Just a few years ago, terms like retinol, niacinamide, and hyaluronic acid were unfamiliar to most. Today, these ingredients are widely recognized, largely thanks to the rise of The Ordinary. This brand has gained global prominence with its affordable pricing, minimalist merchandising, and clear focus on single ingredients, transparently highlighting their benefits. Let’s explore how The Ordinary revolutionized the skincare industry.
Brand Origins:
The Ordinary, part of the Deciem family, has swiftly transformed the beauty industry with its transparent ingredient lists, affordable prices, and minimalist packaging. Founded in Toronto, Ontario, Canada, The Ordinary has established itself as a dominant player in skincare, valued at USD 2.2 billion. Deciem was founded in 2013 by Brandon Truaxe, who was disillusioned by the beauty industry’s lack of passion, transparency, and insight. This frustration led him to create Deciem, with a vision to revolutionize beauty. Drawing inspiration from the pharmacy model, where remedies like paracetamol or aspirin are consistently priced, The Ordinary applied this approach to beauty products. Unlike the beauty industry’s vast price discrepancies for similar products, The Ordinary adopted a transparent and affordable pricing strategy.
International Growth:
Since its inception, Deciem has reshaped the skincare landscape by making high-quality, ingredient-focused products accessible to a wider audience. The Ordinary, Deciem’s flagship brand, offers affordable formulations with well-known active ingredients like vitamin C, retinol, and hyaluronic acid. This approach has demystified skincare, making it more accessible and less overwhelming for consumers. Recognizing The Ordinary’s enormous potential, Estée Lauder Companies Inc. acquired a stake in Deciem in 2017. Today, The Ordinary sells globally through its website and is available in 44 countries through retail partnerships, solidifying its international presence.
Market Impact:
In 2021, Deciem’s net sales soared to about $460 million, with The Ordinary driving the majority of these sales. By 2023, the global skincare market’s revenue stood at approximately $181.20 billion. The Ordinary’s products consistently rank among the top skincare brands, with its Niacinamide, Glycolic Acid, and Retinol formulations holding top positions in various global markets. The cult favorite Niacinamide 10% + Zinc 1% sells every 2 seconds, topping the list of best-selling products in every country where the brand is present. The Ordinary leads the search list in 41 countries globally, far surpassing major international brands like Dove (ranking first in 9 countries), Bioderma (ranking first in 6 countries), and CeraVe (ranking first in 5 countries).
Organic Community Growth: The Ordinary & Deciem Chat Room
The brand experienced significant organic growth, notably through the emergence of the Facebook group, the Ordinary & Deciem Chat Room, independent of the company’s initiatives. This phenomenon is rare in the beauty industry, where brand-specific forums of such magnitude are uncommon. Initially conceived by a customer for casual product discussions among friends, the group expanded organically through word of mouth. Upon discovery by Deciem, Brandon Truaxe engaged in a Q&A session, originally slated for two hours but extended to a full day due to overwhelming participation. The Facebook group now boasts approximately 200k followers, underscoring its substantial impact on community engagement.
Pricing Strategy:
The Ordinary is renowned for its affordable pricing, which starkly contrasts with traditional beauty industry norms. Internationally, most of The Ordinary’s products are priced under $10, and in India, they typically range from Rs 500 to Rs 1000. This approach makes high-quality skincare accessible to a broad spectrum of consumers. The brand’s transparent pricing and clear product descriptions challenge the notion that effective skincare must come with a high price tag, democratizing access to premium skincare solutions.
The Marketing Strategy Behind The Ordinary’s Success
1) Straightforward Product Naming
The Ordinary’s product names, such as Niacinamide 10% + Zinc 1%, are clear and transparent, resembling entries in a chemistry book. This approach demystifies skincare for consumers, making it easier to understand what they are using.
2) Affordable and Effective Products:
By focusing on value for money, The Ordinary offers high-quality products at prices that defy industry standards. This strategy has attracted a broad consumer base, challenging the notion that effective skincare must be expensive.
3) Empowering Consumers with Knowledge:
The brand’s educational approach focuses on the science behind skincare, empowering consumers to make informed choices and fostering trust and loyalty. The founding team set out on a mission to democratize skincare and make quality products accessible to everyone by providing high-quality skincare at honest prices. Their single-ingredient offerings allow consumers to target specific concerns and adjust their skincare routine seasonally. The accessible price point also encourages exploration, enabling customers to try new products and experiment with different ingredients and percentages.
4) Tailored Skincare Regimens:
The Ordinary offers personalized skincare regimens through its website, where customers can specify their skin concerns and goals to receive customized product recommendations. This tailored service enhances customer engagement and satisfaction.
Journey into the Indian Skincare Market:
The Ordinary made its debut in India in June 2022 through a partnership with Indian e-commerce giant Nykaa. This launch was a strategic move by Estée Lauder to tap into the burgeoning Indian market. Prior to the arrival of innovative brands like The Ordinary and Korean skincare products, the Indian skincare landscape was dominated by long-established brands such as Fair & Lovely, which primarily focused on fair skin, and Lakme, known for its association with Bollywood ambassadors.
Response in India:
The introduction of The Ordinary in India significantly contributed to the organic sales growth in Estée Lauder’s emerging markets. In fiscal year 2023, these markets saw a 20% growth, led by India, Brazil, Turkey, and Thailand. India, in particular, experienced nearly 50% growth, driven by the strong performance of both new and established brands in the market.
Indian consumers have appreciated The Ordinary for its affordable, dermatologist-approved products with clean, functional packaging. They value the brand’s introduction of active ingredients, making skincare more effective and understandable. The local availability of The Ordinary has been widely welcomed, eliminating the need to source products from abroad.
Conclusion:
The rise of The Ordinary marks a significant shift in the skincare industry, challenging conventional norms and democratizing access to effective skincare solutions. Through transparent pricing, minimalist merchandising, and a clear focus on single ingredients, The Ordinary has revolutionized how consumers approach skincare. Its strategic marketing initiatives, including community engagement and educational campaigns, have fostered trust and loyalty among consumers worldwide. As the brand continues to expand its global presence and enter new markets like India, its impact on the beauty industry is undeniable, paving the way for a more inclusive and informed approach to skincare.
