Retail Diary: Brand Crush - Katherine Power

Love Merit Beauty? Versed Skincare? Who What Wear? Avaline Wine? Then you are likely a major fan of Katherine Power like me. Writing all about my retail crush on Katherine Power.

Welcome to Brand Crush, where I open my Diary on the retailers, brands, and business moguls that make my retail-loving heart skip a beat. If you're new here, buckle up - this isn't your boring business case study (though I never find retail business boring.) Think of it as a love letter to innovation, style, and savvy entrepreneurship, with a side of 'add to cart' temptation (sorry not sorry.) So grab your favorite beverage, silence those notifications, and let's dish on the brands that are changing the game - and our shopping habits.

Brand Crush: Katherine Power

These are all my own thoughts, opinions and research.

I remember working at Bloomingdale’s in the buying office when Who What Wear launched. In the same vein as Daily Candy (a beloved and missed publication that always listed the hottest up and coming items and brands you needed to know) WWW would drop a fantastic newsletter and it was an email we would all pause to read as soon as it hit our inbox. This is when the brilliant minds, style and both trustworthy & kind voices of Katherine Power and

Hillary Kerr

hit my radar. They became instant genius fashion celebrities in my eyes. I could totally write another Brand Crush on Kerr (filing that away for a future send, but if you aren’t already following her Substack

Hi Everyone with Hillary Kerr

click subscribe now and listen to her Second Life Podcasts too) but today’s Brand Crush is all about Katherine Power and the brands she has launched, operates and successfully grown.

Katherine Power is a force to be reckoned with in the worlds of fashion, beauty, and entrepreneurship. If you've been following Sarah's Retail Diary for a while, you know I'm passionate about innovative business models and disruptors in the retail space. Well, Katherine Power fits that bill perfectly. As the co-founder of Who What Wear, and the mastermind behind Versed Skincare, Merit Beauty and Avaline Wine, Power¹ has consistently demonstrated an uncanny ability to identify and capitalize on market gaps, creating brands that resonate deeply with millennial and Gen Z consumers. Power is also a Partner at Greycroft Venture Partners and an operating partner at Sonoma Brands (and her partner/husband also is a photographer and entrepreneur as he is the founder of Hi-Note, a line of ready to use food mixes.) Power’s brands are no gimmicks, all solid products and marketed perfectly to drive interest and desire.

Photo by Cara Robbins from this article.

Founding Story:

Her career didn’t start with Who What Wear - prior to that she was a dancer in the first “Austin Powers” movie and worked at Touchstone and later with Brent Bolthouse. She was emancipated at age 17 just so she could work as an adult with longer hours on the movie set for Austin Powers - she started working hard then and never stopped. She decided to skip college after driving around the parking lot for 45 minutes looking for a spot and realizing she didn’t want to waste time doing that - and instead turned her internship into a full-time opportunity with a phone call. (Note to self, next time rather than getting annoyed with traffic and parking, find a way to turn that into being more productive with my time like Power.)

In the early 2000s she landed a job as West Coast editor at Elle magazine. It was here that she met

Hillary Kerr

, and together they recognized a shift in how young women were consuming fashion content and the opportunity online. In 2006, they took a leap of faith and launched Who What Wear, a digital-first fashion publication that would eventually grow into a full-fledged media and commerce company.

The success of Who What Wear allowed Power to expand her entrepreneurial vision. Recognizing the potential in the beauty space, she launched Versed Skincare in 2019, focusing on clean, affordable skincare products that are efficacious and more sustainably packaged. Not content to stop there, Power identified another gap in the market and launched Merit Beauty in 2021, offering a minimalist approach to makeup for the busy modern woman. I’m also impressed she didn’t decide to expand Versed into cosmetics, but instead saw enough of a blank slate and differentiated the two. Including launching with different retail partners based on where they would perform best.

Power’s keen understanding of her target audience and ability to adapt to changing consumer behavior has helped her navigate any obstacles. In a retail world that seems to focus on DTC to grow and often moving too late to wholesale partners, Power is often leaning on strong partnerships to help build and even bigger base. With Target and Sephora as key partners, she launched Merit at Sephora within one month of launching DTC. Versed launched at Target and claimed to be the first digitally-incubated, drugstore, clean skincare brand to launch within a year timeframe at a mass retailer.

Brand Identity:

Across all her ventures, Power maintains a consistent focus on accessibility, quality, and meeting the needs of modern consumers. Who What Wear brings attainable fashion to the masses with engaging content and completely changed how fashion and celebrity was shared online. At a time of mostly snarky comments on what celebrities were wearing, WWW was the first of its kind to be uplifting and inspiring in the style it was sharing and always kind. Versed offers effective skincare at drugstore prices, and Merit simplifies beauty routines for busy professionals. All of this has felt more inclusive than many other brands.

A key aspect of Power's brand identity is sustainability. Both Versed and Merit have made significant commitments to eco-friendly packaging and clean ingredients, reflecting Power's understanding of her consumers' values.

Who What Wear has become known for its trend forecasting, shopping recommendations, and celebrity style coverage. The brand's collaboration with Target, launched in 2016, had been particularly successful, bringing affordable, on-trend pieces to a wide audience. I think the only surprising thing about launching the WWW clothing in Target was that it took 10 years for them to launch a clothing brand. I can’t imagine that length of time in today’s merchandise saturated world. But it also shows how thoughtful they were in making sure they were able to do it with the right partner and felt like they had a style and collection to share. The Instagram hasn’t been posted to since May 2022 which means they likely sold for 6 years.

Hero Products:

When Who What Wear clothing launched, I loved the t-shirts and basics. Also, the clothing for workwear seemed like a great cost-efficient option for someone looking for great style on a budget.

For Versed, products like the Day Dissolve Cleansing Balm, Press Restart Body Retinol (almost 800 reviews and 4.5 stars - that’s very strong) and the Retinoid Eye Balm at $19.99 have gained cult followings for their effectiveness and affordability.

What is impressive about Merit, is that rather than having a Hero Product(s), the % of sales by item is much more evenly distributed. This is an important indicator. Not having a single item carrying most of the weight of driving revenue means that if the trend moves the brand is protected. Example, if a brand relies heavily on a single hero product like a bold lipstick, and the trend shifts to a more natural lip balm, that brand could see a significant drop in sales. However, Merit's balanced product portfolio means they're less vulnerable to such trend shifts. Each product in their line contributes more equally to overall sales, suggesting that customers value the entire range rather than just one or two standout items. This strategy not only provides financial stability but also indicates that Merit has successfully created a cohesive, well-rounded collection that resonates with their target audience across multiple product categories.

That being said, I think with Merit the goal is to get customers to try the Flush Balm Cream, the Minimalist Complexion Perfecting Stick Foundation (think double duty as either a foundation or just spot concealer) and a lip product. I think the recent launch of the Matte lipstick along with the Matte Lip Box Set (try 4 shades for $82 value price) was smart and a matte lipstick is a way to stand out in the lipstick category. If Merit can get customers to try their stick applications (blush and foundation) with this easy, innovative and playful way to apply there is a good chance the customer will have a positive experience with the brand and want to try more.

Data Insights on Merit Beauty:

• Merit in 2023: $100M in retail sales/$50M in revenue. 2024 projected to EXCEED $100M in revenue.

• E-commerce represents 50% of the sales and unlike other brands (like Rhode Beauty or Glossier) they launched with Sephora as a partner 1 month after launching online.

• Key products all have a stick application for a quick, on-the-go utility. And by prioritizing sets and kits (driving customers to purchase multiple products) no single product represents more than 20% of revenue. This is brilliant!!

• AOV is over $100. This is also incredible for a brand with an average price point that is likely closer to $32-$35 when you look at individual SKUs.

Also worth noting, with Versed launched in 2019 and Merit in 2021, Katherine Power has certainly weathered a lot of industry turmoil from COVID as well as overall industry changes with the impact to the fashion, retail and digital industries with the financial collapse in 2008.

Personal Favorites:

I'm particularly impressed by Power's ability to create distinct brand identities that still feel cohesive. The aesthetic consistency across Who What Wear, Versed, Merit and Avaline is remarkable – each brand feels unique yet clearly part of the same family. What is also brilliant about that is if you like one brand you likely have a strong affinity for the other too. As a consumer I knew I could trust Merit in 2021 when they launched because I was already a fan of Versed.

Versed's Cleansing Balm is a personal favorite. Especially in winter or whenever my face feels dry or tight. It is light, gentle and my face feels clean not clogged after. I also have and use the Instant Resurfacing Mask for a quick but effective treatment.

As for Merit, the brand has been a game-changer for quick, easy makeup application. I keep a bunch of items from the brand in my top drawer for a quick swipe before a video call. I love that the blush works on the lips too. A one and done is a winner in my make-up drawer. Some of my daily favorites include this Great Skin Glow Serum, this flushed balm (I have both Aprés and Cheeky) and now this matte lipstick in Vermillion. If I wear foundation it is this and apply with this brush. I often use the foundation in small areas when I need a bit more coverage vs all over. I also have the Solo Eyeshadow in Nelson, a dark grey, for when I want to either line or use an all over color on my eyelids. If you scroll down on the PDP² you will see a helpful tutorial for three different ways to apply and use.

Do you have any personal favorite Merit or Versed Products? Any early memories of Who What Wear to share? Leave a comment so we can all enjoy.

💄 Quick note: I write a lot (too much good stuff to share!) so if you’re reading via email only, you may need to click through to the web version or read on the Substack app. I promise it will be worth it. 💄

Innovations and Strategies:

Power's approach to business is characterized by a digital-first mindset and a deep understanding of her target demographic. She leverages social media and influencer partnerships effectively, creating buzz around her brands and products.

Data plays a crucial role in Power's strategy. She uses consumer insights to inform product development, ensuring that each new launch meets a genuine need in the market.

• Merit - it is brilliant to have the first order on the Merit website ship with the fashion-forward Signature Bag. You can’t purchase the Signature Bag otherwise, it doesn’t look cheap and the style is very on trend. As soon as you see on Instagram you immediately know it is part of Merit. The partnership with Proenza Schouler last year was especially well done. Available for a limited-time, in partnership with Moda Operandi and sold filled with an edited kit. They are partnering with Tove now for the UK launch. I hope they have another one for this Fall Fashion season. I’d personally love to see Khaite, Toteme, Mansur Gavriel (fun handbag crossover) Altuzzara or how about Max Mara and a mini Pasticcino bag or Attersee’s great little clutch reinterpreted in partnership with the perfect edited work to evening kit of products?

• Versed - I really like the strategy that the headband for washing your face/skin care ships free with orders over $50. This is a great way to use merch as an upsell. Make sure your pricing covers the cost of the headband, but this gets order over the $50 AOV and the marketing (seeing someone wearing in a GRWM video) is excellent brand placement. It is also so smart that the only way to acquire the headband is through an online order at their DTC site. You can read about that on their blog here. It is a way to drive you to the site and reward and upsell the loyal customers.

• Versed - excellent blog content. See this feature on the body retinol. Retinol products for the body are relatively new in terms of body care but I do believe this is opportunity here where the consumer knows 1) it is available and 2) how to use.

• Versed - to take the Body Retinol further, I love that they created sets around different users. There is the Beginner, The Expert and Youthful skin (ahh, the dream.)

Where I think Merit & Versed can push further:

• Merit:

  • Edited kits and bundles with video links and tutorials. These look great on the site and make it easy to add a bunch of products to the cart at once. There is an opportunity to do more curated kits (even with influencers via ShopMy or with Instagram Reels, TikTok etc.) Could even add QR codes with tutorials on the packaging or in retail at Sephora.

  • I’d like to see more content around full looks. I love the 5 minute routine, but how about an evening or an event routine? More videos for a complicated look too.

  • Improved navigation and filtering around shades and colors to understand what works well together. There was a great post on instagram showcasing this but it might have been in stories as I can’t find it now. This should live permanently on the ecommerce site.

  • Add skincare (they were teasing something recently and Great Skin certainly ventures in this area) Sure, the Merit customer could shop Versed Skincare, but they are sold at different retailers IRL (Sephora vs Target) and aren’t sold on the same DTC website. I would love products like Merit cosmetics but for my skin. I think this would be pared down basics, the essentials. All would be very efficacious and the goal would be to give me an amazing glow and resilient skincare where I would feel confident and excited to go out with just a swipe of lip balm.

• Versed:

  • The skincare quiz (powered by Jebbit) could improve the suggested product page. I would love a quick “add all to cart” or a way to learn more about each. This is possibly on Jebbit’s end, but the image links were not showing up, so all I saw was the product name and retail. It also seems like a lot of products so I’d like to understand more about the regimen. When to use each etc. It felt that if I clicked “Shop Now” I would lose the list of recommendations. Why these products? How to use and when…

    

    Opportunity to improve the Quiz experience on Versed and make it easier to add to cart and see what is recommended.

More innovation I’d love to see:

First, I think Katherine Power has more brands in her future. Whether as a strong strategic advisor through Greycroft Ventures and Sonoma Brands or on her own. She seems like someone who always has interesting ideas and really knows how to execute.

Merit is already doing fashion forward collabs and partnerships. I’d love to see more innovation overall. Here are a few ideas:

Sustainability - Merit’s products lend themselves to refills. It would likely require some retooling of the packaging but this could be a nice update. I also find the Fara Homidi refillable palettes to be very upscale and the weight of the case feels so luxurious. Merit could do something along these lines and even add in subscription for the refill (recurring revenue - win!) The recycling instructions on Versed’s PDP is A+++. Makes it so easy and intuitive.

Fragrance - Especially for Merit, launching a fragrance that sits well with the consumer could be a nice addition. Think of how much volume Glossier You is doing and Glossier is further expanding into fragrances based on the positive revenue performance. With the strength of Sol De Janeiro there is also an opportunity for Versed to venture into fragrance for the body skincare products. Additionally, adding new categories vs single products can be a bigger growth vehicle for revenue and aid in acquiring new customers.

Nail Care - This is another category expansion I could see Merit playing in.

Product Innovation - Versed has opportunity to expand into products like acne patches, masks and even some tools or devices. There is an opportunity for tools and devices at an opening price point. An example like this. Many brands are also expanding into innovation around perimenopause and menopause and with Versed’s demographic based on their skin quiz questions I think they could test 1-2 products here (even if they just test marketing to that demographic more vs innovating products around it.)

Subscription - I’m curious if they have tested subscription on Versed’s website. Skincare connects well with recurring purchases. If subscription isn’t a strong fit they need to ensure that their drip campaign emails really nail reorders and timing well.

Wellness - This is a huge category for growth. Personally it isn’t one that resonates with me deeply so I wouldn’t be invested in. That being said, Versed could grow the category by adding supplements for hydration from within and overall skin improvement. Versed recently partnered with Bloom on a giveaway, another Target brand, so perhaps playing with a collab first - products packaged together - would be a solid test. I could also see a partnership with Love Wellness, Lo Bosworth’s supplement brand focused on Women’s Wellness.

What’s Next:

Merit Beauty has hired Goldman Sachs to explore a sale and what the financial future is for the brand. I expect with their solid foundation and success so far they will command a nice exit for the brand. Additionally Merit is launching in the U.K. and Europe. Their launch with Tove Studio in London looked so well executed.

Closing Thoughts:

Katherine Power's impact on the fashion and beauty industries cannot be overstated. Her ability to identify consumer needs, create products that meet those needs, and build strong brand identities is truly impressive. As someone who's always on the lookout for innovative retail strategies, I find Power's approach both inspiring and educational. Her success serves as a blueprint for aspiring entrepreneurs in the fashion and beauty space, demonstrating the power of understanding your audience and staying ahead of market trends.

Still Want More?

• “Merit Based Economics” by Rachel Strugatz for The Line Sheet/Puck News

• Katherine Power on LinkedIn and on Instagram

• Great recent article: “How Merit Won Over the Grown-Up Glossier Girl” by Liz Flora in Business of Fashion

• Hillary Kerr
  interviews Katherine Power for Second Life Podcast ❤️

• Katherine Power on Glossy Podcast interviewed about Versed Skincare

• Forbes 2016 “How Hillary Kerr and Katherine Power, Founders of Who What Wear/Clique Media, Built a Media Empire”

• Fast Company 2019 “This is how Who What Wear’s Katherine Power Creates Target Brands Customers Love”

• Glossy 50 2021: Katherine Power, CEO of Merit and Versed, and co-founder of Avaline and Who What Wear

• Katherine Power and Greycroft in WWD

If you love Brand Crush, make sure you read this on one La Ligne.

In the La Ligne Brand Crush I suggested a fun travel collab with Away and look what happened next (which I had no idea about prior to launch!)

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1. Based on my expertise and the fashion & beauty focus of Sarah’s Retail Diary, I am going to focus on the fashion & beauty career of Katherine Power for this Brand Crush. Mostly Merit and Versed with some Who What Wear sprinkled in.

2. PDP = Product Detail Page. The page on an ecommerce site where you learn more about the product.