MCoBeauty CEO Shelley Sullivan on bringing ‘masstige’ makeup to the US market

Australian luxe-for-less beauty brand MCoBeauty launched into the US market this week and is now stocked in over 1,800 Kroger Co stores. 

Shelley Sullivan, founder and CEO of MCoBeauty, speaks to the challenges the masstige beauty brand faces in entering a new international market and how a partnership with Australian pharmacy Chemist Warehouse helped it become “Australia’s fastest-growing beauty brand”. 

Inside Retail: How did MCoBeauty approach entering into the US market? Did this differ from the “copy-and-paste” method used to enter New Zealand?

Shelley Sullivan: We are following the same strategy in the US.

The supermarket environment works so well for MCoBeauty, it has provided a loyal – and growing – customer base. MCoBeauty is the number one beauty brand at Woolworths and Big W, and I believe that we will be top sellers at [American supermarket chain] Kroger, too. 

We have always done everything outside of the box and that is part of our success. What beauty brand launches into a supermarket and becomes the number one beauty brand in Australia?

IR: Who was the first US retailer to lock in MCoBeauty?

SS: The Kroger Co and its family of stores, including Kroger, Fred Meyer, Ralph’s, Dillions and Smith’s. 

They are the largest supermarket chain in the US, which is a huge opportunity for us, and provides the perfect platform to break into the highly competitive US market.

IR: What has the Chemist Warehouse partnership meant for MCoBeauty?

SS: In collaborating with Chemist Warehouse, MCoBeauty embarks on an exciting journey, capitalising on the industry giant’s position as leaders in the pharmacy sector. 

This partnership opens doors to a distinct customer demographic, one actively seeking beauty solutions, unlike the casual convenience-driven shoppers prevalent in the grocery market. 

It’s an immense opportunity for us to expand our reach and cater directly to the needs of discerning beauty enthusiasts.

IR: Any plans for an MCoBeauty retail store in the US or Australia?

SS: Not at this stage. Being able to tap into the supermarket and pharmacy customers is hugely profitable for the business, and MCoBeauty is about accessibility – providing the everyday woman with luxe-for-less beauty products.

IR: Was MCoBeauty available to US consumers via e-commerce prior to launching into Kroger Co stores?

SS: We have always had a strong US customer base who purchase through our e-commerce site, which is one of the main reasons we are expanding into that market. 

The feedback so far has been incredible, people are so excited to have the brand over there and I feel that they really resonate with Australian brands, and aspire to the lifestyle here.

IR: What percentage of MCo Beauty’s sales revenue does e-commerce account for in comparison to brick-and-mortar retail?

SS: Six per cent.

IR: Previously you mentioned the strategy was almost entirely digital, did this end up being the the case entering the US?

SS: Absolutely. It is a tried-and-tested model for the brand; influencer marketing is a major element of the launch strategy.

IR: Sister brand ModelCo has had global exposure through its partnership with celebrities, including Hailey Bieber (then-Baldwin) in 2016. Have you applied any lessons learned from that experience at MCoBeauty?

SS: I’ve collaborated with some incredible celebrity ambassadors across both brands. At ModelCo we partnered with amazing women like Rosie Huntington-Whiteley and Hailey Bieber and saw great success with that model, which we’ve continued with MCoBeauty. 

The Hailey Bieber collaboration gave me a great insight into the US market and how well Americans resonate with Australian beauty brands.

I knew rather than [introducing] another premium beauty brand to the already flooded high-end beauty market, I really saw an opportunity with masstige beauty.

IR: Will MCoBeauty’s sister brand ModelCo be available in US retail stores anytime soon?

SS: There are no plans for that at this stage, but one thing I have learnt in my 25 years in the business is never say never.

IR: Where is MCoBeauty’s biggest market?

SS: At the moment Australia. We have been here the longest, but if we are well received in the US, that’s where our biggest market will be.

Purely due to the population and Kroger Co being the largest supermarket chain [and one of the largest overall retailers] in the US.

IR: Why do you think this is?

SS: My customers are beauty-obsessed, but they don’t have the money to go into Sephora or Mecca, and that is a big section of Australian customers who are being ignored by other businesses. She wants to buy a beautiful lipstick but she is priced out. We offer her a way to get those lovely products without the price tag.

We work fast because we can, and because our customers expect it. Australian beauty consumers are savvy, they know trends, they want them in their hands quickly, and we think they should have them.

IR: Did you face any challenges in entering the US market?

SS: Dealing with international markets is always really challenging, with the time difference and the language barrier. And with beauty, everything is so market-centric.

What works for one region won’t work for another, and vice versa. So you have to understand and respect their market and their differences.

IR: What international market will MCoBeauty conquer next?

SS: I would love to conquer Europe, we are in very exciting negotiations at the moment.

Once we have successfully broken into the US market, I have my sights set firmly on Europe so watch this space. 

IR: What is next at MCoBeauty?

SS: We will continue to listen to our customers and deliver the luxe-for-less beauty products that they want to see in the range. We have just launched 200 exciting new products dropping, and we have lots more to come.

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