DTC POD: Unicorn Beauty Powerhouse Dermalogica's Formula for Global Success

This week, we’re joined by Aurelian Lis, Global CEO of the skincare brand Dermalogica.

With a background in atomic physics, laser optics, and extensive experience in the cosmetics industry, Aurelian has led Dermalogica to significant growth and innovation since taking the helm post-acquisition by Unilever.

In this episode of DTC Pod, Aurelian breaks down the strategies that have driven Dermalogica's success, including delegating authority to the right people, empowering employees to innovate, and effectively integrating AI and machine learning across various functions.

He stresses the importance of maintaining genuine personal connections with customers and staying true to the brand’s core values while proactively adapting to new trends, tech, and consumer preferences.

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Fav Quotes from Episode #340

“So many people talk about personalization, but how do you get personalization to be real? How do you get it to be meaningful? You know, what we believe is very much that the element of human touches is the way that a customer acknowledges that the personalization is relevant because you have acknowledged them as a person."

— Aurelian Lis, 00:27:28 - 00:27:43

“One of our biggest competitors just put out lots of stories of why, or the fact that they just went to something called Amazon Prime, you know, Prime Beauty and a 3P. It's a marketplace with some premium effects. And it was great to see that they did it. But the interesting thing was not why they did it in 2024, but why didn't they do it in 2018 when we did it? Why, why are they five years late? I mean, that is an interesting thing for me, right? Is how, how do you really sort of realize that you're at the top, you're moving when you need to move, and you haven't glued yourself to the floor so that you're five years late?”

— Aurelian Lis, 00:35:42 - 00:36:25

3 Best DTC Practices from Aurelian Lis

1. Innovate across all business functions, not just product

Innovation is the lifeblood of any successful DTC brand, but it's essential to recognize that it extends far beyond product development alone.

To stay competitive and drive growth, you need to foster a culture of creativity and experimentation across every aspect of your business, from marketing and customer experience to operations, technology, and beyond.

Encourage your teams to think boldly and challenge assumptions. Give them the autonomy and resources to test new ideas, iterate based on data, and pursue continuous improvement.

Remember, innovation doesn't always mean grand, disruptive changes. Even small and incremental optimizations can compound over time to create significant impact.

By making innovation a core pillar of your DTC brand's DNA, you can build a sustainable competitive advantage that stands the test of time.

2. Leverage AI and machine learning to scale personalization

As your brand grows, delivering one-to-one personalization that customers have come to expect at scale can become a daunting challenge. This is where AI and machine learning comes in.

With these emerging tech, you can analyze vast amounts of customer data to gain insights into their behaviors, interests, and pain points. Use this knowledge to tailor product recommendations, content, and offers to each individual and create a sense of relevance and connection.

Take inspiration from Dermalogica's approach: they have used advanced facial mapping technology to offer personalized skincare regimens to over 2.5 million customers now, ensuring that each of them has received products and treatments that address their unique concerns. A few years ago, it wouldn’t have been possible to make every customer feel seen, heard, and valued this way.

Think about how you can apply similar principles to your own DTC brand. What data do you have access to? How can you use AI and machine learning to analyze this data and create personalized experiences for your customers at scale? Are there any specific pain points or needs your customers have that could be addressed through personalization? Let these questions guide your approach and strategy.

3. Keep the human touch alive

It's easy to get swept up in the allure of new tech and lose sight of the fundamental human element that underlies all great brands. However, as Aurelian Lis wisely reminds us, the most successful DTC companies are those that never forget the importance of genuine, person-to-person connection.

While AI, machine learning, and other emerging tech can help you scale and optimize your operations, they should always be balanced with authentic, empathetic interactions that build trust, rapport, and emotional resonance with your customers.

Consider how Dermalogica has built its brand around a network of highly trained skincare therapists who provide in-person treatments, education, and guidance to customers. These human touchpoints not only ensure a high-quality, personalized experience but also create opportunities for building relationships that extend far beyond the transaction itself.

At the end of the day, people buy from people, not just faceless algorithms or automated systems. So DTC founders and operators must find creative ways to balance the convenience and efficiency of technology with the warmth and authenticity of human interaction.