Want to build a beauty brand worth millions? Then dont just focus on ingredients.

Ive been looking at the strategy of Drunk Elephant (acquired for $845 million). Many people think they capitalized on the clean beauty trend, but thats a misconception. They succeeded because they turned skincare into a ritual—like mixing cocktails. Each product had a mixing guide that allowed customers to create their own combinations. This made their skincare routine less of a chore and more of a pleasure.

Its not just good branding—its a business strategy. The way you design your products influences customer behavior, and that behavior generates revenue. Furthermore, their exclusive partnership with Sephora has given them a unique market position—an advantage—for years.

Sephora is no longer the 'golden ticket for beauty brands. Times have changed.

Just a few years ago, success for beauty brands looked different. When Shiseido acquired Drunk Elephant, they were valued at seven times annual revenue. Today, such a scenario is rare.

Everyone would love to replicate that formula. But it no longer exists. You cant just walk into Sephora, be exclusive for five years, raise $120 million, and expect a hefty takeover bid.

Today, the market is more complex. More brands, more competition, and higher consumer demands. New strategies have emerged—and they determine who wins the game.

What matters to investors now?

Founder-led brands – founder-led brands. Brands backed by ambitious, authentic founders continue to attract investor attention. They give the brand an identity, a unique vision, and a passion that cannot be faked. The bottom line is that so-called faceless brands have a lower chance of success.

Self-knowledge and focus on strengths. Success often depends on knowing your own limitations. Understanding what a founder is good at and what they need support for is paramount. Investors want to work with brands that understand their strengths and weaknesses.

High margins and customer loyalty. Investors are looking for brands with strong customer retention and loyalty. High-margin products that offer unique value attract capital and pave the way for business scaling.

You dont need a better product. You need a better way to sell it.

Todays market demands new strategies. For cosmetics brands, this means creating not just products, but entire experiences. Customers no longer buy just ingredients—they buy how to use them, a ritual that becomes part of their lives. The internet has changed a lot, and these are the consequences.

Some key questions to think about:

• Do your products offer consumers the opportunity to personalize them?
• What unique experience do you provide to the user?
• Can you build loyalty around your brand, not only through ingredients, but also through application, packaging design, and communication?

Drunk Elephant has shown that a product is not just a tube of cream – its about the story, the way you use it, and the habits you build in your customers.