Noili is a Slovak cosmetics brand engaged in the production of premium products in the field of everyday skin care. The market Noili operates in is extremely diverse from a customer point of view – in most cases, the customer does not understand the ingredients and choosing the best product for their skin type is a challenge. Thanks to Noili, customers now have this choice simplified, know exactly what ingredients are in any particular product and, by using them, can promptly slow the inevitable skin ageing process (the "anti-aging effect").
Noili products exclusively contain active and carefully selected substances on a natural basis without use of chemical preservatives. Development of the products has been based on science and medical knowledge. The quality of the products as well as the entire customer experience (incl. packaging) make Noili a premium brand. This area is characterized by the generation of particularly high sales margins.
Noili's established market position, fast-growing customer base and international ambitions have been noted by several distributors (perfume and drugstore chains), who already expressed an interest in selling Noili products in regional retail chains. A new product line currently in the pipeline in collaboration with an international top model is expected to accelerate this demand considerably.
About the investment opportunity
The success of the business model is built on the interplay between an experienced management team, superlative quality product and a rapidly growing market. The organic skincare segment is growing 80%* faster than any other part of the beauty industry, in average 8.5% CAGR 2021-2026).
The first Noili products were introduced in 2018, when founder Dr. Zuzana Gyárfášová developed its debut facial oil, which quickly established itself on the market. Each product is characterized by ingredients rich in natural substances and, most importantly, fosters the desirable effects. The target customers are primarily women, especially between the age of 35-60, who are looking for simple and effective skin care products. The target population on the Slovak and Czech markets alone is >2.6 million women**, a large proportion of whom use the products on a daily basis.
The uniqueness of Noili and securing commercial sales underscore:
- Selective product quality: natural cosmetics full of precious oils, plant waxes, omega fatty acids, vitamins, antioxidants but no chemical preservatives.
- Ingredients that work: active ingredients in a formula that stores and benefits every skin type - whether sensitive, dry to atopic or oily skin (suitable for any gender and age).
- Love-brand: Products for which customers clearly understand the kind of ingredients used (100% transparency) and what the resulting effects of their use will be. The products represent more than daily skin care; they are promoting a daily ritual with love for the skin and admiration for the power of nature. The uniqueness of Noili has convinced several celebrities, including including the world's top model Daniela Pestova and several influencers from the industry who promote the brand.
The abovementioned is supported by a precisely planned and targeted communications strategy based directly on Noili's own DNA and current trends within the beauty industry. This appeals to the masses and enables Noili to regularly multiply its number of loyal female customers. A high customer retention rate (repeated purchases) has been recorded, fostered by positive customer experiences, brand visibility in the media, and strategic collaborations with influencers who customers can easily identify with.
At the level of business plan and historical sales, COVID-19 has definitely tested a number of cosmetics retailers, especially chains and brands that sell majority products in brick-and-mortar stores. Noili's business model is based on establishing direct relationships with customers and thus the majority of sales is generated online through direct channels.
The objective of this growth investment, together with the capital already provided by investment fund CB Growth ONE, is to co-finance the development of new products and build a regional premium brand that will become an attractive acquisition target in the region.
* McKinsey & Company, May 2020
** statistical data
Investment opportunity in a nutshell
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