Entrepreneur

This Cosmetics Platform Looks To Brush Ahead After Securing $2M In Funding

The decision to purchase cosmetics is an emotional one that’s tied to the perception of one’s self. According to one study presented on The Business Insider, cosmetics brands are able to achieve high levels of consumer satisfaction when they strengthen positive emotions through the perception of ‘caring for oneself’ and by removing feelings of worry and guilt about not taking care of one’s appearance.

But before they do so, they first have to be able to subtly (emphasis on subtly) convince people that there is a need for them to improve or enhance their facial features and outlook.

Image Credit: http://www.kickvick.com
Image Credit: http://www.kickvick.com

Whether such an act is an acceptable practice is nonetheless debatable, but the fact of the matter is that people like to use cosmetics, and the ones that do are quite loyal to the brands that they use.

For those who’d like to purchase cosmetics without the hassle of having to dig through unwanted products or by shelling out huge amounts of cash all the time, they can turn to online platforms such as Hermo.

Hermo is one of Malaysia’s leading cross-border cosmetics e-commerce platform that aims to provide only the most popular cosmetics products, and it’s dedicated to helping women beautify themselves through their selection of premium cosmetics.

Image Credit: Hermo Facebook Page
Image Credit: Hermo Facebook Page

Hermo features a wide-range of renowned Asian and western brands, and they offer plenty of deals on premium and popular cosmetics brands through their website in both Malaysia and Singapore.

Along with offering regular priced items, Hermo also conducts flash sales, during which you can get your hands on premium cosmetics among other items at a much cheaper price. This, they believe, is a great way for consumers to discover trending styles before they ever become a mainstream trend.

They are able to do so by forging strategic partnerships with brand owners and distributors, and allowing them to establish flagship stores on their website. In fact, they became the first e-commerce supplier for L’Oreal brands online early this June.

Such partnerships allows Hermo to be the one-stop shop for the most popular cosmetic products for people that are interested in getting their hands on such products without being present at brick and mortar stores.

While Hermo is definitely an e-commerce platform, it’s also host to over 50,000 user reviews on various products and services. These reviews are all currently curated and presented on the Hermo Beauty Wall.

Image Credit: Hermo Facebook Page
Image Credit: Hermo Facebook Page

The differentiating factor between Hermo and competitors like Luxola is that Hermo primarily specialises in dealing with Asian cosmetics companies, much like newcomer Althea Korea. This gives them a more localised feel when they are being compared with other e-commerce platforms.

Even though people still consume cosmetics through brick and mortar stores, the fusion of the Internet and the smartphone definitely spices up the way people consume products and services.

When a consumer walks into a brick and mortar store, they are limited to only viewing brands and products that are within the confines of their inventory. Consumers that want a greater choice selection can simply hop onto e-commerce websites and be able to have a larger range of premium cosmetics that they can use to better “beautify” themselves.

According to TechCrunch, Ian Chua, the co-founder and CEO of Hermo said, “Hermo is more localised and curated towards domestic audiences in each respective country, so that the products promoted on the site and deals offered reflect local demand.”

In an effort to keep up with momentum and to expand their operations beyond the borders of Malaysia, Hermo managed to raise US$2 million in their Series A financing round led by Gobi Partners, a venture capital firm based in Gobi Partners.

Image Credit: TechCrunch
Image Credit: TechCrunch

Ian Chua said, “As Malaysia’s leading beauty vertical, we are excited to bring on Gobi Partners as our investor. Moving forward, we will expand regionally to meet the needs of more women in Southeast Asia. We believe that Hermo will be able to help more brands reach consumers as mobile technology gains momentum in the region, filling gaps between supply and demand in this market.”

This round of financing will be used to strengthen their product base, diversify their talent, and enhance marketing efforts and to establish regional offices outside of Malaysia to drive market operations momentum in Singapore while working on building its presence in the Indonesian market as well.

This round of founding will help Hermo to fine-tune their operations and focus on providing the possible service that they potentially can offer. There are many avenues that Hermo can tap in—subscription services, virtual make-up, and more. In fact, this funding could give them the bold boost they need to one-up other beauty sites, and revolutionise the way people view make-up. It would no longer just be face paint but an experience that even non-makeup people can try out because it might just end up being the “in” thing.

 

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