The Challenge

Peach & Lily, a trailblazing K-beauty skincare brand, aimed to expand its market share in the highly competitive beauty industry. Despite having a loyal customer base, the company faced several hurdles:

1. A crowded skincare market with numerous established and emerging brands

2. High customer acquisition costs limiting scalability

3. The need to educate consumers about K-beauty philosophies and ingredients

4. Building trust with skeptical first-time buyers in the premium skincare segment

"We were looking for a partner who could help us cut through the noise in the beauty space and showcase the unique benefits of our K-beauty products to a broader audience," said Alicia Yoon, Founder and CEO of Peach & Lily.

Our Approach

We developed a comprehensive digital marketing strategy that leveraged Peach & Lily's unique position in the K-beauty market:

1. Targeted Audience Segmentation: We identified and focused on skincare enthusiasts interested in innovative, gentle, and effective products.

2. Educational Content Marketing: We created in-depth content about K-beauty routines, ingredients, and Peach & Lily's unique formulations.

3. Influencer and Expert Partnerships: We collaborated with skincare experts, dermatologists, and beauty influencers to build credibility and reach.

4. Personalized Shopping Experience: We implemented a skincare quiz on the website to provide personalized product recommendations.

The Journey

Months 1-6: Establishing the Foundation

• Focused on audience research and content creation

• Tested various ad creatives and messaging across platforms

• Implemented the skincare quiz and analyzed user data

• Baseline metrics:

  • ROAS: 5.2X

  • Conversion Rate: 2.46%

  • Cost Per Acquisition (CPA): $21

Months 7-12: Scaling and Optimization

• Optimized ad campaigns based on initial data

• Expanded influencer partnerships and expert collaborations

• Implemented advanced retargeting strategies

• Key metrics after 12 months:

  • ROAS: 7.1X

  • Conversion Rate: 3.1%

  • CPA: $13.24

Months 13-18: Maximizing Efficiency and Reach

• Focused on high-performing channels and audiences

• Introduced a loyalty program with exclusive K-beauty education

• Optimized for mobile users and implemented AR try-on features

• Final metrics:

  • ROAS: 8.5X

  • Conversion Rate: 3.5% (42% increase)

  • CPA: $8.82 (58% reduction)

The Results

After 18 months, Peach & Lily achieved remarkable growth:

• ROAS: 8.5X, generating $3,825,000 in revenue from $450,000 ad spend

• 51,000 conversions with an average order value of $75

• Conversion rate increased by 42%, reaching 3.5%

• Cost per acquisition dropped by 58%, from $21 to $8.82

Client Testimonial

"This partnership has been instrumental in Peach & Lily's growth story. We've not only expanded our customer base but also educated a wider audience about the benefits of K-beauty. The team's data-driven approach allowed us to scale efficiently while maintaining the integrity of our brand and products," said Alicia Yoon, Founder and CEO of Peach & Lily.

Key Takeaways

1. Education drives conversion: In-depth content about K-beauty philosophies and ingredients helped convert curious browsers into loyal customers.

2. Personalization is key: The skincare quiz significantly improved user engagement and product recommendations.

3. Expert validation builds trust: Partnerships with dermatologists and skincare experts boosted credibility in a skeptical market.

4. Continuous optimization pays off: Regular refinement of targeting and creative strategies led to substantial improvements in ROAS and CPA.

Conclusion

Our 18-month collaboration with Peach & Lily demonstrated the immense potential of K-beauty in the mainstream skincare market. By leveraging data-driven strategies, educational content, and personalized experiences, Peach & Lily successfully expanded its market presence and brought the benefits of K-beauty to a wider audience. This case study showcases how a niche beauty brand can achieve significant growth and efficiency in a highly competitive industry through strategic digital marketing efforts.