Beauty Insiders Offer Brand Renovation Tips For Gregg Renfrew’s Beautycounter Rebuild

Gregg Renfrew, who launched Beautycounter in 2013, has bought the clean beauty direct seller out of foreclosure and plans to create a new entity with its name and assets. The Carlyle Group, the private equity firm that acquired a majority stake in Beautycounter in 2021, when the brand was valued at $1 billion, said in a statement that it exited the business after it lost ground for three years.

As Renfrew readies Beautycounter for a reemergence, for the latest edition of our ongoing series posing questions relevant to indie beauty, we asked 17 beauty entrepreneurs, executives and consultants the following questions: If she asked you for advice, what would you tell Renfrew about reimagining Beautycounter in a way that’s relevant to consumers today?

Michelle Yeh Founder, Hygiene Hero

In my 30 years in the beauty space working in the direct sales industry as well as the beauty retail sector, I've never seen a successful case of comingling a direct salesforce and retail channels.

Body Shop tried that. Avon tried that. Both failed miserably. I'm not sure why the leadership at Beautycounter under the PE's ownership thought they could succeed with that business model.  Those attempts were often led by executives who didn't understand the essence of direct selling and the mindset of a direct salesforce.

Having retail presence is often alluring because it seems to be a good way to elevate a direct-selling company's image, but in reality it is completely off-putting for the salesforce. I think the only way for retail and direct salesforce (under the same brand name) to coexist is to treat retail presence as a marketing expense for brand exposure and allows a price advantage for direct sales channels to foster trust with the salesforce. But that is unlikely to be sustainable because you could spend the dollars on supporting the beauty consultants and drive sales much more efficiently.

If I were Gregg, I would forget about retail channels completely and focus my energy on helping the salesforce optimize their efficiency, making products easier to sell, driving repeat purchases and optimizing their income in the most efficient way. Those are the things that the field wants and needs the most.

Especially having gone through so much turmoil under the PE's ownership, the field needs serious healing. Having a laser focus on supporting the field is going to make the most impact on the top and bottom line for Beautycounter in the next few years.

Ashlee Posner Founder, State of Change and Lucent Labs

There has been a significant evolution in the “clean” beauty landscape since 2013. Gregg stands out as a true pioneer, and undoubtedly the business has flourished with a passionate community and a strong mission from its inception.

However, being “clean" is no longer enough to distinguish a brand. It has become the baseline expectation.

Currently, their community is made up of avid “low-tox/no-tox” consumers, presenting an opportunity to expand the brand's appeal to a broader audience, who now understands their positioning. This shift will force a focus on marketing and the creation of a distinct brand identity in a crowded market of clean brands.

Moving forward, I can see differentiating themselves by delving deeper into ingredient traceability, going beyond safety to ensure transparency and accountability, exploring innovative packaging materials and expanding retail opportunities can further enhance the brand's appeal.

I would imagine limited-edition products and collaborations are on the horizon to bring excitement and exclusivity into their offerings, appealing to both existing and new customers. Gregg has the chance to propel Beautycounter into the mainstream while staying true to its founding principles, which I strongly support!

Lisa Mattam Founder and CEO, Sahajan

Beautycounter was a pioneer in the clean beauty space. The brand's positioning and clarity on the Never List combined with its best-in-class formulations and direct and accessible selling made it the giant that it became.

In a world where clean is now table stakes and differentiation are critical to emerge from the incredible options available in the clean beauty space, I would focus on the customer, the one who believed from the beginning, the one who is loyal, who much like in the early days of Beautycounter was the advocate, the influencer and the salesperson.

That kind of community was magic, and with Gregg at the helm, it's a magic she can recapture and leverage uniquely in the ever-evolving beauty climate.

RACHEL ROBERTS MATTOX Brand Developer and Strategist

When I read that Gregg Renfrew reacquired her brand from The Carlyle Group, I cheered. This is a very strategic move that presents an incredible opportunity for Beautycounter.

The way I see it, Gregg Renfrew is a modern-day Anita Roddick. She pioneered the next generation of clean beauty in 2013, launching a DTC brand in the heyday of DTC brands and built an MLM model to sit adjacent to it, creating a built-in new customer acquisition and retention loop.

Beautycounter was and is a brand built on trust. They are sustainability and transparency champions, their direct sales associates are ground-level brand advocates, and they have led the fight for safety, transparency and ethical practices with their suppliers.

My advice to Gregg, not that she needs anyone’s advice, is to double down on the values that made Beautycounter one of the most trusted names in beauty. First, I’d reimagine the MLM model and “rebrand” the concept of direct sales associates to appeal to the modern beauty consumer.

Yesterday’s sales associates are today’s content creators. Yesterday’s “home parties” are today’s pop-ups. With a fresh approach to these outdated models, the brand can create engagement that’s not overly reliant on performance marketing, or social media in general.

I also see an opportunity for the brand to open their own brick-and-mortar retail stores. Yes, this requires fresh capital and adds to the fixed costs, including leases and payroll, but vertically integrated retail stores are arguably the best way to control the brand narrative and customer experience.

In a season when beauty e-commerce is cost-prohibitive and competitive, and the prestige beauty market may be slowing down at multi-brand retailers like Ulta, company-owned retail stores offer a unique opportunity to build brand loyalty.

Finally, I’m hopeful that under Gregg’s leadership, Beautycounter will resume its commitment to end-to-end sustainability, circularity and supply chain transparency. Innovations in blockchain-powered technology are making the impossible possible, and if anyone can and should be at the forefront of this, it’s Gregg Renfrew’s Beautycounter.

MONIQUE BENOIT Founder and Chief Advisor, SoFull Creations

I would have them look at their consumer base and identify where they can be different. Clean beauty in 2013 was unique, and the selling model added a sense of prestige. However, there is a lot more competition in the clean beauty space today.

Beautycounter should identify their “it” factor in addition to clean beauty. Perhaps this is an opportunity to speak to the beauty community that is 50-plus. Whatever they land on, they will need something distinct and clear to win in this competitive market.

Lynn Power Founder and Co-Founder, Conscious Beauty Collective and Masami

I love that she's doing this. There are so many opportunities for Beautycounter. It has a strong brand name, high awareness and built-in customer base. Tapping into trends like personalization could help Beautycounter get even more traction.

I'd love to see them reinvent the "retail experience of the future" for beauty brands, incorporating treatments, experiences, events and technology into the shopping experience.

Beautycounter could also double down on education as "clean" has become so difficult to navigate. She could also create a line just for gen Z that will satisfy the cravings of younger consumers in a clean way.

LAURA BURGET Co-Founder, Three Ships

Gregg is a beauty vet, and I really admire what she's built with Beautycounter as well as the impact that she's had more broadly within the skincare space.

I would tell her to trust her gut. She's built this brand to what it is and clearly has killer instincts on what's best for the business. Don't allow yourself to be pulled into too many directions based on what you "should" do and instead listen to what your customers are telling you that they need.

However, from an outsider perspective, I think that their model of using reps to go to market is a tad outdated and leads to certain assumptions about the brand being an MLM.

I would caution her about making this a cornerstone of the new brand's identity and instead see if she can move those reps over to an affiliate model that makes more sense to today's consumer.

Allison Shimamoto Founder and CEO, Haiama Beauty

Current brand image issues aside (regarding the recent and abrupt layoffs), Beautycounter’s business model of using sales reps in cosmetics was outdated. Consumers want more control over when and where they can find their beauty products, and having to go through a rep causes too much friction to sell.

Gregg has an opportunity to create something new and turn the focus away from MLM and toward high performance clean products. But, in order to do this, Gregg and Beautycounter must take a posture of transparency and inclusivity both around their ingredients and their new business model.

RAZVAN ROMANESCU Co-Founder and CEO, Underlining

I would go slow and steady and find a sustainable economic model that can be built upon instead of focusing on doing too much too quickly all at once. Find a few top performing hero SKUs and become the leader in those.

Taking a social first strategy (Facebook/Instagram/TikTok Shop) is important as more and more social platforms are limiting organic reach to external platforms and rewarding on platform and livestream shopping.

HANA HOLECKO Co-Founder and CEO, Veriant

Gregg Renfrew is someone whose career I deeply admire. Her abundance of genius and grit coupled with her remarkable successes as a founder and leader speak volumes. While she certainly doesn’t need my advice, in this fantasy where she asks for it, I am happy to share my thoughts.

Renfrew's journey with Beautycounter reflects the challenges and complexities of leadership in a rapidly changing landscape. Her confident commitment to her vision despite the adversity that Beautycounter has recently experienced is inspiring, and I'm sure will be key in the company's rebound as, conversely, the beauty industry has seen many brands lose their plots and fail as a result.

The brand's commitment to disrupting the cosmetics industry with clean beauty products and unwavering transparency has resonated deeply with today's consumers and continuing to champion these principles will be key to staying relevant and impactful.

Embracing innovation and technology will also be pivotal in meeting the evolving needs and expectations of today's consumers. By leveraging data-driven insights to personalize the customer experience and exploring new channels for distribution and marketing, Beautycounter can continue to lead the charge in shaping the beauty industry of tomorrow.

Moreover, there is an immense opportunity for Beautycounter to further prioritize sustainability, particularly in product packaging. I've long admired Beautycounter's rigorous standards and commitment to quality, which were exemplified by the meticulous product development process I once heard about from a shared vendor. Attention to detail like this not only ensures product quality, but also underscores the brand's dedication to its mission.

Additionally, I'm curious to see how or if Beautycounter will utilize its former network of beauty advocates and the direct-sales segment of their business model. As Renfrew takes on the challenge of leading Beautycounter into its next chapter, I'm eagerly following along, ready to see what’s next for the brand and Renfrew.

There will be a lot of potential for learning for myself and for our industry as a whole, as Beautycounter continues to push boundaries and inspire positive change. As I share Renfrew's passion for safe and effective beauty products, transparency, and inclusivity, I am hopeful for her continued success.

ADELINE KOH Founder and CEO, Sabbatical Beauty

My two pieces of advice:

1). Beautycounter’s original value premise came from being one of the leaders of the “clean” beauty movement. They were one of the first to create a “never” list as part of their brand identity.

The perception of “clean,” however, grows ever more murky as the Clean at Sephora lawsuit shows. Given Beautycounter’s history, I would advise building more perceived value to customers by providing more education and clarity around the complexity of the concept of “clean” rather than setting down simplistic rules that everyone should follow.

More finely tuned education will resonate well with younger customers who grew up observing these debates, understand the complexity of these claims, and who are hungry to learn more.

2). Embrace more openness and transparency. These qualities resonate very strongly with today’s consumer.

Moving towards more openness and transparency will also help in dealing with the aftermath of criticism of how Beautycounter has handled the shutting down of its brand advocate arm.

Today’s consumer generally demands more accountability, especially for behemoth companies who wield a lot of industry influence.

Ada Polla CEO, Alchimie Forever

I admire Gregg Renfrew for the full-circle journey she has been with Beautycounter: launching it, selling it and buying it back out of foreclosure. Somehow this type of story is a sign of the times (think Larissa Thompson and Onda Beauty, for example).

As Gregg reimagines her brand, I would think about the following:

-Clean beauty is now in a much different place than it was in 2013, table stakes as opposed to a true differentiator. What does that mean for Beautycounter’s brand positioning?

-Consumers are looking for simplicity in their lives and their beauty routines. What does that mean for Beautycounter’s product assortment?

-Most importantly, I would ask Gregg about her end goal with this brand. She launched it, grew it and sold it once already. What is the next step? Is she rebuilding Beautycounter to sell it once again? How will this chapter end differently than the last chapter?

LOUISE BUTLER Founder and President, Ignite Beauty Strategy

My advice to Gregg would be to stay laser-focused on her vision and surround herself with passionate people that can execute on that vision. One of my all-time favorite quotes is from Thomas Edision, and it is, “Vision without execution is hallucination.” I have been privileged to work with some amazing founders, and the common character trait was their relentless focus and drive to achieve their vision.

Beautycounter was a disrupter in the industry in both the brand attributes, making clean skincare modern and chic, and in the business model as a direct “social” seller.

In the last 13 years since the launch, there is a lot of competition in the clean skin care space, but I believe that Gregg can use her authority to provide real education about her formulation and packaging decisions and their environmental impact.

Data shows that gen Z and millennial consumers are interested in how their purchasing decisions impact the health of the environment. That being said, we also know that efficacy is key in skin care, so clinical and consumer perception testing would be an investment that I would make in relaunching Beautycounter.

Corey Huggins Founder and CEO, Ready to Beauty

First, remember the time we live in and be multiculturally diverse and inclusive. Since 2013 the Black and brown market has come into its own and shown its economic viability.

The Black and healthy segment is very real and equally very relevant. Therefore, it should be respected. Consequently, from product assortment to consumer outreach, it is important for the new Beautycounter to address all shades and textures of beauty.

Second, being "clean" today is basically a prerequisite versus 2013. The concept has evolved to full-blown health.

Therefore, Beautycounter is going to have to have clear demarcations for what is "healthy" today and how is it a higher proposition than simply being green or clean.

KATHERINE "ANNIE" FINCH Founder, Katherine Girl

They need a POV. The selling model to survive needs retail. I know firsthand. Brands need a clear set of values that a consumer can relate too, not just an icon.

They need passion and a heart. That’s the only reason we have survived. The financial model has to be sustainable, not losing money in hopes to be purchased. Those days are over.

Mike Modula Co-Founder, Sepia

Beautycounter initially built its community and brand awareness through a multilevel marketing model, but later expanded to direct-to-consumer sales and retailer partnerships.

I believe the brand should explore refocusing on community building through the lens of a multichannel omni-distribution strategy as part of its rebirth.

The brand also has an extensive range and could probably benefit from some SKU rationalization, refining both the assortment and messaging.

MEGAN DOUGLAS Founder and Product Creator, The Organic Skin Co.

Gregg has long been an advocate for clean beauty and was a pioneer in educating beauty lovers to the potential dangers associated with using and applying potentially toxic synthetic chemicals to our face and body.

Her message remains as important and relevant today as it did when she first founded Beautycounter, but if I was to offer any advice—she almost certainly doesn't need it!—it would be that Beautycounter's messaging and stance might become broader and more holistic in nature.

In our post-COVID world, beauty consumers are more wellness-oriented and better educated than ever. Many understand now about the possible pitfalls associated with synthetics, and they are looking for alternatives in increasing numbers. But, as part of that journey, they want to understand why they should adopt new and different products.

For most, the first question they will ask is, “Will this product improve my skin and help me look better?” But, unlike a generation ago, it's not the only question they will ask.

Today, the beauty consumer also wants to know whether a clean beauty brand acts in an authentic and ethical space. Is it caring for and giving back to the environment? Is it minimizing its plastic footprint?

Is it certified with trustworthy supply chains and ethical workplace practices? Is it a stand for a vision of beauty which allows for individual expression and inclusiveness, rather than conforming to conventional and damaging beauty ideals?

At The Organic Skin Co., we have a saying that encompasses our approach to all these questions: “Natural Beauty, 360°.” We constantly strive to ensure we're not simply delivering a great product, but also one that helps meet all the other needs and expectations of our customers.

If you have a question you’d like Beauty Independent to ask beauty entrepreneurs, executives and consultants, please send it to editor@beautyindependent.com.