HOT SCOOP: Gloss.com Bites the Dust –Or Is It Taking A Powder– in JUNE! !LA STORY Gets the "Down Low" Blog!

Back in the  "dark ages" of the web, there emerged tons of new sites for women– particularly beauty ecommerce sites for women. Remember Eve.com? Beautyscene? Beautyjungle? Eve and Beautyscene died ignominious deaths. Beautyjungle was swallowed up by Beauty.com which was in turn swallowed  by Drugstore.com but still maintains as a distinct identity. Sephora emerged first  as a brick and mortar store and then  launched online. Gloss.com emerged as a viable alternative  because it was created by a collection of former execs from a variety of high end department stores who sold out to Estee Lauder but since developed a cooperative with cosmetic, skincare and fragrance giants: Clarins, Chanel and Thierry Mugler.

Brands involved from Estee Lauder included Bobbi Brown, Clinique, Darphin, Estee Lauder, Jo Malone, La Mer, LAB Series, MAC, Origins, Prescriptives, and Rodan+Fields  along with several MAJOR heavy hitting fragrance brands (Missioni, Sean John, Kors and more) — each a major brand and entity in its own right and owning a chunk of beauty real estate.

Prepare yourself for some bad news and (hold onto your holy grail Gloss products).. because Gloss.com is going to fold come June 2007.  YUP.. That’s right. While it was intimated in WWD earlier last month, it’s official and I have held the lid on this story till now.

Why are they shutting down? According to the "powers that be" at Gloss.com, their market analysis showed that the online business was growing dramatically, but unfortunately Gloss.com business was the least competitive and showed the least growth amongst its competitors including their own brand sites and partner brand sites.  Rather than keep slogging through the quicksand that Gloss has become mired in, they are going to focus on those sites doing well and skip the rest.

While Gloss.com has shown double -digit sales figures and Clarins in particular has seen  significant sales (approximately $3,000,000.00 in 2006), the website seems to be faltering in showing a return on its investment. While it was created during an internet boom time – and survived the dot com/e-commerce crash– it has required significant time and dollars to keep it going.

When one factors in the Estee Lauder Corp  sites along with the Chanel sites already operating, one wonders what took so long for Gloss.com HQ to wake up and smell the lip gloss.

Fret not if you are a Clarins or Thierry Mugler lover! Websites for both brand will be launching soon in France and the U in May with other global web portals rolling out over the next couple of years.  For Clarins customer base, it will be a more user friendly site.

For those Thierry Mugler fans, there is a site coming this month, shopthierrymugler.com, that is launching both in the US and France.

So my peeps, if you are a Gloss fan or have outstanding orders, get to it and stock up. Don’t think there will be any sales of outstanding stock since these are high powered brands that can shift stock to stores. However I could be wrong in that assumption.. but I wouldn’t put rest my mascara on that one.

The next question is how will this affect the other beauty e-commerce sites out there and those that are shaky, will they be able to stay the course? How will this affect the Chanel relationship with Sephora? Will this affect ANY of the Estee Lauder relationships with Sephora and will you see any beefing up of the cosmetic entities mentioned here in the different department/specialty store websites? How will this affect Beauty.com as well since they are known for their niche brands. Lots to think about boys and girls.. lots to think about.

Remember– you heard it hear first.

Stevie Wilson

L.A. Story

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Author: Stevie Wilson

Digital and social media pioneer and visionary meets disruptive innovator with a passion for topics and conversations that reveal insight into the So. California lifestyle. LA-Story.com appeals to a global audience (from Asia to Africa; Middle East to Europe, No. America to Latin America) in variety of topics and sectors: style (beauty and fashion), health & fitness, entertainment (movies, TV, books, music and more) ; food, beverages & spirits; IT Security + tech , travel, special events (red carpet to green carpet) I am known for interviews ( podcasts , textual and video conversations) with notables, celebrities and companies about interesting products & brands; profiles about places that reflect the So. CA vision and special events (Oscars, Golden Globes, Emmys & other events that illustrate celebrity , athletes and home-town "stars" lifestyle and initiatives.) that illuminate the insider's perspective of So. California's lifestyle . Learn what's hot in Los Angeles, NYC, MIami and stops closer to home that make this blog a must-read because the voice, attitude, authenticity and ability to grasp the essence of most sectors, brands & products make it easy for consumers to earn what makes a brand, initiative or product unique - whether, food, fashion or finance (or any other topic "on the table") With 15+ Years online launching websites, online magazines, forums, products & brands, my voice, authenticity and ability to grasp the essence of most sectors, brands & products make it easy for me to share what the online audience and consumers alike want to learn- how to shop, live and reflect the lifestyle they wish to emulate. Need to leverage digital and social media space? Reach out to me!

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