Behind the scenes of Ulta Beauty's new marketplace
Description
On this week's episode of The Modern Retail Podcast, co-hosts Gabriela Barkho and Melissa Daniels discuss Mammoth Brands' acquisition of Coterie, a luxury diaper brand that's had a fast-growing subscription business since 2021. While the terms of the deal are undisclosed, it's a big move for Mammoth whose portfolio up until now has included adult body care and grooming brands like Harry's, Flamingo and Lume.
Then they unpack the news that Unilever is offloading luxury skincare brand Kate Somerville 10 years after its acquisition. It's now owned by Rare Beauty Brands, which also skincare brands Patchology and Dot Dot Dash. But it's another sign that Unilever is looking to simply its portfolio and get out of the luxury category, as Unilever also shuttered another brand in the category, Ren Clean Skincare, in July.
This week's featured segment is an interview with James Lang, the vp of marketplace at Ulta Beauty (21:22 ). The company in October announced its first-ever third-party marketplace that's integrated into its website. The move is an attempt to grow e-commerce business without being saddled with inventory, but Lang explains how the company worked quickly and efficiently to stand up the operation within six months after announcing it in March.
They discussed:
- How Ulta learned from other retailers' mistakes when building its marketplace.
- How it plans to use third-party sellers as a way to jump on trend
- The challenges and benefits of selling unowned inventory as a trusted legacy brand.
United States
