HBR Case Analysis - Glossier

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Morgan Hafer

James Loomstein
Social Media for Entrepreneurs
April 20, 2021
HBR Case Analysis | Glossier

1. I think Glossier should utilize the $52 Series C fundraise to boost R&D. As is, Glossier uses its
audience to gain insight into which products to develop and create. The Milky Jelly Face Wash
was invented after a blog post was initiated on The Gloss. When Glossier was a bi-coastal brand,
with homogeneous customers, I think this method worked. But if they continue to scale, I think
they will need to invest in R&D to explore future opportunities. Research can be focused on
where other brands are not. As a beauty consumer, just when I think that they have created every
product possible, something else launches. From dry conditioners to hybrid serums, beauty
brands everywhere are looking for a cutting edge. I believe Glossier could see great success and
creating the next “it” thing. Additionally, based on the Glossier consumer base, I believe it will be
very important for them to take the necessary steps to back some of their products with the
proper testing. I personally know of three people who have used their sunscreen then received
sun poisoning after a short time outdoors. They will need to back their products with evidence and
testing and steer clear of “greenwashing” in the industry. In addition to finding the next best
beauty product, I also believe for it to be wise to invest in what technology will be up and coming
and how to best differentiate their webpage from other e-commerce sites.
2. I advise Glossier to pursue the customer loyalty program and influencer marketing program (but
in an unconventional manner)
a. The Glossier fans are the heartbeat of the company. They dictate new product launches,
influence change, and above all else are the reason for its success. I personally know
many “Glossier Stans” as girls like to label themselves, or individuals who shop with the
brand frequently and own many of their products. I think it’s smart for Glossier to
recognize the importance of its customers and provide an incentive program that
vocalizes their appreciation. This could even be something like loyalty members get the
first look at new products or even help dictate new launches.
b. Second, I think they should pursue influencer marketing, but in an unconventional
manner. The issue with influencer marketing today is that it seems like everyone is trying
to sell you something. It is hard to identify good, honest, influencers who promote
products they honestly use. I’d recommend they seek out strong women who embody all
that the Glossier brand entails.
i. In response to the other two options, peer-to-peer sales, and paid media, both
seem off-brand to me. I think the peer-to-peer approach could be achieved
through a more conversation and inclusive web experience, but paid media feels
far from the mission and vision of Glossier, regardless of how “raw/unedited” the
media was.
3. I think Glossier could consider opening another retail store and pop-up for new products, but I’d
advise them not to partner with Sephora or Ulta.
a. The existing Glossier store in New York is something special. It’s a flagship of “emotional
commerce.” The display of the products is unusual, daring, and boundary-pushing.
Glossier has recreated what it means to shop in-store with hues of pink and interactive
elements. The issue associated with this, of course, is cost and conversion. I believe
Glossier has the potential to create a “destination” in every major city with a retail store,
and they could expand their sales by selling other items just their traditional lineup, like
hard beverages to aid in the overall experience.
b. I would, however, advise Glossier to hold off on their partnership with big-name brands
like Sephora. The bulk of Glossier’s existing customers fall into a niche millennial market
that gravitates toward items that give them a sense of individuality. By making their
products widely accessible they may see a slight increase in sales but at the expense of
most of their individuality. If they do choose to partner with Sephora/Ulta, I recommend
they do so under the same format as brands like Pat McGrath and Nest. These
companies have collaborated with Sephora to offer a limited line of exclusive items to
Sephora customers and retail in only select stores, (for example Pat McGrath 29 of 430
US Stores.) This would enable Glossier to make its way into new consumers’ homes,
while also motivating buyers to their eCommerce site to buy additional goods.
4. The community is a huge part of the Glossier brand. Doing whatever they can to make people
feel included and heard should be at the core of everything they do, regardless of scale. This
includes responding to bad reviews and engaging on social media whenever possible. As they
grow, I think Glossier should work to moving from implementing customers’ recommendations to
getting feedback on product ideas. For example, Glossier could share 3 new product ideas and
let people influence which goes to market. This way they are letting their community engage in
every aspect of the process, without guaranteeing that every idea will influence change. I also
think top customers should be recognized for repeat purchases and asked for input and feedback
on the products they purchase.
5. I think Glossier is an extremely powerful brand. They have created a name for themselves in a
sea of other beauty products and created a cult-like following. It has a strong online presence that
will online be further enhanced by advancements in technology, and its social media presence is
organic and successful. Threats to future growth could be a further appeal to other markets and
long-term growth with product innovation. As I previously mentioned, the brand should be wary
about Greenwashing and ensure that its message is synonymous with its offerings. The
sustainability of its brand depends on its ability to transcend beyond the millennial generation.

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