Hero Cosmetics Went From An Amazon Store to a $630 Million Exit in 5 Years
Ju Rhyu struggled with acne breakouts and was fed up with the creams that left her with irritated skin. But her luck changed when she traveled to South Korea and discovered hydrocolloid patches, a solution that was already commonly used there.
In 2017, she decided to start selling Hydrocolloid patches in the US under the name Mighty Patch, fast forward five years and she sold her company for $630 million.
So, what can we learn from her story?
Localizing A Successful Product
Mighty Patch's success is partly thanks to taking a product that was already a hit in South Korea and selling it to the US market.
Before, hydrocolloid patches were being sold in the band-aid section in pharmacies in the US. Ju positioned it as an acne care product instead and brought it to cosmetics stores.
And she couldn't have picked a better time. In 2017, K-pop was popping and people were all about trying Korean beauty (K-beauty) products. It was the perfect storm for Mighty Patch's success.
Launching on Amazon
Many consumer goods startups prefer selling on their website, Ju decided to launch on Amazon instead.
Amazon is a great place to validate your idea without breaking the bank on development or design costs, and you don't have to worry about working with a logistics company.
Plus, it already has hundreds of millions of users.
Within 3 months of launching, Ju had sold out of the first order that she had made(10,000 units)!
Another amazing thing about Amazon is that the more customers love your product, the more visibility it gets. Just search for "acne patches" and you'll see Mighty Patch at the top.
Going Brick and Mortar
Many new brands ignore that 80% of retail sales happen at brick and mortar stores, Not Ju. She used the success of Mighty Patch on Amazon to convince retailers to carry her product.
First, she started with specialty ones like Anthropologie and worked her way up to mass retailers.
By mid-2019, Ju secured a deal with Target, and even though they only sold there for half the year, Target accounted for 15% of that year's sales!
Just two years later, Ju sold the company for $630 Million!
Let’s end with a tweet by Ju:
Read of the week: The Billion Dollar Creator, you have to read this one, it’s awesome.
Youtube Channel To Follow: Starter Story, you know that I’m all about bite sized content on entrepreneurship and this is exactly what Pat shares on this channel.
Noteworthy News: Morning Brew acquires OurFuture.