Number 2

Bloomberg Businessweek Case in the News Lo71,7-2.73,7-4,7-s In Style: Beauty Brands with Social Media Cred Author: StephanieWong e than half a century ago, Revion founder director at TSG Consumer Partners innovation, Ho says. They also want what's called "authenticity Charles Rev LLC, which bought a minority stake famously son described the true in a little line called IT Cosmetics in which roughly translates into a of cosmetics makers: We 2012. The company reached sales interesting backstory from a pho- million last year, when TSG togenic founder who applies the business hone: Today the same could of $182 se sald about what the large. orchestrated its sale to 'Oral SA personal touch. At Huda Beauty established beauty houses see in for $1.2 bilion. There's a lot of founder Huda Kattan, an Iraq mall social media-driven makeup capital chasing investments,' says American who lives in Dubai, stars nies. The prospect of woo Welch. in video tutorials demonstrating the millions of millennials whoBig cosmetics companies used how to use her latest products: base their makeup and skin-care to turn up their noses at any acqui- she also answers questions from urchase decisions on online likes, sition with less than S100 million customers on her blog, beginning follows, and reviews from influenc- in annual sales, says Vennette Ho, her responses with "Hey honey." ers has sparked a feeding frenzy for a managing director at Financo. Her Instagram followers exceed small, hip brands. The 52 acquisi Now there's practically no bottom tons in the beauty and personal- because revenue can climb fast care industry last year were the nost in a decade, and some of fire. That's because millennials and 18 million. Authenticity is what makes it work,: says Claudia Soare, presi- empire her mother, Anastasia Soare, founded in 1997. Started in a rented room in if a line suddenly catches digital dent of Anastasia B hottest targets were private teens are so receptive to social the celebrity salon br media tips on what to buy, and mary factor behind as much as 50 f there's any slowdown this year, percent of their purchasing deci- ates Brow Studios in 80 Nordstrom sions, according to McKinsey&Co. ands with massive social media an bases, according to investment because word-of-mouth is the pri- bank Financo LLC Los Angeles, Anastasia now oper- stores nationwide. l only be because demand for buyout candidates outstrips sup- Anastasia Beverly Hills-a favor- These days, "consumers are y says Colin Welch, a managing gravitating to smaller brands with ite of many A-listers, including Kim 253