The e-commerce-centric nature of the pandemic has made direct-to-consumer shopping the norm, causing many DTC brands to not only survive, but thrive amid this otherwise economically tumultuous time. Eyewear icon Warby Parker hit a $3 billion valuation last fall at the same time popular shoemaker Allbirds raised a massive $100 million round, and digitally native outdoor furniture store Outer clinched a $10.5 million Series A earlier this year, claiming its sales increased by 1,000 percent in 2020.
Now, beauty brand Glossier is joining the party with an $80 million Series E funding. The round was led by Lone Pine Capital, and will be used to “double down” on the NYC-based company’s direct-to-consumer model, according to the press release.
Although it was launched a mere seven years ago, Glossier has become a staple in the beauty industry, particularly among Gen Zs and millennials. Its dozens of products range from skincare to fragrance, and run between just $12 and $60. The company says it has more than 5 million customers globally, and that, in the United States, nearly half of all women between the ages of 18 and 34 have heard of Glossier.
The company attributes much of this success — especially amid the pandemic — to its “deep investments” in its online presence. Founder and CEO Emily Weiss says that seven years ago this approach was an “anomaly” because the industry was largely still focused on brick-and-mortar sales. Now, she says consumer behaviors have “aligned” with the company’s vision.
“Beauty discovery increasingly begins online as people look for inspiration from friends and strangers alike, and customers want to move fluidly between immersive and personalized e-commerce and retail experiences,” Weiss said in a statement. “This is the future we’ve always been building for.”
While much of this funding will be used to further build out its e-commerce side, Glossier says it will also continue to scale its physical stores. Just last month, the company announced it was re-opening its in-person retail locations, starting with three brand new stores in Seattle, Los Angeles and London later this year. Further down the road the company says it will expand internationally by scaling both its offline and online presence, with dozens of new stores planned in the U.S. and globally in the coming years, including a new NYC location in 2022.
