How Beauty Brand Depology Grew to $20M in Ecommerce Sales in 3 Years (Growth Tactics Series)
Jul 3, 2024
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Alex Lee, CEO of Depology, discusses how they grew to $20M in sales in 3 years. Topics include transitioning to skincare, using Facebook ads and influencers, customer retention, content creation in the beauty industry, challenges from influencers launching brands, and seeking inspiration from young entrepreneurs.
Depology's success stemmed from early adoption of Facebook ads in 2019, generating significant revenue swiftly.
Deepology focused on customer engagement, loyalty, and personalization to transform into an 'entertainment company' in skincare.
Deep dives
Growth Story of Deepology Skincare Brand
Deepology, a skincare brand focusing on South Korean beauty products, grew rapidly through effective digital strategies. Founded by Alex Lee, the brand's success was attributed to early adoption of Facebook ads in 2019, swiftly generating substantial revenue within weeks of inception. Transitioning from a generic e-commerce model to a specialized skincare brand in 2020 proved pivotal, leveraging high margins and customer engagement.
Key to Continued Success: Backend Customer Understanding and Engagement
Solidifying a robust backend operation, Deepology excelled in understanding and engaging its customer base, enhancing brand loyalty and fostering a high returning customer rate. With an emphasis on personalization and compelling content creation, the brand transformed into an 'entertainment company' in the skincare sphere. By establishing direct channels like email marketing, Deepology ensured sustainable customer retention amid evolving digital landscapes.
Future Strategies: Embracing New Platforms like TikTok Live for Growth
To navigate changing digital paradigms and sustain growth, Deepology shifted focus to TikTok Live, a burgeoning channel with immense potential for engaging users. Learning from innovative teenagers and early entrepreneurs, the brand draws inspiration from novel marketing approaches. By foreseeing trends and proactively exploring new platforms, such as TikTok Live, Deepology aims to stay ahead of the curve and maintain its competitive edge.
Today's podcast is part of a new series on Growth Tactics, where we talk to digital businesses that are winning. And dig into what worked and what didn't.
Our first episode is an interview with Alex Lee, the CEO and co-founder of beauty brand and DTC ecommerce site Depology.
After years of struggle as a small ecommerce site, Alex pivoted to beauty and skin care products in 2019. And then grew rapidly to $10M in revenue in ten months. And within 3 years, Depology had grown to $20M in sales.
That's awesome. I talked with Alex about how they did it. What growth tactics worked? Which didn't?
It was a fun discussion with quite a few valuable lessons. Plus, it's great to see a former MBA student of mine doing so well.
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I write, speak and consult about how to win (and not lose) in digital strategy and transformation.
I am the founder of TechMoat Consulting, a boutique consulting firm that helps retailers, brands, and technology companies exploit digital change to grow faster, innovate better and build digital moats. Get in touch here.
My book series Moats and Marathons is one-of-a-kind framework for building and measuring competitive advantages in digital businesses.
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