FAB Paris. 2024 perspectives.
We had the pleasure to host an enlightening session for Fab Paris community, a meeting hosted @ Kwerk co-working place, featuring Sophie-Lisa Precheur, Co-Founder PERS Skincare and Fabienne Sebaoun, Founder of Mimétique, (both co-hosting the meeting as the Fab chapter leaders with Isabelle Rabier). An open conversation with the founder of the community, Odile Roujol, also Founding partner of Fab Co-Creation Studio Ventures ( seed stage), living in Los Angeles.
We were honored to welcome a diverse group of attendees, beauty and Fashion brands founders, investors, and beauty experts. The founders of Intacte Beauty, Mire, Orris, Codage, Sene App (fashion), The Colors community…
We talked about perspectives for 2024, especially French brands trying to enter the US market.
THE TAKEAWAY:
1-Science-based:
French founders are famous for being rigorous in their product development and taking time to find their community for the best! Clean beauty is now a basic with all retailers having their standards, sustainability is a focus for them. Performance and research make the difference.
2-Be inclusive from day one,
and use English language if talking to your community, on your site, on social media! (Never forget that brands from London and Sidney have an unfair advantage).
Target some big cities instead of the whole market, focusing on virality, having advocates, regularly putting forward the members of your community.
3-Omnichannel: prioritize.
secure partnerships with retailers caring about your brand, don’t go to fast to big ones! (inventories request a lot of cash, and operations your energy and time),
Goop, violet grey are mentioned for upscale brands, urban outfitters, or thirteen lune for bipoc founders.
All startups are now on Amazon with a dedicated budget in search.
New video shopping channels, TikTok shopping are to discover (learning curve).
Tiktok shop is expected to generate $4B GMV this year alone; Instagram has signed a shopping deal with Amazon to enable Prime purchasing directly on the social platform. We know that brands are going to need help in managing these new video channels,
4-PR: choose flexibility.
retainer fees are high (it can be $10k/ month tor an agency). Most founders have cut the spending in the period and work with publicists (free lance, with a brief for the few months to come).
5-Team: having a co-founder can definitely help to convince investors who avoid solo founders. Else building an advisory council with experts in different spaces and diverse skills can reinsure them you accept feedback and guidance.
6- Last but not least, Funding: survive the period, look at your runway every day!
Most founders in consumer came back to BAs, even after a first round with VCs for safes.
Loans have been cut in the Us as coming from regional banks following the SVB crisis last March.
New funding come from SPVs. Special purpose vehicles.
There is a shift in funding. Some venture capitalist have left consumer tech for good. They returned to Saas and focus on AI driven platforms where exponential growth comes sooner than in beauty.
There won’t be the same landscape in the coming years. And even if new funds emerge in Europe for consumer, be aware of the « cold feet » trend in the US.
France has an advantage with a lot of business Angels in pre seed and seed, and a few family offices in luxury. A better understanding of beauty and fashion, and new commerce (vs only tech in the US).
7- Sustainability:
French companies have the potential to appeal to impact investors. Europe’s regulation is a benchmark including in California. Make yourself a database and send them newsletters regularly to update about your brand’s story and milestones.
A few words about the ecosystem in France by the founders:
“ The French ecosystem is complex like any other, however, business angels who do believe in your approach will support you in delivering a slower build but long term oriented growth” SLP
“French brands are always bringing a qualitative approach to the market. Investors are driven by innovation and sustainability, this is why Mimétique is attracting potential investors (in France and abroad) and initiating competitors analysis.” FS
A few words about two science-based brands “made in France”:
Mimetique. Founded by Fabienne Sebahoun.
Mimétique, the SKIN-MIMETIQUE revolution.
“I am cosmetic chemist, woman in science and founder of Mimétique. Mimétique is the next generation of French dermocometics. The first skincare brand to mimic the skin to regenerate it.
“Skin has been doing its own Research & Development for 7 million years now — it’s one of the world’s most sophisticated technologies!”
It took me over three years to create the brand, develop and clinically test our unique complex called SMR-C5 in partnership with the Chair of Cosmetology at AgroParisTech.
Mimétique is a range of 4 highly dosed formulas that are the basis for an effective, sustainable and innovative routine.
Our launch has been a huge success at Le Bon Marché, in French Pharmacies and online (international shipping). We ship everyday to US, and we are figuring out a way to enter the market in the smartest way for a small brand.” Fabienne Sebahoun
PERS. Co-founded with Quentin Douce.
“I founded PERS in collaboration with a French Medical doctor to deliver a guided approach to skincare, like a prescription. PERS is not only a brand, it’s a universal protocol that allows customer to classify all their skincare products in 4 steps: PROTECT, ENHANCE, REPAIR and STIMULATE. Our products are charged with highly potent best grade ingredients from medical and cosmetics worlds, with an added sensorially that fosters PERSeverance in following the routine on the long run. We aim to achieve a high returning customer rate, which is already happening only after a few weeks into the launch.” Sophie Lisa Precheur
Retail in France
Sophie Lisa and Fabienne shared their experience with le Bon Marché as a great partner, with the feeling they care about the brands they choose. Using tools such as their crm data basis. Helping the brand to have visibility in stores and not at any cost.
“We launched in October at Le Bon Marché as an exclusive Department stores channel. They have been an incredible partner by supporting us with extra visibility on the floor, PR, coaching and more. It really feels like a 2-way partnership, and they are a true brand builder. French pharmacies are a really interesting channel for medical born brands and the pharmacists really has a conversion power when they take the time to advise patients. However brands have to thrive to maintain visibility. » the founder of PERS , SLP
“Finding your customer is key. When a Department store (Specialty store, upscale) like Le Bon Marché selects your brand, it means it has a lot of potential. Putting your products on the shelves is not the most difficult thing, selling is another challenge! Competition is fierce, meeting with the sophisticated customer (from all over the world) can help you sharpen your story telling and perfect your unique selling proposition, and get to know your brand better through their own eyes. French pharmacies are the next gen retailers for cosmetics. They bring a unique positioning as, pharmacists are legitimate and educated to sell skincare.” FB Founder of Mimétique
La Samaritaine is more to duty free and Chinese customers.
O my cream could be the alternative for clean beauty as The detox market and Credo in the Us founded in Los Angeles, and San Francisco, and pioneers of the movement.
Hospitality/ luxury and boutique hotels and spas:
The experience matters. Education too.
It’s one of the channels chosen by premium brands. Odile shares the choice made by the founders of Yina, premium positioning, traditional Chinese medicine ( topical skincare and now supplements).
“L’art de vivre a la française”, a natural elegance, la « French touch » has a lot of potential worldwide, a reminder by Odile.
And to conclude, A few Trends seen from the US 🇺🇸:
-Definitely the customized experience powered by GenAI.
-Supplements: not only brands are having an approach of holistic beauty, but retailers will allocate a space for it. FDA regulation is less strict than European one.
-There is a new generation of « longevity » companies backed by bioscience/ healthtech investors first, but close to beauty and wellness.
Thank you 🫶 for being part of the conversation. If not one of the 3900 founders and VCs receiving the quarterly free Newsletter,
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Following this casual conversation, Next meeting in #Paris? May!
Our topic with Iconic VCs and entrepreneurs on stage:
- Finding the right retailer
- Impact investors and sustainability in beauty
#community #founders #venturecapital #paris #consciousbeauty #funding #sciencebased
