Key Takeaways:
When Ami Colé announced it was winding down operations earlier this year, the news hit the beauty industry hard. The brand, celebrated for its clean formulations and authentic storytelling, had become a symbol of what modern indie beauty could be. Think community-driven, culturally resonant, and unapologetically purpose-led. Not long before that, Athr Beauty, once a pioneer in the “clean” category and a fixture in prestige retail, also shuttered after up to five years in business. A few months ago, Youthforia closed down business.
These brands’ stories amplify a growing concern in the beauty industry, especially post-pandemic: How do small, fast-growing brands manage scale, specifically around entering major retail chains, without losing the brand’s essence or, worse, its entire business? The beauty market is fiercely competitive, now valued at over $625 billion globally, with indie players driving much of its innovation and excitement. Yet, as retail partnerships expand and investor pressure mounts, operational cracks often appear.
Retail Dreams Versus Retail Reality
“Gaining shelf space with the right retail partner is a relatively long process. One that requires preparedness, perseverance, and patience,” Robin Albin, Founder of branding agency Insurgents and former SVP of Conceptual Innovation at Estee Lauder, said to BeautyMatter. “Only a rare retailer will commit in the first meeting. It’s like dating; you need to win them over.”
However, once a brand wins that coveted placement, the real work begins. “There’s no such thing as a free launch,” Albin said. “Retailers expect brands to pay for co-op marketing spend, staffing, commissions, sampling, GWPs, employee discounts, and gratis. The up-front costs can result in barely break-even financials that can extend for a year or more, until sales volumes ramp up. The math doesn’t work until you have real volume.”
Paula Floyd, founder and CEO of Headkount, a retail agency with a portfolio of brands including Glossier, Patrick Ta, and rhode, agreed that financial discipline and a robust operational backbone are key to survival. “Hands down, a well-run supply chain organization is essential for brands to meet retailer expectations, expansion commitments, and stay on target to hit their sales forecast,” she told BeautyMatter. “Many newer brands lose momentum by leaving valuable open-to-buy dollars tied up in excess inventory. These issues often stem from supply chain missteps.”
Floyd also added that the best investment a brand can make is hiring an experienced supply chain leader early on. “It will save them big money,” she noted. “We’ve seen brands without a proper supply chain. Their sales spike up and down fast, making it tough to understand the sales trend.”
Additionally, according to Albin, many early-stage founders chase what she calls “The Triple Gets”: Get funded. Get into a major retailer. Get acquired by a major player. “They often do this without getting their [act] together,” she said. “I’ve seen founders pop champagne over their Sephora launch and quietly shut down 18 months later, crushed under chargebacks and promotional spend they never saw coming. Landing Sephora means you’re entering an operational thunderdome that can expose every weakness in your brand creds, supply chain, margins, and cash flow.”
Indeed, the allure of rapid retail expansion can obscure the realities of managing cost, scale, and brand coherence. Multiple industry sources estimate that only about 20%-30% of indie beauty brands grow to scale; many face failure early on, with estimates of about 80% of new product launches not surviving beyond 12 months, and around 22% of cosmetics-store retail points closing in their first year—all often due to underestimating marketing demands, poor inventory management, or unclear differentiation.
Growing Intentionally, Not Impulsively
“While many retailers have excellent incubators to help create cool indie brands, the truth is retailers are not brand builders; their brands are their stores,” Albin said. “When Sephora features you in their email or gives you endcap placement, they’re not building your brand equity, they’re building Sephora’s reputation as the place to find the hottest, trendiest brands.”
This dynamic means indie brands can easily fade once the honeymoon phase ends. “You might be this season’s darling, but there are fifty other brands waiting to take your spot,” she added. “The retailer has zero incentive to help you maintain momentum once you’re past that honeymoon phase. That’s your job.”
The lesson, Albin emphasized, is that founders can’t outsource their customer relationships to retailers. “If your brand only exists because a retailer is propping you up, you don’t really have a brand, but a product line that’s renting shelf space,” she said. “Real brand equity means customers seek you out regardless of where you’re sold.”
Floyd echoed that sentiment, warning against chasing distribution before demand. “Evaluate the health and growth of your DTC business,” she advised. “Are consumers familiar with and engaged with your brand? Many brands think the retailer will do this for them, but it’s up to the brand to create awareness. Otherwise, your products may gather dust bunnies on the shelf.”
For these experts, sustainable growth comes down to intentionality. Floyd cautioned against rushing into multiple retail doors too quickly. “A key red flag is when brands attempt to enter too many retail doors without a proven rollout strategy or the healthy budget required to support marketing, sales, and operational investments,” she said.
Albin also pointed out the importance of patience. “Sometimes the right answer is ‘not yet,’” she explained. “I’ve seen brands turn down Sephora and come back 18 months later in a much stronger position, and got better terms. Retailers will still be there if you’re building something real.” She added that sometimes growth is slow and steady. “Category-defining companies take more than a few years to build. Branding takes time, thought, and investment. Brand-led companies go the distance.”
Staying True to the Brand’s DNA
These experts also stressed that maintaining brand identity amid rapid growth is non-negotiable. “A common mistake beauty founders make when navigating retailer demands, whether related to marketing spend, exclusivity, or production timelines, is losing sight of their brand DNA,” said Floyd. “Retailers often push trends or encourage brands to produce products they never intended to make. When founders give in, they risk compromising their uniqueness and consumer trust, trading true innovation for short-term gains.”
Albin agreed, arguing that brand drift is one of the most dangerous outcomes of scaling too fast. “Founders often land on a positioning too quickly, then change it, and change it again,” she said. “A great brand starts with a great positioning. Then stay the course. Be sure your entire organization, from team members to vendors, is rowing in the same direction.”
As consumer expectations rise and competition intensifies, the next generation of indie beauty success stories will likely be those that combine creative storytelling with operational excellence. The market rewards innovation. “The ones that endure are those that prioritize product innovation, scale with intention, and carefully select retail partners who align with their consumers,” Floyd concluded. “They remain true to their identity rather than chasing short-lived viral moments.”
The indie beauty space has never been short on creativity, but the next phase demands as much operational acumen as it does artistry. The industry has currently found itself in a landscape where visibility often outpaces viability. However, the brands that endure will be those that balance ambition with restraint. Building a business that lasts means scaling deliberately, protecting brand identity, and mastering the mechanics of retail before chasing reach.
