Officials at Art Naturals are always quite eager to talk about the upscale nature of their product lines. They proudly gush over just about everything from their fancy product packaging and their elite customer service to quality natural and organic ingredients as key points that make the Gardena, Calif.-based company unique from its many competitors in the marketplace.
Yet one thing that is decidedly not upscale about these natural and organic beauty products — and the ultimate difference between Art Naturals and its competition — is its affordable pricing structure, a difference that makes the items simply more accessible to a greater number of consumers, they said.
“When we started this company in July 2015, I saw a great opportunity to fill a niche in the skin care category,” said company founder and CEO Joseph Nourollah. “Just from my time I started to pay attention to this marketplace, I quickly came to understand what the consumer was looking for from this category, and that was great top-quality products, with excellent packaging, at good price points that they could afford.”
Nourollah’s story truly is a rags-to-riches tale. He dropped out of high school with just $400 to his name. Sensing an opportunity, and after learning about the different areas of skin care, he focused on the organic segment, seeing an excellent chance to develop a company there. First came the Internet strategy, and then the implementation of a comprehensive approach to traditional retailing.
Michael Elefant, Art Naturals’ chief sales officer, takes the story of the company’s founding a step further. “Joseph realized as a young guy that natural and organic products in this category have always been associated with high prices,” he said. “It got his wheels turning, and he realized that he could create a great company by offering high-quality merchandise at affordable price points.”
There was a step two in this process. Nourollah and his team needed to create a base from which to work from, which would allow the company to create the products and sell them at affordable price points. So, for the first year or two, Art Naturals focused on Internet sales.
“Getting into retail is a process that can take 6-to-8 months, if we are lucky,” Elefant said. “Our strategy was to go online with our product mix, build excitement and awareness with consumers there, and slowly get our products into retail as the consumer demand for the merchandise grew. E-commerce allowed us to instantly create sales online and eventually take that demand and show retailers how important it is to stock our expanding line of products.”
Elefant is adamant that Art Naturals’ online success is playing a big role in the company’s overall rise to prominence in the beauty business. “Consumers are seeing our success online and how our product stands out,” he said. “Retailers have a lot of young brands to choose from in our categories. Having the following we have online makes it easier for them to select our product for inclusion in their beauty section assortment.”
So far, so good for the company’s strategy. Currently, Art Naturals offers nearly 150 SKUs across a number of key beauty categories, including its flagship skin care products, but also in hair care, bath and body, men’s care, and essential oils. The products are produced at the company’s headquarters and factory/warehouse in Gardena, where all of its 180 employees work.
On its website, the company states that it “has always believed that beauty treatments should stem from the purest forms of nature. We gathered the finest ingredients and extracts from around the world to handcraft health-conscious essentials for your skin, hair and body, mind and spirit. All of our products are BPA-free, cruelty-free, and eco-friendly. Our aim is to offer high-quality items at an affordable price to enhance the well-being of our customers — beauty and nature lovers alike.”
Its mission: “We believe that everyone should experience the incredible benefits that nature has to offer. Supporting our customers in their quest to live a healthy life has always been priority. Our loyalty lies in natural ingredients, affordability and long-lasting results. Your skin, hair and body/mind/spirit deserve it.”
The privately-held company’s sales, just $10 million in 2015, are now close to $100 million with about 20% of that volume coming from the approximate 12,000 retail stores the company has product in. Art Naturals counts Walmart, H-E-B, Albertsons, Meijer and CVS Pharmacy as its current retail partners.
Both Nourollah and Elefant expect retail sales to grow quickly as the company puts more emphasis on brick-and-mortar and gets more retailers to take on Art Naturals merchandise and expand their assortments. By 2020, they think about $50 million will be generated through traditional retail markets.
There also will be growth in new categories. Nourollah said that Art Naturals is focusing on the baby, vitamins and pet categories for growth in the near future, as well as expanding out the men’s grooming segment. “Let’s be clear,” he said. “We do not want to be a typical beauty brand that just copies what other companies offer to the marketplace. We put a new twist on everything, and that also catches the consumer’s eye.”
In addition to the company’s online success, it’s still committed to focusing on details in-store. Elefant said that Art Naturals employs a complete graphic design team to work on in-store marketing efforts, as well as developing shelf talkers and floor decals to build brand awareness. He was quick to add that company officials encourage retailers to utilize a “brand block” strategy with the full Art Naturals assortment to build that brand identity.
“We think that, in about five years or so, we are going to be an internationally recognized brand with a very strong following of consumers who recognize what we bring to the table,” Nourollah said. “We are going to be a household name in many, many different segments, and our retail partners will benefit from our success. It is going to be a very interesting time for Art Naturals and our partners.”