🟣 Issue No. 15: How Function of Beauty Mastered Hyper Personalization at Scale

Hey, friends! Curious how Function of Beauty transformed hair care and scaled to over $100M in revenue?

They built a brand focused on customized beauty, using data-driven quizzes to create tailored hair care formulas for each customer. The secret to their rapid growth? Smart influencer partnerships, a strong eCommerce strategy, and tapping into the demand for personalized, clean beauty.

Plus, did you know they opened a flagship store to let customers experience their personalization magic in real life? It’s all about blending tech innovation with a personal touch.

Keep reading…

On the Pod 🎧

Lastest episodes:

• Turning Operations into a Profit Center → Kunle Campbell
  

• How to Win this Q4 → Kunle Campbell

• How to Maximize Your eCommerce Marketing Efficiency with the PROFIT Framework → Kunle Campbell

• S9 EP54: Product Innovation Deep Dive: How to Develop a Best-Selling SKU → Kunle Campbell

• S9 EP53: The New Playbook for Scaling Health & Wellness eCommerce Brands in 2024 → Kunle Campbell

• S9 E52: From $10M → $20M: How Tiege Hanley Doubled Revenue While Staying Profitable → Kelley Thornton, CEO

• S9:E51: Ex-PepsiCo Strategist Unveils Brand Positioning Frameworks that Transform DTC Brands → Kathy Guzman

$100M+ BRAND STORIES

Function of Beauty: Revolutionizing Hair Care with Customization

Today, we dive into Function of Beauty, the brand that's making waves by completely transforming how people think about hair care. By offering quiz-driven hyper-personalized beauty products, tailored specifically to the needs of each customer, Function of Beauty has grown into a $150 million leader in the beauty space. With its unique approach, the company has set a new standard for the industry.

A Vision Rooted in Customization

Launched in 2015, Function of Beauty was the brainchild of MIT graduate Zahir Dossa, chemical engineer Hien Nguyen, and expert product developer Joshua Maciejewski. Together, they had one clear goal: to create hair care products as unique as the individual using them. Dossa's inspiration stemmed from his frustration with the one-size-fits-all approach in traditional beauty products. The solution? A fully customizable system where users could take a quiz and receive formulas tailored to their specific hair type, goals, and even preferred scent.

Speaking at the Disrupt NY 2017 event, Dossa noted, "We realized that beauty is one of the most bloated value chains you can imagine, so we wanted to create a solution by offering something truly unique for each individual." This insight became the foundation for a fully customizable product line that tailors shampoo, conditioner, and other care products to each customer’s unique needs .

eCommerce-Driven Growth and Strategy

From the outset, eCommerce was the backbone of Function of Beauty's success. The brand capitalized on direct-to-consumer (DTC) channels, which allowed them to build close relationships with customers and gather data to refine their formulations continually. Dossa explained the importance of eCommerce, stating, "We saw an opportunity to eliminate the middleman, go direct-to-consumer, and provide a much better value proposition for customers"* .

The DTC strategy was bolstered by targeted social media advertising on platforms like Instagram and Facebook. As the brand grew, Amazon became a significant distribution channel. This dual approach—leveraging the intimacy of their DTC platform while harnessing Amazon’s vast reach—enabled Function of Beauty to scale rapidly. Dossa emphasized, "Amazon gives us visibility, but our DTC platform is where we build real customer relationships and offer a deeper brand experience" .

Scaling and Market Opportunity (TAM)

The personalized beauty market is projected to reach over $56 billion by 2025, and Function of Beauty has tapped into this growing trend by leading the charge in hyper-customization . The company’s ability to create individualized products at scale has enabled it to carve out a large share of this market, with their technology-driven production process ensuring consistent, high-quality formulations.

The 2020 $150 million investment from private equity firm L Catterton further fueled the brand’s expansion, allowing it to venture into new categories like skincare and body care, and cement its leadership in personalized beauty .

Influencer Marketing and Authentic Partnerships

Function of Beauty's marketing strategy has long relied on influencer partnerships, building relationships that go beyond simple product placements to create meaningful brand alignment and community engagement.

Niche Influencer Collaborations:
Function of Beauty specifically targets influencers within the beauty and haircare niches who can authentically connect with their audience. These collaborations help them reach consumers genuinely interested in personalized haircare solutions. Influencers such as Jackie Aina, a renowned beauty YouTuber, have partnered with the brand to highlight the customization process and share their personal experiences with tailored products.

Authenticity Over Volume:
Rather than focusing on mass partnerships, Function of Beauty aims to work with influencers who are aligned with their core values, emphasizing long-term relationships over short-term deals. According to reports, the brand seeks influencers who are genuinely excited about the personalization of their products, as this ensures a more authentic message that resonates with followers. These partnerships help create trust and drive engagement, particularly when influencers share their own unique formulations and results.

User-Generated Content and Social Media Campaigns:
Function of Beauty amplifies the power of its influencer marketing by encouraging user-generated content. Many influencers share personalized results on social media, tagging the brand and using hashtags like #MyFunctionofBeauty. The company has also run social media campaigns and contests, encouraging customers to showcase their before-and-after experiences, which provides an additional layer of authenticity and builds a community of advocates around the brand.

Major Milestones in Function of Beauty's Journey

• 2015: Function of Beauty is founded with a mission to deliver hyper-personalized hair care products.

• 2016: The brand launches its flagship DTC eCommerce platform, enabling direct connections with customers.

• 2020: L Catterton invests $150 million to expand the product line into skincare and body care.

• 2021: Function of Beauty makes its retail debut through a partnership with Target, marking a major shift from its DTC-only model .

Conclusion: Applying Function of Beauty's Success to Your Own Brand

For founders and operators in the wellness and beauty space, Function of Beauty’s growth story offers several key takeaways:

1. Market Differentiation Through Product Innovation:

   • Function of Beauty carved out a unique space by offering personalized hair care solutions. Brands can stand out by providing innovative products that address specific customer needs, even if they don’t follow a personalization model.
     

2. Authentic Influencer Partnerships:

   • Build partnerships with influencers who genuinely align with your brand. Function of Beauty succeeded by collaborating with influencers who authentically connected with their audience, boosting credibility and reach.
     

3. Engage Customers on Social Media:

   • Encourage customers to share experiences and run campaigns like giveaways to boost engagement. User-generated content enhances brand authenticity and builds trust with new audiences.
     

4. Leverage Affiliate Marketing:

   • Adopt a commission-based affiliate program to motivate influencers and other partners to promote your products more effectively, creating a win-win situation for both the brand and its advocates.
     

5. Focus on Customer Experience:

   • Exceptional customer service and transparent communication are key. Regularly seek feedback and make product improvements to ensure you’re meeting customer needs.
     

6. Sustainability and Ethical Practices:

   • Sustainability is not just a buzzword. Function of Beauty embraced eco-friendly, cruelty-free products. Brands that prioritize responsible practices will attract more conscious consumers.

I hope this case study inspires you to apply some of these strategies to your own brand's growth journey!

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HEALTH IS WEALTH

The Benefits of Mouth Taping: Small Habit, Big Impact

Mouth taping can be a simple yet powerful tool to improve sleep, boost focus, and enhance overall respiratory health—especially for those looking to train themselves for nose breathing.

Using mouth tape during sleep encourages nasal breathing, which has been shown to promote better oxygen absorption, deeper rest, and improved overall health. A study published in the Journal of Clinical Sleep Medicine found that nasal breathing, as encouraged by mouth taping, can significantly reduce sleep apnea symptoms and promote a more restful sleep cycle. This leads to an increase in REM sleep, which is critical for cognitive function and mood stabilization.

Training your body to breathe through the nose not only improves sleep but can also enhance focus by increasing oxygen efficiency. Research published in Frontiers in Physiology demonstrates that nasal breathing filters and humidifies air more effectively than mouth breathing, leading to improved brain function and energy levels throughout the day. By breathing nasally, the body can also maintain a higher level of oxygen saturation, which is crucial for sustained mental and physical performance.

Mouth taping is particularly beneficial for individuals who struggle with chronic mouth breathing, dry mouth, or snoring. According to a review in Sleep Medicine Reviews, the consistent practice of nasal breathing during sleep can alleviate these issues over time, offering long-term respiratory benefits. Additionally, research published in the Journal of Applied Physiology highlights how nose breathing can positively influence cognitive performance, helping people stay sharper and more focused throughout the day.

Takeaway: Mouth taping is a small but mighty practice that promotes better sleep, improves focus, and enhances respiratory health. Personally, by combining mouth taping with opening my windows for fresh air, my restorative sleep quality has improved by 28% in the last month, according to my Whoop band. Add it to your nightly routine to unlock the benefits of nasal breathing.