In the business world, it’s important to purchase items at a lower cost than what they will sell for. With that said, most companies are working to try and price their goods as low as possible. After all, most consumers are always on the hunt for a bargain. However, one company in the hair care industry is taking a different approach to this strategy.
Arnaud Plas, the CEO of Prose, isn’t deterred by the price tags of his company’s products. And, with such a successful history in the beauty industry, many investors are ready to support his new venture. Experts predict that Prose is well on its way to hitting $50 million in revenue by the end of 2020. What makes this figure even more important is that it’s over 300% higher than Prose’s revenue during 2019.
The Success of Prose During 2020
There are a few reasons why many people, Arnaud Plas included, feel that Prose will be the new brand to talk about in the hair care industry. One reason for this is that Prose is already developing a loyal customer base, over 55% of Prose’s current customers have made repeat purchases. Considering that, it’s easy to see why Prose has already received $25 million in venture funding.
Dealing With Challenges
Before helping to form Prose, Plas spent the majority of his adult years marketing consumer products to the public. In 2010, after graduating from a business school in France, he began working in a leadership position for Henkel. While he continued to help grow Henkel, a large detergent brand based out of Germany, L’Oreal soon took notice of Plas’ talents. In 2014, Arnaud Plas became the Vice President of Digital and E-Commerce Strategy for L’Oreal.
As many people know, things in life sometimes don’t go as planned. This was the case when, in 2016, Arnaud Plas became frustrated with his role at L’Oreal and decided to part ways with this company. With that in mind, Plas began working on launching his own business.
The Beginnings of Prose
Coming from a marketing background, Arnaud Plas knew the importance of having great ideas. To set his new company apart from the competition, Plas wanted to take a personalized approach. With that in mind, Plas and his team began working on learning more about this company’s target audience. The final result of this team’s hard work was a 25-question survey.
By creating a new survey, the minds behind Prose were able to learn a lot of valuable information. Taking this information, they soon began working on a system that would create customized hair care products based on the needs of each customer. With their collection of over 160 ingredients, Prose can deliver almost 79 trillion possible product formulations.
Will Customers Pay More for Personalized Hair Care?
While things have been going great for Prose, this company does face challenges ahead. One of the most notable challenges Prose will face has to do with its competition. Most companies in the hair care industry have far less expensive products. With that said, they’re also not creating products formulated for each customer’s needs.
Many people wonder if Prose can gain enough customers for their pricing model to be viable. At $25 per 8.5 fluid ounce bottle of shampoo, Prose’s products are about 10 times more expensive than most of their competitors. However, Prose has been quick to report that about 50% of its customer base switched to this company instead of continuing to use a less expensive brand.
In closing, Arnaud Plas has quite the challenge ahead of him as his business continues to grow. The CEO of Prose, Plas hopes to see his premium line of personalized hair care products take over the competition. While Prose’s line of products is pricey, having personalized hair care products is something no other major brand is offering.