Beautycounter is again — kind of.
After the clear magnificence label was bought to non-public fairness group Carlyle in 2021 at a whopping $1 billion valuation, the model fell into foreclosures in 2024. Founder Gregg Renfrew might have walked away ceaselessly. As an alternative, she purchased it again.
“It is a model and a enterprise mannequin reimagined. It is a new firm. This isn’t the outdated firm,” Renfrew informed The Enterprise of Magnificence solely.
Following an earlier announcement that her new label Counter will debut on June 25, Renfrew shared particulars on what’s completely different this time round. For these questioning if that is Beautycounter 2.0, Renfrew is adamant it’s not. Some constants stay — the brand new identify references its predecessor, and the label is sticking to the clear magnificence ethos it helped pioneer in 2013 with an analogous, albeit smaller, lineup of merchandise with status positioning. The aesthetic has been recast with a bolder brand, new bottle designs and an up to date color scheme. Its largest change, nevertheless, is the model has achieved away with its former upline-downline compensation mannequin typical to multilevel advertising firms.
Valued at $1 billion when its majority stake was bought to Carlyle Group, Beautycounter had at all times floated between the worlds of direct promoting and conventional retail. The model had cultivated a faithful group of 60,000 direct sellers drawn to Renfrew’s advocacy for regulation of cosmetics elements. It concurrently bought direct-to-consumer, in its personal retailer and thru varied retail partnerships together with Goal and Ulta Magnificence, however these completely different gross sales channels typically got here into rigidity with each other. The model’s 2023 Ulta Magnificence launch sparked backlash from sellers annoyed with the brand new competitors. It shuttered inside the yr, earlier than Renfrew purchased its identify, belongings and formulation to revive it together with a gaggle of buyers whose names are undisclosed, however a few of whom beforehand invested in Beautycounter, she mentioned.
Counter has reimagined its relationship with sellers, whom it calls “model companions,” as one that appears extra like normal influencer advertising: Companions will earn fee off hyperlinks they share with their followers and luxuriate in perks like invitations on model journeys and to in-person occasions.
“We may have a group of people that will have the ability to characterize the model in a brand new method that’s not trying again to the outdated mannequin, which was too sophisticated,” mentioned Renfrew.
A Contemporary Restart
Renfrew, and her model, have argued towards any affiliation with multilevel advertising fashions, emphasising that sellers couldn’t purchase stock to promote and Beautycounter’s number of gross sales channels — the most important of which relied on an upline-downline format typical of MLM firms. Whereas this follow has at all times existed in magnificence commerce, and confirmed profitable by way of manufacturers like Avon or Mary Kay, the mannequin’s extra exploitative tendencies have been highlighted by way of latest docuseries like Amazon’s “LuLaRich” and podcasts like “The Dream.”
A fleet of direct sellers was a significant component in Beautycounter progress, which was pulling round $400 million in annual income on the time of the Carlyle sale, in response to a supply acquainted with the model’s funds. As of the earliest firms within the “clear magnificence” motion, it captivated a religious group who had been impressed by Renfrew’s activism on Capitol Hill for higher beauty security laws and help for the Modernization of Cosmetics Regulation Act signed into regulation in 2022.
Below Beautycounter’s outdated enterprise mannequin, sellers would make commissions off the merchandise bought by the “groups” they’d recruited. The enterprise mannequin required continued loyalty to facilitate recruiting new sellers.
That setup is gone with Counter. Below the brand new mannequin, which Renfrew calls “group commerce,” model companions will earn commissions by linking to merchandise, with larger incentives of 40 p.c for capturing first-time prospects. (Regardless of the resemblance of “group commerce” to affiliate hyperlink advertising, Renfrew says the mannequin is distinct as a result of Counter companions “can be a part of a group,” noting that model journeys and occasions will likely be a part of the perks for them). They’ll additionally nonetheless earn cash from referring new model companions, however Renfrew emphasises the truth that the fee is a one-time bonus. The earlier $50 signup payment to promote is gone inside Counter’s new technique.
To win again sellers, Renfrew has been on a tour of the US, giving talks to former sellers in Minneapolis, Dallas, Nashville and Charlotte. The preliminary group of name companions will likely be former sellers from the outdated model, which Renfrew mentioned was deliberately restricted in quantity. The model presently has a waitlist.
“Individuals be part of companies, characterize manufacturers for a wide range of completely different causes,” mentioned Renfrew. “Generally they simply love the product. Generally they need to earn just a little bit of cash. Generally they need to do each.”
Coming into Its DTC Period
Past successful again companions, Counter is getting into an intensely aggressive marketplace for DTC manufacturers.
It’s relaunching with 19 of its authentic best-selling skincare and make-up merchandise (out of 245 within the outdated assortment) with plans for a complete of 31 SKUs by the autumn. Costs will likely be in line with the outdated iteration however with some tariff-related will increase on choose merchandise, together with each its Countertime franchise and its All Vivid Vitamin C Serum.
Renfrew hopes to concentrate on conventional retail within the close to future, saying extra standalone shops could possibly be within the works after the model reopens its Nantucket retailer this month, in addition to future retail partnerships.
Counter continues to be leaning into clear magnificence at a time when “clear” has grow to be considerably extra widespread, due to the motion Renfrew helped create. However the definition of “clear” nonetheless lacks consensus, and a few retailers have moved away from closely advertising the time period.
“The place I see a possibility because the pioneer of fresh magnificence is to come back in at the moment and say, ‘Right here’s what clear actually wants. Listed here are the requirements that I’ll be working towards,’” she mentioned.
The label can be seeking to widen its buyer base — the identify “Counter” is supposed to have extra unisex enchantment by eradicating “Magnificence” from the identify, and its branding evokes Gen-Z-friendly strains out there like Rhode or Topicals.
Renfrew famous that the brand new model will likely be in a studying section, and is conserving prospects open for its enterprise mannequin. She’s not ruling out including a future signup payment to be a model associate in its group.
“I’m so unbelievably dedicated to, as a girl, the emotional and financial empowerment of ladies,” Renfrew mentioned. “The explanation why I say emotional is as a result of, throughout the board, on the whole, ladies lack confidence. And thru financial alternative, what I’ve seen is them achieve a way of confidence about doing work that issues.”
