For decades, Chapstick was the leader in lip balm. However, this last decade, Chapstick hasn’t been the go-to in lip balm anymore. Instead, more and more people are buying EOS. It has been popping up all over the place, including in Walgreens, Walmart,Target and by online retailer Racked.com. It has been made popular by celebrities, is advertised in fashion and beauty magazines, and has been talked about by beauty editors in Allure and Cosmo. Instead of coming in typical Chapstick-like tube container, it comes in pastel colored orbs. And it is available in unique flavors, like grapefruit.
EOS is an acronym for Evolution of Smooth, which is the name of the company. Very little was known about their business strategy until recently. They recently explained in an interview with Fast Company how they have come up with a $250 million company that is becoming one of the best selling lip balm companies in the United States. It is only second to Burt’s Bees.
At this time, EOS sells more than 1 million units of lip balm every week. And the future looks good for their company. It is projected that by the year 2020, they will see a steady increase to $2 billion. This is largely in part because of the high demand that exists for personal care items that contain organic and natural products.
EOS decided to do the interview with Fast Money because they are interested in helping consumers to know more about their business and values, according to Sanjiv Mehra, the Cofounder and Managing Partner of EOS.
Thinking outside the Tube
EOS had the goal of shaking up the beauty aisle in drugstores. They saw lip balm as one of the prime candidates for innovation since every single tube of lip balm is sold in the exact same way.
The first step was to do in-depth consumer research. They found that women who regularly used lip balm were tired of losing tubes in their purse. They were happy with the idea of pots of lip balm, but they didn’t like the idea of applying the product with their finger. They worked hard to come up with something that delivered moments of delight during a woman’s daily routine, yet wouldn’t become just a fad that would be quickly forgotten about.
The researchers at EOS lip balm hired a clay artist to mold different shapes and eventually came up with the shape that has become so well-known in drugstores, fashion magazines, and because of celebrities. Their end product engages all five senses. It has round packaging that feels good to the touch, it smells fantastic, the flavors are delicious, the colors are appealing, and even the clicking sound that it makes when it closes is desirable. And, of course, it easily fits into all women’s budget coming in at about three bucks per orb.
Making Big Plans
EOS faced a lot of challenges getting their product into the market. One of the biggest challenges they faced is that since the product was designed for female users, many male buyers in popular drugstores and chain stores simply didn’t understand the product. Luckily, they found a female buyer from Walgreens who loved the product and agreed to launch it. It was not long before the product was also on the shelves of Target and Walmart.
Another step EOS took was purchasing their own equipment instead of hiring a third party manufacturer. They came up with a complete production facility that is automated from the first step to the last. This allows them to meet the high demands of their big-name buyers.
EOS has come up with a genius marketing strategy, primarily marketing to millennials. They use social media and beauty bloggers to advertise their product.
It is obvious that all of the hard work that has been done by EOS has really paid off. In less than 10 years, they have become a household name and have outpaced Chapstick, Revo, and Blistex. On average, they sell more than 1 million EOS lip balms a week.
Facebook page: https://www.facebook.com/eos/