6 lessons we can all learn from Augustinus Bader’s all-in-one strategy.
Hi! 👋 This is my first product post. I plan to share more across a range of topics from beauty to fashion to wellness. I’d love it if you can share any feedback, positive or otherwise. Feel free to email me at sola@glaminvest.com
Augustinus Bader’s ‘The Cream’
The luxury beauty industry is ever-evolving and if you consider yourself a beauty enthusiast, chances are that you have come across Augustinus Bader’s ‘The Cream’ either directly or indirectly.
I became intrigued by this product after a trusted friend recommended it to me. Around the same time, I noticed it across several of my social media platforms. While I haven't personally tried the product, I decided to delve into the brand to gain a better understanding of both the product and the business driving it.
Let’s dig in!
Augustinus Bader is renowned for its innovative skincare line. Central to their range is ‘The Cream,’ which has garnered a dedicated following, with fans including celebrities like Kim Kardashian, Jackie Aina, Victoria Beckham, Jennifer Aniston, and Hailey Bieber to name a few.
Here are a few lessons we can takeaway on how this brand went from unknown to celeb fave in less than 5 years.
1) Brand yourself distinctly
One of the first things you’ll notice about Augustinus Bader is its bold, distinct branding with an unmissable royal blue and orange accents - an unusual choice especially for the luxury industry where muted tones tend to be the norm. It’s easily recognizable and makes you do a double-take.
2) Make a bold, compelling promise
‘The Cream’ makes bold claims. Its proprietary formulation is supposed to help with several skincare problems. From addressing hyperpigmentation to promoting collagen regeneration to moisturization, it’s essentially an “all-in-one” product. This will appeal to consumers looking to save time (and possibly money) by investing in a singular product. It’s clear that this cream aims to be a superhero product.
The summary of benefits screams ‘superhero product’
It might, however, appear counterintuitive to others, especially in the day of the ‘9-step skincare routine’ (see Kim Kardashian’s SKKN), which looks to maximize revenue by pushing as many products as possible into the hands of the consumer.
3) Market your credibility
It’s clear the product is built around the personality of the scientist founder - Augustinus is a German professor and inventor who has been working on skincare innovations for 30+ years covering stem cell research and regenerative medicine to help burn victims.
Specifically, their proprietary TFC8 Complex developed by Professor Bader himself. This is being exploited, rightfully so. Germany is known for their rigor in engineering so there is value in incorporating that brand for marketing purposes.
Brands that carry the founder’s name, especially when the founder boasts technical expertise, often infuse a sense of trust. We see this with figures like Bobbi Brown, Dennis Gross, Barbara Sturm, to name a few.
4) Let your price do the talking
If there’s one thing marketing mavens know, it’s that in the mind of the consumer, price is a proxy for quality. Given a 25ml bottle goes for a whopping $265, this cream is clearly going head-to-head with other luxury creams in the market e.g., Creme de la Mer.
Price points like these also suggest they’re not going after the mass OTC market so their target audience is likely middle aged women with more disposable income and who are willing to spend more on quality. This also lends well to the convenience point as this audience is more likely to pay for the convenience of an all-in-one cream vs a multi-step routine.
5) Don’t forget good old social proof
Their website shows that in the 5 years of the product being in existence, they’ve won 100+ awards including Allure’s coveted skincare awards. It also doesn’t hurt that Kim Kardashian, Jennifer Aniston, Hailey Beiber mention them. Whether these were organic mentions or paid mentions is unclear.
6) Make yourself available in the right places
They’re available to purchase directly from their website and from specialty retailers like Sephora, Bloomingdales, Neiman Marcus, and Bergdorf Goodman. It’s most certainly a deliberate choice that you won’t find them at locations like Target, Kmart, Kohl’s and other big box retailers as it won’t be consistent with their luxury positioning.
It’s also worth noting that they’ve recently opened a Skin Lab in New York (their first one was opened in London less than a year ago) where customers can walk-in for a specialty treatment or to purchase products directly. While scaling this will require developing a different muscle for the company, it will give them greater control over the customer experience, improve their retail margins on products sold, as well as give them the opportunity to collect direct feedback from their following.
A bit more about the company
Charles Rosier, CEO of Augustinus Bader
The CEO and co-founder is Charles Rosier, a former investment banker based in France. The company was founded in 2018 together with Professor Bader, so it’s still relatively young. They started with the cream but their site shows a rather extensive range of products including body lotions, hair care, and even supplements. I’d admit I was overwhelmed by the wide range of items available for sale though I also understand that they’d want to translate their proprietary formulation into various formats for more upsell opportunities.
Some numbers
They recently raised $25million at a $1bn valuation led by General Atlantic and Impala Ventures. Given sources say the 2022 gross revenue is estimated to be $200million and they experienced a 50% year-on-year growth from 2021 to 2022, it’s safe to assume a rough 3x multiple was applied on projected net sales in 3 years at the same rate of growth, which landed them the $1bn valuation.
The question on whether they’ll experience this same rate of growth is open, especially given the cyclical nature of beauty product trends. It is, however, possible that Augustinus Bader’s solid marketing and value proposition will grant them longevity in the market. If Creme de La Mer is to be considered their competition, then this Google Trends chart shows that Augustinus is well ahead of the incumbent.
It's worth mentioning their new venture, the spa named 'The Skin Lab,' which opens up more direct-to-consumer avenues, allowing them to capture higher margins and gather valuable firsthand customer feedback.
The GlamInvest Verdict: Cautiously optimistic. The product seems very compelling and truly unique. They’re still a young company <5 years old and have clearly gained significant ground in a fiercely competitive market. However, regarding whether they’ll secure their spot in the old faithful hall of fame amongst the likes of La Mer, Biologique Rechere, only time will tell.
Has anyone tried the product? Would you recommend it to a friend?
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I look forward to uncovering the world of beauty and fashion with you!
Warmly,
Sola
