Building a beauty destination in partnership with Costco.
In 2013, HatchBeauty Brands was challenged to help Costco solve one of its most puzzling consumer challenges to date – how to expand its beauty offering to capture a younger, more trend-savvy consumer in a traditional box-store setting.
Through extensive, crowd-sourced research, we discovered that Costco and its Health and Beauty Aids selection had an image problem. While many consumers knew Costco had beauty, they didn’t view it as a destination. These consumers were far more likely to shop at Sephora or Nordstrom for their prestige products.
Based on these sound bites, we set out to turn Costco into a beauty destination. Leveraging urgency and exclusivity, Beauty’s Most Wanted was born. Our three-pronged approach featured a coveted seal of approval, a shop-in-shop in all Costco doors, and a robust partnership program that ensured the best beauty was part of the program. With millions in sales, 60+ products carrying the seal, and five talent-led brands in the program, Beauty’s Most Wanted was instrumental in changing the way consumers saw and shopped the Costco beauty aisle. This helped pave the way for the high end brands Costco now regularly carries in store and online.