Indie Beauty Brand CEOs, Founders & Entrepreneurs! … Should you incorporate Dupes into your product portfolio?
Dupes are replicas of cosmetic products that are well-known in the market and highly desired by consumers. Dupes can contain virtually the same ingredients and sensorials as the Original, but are sold at a lower price point.
Dupes now command a significant share of the market, driven primarily by younger consumers seeking to purchase quality products at more affordable prices. The prevalence of Dupes is driven by the wide price elasticity of cosmetic products and the relative ease of developing a Dupe.
For instance, an Original product that is sold for $85 retail may be sold for $40 as a Dupe. The economics of cosmetic products in terms of cost-drivers are Marketing/Distribution ($$$) > Packaging ($$) > Product ($). Your Dupe may earn lower gross margins than the Original depending on your marketing spend and distribution channel. However, the product manufactured cost and packaging of your Dupe could be on par with the Original.
Dupes are easy to find by consumers using tools such as Skinsort.com and Skinskoolbeauty.com that identify Dupes based on the comparison of the list of ingredients and attributes match compared to the Original and direct consumers on where to purchase the Dupe. For instance, your Dupe may be rated Attributes Match (92%), Ingredients Match (98%) with consumers directed to your website or Amazon for purchase.
It may be a good strategy for Indie Beauty Brands to incorporate select Dupes into their product portfolio.
How are Dupes developed? A cosmetic chemist will evaluate the List Of Ingredients of the Original and measure the product parameters such as pH, viscosity, color and skin sensorials.
What is known to the cosmetic chemist is the Original List Of Ingredients, their rank order and the 1% line can be estimated. The chemist will then make prototypes based on informed assumptions about the % inclusion of each ingredient and then test the product parameters and sensorials. Dupes must undergo the same product stability and safety testing as the Original.
You can validate the performance of your Dupe to the Original by conducting Blind Consumer Perception Tests asking the panelists to rate the performance attributes of your Dupe to the Original. This can generate some powerful marketing claims like “92% of consumers saw an improvement in moisturization, comparable to the Original.”
Advantages of including Dupes in your product portfolio:
– Brand Exposure. If your product is listed on Skinskoolbeauty.com as a dupe of the original, consumers can be driven to your website to purchase your Dupe
– Product Line Exposure: Once on your website, consumer may peruse your other proprietary product offerings
If you want to learn more about Dupes or create Dupes, CONTACT US!