EOS Lip Balm, a $250 Million Cosmetics Giant

While Chapstick has been reigning ruler of the lip balm industry, that dominance suffered a great upheaval in 2009; the year that EOS’ assortment of pastel spheres hit the market. EOS, an acronym that is short for “Evolution Of Smooth,” is a startup company that has exceeded $250 million dollars in worth; positioning it directly behind Burt’s Bees as the leading American source for lip balm.

Sanjiv Mehra, cofounder and manager of EOS, told Fast Company that he transitioned into the lip balm market after realizing how greatly innovation could pay off. After market research indicated a strong female user base despite the non-gendered approach to the product’s sale, EOS seized the opportunity and directly marketed its products to female consumers. After hitting a few snags with several vendors whose customers tended to stick to “their” brands, EOS managed to find some success with Walgreens. That success got the company enough visibility to draw in massive department stores like Walgreens and Target.

With the understanding that its products could sell and with the insurance that comes from owning its own equipment instead of hiring the work out to a third party, EOS lip balm shifted its efforts toward innovation. After assessing the various markets for its line of products, EOS focused its marketing on the demographic of style-conscious 25-35 year old women; beyond playing at the same approaches to advertisement as its stale competitors, EOS made sure to utilize influencer marketing by reaching out to beauty bloggers on social media outlets and starlets like Miley Cyrus and Taylor Swift. Today, EOS’s Instagram account has nearly two million followers and more than three times that amount of on its official Facebook page. Lastly, EOS has engaged in synergistic salesmanship like a co-production with Keds shoes, a holiday collection featuring Rachael Roy and an Alice in Wonderland-themed venture with Disney. Visit evolutionofsmooth.com for more information.

Product Links:

http://www.racked.com/2014/10/31/7571165/eos-lip-balm

http://www.ebay.com/bhp/eos-lip-balm