Typology Expands Into Hospitality, Proving Retail Isn't The Only Path

Forbes

5 days ago

Clean skincare brand Typology became popular thanks to its short and clean ingredient list and ... More minimalist branding.
Typology, the French direct-to-consumer skincare brand, just announced a partnership with global luxury boutique hotels MGallery Collection. The brand will have five personal care products available to hotel guests in thirty hotels by the end of the year, marking a thoughtful move into a new channel that will further its reach to new audiences. Since launching in 2019, Typology exclusively sells its products through its e-commerce website, with only a very recent entry into physical retail with its permanent corner at Parisian department store Printemps Haussmann. At a time when most brands look to diversify their touchpoints for optimal success, Typology is going against the tide of traditional omnichannel strategies. What can we learn from a brand that's not going after imminent retail expansion, instead venturing into hospitality.
Typology is one of the few brands that seems very committed to the direct-to-consumer model it was founded upon, refusing to partner with beauty retailers even six years after launch. This move is uncommon, with the majority of beauty brands eager to obtain partnerships with Sephora, Ulta and other beauty retailers after a few years of activity and traction. Founder Ning Li is clear on the reason behind this unique channel strategy: he wants full brand control. 'We don't want our brand to be sold at places where we don't have total control of the shopping experience,' he said to WWD. 'So far, we remain very much on our DTC route.'
In confirming his vision for the brand's channel strategy, he implies that controlling the brand experience is more important than growing its reach and being made available to as many potential customers as possible. Selling only via its e-commerce site has many advantages: content around the brand is carefully created, with education around product components and skincare routines shared exactly how the brand wants to with consumers. In addition to strong storytelling, a direct-to-consumer channel unlocks direct access to consumer data and relationship, which allows for better retention, personalization and loyalty. It's a bold move, but given that the brand is still considered to be in its early growth stage according to the founder, ensuring strong brand equity and loyalty from existing customers is the priority.
Typology has made it clear it is not interested in expanding into retail. 'Typology is a direct-to-consumer brand, not sold at any other retailer in the US (Sephora, Amazon, Ulta, Walmart, Credo, Target, or department stores). You will only find authentic Typology products at Typology.com, through our mobile app, and at our physical store location at Printemps Haussmann in Paris,' states the brand's website.
As explained before, it's about maintaining brand control. But entering the hospitality channel is a thoughtful approach that is beneficial to the brand for two reasons. First, it obviously brings in a new revenue stream, with a B2B channel that allows the brand to grow volume sales while steering clear of retail's tight margins. It likely isn't the main driver of this decision though. Indeed, from a brand perspective, it enables Typology to grow its reach and unlock brand trial with international hotel guests who may not be familiar with the brand.
'When the partnership opportunity came up, it appeared to me as a very good way to have curated places — but not necessarily shopping destinations — where people can experience our products in a different way, as a complement to our online experience rather than as a distraction to our brand-building exercise,' shared Li.
In partnering with a hotel group rather than a retailer, Typology founder Ning Li shows that there are other, more innovative and maybe complementary ways to grow brand reach and trial. By developing a range of hair and body care products for premium boutique hotel destinations, Typology is extending its brand beyond its own ecosystem without diluting its equity. MGallery is a range of upscale boutique hotels that shares a similar ethos with Typology, focusing on quality and elevated lifestyles with an approachable yet premium feel.
'As we are in this momentum, we want to have a very few but really curated partnerships,' said Xavier Royaux, chief marketing officer of MGallery Collection, to WWD.com, adding that 'We have the same approach on wellness and beauty. We are about quiet luxury.' This complementary vision allows Typology to expand its brand in a coherent way and creates a new brand touchpoint that will enhance customer experience for hotels while potentially recruiting new brand customers.
By introducing its brand and providing an elevated personal care routine to guests of the MGallery Collection hotels, Typology is enhancing its visibility and allowing for product experimentation while maintaining brand integrity. Both parties are benefiting from such collaboration, enabling MGallery to provide a differentiated, elevated routine to its guests while helping Typology reach new audiences globally, boosting brand visibility and affinity. Hospitality is a great way to make product placement extremely relevant both for the brand and consumers, in a setting that clearly feels more exclusive than retail shelves.