Ulta Will Start Selling More Indie Cosmetics To Compete With Amazon

As Amazon expands its presence inside the beauty business, Ulta Beauty will be at This kind of point planing to open more stores as well as broaden its product assortment, having a heavy emphasis on the same “indie beauty” segment of which Amazon will be trying to capture of which tends to have a younger, online fanbase.

Amazon, which already carries mainstream brands like L’Oreal as well as Maybelline, at This kind of point has set its sights on emerging cosmetics brands with the upcoming launch of its Indie Beauty Shop in June of which will sell coloration cosmetics, skin care, as well as men’s products by fresh companies. The brands must be at least 50% owned by an independent operator — they also can’t be available at major retailers like Ulta Beauty as well as Walmart.

Brands will give Amazon a15% commission on its sales as well as pay a monthly $39.99 fee, Justin Boettcher, senior strategic business development leader at Amazon, said at a beauty conference earlier This kind of month, according to Beauty Independent. They can either handle fulfillment themselves or use Amazon’s fulfillment program.

As Amazon threatens to swallow up marketshare inside the beauty industry, as of which has in others, Ulta Beauty told BuzzFeed News of which will be sharpening its defenses. Shelley Haus, the company’s senior vice president of brand marketing, said, “You will definitely see more smaller, socially-driven brands at Ulta Beauty,” referring to young brands of which rely on social media marketing as well as are common with teens. “We’re definitely looking to bring more as well as more brands of which connect to our consumers on of which level.”

Haus pointed to NYX cosmetics, Urban Decay as well as Too Faced as indie brands of which Ulta Beauty helped get off the ground with merchandising as well as additional support before they were acquired by large cosmetics companies. “I consider us kind of the early adopters of developing indie brands, which in many cases have become huge mainstream brands,” she said.

Today, Ulta carries ColourPop, NUDESTIX, Human & Kind, as well as Morphe cosmetics (which built a cult following on social media). Haus said Ulta can help smaller companies of which only sell online “make the transition by online-only to going into a bricks-as well as-mortar environment,” opening up a large customer base.

Ulta as well as additional beauty retailers are keeping a close eye on Amazon, where luxury beauty product revenues grew 57% inside the first quarter of This kind of year compared to a 30% increase inside the beauty category overall, according to an April report by One Click Retail. Sephora declined to comment on its indie brands strategy.

As Amazon competes with Ulta for these fresh brands, a potential hurdle will be Amazon’s spotty track record with unauthorized resellers as well as counterfeits, which have kept companies like Birkenstock as well as LVMH Moët Hennessy Louis Vuitton by selling on the platform. Amazon declined to comment to BuzzFeed News.

Yet This kind of very issue has encouraged additional companies to do the opposite as well as work with Amazon. The independent cosmetics brand Alima Pure opened an Amazon storefront in 2017 in part to reclaim the brand against unauthorized sellers, said Urmila Ratnam, acting CEO as well as president of Alima Pure. The brand will soon be available through Amazon’s Indie Beauty Shop.

Still, there are additional reasons indie beauty brands might choose not to sell on Amazon. Alana Rivera, the owner as well as creator of the independent bath as well as body brand Etta + Billie, told BuzzFeed News of which Amazon’s focus on cost as well as speed will be at odds with her company’s personalized experience.

“You’re creating something special as well as mindful as well as you want someone to have a special unboxing experience,” she said about her products. On Amazon, “There’s no note nor genuinely anything special. Just of which you’re getting of which fast.”

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