Innovative consumer products in beauty and wellness

From: myfirstmillionpod

The current landscape for consumer products in beauty and wellness, particularly on platforms like TikTok, presents a significant opportunity for rapid growth and profitability [00:01:20]. This environment is likened to Facebook’s early advertising days (2012-2014), where traffic and sales could be acquired very cheaply [00:02:23].

The TikTok Business Opportunity

TikTok is currently experiencing a period of immense financial opportunity, described as having “millions of dollars jammed in the app” [00:01:15]. This platform functions similarly to a successful multi-level marketing (MLM) model, where products are distributed to a network of individuals who then promote them to their communities [00:33:19].

The key to success on TikTok involves leveraging a creator-driven sales model [00:05:36]. Brands provide free product samples to affiliates, who then create content [00:11:54]. Payment for advertising only occurs after a sale is generated [00:12:00].

Creator Incentives

Companies incentivize TikTok creators through robust rewards programs based on sales targets (GMV - Gross Merchandise Value) [00:05:40]. Examples of tiered incentives include:

• $1,500 GMV: iPad [00:05:51]
• $4,000 GMV: iPhone [00:05:57]
• $15,000 GMV: All-inclusive trip to Aruba [00:06:01]
• $50,000 GMV: Rolex [00:06:07]
• $1,000,000 GMV (in a month): Condo in Miami or a Lamborghini [00:06:15]

Brands are also offering creators retainers of $10,000to$30,000 per month for content creation [00:07:10]. This strategy generates a “halo effect” where organic impressions from TikTok videos improve the performance of paid ads and boost search rankings on platforms like Amazon and Google [00:09:41].

While this approach is becoming more mainstream, it remains highly effective [00:10:30]. The success of companies utilizing this model can be substantial, with top-selling products potentially generating millions of dollars in monthly revenue [00:09:30].

Successful Product Examples & New Opportunities

Goali (Apple Cider Vinegar Gummies)

Goali grew from zero to hundreds of millions in revenue by selling apple cider vinegar (ACV) gummies, capitalizing on a health and wellness trend [00:05:24]. The gummies offer the benefits of ACV without its unpleasant taste [00:05:15]. Although the company faced financial challenges, its current owners are relaunching using the TikTok creator method [00:05:33]. This demonstrates how innovative startups in food and drink can leverage health conscious consumer trends.

GuruNanda Teeth Whitening

GuruNanda Teeth Whitening is the number one selling product on TikTok, operating on the platform’s top-used app [00:09:05]. Its revenue could be in the range of $5 million per month [00:09:30]. This highlights innovative product development and launch strategies within the beauty sector.

Proposed Ideas for TikTok Success

1. Botox Face Tape

This product targets individuals who are “Botox curious” but deterred by the high cost (thousands of dollars per treatment) or the perceived extremity of injections [00:14:02]. A video featuring a woman claiming to have replaced Botox with “Japanese face tape” garnered 5.4 million views and a quarter-million likes [00:13:07].

• Market Potential: Could achieve $50 million in top-line revenue with 15% margins within 18-24 months [00:13:36].
• Advantages: Appeals to a large demographic concerned with appearance [00:13:58], visual product with polarizing discussion points, ideal for TikTok’s format [00:13:30].
• Repeat Purchase: Face improvement is a “treadmill” that is hard to get off, ensuring repeat customers [00:43:11].

2. New Madison Reed (Hair Color)

Madison Reed built a successful empire around hair color through online-first distribution and Facebook ads, achieving $150millioninrevenueandavaluationover$500 million [00:18:18]. A “new Madison Reed” could leverage TikTok as its primary distribution channel [00:18:29].

• Angle: Focus on easier application, less mess, or less harsh chemicals [00:18:36].
• Strategy: Use creators to demonstrate product usage, build trust, and drive brand searches [00:18:51].
• Target Audience: A continuous new wave of consumers will always be interested in hair color, adapting to the media they consume [00:19:01].
• Repeat Purchase: Hair color is a consumable product that requires continuous repurchase [00:43:25].

3. Modern Self-Help Journal (e.g., Shadow Work Journal)

The “Shadow Work Journal,” a self-published book, sold over 100,000 copies primarily through TikTok [00:21:22]. TikTok videos would feature creators reacting to quotes from the journal or sharing personal insights [00:21:38].

• Strategy: Create a modern version of popular self-help books (e.g., Tony Robbins, Mark Manson) and seed it on TikTok [00:22:24].
• TikTok Hooks: Utilize popular hooks like “I gasped when I read this line” or “This book changed the way I view things” [00:21:40].
• Success: Potentially achieve best-seller status, selling millions of copies [00:22:48].

4. Candy Candles

This idea draws from the success of MLM products, which often thrive on passionate niche markets. A video of a woman making a candle resembling an Oreo smoothie in a mason jar garnered 600,000 likes [00:32:50].

• Appeal: Visually appealing, “oddly satisfying,” and offers a “sensory overload” experience (looks edible, smells good) [00:33:49].
• Market: Candle enthusiasts are highly engaged consumers [00:34:04].
• Repeat Purchase: Candles are consumables that burn down, requiring repurchase [00:43:27]. This demonstrates how innovative ideas in diverse industries can be found in unexpected places.

5. New 23andMe (DNA-based products)

23andMe, despite its recent challenges (e.g., hack, board resignations), once scaled to $300 million in annual revenue [00:34:53]. Products like AncestryDNA or food sensitivity tests based on DNA, while scientifically debatable, have a strong consumer appeal [00:35:46]. This represents a business opportunity in longevity and healthcare.

• Product Type: A mix of digital and physical product with a potential for subscription models [00:35:39].
• Strategy: Leverage TikTok’s creator network to acquire new customers for these types of products.
• Repeat Purchase: Potential for annual or semi-annual subscriptions for updated insights or new product offerings [00:36:12].

Considerations for TikTok-Native Businesses

While the potential for rapid growth is significant, some caveats exist:

• Volatile Environment: The space is “frenetic and stressful,” changing daily, akin to “sprinting on quicksand” [00:40:16].
• Sustainability: Businesses built purely on viral trends may lack long-term durability and stickiness, with potential for rapid decline [00:40:48].
• E-commerce Challenges: Many products are physical, involving supply chain management, fulfillment, and inventory risk, often with lower margins compared to digital products [00:41:15].
• Repeat Purchases: The most crucial variable for long-term success is customer repeat purchases [00:42:21]. Products that are consumables or require ongoing use (e.g., beauty treatments, candles, hair color) are ideal [00:42:36].

Despite these challenges, the ability to “get rich quick” through this approach is evident, as seen with companies like Native Deodorant, which sold for $100 million in two and a half years [00:36:29]. This requires scrappy, smart individuals willing to fully commit to finding and exploiting niche advantages in the evolving digital landscape [00:39:08]. This approach exemplifies innovative marketing strategies for startup growth and innovative ideas and problemsolving approaches in technology and business.