[Dermaloop] Securing technological competitiveness such as patents, targeting overseas markets in earnest

"Small differences in cosmetics determine customers' judgment"
Interview with CEO of Dermaloop Scarlett Lee
Founded by cosmetics product development, sales, distribution, and marketing experts
Over 15 years of experience in the industry, striving for sincerity rather than concept
Launched the first product, salt shampoo wadiz funding, and achieved over 100 million won
Securing technological competitiveness such as patents... Targeting overseas markets in earnest

The cosmetics market is facing a new transition period as the distribution market is changing to an online center due to the spread of COVID-19. The revitalization of the OEM and ODM business has opened the door for anyone to start a cosmetics business, and anyone can sell products online in an atmosphere where certain companies dominate the distribution market. In this atmosphere, more than 20,000 cosmetics companies are currently developing and selling products in Korea.

In particular, consumers' awareness of indie brands has also improved, and some companies have achieved great growth in a short time with hit products. In this atmosphere, a startup cosmetics company founded by four experts in distribution, sales, product planning, and marketing with 15 years of experience in the cosmetics industry is attracting attention with the banner of developing 'mild ingredients but powerful effects' and 'products with small differences but big satisfaction for consumers'. Dermaloop, which launched its first product last year and earned more than 100 million won in Wadiz funding, is the protagonist.

Recently, the company opened a pop-up store at Beauty Play, a Myeongdong K-beauty experience center sponsored by the Korea Cosmetics Industry Research Institute and the Ministry of Health and Welfare, and we caught up with Dermaloop s CEO, Scarlett Lee, to find out more about the "small difference" they make and the "small miracle" of Wadiz funding that got them started.

- Tell us a little bit about your company. How did you start the company?

"Dermaloop was founded in late 2020 by a group of cosmetics industry acquaintances I met while distributing cosmetics for dermatology for over 15 years. We have been in the cosmetics industry for a long time and wanted to create products with sincerity, not just concepts, so we joined forces with people who have been involved in marketing, product development, distribution, and sales for more than 15 years.

We put a lot of thought into developing cosmetics with authenticity from the planning stage. We wanted to create products that consumers need in their lives rather than trendy products, and products that have a clear difference from existing products.

In the summer of 2021, we launched the brand under the name 'Absoloop' with the promise of 'mild but effective clean beauty with a vegan formula'. The first product was Saltriple Tiptox Shampoo, which was created with the idea that the scalp also needs scaling.

The idea was to develop a product that deeply cleanses the scalp of dirt and grime and solves scalp problems such as hair loss, dandruff, itchiness, and hair sticking at once. The main feature of the product is the Saltriple Scaler, a three-salt blend formula that utilizes the best natural scaling ingredients.

Superior quality Himalayan Mineral Salt, Himalayan Pink Salt, which is rich in magnesium and minerals, and Uyuni Salt grains, a clean salt rich in minerals, glide across the scalp and provide a cooling scrubbing sensation for scalp scaling.

It is also nourished with patented microalgae extract, which is certified by the Ministry of Food and Drug Safety as a functional shampoo to relieve hair loss symptoms. It is also certified as PETA Vegan and Cruelty Free by excluding animal-derived ingredients.

With the idea of making safe cosmetics, the product was developed without 26 allergens and 20 ingredients of concern, sulfate-free, and with natural surfactants so that anyone can use it safely. In fact, the product received an excellent rating in the human skin application (irritation) test by Dermatest, a world-class dermatology laboratory in Germany.

We also put a lot of thought into the package design. The one-touch premium container, which is differentiated from existing products, and the design with a purplish color give the product a youthful feel. The texture also adds a purple sensation. The reason for the slight color deviation of each product is the use of natural pigments.

It also has a refreshing and subtle scent that is different from the monotonous scent of existing hair loss shampoos. The refreshing top note, softly enveloping floral middle note, and mellow base note are features that are hard to find in existing hair loss shampoos.

These efforts paid off in 2021 with the launch of the first product through Wadiz funding. After the first launch broadcast, we raised more than 150 million won through two encores.

For the four of us who started the business together and developed our first product, these achievements really showed us that 'small differences make a big difference in customer satisfaction', and we tried to embody that in the development of our subsequent tone-ups and toner pads."

- You say 'small differences'. What does he mean?

When we first developed the product, we said, 'Gentle in ingredients but powerful in effect. We wanted to create a product that was essential to consumers, but differentiated from existing products.

That's how 'Small Difference' started. The Tone Tuning Cream, which was launched after the shampoo, is a representative result. Until now, the tone-up creams on the market have claimed to provide instant whitening. It is common for products that aim to temporarily whiten the face by increasing the content of sunscreen ingredients that cause a chalky effect. Therefore, although they sell well overseas, tone-up creams have not achieved much success in the domestic market, which is sensitive to cosmetic usage and safety.

Absoloop's tone-up cream, which we called 'tone tuning cream' from the beginning, was developed with a focus on the actual whitening function, not the temporary whitening effect.

It is a multifunctional product that brightens skin tone, skin texture, and skin radiance, and its main ingredients are niacinamide, which is a whitening functional ingredient, glutathione, which adds vitality to the skin, and neurite, which makes the skin clear.

It also contains antioxidant ingredients such as vitamins A, C, and E flippenol and anthocyanin, which are complexed with 10 berries that are already known as superfoods, for rich and vibrant skin. In addition, it has a moisturizing texture that has been tested and found to be comfortable for consumers.

The product has also received the German Dermatest Excellent rating and PETA Vegan Brand Certification, and has raised nearly $50 million through Wadiz funding.

Although the product is lumped into the same name category of tone-ups, consumers who try it notice small details that set it apart from other products. This leads to repurchases, and with more repurchases, we will be recognized as a brand."