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Welcome to the Json and Scott show this episode is being recorded live from grocery shop in Sunny Las Vegas on September 30th 2025,
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I'm your host Jason retail gee Goldberg and as usual I'm here in person with my co-host Scott Wingo.
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Hey Jason welcome back Jason Scott show listeners and
welcome to a live episode I checked and this is the first live episode we've done in 3 years believe it or not and I think we were at a shop talk together.
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Yeah time time flat you know we're coming up on our 10 year anniversary and we used to do these live at these events all the time and then Scott got too busy and fancy to come to the events anymore so welcome back Scott.
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I'm back I'm back in e-commerce
and we're excited to have a live guests with us here on the show for the first time is ECT
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Chopra she is the cdio of Elf Beauty and I was telling her I have 2 dollars 26 and 18 and they were you have made me a rock star.
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No there you go.
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And they had very specific questions I I knew we will not be asking around various things so.
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Uh I'm happy to do a Q&A with them.
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You have huge fans out in my house.
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Thank you for having me.
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And Scott's trying to pretend like it's on behalf of his daughters but he's really a fanboy.
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I'm sure I'm sure.
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I love new brands and love talking to them so excited to have you on the show.
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Yeah well thank you for having me.
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Yeah and fun fact ecta and I are going to do a a panel at grocery shop tomorrow.
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That's right.
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And so so that will have already happened probably when listeners are listening to this so if you read that it was by far the best panel in the history of grocery shop you you are in on the origin story.
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There you go this is how how it all started.
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And the big big thing to watch for is Jason changes his socks based on the mood of the panel so earlier today he was wearing his uh yeah this is an odd.
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Oh my is
whoa okay
there you go and tomorrow.
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During his Sam's Club socks so I don't know if you had any elf socks on you he will wear those tomorrow so.
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Oh shhh I I couldn't get it I'm so sorry.
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Dang it all right.
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Yeah I am I'm not above pandering and.
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Uh I I do have a lip gloss though a lemon.
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Oh yeah.
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11 lip gloss.
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I I may or may not be you know wearing uh an elf sunscreen right now that my wife.
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Ah that there you go.
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And if we hear Jason's lips are particularly shiny and glossy then we know what it was.
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There you go.
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Yeah yeah uh so active before we jump into it I I have a feeling listeners have already stalked you on LinkedIn,
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but you know you you have a senior role for 1 of the the coolest digital brands out there like how does 1 come to that sort of role can you tell us a little bit about how you you came to your path.
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Yeah I mean I think coming to elf was really sort of
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I would say very lucky because I was just in the middle of looking for a new job I had my career where I worked for women's fashion accessories
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private equity and then you know I took a foundation job because I was going to start my family and boy oh boy it was so slow and then,
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I was like I'm screaming.
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Committee meetings.
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Oh my God I wanted to like go back to retail consumer goods somewhere where I it's really chaotic and reached out to my investor community and they recommended somebody recommended else and,
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you know that was 10 years ago.
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Uh well you say lucky for you I would say lucky for Elf
but did they sell you a bill of goods did they tell you it's a oh beauty is a super simple thing it never changes it just you figure out an equation and you just run it for 10 years right.
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Yeah when I came it was like basically was the year 2016 January 4th is when I started and that was the year when they went public in September and it was brought in to like really sort of set them up from a technology perspective,
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and it was just I fell in love day 1 like crazy chaos everyone's working just just an amazing brand and just the origin is just amazing so.
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Very cool now I have a feeling a lot of our listeners are very familiar with elf but for for a few of Scott's fans who may not be um
would can you kind of give us the the the bullet on on elf and and where you guys sit in the Echo System.
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So I would say we are a bold disruptor with a kind heart that's sort of how we what our Persona is and if I think about
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elf started 2004 and that's the year when Facebook actually
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you know launched so our origin story started with the shama brothers who started selling 1 dollar makeup online and digital was e-commerce at the at that time but
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to sell makeup for $1 online at that moment in time was very disruptive,
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so this that's where sort of the disruption is in our DNA testing and learning is in our DNA we always like to say is Zips first,
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phase first because you know we always want to be the first to meet our community wherever they're going our of course we are multi-generational as you said 18 years old and 27 years old,
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but we also have I met somebody in Barcelona on my vacation and she was in her 60s and she said oh my God I fell in love with elf because my daughter loved elf and I started using the same makeup so it truly is a multi-generational
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brand.
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That's amazing and just to ground folks 2004 is 2 years before Mr jobs like went into his back pocket and goes oh and 1 more 1 more thing.
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1 more thing just just 1 little thing.
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Yeah and I've always read the forward facing camera which came 4 years later from the iPhone launched somewhere in there it like totally changed the makeup game.
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Oh yes of course
yeah there you go.
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Would take selfies so yeah huge game changer so it's great time to be in the makeup game
it is.
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Perfect for Instagram and you know yeah there you go the filters.
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Yeah yeah um and so I'm assuming that day 1 the the $1 Cosmetics that was predominantly a direct to consumer.
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That is correct that is correct.
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Play but that's not your situation today today you're you're really an omni Channel.
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We are we are 20 80% almost our business is still distribution and international and the rest 20
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direct to Consumer what has changed is that in the past 5 years we've gone from Elf Cosmetics to now
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where of Cosmetics elf skin well people key soul care which is our Alicia Keys Brand natorium and now Road skin with Haley Weaver
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so our portfolio has just grown so the umbrella is off Beauty.
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Jason is Hailey Bieber's biggest fan.
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I really there there you go and there you go.
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Whoa nice he's all about the road.
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Rude.
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Is for listeners that can't see aren't watching the video version of,
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um uh ELCA has a super cool iPhone case uh that is actually holding.
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I thought it was a battery at first.
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No
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It is the lip gloss holder.
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That is right.
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Web bomb in in the case so it is always ready which I I have.
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Jason super jelly.
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There.
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Yeah yeah yeah yeah I've I've figured out when my wife's birthday present now.
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There you go.
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Honey I hope you're not I know you don't listen to my podcast so you're fine it's fine it won't split.
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Maybe today she will.
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Yeah well more likely like her friends listening to the podcast will out me to her,
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uh I I tried to convince her that she should really get a gaming laptop for her her birthday but that didn't seem like she was very excited about it either yeah.
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That that's 1 of those that sounds like a gift more for you women are very good at sniffing that out.
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Yeah
yeah.
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If only there was some way that the computers could get smart enough that you could just kind of have a dialogue with it and it could suggest a birthday gift.
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Uh there there you go Chad GPT right.
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Um and so so you think about your tenure career and we're we're you know at the launch of Facebook Instagram's not a thing yet we're,
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were predating the iPhone,
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and today I really think of beauty as sort of a digital leader that's often been a first mover and and you guys in particular are usually 1 of the very first Brands out with,
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all these sort of new touch points
and so I'm I'm sort of curious like,
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is that just part of the brand that whenever there's something new you feel like you have to be there and maybe some of them will hit some of them will miss or or like do you now have data that that's,
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where your your customers are and you need to meet her where she is like what goes into the calculus of you know as we record this ched gbt announced instant Commerce 2 days ago,
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so I imagine if there there probably already were a bunch of conversations about if and how you guys would lean into something like that like.
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Absolutely I would say first and foremost it's less about being on a platform but more about where is our community and making sure,
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wherever our community goes we are there for them so it started with the Tik Tok,
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you know almost like 5 years ago and there was it was just a thing and then we knew we wanted to lean in and it starts with hey let's just test and learn we don't know anything we're just going to jump in
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and then we got signals and the signals told us our community
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is starting to move there so then we partnered with movers and shakers which is now part of stag wall basically and what we ended up doing was they brought their expert
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expertise on Tik Tok shop the New Gen Z they need a platform really well and we leaned in and we had the biggest campaign on Tik Tok from a beauty perspective
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at that moment so I would say that it's all about going with our community is,
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we know it's not day 1 we might not know anything but once we get signals we lean in.
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Are you seeing them on chat chat just like yeah I don't need to know any signals but.
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100% yeah.
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Cuz all the data I look at the survey data says you know like 800 million active users half are doing some kind of shopping but then if you look at the demographics it skews um largely younger and and kind of into that demographic sweet spot for you guys.
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Exactly I mean even if like fun fact I mean I'm a lifelong learner and recently I've been spending a lot of time with like house searches changing is our content showing up on search as we
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had a brief discussion about AEO SEO Geo right
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all of that is changing so I'm really grateful to have an amazing team they've been doing this work for almost a year now
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all our content we're trying to get it ready so it is
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showing up on chat gbt on perplexity and all the new you know AI engine so we we do try to stay ahead
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because we know our community is going over there it's a lot of work and it's just at the beginning and the fun fact that I learned was an average search is like,
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6 words right it could be show me something right on Google right like it it would be very simple but if you go to chat gbt average is 23 words,
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I am this tone I want this ingredient I want something in you know for skin or I want a routine so imagine the amount of content Supply changing
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need it is incredible so it is a lot of work that we started to do but it's a lot of work ahead that we still have to do.
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As a manager you've got these things that are not changing fast and then things that are changing fast I imagine even on the product the the physical product side you have that too,
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how do you manage that is there 2 teams that manage that or do you have like an incubator piece and then a,
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you know this is a platform that's not going to change how how do you manage that those 2 different speeds.
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Yeah I would say that elf speed is a tagline everybody wears proudly,
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because you know if I compare ourselves to like the big you know sort of Beauty Brands and so forth,
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they have a lot of people they have the muscle power we are almost 1.5 billion dollars with 650 people,
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we are very productive with what we do everybody has to have the test and learn culture
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Need for Speed is part of our culture and doing that as quickly as we can with no red tape is part of our culture so I would say that
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throughout the organization of speed is a thing,
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and so it's not 2 different things everyone when we know that we have big campaigns we all come together and if we have 1 thing that we say is 1 Team 1 dream,
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people say it as a cliche I say we do it we do it loud and proud in the organization.
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Do you do you actually think that that your your size which you're obviously not small,
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but your your size for the the amount of business you do is a is a potential advantage that you you you have less sort of institutional silos you have less innovators dilemma and I imagine in some of these
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these bigger more established companies that have been around for decades that
jumping on on these new opportunities is more challenging.
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100% And I think that is 1 of our superpowers and it starts from the top our CEO tangam mean his whole thing is we,
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we no matter how big we get we have to be able to maintain our it's day 1,
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and there's a word that are my CMO always sort of talks about its social and it's a Japanese word it is about like
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day 1 like how do you start you're like a lifelong Learner in in literal meaning so for us that is something that we start from the top,
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and really sort of embedded in our culture through and through.
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Yeah I feel like there's some bookstore in the Pacific Northwest that I feel like is into that whole day 1 day 1 culture too
yeah I don't I don't.
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Sadly they're not they're not really.
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Ivan not anymore.
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There's something that like when you when you get to 2 or 3 trillion it kind of breaks down.
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I'm I'm sure.
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We call that a high class problem.
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Yeah and that is something that you know if you talked about what keeps us up is like how do you maintain that culture because the bigger you get,
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now we are expanding in international we went from just being in US offices to we have an office in London we have an office in India we have an office in China so as the culture scales,
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and you know your company scales how do you like maintain that
in your DNA
it's a challenge.
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For sure so you you already breached the topic of of AI and obviously Scott's chomping at the bit because he he thinks it's going to be a thing I the jury's out.
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In a skeptical just like he he was about Tik Tok and everything else.
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Yeah and and for sure retail media Networks,
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there have been feuds on the podcast about.
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I have I've heard them I've heard them yes yes not news you guys are the ogs.
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I I yes what we lack in insight and value we we make up for an age,
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but so I actually want to go back in time a little bit before the,
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at the topic of AI was the dower like way back in the day there was this thing called like social and influencer,
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um which obvious I'm being sarcastic but is obviously super important in in the beauty space so you you mentioned Tik Tok shop who also is going to be on our panel tomorrow so that'll be.
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Ah there you go.
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Uh but before they even did Commerce
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I would have argued that like it would the the Advent of these social media networks and and in the United States at least in particular Tik Tok have been super important because the I think about 2006,
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or 2004 rather mom is taking her daughter to Macy's and they're having their first cosmetic experience and they're discovering those cosmetics,
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at that that vendor provided display in Macy's um,
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I'm not going to be too too mean but like not a lot less people are going to Macy's to discover cosmetics,
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and my hypothesis is people are probably not discovering l,
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the first time at that shelf that before they ever get to the store they already know the elf is what they're looking for because their favorite micro influencers have already talked about it on on the,
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Tik Tok so and and you guys were were an early sort of mover in in that space and I imagine it didn't happen by accident like did you like was that something that you had to evangelize for people to really sort of
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lean in and I I can imagine like everybody's like oh man it's it's these celebrities we have.
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Yeah.
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Hire all these celebrities and and you guys really you know we're very successful at building an army of of influential people that weren't necessarily all celebrities.
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Yeah I would say that when we did the campaign there were many celebrities that did our hashtag song but we didn't pay them,
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there is a virality that comes with Tik Tok shop and I was doing more than influencer it's the content creators it's the you know somebody who's,
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first it was like it's for young people know I'm on Tik Tok and by the way I have 32 1,000 followers I'm no way a gen Z or a millennial but I think.
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So it is it is a platform that brings a culture which moves at speed of swipe to life and,
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it is constantly changing and now shop has already changed it in many ways the accessibility and that impulse buy you know,
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and even the different types of creators is it live is it you know you're doing live shopping are you doing engagement what are you doing and the type of creators that are showing up,
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authenticity is what really really is important and I do think that,
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it's also blurring the lines between Affiliates and commissions that you use to pay and so forth so
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Tik Tok has changed this whole landscape altogether and and for us it's now how do you sort of adapt to this Creator economy and I think that's,
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what we call connected Commerce now in many ways is it's not just like what happens there but the Halo impact that happens to the full ecosystem.
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Yeah and what's been interesting to me is here here in the west the that that Creator economy has been super important and that's where the,
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the demand the discovery was happening and that's where the desire was happening early on in in China commerce was also happening,
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not so much here right like there were all these early you know Facebook Shops and and all of these different pilots and you know there was all these these interesting debates like gosh,
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China just ahead of us and it's a time machine and it's going to get it opted here or is,
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fundamental differences in the in the markets but then you've mentioned Tik Tok shop a couple times like in my mind Tik Tok shop was really the first social platform to sort of,
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very successfully break through in that,
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and really kind of shorten that cycle from from desire to fulfillment because so many people are buying,
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and I'm I'm curious do you like in your mind is there a is there an obvious reason like what did Tik Tok shop do to sort of unlock that that Commerce where a lot of their their predecessors had not been successful.
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I would say it comes down to because it started as not shopping right it's it it was influencing shopping but it wasn't shopping
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because we were the first Enterprise brand to integrate with Tik Tok shop as well so I would say that they really fixed
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they they fixed the plumbing,
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I call myself plumber sometimes because there's pipes that if they're not connected and your consumer experience is fragmented they're not going to come that's why I don't think Instagram shop could ever do what Tik Tok shop,
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and that's because they really focused on these authentic connections building that connection authentically with the consumer but then ensuring that,
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they didn't didn't just launched shop you know sort of in a
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haphazard way it was very well thought out there is a platform for creators there's a platform for the brands how the checkout happens they take every single thing into account,
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the very open to doing unique things for Unique Brands so I think it's a lot about how much thought that they have put,
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into the platform that's why I think they they're more successful than any other Commerce platform.
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Yeah yeah and I I do have a hypothesis that it had to be Brands like you that that would have been the first movers because you think about it you know the,
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the more established cosmetic brand of that time we're not direct to Consumer right like they were all wholesale Brands and,
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the they were they were investing in Tik Tok as a as a brand platform and as a media channel um but then suddenly when this new thing Tik Tok shop you know arrived suddenly you needed,
00:21:25.797 --> 00:21:30.664
a fulfillment arm and you needed to do new complicated things like set a price and.
00:21:30.364 --> 00:21:37.220
Or partner with retailer and they weren't really into that you know they were like I just want to sell on my site I don't want to sell on Tik Tok I want the traffic.
00:21:37.173 --> 00:21:44.371
And what you know people still underestimate the Hilo impact of Tik Tok on the broader ecosystem,
00:21:44.660 --> 00:21:50.993
it's that consumer that sees a video and wants an impel impulse Buy,
00:21:51.240 --> 00:22:00.127
then they want to they love altar they want to use their Awards and some product launches in Alta like there's a big influence that comes from there.
00:22:00.157 --> 00:22:04.988
Oh I totally agree and I actually think people underestimate the value of Tik Tok shop because they,
00:22:05.211 --> 00:22:16.297
because it does have transactions they look at their transaction volume and they say well the ROI is the the net income on on those transactions and that is absolutely a a major contributor,
00:22:17.073 --> 00:22:29.145
all of those those Tik Tok shop Impressions like I you know for every 1 of those that results in a transaction I'm sure 10 of those result in a consumer in an aisle at,
00:22:29.818 --> 00:22:30.893
before uh yeah.
00:22:30.629 --> 00:22:40.081
We see those spikes every time something goes viral on Tik Tok shop for us we see this bike not just in our direct to Consumer but overall,
00:22:40.136 --> 00:22:42.695
that week is amazing
00:22:42.593 --> 00:22:55.723
so I do think that that is a big big factor and how that changes with the algorithm and you know sort of what's happening with the company but I I think it's still a major influence on the consumers shopping Behavior.
00:22:56.456 --> 00:23:02.249
You guys are selling so many places do you spend a lot of time thinking about attribution because I imagine,
00:23:02.964 --> 00:23:14.976
so so I'm of the the the world that it's just like unknowable so so you just kind of have to look at big trends like spikes and things Jason believes you can have a CDP and plug it to a thing and track everybody.
00:23:15.884 --> 00:23:17.998
As per usual Scott Wilding this character.
00:23:19.796 --> 00:23:30.792
I like to put words in the mouth but uh there are a set of people which may or may not include Json that think you can spend enough time and get 90% of the way there and that gives you where do you guys fall on that Spectrum.
00:23:30.774 --> 00:23:44.685
I would say that you know we do have a CDP
we also have a very Omni Channel loyalty program we don't care where you buy as long as we can maintain that relationship we have almost 6 million members,
00:23:44.967 --> 00:23:55.243
they can shop anywhere they can scan their receipt and they can reward however they want they can get venmo card they can get you dollars they can get PayPal they can get Amazon card.
00:23:54.943 --> 00:23:57.700
So I can double dip for all all you folks listening.
00:23:58.428 --> 00:24:03.337
Exactly so for us it's really important that,
00:24:03.487 --> 00:24:10.073
you know we don't want to restrict our consumer we want to give them options and then we want them to give give them a reason,
00:24:10.212 --> 00:24:22.590
to come to our site and that could be experiences it could be special launches it could be what we do with beauty Squad it could be special products that we drop and things like that so I would say that we
00:24:22.536 --> 00:24:27.559
probably you know we have to be mindful of the retailers needs wants and desires,
00:24:27.620 --> 00:24:32.667
but that's why we try to take a neutral stand of you know our consumers,
00:24:33.034 --> 00:24:39.698
all the options that they want and those options are just increasing with what's happening with shopping in general
so.
00:24:39.800 --> 00:24:48.020
And uh feel free not to answer this do you guys sell directly on Amazon in like a third-party kind of model or is that all a first-party kind of thing or it's not on Amazon at all.
00:24:47.840 --> 00:25:01.667
And no we are on Amazon we are big on Amazon so I would say that definitely first Party 1 p and this relationship goes back since the origin when we started selling
00:25:01.601 --> 00:25:10.909
but around 4 years ago we really Amazon is everyone all the retailers don't you know really particularly care,
00:25:11.252 --> 00:25:16.107
appreciate and uh so it also took a lot of
00:25:16.035 --> 00:25:28.966
organizational change management to gain PE get people's Buy in tell them via Amazon was important and what we can gain from it and when we saw the numbers with the focus well they've been,
00:25:29.231 --> 00:25:31.274
skyrocketing so.
00:25:31.785 --> 00:25:36.093
Yeah so I feel like Scott's been very patient and chomping at the bit on the on the AI.
00:25:35.793 --> 00:25:37.114
AI topic yes.
00:25:37.199 --> 00:25:48.441
Yeah so so you've gone through these multiple iterations and we we did social influencer and then we did social commerce and you you guys basically I won't say or I'll say it for you you dominated all those platforms,
00:25:48.760 --> 00:26:00.844
um and so now we have the robots and Scott is of the opinion that is going to put all of those old things out of business that we won't have websites anymore and uh we won't have stores anymore and it's.
00:26:00.995 --> 00:26:04.694
Alright Mama yeah.
00:26:03.248 --> 00:26:06.931
Scot wingo and Marc Andre and a robot selling everything.
00:26:05.930 --> 00:26:07.791
There you go there you go there you go.
00:26:06.908 --> 00:26:20.283
And so 1 1 thing that's interesting about AI is there's kind of 3 buckets that people are investing in there's there's kind of infrastructure so the creation of your products and you guys are a lean team so I imagine you're already using it,
00:26:20.566 --> 00:26:26.954
augment that that that's like a Hallmark of that and so there's like efficiency pricing and back office kind of.
00:26:26.678 --> 00:26:27.831
Mhm mhm.
00:26:27.597 --> 00:26:31.827
And then there's kind of things I call below the homepage so better search.
00:26:30.067 --> 00:26:32.356
Yeah
mhm.
00:26:32.056 --> 00:26:44.506
Recommendations maybe make the Loyalty program smarter then there's the stuff above the homepage which is the channels and you know should you know how do you optimize your products on the answer engines what do you guys you know,
00:26:44.747 --> 00:26:50.593
what what can you say is going on there and and what are some interesting things you think about and all those buckets.
00:26:50.504 --> 00:26:58.669
I would say the first 1 that we already spoke about like search how search is changing and how you show up on these new newer platforms,
00:26:59.018 --> 00:27:05.255
content content content so I would say our number 1 Focus has been very much around that,
00:27:05.430 --> 00:27:16.216
the second bucket is around with the existing platforms that are coming out with AI capabilities we are turning them on to just learn because that content then needs a supply chain,