Coast to Coast. BeautyTech

Odile Roujol
14 min readJun 5, 2018

Learnings from @BeautyTechNY By Vincent Diallo Odile Roujol (W.IN Forum New-York May 21)

Odile Roujol, Advisor and Board member in the Bay, came to NYC W.IN Forum on May 21st with Vincent Diallo a Venture Capitalist based in San Francisco, and with amazing Beauty and Fashion startup founders from the Bay Area and NYC. They had a great conversation with 100+ attendants about new business models in the space and how new companies empowered by Technologies impact people’s life.

TRENDS. WHAT’S NEXT? THE EXPLOSION OF INDIE BRANDS AND THE RISE OF PLATFORMS

Vincent: Odile, our panel in NYC was rich. Let’s debrief! Let’s talk about TRENDS first.

Direct-to-consumer beauty brands, and more generally the number of brands is exploding. As an ex C Suite level executive at L’Oréal traveling in all markets including Asia, Chief Strategy and Data Officer at Orange, and now living in the Silicon Valley, what do you see coming?

Odile: For me, the biggest trend is about SELF-CARE, self-expression.

Beauty is a lot less about how you look for someone else but it becomes a means of self-expression,a means to take care of yourself.

Consumers express their individuality. They fall for new indie brands and their fresh perspectives, their unique benefits that big brands can’t fulfill.

They are looking for brands with a personality that is genuine, with initiatives that go beyond corporate social responsibility and truly give back to society.

They want first to belong to a community, then have great products and a great retail environment.

Vincent: “Truly giving back to society” reminds me the ambition of Fordays, our latest investment at Bleu Capital, proposing a new OS to make fast fashion sustainable. It’s the time for alternatives models, proposing to consume better instead of simply consuming more.

But coming back to beauty, an extension of this“Self care” trend is customized / personalized cosmetics, « à la carte », would you agree?

Personalization is actually not a new phenomenon, but leveraging massive amount of data combined with machine learning and reinforced with specific survey, enable to delivers spot-on recommendations at scale.

We have great examples to come with PROVEN BEAUTY for skincare, PINROSE for fragrance and PROSE for haircare.

Odile: Yes, and coming back to this great founders and startups, MOTHER NATURE AND GREEN IS ON THE RISE FOR LONG.

Beauty is increasingly associated with health and wellness. « Clean beauty » becomes mainstream. Consumers are seeking greater health benefits, transparency and sustainability from their food, it’s the same for beauty products.

For many, it’s a lifestyle choice. Organic appeal to people who want products that reflect who they are and where they live.

Vincent : It’s so true! Consumers today are doing more research, they are more aware about developments and technology, or just of toxic ingredients forbidden by the regulation in Europe or in the US (as you know the FDA is unfortunately less restrictive than Europe for beauty ingredients).

Proven beauty is about simplifying formulas, Pinrose about natural ingredients.

Odile, anything to add about Millennials?

Odile: Indeed,MILLENIALS SHAPE OUR BEHAVIORS.

THEY WANT TO CONNECT « LIVE », LEARN FOR LIFE

After the wave of YouTube videos, Livestream could be a new way not only to discover products but to be educated and learn, and shop.We met Popshoplive in NY, there is also Glamcam in SF.

Streaming is more immediate, interactive, personalized. This is about 1 to 1 experiences, screen to screen, using beauty as a context.

This comes from a need from consumers to be seen. If I follow one of the influencers’ make-up routines, GlamCam allows to not only watch the tutorial passively but to have the influencer look at me and tell me that I look good! I want to be seen, I want to be told that I am doing great make-ups.

Vincent:Yes, I agree. Livestream and video shopping are a hot topic for us at the moment. And combined with social and influencer commerce, where there is a natural sales opportunity from trusted and authentic influencers, it is a no-brainer especially for comestics. “Natural” is important here. Through GlamCam for example, brands can establish a connection between people interactively and naturally.

Influencers can recommend beauty products through that live channel.When someone sees a product live, it is easy for the influencer to recommend it and for the viewer to buy it.

Odile: Absolutely, THEY WANT THE HUMAN TOUCH… WE ARE FOR A LONG TIME IN A ERA WITH INFLUENCERS.

Consumers like to interact with influencers, or experts. It’s not about technology but about emotional relationships.

Vincent: We have a great example with SOCIAL STANDARDS, a powerful solution to have data analytics about user generated content, social media conversation, and in depth analysis about influencers and why it matters. Anything to add about the digital side of the retail experience ?

Odile: PEOPLE CRAVE FOR PHYSICAL EXPERIENCES IN A DIGITAL WORLD.

As the world becomes more and more virtual, people crave physical experiences.

We should stop talking in global brands and key corporations about « digital trends » « digital natives ». But just assume that in our world, the store has a new place to take. If one day most the purchase are on line, what is the role of the store?

Millennials are technology connected (on line, social media) and spend money on experiences rather than products.

We are in an era of context. What matters if we want to touch them is: with who they are, what they are doing and where.

Vincent: Yes, Millennials have a lot of information, and they care about having a purpose in a complex and ever changing world. The behavior of the young generation is shaping the behavior for most of us.

GLAMST OR EUVEKA are good examples: thanks to an augmented reality solution, be able to find the right shade of lipstick or eye-shadow on line or in store, or having the right size and the perfect fit for clothes.

In-Store technologies can help increase customer engagement with brands as well as boost in stores and mobile sales.

Odile: Just a final word, we couldn’t talk about trends without mentioning the conversational one.

Personal assistants, voice-based technology will evolve to curate products. Social media, livestreaming will convert people « browsing » beauty into beauty shoppers.

Customer will be more and more educated to their biometric data and demand either privacy or compensation.

Data security will become more important than ever.

It’s my turn to ask you questions Vincent, as your insights could help founders to raise money and save time in the period where they meet business angels and VCs.

What do you see as best ways to raise money if sharing your learnings in the Beauty industry?

RAISING FUNDS MEANS ALSO LEARN TO BUILD A TRUST RELATIONSHIP WITH INVESTORS

Vincent:Good question. At ideation stage, it is about finding the right investors willing to fund exceptional founders. Investors should bring value-add beyond their check. I generally suggest to find the good blend of tech specialist, industry expert, former-entrepreneurs investorsamong micro VCs and BAs.

Later on it is all about growth and timing. Fundraising session definitely needs to be prepared once step aheadand requires significant homework to find the right fit.

So for Beauty and Fashion, at early stage, always better to onboard investors who have a reach in the industry, who understand the changing consumer trends, who know the sales cycles and who have a clear picture of the competition map. A handful of my colleagues fit the description!

For Bleu Capital what will really excite us, beyond a great product and a great team, is a real novelty in the way consumers shop for the category.

Odile:Is there a bridge between corporations and startups? Or Silicon Valley ecosystem and Europe or NY, or Asia?

At Shoptalk, Glossier founder Emily Weiss has for sure been a great speaker but it was surprising to see how some executives were listening to her as a big surprise on the insights. She was talking about experience, listening to customers, engaging with a community. Something any early stage founder would mention to you on stage or in a chat while grabbing a coffee here.

Vincent: California represents this region where many iconic fashion brands have been created. Levi’s, Guess, Forever21, LulaRoe to name a few.

But today California is also the Silicon Valley, with all these technological champions.

People are excited because this is the world that they know, with technology that enables to go further in terms of experience and services.

But even with technology, the human dimension is still here and quite often of the very heart of the experience.In that case, it is somehow about fostering technologies that augment human interactions instead of replacing it.

This is about knowing who the customers are and what they would be willing. Without forgetting to surprise them and deliver an experience of serendipity, unique.

Disruption happens here!

Silicon Valley has amazing founders with a purpose, and leading tech trends such as data analytics and computer vision. All social media platforms are near San Francisco and working hand in hand with the new generation of founders, so be ready for new tools and solution and ways to discover, learn and shop.

Los Angeles gets it about influencers and lifestyle brands.

New York has always had an edge in design and content by culture (great agencies, creative people, and designers).

As for Corporation and startups, it is really case by case. We see many “digital transformation” that are quite successful with the ideal collaboration between startups and multinationals. It is changing fast and the gap between the corporations who addressed the topic and the ones who remain observers is digging.

In Asia, my eyes are on China for the moment. It is incredible how the Chinese market is ahead in terms of penetration of new consumer trends. They show the way even thought market structure are quite different. With a limited demographics shift, a faster penetration of mobile commerce, China is a great playground to spot new consumer behavior.

Is it the time for the US to copy the “Made in China “?

Odile: I totally agree ! We should learn from each ecosystem,and exactly as the best syndicate for investors should be partners with a tech focus, but also an industry expertise, it would be great to have Co-Founders getting it about understanding the strength of having different cultures and mindset.

I also encourage Founders to have mentors, then when raising funds to have advisors with an expertise helping them to grow as a leader, and later an independent Board Member helpful in the dynamic of the Board with investors.

Diversity is the way to build great companies.

The US market has one advantage, its size and the fact that a lot of talents come from all over the world.

We can expect new rising platforms in the ten years to come, huge ones.

And I believe some niche brands will become global brands faster than ever, empowered by analytics tools to be “Even more Human” and connected to their customers.

PANEL FOUNDERS

Moderated by Vincent Diallo With

Erika Shumate, CEO and co-founder of Pinrose. Pinrose makes the highest-quality scents that are designed by real women for real women. Pinrose is the first inclusive, luxury fragrance company that amplifies imagination and individuality because it inspires playful product experience, demystifies the world of fragrance, and tailors the buying journey using science and data. Pinrose launched in 2014 in San Francisco and has raised $5M to date. Prior to Pinrose, Erika helped launch several brands such as Goldie Blox and graduated from Stanford Graduate School of Business. She is also a fan of improv comedy.

@Pinrose

Ming S. Zhao, CEO and co-founder of Proven, an Intelligent Skin Care Company that has analyzed over 8 million customer reviews to figure out what works for each person’s skin. Proven believes that the Industry’s “one size fits all” approach benefits nobody, and that everyone should be treated like an individual, starting with your skin.

Agustina Sartori, CEO and co-founder of GlamST. GlamST is an augmented reality Makeup Platform for Beauty brands and Retailers that allows women to try on makeup virtually. Agustina’sbackground is in computer science, originally from Latin America, Uruguay living now in SF. She raised money from several investors in the US and was part of 500 startups.

@agustinasartori @glamstapp

Audrey Laure Bergenthal, CEO and co-founder of Euveka. Euveka specializes in high performance robotic technologies related to morphology and biomimicry. The first product is a shape fitting robot reproducing instantly anybody shape to help fashion take the turn of mass customization revolution / garments personalization. Audrey has an mind blowing professional journey from legal in IP to stylist/modelist and startup founder in robotics. @euveka

Paul Michaux, head of product and co-founder of Prose. Prose is the first custom hair care solution that uses the power of AI plus the expertise of professional stylists to create fresh, made-to-order products. They raised 7m from Lerrer Hipeau, Forerunner, Isai, RedSea and Maveron in 2017 and launched their product in Autumn last year. Paul is the co-founder and head of product, with experience with L’Oreal, Christian Dior and P&G

@pmchx @prosehair

Devon Bergman, CEO and co-founder of Social Standards. Social standards is connecting social and sales data to discover in-depth consumer insights enable brands to hear their customer, compare to other brands and identify trend. It was founded in 2015 in Oakland and they raised about 7 M.
@DevonBergman @SocStandards

Questions list

- Fashion Tech, Beauty Tech, AR, AI, all about algorithm and data but you all mentioned the importance of human in the process and the customer experience. Can you extrapolate?

- User generated content ( UGC) and social media conversations are essential for brands and product success, as we have seen with people like Anastasia Beverly Hills engaged with a Community. Devon you work with indie brands in Los Angeles and with fortune500 and corporations in NY and Paris in different verticals, and you have a cutting edge solution: Social standards. Can you help us to understand the importance of influencers data analytics and affinity and virality?

- One would expect that user / consumer tend to be reluctant to provide personal information online. On the contrary, we see with Proven and Prose that starting the shopping journey with a identified accurate survey around shoppers’ habits, preferences, skin or hair type is not an obstacle. Paul / Ming could you explain what was the logic behind and why it is successful?

- Erika, do you think we could have the same experience when shopping for fragrance?

- Agustina, GlamST enables to power purchase make-up recommendations. Could you run us through the challenges of providing the right recommendation and how you addressed them?

- Could you share with the assistance the biggest challenge you faced in your venture?

- As a conclusion could each of you tell us how you impact people’s life?

Video of the whole panel can be found here https://www.facebook.com/WINFORUMNY/videos/1256570994475424/

Vincent: So to conclude, what should we learn from each other ?

Odile: I believe best teams are with founders from different ecosystems. SF is about Tech. LA has a lot to teach us about influencers and life style.NY is leading the edge in products, brands, content, fashion and design.

BIO’s

Vincent Diallo : Vincent is a venture capital investor with Bleu capital, an early stage fund dedicated to the future of commerce with offices in New York and San Francisco.

Prior to this position, Vincent has been the CFO of one of the largest western-food importer in China. He started his career at Deloitte Paris and Shanghai as an auditor and has been involved in several acquisitions in China. Vincent is French with African roots. He is passionate about Asian cultures.

@Vincent11D @Bleucap

Odile Roujol

Odile Roujol is an advisor for startups in San Francisco, and also Advisor in residence for VCs. She’s a board member in different companies.

Prior to living in SF, she spent a large part of her career in the field of luxury and beauty as an executive with L’Oreal, where she managed the Lancome brand in France in The US and became CEO Lancome, the leading cosmetic brand in luxury retail, in 135 markets.

And she has founded BeautyTechSF, a community gathering founders and investors. @Odile_Roujol

What is the BeautyTech community? @beautytechSF

BeautyTechSF 400+ entrepreneurs and investors. Guest speakers and Founders share their learnings with other entrepreneurs, in a true authentic way. Last time, we had on stage : Tina Sharkey founder Brandless, a platform for goodness with 3 dollars natural products, Melody Mc Closkey founder Styleseat, a platform to book hairstylists, Brit Morin founder Brit+Co, helping women to learn things from coding to makeup tips, and Brad Murray co founder Tatcha, Alain Revah Poshmark empowering influencers to sell fashion.

Meetings take place every 4 to 6 months, gathering 80+ entrepreneurs and investors.

Next BeautyTechSF event will happen on June 25th.

We will have beauty and fashion entrepreneurs. Platforms enabling to personalize products and the customer experience.

There is a great diversity in the profiles of the founders : some of them were bloggers about life style, some are women in tech, or engineers in augmented reality, some of them come from business schools.

I’m happy to see this Beauty Tech community growing also in Seoul, Tokyo, Paris where we have led meetings this month.

And to come in London, Shanghai, and in India. See you soon!

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Odile Roujol

Founder Fab Ventures and Fab Fashion & BeautyTech community - Conscious Living -Women. BA, Board member, ex CEO Lancôme @loreal /CDO @Orange - L.A. / SF