Gross profit margin of over 60%! How to double sales volume of Amazon nail polish through short videos?

How to double sales volume of Amazon nail polish through short videos with a gross profit margin of over 60%!

For independent online sellers, TikTok undoubtedly provides a relatively good new traffic channel for small and medium-sized sellers; especially for popular categories on TikTok, each popular tag is a natural flow pool for attracting traffic.

As a popular category in the beauty and makeup industry on TikTok, nail art not only has extremely high marketing potential, but also has the advantage of creating content as a DIY product. On TikTok, the hashtag #nailart has been viewed more than 42.9 billion times. Established in 2015, the overseas nail art brand Modelones has gone from selling on Amazon to becoming a successful overseas brand in the nail art industry, with over 10 million online users in more than 30 countries. Its brand-related TikTok video views have successfully exceeded 100 million, and sales have doubled through short videos. As a new and innovative nail art brand, how has Modelones built brand strength beyond Amazon? How has Modelones successfully attracted traffic and converted it into sales data through TikTok? The high-profit and high-growth nail art market With the upgrading of consumption and the awakening of beauty consciousness, people’s pursuit of beauty no longer simply stays on the facial features, hairstyle, and body shape, but also becomes more refined in the pursuit of aesthetic beauty in every fine detail. As a new outlet in the beauty and makeup industry, nail art has extremely high market potential. For many novice entrepreneurs, most industries related to beauty have high entry barriers. Therefore, nail art, with its high gross profit margin (according to statistics, the gross profit margin of nail art is as high as 60% or more), low start-up costs, and low technical requirements, has become a popular business choice. According to TMR market research, the global nail care market is expected to reach $23.1 billion by the end of 2031, and is growing rapidly at a compound annual growth rate of 8%. Product innovation, the continuous growth of the adult market, and the increasing influence of entertainment media worldwide are the main driving forces behind this growth.

Speaking of products, nail polish is the most important part of the nail care market. In this segmented market, liquid nail polish has the largest market share, followed by gel nail polish. 1. Global market growth With women becoming more independent and investing a large portion of their disposable income in beauty and beauty products, sales of manicures are expected to grow in all geographical regions. In 2021, the Asia-Pacific region accounted for the largest share of the global nail care market, followed by North America. Due to various factors, there has been a surge in demand for nail polish with special effects and bold colors, and the Asia-Pacific region is expected to maintain its leading position in the nail care market throughout the forecast period, or for a long-lasting traditional manicure. Similarly, TMR analysts point out that several developing countries, including China and India, are increasingly using the latest finishes, including glitter polishes, matte finishes, and magnetic nail polish, which also increases the market share of the Asia-Pacific nail care market. 2. Social media trend In addition to the increasing interest in nail care and beauty care worldwide, TMR also points out that social media exposure is becoming increasingly important worldwide and is becoming a major growth driver for the nail care market. According to TMR, women are more exposed to beauty bloggers and KOL/KOC people through social media, which increases women’s interest in nail care. At the same time, although younger nail consumers are more likely to paint their nails to express their personality and keep up with current trends, older consumers are becoming more interested in products with nail care effects. From Amazon bestsellers to internet-famous brands In the process of going overseas, Modelones followed a similar experience to most overseas brands, entering overseas online platforms such as Amazon in 2015 and achieving good results in the nail category; after having a stable overseas user group, it began to layout independent websites. It is worth noting that the reason why Modelones stands out from most major celebrity brands that sell single nail polishes is that it chooses to cut into the entry-level combination category of nail art. Entry-level products often mean a huge market base. In other words, in the nail category racetrack, the entry-level kit that all novices may buy has the greatest potential and probability to obtain the greatest market benefit for emerging brands. 1. Portrait of the main crowd: consumer users of newly entered nail art categories When Modelones was creating explosive products to enter the market, it focused on an entry-level gel nail polish set, which includes nail polish, UV/LED lamp nail tools, and nail repair tools, which perfectly meets the needs of entry-level nail art users. After the discount, the price is around 30-40 US dollars, and the good reviews on Amazon have been maintained above four stars, with reviews exceeding 10,000. 2. Insights into the main consumer users: eager to enter and hoping for everything One-click convenient online shopping experience has become the trend of online consumer users today. People hope to complete all purchasing work in a short amount of time. For “lazy beginners,” the main package offered by Modelones allows most new users to start their nail art experience without doing too much research, becoming the main consumer psychological factor for Modelones to open sales. 3. High cost-performance competitiveness Compared with similar products on Amazon, Modelones also has the high cost-performance advantage brought by “Made in China”. For nail polish products with the same 10ml capacity, Modelones reduces the average price by 10 US dollars compared to competitors. Overall, Modelones has cut into the user needs of the nail market through entry-level selection, and has increased the gap with other competitors with high cost-effectiveness. As of 2023, Modelones’ annual sales have reached tens of millions of yuan, making it the most competitive overseas nail brand. Tiktok’s “going out” driving force With the rise of TikTok short videos, overseas brands have begun to look for incremental space beyond independent websites and e-commerce platforms. Social media and internet celebrities have become closer channels to consumers and can directly reach consumers more quickly. With a different promotion model from general media platforms, TikTok has become an ideal place for niche brands to have a voice. Even the voice of niche brands can be seen by users who like and are interested in them on TikTok, and can trigger relevant discussions. The reason why Modelones can quickly become popular on TikTok is due to its brand’s targeted marketing to interested users. For example, by adding topic tags, it releases nail-related videos under the #nailart tag to attract potential users interested in nail art. At the same time, Modelones also releases challenge activities on TikTok, cooperates with many nail art category red people for video marketing, attracts targeted users to interact with the brand, and obtain prizes and coupons. Currently, Modelones’ brand topic tag #modelones has accumulated a total of 195 million views on TikTok, and the official account has also attracted 540,000 followers. 1. TikTok video marketing forms a. Unboxing tutorial display The video with the highest playback volume of Modelones comes from the beauty blogger sarahelyse’s unboxing video. By demonstrating the effect of Modelones’ nail polish set in an affable tone, it allows TikTok users to better understand the product functionality and characteristics of Modelones, and increases the willingness to purchase. At the same time, Modelones also created videos related to removing nail polish to respond to the most interesting questions in the comments, increasing the interactivity of social media content. b. Z generation, Y2K interest catering According to the TMR report, nail art enthusiasts on TikTok will usually search for interest tags such as Kpop and Y2K styles. Therefore, in order to cater to user mentality, Modelones will use Kpop and Y2K’s current hot icons to create secondary nail art, which not only increases the topic flow of the platform account but also cuts into the intimate interest connection between the brand and users. c. Ambassador brand endorsement In the TikTok hotspots of nail art categories, in addition to various nail art tutorials with high popularity, the pursuit of famous nail artists by this type of user is also one of the social media characteristics of this category. Currently, the topic tag #nailartist has accumulated 6.3 billion views. In April 2023, Modelones specifically invited the famous nail artist Tom Bachik to become its official brand ambassador. As a celebrity nail artist, Bachik has worked with many top celebrities such as Selena Gomez, Jennifer Lopez, and Victoria Beckham. His joining has undoubtedly increased the popularity and reputation of Modelones in overseas nail brands.

BrandArk Brand Observation

In recent years, traditional forms have become increasingly difficult to reach consumers, and a brand must be constantly seen by consumers in order to generate long-term sales. The “interest-based” content distribution mechanism of the Tiktok platform undoubtedly gave many niche brands a strong marketing advantage, and Modelones’ success in becoming a popular brand can be attributed to the boost provided by the TikTok platform. For emerging brands, after completing the brand transformation process, the next challenge for Modelones is how to maintain brand loyalty and repeat purchase rates, and keep the brand’s lifecycle longer.

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