Gold-dipped, limited edition, cosmetics, crypto: everything we love.
How e.l.f Cosmetics transformed beauty marketing with Crypto Cosmetics
E.l.f is ready to glow digital. Hold onto your makeup brushes, because we’re diving into the thrilling world of Non-Fungible Tokens, or NFTs.
Think of NFTs as a digital certificate of authenticity for something unique– like owning a one-of-a-kind rare collectible that sets you apart from the crowd. Fancy, right?
What are Ne.l.f.Ts?
E.l.f., an acronym for “Eyes. Lips. Face., is an American beauty brand popular for its “holy grail” products. In June 2021, they launched their “Crypto Cosmetics” campaign where they sold three of the company’s best selling products dipped in digital gold, called “Nelfts”, for the same price as their retail counterparts.
Those who bought these Ne.l.f.Ts also received a certificate of authenticity and ownership. The gold artworks were sold on Bitski as ‘crypto cosmetics’, with just 9 being created, costing less than $9. They sold out in 9 minutes and the brand offset its carbon footprint by engaging Aerial as part of its commitment to sustainability.
But why are brands launching NFTs?
“NFTs can be a powerful mechanism to tokenize community and loyalty programs, or to allow consumers to showcase their brand affinity.”
- Senior Vice President, web3/Metaverse Group at Shisheido
Companies around the world are eagerly entering the metaverse as it opens new horizons for the future of digital marketing. (Read more about marketing in the Metaverse here)
And who wants to left behind the bandwagon? Beauty NFTs can be an exciting and refreshing way for brands to connect with their consumers, beyond products. It is a new route to establish a more intimate but direct relationship with their consumer.
‘It’s a new way for super fans to be a part of the brands that they love.’
- Gayitri Budhraja, Chief Brand Officer at e.l.f. Cosmetics
Following suit, many other beauty brands such as Clinique, NARS, L’Oréal Paris and Estée Lauder also launched their own NFTs or crypto cosmetics.
It is like having a virtual makeup bag filled with exclusive and limited edition beauty drops!
Back to N.e.l.f.Ts
Keeping up with new digital trends, the emergence of NFTs in beauty intrigued me. From a marketer’s eye, by embracing NFTs, e.l.f Cosmetics tapped into a trend that is at the intersection of technology, creativity, and consumer desire for unique experiences.
Incorporating NFTs into their strategy has greatly helped the brand generate a buzz amongst beauty enthusiasts and their target audience. The limited-edition nature of these exclusive digital collectibles also created a sense of urgency and exclusivity, prompting fans to actively engage with the brand and participate in their digital events.
Moreover, their collaborations with digital artists for the collection have opened up new avenues for creativity and appeal to a broader audience.
Now, to answer the real question: will the NFT trend sizzle or fizzle?
The market capitalization of NFTs has grown tenfold from 2019 to 2020, reaching around $340 million, and continues to grow in 2023.
As technology continues to evolve at lightning speed, virtual experiences are becoming the norm. With the power to immerse us in a whole new world of digital experience, NFTs have the potential to revolutionize the way we interact with digital content.
With the remarkable market growth and the ongoing convergence of beauty and technology, we can say that the future looks positively bright and this trend will continue to illuminate the beauty industry for years to come.
The digital future of beauty is here. Question is, are you ready to live the virtual glam life?
