The Nue Co. is kicking off its global expansion strategy, starting with Sephora.
U.K.-based The Nue Co. first appeared on Sephora.com on Tuesday and will expand to stores at an undetermined time, said Jules Miller, The Nue Co. founder and CEO. Sephora will sell the brand’s ingestible supplement products, Skin Filter, Debloat and Skin Hydration, as well as its pre- and probiotics. Its topical serum, The Pill, and anti-stress functional fragrance, Forest Lungs will also be sold. The launch into Sephora is part of the continued global expansion of The Nue Co. and is fueled by a Series B investment of $25 million, led by Pamoja Capital, that occurred in July. That funding has been deployed toward scaling wholesale retail and new markets. The Nue Co. will expand to Canada, Australia and several Asian markets by end of 2022. Currently, 80% of the brand’s sales are via DTC e-commerce and driven primarily by subscriptions. Miller said the aim is to bring wholesale and DTC closer to an even split over the next 3-4 years. The Nue Co. sells through Net-a-Porter, Nordstrom and Credo Beauty, among other retailers.
“The transition that we’ve made over the last four years has been to make the brand and our products more accessible, from a price point, category and distribution perspective,” said Miller. Due to economies of scale, The Nue. Co cut prices on certain products like its immunity supplements by up to 35% in 2020. Prices now range from $25-$95.
The Nue Co. is promoting its Sephora expansion with a Sephora-specific campaign throughout September. It will include out-of-home billboards and influencer promotions on TikTok and Instagram, and a one-day mobile pop-up in Venice, Calif. The Nue Co. is working with Sephora to rework its packaging, in order to add more descriptions to its bottles that educate customers on their use-cases and benefits. That will occur by end of 2022, Miller said.
“With the aim of redefining the relationship clients have with their health, The Nue Co. delivers effective supplements and skin-care products that support both inner and outer beauty in a simplified way,” said Cindy Deily, Sephora vp of skin-care merchandising. “
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Since the outbreak of Covid-19, the supplement and wellness industries are among the few categories to outperform. According to Statista data, of U.S. adult users of dietary supplements who have changed their health and wellness regimen as of Aug. 2020, almost 60% stated that they increased their multivitamin supplement routine. More specifically, 44% added Vitamin C supplements to their routine, and 37% added Vitamin D supplements. The U.K. National Health Service even advised and dispensed Vitamin D supplements at the beginning of 2021 to people at high risk of contracting Covid-19. However, the U.S. National Institutes of Health stated that the data is insufficient to support recommendations for or against the use of any vitamin, mineral, herb or other botanical, fatty acid or dietary supplement ingredient to prevent or treat Covid-19.
But data and studies have indicated that the pandemic has taken a toll on mental health. Therefore the addition of Forest Lungs to Sephora is also notable, given that fragrances with specifics benefits beyond smelling nice is still a niche category and requires customer education. Miller said Forest Lungs, which is The Nue Co’s second functional fragrance and launched in Nov. 2020, is the brand’s best-selling product.
“The idea of being able to help people relax in the context of a traditional beauty format, like a fragrance, is something that is [resonating with] people,” she said. “[Stress] is something that is impacting most of us, particularly the younger generation. Stress and mental health in the context of beauty is something that is very new, but something we feel very comfortable doing.” The Nue Co.’s core customer demo is people in their early-20s to mid-40s, Miller said.
