e.l.f. beauty: intense competition makes future look less bright
This is not the case with E. l. f. Beauty (NYSE:ELF)
This is a cheap makeup product supplier designed for millennial consumers and general makeup enthusiasts, including eyeliner, eye shadow, lipstick and makeup artist.
Driven by an average annual sales growth of about 32% since 2012, 2014 and 2015-
$0. 141 billion and $0. 191 billion respectively.
It eventually reached $96.
8 million euros in the first half, e. l. f.
Made public on Sept. 23.
So far, Wall Street is happy with the initial public offering and sees it as a success, probably because stocks have risen more than 50% on the first day of trading.
However, in the world of cheap cosmetics, the fact that competition is fierce and competition is fierce should ease the enthusiasm of investors. l. f.
It has yet to prove that it can dominate space.
Cosmetics producers must be able to compete or overthrow major manufacturers of budget cosmetics such as P & G (NYSE: PG)
, Clorox and L\'Oreal, and smaller up-and-
Upcoming brands, as well as millennial cosmetics retail giants like Ulta (NASDAQ: ULTA)
And Sephora, at the same time to launch products at current or higher speeds, and to maintain profitability. Overviewsource E. l. f.
, Abbreviation for \"eyes, lips, face\", wallet for sale
Friendly cosmetics in over 19,000 stores in the United States, including Target (NYSE: TGT), Wal-Mart (NYSE: WMT), Kmart (NASDAQ: SHLD), Old Navy (NYSE: GPS), Ulta, CVS (NYSE: CVS)and Amazon (NASDAQ: AMZN); e. l. f. \'s longest-
Operating retail has been a target for seven years.
As of October 2016, the company also had 11 retail stores in New York, New Jersey and California. E. l. f.
Its appeal lies mainly in its price.
Makeup enthusiasts can have e for less than $10. l. f.
Studio HD powder or 10-
Eye Shadow Palette.
Buyers can buy products such as eyebrow cream, Contour blush or eyebrow sleeve for less than $5.
The company also sells budget-
Price of makeup brush.
Similar products sell for more than $20 at department store cosmetic counters and specialty cosmetics stores. e. l. f.
By keeping the ears close to the ground, knowing what the consumer wants, keeping the shelf space full of new and stylish products --
Through social media
And bring these products to market in just 20 weeks.
In an interview with Brian Sozzi of TheStreet, CEO Tarang Amin said the company \"has more than 300 product ideas in the pipeline \".
There is no doubt that the cosmetics industry is growing to compete for \"Blank Space \".
Mintel, a market research firm, noted that \"retail sales of beauty products in the United States reached $46.
It was $2 billion in 2015 and is expected to increase to $51.
By 2020, it was 8 billion and the income was 12%.
However, some experts say there is a gap between the mass cosmetics brand and the well-known cosmetics brand, sometimes referred to as \"blank \". \" e. l. f.
Of course, it has the ability to conquer the gaps, but it faces fierce and ruthless competition from other cheap cosmetics brands to share the same shelf space as these brands, such: the battle for millennial cosmetics buyers has also spread to e-commerce.
E-commerce. l. f.
Compete with the above-
Work with exclusive online brands such as Birchbox and BH Cosmetics.
All of the above brands, including e. l. f.
Others in the mass category also have similar products: they own the most fashionable cosmetics at the cheapest price, which allows consumers to buy endless cosmetics without destroying the bank.
Product packaging and products are slightly different.
Retailers Sephora and Urta offer an unforgettable shopping experience, moving the dial in terms of revenue with only 11 stores, E. G. l. f.
It\'s just that there is not enough footprint to be a player in this category.
Visibility on big box retail and pharmacy shelves is hampered, a competitive advantage. l. f. \'s growth.
In addition, the company relies heavily on social media influencers to market its products.
Marketing arrangements with social media influencers are rarely exclusive, and many of the most popular social media figures advertise many cheap cosmetic brands. Lastly, e. l. f.
Like other brands, they quickly put their products on shelves by making cosmetics cheaply in China.
As a result, new companies can easily enter this category with little investment. E. l. f.
There needs to be a strategy that will allow companies to beat their competitors, but before that, it\'s a wait --and-see stock.
Disclosure: I/we have no positions in any of the stocks mentioned and no plans to start any positions in the next 72 hours.
This article was written by myself and expressed my views.
I received no compensation (
In addition to Seeking Alpha).
I have no business relationship with any stock company mentioned in this article.