Gen-Z fragrance TikToker Paul Fino has a stockpile of Sol de Janeiro lotion and body sprays in nearly every scent. But he still longs for the one that got away: a special-edition body spray made with pop star Anitta that came out almost three years ago.
âThatâs the one spray that I totally regret never grabbing. I probably will [buy] it eventually on eBay or Mercari,â he said.
Originally $19, the 90-ml mist he seeks is now on Mercari for $130 as the resale market for the brandâs sold-out products thrives online. Sprays and body lotions in the discontinued scent Coco Cabana are featured in eBay listings from $80 to over $200, often exceeding the cost of a bottle of Chanel or Dior fragrance.
âSol de Janeiro fans are insane. Theyâll easily pay those resale prices,â said Fino. âIt goes farther than, âOh, I really like this brand.â People are diehard fans.â
Customersâ obsession with the nine-year-old body care brand led sales to rise by 199 percent year over year to reach â¬474 million ($518 million) in the nine months ending in Dec. 2023, according to parent company LâOccitane International SAâs most recent earnings report. Sales are expected to reach nearly $1 billion for the full fiscal year. This increase has blown past that of others in LâOccitaneâs portfolio, including its namesake line LâOccitane en Provence. As a result of its explosive growth, shareholders are calling for Sol de Janeiro to be spun off as a publicly listed company in light of reports that its parent company may be considering an offer to be taken private.
Early to spot demand for emerging categories such as body care with its cult Brazilian Bum Bum Cream and affordable fragrance via body sprays, the brand has cultivated a devoted Millennial, Gen-Z and increasingly Gen-Alpha customer base with on-trend product and a wholesale-centric retail model. It has expanded to a full-fledged body care brand with a growing number of categories, including its Rio Radiance sunscreen, which launches this month.
âEarly on, when we launched the Bum Bum Cream, some sceptics thought, âOh, itâs another hot [one-hit wonder]. It will be gone in two years.â But itâs not going anywhere, and itâs inspired a lot of other products,â said Sol de Janeiro co-founder and chief executive Heela Yang. Yang, a former Clinique marketing executive, co-founded the brand with Camila Pierotti and Marc Capra in 2015.
Cellulite Creamâs Beach Day
Before its fragrance frenzy, Sol de Janeiroâs initial rise came from its novel approach to body care. It combined tropical scents and colourful branding to upend the idea that cellulite creams were an embarrassing secret meant to be hidden in oneâs bathroom cabinet. Touting skin-firming benefits, the Bum Bum Cream was its sole first product.
âThe magic is, with Sol, itâs not just âproblem-solution.â Itâs âproblem-solution, but have fun, enjoy, make it a sensorial experience,ââ said Alicia Sontag, a partner at private equity firm Prelude Growth Partners, which invested in the brand in 2019.
Yangâs inspiration for the brand came from beach life in Brazil, where âso many shapes, all sizes, all colours, all ethnicitiesâ readily flaunted their figures. She relocated to Rio de Janeiro in 2008 with her husband, who took a job with his familyâs business there.
âMy passion was not, âHow can I create the most amazing firming cellulite cream?â That was not my intention. We ended up there because we decided that body care was the perfect category to help us really spread this message about this positivity head to toe,â she said.
Using the hashtag #FlauntIt, the brandâs ethos was a perfect match for the proliferation of bikini photos on Instagram at the time, especially those taken from behind. Its early feed was filled with photos of swimsuit models and peach emojis, conjuring aspirational thoughts of vacation photos rather than oneâs problem areas. That bold branding also helped it stand out on store shelves at a time when beauty startups were opting for minimalist direct-to-consumer websites. Sol de Janeiro heavily prioritised wholesale, launching in Sephora less than a year after its debut.
That bet paid off. The Bum Bum Cream rose to become the number one body care product at Sephora, which was a big factor in attracting an investment amount from Prelude, said Sontag. It has remained the number one body cream at the retailer for six years, according to the brand.
âThe velocity of the Bum Bum Cream was incredible,â said Sontag.
Since the investment, the brand more than doubled its sales every year. When sales reached $60 million in 2020, it attracted the attention of LâOccitane International, which purchased a majority stake in 2021, valuing it at $450 million. Following a February report that LâOccitane International was considering a bid to be taken private by Blackstone Inc., minority shareholder Butler Hall Capital requested that Sol de Janeiro be spun off and listed on the US stock exchange. The shareholders estimated in a letter to the board that the brand could be worth over $8 billion, stating that it has âfaster growth, better margins, and far lower penetrationâ in the US than the rapidly growing E.l.f. Beauty.
Defying DTC
While many of Sol de Janieroâs predecessors, such as LâOccitane, The Body Shop and Bath & Body Works, have banked on standalone stores for their distribution, the brand has taken a starkly different approach.
Sol de Janeiro has no standalone stores, with wholesale partners driving its growth. Following its success with Sephora, the brand expanded to Ulta Beauty in January.
âWeâre not so arrogant that we think that they will come to us. We want to be where they are,â said Yang.
Instead of permanent stores, Sol de Janeiro hosts in-person activations such as its six-city US pop-up tour in 2023. A recent February New York pop-up shop saw lines that lasted for three hours and had 18,000 visitors, according to the brand. An Austin pop-up in August had similarly long waits in more than 100-degree heat.
Established body-care brands have seen a different trajectory.
The Body Shop has fallen under administration, while Bath & Body Works reported a net sales decrease of 1.7 percent to $7.4 billion for the 2023 fiscal year ending Feb. 3. LâOccitaneâs US branch filed for bankruptcy and closed 23 stores in 2021; it has had the slowest growth in its parent companyâs portfolio.
For now, permanent stores are not part of Sol de Janeiroâs near-term strategy.
âIf you have a retail store 365 days a year around the corner, itâs hard to maintain excitement,â said Yang.
PerfumeTok Enters the Picture
Today, Sol de Janeiro is a full-fledged brand with shower gels, hair care and deodorant, but one category has superseded the others: body spray, a relic of the late â90s but updated for the TikTok generation.
Launched in 2017 with the scent used in its Bum Bum Cream, Cheirosa â62, the brandâs perfume mists come in multiple fragrances that fans eagerly collect. Last year, the brand ramped up marketing of the mists to younger shoppers with a colourful Sephora endcap display and a campaign featuring âEuphoriaâ star Barbie Ferreira. As its scale has grown, celebrities continue to be a focus for the label; next week, the brand announces another Gen-Z star as its latest ambassador.
With 1.6 billion views on the #soldejaneiro hashtag on TikTok, 75 percent of the top-viewed TikTok posts about the brand are centred on its perfume mists. It has tapped fragrance-specific influencers associated with âPerfumeTokâ as well as mainstream TikTokers known to drive beauty sales, like Alix Earle. Teens and tweens are an especially big focus. The brand has enlisted Katie Fang, known for her influence over Gen-Alpha beauty purchases, and Earleâs younger tween sister, Ashtin, for social content.
Sol de Janeiroâs signature scents have been associated with multiple viral trends, including videos listing the Cheirosa â68 mist as a dupe for Baccarat Rouge, or adding glitter to spray bottles. In December, TikTokers spread and quickly debunked an odd Sephora review claiming that a body butter in the brandâs newest scent, DelÃcia Drench, attracted spiders.
As its customer base has expanded from millennials posting their swimsuit photos on Instagram to teens displaying colourful body spray collections, Yang attributes the brandâs growth to its agility. But that does not mean changing its core identity.
âIf we launched as a fragrance brand, I donât think weâd be here by now,â said Yang. âWeâre body care first.â