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The Ordinary

Skincare

Use this company profile to study how a real business combines operating structure, monetization, and growth strategy. Look at the full stack, not just one model in isolation.

Business Model

Direct-to-Consumer (D2C) (owned distribution model , direct brand model , direct commerce model , customer-owned relationship model) , E-commerce Brand (digital-first retail brand , online-first brand , internet-native commerce brand)

Business Model

Direct-to-Consumer (D2C) (owned distribution model , direct brand model , direct commerce model , customer-owned relationship model) , E-commerce Brand (digital-first retail brand , online-first brand , internet-native commerce brand)

Revenue Model

Product Sales (product sale , direct sale , one-time sale , unit sale , retail sale , wholesale sale , ownership sale) , Subscription (recurring fee , monthly subscription , annual subscription , recurring access fee)

Pricing Model

Premium Pricing, Bundled Pricing, Subscription Discount Pricing

Growth Mechanism

Influencer Growth , Performance Marketing , Affiliate Growth Engine

1. BUSINESS OPERATING MODEL

- Direct-to-Consumer (D2C): Sells products directly through its website and e-commerce platforms.
- Minimalist Approach: Focuses on quality ingredients with no-frills packaging.
- Product Transparency: Offers detailed information about the ingredients used in each product.
- Affordable Luxury: Provides high-quality skincare at accessible prices.
- Global Reach: Available in multiple international markets via online and retail platforms.

2. Brand Intel

- Affordable, High-Quality Skincare: Offers effective skincare solutions at affordable prices.
- Ingredient Transparency: Emphasizes full ingredient disclosure for informed consumer choices.
- Simplicity: Minimalist design and clear labeling appeal to those seeking straightforward skincare.
- Targeting Educated Consumers: Appeals to consumers knowledgeable about skincare and ingredients.
- Emotional Connection: Builds trust by focusing on long-term skin health over short-term trends.

3. REVENUE MODEL

- Direct Product Sales: Revenue from online sales through its website and platforms like Sephora.
- International Expansion: Generates income from global markets via online and physical retail partnerships.
- Volume-Based Pricing: Focuses on affordable pricing to ensure widespread consumer adoption.
- Private Label and Partnerships: Collaborates with other skincare brands to expand revenue.

4. GROWTH CAMPAIGNS

- Ingredient Transparency Campaign: Built a loyal customer base through transparency about ingredients.
- Social Media and Influencer Marketing: Gained visibility through influencers and organic social media promotion.
- The Ordinary Effect : Gained viral popularity through before-and-after user experiences shared online.
- Targeting Skincare Enthusiasts: Uses content marketing to attract educated skincare consumers.
- Global Expansion: Increased reach by entering new markets and leveraging online platforms.

5. MARKETING

- Social Media Marketing: Engages customers on platforms like Instagram, Twitter, and Facebook with educational content.
- Influencer Partnerships: Partners with skincare influencers to drive awareness and sales.
- Content Strategy: Educates customers on ingredients and their benefits via content shared on various platforms.
- SEO and Organic Traffic: Attracts organic search traffic with valuable skincare-related content.
- Email Marketing: Uses email campaigns to inform customers about promotions, new products, and skincare tips.
- Educational Workshops: Hosts workshops and webinars to educate on ingredient transparency and skincare knowledge.

6. HOW THEY IMPLEMENTED SAGE BRAND ARCHETYPE

- Educational Content: Empowers customers with knowledge about skincare ingredients and their benefits.
- Transparency and Integrity: Aligns with the Sage archetype by providing clear and honest communication.
- Authority in Skincare: Establishes itself as an authority with well-researched, scientifically backed products.

7. HOW THEY CREATED A DEEP BRAND VIBE

- Philosophical Commitment: Focuses on long-term skincare results, creating an emotional connection.
- Transparency as a Core Value: Builds trust by prioritizing authenticity and integrity in its products.
- Thoughtful Engagement: Fosters respectful interactions with customers, ensuring they are informed and valued.

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