US and beyond for e.l.f. following investment
Company CEO Joey Shamah told CosmeticsDesign.com USA that the major reason for the investment is to continue to expand e.l.f.’s internet and retail business, while fortifying growth outside of the US.
“The TSG investment should help e.l.f. cosmetics further grow its mass market beauty business via the internet, in more brick and mortar stores nationwide and also develop further international distribution,” he said.
Maximizing online presence
Founded in 2004, the New York City-based firm originally traded online with its cosmetics at $1, $3 and $5 price points. Beyond the products themselves, e.l.f. has engaged its consumers through its online community and various social networking sites where consumers can view educational web videos on makeup techniques and styles.
Whilst it continues to grow its online presence, Shamah explained that it would also push its retail store presence as both are important to the growth and development of the brand.
“Our online presence allows us to tap into our consumer’s needs and feedback in a direct manner which is integral to product development. Our retail partnerships allow us to be a global leader in the rapidly growing affordable cosmetic market.”
e.l.f. is deepening its retail presence with distribution at retailers such as Target and Dollar General and is broadening its international business beyond the 17 countries in which it is currently available.
TSG’s consumer insights
Whilst the financial details remain undisclosed, Shamah did explain that TSG’s investment means e.l.f. now has the ability to tap into TSG’s consumer insights and to create more products based on TSG’s knowledge of what consumers are looking for at any given time.
The equity firm, which is focused exclusively on the branded consumer sector, announced it was enthusiastic about growing e.l.f.’s share in the affordable cosmetics market.
“We are looking forward to working with Joey and the entire e.l.f. team to expand the scope and scale of the company, both domestically and abroad, in the years to come,” said John Kenney, managing director.
Shamah explained TSG’s involvement will allow e.l.f. to gain a deeper penetration into the US markets and play an integral role in e.l.f.’s international expansion.
“We hope to see further growth of business in drugstore chains, value retailers and mass merchants. We would also like to build e.l.f.’s presence at leading apparel retailers willing to partake in partnerships and transactions,” he added.
