Annual revenue is nearly 600 million US dollars! Amazon's best seller has long dominated the BSR list

When it comes to personal care products, the first thing that comes to mind is international brands such as Procter & Gamble and L'Oreal . But in addition to these brands, we have to mention the well- known American hair care brand Olaplex , which has become a dark horse in the hair care product category.

Olaplex's sales business is expanding rapidly, and its annual revenue is growing rapidly!

Olaplex was founded in 2014 and is headquartered in Santa Barbara, California, USA. It is a well- known hair care brand in the United States . Olaplex 's main product function is to repair hair damaged by chemicals , the environment, and aging.

With the support of this product technology , Olaplex 's sales business has ushered in rapid expansion, with sales footprints covering more than 80 countries and tens of thousands of beauty salons around the world .

Olaplex is known as the originator of the bleaching, dyeing and repairing industry in the United States, and is deeply loved by Hollywood stars . Actress Kardashian, singer Rihanna and Lopez all strongly recommend it, and the brand has therefore become widely circulated and earned the reputation of "liquid gold" .

Initially, Olaplex mainly expanded its business through social platforms and professional salon channels. Since 2018, Olaplex has begun to expand into new retail channels and DTC channels , such as online retailers and offline department stores.

At the same time, Olaplex is also actively expanding its domestic market. In 2020, Olaplex's overseas flagship store officially entered Tmall. Olaplex's flagship store on Tmall focuses on high-end cleaning products, with an average price of over 300 yuan , and the high-end track has also gained a specific customer base. In November 2021, Olaplex's Tmall flagship store achieved its best monthly performance of 27.41 million yuan , selling 90,000 items .

On September 30, 2021, Olaplex successfully listed on the Nasdaq, raising a total of US$1.55 billion. On the first day of listing, its market value reached US$16 billion.

In recent years, Olaplex's sales performance has seen rapid growth.

Olaplex 's revenue in 2019, 2020 , and 2021 was US$148.2 million , US $ 282.3 million , and US$598.4 million, respectively.

Olaplex's net profits in 2019, 2020 , and 2021 were US$117 million, US$179 million, and US$473 million, respectively.

In the first nine months of 2022, Olaplex 's sales reached US$ 574 million , an increase of 32.8% compared with US$432 million in the same period last year. Adjusted net income reached 263 million yuan, an increase of 29% compared with US$204 million in the same period last year .

With more than 100 product patents, Olaplex has gained popularity on multiple platforms!

It is understood that Olaplex currently has 11 hair care products . Its product line covers hair care areas such as shampoo essence, hair mask, shampoo, essential oil, etc. , and it has more than 100 product patents .

(Image source: Amazon official website)

Olaplex said that the company will launch 2-3 new products every year to ensure that the number of new products reaches 7-10% of the number shipped by Olaplex's retail partners .

Currently, Olaplex's 11 hair care products are all named with numbers, and products with different numbers have different customer groups and functions. Among them, products No. 1 and No. 2 are used in professional salons, and the household products that consumers often buy are No. 0, No. 4P, and No. 3-9. Among them, No. 0 is essence water, No. 4P is color-correcting shampoo, No. 3 is a pre-wash hair mask, No. 4 is a repairing shampoo, No. 5 is a repairing conditioner, No. 6 is a shampoo-free hair mask, No. 7 is a hair care essential oil, No. 8 is a hydrating repairing hair mask, and No. 9 is a nourishing isolation conditioner.

In order to distinguish different product ingredients and functions, Olaplex divides its products into four major series, namely "Pro", "Treat", "Maintain" and "Protect". Consumers can achieve different hair care effects by combining different products.

Olaplex products are very popular on the Amazon platform , and many of its star products have entered the Amazon Best Hair Care Products list .   Seller list . The most popular products are Olaplex 's No. 3 , No. 4 , No. 5 , No. 6, No. 7, etc. The number of reviews left by buyers is in the tens of thousands, and the number of reviews for No. 3 is close to 100,000.

On the Walmart platform, Olaplex 's product sales are also very high, dominating the BSR list.

In addition to deploying on mainstream e-commerce platforms, Olaplex has also developed unique operational plans for different social platforms.

Olaplex has a YouTube channel specifically for stylists, and will also share some videos from the Olaplex channel on the YouTube platform to the salon website , making it easier for employees to share their hairdressing experiences on their own social media platforms , which can help promote their products.

Olaplex has also done very good marketing on the Instagram platform , with a fan base of 2.3 million .

Olaplex has also invested a lot of energy in the operation of the TikTok platform, with nearly 300,000 followers and 2.4 million likes on the platform. In August of this year, Olaplex 's first TikTok tag challenge exceeded 3 billion views within 72 hours , bringing the brand the greatest influence in a limited time .

In addition to its presence on multiple e-commerce and social platforms, Olaplex is also actively expanding its offline business, planning to expand the number of its Sephora-at-Kohl's stores to 650 by 2022 , of which the number of Olaplex's Sephora stores in Europe will double .

At the same time, Olaplex continues to deepen its international business. In 2021 , Olaplex's sales in the international market increased by 91%, of which regions outside the United States contributed 40% of sales .

The cleaning products market welcomes new growth points

In recent years, the demand for hair care products in the US market has been very strong, and the hair care market is considered one of the fastest growing markets in the world.

According to NPD, more than 90% of American consumers show strong purchasing interest in hair-related products. This positive shopping trend is expected to continue until 2024, with an average growth rate of 15% in the next two years, and nearly 50% of consumers are willing to spend more money to buy hair products that suit them.

Compared with before, more consumers plan to buy more targeted hair-related products, including hair and scalp care, relaxers, chemical straighteners, etc. More than half of the respondents said that when they find a product that suits them, they will continue to use it, and 49% of consumers are willing to increase their budget for hair care products.

Data shows that sales of hair masks and scalp care products doubled from 2019 to 2021. Although sales of other beauty products declined during the epidemic, sales of hair care products continued to grow steadily.

Currently, consumers have a strong demand for high-quality hair care products , and more and more consumers are willing to pay for high-end hair care products. High-end hair care products contain a lot of market opportunities.

According to NPD survey data, the annual sales of high-end hair care products are currently about 2.6 billion US dollars, accounting for about 12% of the total sales of beauty products . It is expected that by 2024, the market size of high-end hair care products will be on par with that of color cosmetics , and is expected to reach 7 billion US dollars.

As consumers become more familiar with high-end hair care products, they will actively look for hair care products that suit them during their daily shopping and invest more time and money in hair care.

The market share of high-end shampoo, hair care and related industries has increased year by year , and many domestic and foreign brands are competing to enter the market. However, it should be noted that grasping the core needs of users and achieving differentiated marketing are the keys to winning in the market.

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