Gregg Renfrew, Founder and Executive Chair Beautycounter

Evolving and Attracting Investors

Developing it to such a scale has been a highly significant story for Gregg with Beautycounter. When she had options to sell it, or when IPO could have been the route, she got her company to a point where a major investor like Carlyle would embark on this growth journey with her.

Bringing Shiseido executive, Marc Rey, on board as CEO was a brilliant move by her to take things to the next level. Marc is so well known as a serial CEO who’s stepped into those roles before at Shiseido, and leading other global brands helping founders propel forward. Though multiple opportunities came her way to sell Beautycounter to strategics over the years, the founder decided against it. “First and foremost, with my commitment to leading the clean beauty movement, a strategic didn’t feel like the right avenue for us at that time.” A big Robert Iger fan, his outlook on acquisitions as a Disney CEO and doing something bigger than just specifically building the brand resonated heavily with her. She felt compelled to change the conversation in the beauty industry even more, drawing inspiration from his book.

“I thought this is really interesting. I want to control the destiny of Beautycounter and Counter Brands LLC, which always strives to make the impossible possible. I went to my board and said, I want to look for a financial sponsor that sees the value in the enterprise we’ve created but also sees the vision I have for the future. Where all beauty is clean beauty but also believing in the power of people and community based commerce. So Carlyle was the perfect fit.”

Complementing Expertise

Assessing their high growth, Gregg was quick to discern the need for a collaborative effort. Her great vision, coupled with her infectious enthusiasm and passion for the business was an asset; yet, the need for a strong operator to prioritize and lead the organization became paramount. “I think that’s where bringing in Marc was an incredible opportunity for us, and that he and I could really become this formidable duo using our inherent strengths and experiences to build the business” was how she would portray the transition.

Company with a “Never List”

Allowing her to really focus on her vision, carrying the zeal, and showing people the leadership position in the industry has made Renfrew even more of a formidable player. It’s been an awakening to the big brands who struggle with it, to up their game and get back on track. With a bold vision for her brand, Beautycounter’s publicized, trademark “Never List” includes over 1,400 chemicals banned or restricted in personal care products by the European Union, plus additional chemicals screened by the company found to be of concern. The company has been on a mission to adopt a personal health and safety standard that goes well beyond what is mandated currently in the United States. To date, this list encompasses a whopping 1800 or more harmful ingredients that this clean beauty provider has managed to eliminate.

An Omni Channel Approach

Beautycounter’s go-to-market strategy has served them well. Adopting a multiple track approach to target the market, including a Direct to Consumer (DTC) strategy, with fifty thousand or more consultants, launching some physical locations, e-commerce, have all made the company a true disruptor in the market. Gregg was never afraid of trying new things. “When I concepted Beautycounter, I felt we had an important story to tell. Most Americans even today have no idea that there are chemicals of concern in the products that they’re putting on their bodies every day.” Judging the distribution of products in department stores was waning, she realized her story was best told person-to-person and that it had to be built as a movement.

“Right out of the gate, we took best in class attributes of traditional direct sales, e-commerce and retail to create a new type of direct-to-consumer brand that was really community based, but afforded our clients the opportunity to move between channels as they saw fit, because you can’t dictate to consumers how they shop your brand today. And that’s exactly why I started building the business the way I did.”

An Omni Channel Approach

Beautycounter’s go-to-market strategy has served them well. Adopting a multiple track approach to target the market, including a Direct to Consumer (DTC) strategy, with fifty thousand or more consultants, launching some physical locations, e-commerce, have all made the company a true disruptor in the market. Gregg was never afraid of trying new things. “When I concepted Beautycounter, I felt we had an important story to tell. Most Americans even today have no idea that there are chemicals of concern in the products that they’re putting on their bodies every day.” Judging the distribution of products in department stores was waning, she realized her story was best told person-to-person and that it had to be built as a movement.

“Right out of the gate, we took best in class attributes of traditional direct sales, e-commerce and retail to create a new type of direct-to-consumer brand that was really community based, but afforded our clients the opportunity to move between channels as they saw fit, because you can’t dictate to consumers how they shop your brand today. And that’s exactly why I started building the business the way I did.”

Community Based Movement

The company has managed to attract people across age groups and gender. Gregg believes her advocacy efforts in Washington in ensuring all cosmetics and personal care products are free of harmful chemicals, is attracting a whole bunch of people. “Community based e-commerce has only amplified what happens at the corporate level. It’s an incredible asset to any brand. I think more brands should be thinking about doing that.”

Not that she hasn’t faced challenges when it comes to dynamic consumer needs or preserving her ecosystem, given that it’s a community based organization. “To be able to stand true to, and be vocal about things you stand for, without alienating large groups of people … and knowing that the community is important, because our goal is to get safer beauty products in the hands of everyone.”

Navigating this scenario and representing everyone, in a pandemic driven world of recent years or amidst other issues we face as a nation, is certainly a herculean task.

Debunking Myths

Facilitating two way dialogue between brands and consumers is crucial; but pivoting to create an ecosystem where people communicate with one another about the brand is huge. Busting myths about Multi-level Marketing (MLM), Gregg also thinks technology is still going to play a key role in how products come in to market and the interaction aspect. As Chairman of Revieve, a company that offers beauty and wellness products based on preference data, I see this potential for peer to peer communication as an incredible influencer opportunity.

Rebooting and offering mass scale men’s products is what Gregg sees for the future. Busting myths like- “When people say men don’t care, they do. With gender fluidity and things that have been emerging over the last few years in the forefront, I think people are buying a lot more products.” I agee! Offering cleaner product line to men and ensuring everyone’s health is protected is the next step for Beautycounter. Scientifically, the impact on men’s health is increasingly evident and it is only prudent for the industry to segue there.

Amplifying their multi-channel approach, exploring and expanding in the international scenario, are all on Gregg’s radar near to long term. She believes the world needs to better understand what’s going on out there; not just American and Canadian customers. “Though the European Union has stricter regulations, our approach to clean is very comprehensive”, she echoes. Creating a systemic change for her industry and focusing on sustainable packaging to preserve the health of our planet are her pivotal areas.

In a hyper-competitive market, with big brands and startups going after share, Marc Rey’s experience solidifies their massive global opportunity and market positioning. And together, the dynamic duo and their team hit the ground running post funding. For other brands and startups out there—an exit doesn’t have to be the final exit—instead, the next growth phase, like Beautycounter’s, could be your opportunity to take it to the next level of scale and impact.

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