The lip balm industry has remained fairly unchanged for a considerable amount of time. Everyone is familiar with the cylinder tubes that line the lip balm section at stores and pharmacies. EOS lip balm saw this stagnation as an opportunity and created a brand that was a breath of fresh air in the industry.
EOS, an abbreviation for the Evolution of Smooth, was founded by partners Sanjiv Mehra and Jonathan Teller. Mehra came from a background of packaged good companies while Teller had spent more time with startups. Their unique combination of expertise and experience provided them with the knowledge they needed to grow EOS from a small business to one of the industry’s leading sellers.
According to Kline Research, EOS grew to become the industry’s second leading seller of lip balm. With weekly unit sales hovering around 1 million and a simultaenous growth of the lip care market, business has never looked better for the EOS team. Finally revealing what it took to create such a successful business, Fast Company conducted an interview with the new kings of lip balm.
One of EOS’ key strategies was to re-target the lip balm industry to a specific demographic. Before, it was widely regarded as a unisex category. Instead of continuing this trend, Mehra and Teller decided to look into which demographic was the primary consumer of lip balm. Upon their findings, EOS decided to create a product designed for women. They set out to design lip balm that would be enjoyable and fun for women to use during their everyday routines. The result was their iconic spherical, design with many colorful and flavorful variations.
As a startup, it was not easy for EOS to get their products into stores at first. After successfully selling at a Walgreens, larger purchasers such as eBay and Walmart began contacting EOS for deals. The traction eventually grew enough to propel them to become a $250 million company. Visit the website: evolutionofsmooth.com.