Key Takeaways
- Wonderskin’s peel-off lip stain will debut at 350 Sephora locations on Sept. 26, driven by its popularity on TikTok.
- The brand expects to generate $100 million to $125 million in revenues by 2025, with substantial growth already seen in sales.
- Wonderskin focuses on paid marketing for sustained growth, offsetting the volatility seen in social media trends.
Wonderskin Partners with Sephora for Exciting Launch
Wonderskin, a London-based beauty brand renowned for its popular peel-off lip stain, is set to launch at Sephora on September 26. This move comes as part of Sephora’s strategy to feature trending products with new “Hot on Social” endcap displays in 350 stores. The quick approval process from Sephora, accomplished in under three months, highlights the brand’s strong consumer interest, as noted by Wonderskin CEO Michael Malinsky.
Wonderskin’s entrance into Sephora follows a successful $50 million Series A funding round earlier this year, allowing the brand to bolster its growth strategy focused on expanding into major retail outlets. Malinsky emphasized the importance of customers experiencing the products firsthand, stating, “They want to touch and feel it” before purchasing.
Prior to collaborating with Sephora, Wonderskin had already made significant strides in retail, with over 3,000 distribution points globally, including stores like Selfridges and Nordstrom. The brand also holds the top spot in Amazon’s lip stain category. Despite its brick-and-mortar presence, Wonderskin maintains a digital-first approach, with wholesale accounting for less than 15% of expected revenue by 2025.
The brand’s flagship product, the $22 Wonder Blading All-Day Lip Stain, exemplifies its success. Estimates from BeautyMatter suggest Wonderskin may achieve revenues between $100 million to $125 million by 2025, positioning itself for continued growth following a staggering sales increase of 300% in both 2023 and 2024. Malinsky indicated the brand is profitable, boasting an EBITDA margin of around 10%.
As Sephora capitalizes on social media trends, it faces challenges inherent in the rapidly shifting market. Brands like Drunk Elephant saw significant fluctuations in sales during viral moments on platforms like TikTok, leading to concerns for retailers. However, Malinsky believes Wonderskin’s sales strategy mitigates this risk; the brand relies more on paid marketing rather than solely on organic social media buzz.
With a robust marketing budget of about $5 million per month, a considerable portion directed towards influencer partnerships, Wonderskin maintains a stable revenue stream that is less susceptible to the whims of online virality. The success of its presence on TikTok, including a 70% increase in sales via TikTok Shop, reflects the effectiveness of its paid marketing strategy.
To ensure successful integration at Sephora, the brand is embarking on a comprehensive “operation sell-through” initiative, which involves a coordinated marketing effort combining paid and organic strategies. Wonderskin is also working with Breakthru Beauty to facilitate its launch and plans to establish an in-house sales team to educate both staff and customers about the product lineup, mirroring tactics used in Europe.
Wonderskin aims to demonstrate its sales potential at Sephora, aspiring to shift from “Hot on Social” fixtures to prominent brand displays across a broader range of stores. Competing brands, such as Sacheu Beauty, are also expanding their retail presence, highlighting the competitive landscape.
Beyond lip stains, Wonderskin plans to diversify its offerings, introducing a new foundation next month, designed to align with its focus on long-lasting beauty products with high-performance ingredients. As it continues to grow, the brand’s commitment to maintaining a robust digital-first strategy alongside expanding retail distribution remains a cornerstone of its vision.
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