While lip balms are not thought to be part of the most dynamic industry in the marketplace. However it was just that lack of dynamism that made the lip balm market an attractive target of a new start up company – EOS seven years ago when they entered the market.
When EOS lip balm was first founded they noticed that the lip balm market was ripe for intervention as the major lip makers were not changing their products to meet the needs of customers and were trying to compete solely based on the price of their balms. EOS tried to steal a market share by making a product that fit their customers’ tastes.
In an article by Fast Company, EOS studied the major buyers of lip balm who turned out to be women. These female buyers were not enamored with their lip balms and were looking for balms that did not have the bland medicinal flavors that major competitors like Chapstick were selling. To counter this EOS made interesting fruit flavors that were tasty and subtle. Women buyers were also looking for all natural and organic products that were safe and higher quality than the standard lip balms on the market which were typically made fr petroleum jelly. EOS started to make balms that featured high quality ingredients like jojoba oil and Shea butter which were longer lasting and better for you than the artificial ingredients in competing lip balms. They then packaged their lip balm in a unique orbital applicator (see: https://evolutionofsmooth.com/lip-balm/smooth-spheres.html) that was colorful and creative and irresistible to customers.
The success that EOS experienced from listening to their customers’ needs was instantaneous. Major distributors like Walgreens, Walmart, ULTA and Target started to carry their products. Customers began to buy them and EOS now sells over one million lip balm units a week. Listening to their customers helped EOS to uproot larger competitors and grow into a lip balm powerhouse.