A Shopping Shift
Online retailer Oddity is on a mission to change the way you shop for beauty products.
The direct-to-consumer company’s digital platform currently offers selections from two brands, Spoiled Child and Il Makiage. Social media users might recognize the latter, given the makeup line’s Instagram (META) and TikTok ads are virtually inescapable.
It would appear the social media marketing push has paid off. Executives say Oddity sales have doubled annually since their 2018 launch, bringing gross sales up to $380 million in 2022. Now, after a series of hiring and investment rounds, experts predict the Tel Aviv-based company is planning an IPO.
Although Oddity showcases health and beauty solutions, at its core, it is a technology company. Of its employee base, 40% are knowledge workers — and 0% hail from the beauty or wellness industry.
The company uses technology to identify consumers’ pain points and then develop cosmetic solutions specifically for them. Using sophisticated AI-powered technology, developed in part by a former Israeli defense official, Oddity analyzes skin and hair tone to customize recommendations for its customers. It can even map out facial blood flow.
A Perfect Match
The Il Makiage label’s marketing hook — and much of its success — is based on the claim that it can help each customer identify the “perfect” foundation for their skin type and tone. The process includes a questionnaire and analysis of a photo of the customer. The company claims it has a 90% success rate.
For customers frustrated with inconveniences of in-person shopping, Oddity’s solution could be appealing. And for investors, the prospect of an IPO could be exciting as well, particularly as AI tech across industries increases in popularity.
However, new technology is often a double-edged sword. Some caution not to get too comfortable with the service. The concept could ultimately prove to be a fad that comes and goes — along with any potential product expansion, or profits.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.