Insider Info with Annie Kreighbaum and Nick Axelrod-Welk



Our guest today are anti creek bombs. And nick axelrod welk anne neck i love. I love a duo on the podcast. Welcome thing so excited to be here so let me let me give a little. A little highlight with your bio. Anne is a beauty journalist turned exac and former brand lead for glossy and nick is a former reporter for l. and wwe which is women's wear daily correct. Yes it is there. Were these things called. Newspapers that we used to read would get delivered every day. It was the fashion newspaper. Like the most. I one of the most iconic fashion newspapers i would say and you are also the co founder of the personal brand. Excuse me personal care brand. Necessar- said that right. It's been awhile since i've taken french. And you co founded the iconic beauty site into the gloss and together. They co host eyewitness beauty which is a beauty and pop culture. Podcast available wherever you get your podcast. You guys to focus on the business side of beauty. And i'm curious with this question. I'm not even i'm wondering if it's even possible for there to be trends in beauty in twenty twenty one when when the beauty is feels like the world has kind of just been uprooted or or changed by this pandemic but what are some trends that you are are seeing that you're seeing and that you like for yourself well on the kind of inside baseball cy. But sure it's not news to anyone like you describe yourself as like more of like a novice like outsiders which i think you're an expert than you give credit for it. But but for since the since they started tracking this stuff color cosmetics which make up products. I don't need to explain to anybody. Listening with that. Means has been like the category that's been consistently the number one revenue driver for any like big brand just for the industry in general like like the biggest challenge of the pie. I don't know what color cosmetics is so that's basically when you walk into a sephora and you're you're the first thing you see is makeup skin care is in the back of the store and the fragrances at the back of the wall like. That's all intentional. In order of sales. Yeah oh lord was at a certain point. Yeah learning okay okay. yeah so. The industry is is sliced up. Land like hair care. Skin care whatever color. Cosmetics has been like since the dawn of time like the number one biggest category billions of billions of dollars. Will just last year skin care has taken over which hilly coming from my glossy and like kind of seeing that wave happen. I think it really started with k beauty coming into the us people on the internet. We're getting much more educated around like ingredients and different. There's going team. I think like the trend has been going on for quite some time. But just last year. I think with the pandemic And people being at home and having to diy more skin care. And i think too like people understanding like actually. I don't need to see a dermatologist. For every little thing. I can exhausted. Leasings myself Skin-care has overtaken. So i think that that's gonna continue for sure in like the entrance of all these mid to lower mid range brands in terms of price point like the ordinary or the inky list or natori like things that could all of a sudden by acid For ten dollars versus what happened probably five years ago which is either the hydraulic. Acid is from lemaire and it's two hundred and fifty dollars or they're probably wasn't even one you could buy in the drug store so i think that they're just exists now category of product. So that you know what like with makeup. You could buy ten dollar lipstick to get the same idea as a forty dollar up stick Same relative color now with skin care. You can sort of do the same thing. Okay so many so many questions. So i wanna i ask you because you mentioned this sensation of going into sephora and everything is so deeply intentional and i know it's the same with marketing and packaging and in thinking about like price points getting lower. Our is the quality of products the same so much of beauty just like markups and exclusivity and making something sound fancy and getting it in the hands of like victoria beckham or is there a true difference in quality so one anecdote i have. Is that one time someone told me in this completely rocked my world. That lemaire is made in long island and and that sort of says it all like you know. It's a cream with some like plankton. In it or you know no seaweed. I guess and it's made long island and they call it. Lum creme de la mayor and it's three hundred dollars Is that does that mean that. There's two hundred dollars worth of ingredients in there. No one hundred fifty. No one hundred fifty eight okay. So for context like the markup degree product but for a healthy cosmetics company business in general the markup on cosmetics from the goop and the packaging is eighty percent margins. So a two dollar what it cost you two dollars to make gold charge ten dollars for and that's like standard across the industry and you can't really knock a cosmetics company for doing that because they are so so cheap to make and to have investors to be able to pay the bills to be able to make this something that can really support a team and you know whatever and like grow a business. That's just industry standard so like. I don't think anybody's pulling the wool. Over consumers is this markup rate on the fashion. It's like some pence fifty percent or less of a markup. So that's i kind of a comparison. I forgot like what other interesting. I was about to say it. But i'm sure nick has a million. Well well yeah it's not. It's not an evil thing. The markup i think there's so many more there's so many more costs testing everything saying what's the difference between something that's like super expensive versus something. That's like a little bit more accessible. I do think that there's a huge difference. I mean i think what the ordinary did is like very interesting. And i still think they make like a lot of great products in general but you kinda of see like the texture of putting on like the heireann sierra and from the ordinary that costs you six dollars versus like one that has more ingredients in it from like a. I don't even know if they have one and playing with taught harper. Like it's this absorbs into skin better doesn't leave sticky feeling. Where's better under makeup. Like might smell nicer. These are all things that you have to consider. Its except for some people. It's worth paying for for others. It's not worth it and they'd rather just by the seven dollar one so okay so this leads me to my next question. Which is i'm kind of obsessed with this idea of dupes especially when it comes to here and makeup like and candles but not all. Dupes are really dupes. I kind of get into this. Like spiral do you believe. Dupes are real as possible to have a troop in skin care or makeup products. I think it's rare. There's certain things that you can charge more money. For the candle you can afford like a fragrance concentrations get a more powerful fragrance certain synthetics that are really expensive like amd brett Which is a mosque. like an animal derived. it was an animal derived. Musk now it's all Made in the lab But that is like a really expensive thing to create. So that's why a lot of like less expensive candles expensive fragrances. Don't have that smell

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