HOW TIKTOK IS HELPING TO BUILD BEAUTY BRANDS

Why TikTok allows for maximizing a company’s reach as well as impressions

With a rise in influencer marketing strategies throughout social media platforms, companies hope to release content which will have a profound impact on a specific targeted audience. TikTok’s rapid-growing popularity has made it a necessary platform for nearly all industries to advertise on as well as create content for, with the beauty industry being no exception.

Industry leaders have utilized the social network not only to reach their intended audience through the app’s individualized “For You Page”, but to maximize on the organic reach the app has to offer. In doing so and being successful, start-up beauty companies are now following suit, which has resulted in the growth of newer companies as well.

One such company who has used TikTok to their advantage is ELF, which markets affordable make-up and beauty products that are of professional quality. Being a large company, ELF already has a very high brand-awareness among consumers interested in beauty products, however they have been incredibly successful in reaching new markets on the app through the use of influencer marketing.

ELF first released their first TikTok video in March of 2020, and since then has accumulated over 290K followers in addition to more than 7.5M likes. Their secret? Releasing content with popular influencers on the app using their products. Some influencers to which they used to help grow their page include Gabby Morrison, Hyram Yarbro, Danny Ochoa, Seth Obrien and so many more.

What really propelled ELF to having one of the most influential marketing strategy however was their campaign #eyeslipsface, which drew attention from some of the biggest celebrities on the app. Their goal was to portray to the younger Generation how their brand looks to include all types of people as well as show the possibilities for new, edgy styles. The campaign was for people to post a video using ELF products and add the hashtag, and it quickly became one of the most effective campaigns that has been conducted on TikTok so far.

While ELF encouraged influencers to partake in the challenge, the hashtag quickly exploded with popularity, and since then has had more than 5 million user-generated videos in addition to 6 billion views. Celebrities and influencers looking to expand on their TikTok presence further joined the movement and released videos of their own, such as Ellen Degeneres, James Charles, Terry Crews, Jessica Alba, Patrick Starr and even the Chicago Bulls Mascot!

The final results of the campaign resulted in more than 1.5 billion impressions as well as the most user-generated videos ever in a TikTok campaign. As a result of such a successful campaign, so many other beauty-product companies have achieved success through similar means on TikTok such as Rare Beauty by Selena Gomez, Wet n Wild Beauty and also many newer emerging brands in the industry.

With such a successful campaign by ELF, it’s no wonder so many other beauty companies are using TikTok to build its brand awareness and organic reach, as the opportunities the app can provide to industry leaders as well as start-up companies is endless.

RETAIL STOCK RED HOT AS EARNINGS LOOM

Guess will report earnings on St. Patty’s Day next week

Retailer Guess?, Inc. (NYSE:GES) recently announced a marketing partnership with social media personality, Jen Selter. The social media star will be featured as the face of the Guess? Spring 2021 activewear advertising campaign in a bid to further expand the company’s brand.

GES has not just endured the pandemic, but thrived. The stock is up 216% year-over-year, with its ascending 40-day moving average containing pullbacks in the new year. Despite the channel of higher highs, a healthy 15.8% of GES’ total available float is sold short.  

Guess will step into the earnings confessional next week after the market closes on Wednesday, March 17. The fashion retailer has managed to outperform earnings expectations on three of its four latest earnings reports. For the fourth quarter of 2019, the retailer beat analyst estimates by a margin of $0.10 and reported an earnings per share (EPS) of $1.12. For the second quarter of 2020, Guess beat estimates by a margin of $0.56. In the most recent quarter reported, Guess posted an EPS of $0.58, beating expectations by $0.53.

These encouraging reports have netted post-earnings reactions of 124%, 11.6%, and 10.8%, respectively. This time around, the options market is pricing in a post-earnings move of 14.6%, regardless of direction.

Guess includes a forward dividend of $0.45, equating to a dividend yield of 1.64% and a debt total of $1.28 billion. Their balance sheet also carries $365.26 million in cash. The retail company’s revenues have fallen by roughly $275 million, adding up to $2.4 billion over the past year. Its net income has also decreased by $135 million, which a brings Guess down to $40 million in net losses over the past twelve months.

Source: https://www.schaeffersresearch.com/content/analysis/2021/03/12/retail-stock-red-hot-as-earnings-loom