beauty disruption - the direct to consumer revolution

BEAUTY DISRUPTIONJune 29th

OCTOLY Quick reminder

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Our solution: the OCTOLY Free Store

#1 Marketplace for product reviews

Hundreds of brands - willing to give away free products to boost their social media

presence

Thousands of influencers - eager to test new products

and speak with brands

Disruption

The problem is HERAnd the millions of other passionate people like her who post videos & photos

Major Brands have a big problem…

Brands have lost control of their messaging due to a highly fragmented audience

Creators Networks Audience

Online retailers

Direct to consumers

Top Tier creators are hard to reach, long and expensive to activate.

41% of views

Top

25 YouTubers

Mid / Long Tail

59% of views

700+ YouTubers

Octoly© Beauty FR

Mid & Long Tail creators are a great opportunity for brands to reach creators and audience at scale

MicroInfluencing is the Future of brands on Social Media

Influencers are More Relevant than Brand Pages

As organic social reach is increasingly limited, social influencers offer a more authentic voice, leading to more engaged audiences.

Influence has quickly changed hands

Millennials would try a product or a brand suggested by:

13 y.o. 14-17 y.o. 18-24 y.o.

62%63%62%

49%47%43%

TV / Movie star YouTuber

Influencers Drive Sales

…of beauty consumers indicate that YouTube influenced their purchasing decisions by helping them to visualize how the products would fit their lifestyle

Pure players give incentives to creator’s audiences through promotional codes

66%

Source YouTube

Influencer Marketing Emerges as Key Model

The Direct to Consumer revolution in a social media environment

Direct to Consumer revolution is reaching all industries

5 Years old

$200M Revenues

www.bloomberg.com

2 Years old

$75M Revenues

http://fortune.com/

2 Years old

$60M Revenues

http://www.inc.com/

The Rise of Indie Makeup Brands

7 Years old

$40M Revenues

0 Marketing spent

150 Countries

https://en.wikipedia.org/wiki/Sigma_Beauty

A ROI Driven Company focusing on YouTube

13,000 Affiliates

M.A.C Cosmetics Vs. Sigma Beauty on YouTube

Beauty Brands Earned Media Ranking on YouTube

US FR

Anastasia Beverly Hills

3 Years old

$20M Revenues

149 Countries

27s to sell 1 brush

An Instagram Brand

7 Years old

$15M Revenues

A brand made by a YouTuber

“I sell directly to customers. With other brands, they are putting

their stuff in Sephora, and Sephora takes their cut, so they have

to mark up their prices to cover overhead and staffing, and all

that. But because we sell online—directly from the warehouse to

the customer—we can kind of cut out that middle portion and

save a lot of money in costs.”

How are you able to provide the same quality as high-end makeup brands and keep prices low?

Marlena Stell, YouTuber

“NYX is a dynamic company that has done a tremendous job

of harnessing the power of social media, digital marketing

and multi-channel distribution”

Frédéric Rozé, President and CEO of L’Oréal USA

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Retailers are also disrupted

5 Years old

$150M Revenues

fortune.com

5 Years old

$50M Raised

forbes.com

6 Years old

$125M Revenues

Key Lessons from Indie Makeup Brands

#AdaptorDie to #SocialCommerceHarnessing the power of Influencers

INDIE BRANDS MAGIC FORMULA

Data & insights from Influencers

WORD of mouth by giving FREE products

Online Tupperware sales by giving incentive

to creators’ audience

+ +

CREATE MARKET NO MEDIA

SELLING WORLDWIDE

How to play the #TupperwareMillennials phenomenon?Software, organisation, mindset & scale

SOFTWARE PEOPLE

Customer Excellence

Products Creators

CREATIVE ASSETS + AUDIENCE CONNECT, EDUCATE & DRIVE SALES by creating a unique relationship with influencers

E-COMMERCE x COUNTRIES

Octoly Future

Expansion

!Instagram Spain launch

TrueReview: Advertising made simple

Beta for current customers opening on:

JULY 1st

Leverage earned media to easily create at scale video ads for social networks.

Licence content from creatorsA mashup of best moments of influencers who love your products

Click Here to Watch Video

Thanks

Thomas Owadenko CEO and co-founder @Octoly

thomas@octoly.com