From DTC to Wholesale Model

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How would you feel if someone excluded you from the crucial discussion?

You feel avoided and embarrassed ☹ right? And you look happy and valued when you are a part of the discussion, don't you? But what if I say using the same strategy, we can build a million-dollar brand?

Yes, that's what Glossier did and that principle became its roots.

Building a community-focused brand might look easy since it's an untapped strategy but growing is not as easy as we think 😌 The same applied to Glossier.

So, how did Glossier overcome the issues and remain a competitor in the industry?

Let's see!

Emily Weiss, a former fashion assistant with a vision to change how beauty products were made and marketed, started Glossier in 2014.

She had started a beauty blog called Into the Gloss, where she interviewed makeup artists, beauty enthusiasts, and everyday people.

Over time, she noticed that brands were not listening to what consumers wanted. She realized that many beauty companies dictated what was “in” or “out” without involving real customers in their choices.

Unlike most beauty brands, Glossier didn’t focus on creating “aspirational” beauty standards featuring celebrities or professional models. Instead, it celebrated real customers, showing their unique looks and routines.

Glossier’s mission was to “democratize beauty” by involving customers directly in the brand, making them feel they were part of something exclusive and community-driven.

Watch how smart the creative team at Glossier is:

• Glossier’s first product launch included only four items. This minimalist approach reflected the brand’s message that beauty could be simple and accessible.

From the start, Glossier used a Direct-to-Consumer (DTC) model. They sold products directly to customers through the website. This allowed Glossier to keep prices more affordable by cutting out retailers.

Challenges Met on the Path

Even though Glossier quickly became popular, it faced many tough challenges along the way. Growing a beauty brand that focuses so much on its community sounds great, but it’s hard to do when that grows fast. Here are some key challenges that Glossier faced:

1. Sustaining Community Feel While Growing Quickly

Glossier started as a brand that listened to its customers closely. But as it grew, keeping that personal, small-community feeling was harder. Glossier’s team needed to ensure every customer felt valued, even as thousands more joined the brand.

• Why it was challenging: With so many customers, it was difficult to respond personally to each one. Yet Glossier built its reputation on listening to customers, so this connection was crucial.

• Impact: Glossier had to improve its customer service and find ways to keep up with a growing number of messages, emails, and social media interactions.

2. Competing on Social Media

When Glossier first launched, it stood out on social media, especially Instagram. But with time, many beauty brands started doing the same thing. Glossier then faced a crowded space on social platforms, with countless brands competing for attention.

• Why it was challenging: Glossier was no longer the only brand doing community-centered marketing. That made it harder to stand out, as more brands used influencers and trendy content.

• Impact: To keep up, Glossier had to constantly innovate on social media, finding new ways to engage followers and maintain its unique voice.

3. COVID-19 Pandemic and Store Closures

Glossier had to close its physical stores during the COVID-19. Those stores were not just places to buy products. Glossier designed them as “experiences” where people could try products, meet other fans, and feel part of the Glossier community.

• Why it was challenging: This meant Glossier lost a way to interact with customers directly. They had to rely totally on online sales. That made it hard to create the same personal feelings.

• Impact: Without in-person experiences, Glossier had to strengthen its online community and make its digital presence more engaging. It also had to address customer service issues as more people shopped online than ever before.

4. Customer Service Struggles

Glossier had to handle many more customer inquiries, complaints, and support requests as it grew. Maintaining a high level of customer service became challenging.

• Why it was challenging: Customers expect quick replies, especially from a brand emphasizing community and communication. Any delays or poor experiences could make customers feel ignored.

• Impact: Glossier had to improve its customer support systems, which required investing in more staff and possibly new technology.

5. Shifting from DTC to Wholesale

Glossier only sold products directly through its website. As the brand grew, it started exploring other channels. This move was bold for Glossier because it meant giving up some control over customer experience in exchange for reaching more people.

• Why it was challenging: Moving into wholesale channels like Sephora changes how Glossier interacts with customers. Glossier cannot communicate with them directly or control their experience when people buy through a retailer.

• Impact: Selling through Sephora could bring more exposure, but Glossier also risks losing that unique connection it built with its DTC model. It is balancing new audiences and staying true to its roots.

6. Economic Challenges and Workforce Changes

Glossier also faced economic challenges and had to make hard business decisions in recent years. For example, in 2022, the company laid off one-third of its workforce. That was partly due to slowing growth and the need to restructure for better efficiency.

• Why it was challenging: Reducing staff can harm team morale and affect daily operations. As it relies more on customer service and innovative marketing, fewer employees can slow down growth and customer support.

• Impact: The layoffs were a clear sign that Glossier had to become more efficient. It needed to focus on profitability and long-term stability, even if that meant scaling back in certain areas.

Solutions That Helped

Glossier overcame its challenges with creativity, innovative decisions, and a focus on customer experience. By staying true to its brand values, Glossier found ways to adapt while still listening to its community.

1. Rebuilding a Community Feel Online

When Glossier’s growth troubled keeping a personal feel with customers, the brand invested more in online community-building. Instead of relying only on in-person events and stores, Glossier strengthened its digital spaces to keep the “community vibe” alive.

• Solution: Glossier expanded its presence on platforms where its audience already spent time, like Instagram and TikTok, focusing on user-generated content (UGC) and interactive campaigns.

• Action: It created hashtags like #Glossier and #GlossierPink, encouraging users to share their personal experiences with the products. Glossier reposted these stories and comments.

For example, here’s a TikTok video posted on Instagram with #glossier:

2. Standing Out on Social Media with New Content

As more beauty brands started using Instagram and TikTok to attract followers, Glossier looked for fresh ways to stand out. The brand started creating unique, short-form videos, product tutorials, and “behind-the-scenes” content to differentiate itself from the crowd.

• Solution: Glossier’s team adopted video content to show products in action and give more of a “face” to the brand. They shared short videos on skincare routines, tips, and even live team Q&A sessions.

• Action: By showing real people using their products and offering beauty tips, Glossier kept the focus on its community and avoided over-polished, scripted content.

For example, here’s a reel showing what people think about its new perfumes:

the___gloss

View more on Instagram

3. Boosting Online Shopping and Customer Service

When the COVID-19 pandemic forced Glossier to close its stores, it quickly boosted its online shopping experience. Glossier designed a website to browse, choose, and buy products without entering a store.

• Solution: Glossier redesigned its website for a smoother, more personalized shopping experience. It also increased customer support through live chat, social media responses, and detailed product FAQs to help with online purchases.

• Action: Glossier created “Get to Know Your Skin” quizzes to help customers pick the right products. It also improved its customer support response times to handle the higher demand during the pandemic.

For instance, see this screenshot to see how simplified the Glossier website is:

4. Expanding from DTC to Wholesale

Glossier’s move to Sephora was a bold change for the brand. By selling through Sephora, Glossier could reach new people who prefer shopping in stores or on Sephora’s website.

• Solution: Glossier worked closely with Sephora to ensure its products were still presented in the brand’s style. Glossier displays in Sephora stores mirror the brand’s minimalist and fun approach.

• Action: Glossier also used this new channel to meet people who may have heard of the brand but never tried it. By expanding to Sephora, Glossier was able to connect with a larger audience without losing its DTC presence.

Here’s the ad Glossier started running on Instagram and Facebook on the 1st NOV 24:

Conclusion

Glossier’s journey shows the power of building a brand around community, simplicity, and customer loyalty. By focusing on what made it unique and adapting to changes, Glossier overcame challenges in a competitive market.

It's your turn now. Let’s see if you can answer these:

1. What core products or services can you focus on to simplify a business?

2. Are there any new channels or partnerships that could grow a brand without losing focus?