Walmart Inc.’s latest bid for the Gen Z consumer comes from one of beauty’s biggest manufacturers.
P&G‘s newest brand, DermaGeek, is targeting the largest and youngest set of beauty shoppers, and starting with the world’s largest retailer. Prices range from $10.99 to $26.99 for its six debut stock keeping units, which include a cleanser, a moisturizer with SPF, three serums and a night cream.
Intended for the savvier TikTok set, the line is gender-inclusive, PETA-certified cruelty free and vegan, and is positioned heavily based on their active ingredients.
“It’s all about giving consumers access to top recommended ingredients for a fraction of the price,” said Eric Rose, senior brand director at DermaGeek. “We’re free of what we call the no-no list, which includes fragrances, parabens, phthalates and synthetic dyes.”
“It’s targeted toward the Gen Z consumer,” Rose added. “We designed it for what we call the Gen Z ‘skin-tellectual.’ They’re digitally fluent, they’re always connected. They’ve done their research, they know the ingredients they want to put on their skin, and then equally as important, they know the ingredients they don’t want to put on their skin.”
The market interest in more clinical skin care, Rose said, is still ascending. “This consumer is going to be the skin care consumer that’s educated on ingredients and benefits but desires transparency. We’ve seen some significant growth in the derm segment of skin care, and at the same time, we’ve really seen this shift in how consumers are getting their information on skin care and what’s right for them.”
As previously reported by WWD, brands that are clinical in feel with straightforward formulations tend to perform well across social media, such as The Ordinary and CeraVe. Strategically, the stakes are high: industry sources estimate the brand to surpass $20 million in retail sales for its first year on the market, although Rose did not comment on the projection.
Rose credited clinical skin care’s resurgence across mass and prestige markets to the pandemic. “Our data says 1 billion doctors’ appointments were canceled in 2020, and that obviously impacted the segment,” he said. “Skin care searches are up more than 200 percent, and 75 percent of consumers are going to social media for skin care advice. What that has driven is the ability to connect directly with skin doctors on TikTok, but it has also driven a real demand for transparency.”
The brand’s TikTok campaign is integral to its strategy, part of which includes an arsenal of dermatologists it is dubbing “real talk derms.” The partners “understand that consumers have a desire for top dermatologist-recommended ingredients, but they may not want to spend $200 for a dropper of retinol,” Rose said.
For more from WWD.com, see:
Walmart’s Wellness Agenda
P&G Shares Gain After Another Sales Jump, CEO News
Bubble, Skin Care for the Gen Z Set, Goes Into Walmart