ELF Thinks Like a Startup

Beauty partnerships are proliferating; community building and brand aesthetics are supporting their growth. Fashion Group International (FGI) explored this phenomenon, and more, at its Beauty U Beauty Symposium. The event was held at the Fashion Institute of Technology’s (FIT) Katie Murphy Amphitheater last month. The event examined what drives innovation in beauty and what supports its staying power in a changing environment. Speakers demonstrated that passion, drive and vision are integral to success, but elements of surprise and ingenuity keep it exciting.

Laurie Lam, chief brand officer, ELF Beauty, told WWD’s James Manso how she puts energy into the brand.

“Apply your hard work with opportunity and don’t let preconceived notions deter you from what you want to do,” she advised.

Lam began her career at L’Oréal. Of her current role, Lam said, “I am working with a multi-branded, $1.3 billion company, that thinks like an indie brand.”

She called ELF’s ingredient ethos as one of its superpowers.

“Our products are FTC-certified, clean. We stand behind what we put into them, as well as what we are not putting into them.”

Lam spoke of ELF’s collaboration with Alicia Keys lifestyle beauty brand, and the ways in which ELF keeps up with its brand culture.

A Ritual of Reinvention

“We don’t want to rest on our laurels. It’s a constant ritual of reinvention, so we have to keep up. We grew at seven times the average in the last fiscal year,” said Lam.

The ELF board of directors is 67% women and 44% diverse.

“We want to double the rate at which women of color are elected to boards, that is one of the things that is magic sauce at ELF,” said Lam.

She explained the company’s creation of a coalition of 54 companies wanting to do better to have more diverse boards.

“Speed matters, but without a culture, it is worthless,” said Lam.

A high-performance team is an integral part of the ELF culture and ethos.

“It is around being disruptive,” she explained, noting that all employees are shareholders; and her personal leadership style places value on using your time to better someone else, forge community and collaborate. Lam said the company’s welcome sign reads, “Bold disruptors with a kind heart.”

Collaboration is key in driving results, she said. The recent acquisition of Hailey Bieber’s Rhode Beauty exemplified community, commerce and content, said Lam. Rhode sales topped $200 million last year.

Tapping into Female Founders

Lam explained how she leverages a collection of brands and maintains a diversified portfolio. She looks forward to finding female founders and tapping into their visions. Having worked with Alicia Keys to develop her Soulcare line, Hailey Bieber of Rhode, and Well People, makeup and skincare, Lam said finding female founders with a vision and cross-pollinating their strengths is a key strategy. She stressed the importance of keeping the DNA and unique mission of each brand and building a platform around it.

With the acquisition of Well People, a vegan, plant-based makeup brand, they learned it was formulated with 11 ingredients not used in the US.

“This allowed us to up the caliber of how they do clean,” said Lam, noting the importance of learning from their partners and leveraging that knowledge.

The Power of Social Platforms

ELF also joined TikTok and Twitch, a live streaming platform that allows users to participate and interact, because they knew their community was there, giving them an advantage in social media.

“We went on Twitch and have 250 million users now,” said Lam. “We have found a way to live authentically on each of our platforms,” she said, adding that ELF is now in one of every three households in the US.

The Gen Alpha cohort, which she referred to as the “Sephora Kids,” are maturing and becoming “micro influencers.” As the Gen Alpha and Gen X audiences increase, Lam says ELF is trying to help them understand how their products are used, and what they do. Said Lam, “ELF has multi-generational appeal,” and it continues to offer products that are hydrating, as well as offering vitamin C serums, and solutions for Gen X.

ELF started 20 years ago by a father and son in 2004, selling products online for $1 each.

“That disruptive mindset never left the building. We built an entire team of unicorns who wake up every morning and say, ‘what do we do next?’”