In January, Hand in Hand met with Ulta Beauty about the possibility of entering its locations. Less than six months later, the brand shipped fixtures and products in new packaging to almost 400 of the specialty retailer’s doors.
The launch represents the latest step among several in the seven-year history of mission-driven Hand in Hand, which provides soap and clean water to children in the developing world, to expand its reach. Already available at Target with bar soaps, the brand’s product portfolio in Ulta Beauty has stretched to 16 stockkeeping units across sugar scrub, body lotion and body wash as well as bar soaps.
“We are a small team of five people. Everyone is from outside the industry, and we do a lot of trying and reinventing of the wheel,” says Bill Glaab, who founded Hand in Hand with his wife Courtney Apple after working in sales at a financial data firm. “Ulta was a really big validation that we’re doing this correctly. We’re different, we’re making an impact, and other people are recognizing it. Obviously, it’s a huge compliment for Ulta to put faith in us and believe in the brand.”
Since it hit the market with a single bar of soap, Hand in Hand has evolved its distribution, production, packaging and assortment. At the start, the plan was to go direct-to-consumer. However, small boutiques solicited the brand right away, and distribution tactics promptly changed. Anthropologie pursued the brand at the outset, too. The lifestyle retailer encouraged Hand in Hand to spiff up its aesthetics, and it landed at Anthropologie’s stores in 2012 with whimsical designs setting it apart from the natural beauty pack.
“We are a small team of five people. Everyone is from outside the industry, and we do a lot of trying and reinventing of the wheel. Ulta was a really big validation that we’re doing this correctly. We’re different, we’re making an impact, and other people are recognizing it.”
In the beginning, the brand outsourced manufacturing, but took it in-house early to satisfy the product demands of mom-and-pop stores. Its range ballooned to hand salves, room sprays, liquid soaps, lip balms, candles, bath salts and more. Growth was good, but not outstanding. In 2015, Hand in Hand made a decision to pivot to the mass market to broaden its audience while shrinking its product range and price. The bar soap price has decreased from $12 to between $5 and $6.
Glaab searched on LinkedIn to find buyers at Target and, once he identified the right buyer, he shot off five emails with likely email configurations for the company. Four emails bounced back. He received a response to the fifth, and Hand in Hand returned to external manufacturing and arrived at Target for holiday 2016. “Target did exactly what we thought it would do,” says Glaab. “It really helped us gain a lot of exposure, and it opened us up to a whole market of people that didn’t know we existed.” Hand in Hand’s core audience has shifted from customers 45-years-old and older to customers under 30-years-old.
Retail deals are rarely perfect. When Hand in Hand rolled out to Target, it lost independent boutiques that preferred it not to be stocked in a big chain. In addition, the brand’s message wasn’t being broadcast as strongly as it hoped amid the product crowds with no signage. Glaab explains, “Our velocities were good, but we weren’t getting credit for the quality of the ingredients – the fact that they are vegan, cruelty-free and palm oil-free – and we are not getting credit for the fact that we are donating soap.”
“If you look in almost any retail channel, you see that beauty is getting a lot of attention. Everyone is trying to do what Ulta is doing very well: Offering an array of beauty products at fantastic price points for shoppers. Within the industry, it’s a really good time because the world is literally opening up.”
Hand in Hand updated packaging to communicate about its contents loudly and clearly at Ulta Beauty. The revamp eliminates playful designs in favor of solid bold colors and gold foil for product names, and places vegan, cruelty-free and palm oil-free pronouncements in prime positions. “We wanted to become more serious about our packaging and what we stand for,” says Glaab, noting displays at Ulta Beauty also convey Hand in Hand’s attributes. “We wanted [to impart that we’re] the gold standard of green beauty.”
This year, as it establishes its presence in Ulta Beauty, the brand’s sales are expected to nearly double, according to Glaab. In recent years, he reports Hand in Hand has regularly doubled sales. The brand has given away over 1 million bars of soap. To help sustain momentum, it’s evaluating various funding options. “Because we are outside the industry and growing so rapidly, it would behoove us to look at strategic partners who bring a world of expertise with them,” says Glaab. “We are at a pivotal moment in the brand.”
Future retail opportunities for Hand in Hand are ample in stores not traditionally known for beauty merchandise. “If you look in almost any retail channel, you see that beauty is getting a lot of attention,” says Glaab. “Everyone is trying to do what Ulta is doing very well: Offering an array of beauty products at fantastic price points for shoppers. Within the industry, it’s a really good time because the world is literally opening up.”
