in the beauty space today. They’re truly best-in-class.”
"Tribe Dynamics' influencer marketing platform provides a holistic view of our ambassadors as well as hard data that proves their importance to company leadership."
San Francisco
548 Market St, PMB 85210
San Francisco, CA 94104
Los Angeles
600 Corporate Pointe Ste 210
Culver City, CA 90230
London
WeWork c/o CreatorIQ
Aviation House
125 Kingsway
London, WC2B 6NH