- Type: Retail
- Total Round Size (min): AUD$300,000
- Total Round Size (max): AUD$800,000
- Price per share: A$1.00
tbh skincare is now accepting investments!
- Fees Paid by Issuer: 6.00% of funds raised
- Cooling-Off Rights: 5 working days
- Minimum Parcel Size: $250
What is tbh skincare?
tbh skincare is a direct-to-consumer (D2C) skincare company selling clinically-proven treatments for adult acne using patented technology. Launched in March 2020 by mother and daughter team Bridget and Rachael, tbh skincare aims to fill a gap in the market by creating a brand that formed a bridge between pharmaceutical grade skincare and consumer centric cult brands.
Along with a well-crafted brand and scientifically proven product, tbh brought an awareness that its customers needed much more than physical treatment for their skin. People with acne are 63% more likely to suffer from depression within their first year of symptoms, and with this in mind tbh identified that their customers’ challenges with acne went way beyond the surface of their skin. The current target market is predominantly women aged 25-35.
tbh has focused on creating a specific customer experience for the ‘acne prone hottie’. The brand was launched around its first product, the 'acne hack cream', which was formulated by ASX listed Next Science. Since launch, tbh has considered the needs of the acne-prone customer to create a range that continues to fulfil all of their broader skincare needs.
The company has delighted over 6,800 customers across Australia in just over a year of operations, with rapid customer growth, new product launches in the pipeline and a wider market of untapped potential.
- Rapid Growth to Date
In just over a year, tbh Skincare has completed over 10,000 orders from over 6,800 customers, generating over $750K in net revenue. The company is on track to hit $1.3M in sales for FY22, with a stretch target of $1.9M.
- Scientifically-Backed Product, with IP Protection
Unlike many other digitally native skincare brands, tbh skincare’s flagship product (the 'acne hack cream') uses unique and patented technology developed by ASX-listed Next Science (NXS). This scientifically-backed technology provides a solution to adult acne that no other D2C skincare brand can. Additionally, tbh works with an Australian-based TGA accredited manufacturer, to formulate additional products to broaden out the range.
- Highly Scalable D2C Brand
As a digitally native brand from day one, tbh skincare benefits from a highly scalable model. With limited fixed costs, the company is able to focus on its products and its growth, with its targets set on further rapid expansion across the country and into new markets worldwide. Large consumer brands worldwide have been increasingly acquiring smaller D2C players, creating a strong avenue to a potential exit opportunity.
- Loyal & Passionate Community
Owing to its well-crafted customer experience and high quality products, tbh skincare has amassed a large, loyal and valuable fan base of customers (‘the tbh tribe’). With a limited operating history to date, tbh’s 30% repeat purchase rate is expected to climb even higher, with an average of 40 days between purchases. The brand has hundreds of 5 star reviews and over 20,000 followers across its social channels, which increases its competitive moat against any new entrants.
- Highly Experienced Mother and Daughter Team
tbh skincare was founded and has been grown by an impressive mother and daughter team with a wider network of team members across marketing, branding and logistics. Co-founders Bridget and Rachael bring a wealth of experience to the company, pairing Bridget’s extensive background in finance and consulting with Rachael’s medtech marketing prowess across digital channels and branding. Rachael also brings a deep understanding of tbh’s customer experience, having suffered with acne herself.
- Strong Avenues for Further Growth
The brand has an exciting pathway to further growth, having already expanded its range into several other products such as sunscreen and a anti-bacterial cleanser, with a moisturiser planned for launch in September 2021. These additional product lines enable tbh to position itself as a one-stop shop for all skincare needs, with further products in development as well as new markets such as male skincare and an appetite for global expansion.
- Significant Market Opportunity
The global skincare market is growing rapidly and yet remains significantly underserved in certain areas. Most players are either outdated and traditional pharmaceutical brands with strong products, or modern and exciting brands with generic products. tbh skincare bridges this gap with scientifically-backed products combined with a young and dynamic digital brand.
What Makes tbh skincare Different?
The company’s brand name ‘tbh’ is short for ‘the biofilm hack’ which is key to the science behind its hero product. Biofilms make bacteria stronger and more resistant to attack. The patented technology that underpins the core products is able to break through biofilm’s protective layer known as EPS. While approximately 10% of bacteria are free floating, the remaining 90% naturally form in colonies known as biofilms. The patented technology fights against the recurrence of biofilm by up to 100x. The sodium dihydrate in the product defends against the biofilm reoccurring. The ability to break through biofilms protective layer is the key differentiator of tbh’s product in comparison to others on the market. This technology has been shown to significantly outperform key players in the acne market in a recent clinical study. Compared to salicylic acid and benzoyl peroxide based alternatives, tbh's technology has been shown to be more effective.
We know that more than 90% of the world’s population is affected by acne at some point in their life, with several studies confirming acne has an impact on a person’s quality of life, self-esteem, and mood.
This scientifically backed technology, combined with a modern and customer-centric brand, give the company a unique and powerful competitive advantage in the skincare market.
However, as we all know, tbh in everyday terms stands for ‘to be honest’ and this was an intentional decision by the team at tbh when deciding on their brand name. This is represented in the way in which the brand is able to relate to the end customer, provide them with a fun and enjoyable customer experience, be an authentic voice that they can relate to, whilst still providing them with the expertise and science backed products that they need and can trust. Many breakout prone customers are pigeon-holed into using pharmaceutical based products that don’t talk to the heart of the customer, and when they seek out those cult brands that they can enjoy and have fun with, they may not agree with their skin. ‘tbh’ aims to be the love child of the two!
Finally, tbh skincare is a values-driven brand. The company is focused on serving its customers’ needs, and focuses on remaining authentic to its core values. tbh’s products are cruelty free, while its outer packaging is all sustainable. The company is also 100% Australian run and owned.
By focusing on the consumer need and partnering with a team of talented chemists, the brand has been able to broaden its product range beyond the initial launch of the acne hack cream. Seeking input from the tbh customers is a key part of bringing new products into the range. This approach, alongside a relatable and relevant brand voice, brings tbh’s mission to life: to create a fun and enjoyable space for those customers who are too frequently limited to traditional pharmaceutical products. The scientifically backed element of the brand has been incorporated in all of the brand’s product line enhancements.
The acne hack cream
tbh’s acne cream is a scientific and targeted approach to ridding your skin of breakout causing bacteria. The cream is formulated with patented technology, which facilitates the destruction of the extracellular matrix that protects biofilm - where all of the key bacteria live!
The anti-bacterial cleanser
The anti-bacterial cleanser is formulated with the same patented technology as the acne hack cream. This means it effectively fights that pesky breakout-causing bacteria from deep within your skin.
The gentle cleanser
The effectiveness of tbh’s gentle cleanser comes from its specially formulated combination of both cleansing and conditioning agents, to not only clean your skin, but leave it feeling silky smooth too!
Skin shady 50+
A broad spectrum SPF that provides defence against both UVA and UVB rays. This lightweight and oil free formula dries down to a satin finish with no white cast or greasy texture. Containing Glycerin, Alkyl Benzoate and Vitamin E, this product also doubles as a moisturiser. And it’s non comedogenic, which means it won’t clog your pores or make you break out...YES PLEASE!
tbh has achieved rapid growth to date by focusing purely on a niche local market with a limited product range and an online presence. This means the company has a range of broad growth opportunities available following this capital raise, providing a pathway to rapid growth and scale.
Broadly, tbh is planning to both expand its product range and its target markets, significantly increasing its revenue opportunities locally and further abroad. Underpinned by its patented technology, tbh will seek to expand into further product lines, alongside new demographic and geographic markets. The company will also seek to increase its margins and efficiencies alongside a growing headcount to underpin its growth strategies.
Over the long-term, tbh intends to continue to disrupt the incumbent big pharma competitors who have fallen behind in meeting customer needs. Supported by a strong e-commerce technology stack and effective digital marketing strategies, tbh is positioned for strong, sustainable growth.
The Market Opportunity
In Australia, tbh skincare lies in the intersection between beauty, health and wellness, and operates within the niche dermocosmetics market. This market was also the only segment that recorded positive growth (+2%) in 2020, and reflects its target consumers' resistance to industry shocks (COVID-19). According to Grand View Research, the global anti-acne cosmetics market size was valued at US$2.3bn in 2020, and is expected to grow at a CAGR of 9.1% from 2021 to 2028. This represents a significant growth opportunity, as acne is the most common skin disorder amongst adolescents. The American Academy of Dermatology Association has found that approximately 85% of people between the ages of 12 and 24 experience at least minor acne, with it occurring at any stage of life including adulthood.
On Google alone, there are 210,000 searches for ‘skincare’ and 52,000 searches for ‘acne’ per day in Australia. This represents 58% YoY growth, and 21% YoY growth respectively. 90% of searches in the acne category are unbranded, highlighting an opportunity to capture customers, who are researching to find new solutions to their skin concerns.
Australia is at an early stage in the online shopping adoption curve. With online beauty shopping currently representing approximately 11% of purchases in Australia’s $6 billion beauty industry (less than half of the UK’s 28% online penetration), this represents a significant growth opportunity for tbh.
Digitally native brands such as tbh skincare are perfectly-poised to seize this great opportunity and to continue to take chunks of market share away from pharmaceutical incumbents. Superior branding, customer experience and outcomes mean that tbh has an exciting set of tailwinds driving its growth.
Why Equity Crowdfunding?
As a customer focused brand, there is nothing more fitting than for us to share our evolution with those that know us best. At tbh, we love the idea of rewarding our loyal community by providing them with an opportunity to own part of the business and share in our future successes. tbh would never have existed without this sort of fuel, and we think adding even more of this into the business with an equity crowdfund is a great fit for what we stand for at tbh.
In addition to this, we see an opportunity in working with Equitise, to bring on board a range of trusted advisors to help us supercharge the business. The capital raised from the equity crowdfund will be used to grow the business through adding in new product SKUs, increasing marketing spend and new customer acquisition, as well as preparing us for entry into global markets while continuing to embrace a lean business model. We look forward to sharing this next stage of our wonderful journey with you.
Key Team Members
For more information please see section 2.9 of the Offer Document.
Bridget has enjoyed a 25+ year career in senior leadership in global law and professional consulting firms with a track record of delivering insights and results in rapidly transforming business environments.
Prior to co-founding tbh skincare with her daughter, Rachael, Bridget was a successful business owner and consultant specialising in detailed financial modelling delivering robust data, reporting and insights to drive decision making to provide certainty on key business metrics including financial position assessment and risk.
With her strong background in financial analysis and business processes, it is no surprise that Bridget oversees the financial and operational side of tbh. Her keen eye for detail and sharp analytical skills allow her to provide a strong understanding of the key business drivers and provide valuable data insights for the overall business.
Her past experience in project management is also a valuable asset when it comes to managing the supply chain for tbh; from sourcing and negotiating pricing with packaging suppliers, to ensuring freight and other business costs are procured at the best possible rates.
Outside of the business Bridget is very much a home person, who enjoys spending quality time with her husband, and entertaining their large extended family at their home in Sydney’s Northern Beaches. Having managed a family of 5 young adults, she is well acquainted with the highs and lows of teenage years and the emotional roller coaster that often accompanies the journey to adulthood (and beyond).
Rachael is a highly passionate and innovative digital marketer with a strong 'big picture' focus. Her natural flair for the creative elements of marketing, as well as her strong commercial acumen from previous experience within the medical devices industry, makes her both a deeply analytical, yet highly visionary digital marketer.
Always looking for ways to challenge herself, Rachael took on the task of building tbh from the ground up alongside her mum, Bridget. From building the brand voice through all the copy across the packaging and the website, to determining which ecommerce technology stack would best support a superior customer experience, Rachael is responsible for managing all customer facing tasks for the company.
Rachael's personal experience with acne, from her teenage years all the way through to her early twenties, has made tbh a deeply personal mission for her. As someone who has experienced first hand the challenges of dealing with acne, Rachael is able to deeply relate and resonate with the end customer of tbh.
A true Leo at heart, Rachael scores in the 96th percentile of extroverts, and is a strong minded, fierce and compassionate soul. She does nothing in halves and has a natural sense of self-assuredness.
Georgie Quigley is the Founder and Director of Georgie Quigley Public Relations (GQPR), a boutique consumer lifestyle PR agency.
Prior to starting her own business, Georgie worked at Soda Communications & Moskos Communications where she developed an aptitude for producing and implementing client campaigns, creative ideation, event planning and execution, as well as securing top level media coverage for clients, a skillset that has been carried through to the media relations campaign for tbh Skincare over the last 12 months.
During her career, Georgie has worked on both globally recognised clients alongside niche Australian brands alike tbh Skincare and knows what it takes to put brands on the media map, create brand awareness and consumer credibility.
Tay joined tbh in 2021, with a love for skincare and a desire to get involved with an innovative startup. Starting her career in Dubai, she has worked across content marketing and strategy for the past 5 years. Tay has worked both in house and at agencies, managing social media strategy, as well as broader brand strategy. Now as tbh skincare’s Brand Specialist she manages tbh’s social media strategy, influencer engagement, content creation and works daily with Rachael on the broader strategic direction of tbh’s digital marketing.
Kane founded FITH media in 2019 with one goal in mind, to create a team that understood the e-commerce market and demand for social content, specifically in relation to social advertising. Whilst working at some of Australia's biggest e-commerce brands before starting FITH, such as Hismile and Maison de Sabre, he saw a massive gap in the market when it came to the content that creative agencies were supplying. Since Kane founded FITH his team has helped over 200+ businesses successfully grow through creating channel specific content, using data to optimise creative, and adopting a business model that allows for continuous creation of fresh and relevant content (as quick as every 4 weeks).
Leo is the CEO and Founder of Wildfire Digital, one of Australia's premier digital advertising agencies. Leo's specialty lies in his intricate understanding of social media platforms and his ability to use them to scale brands to their fullest potential. He's worked with a myriad of e-commerce brands garnering remarkable results and has found his niche in the beauty industry.
30 years of leadership and management experience, in the medical solutions and medical devices sectors. Managing Director at Synthes, VP at Johnson and Johnson, currently providing consulting services and mentoring. Has built talented teams positioned to succeed in highly-complex, regulated markets - where leading in product and service delivery requires considered strategy and constant innovation.
Extensive leadership experience across the IT and Healthcare industries, both locally and overseas. Currently serving as the Managing Director for the largest privately owned international medical consumables company. Broad commercial and leadership experience across multiple healthcare specialities over the last 20 years in Australia and New Zealand with a strong track record of business growth and building successful teams.
Jessy established Hive HQ in 2019 with a strong passion for helping fashion, beauty and lifestyle brands get noticed. Starting with a career in beauty therapy, Jessy worked for multiple leading skincare brands as an educator and business development manager before her work as a PR professional. Jessy's talent lies in building brand awareness through media exposure, influencer engagement/strategies, and brand partnerships.
For more information please see section 2.12 of the Offer Document.
Use of Funds
For more information please see section 3.3 of the Offer Document.
Key Risks Facing the Business
For more information please see section 2.14 of the Offer Document.
The tbh brand is centred around being fun, relatable and letting its customers be their best self. This is contingent on consistent branding, from influencers, social media, and product design, alongside the effectiveness of their product. The brand may be damaged if any negative news/events occurs.
tbh is operating within the skincare industry, which has over time seen lowered barriers for entry. New independent brands may target a similar niche, creating competitive pressures that undermines tbh’s value proposition. Likewise, incumbents may decide to enter the space through either an acquisition or launching a new brand, with their extensive distribution network and economies of scale posing a competitive threat.
The Company’s products have a patented technology that was created in partnership with Next Science. tbh holds the exclusive license to this technology for consumer facing products. If an event occurs which jeopardises this relationship or agreement, this will have an impact on tbh’s ability to offer anti-acne creams.
In Australia, there exists regulation around cosmetic goods - centred around safety, consumer rights, privacy and distribution. For example, therapeutic goods need to be registered on the Australian Register of Therapeutic Goods. Any changes in current regulation will require tbh to adjust its product offerings and business operations accordingly.
As tbh provides skin care products, there is always a risk of a customer having an adverse reaction. This creates legal risk, which may impact tbh’s ability to generate sales and lead to a potentially expensive lawsuit.
Skincare product innovation is driven by consumer preferences, with sales dependent on discretionary consumer spending. However, the unpredictable nature of lockdowns and the general economic climate can impact demand for tbh’s products. This can reduce sales, impacting tbh’s forecasts.
tbh relies on its exclusive licencing agreement with Next Science as the foundation of its patented technology. If this licence were to be compromised, or future jurisdictions could not be licenced appropriately, tbh’s product line and ability to expand into other countries would be damaged.
Australian Corporations Regulations - Warning Statement About Equity Crowdfunding
Crowd-sourced funding is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of ventures is speculative and carries high risks.
You may lose your entire investment, and you should be in a position to bear this risk without undue hardship. Even if the company is successful, the value of your investment and any return on the investment could be reduced if the company issues more shares.
Your investment is unlikely to be liquid. This means you are unlikely to be able to sell your shares quickly or at all if you need the money or decide that this investment is not right for you.
Even though you have remedies for misleading statements in the offer document or misconduct by the company, you may have difficulty recovering your money.
There are rules for handling your money. However, if your money is handled inappropriately or the person operating this platform on which this offer is published becomes insolvent, you may have difficulty recovering your money.
Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.