Glossier seeks to recapture its shine after a tough 2021
Glossier revealed that it is laying off more than a third of its corporate workforce and outsourcing some technology functions after admitting to “some mistakes” in management strategy.
“Over the past two years, we prioritized certain strategic projects that distracted us from the laser-focus we needed to have on our core business: scaling our beauty brand,” CEO Emily Weiss wrote in an internal email first obtained by Modern Retail. “We also got ahead of ourselves on hiring. These missteps are on me.”
Launched in 2014 as an outgrowth of the Into the Gloss beauty blog, Glossier was heralded as a beauty trailblazer for breaking out without department store distribution. The direct to consumer brand was praised for its social media buzz, its Millennial-pink aesthetic, accessible and affordable products, and for foregoing heavily-caked supermodels in marketing.
Last July, Glossier was valued at $1.8 billion in a funding round.
A recent Business of Fashion article details how Glossier’s U.S. sales tumbled 26 percent in 2021 as new products failed to resonate, the pink palette became dated and inclusivity messaging became all-too common.
“When everyone says you are a ‘once-in-a-generation brand’ you could trick yourself into believing yours would be a brand that withstands the test of time,” a beauty insider told Business of Fashion. “So why change? Why evolve?”
The competitive landscape has also been altered by the emergence of Shops from Sephora inside Kohl’s and Ulta inside Target as well as beauty additions by Walmart. With its sky-high valuation likely prohibiting a sale, the report inferred Glossier may have to explore wholesale distribution.
The layoffs, affecting over 80 jobs, come as Glossier in the latter part of last year returned to physical retail with openings in Seattle, Los Angeles and London after closing its first two stores due to the pandemic. Known for its one-on-one consultations and “Instagrammable moments,” the stores often drew lines down the block, pre-pandemic.
Ms. Weiss said last year of Glossier’s return to physical retail, “At a time when the appetite for online shopping, accelerated by the pandemic, has never been stronger, the promise of immersive, real-life experiences rooted in discovery and connection is paradoxically also more resonant than ever.”
- Glossier lays off over 80 employees – Modern Retail
- Glossier lays off over 80 employees – Glossy
- How Glossier Lost Its Grip – Beauty of Fashion
- Glossier CEO Says Beauty Startup Got ‘Distracted’ and Must Cut Jobs – The Wall Street Journal
- COVID-19 Retail Updates – Glossier
- Glossier lays off over 80 employees – Glossier
- Apple-inspired Glossier opens ‘adult Disneyland’ flagship store – RetailWire
- What Went Wrong At Glossier? – Refinery 29
DISCUSSION QUESTIONS: What internal or external issues appear to be behind Glossier’s recent challenges? What steps should Glossier consider to regain the brand’s momentum given the evolving beauty space?
Shelley E. KohanAssociate Professor, Fashion Institute of Technology
Shelley E. KohanAssociate Professor, Fashion Institute of Technology
Shelley E. KohanAssociate Professor, Fashion Institute of Technology
Shelley E. KohanAssociate Professor, Fashion Institute of Technology
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3 Comments on "Glossier seeks to recapture its shine after a tough 2021"
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Principal and Founder, Retail Strategy Group
Associate Professor, Fashion Institute of Technology
Principal and Founder, Retail Strategy Group
Shelley — you are spot on! Going back to Glossier’s roots is the secret sauce. Focus on what they do best and give the customers what they want. Product is everything!