The Rise of First Company in the Production of Lip Balm
For more than a century, buying lipstick involved moving from one cosmetics shop or supermarket to another looking for a small cylindrical tube of chapstick. The stick seemed medical owing to the long list of ingredients indicated on its label. If you wanted to look wild, you had to leave the standard chapstick which was tasteless and go for cherry or mint.
The popularity of chapsticks began to decline after the Fast Company developed pastel-colored orbs of lip balm popularly known as the Evolution of Smooth (EOS). The EOS lip balm products came in different flavors which were very appealing to cusrsmers. Due to the high demand of these products, top sellers such as Walgreens, Walmart, and Target filled their stores with EOS products. Even the famous celebrities such as Miley Cyrus, Kim Kardashian, and Christina Aguilera began using then.
The EOS products have featured in numerous beauty and fashion publications. According to a survey conducted by Kline Firm, EOS are the second bestselling lip balm products in the country after Burt’s Bees. The company sells over 1 million units a week beating Chapstick and Blistex which have been in this industry for than a century. The demand for natural and organic lips care products is expected to increase to over two billion by 2020; therefore, First Company has a better chance of growing its portfolio.
The First Company was established by Sanjiva Mehra and Jonathan Teller. The two decided to bring a revolution in the oral care industry which they felt customers were not enjoying value for their money. According to Jonathan, most of the lip balm companies were just looking for shortcuts for cutting production cost so that they can compete on prices with their competitors rather than concentrating on developing premium products.
The two founders took a lot of time in thinking about how they could develop a unique skin care product from those of their competitors who had been in the market for quite long. They interacted with lip balm users and shared ideas with them. After conducting an extensive market analysis, the two founders established First Company.