Like other direct-to-consumer startup companies such as Dollar Shave Club and Warby Parker, Glossier also offers its customers extremely low prices thanks to

its direct-to-consumer business model. This model enables the company to avoid the markups associated with placing their products in department stores and prominent beauty chains like Sephora. In the past, Glossier had opened just three physical locations (New York, Los Angeles, and London) and used pop-up shops to build brand awareness without the overhead costs required to maintain a retail space over the long term. However, in 2020, in the wake of the Covid-19 pandemic, it closed its physical stores to focus solely on its online channel.

Glossier also uses minimalist packaging and design features that keep costs

low, though the company is looking into launching a line of higher-end products to compete with luxury beauty brands. Despite the company’s low price point, celebrities as prominent as Beyoncé have used Glossier products at events like the Grammys.

In 2022, Glossier announced that it was laying off 80 employees, with its technology team the most impacted, with Weiss admitting that Glossier had made some mistakes as it scaled its business. However, according to Weiss, the company remains committed to expansion, with plans to expand its physical retail footprint.

INSTRUCTIONS:

Read the caption above and watch the video as a team. Answer the questions in a Word document with a title page and a minimum of 100 words per question.

One person will submit the report for the group.

QUESTIONS TO ANSWER:

1. What percentage of women does Weiss suggest buy new beauty products due to peer recommendations? Do these recommendations need to be face- to-face from a friend?

2. According to Weiss, what is the core value of Glossier as a company and how does this differ from traditional beauty brands?

3. What is the price range of Glossier’s product line and how does it compare to other beauty brands?

4. Does Glossier pay celebrities to endorse their products? Why or why not?

5. What does Weiss mean when she says that Glossier’s brand and brands of the future will be “co-created”?