Amazon is poised to dominate the beauty retail landscape, projected to secure a substantial 14.5% market share by 2025. In response, numerous beauty brands are now establishing storefronts on the online giant. This year, notable names like Clinique, Kiehl’s, and Too Faced have all made their debut on Amazon, with the latest addition being the three-year-old antiaging skincare brand, Agency.
Launched in 2021, Agency operates as a sister brand to the decade-old Curology, renowned for its personalized skincare solutions offered through both prescription and over-the-counter products on a subscription basis. While Curology specializes in addressing issues like acne and hyperpigmentation, Agency focuses squarely on antiaging concerns. Following Curology’s successful Amazon launch last December with 18 non-prescription products, Agency has now followed suit with its retail expansion strategy.
This Monday marked Agency’s official entry onto Amazon, featuring its core non-prescription lineup including the Cream Oil Cleanser, Weightless Whipped Moisturizer, SilkScreen, HydroSerum Eye Stick, and Milky Hydration Concentrate. These products are priced between $18 and $52 each, offering consumers the flexibility to purchase individually on Amazon, a departure from Agency’s direct-to-consumer subscription model.
Steve Siegal, Chief Marketing and Innovation Officer for Agency and Curology, explained that extensive research guided their decision to expand onto Amazon. “Our findings showed that 40% of consumers are hesitant towards subscriptions,” Siegal noted. “Additionally, we recognized the importance of broader brand discovery beyond our DTC platform, whether through e-commerce channels or retail environments.”
This data underscored Amazon as the optimal first step in their retail partnership strategy. “To elevate Agency to the next level, we needed greater consumer visibility, especially for those not inclined to commit to subscriptions,” Siegal emphasized. “Amazon offers an excellent avenue to introduce consumers to the Agency brand.”
Siegal outlined a phased approach for Agency’s Amazon launch, initially focusing on search visibility and advertising investments. “Our strategy is evolving from crawl to walk to run,” he stated. Looking ahead, significant investments are earmarked for a forthcoming September campaign designed to disrupt the antiaging category, centered around the theme of ‘aging with agency.’ Further plans include intensified influencer collaborations and gifting initiatives to bolster storefront traffic and drive sales.
The decision to leverage Amazon reflects Agency’s strategic alignment with evolving consumer behaviors, particularly among its core demographic aged 40-54. Data from Capital One Shopping highlights a substantial shift among Gen X consumers towards online shopping, with 85% having made digital purchases in the past year. Moreover, 9.52% of Gen X shoppers are more likely than the national average to shop online weekly.
While specific revenue figures for Agency and Curology were not disclosed, a press release from October 2022 indicated significant milestones. CEO Heather Wallace reported the attainment of profitability, with revenues exceeding $200 million and a robust compound annual growth rate of 75% over the preceding five years.
In summary, Agency’s strategic expansion onto Amazon underscores a proactive approach to meet evolving consumer preferences and maximize brand visibility in the competitive beauty market landscape.
Related topics:
