The Rootist is making waves in the beauty industry by re-launching its hero product, the BioBrew Fermented Leave-In Repair Serum, in a larger size. Starting April 1, the serum will be available in a 55 ml bottle—nearly double the original 30 ml size—at the same price of $48. Customers can find the upgraded product at Sephora.
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This move comes as a response to rising inflation and customer feedback. The Rootist prioritized delivering more value to its loyal users by increasing the product size without passing on additional costs.
To achieve this, the brand partnered with its CEO, David Chung, and sister companies iLABS and Morae Packaging to lower packaging, production and shipping costs. By optimizing materials and increasing production volumes, The Rootist successfully maintained its price point, giving consumers more of what they love.
The BioBrew serum offers 5-in-1 benefits, including reducing breakage by up to 3x, controlling frizz for up to 72 hours, providing heat protection up to 450 degrees, hydrating the scalp and delivering instant shine.
To learn more, Global Cosmetic Industry interviewed Chung about the brand's cost-optimization strategy.
How did the brand manage to cut its costs?
Chung: When we heard how many consumers were loving BioBrew but wishing they had a larger bottle, we set a goal of reducing costs so that we could offer nearly 2x more product for the same suggested retail price. The formula is incredibly effective and beloved, so we knew we didn't want to touch that. We focused instead on packaging, production and shipping. The biggest drivers of our cost savings were:
- Leveraging economies of scale—as the brand's retail sales have grown, so too has our negotiating power with our raw material and packaging suppliers.
- Moving from a third-party glass bottle from China to one produced by my packaging company Morae Packaging—in our high-tech glass manufacturing facility in South Korea.
- Switching from a cylindrical shaped secondary package to a more space efficient rectangular tuck and fold carton, so we were able to pack the shippers, pallets and containers more efficiently.
What's the importance of value for today's shopper in an uncertain economic environment?
Chung: For consumers, obviously pricing for many goods is going up—whether literally or through "shrinkflation." In these challenging economic times, focusing on offering value to consumers has never been more important. As both a beauty brand owner and turnkey manufacturer with hundreds of top-tier beauty brands as clients, I spend a lot of time working with my teams around the world to figure out alternative ways of sourcing packaging materials and mitigating the impact of tariffs through all available strategies. Brands, like The Rootist, that are bucking inflation trends through diligent cost management and creative sourcing, I believe will win big.
What practical cost saving tips do you have for other beauty brands?
Chung:
- Select and design all packaging (primary, secondary and tertiary) for maximum space efficiency and versatility
- Partner with co-manufacturers...who offer turnkey service, multiple production sites and have strong relationships and negotiating leverage with suppliers around the world
- Manufacture finished goods in the United States or countries like South Korea that have relatively low import duties to the United States right now
- Provide advance forecasts to your co-manufacturer and consider purchasing components in bulk that can be converted to finished goods as needed; advance planning can also help avoid notoriously expensive air shipping costs
- Wherever practical, condense production into fewer, larger runs
