In an article in Fast Company, EOS’ founders discussed the origin of their company and how they were able to displace larger and deeper pocketed competitors who were already entrenched in the lip balm market.
The story of EOS is really one of a company that took a grass roots approach to developing their business and reimagined the lip balm market at its very base level. EOS lip balm saw that their competition was not actively improving their product and were relying on economies of scale, existing distribution channels, and price structure to profit in the market.
EOS redesigned the lip balm market by creating products that were of higher quality than their competition, had a more modern take on lip balm, and was delivered in unique applicator orbs that were surrounded in bright colors.
When designing this product, EOS focused on the tastes and preferences of female buyers of lip balm, who constituted the largest subset of the lip balm market. High quality oils were used to found the base of EOS lip balm, such as coconut and jojoba oil, and only organic an all-natural ingredients were used in the product. EOS was even careful to have machinery custom designed to make their lip balm so that their competitors could not copy the products easily. It is only now, almost a decade after EOS was launched, that the lip balms produced by their competitors are emulating the products related by EOS.
EOS is not resting on their laurels and I, instead, launching new products into the personal care industry that are being perceived as being an opportunity for the company take advantage of similarly complacent competition. Regardless of the success that EOS is able to experience, their success of EOS in the lip balm market is a story of how effective and more nimble a small competitor can be, even when entrenched against larger and more powerful competition. EOS products are available on target and Costo nationwide.