Beauty

[Pipsqueak]

"Eve Pearl is a Manhattan makeup studio, boutique and e-commerce business with 10 employees that sells cosmetics containing skin-care nutrients. The products are developed by the company’s namesake and founder, a 46-year-old Emmy-winning TV makeup artist. She created her first foundation and concealer products seven years ago while working for Barbara Walters, Meredith Vieira, and the rest of the hosts on “The View.”

The article goes on to say that by 2011, 90% of revenue came from online sales, however when business in the boutique began to slow, she needed to find other avenues for growth.

Very interesting read because of what is brought up here on the beauty boards all the time. When a high-end product is pitched on a home-shopping channel the risks vendors take to not damage their name. She offers a different "step-down" product configuration of her line as to not jeopardize her brand or pricing she can get from online and boutique sales.

Anyway, she goes onto say it is consignment-based, she pays shipping and can be fined if late, and worse yet is getting back what you sell because of the 100% guarantee return policy the shopping channels offer. On top of all that they also pressure their suppliers, i.e. Wal-Mart style, into reducing prices. The upside, however, is if she sells a high volume it affords her ability to lower costs by placing larger orders with manufacturers and suppliers.

This will probably be 'p * o * o * f * e * d' but thought the article was a very interesting read as to what goes on behind the scenes at these shopping channels. There have been lengthy discussions here about what has happened to the quality of certain beauty brands sold here on the Q (ex. philosophy, Tova, etc.) and if the quality of those brands are different elsewhere. Lower costs, could mean lower manufacturing standards and maybe lower quality or inferior products.

Here is a link if anyone cares to read in detail:

http://www.nytimes.com/2012/09/27/business/smallbusiness/evepearl-a-cosmetics-company-weighs-risks-o...