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How Sarah Jo’s Promotes Equity and Inclusion for Minority-Owned Beauty Brands

How Sarah Jo’s Promotes Equity and Inclusion for Minority-Owned Beauty Brands

There are an overwhelming number of haircare, skincare and beauty products to choose from, but overwhelming doesn’t translate to effective. Everyone struggles with weeding through enticing branding and creative marketing to identify which products deliver desired results. For minorities, this challenge is even more trying, as our skin and hair care needs are unique. In addition to the lack of effective products, minority and black-owned beauty brands obtain an alarmingly low percentage of VC funding and retail shelf space.

Let’s dive into the $2 billion+ area of opportunity in better-serving communities of color—and how Sarah Jo’s Beauty Chateau is leveling the playing field.

The Why
Looking to be the change you want to see in the world? How and where you spend your money can ignite change, empower equity, and establish generational wealth.

Many minority-owned businesses are born organically. A savvy entrepreneur-to-be begins making their own products, gifting them to friends and family. Their products are generally made with naturally derived ingredients and in formulas that have been passed down through the generations. Word-of-mouth referrals lead to sales and a business is launched!

Although their products address the unique skin, cosmetic, and haircare needs other brands aren’t addressing—most of these independent brands don’t make it far. This isn’t because their products underperform. And it’s not only because the beauty industry is a crowded marketplace. It’s often because investors and retailers fail to prioritize the wants, needs, and revenue-generating potential of black, brown, and Asian consumers.

We’re a Fraction of Research and Testing
When it comes to cosmetics, facial products, and hair care products, most are formulated for and tested to meet the needs of Anglo skin and hair textures. Ethnic minorities are typically a fraction of the research group. Too few brands consider creating and testing full lines for minorities as a risky or low-ROI investment.

This is an area of opportunity because:

  • Makeup—color matching and color saturation are “off”, muted, or unavailable for non-Anglo consumers.
  • Haircare—black, curly, and Asian hair doesn’t respond well to standard and synthetic haircare product ingredients.
  • Skincare—anyone can have sensitive skin, but our skin tends to be more sensitive and has unique hydration requirements.

The Facts
Addressing racial inequity in the beauty industry is an estimated $2.6 billion opportunity, that could go to minority-owned beauty brands that understand the unique skin and hair care needs of their demographic.

The justification is often that the minority beauty market is too small, but the data is clear. According to McKinsey’s Institute for Black Economic Mobility (BEM), black Americans alone spend $6.6 billion dollars per year on skincare and beauty products. Not bad for a demographic that makes up just over 11% of the market! Unfortunately, only about 2.4% of that revenue goes to black-owned businesses.

Other notable BEM findings include:

  • Of the 213 VC-backed beauty companies at the time of the study, only 16 were black-founded.
  • Black brands raise a median of $13 million in VC funding, compared to $20 million by non-black beauty brands.
  • Black-owned beauty brands’ median revenue is 89x higher than their non-black counterparts.
  • Only between 4 and 7 percent of beauty departments carry black brands.
  • Minority consumers must travel 21% further to access specialty products.
  • Only 13% of cosmetic sales associates can speak to the unique needs of minority consumers.
  • Black and brown consumers are 5.7x more likely to be dissatisfied with cosmetic colors.
  • Black and brown consumers are 3 times more likely to be dissatisfied with skin and hair care products.

It’s a double-edge sword though, as most of the small skincare and beauty companies are founded by women. Regardless of their ethnicity, women only capture around 2% of VC funding. Latina and black founders across all industries capture between 1 and 2 percent of VC funding. Asians capture a much higher percentage of VC funding than black and brown business owners, but again—women of all ethnicities only capture 2% of funding.

The Fix
While you may not be able to walk into a retailer to find everything you need as a consumer of color—it’s easier than ever to find products made just for you!

There’s no shortage of minority-owned skincare companies that sell their premium products online. Supporting these brands improves the quality of your products while driving equity. And when minority-owned beauty brands perform research and testing, ethnic minorities are the primary demographic!

This drives inclusion, but we don’t exclude our fair-skinned brothers and sisters. In fact, due to the higher likelihood of natural ingredients, far more of the products we formulate are safe and effective for all.

Supporting these independent companies is an investment in yourself and the brand you buy from. It empowers minorities to pursue their dreams, grow their business, and create new jobs—while improving the quality of your skincare and beauty products!

How Sarah Jo’s Supports Black and Minority-Owned Beauty Brands
Instead of waiting for change, we are the change.

Sarah Jo’s Beauty Chateau was founded by Serial Entrepreneur and Philanthropist Natasha Jordan. It’s a marketplace and community for black and minority-owned beauty brands and the clients they serve. We believe that every shade of beauty is unparalleled and that minority-owned skincare companies deserve to thrive. As consumers, we shouldn’t have to compromise quality because it’s all we can find on the shelf.

Our marketplace supports equity and access for all!

We expand your reach to the consumers your products are formulated for. This grows your business while improving the quality and outcomes of skincare and beauty products for your consumers. Marketing is built-in and you can join our marketplace for either 6 or 12 months at a time.

Reach out today to learn more!

Align your spending with your values by supporting minority and black-owned beauty brands. Stop wasting money on products that don’t work, as the vetted hair and skin care products we sell are made just for you! Check back soon as we’re always adding new beauty brands.

Browse our product now!

Sisters are doing it for themselves—since skincare companies and retailers aren’t prioritizing minority needs, we are!

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