Insight certainty 4/5 debate potential 2/5

Modern brand building centers on digital attention rather than retail shelf space

Joey Shamah · e.l.f. Cosmetics: Joey Shamah. The Dollar Store Formula That Built a Cosmetics Giant · Jun 29, 2026 · at 1:11:28

e.l.f. Cosmetics co-founder Joey Shamah compares launching a cosmetics brand in the early 2000s to launching one in the modern digital media environment.

0:00 / 0:23exact quote · 23.1s
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“I think when we created the brand in 2002 and three and four, our biggest obstacle was how are we going to get space in a retail environment controlled by four guys? I think today, now it's how are you going to own the most amount of attention from the consumer on Instagram, Snapchat, and Meta.”

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More from Joey Shamah

Insight
Basic cosmetics manufacturing costs 35 cents across the industry, says Shamah
“Well, that's what it, is what I'm trying to say. That's what it costs. Like, that's how much it costs everybody. Now, yes, you can put active ingredients, and yes, this was 25 years ago, and yes, there are more expensive componentry and finishes and all that, …”
Joey Shamah Jun 29, 2026 ▶ 11:23 e.l.f. Cosmetics: Joey Shamah. The Dollar Store Formula That Built a Cosmetics Giant
Insight
Retailers resisted $1 e.l.f. makeup fearing customers would trade down, says Shamah
“One of our biggest obstacles in the early years was retailers afraid to put our product on shelves. Cause they didn't want to trade the customer down. If they're selling a six dollar lip gloss and I'm selling a dollar lip gloss and they customer buys mine over…”
Joey Shamah Jun 29, 2026 ▶ 16:08 e.l.f. Cosmetics: Joey Shamah. The Dollar Store Formula That Built a Cosmetics Giant
Assertion Not checkable as stated
Failed premium drugstore lines from Revlon and L'Oreal enabled e.l.f.'s retail expansion
“Revlon launched a brand called Vital Radiance. Now you probably don't remember, ever heard of it. And L'Oreal launched a brand called Hip to compete with Mac. And the major premise of both those brands was we are going to sell more expensive cosmetics in the d…”
Joey Shamah Jun 29, 2026 ▶ 52:23 e.l.f. Cosmetics: Joey Shamah. The Dollar Store Formula That Built a Cosmetics Giant
Insight
Cosmetic formulations are cheap; packaging determines $1 makeup viability, says Shamah
“Basically what we learned really early on is when you break down the cosmetics to formulations and componentry, formulations, yes, you can hit that price point. The real artistry, if you may, is in the componentry, where we couldn't afford metal, we had to go …”
Joey Shamah Jun 29, 2026 ▶ 8:31 e.l.f. Cosmetics: Joey Shamah. The Dollar Store Formula That Built a Cosmetics Giant
Disclosure
Shamah: e.l.f. Cosmetics targeted 35-cent COGS and 59-cent wholesale price
“So it's about, it was about half of that, because our target goods cost was about 35 cents. I think back to the simplicity angle, everything we sold it for 59 cents, so they could retail it for a dollar.”
Joey Shamah Jun 29, 2026 ▶ 11:02 e.l.f. Cosmetics: Joey Shamah. The Dollar Store Formula That Built a Cosmetics Giant
Disclosure
e.l.f. co-founder Scott Borba developed products while employed by competitors
“Scott was, in, in full disclosure, still working for other cosmetic companies, but working for us on the nights and weekends. He was doing the product development. So, yes, we did use my father's apparel office.”
Joey Shamah Jun 29, 2026 ▶ 12:16 e.l.f. Cosmetics: Joey Shamah. The Dollar Store Formula That Built a Cosmetics Giant
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