'Miss A' is the name of a disruptive beauty retailer that sells a variety of cosmetic products online for a flat fee of $1. While the brand does not invest in marketing or advertising, it does get manufacturers to make them specific beauty items. As such, Miss A is able to pass on the savings to consumers, even promising "zero mark-up" in some cases.
Several new start-ups are challenging the notion that consumers should have to pay more for certain items by introducing low-cost product collections. For example, Brandless offers a variety of consumer goods for just $3, while Beauty Pie sells makeup products at factory costs. To offer consumers the best prices possible, these kinds of companies are downplaying packaging, branding and marketing.
$1 Cosmetic Retailers
'Miss A' Offers All Beauty Products on Its Site for Just One Dollar
Trend Themes
1. $1 Beauty Products - Disruptive innovation opportunity for retailers to offer low-cost cosmetic products with no mark-up by collaborating with manufacturers.
2. Minimalist Packaging - Disruptive innovation opportunity for companies to reduce packaging, branding, and marketing costs for low-cost consumer goods.
3. Direct-to-consumer Sales - Disruptive innovation opportunity for retailers to sell their products directly to consumers in order to maintain minimal costs and offer low-priced consumer goods.
Industry Implications
1. Cosmetics - Cosmetics retailers can experiment with the $1 beauty product model to offer affordable yet quality merchandise to consumers.
2. Consumer Goods - Companies can adopt minimalist product packaging and branding to cut down costs and offer competitively priced goods in the market.
3. E-commerce - Retailers can leverage the direct-to-consumer sales route to reduce operational costs and offer cost-effective products on their e-commerce platform.