S.W. Basics Widens Distribution With Launches At CVS And Whole Foods

S.W. Basics’ purpose is in its name. The brand strives to sell skincare basics and, to do that, it has to be available where people shop for basics. Increasingly, it is.

After launching in 2014 at Target with 450 stores and spreading across the chain two years later, S.W. Basics is currently rolling out to about 400 CVS Pharmacy stores and will enter Whole Foods in nationwide distribution on July 1. It joins a group of natural beauty brands including Meow Meow Tweet, W3ll People, The Seaweed Bath Co. and Plant Apothecary testing the limits of traditional beauty distribution barriers as they push into big-box stores as well as upscale boutiques, apparel retailers, e-tailers, premium grocers and drugstores.

“We are crossing channels and for the first time adopting a real distribution strategy and strategically placing the products in the places I’ve always wanted them to be,” says S.W. Basics founder Adina Grigore. “I’m obsessed with Whole Foods, and it’s an exciting partnership for us and especially exciting to do it at the same time as other retailers. This year, we need to prove ourselves and that retail is alive and well, and that growing retail distribution is the right thing to do.”

S.W. Basics

S.W. Basics isn’t selling the same stuff at each retailer. At Whole Foods, rosewater, orange blossom, peppermint and lavender hydrosols will rule its lineup in the aromatherapy section. The repertoire at CVS features S.W. Basics’ cleanser, toner, cream, rosewater and cream scrub. Target stocks roughly 25 products spanning kits and standalone items. In January, S.W. Basics doubled the area it occupies in Target to four feet.

S.W. Basics doesn’t mark CVS’ natural skincare debut. The drugstore retailer has been supplementing its beauty assortment with indie brands positioned as natural such as Nügg and The Seaweed Bath Co. “They really understand that they have an opportunity, and they would like to be at the forefront of that opportunity. They have an audience that’s interested in the space that we are in, and they want to service that audience,” says Grigore. “Our strategy is never to shut anybody out before we hear what they have to say, and what they had to say was very exciting.”

Grigore stresses breaking into stores isn’t the end of the story for a brand. Being successful in them requires effort and investment. “What a lot of brands don’t know is how expensive it is to transition from however many units you are making now to the units you need to launch at a retailer. Whether I’m going from 500 to 5,000 or 20,000 to 100,000, none of those options are easy,” she says. “That’s money you need upfront no matter what. For us, historically, the most expensive thing has been ramping up inventory.”

S.W. Basics

S.W Basics has raised $2 million in three chunks to fund inventory accumulation. “I always want to never raise again,” muses Grigore. “On the flip side, I can see how constraining it is and how much faster brands are able to go when they bring on large amounts of capital, particularly when the capital is strategic. I want to bring the company to where it is sustainable on its own without any infusion of capital.” Of the possibility of a future financial partnership, she continues, “We would do it if it felt exactly right…but I don’t want to feel backed into a corner.”

Grigore projects S.W. Basics could become profitable in 2018. “Right now, it’s costing us all of the brand’s money to survive and to grow, but that’s largely because of the growth,” she says. With the brand heading to additional stores, it has to spend on awareness campaigns to help move products off the shelves. Grigore notes, “You need to be prepared to market with the retailer and straight to your audience, and you have to find strangers.”

Part of S.W. Basics’ pitch to strangers is that it provides affordable products. The brand has reduced its prices by around 10% overall or $2 to $4 on individual items. It has also introduced $3.99 single ingredient packets containing aloe vera powder, activated charcoal, French green clay, shea butter and jojoba oil. On tap for upcoming product launches are a collection of Scrub & Soaks featuring sea salt, shea oil and essential oil blends, and oil cleansers in apricot oil, castor oil and jojoba oil varieties.

S.W. Basics

The single ingredient packets are a response to two consumer inclinations detected by Grigore: a demand for single-serve beauty products, notably face masks, and persistent caution about diving into natural skincare. “We are trying to usher people to a natural aisle that might be overwhelming to them. One of the ways to do that is to offer a small amount for people to try that isn’t at a $20 price point,” she says. “If you really want to experience charcoal, an explosive ingredient that’s in everything, here’s a way to try it before you get into things that are more complicated.”