Products in the beauty and hair care space made by (and for) Black consumers had long been scarce on major retailers’ shelves — a lack that received new attention earlier this decade in the wake of George Floyd’s murder and the protests it spawned. In response, retailers including Sephora and Rent the Runway signed on to the 15% Pledge in June 2020, which called for retailers to reserve 15% of their shelf space for Black-owned brands.
The problem, as most retailers and brands know, is that simply placing products on shelves is no guarantee of sales success — particularly in the enormously competitive beauty category, and even more so given the highly specific needs of Black consumers. What’s needed are well-trained store associates who can connect customers to the right foundation for their skin color or the best product for their type of hair, and do so in ways that align both with the brand’s and the retailer’s messaging.
Enter Rose Neal Collective (RNC), a consulting firm specializing in just this type of support. Retail TouchPoints sat down with its Co-founders and Co-CEOs, Dwight Allen O’Neal and Karess Rosemé, to discuss how they are working to meet these challenges and helping brands, both large and small, take advantage of the enormous opportunities in this space.
Retail TouchPoints (RTP): What were some of the initial motivations for starting RNC?
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Karess Rosemé: Dwight and I were both working together in the beauty space and had very similar stories within our different executive positions — being in meeting rooms without people who looked like us, but having to advocate for people who dolook like us.
RTP: What skills do you find retailers are lacking when it comes to serving Black and brown customers?
Dwight Allen O’Neal: What we’ve seen happen with initiatives like the 15% Pledge is that companies are committed to supporting them — but they don’t know how to do it. It’s like the Gold Rush: Everyone is headed out West to find gold, but you need tools to mine and pan for it. And within the beauty space for Black and brown people, these retailers need tools as well. Rose Neal has stepped in to ensure that they are successful, because if they’re not, those brands will exit the retailer. Our message is that that aisle in the back where “our” products usually live can expand, and there will be more landscape for up-and-coming entrepreneurs.
My mom, for example, who still lives in Little Rock, Ark., wanted to get help to match her foundation [in a retail store]. It wasn’t that the store didn’t want to help her; it’s that they didn’t know how. They had no training or resources to do that. Additionally, in terms of marketing images, [Black people] need to see themselves in these images to see that [the product] is created for me.
[We, and many Black consumers,] find ourselves shopping at mom-and-pop beauty stores, because they have what we need — they have the products, I see myself, they understand me — compared to no effort made by the bigger retailers to make them feel comfortable with the products they need.
Rosemé: [Black cosmetic challenges] such as razor bumps, keloids, hyperpigmentation, as well as the differences in hair textures and hair types — as a consumer, if I’m going into a store and have questions about these concerns, I want to know someone can answer them and recommend products for them.
That’s why our flagship program is in-store sales and education support. RNC has really strong relationships with Sephora and Ulta Beauty at the corporate level, and they often recommend our services to brands — especially to those brands that haven’t previously had in-store support, either for financial reasons or because they’re novices in this space. We’ll ask the brands what their goals are in retail, and we can provide long-term support for specific events and education. Brands have different KPIs and engagement factors, and we dive into that.
RTP: What are some of the key challenges these brands face when they move into retail?
Rosemé: Many brand founders, especially those without any experience in retail, are so focused on the purchase order and initial order [for their products] that they don’t focus on replenishment, sell-through, and overall how to be successful in retail. They need a true and solid omnichannel strategy, including doing things that are experiential. They also need an online presence, so it’s important to know how their landing pages look on their retail partners’ sites. You want to provide a seamless and cohesive journey for the consumer, but if the in-store support/education element feels disjointed or disconnected, it can ruin the entire thing.
O’Neal: Small, independent brands can’t take the risk of making mistakes [with their in-store deployments] that larger brands can. We’re involved in ensuring that you’re ready to go into retail. [We also alert the brands] that going in-store is expensive, that they’ll be out of pocket for a while [because of different payment terms than in DTC retailing]. We tell people that it’s okay to start small and build. Everyone’s dream is to be in a major retailer, and you’ll get there — but make sure you’re ready. Going viral on TikTok isn’t the solution for every brand.
RTP: What’s your “pitch” to retailers who might be leery of trying out a new product?
Rosemé: Not only are beauty and hair care huge multi-billion-dollar industries, especially among Black consumers, but they have some of the highest replenishment and client retention rates. That’s built off of [Black consumers’ general] mistrust, because once they find something that works, they continue to purchase it — and evangelize it to everyone in their circle.
O’Neal: The Black consumer is loyal to the products they love, and they will use those products forever. My mom still has [beauty] staples she uses. [Black people] have had to do the research to find out what works for us; when we look at a product, we ask “Is this going to be for my hair type or skin concerns?”
RTP: What message would you give to retailers regarding how best to serve this subset of customers?
Rosemé: Don’t be afraid to be creative; sometimes small risks lead to big rewards, so don’t be afraid to change the layout of the store and try out different micro-concepts. Lean into something that’s different if you want to achieve something different.
When the 15% Pledge was launching, retailers tried to do everything the same [with Black-owned brands’ products], but trying to same formula and expecting the same results won’t work. They are entering a space where there are a lot of unknowns and uncertainty, and also mistrust from consumers, so retailers need to be creative to attract this customer.
