E.l.f. takes a casual tone to its Instagram announcement of its tariff-driven price increases, which start Aug. 1.
Cosmetic brand E.l.f. announced on its Instagram channel that it is raising its prices by $1 on all of its products starting Aug. 1 due to tariffs.
The brand made the announcement using a casual tone and whimsical imagery of its products with googly eyes. The message read, “Not gonna lie, inflation and tariffs are hitting us hard … Bringing you the best of beauty is getting more $$$, so in August our prices will go up by $1. We’re keeping an eye on the tariff situation as it evolves.” E.l.f. also highlighted in its post that 75% of its products are $10 and under.
The casual tone is perfect for E.l.f.’s brand, said Paula Rosenblum, co-founder and managing partner at retail consulting firm RSR Research. While making an announcement where its customers are – on Instagram—makes sense, the brand should have made an announcement on its website as well, she said.
“I like the way they did it, but I’m concerned that they should have also gone beyond Instagram. They should have used another media as well,” Rosenblum said. “I’m frankly disappointed that it’s not in some kind of box on the front page of their website.”
For brands that are not doing a blanket price increase, Rosenblum still recommends that brands are transparent about any tariff-driven price increase. Retailers should call out any increase on each product detail page.
“It’s important to dispel the idea that brands are doing this to improve profits,” she said.
Other measures E.l.f. is using to offset tariffs
About 75% of E.l.f.’s global production comes from China, down from nearly 100% in 2019, CEO Tarang Amin told investors in its most recent earnings call May 28, according to SeekingAlpha.
Today, its U.S. imports now have a tariff at a 55% level, which is a 25% level that was put in place in 2019 and an incremental 30% that’s in place now through mid-August.
The brand does not plan to increase its prices again, and this is only its third price increase in its 21-year history, Amin said.
“Historically, consumers have been able to accept a $1 increase,” Amin said. “We are transparent with our community and our pricing actions and hope to see long-term tariff relief so we don’t have to take further pricing action.”
Beyond the price increases, E.l.f. plans to mitigate the impact from tariffs with ongoing supply chain diversification and accelerated international expansion. Currently 20% of E.l.f.’s sales are international. E.l.f. did not immediately respond to a request for commentary.
Also this week, E.l.f. announced it would acquire Hailey Bieber’s skincare brand Rhode for $1 billion.
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