FaB San Francisco. Let’s talk about data and new retail.
FAB February 19th Meetup.
Hosted by San Francisco FAB Chapter leaders Anastasia Bezrukova from Minori Beauty, Chloe Takahashi founder of Cosme Hunt and Elsa Jungman, founder of HelloBiome. (Thank you for the partnership Nao Ishizuki @ Kose Japan).
FaB friends, founders and VCs, let’s share the takeaaway as we promised! A content curated by Anastasia, with quotes from the speakers.
We had the pleasure of hosting an insightful discussion with Emily Wolf from Faire, an online wholesale marketplace (backed by Forerunner Ventures, past guest speakers in SF!) that is transforming the way brands and retailers connect. Here are some key highlights and takeaways from our conversation:
Retail Startups:
“Although VC money in retail startups is unlikely to increase drastically in 2024, the importance of companies maintaining profitability and surpassing the breakeven point remains paramount. Given the ongoing trend where marketing channels are not likely to see a significant increase, the optimization of existing channels remains key. Ultimately, I believe that daily diligent efforts are crucial.” Chloé
Faire’s Growth and Impact:
Founded in 2017, Faire has grown to host 66,000 active brands and 410,000 retailers in the US, with beauty and wellness brands making up a significant portion of this community. The platform has seen substantial growth in the beauty and wellness category, with sales already up $13 million compared to last year.
Evolving Landscape for Beauty and Wellness Brands:
Brands are diversifying their retail presence beyond big box retailers like Sephora and Ulta, aiming to reach small boutiques and specialized stores.
This shift is driven by the normalization of sales post-boom years and increased competition, especially from indie brands that emerged during the pandemic.
Anastasia Bezrukova, founder of Minori, has been on Faire for almost 2 years and shares: ‘’It’s been an instrumental part of our early stage growth. In addition to being sold at a few majors, such as The Detox Market, Free People and Saks, Faire has opened up an easy way for us to work with independent specialty stores. Since joining Faire, we have opened over 150 new accounts, and see very strong reorder rates’’.
Operational Benefits for Brands:
Faire offers CRM, email marketing, and net 60 payment terms for retailers, ensuring guaranteed payments for brands without the hassle of chasing invoices. Emily Wolf shares: ‘’The major thing that has set Faire apart from other marketplaces is their ability to offer CRM, email marketing, and net 60 payment terms that are offered to retailers, which I know a lot of brands cannot otherwise get themselves. And then Faire also guarantees payment for the brands so you aren’t out there chasing these retailers having to track them down and get them to pay their bills.’’
Trends and Insights in Beauty and Wellness:
- The top retailer categories buying beauty and wellness products are gift shops, spas and salons, and clothing boutiques.
- Lip products, fragrance oils, and travel-sized sets are currently trending, with consumer demand often mirrored by small boutique retailers.
Focus on specialty retailers
‘’So we right now are still very much focused small business, but we do have some major partners. Fair has partnered with museum organizations, many of which are shopping exclusively on Faire.’’ — Emily Wolf
‘’Although the majority of our accounts on Faire are specialty stores, we are seeing more opened from traditional retailers to join and order through the platform. We have recently launched at Kuhl-Linscomb, one of the most prestigious department stores in Houston, Texas, and they have agreed to place their purchase orders through Faire. I see more and more large accounts adopt Faire in the long term to benefit from the net 60 payment terms.’’ — Anastasia Bezrukova.
Faire’s Selective Curation:
- Faire has become more stringent in its review process to ensure that only legitimate brands are on the platform, maintaining a high-quality experience for both retailers and brands.
Faire’s global expansion
‘’ Faire was born and raised in San Francisco and then has since expanded to Canada, the UK and Australia.’’ — Emily Wolf
We are excited to see how Faire continues to shape the future of wholesale and retail in the beauty and wellness sector. For more information and to explore the platform, visit Faire’s website.
Other topics and the SF conversation: Science-based companies, and data!
“In these challenging times, where consumer brands struggle to gain distribution traction, I am convinced of the untapped potential that leveraging scientific data holds for driving innovation and creating a distinct offering.
By integrating this data early on, brands are empowered to deliver unique insights and solutions that fuel innovation and market differentiation.
The critical role of data extends beyond merely understanding consumer preferences; it redefines how brands develop and market their products. There’s a transformative impact in blending scientific rigor with market insights, supporting the innovation agendas of consumer brands.” Elsa Jungman PhD
Elsa’s Bio:
Dr. Elsa Jungman has made notable contributions to skin health and microbiome research. Holding a Ph.D. in skin barrier function, she has worked for companies like L’Oreal and AOBiome. Her realization of the widespread issue of sensitive skin among women inspired her to develop microbiome-focused skincare solutions and start her company.
In late 2020, she launched her namesake pioneering microbiome-friendly skincare line, followed by a unique direct-to-consumer microbiome test kit in retail outlets. By 2022, Dr. Jungman introduced HelloBiome, a B2B AI platform utilizing microbiome data for personal care innovation, clinical research and personalization. She was awarded the French-American Entrepreneurship Award and is the editor of the fifth edition of the Handbook of Cosmetic Science and Technology.
Anastasia’s Bio:
Anastasia Bezrukova is the founder of Minori, a San Francisco based makeup brand, known for being ‘’Makeup for people who don’t wear makeup’’. Anastasia launched Minori after building her experience in the industry as a beauty buyer for Canadian retailers, where she worked closely with the Éstee Lauder and L’Oréal group, followed by 3 years at IPSY, the world’s largest subscription box company. As IPSY’s head of merchandise personalization, she had the privilege of curating products for 3 million monthly subscribers and personally trying over 4,000 beauty products. Her greatest takeaway? Most of us gravitate towards a natural makeup look and crave simplicity in our makeup routines. Nevertheless, the choice overload of products and shades makes shopping for beauty overwhelming, even for a beauty expert like her. This inspired her to launch Minori — a makeup brand for people who don’t wear makeup and want to look extremely natural when they do!
Chloe’s Bio:
Chloe Takahashi is the founder of Cosme Hunt, a San Francisco-based J-beauty marketplace connecting Japanese beauty brands and US consumers. She supports over 100 Japanese beauty brands with their go-to-market strategy and carries over 300 Japanese beauty products on Cosme Hunt. One of her portfolios has grown a $20M ARR haircare D2C company from $0 in the US market. She often serves speeches at beauty conferences and media and has become a pioneer of J-beauty to provide more options to Asian skin types.
After her mentoring of over 1,000 founders and angel investing, she joined the venture capital world to keep supporting founders and corporate innovation. She is recently accepted by 2024 All Raise VC Partner Cohorts, which arms female founders and funders with access, guidance, and support to exponentially accelerate their success and propel the entire industry forward.
Emily Wolf’s bio:
Emily Wolf is a brand manager at Faire Wholesale specializing in helping Beauty and Wellness brands succeed on the marketplace. She has been working in the Beauty industry for nearly 10 years. Emily started her career on the fragrance buying team at Sephora where she helped launch brands like Jo Malone and Maison Louis Marie. She has also worked in packaging and production for brands like ILIA, Kosas, and Benefit. Through all her experience in the industry, her greatest passion has been helping independent brands grow which is what brought her to Faire.
