September 10, 2019
Fashionistas, take note: There’s a new brand in the beauty business—and it’s not sold at swanky cosmetics counters for big bucks, or at drugstores, either.
Launched last spring, Dollar General’s humble, $5-and-under Believe Beauty cosmetics line is available at the chain’s 15,000 locations nationwide—and it has gone viral, thanks to the raves of social media beauty bloggers.
According to a report by CNN, Dollar General partnered with a beauty manufacturer on the private-label line of lipsticks, eye shadows, foundations, nail polishes, and skin care essentials; and is giving it prime real estate at stores: It’s displaying the 150-product collection in dedicated sections at the end of store aisles, making it easy for customers to find.
The aspirational brand is “an important part of our strategy,” CEO Todd Vasos told the network news outlet.
Dollar General executives say they developed the brand to bolster the company’s hold on existing customers and improve its thin profit margins. Dollar General also hopes to draw Millennials with the brand. Millennials probably won’t post online about snacks or a new mop they bought at Dollar General, but they love showing off their new makeup online, CNN notes.
Dozens of Believe reviews on by beauty vloggers on YouTube already have racked up hundreds of thousands of page views. One 16-minute YouTube review from a beauty vlogger has 125,000 views. Instagram is flooded with more than 3,000 posts using “#believebeauty.”
All that social media attention means free advertising for Dollar General. It boosts the company’s image with younger shoppers and is helping lift the dollar-store empire.
“People like those kind of videos because it’s something different,” Taylor Horn, a blogger who reviewed Believe on her YouTube channel, told CNN Business. Her channel has more than 750,000 followers.
Dollar General is following a similar strategy to Walgreens, Target, Zara, Forever 21 and even 7-Eleven, CNN points out. These companies have all added their own in-house cosmetics lines in recent years.
Research contact: @CNN