Micabella's branded cosmetics feature ground powders that are 100 percent pure mica, minerals known for their glittery appearance. But it's what the products don't contain that catches the eye of many shoppers: no oils, no chemicals, no dyes or preservatives. Products include 80 eye shadows, nine foundations, six blushes and six bronzers, and a number of skincare products, including a facial moisturizer, refreshing toner, cleansing milk, skin-repair serum and wrinkle-reduction eye gel. Of course, customary cosmetics accessories such as professional synthetic brushes and lightweight cases are also part of the Micabella brand family.
Proponents of mineral makeup—from beauty magazines to dermatologists—point out that its pure, natural ingredients are far gentler for sensitive skin than the often-harsh ingredients found in many makeup brands today. Wearers of the makeup tout its light-feeling, natural-looking and long-lasting qualities.
"We're proud to have the best mineral makeup on the market today," Frenkel says. "No one can match our quality and our focus on the customer. We're always working on improvements and new product launches. Yes, we're the industry leader, but we're still evolving and improving—every single day."
In just a few years the Micabella brand has grown far beyond its start-up roots. The company's manufacturing facility is in Los Angeles, but its wholesale accounts are worldwide, including retailers in Europe, Australia, South America, Korea and the Middle East.
Earlier this year, Micabella struck a deal with Canada's leading department store chain, The Bay, owned by Hudson's Bay Company, that will result in numerous "Micabella Exclusive at The Bay" locations inside The Bay stores throughout Canada the next five years. The first location is set to open in May inside The Bay's flagship store in Toronto, Canada's largest department store at one million square feet.
The Bay is connected by skyway to Toronto Eaton Centre, another retail powerhouse featuring almost 300 retailers and restaurants selling to a trade area of more than 3.7 million people. For obvious reasons, the Eaton Centre and The Bay flagship store are major tourist destinations.
Micabella's Mineral Magic
Eli Frenkel knew he was looking at a winner when he and his partners, Roni Paz and Jovany Mamo, spotted a fresh new mineral makeup line at a tradeshow a few years ago. At the time, the men already had a specialty retail business in California whose offerings included cosmetics and Dead Sea skincare products sold primarily to women, so the trio knew a great deal about how and why women shop—and even more about what prompts them to buy.
By speaking with their customers constantly, asking for feedback whenever possible, and keeping a trained eye on emerging trends, Frenkel and his partners knew there was significant pent-up demand for a fresh cosmetics line that would cater to women's need for natural ingredients that look and feel great on the skin. When they spotted the new mineral makeup line at the tradeshow, they knew it had the potential to be the next big thing in cosmetics.
Their next step was to test the market. They opened three carts in California shopping centers for six months, including the winter holidays. "We were so encouraged by the results that we decided to start our own mineral makeup line," Frenkel says. Micabella Cosmetics launched in 2004, with an eye toward offering start-up packages for independent specialty retailers.
From start-up to big sales
Just three years later, the line has been received so well that Micabella products are now sold through nearly 150 carts. The company also wholesales to a number of salons and boutiques in the US and Canada, plus numerous retailers overseas. (See sidebar, "Growing Worldwide," for more info on Micabella's expanding worldwide presence.)
Dozens of independent operators now run their own Micabella carts, and the company has more than a dozen company-owned carts in California and Georgia. Operating its own carts allows Micabella to continue testing new products, get consumer feedback, spot buying trends and stay firmly connected to the challenges specialty retailers face—and opportunities that emerge—on a day-to-day basis.
The products are a natural fit for specialty retailers, especially those who want to generate sales all year, Paz says. Although the winter holiday season does account for significant sales, makeup is not a seasonal category. Ninety percent of Micabella's retail locations are open year-round.
"Women don't need a holiday or an excuse to purchase and put on makeup, they do it every day," Frenkel says. "Christmas is just a bonus for our retailers." As might be expected, some of the company's specialty retail operators open additional carts for the holiday season to capture the most sales possible during the peak buying season.
The average cart or kiosk generates sales of $35,000 to $40,000 per month year-round, Paz says. But sometimes, sales significantly exceed the average. So far the single-day sales record is $14,000 at one of Micabella's company-owned locations during the holidays.
A to Z assistance
Because the company maintains its own retail locations, management has a frontline retail perspective, constantly considering the factors that matter most to cart operators. All of the line's products were created and packaged to be compact and lightweight, "so shipping costs are minimized, which helps specialty retailers maintain a healthy profit margin," Paz says. Small footprint products "also allow specialty retailers to maximize sales by stocking the full range of Micabella products, which can boost add-on sales significantly."The company's comprehensive start-up package for specialty retailers gives them the right product mix for cart sales. The package is so complete that "most retailers go with the standard package that includes all of our products, combining everything needed to open a cart," he says.
The start-up package includes about $3,500 of product, plus signage, fixtures, preset displays, product catalogs, and a professionally produced, four-minute DVD loop that gets the attention of shoppers and fully explains key product features and benefits to potential customers. All Micabella carts have consistent, appealing visuals, which Frenkel notes was part of the company's strategy to build brand recognition for long-term growth. Micabella operators get "all of the benefits of a franchise, without the franchise fees," he says.
In addition, Micabella will send a professional retail trainer to an operator's location for three days to cover a variety of setup and selling topics prior to opening day, for a small fee. "The trainer helps operators set up the cart from A to Z," Frenkel says. "This includes training the salespeople on how to sell the product, how to teach customers to apply the makeup, and how to explain the benefits of mineral makeup. Of course, the trainer teaches the sales team the most effective selling techniques to drive and close sales."
Again thanks in large part to its frontline retail experience, Micabella arms its operators with sales and promotion strategies already tested and retested at its own locations. But as any experienced retailer knows, selling techniques don't matter if the customer doesn't like your product in the first place. And that is where Micabella shines.
One product, many uses
A key selling point for Micabella makeup is its versatility. Eye shadow can be applied wet or dry and also can be used as an eyeliner, hair highlighter, blush, bronzer and nail polish (it's brushed onto nails with clear nail polish, which the company also sells). The company's lightweight foundation also can be used as a concealer, base or mineral veil. Blush can be used as eye shadow or lip color.
"There's not a woman in the world who doesn't appreciate—and search for—cosmetics that can do double-duty," Mamo says. "If they can find one product that does two jobs—or three—they'll gladly buy. Women are fed up with regular makeup. They're working, they have husbands and kids, and they don't have a lot of time in the morning to get ready. Our customers love the fact that Micabella cosmetics can be used in so many different ways."
Customers also rave about the fact that the makeup lasts more than just a few hours, Mamo adds. "If women put on the Micabella makeup in the morning, they still look good at five o'clock," he says. "The eye shadow doesn't crease and the foundation will not rub off."
Buyers also love the price points. Eye shadows retail for $15, while foundations cost about $50. Blushes sell for $45 and bronzers are $30.
Customers might like the prices, but specialty retailers love the markup. Frenkel says the average markup for the company's core products is up to 600 percent. Most items are packaged as a six-month supply, which keeps customers coming back again and again—year-round.
"Micabella products have the highest repeat-customer base of any makeup product sold on carts," Frenkel says. Sales are helped along significantly by "great word-of-mouth advertising"—the true test of a product's appeal.
Supporting specialty retailers
Just because women love Micabella's products, doesn't mean the company leaves a single sale to chance. Numerous programs are in place to drive repeat business to its cart locations. Operators collect customer information, which goes into a main database so consumers can be contacted with offers of discounts and information on new products roughly once a month.
"For instance, the customer may receive a coupon for 10 percent off if they purchase at the cart within a certain time period," Frenkel says. "We are very supportive of our cart retailers and work every day to build their business."
In part, Micabella's emphasis on retailer support is a natural outgrowth of the company's own tight-knit management and staff. "We are like a family and like any family we strive to help each other in every way to grow and grow," explains Vice President Yifat Liba-Shemer. "That approach shows in everything we do, from supporting our retailers to providing excellent customer service for our customers to our own growth as a company. If you want the best to come out of your company, you have to put the best into it."
Sometimes that means putting the interests of its specialty retailers first. Although the company retails its products online, prices are 15 to 20 percent higher there, a strategy that drives sales to cart operators, Paz explains. Though Micabella is sold in about 20 beauty salons and recently announced a new retail initiative with The Bay, Canada's biggest department store chain (see sidebar, "Growing Worldwide"), the lowest prices are consistently offered at the cart locations.
The company also is constantly developing new ways to market its products. Micabella's recent investment in its DVD was coupled with a complete overhaul of its website. The company is planning to launch a TV infomercial campaign this summer and is considering a consumer magazine ad campaign in 2008.
Micabella's promotional and branding efforts, coupled with its multi-channel retail strategy that emphasizes sales at carts, will generate sales well into the future for its specialty retailers, Frenkel says.
"The more we grow as a company and a brand, the more our retailers benefit," he says. "Micabella Cosmetics might be a relatively new company at only four years old, but our products are already well-known and well-regarded throughout the industry. That's a testament not only to the superiority of our products, but the hard work and dedication of the team here at our headquarters and our specialty retailers spread throughout the US and Canada. With all of us working together to develop new products and new ways to meet and exceed our customers' expectations, there's a bright future ahead for Micabella."
Comments
Post new comment