The men’s skin care brand Disco, which launched in 2019 with a mission to make grooming products that are natural, vegan, and cruelty-free, has announced that it has shut down and filed for Chapter 7 bankruptcy. The news came as a shock to many fans and customers of the brand, who praised its products for being effective, affordable, and eco-friendly.
What Went Wrong for Disco?
According to the founder and CEO of Disco, Benjamin Smith, the brand faced several challenges that led to its downfall. In a LinkedIn post, Smith shared some of the reasons why Disco failed to survive in the competitive and fast-changing beauty industry.
- The brand’s neutral and minimalist aesthetic did not resonate with men at scale, especially in a market that is saturated with more colorful and expressive brands.
- The brand relied too much on its hero product, the charcoal face scrub, which accounted for 70% of its sales. This made it difficult to diversify its product portfolio and create loyal customers who would buy other products from the brand.
- The brand struggled to raise more capital to fund its operations and growth, especially after the COVID-19 pandemic hit and disrupted the supply chain and consumer demand. Smith said that the brand attempted to raise capital, underwent three failed acquisition processes, and explored restructuring through Chapter 11 bankruptcy, but none of these options worked out.
- The brand’s debt provider foreclosed on it during the summer of 2021, leaving the brand with no choice but to shut down and liquidate its assets. Smith said that this resulted in the loss of millions of investor capital from friends, family, close connections, and funds he respected and trusted.
What Does This Mean for the Sustainable Beauty Industry?
The demise of Disco is a sad and unfortunate outcome for a brand that had a noble vision and a promising start. However, it does not mean that the sustainable beauty industry is doomed or that consumers are not interested in eco-friendly products. On the contrary, the demand for sustainable beauty products is growing, and so is the number of brands that are offering them.
According to a report by Grand View Research, the global natural and organic personal care market size was valued at USD 13.33 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.8% from 2021 to 2028. The report also stated that the increasing awareness among consumers about the benefits of natural and organic ingredients, the rising environmental concerns, and the growing preference for ethical and cruelty-free products are some of the key factors driving the market growth.
Some of the leading brands in the sustainable beauty industry include REN, Aveda, La Bouche Rouge, Tarte, Gisou, and Humanrace. These brands have been innovating and creating products that are not only natural, organic, and cruelty-free, but also circular, refillable, and biodegradable. They have also been collaborating with sustainability influencers, such as Nicole @veganbeautygirl, Vicky @kabukirine, and Justine @justinejenkins, who have a large and engaged following on social media and who advocate for green beauty practices.
What Can We Learn from Disco’s Story?
Disco’s story is a cautionary tale for any brand that wants to succeed in the sustainable beauty industry. It shows that having a good product and a good intention is not enough to survive and thrive in a competitive and dynamic market. It also shows that brands need to be adaptable, flexible, and responsive to the changing needs and preferences of consumers, as well as the external factors that affect the industry.
Some of the lessons that we can learn from Disco’s story are:
- Brands need to have a clear and distinctive brand identity that sets them apart from the crowd and that appeals to their target audience. They need to communicate their values, mission, and personality through their products, packaging, marketing, and customer service.
- Brands need to have a diverse and balanced product portfolio that caters to different needs, preferences, and occasions of consumers. They need to offer products that are complementary, versatile, and innovative, and that can create repeat purchases and loyal customers.
- Brands need to have a solid and sustainable business model that can support their operations and growth. They need to have a realistic and achievable financial plan, a reliable and ethical supply chain, and a loyal and supportive investor base. They also need to have contingency plans and backup options in case of unforeseen circumstances or challenges.
- Brands need to have a strong and authentic online presence that can connect with consumers and influencers. They need to leverage social media platforms, blogs, podcasts, and other digital channels to showcase their products, share their stories, and engage with their communities. They also need to collaborate with influencers who share their values and vision, and who can amplify their message and reach.
The Future of Sustainable Beauty
The sustainable beauty industry is not going anywhere. It is here to stay and to grow. Consumers are becoming more conscious and discerning about the products they use and the impact they have on the environment and society. Brands that can meet and exceed their expectations, and that can adapt and innovate in the face of change, will be the ones that will succeed and thrive in the future.
What do you think about Disco’s story and the sustainable beauty industry? Do you have any favorite brands or products that you use or recommend? Share your thoughts and opinions in the comments section below. We would love to hear from you.
