5 Hacks CeraVe used to build a $1.3 Billion Brand

Did you know that CeraVe sold one unit of product, every two seconds during Amazon’s Prime Day 2 in US for 2024?
CeraVe Success Timeline

Founded in 2015, by A team of expert dermatologists led by Tom Allison, who collaborated with skincare scientists to develop a dermatologist-approved brand catering to common skin concerns.

Company's initial goal was to make a product, that creates a trust-based foundation, appealing to both medical professionals and everyday consumers.

The brand develop products enriched with ceramideswhich are lipids, essential for maintaining a healthy skin barrier—combined with advanced moisturising technology to address dryness, eczema, and general skin sensitivity.

Unique Value of this Unicorn:

  1. Ceramide Formulations: Incorporated ceramides 1, 3, and 6-II, proven to restore and maintain the skin’s natural barrier.
  2. Multivesicular Emulsion (MVE): Provided long-lasting hydration, distinguishing CeraVe from other “quick-fix” creams.
  3. Dermatologist Recommended: Earned reputation and endorsements from doctors, further boosting credibility.
  4. Affordability Meets Efficacy: Cost Effective & Easily Accessible in drugstores, appealing to a broad demographic.
Did you know that In 2017, when L’Oréal acquired CeraVe, it also purchased two other related brands—Ambi and AcneFree—as part of the same $1.3 billion deal?

2 Major Triggers for Major Success:

  1. Showcased with pharmacist “stamp-of-approval”: Attained trust from dermatologists, who recommended it for eczema, acne care, and sensitive skin case.
  2. Influencer Partnership: Creators found success in “CeraVe routines,” praising the brand’s straightforward formulas. Highly followed dermatology channels constantly championed CeraVe, labeling it a top pick for affordable skincare.

Financial Milestones:

  • Pre-Acquisition Sales:
    • Though not publicly detailed, estimates suggest tens of millions in annual revenue before the L’Oréal purchase, with strong double-digit year-over-year growth.
  • Post-Acquisition Expansion:
    • Under L’Oréal, CeraVe’s global sales soared, reportedly surpassing $500 million in annual revenue by 2019.
  • Pandemic-Era Boom:
    • The shift to simplified skincare routines and DIY beauty further propelled sales, with advanced estimates placing CeraVe’s annual revenue at over $1 billion by the early 2020s.
Michael Cera’s Super Bowl Campaign

5 Strategies CeraVe Used to Scale to $1.3 Billion

  1. Professional Credibility: Tapping into experts and professionals can bestow immediate trust on emerging products. Hence Identify key industry experts or authorities who can lend legitimacy to your offering and amplify your credibility.
    CeraVe's USP
    : Partnering with dermatologists validated product claims early, compelling both medical circles and consumers to embrace the brand.
  2. Embrace Social Media: We need to craft authentic, user-driven social campaigns where real experiences drive brand storytelling, Genuine influencer campaigns and user-generated content can ignite exponential growth.
    CeraVe's USP
    : Viral “DermTok” and user testimonials made the brand a staple among Gen Z and Millennial consumers.
  3. Make Innovation Accessible: Combine advanced R&D with cost management to offer high-value solutions that customers can’t resist.
    CeraVe's USP
    : Stayed budget-friendly while employing advanced MVE technology, ensuring top-tier function without alienating cost-conscious buyers.
  4. Strategic Alliances: Partnering with established players can multiply reach and streamline logistics. Form alliances with larger brands or distribution channels to efficiently penetrate new markets.
    CeraVe's USP
    : Leveraged L’Oréal’s expansive retail network post-acquisition, accelerating global expansions.
  5. Product Differentiation: Brands need to invest in ongoing R&D, expanding features or variants without losing core brand identity. From there on, Continual product evolution meets diverse consumer needs, fostering brand loyalty.
    CeraVe's USP
    : From the original cleanser to specialised formulas (e.g., SA lotions, retinol serums), each innovation catered to evolving skincare trends.
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