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In this episode, Alizila editor Alison Tudor-Ackroyd talks to JuE Wong, CEO of Olaplex, knowledgeable haircare line.They dig into the most recent traits in China’s fast-growing haircare market and how manufacturers can participate in China’s largest purchasing pageant, 11.11.
Olaplex reported on Thursday that its web gross sales rose 81% within the third-quarter and will bounce 117% for its fiscal full yr versus a yr earlier.
Below is a transcript of this Alicast, edited for readability and brevity
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Alison Tudor-Ackroyd:JuE, nice to have you ever with us. You’re well-known within the magnificence world after steering Olaplex by way of its IPO and serving as CEO of Moroccan Oil. Could you say a number of phrases to introduce your self to our listeners, please?
JuE Wong: Absolutely. Well, to begin with, thanks for having me. This is certainly a really thrilling time for Olaplex. As you’ll be able to see from our IPO submitting, we see ourselves as an progressive, size-enabled technology-driven magnificence firm. Our purpose is to proceed to serve up no matter customers need to deal with their broken hair, not by masking it, however by really giving them an answer within the very first utility. So, we stay very excited that there’s simply a lot we are able to do within the house of status haircare.
Alison Tudor-Ackroyd:Tell us a bit bit extra about your China enterprise; whenever you began in China and how is that this market vital going ahead?
JuE Wong:Yes. First of all, the China marketplace for me personally is a vital market being Asian myself. When I used to be in Singapore, China was an rising dragon and at this time China is on the forefront of the whole lot, whether or not it’s digital, whether or not it’s social commerce or whether or not it’s traits. C-Beauty [a.k.a Chinese-born beauty brands], is a really massive piece of the sweetness psyche.
What’s vital for us is we began formally a yr in the past in China by way of Tmall Global on 11.11 in 2020. So, 11.11 2021 can be our anniversary. So, we’re tremendous excited. We have seen early alerts that this system is doing properly and the reception among the many Chinese client for our haircare model is tremendously sturdy; primarily as a result of I feel that each the Chinese and the Asian customers have a look at haircare nearly like skincare. And I feel the skinification of hair will proceed to actually be showcased in Asia primarily, and particularly in China the place it’s such a dominant market in relation to magnificence.
Photo credit score: Olaplex
Alison Tudor-Ackroyd:While we’re speaking, the world’s largest purchasing pageant is in full swing. The places of work listed here are actually abuzz with exercise. Could you inform me how Olaplex is getting concerned with 11.11?
JuE Wong: Yes. Super excited. Given that it’s our first anniversary, we actually need to be sure that folks proceed to be very drawn to the model for all the precise causes. So, we’re doing a star collaboration with Zhou Keyu in addition to doing reside streaming with Austin Li. We have labored with Austin Li earlier than, and he has accomplished tremendously properly. So we consider that our continued collaboration on these fronts to assist actually drive consciousness for Olaplex in China, with the 11.11 platform by way of Tmall Global can be particularly related.
Alison Tudor-Ackroyd:This pageant simply retains on rising. Do you suppose it’s a extremely vital landmark for retailers?
JuE Wong:Yeah, something that may assist us message and share with the Chinese customers, what precisely are we serving up, is at all times going to be related. I feel particularly with this pageant, with 11.11, primarily as a result of it was a vacation or a purchasing feast created by the Chinese customers, or by Alibaba by way of the Tmall Global platform, and it’s now turn out to be a staple. Every yr everybody appears ahead to it.
As quickly as it’s over, we’re already planning for the next yr; that’s how vital the pageant is to so many people and for Olaplex it’s no completely different.
Alison Tudor-Ackroyd:You’ve talked about your partnership with Tmall a few occasions now, and it additionally was in your IPO paperwork. So it appears materials. Could you inform me a bit bit extra concerning the partnership? What’s concerned? What are probably the most highly effective instruments that you simply’re leveraging?
JuE Wong: Yes, we don’t work immediately with Tmall, we work by way of our a cross-border distributor referred to as SuperAtypical. They characterize numerous manufacturers which might be accustomed to the China market, and additionally accustomed to the Tmall Global platform. So, for us, what’s vital is that seamless expertise that the Chinese client has grown to anticipate? They are clearly doing numerous analysis, whether or not it’s on-line or offline.
We need to make sure that once they expertise us on Tmall, that have extends, simply not by way of the display screen, but in addition once they obtain their merchandise, how the merchandise are being utilized by them by way of understanding the product, clearly on-line, by researching us. All this actually provides up. Tmall permits us to present that client that have, that ordinarily will probably be very robust for a U.S. model that doesn’t have a full brick-and-mortar presence within the Chinese market.
JuE Wong:Absolutely and to begin with, thanks a lot for having me. It’s at all times very thrilling to have the ability to showcase our model to the Chinese viewers. Olaplex really is a model that may be very democratic. We serve a common profit, which is healthier-looking hair by fixing your harm on the core quite than masking the issue. So hopefully, extra folks will get to know us by way of this 11.11 pageant, and we’re tremendous excited to have our first yr anniversary on this platform.
Alison Tudor-Ackroyd: To give our viewers an thought of the attain of Olaplex and have far it’s come because it was based in 2014, what does Olaplex’s world footprint appear to be now?
JuE Wong: Olaplex is beneath seven years outdated. We are in 60 plus international locations, as our IPO submitting has indicated. Our enterprise is about 50:50, 50% in North America and 50% worldwide. So we’ve got a reasonably first rate, strong enterprise, so to talk. And we’re additionally an omnichannel model, that means that we’re in skilled hair salons, specialty retail, in addition to on-line, which is direct-to-consumer. We classify these gamers as pure performs, which Tmall Global could be as a result of it’s a cross-border platform. We see ourselves as very synergistic, very mutually reinforcing, as a result of we consider at this time’s prospects ought to have the ability to discover us each time and wherever they need to.
Watch easy methods to use Olaplex merchandise
Alison Tudor-Ackroyd:I’d wish to dive into the large subject proper now. How has the coronavirus pandemic impacted the haircare trade? And would you say that it’s made diversification of channels and markets extra vital for Olaplex?
JuE Wong: I feel what the coronavirus and Covid-19 has actually accomplished is to make lots of people self-reflect. And I feel you’ve heard the phrase self-care used pretty generally throughout this time. Primarily as a result of folks have been locked down at residence, they noticed themselves lots on display screen and they realized that point was saved, as a substitute of spending an hour or so to commute, that hour or so may very well be used.
Unfortunately for lots of us, we used that point to in all probability have extra conferences. But, what I’ve seen is that magnificence basically and haircare specifically, has benefited considerably from that self-care ritual and that routine. I consider as a result of hair is so seen, it’s a bit bit like colour cosmetics, whenever you placed on make-up, you’ll be able to really see a distinction in your pores and skin and with hair whenever you use the product and you actually see the healthiness of the hair coming by way of its very encouraging. Then you need to hold doing it with the intention to have that very same consequence, once more and once more.
Alison Tudor-Ackroyd:One for the sweetness experts on the market, the “skinification” of hair is absolutely taking off globally by that, I imply, introducing skincare rituals, into haircare, similar to masks and oils. I’d love to listen to Olaplex is responding to this pattern.
JuE Wong: I feel Olaplex was skincare for haircare proper from the very starting once they launched in 2014. I say that solely as a result of if you consider it, what Olaplex did was it didn’t simply have retail merchandise within the skilled channel. It actually dove deep into what we name the backbar [the shampoo bowl in a salon]. Only licensed cosmetologists are capable of purchase these merchandise to be used in backbar companies.
So, if you consider it, it’s nearly equal to dermatologists serving their sufferers. Therefore that relationship within the backbar, along with Olaplex, is sort of a doctor-patient relationship. For us, it was by no means a few advertising transfer, it was at all times about giving the licensed hairdresser a chance to boost their artistry and their craft.
Haircare begins with a wholesome scalp. Photo credit score: Shutterstock
Alison Tudor-Ackroyd:Staying on skinification a second, it’s such an enchanting pattern, I perceive that Olaplex is exploring new classes, similar to scalp care and skincare. I feel you talked about this in your IPO paperwork, any updates for us?
JuE Wong: Let’s make clear, scalp care may be very logical, particularly when you’re addressing harm. Healthy hair identical to pores and skin, begins from the core. To have wholesome hair, it actually additionally begins from the scalp.But simply to make clear on the skincare adjacency that was in our public submitting, we’ve got patents which have purposes not solely in haircare, but in addition in skincare. So, we did a research by way of a really respected, world company to seek out out does Olaplex, although we’ve got the patents, have the authority and the flexibility to play and win within the skincare house.
The knowledge was very encouraging. About 82% of people who find themselves accustomed to Olaplex mainly stated I’d like to see skincare from Olaplex and about 50% of that 82% mainly stated they might select Olaplex skincare sight unseen, ie swap out no matter they have been utilizing. When we pressed them “How is that?” They stated they noticed us as a science-enabled and technology-driven model and firm, and subsequently that they had that religion and that belief in us.
Alison Tudor-Ackroyd:I wished to maneuver to a different actually massive pattern in haircare and magnificence care extra broadly. Globally, we’ve seen the rise of male magnificence merchandise. Do you reckon that it is a pattern to look at going ahead? Is this one thing that you simply’ve additionally noticed in China?
JuE Wong: In Asia basically, and now in China specifically, male customers are not seen as useless. Male customers who’re fascinated about their pores and skin, of their hair, in total wellness, see this as a wholesome method, it’s not about self-importance. So, we’re seeing numerous male customers going after the well being angle and that’s giving numerous Western guys that very same notion. I feel the male inhabitants goes to, particularly the youthful set, understand that if they will have earlier care that they will care for themselves sooner, it’s extra like prevention is healthier than addressing an issue.
If they will stop one thing from taking place and actually care for themselves, they will even have more healthy trying hair for for much longer and more healthy trying pores and skin too.
Alison Tudor-Ackroyd:The world is grappling proper now with assembly calls for and logistics. How are you guys managing the provision chain drawback and overcoming these challenges. Specifically for 11.11, how is Olaplex working with Tmall Global to ship merchandise to Chinese customers?
JuE Wong:I feel to begin with, what is essential to notice is that Olaplex has a definite benefit, once more, mirrored in our submitting, our relationship with our suppliers, with our distributors, with our uncooked materials suppliers. It’s not nearly ensuring that the supply-chain piece works properly, its multi dimensional. It’s not simply concerning the merchandise from end-to-end, clearly that’s at all times vital, but in addition having that relationship is simply as key, in order that we all know that we are able to lean on them ought to we’d like roughly.
What is vital to notice is that we’ve got a really tight assortment and when you may have a decent assortment it’s much less complicated for customers as a result of they know precisely what its about. You speak about skinification, the routine that builds the routine, and then with a decent assortment, it’s additionally simple to handle together with your provide chain since you’re not a whole lot of SKUs. In the realm of Olaplex, we’ve got eight retail SKUs that’s a lot simpler to handle and to actually talk. Most conventional magnificence firms have a whole lot of SKUs.
Alison Tudor-Ackroyd:While we’re speaking, the world’s largest purchasing pageant is in full swing. The places of work listed here are actually abuzz with exercise. Could you inform me how Olaplex is getting concerned with 11.11?
JuE Wong: Yes. Super excited. Given that it’s our first anniversary, we actually need to be sure that folks proceed to be very drawn to the model for all the precise causes. So, we’re doing a star collaboration with Zhou Keyu in addition to doing reside streaming with Austin Li. We have labored with Austin Li earlier than, and he has accomplished tremendously properly. So we consider that our continued collaboration on these fronts to assist actually drive consciousness for Olaplex in China, with the 11.11 platform by way of Tmall Global can be particularly related.
Alison Tudor-Ackroyd:This pageant simply retains on rising. Do you suppose it’s a extremely vital landmark for retailers?
JuE Wong:Yeah, something that may assist us message and share with the Chinese customers, what precisely are we serving up, is at all times going to be related. I feel particularly with this pageant, with 11.11, primarily as a result of it was a vacation or a purchasing feast created by the Chinese customers, or by Alibaba by way of the Tmall Global platform, and it’s now turn out to be a staple. Every yr everybody appears ahead to it.
As quickly as it’s over, we’re already planning for the next yr; that’s how vital the pageant is to so many people and for Olaplex it’s no completely different.
Alison Tudor-Ackroyd:You’ve talked about your partnership with Tmall a few occasions now, and it additionally was in your IPO paperwork. So it appears materials. Could you inform me a bit bit extra concerning the partnership. What’s concerned? What are probably the most highly effective instruments that you simply’re leveraging?
JuE Wong: Yes, we don’t work immediately with Tmall, we work by way of our a cross-border distributor referred to as SuperAtypical. They characterize numerous manufacturers which might be accustomed to the China market, and additionally accustomed to the Tmall Global platform. So, for us, what’s vital is that seamless expertise that the Chinese client has grown to anticipate? They are clearly doing numerous analysis, whether or not it’s on-line or offline.
We need to make sure that once they expertise us on Tmall, that have extends, simply not by way of the display screen, but in addition once they obtain their merchandise, how the merchandise are being utilized by them by way of understanding the product, clearly on-line, by researching us. All this actually provides up. Tmall permits us to present that client that have, that ordinarily will probably be very robust for a U.S. model that doesn’t have a full brick-and mortar presence within the Chinese market.
Alison Tudor-Ackroyd: So this 11.11, Alibaba has positioned higher give attention to sustainable consumption. Could you inform me how is Olaplex practising sustainability and being extra environmentally accountable?
JuE Wong: Being environmentally accountable has been within the DNA of Olaplex since we began in 2014, and that was earlier than ESG was even an enormous platform. Olaplex has intentionally not used secondary packing containers of their lineup each time attainable. Because of that, we’re capable of doc with a world paper board that we save one thing like 23 million kilos of greenhouse gasoline from being emitted into the setting, greater than 30 million gallons of water from being wasted and 29,000 timber from being deforested.So, going into 11.11, and coming into China, it was very clear to us that we have been going to proceed with that carbon-negative packaging platform.
Also, becoming a member of within the festivity, we’re encouraging our customers to actually have a look at it in digital bundles, quite than in kitted format. Because anytime you place something in a package, that’s a further packaging and field and further inserts that may actually affect the setting. Because 11.11 is such an enormous purchasing day, you’ll be able to think about how a lot may very well be emitted into the setting in case you’re not cautious. So we’re very happy with the truth that our customers by way of our distributors are very receptive to our recommendations of digital bundling.
Influencer Jassym Lora, spouse of Andre Russell. Photo credit score: Olaplex
Alison Tudor-Ackroyd:So, how is 11.11 going for you guys?
JuE Wong: It’s our first yr anniversary and by way of our distributor SuperAtypical, they already began as of October 15, as a result of smaller manufacturers are likely to have a bit little bit of a lead. They know they must, particularly for us, however properly, the bigger manufacturers are going to have much more of that principal stage occasion on the precise date itself. And I’ve been given early reportings that we’re already multiples over the identical time final yr, and final yr we have been already in an excellent place.
So I do consider that China is an extended sport for us. Its not a one-hit surprise, and we’re tremendous excited to actually deliver prospects together with us and have them unfold the phrase, we’re the Instagram’s primary most-followed social media model, and we hope to proceed that legacy in China.
Alison Tudor-Ackroyd: What has teaming up with Sephora meant for Olaplex? Also, how are you different methods to achieve customers extra immediately?
JuE Wong: What is vital to notice is that we’re really an omnichannel model. We don’t see ourselves as multi-channel. I make that distinction very intentionally. Multichannel is the place you’re co-existing, you’re form of saying I’ve to be in these channels as a result of it’s what my enterprise requires.
In the case of Olaplex, it’s synergistic and mutually reinforcing. When we’re within the skilled channel, it doesn’t denigrate our retail and vice versa, nor does it affect our direct-to-consumer. I’ll offer you a few very poignant statistics, 35% of our prospects are literally referred by hair professionals to Olaplex; and 50% of our direct-to-consumers really purchase at salons in addition to at specialty retailers.
So you’ll be able to see that each time when Olaplex is in a channel, it doesn’t take away from the others, in reality, it’s mutually reinforcing. The motive why that’s, is as a result of we’re a community-based model, we’re socially very related. When you do this, I feel you exude authenticity and your customers need you to be a part of their ecosystem.
Alison Tudor-Ackroyd:Thank you a lot for becoming a member of us on Alicast and thanks very a lot to your insights into the world of haircare. It’s been a pleasure speaking with you.
JuE Wong: Thank you a lot for having me. And I hope everybody who’s listening on the market has a beautiful 11.11 season.
Yeah. I discovered lots each from studying and recording this podcast at this time. Thank you, Barbara, for sharing all of your insights.
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“Alicast” is a manufacturing of Alizila, the company newsroom of Alibaba. It’s produced by Monica Suk and edited by Alison Tudor-Ackroyd. If you’re in a podcast app already, please comply with “Alicast”. If you’re listening on Alizila’s web site and need every new episode of “Alicast” delivered to you as they’re revealed, obtain any podcast app, then seek for “Alicast” to comply with the present. Thank you for listening.
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