👉 Background: Aesop is the skincare brand that launched in Melbourne back in 1987. Interestingly, it started as a hairdressing salon that sold products. For the first 15 years, it grew pretty slowly.

👉 What happened: In 2003, Aesop totally shifted its model to become a retail experience within stores. And since then, it has grew to generate $750m in 2021, including a very chunky $175m profit through its deliciously-smelling-and-looking soaps and post-poo drops.

👉 What else: Aesop has grown into a cult. And now, its Brazilian owner Natura & Co is looking to either sell or spin off into a public company via IPO for a tasty $2.9 billion.

What's the key learning?

💡 Every few years, another industry becomes the new flavour of the month. As of late, luxury cosmetic and beauty companies have been hot in demand.

💡 It only takes a few examples to see this:

• In 2020,  Amorepacific took a 49 per cent stake in Aussie-based Rationale
• In 2021, Deciem, which owns The Ordinary was acquired by Estee Lauder for hundreds of millions.
• In 2022, the Tom Ford brand was acquired by Estee Lauder for $2.8 billion USD largely for its cosmetics division
  

💡As consumers become more discerning, their preference is shifting from mass-produced cosmetics to premium ingredients. And its no surprise that the premium cosmetics market, worth $116 billion USD today is estimated to be $210 billion USD by 2033.

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