The brand seemingly came out of nowhere, hitting Target shelf space among other “clean label” hair products during the pandemic.
Its minimalist aesthetic and positioning next to more expensive brands appealed to consumers looking for affordable, yet healthier hair care.
In just four years, Minneapolis-based Odele Beauty went from an idea to a national expansion with more than 7,000 stores, including Target, Ulta Beauty, and CVS.
Odele, founded by Minnesota natives Lindsey Holden, Britta Chatterjee, and Shannon Carney, grew to more than $30 million in revenue last year, a 55% increase from 2022.
The founders, who founded the company in 2019 with experience in retail and product development, grew the brand without a huge budget for digital marketing. Instead, it attracted consumer attention through media mentions in beauty magazines, online reviews, and distribution of free samples.
Now, with a new influx of funds from private investors, Odele is preparing a major advertising campaign not only on streaming channels, but also on outdoor platforms such as billboards. Most notably, the brand has signed a multi-year sponsorship agreement with the WNBA’s Minnesota Lynx, making Odele one of the few women-owned companies to sponsor a major professional sports team.
“We are home to many vibrant women-founded businesses in our community and are always striving to uplift and empower women,” said Carly Knox, Lynx President of Business Operations. Stated.
With the Lynx starting the deal, O’Dell’s founders will be able to solidify the brand’s Minnesota identity while putting their product directly into the hands of thousands of fans at the team’s home arena, Target Center. .
“Our goal is to be famous,” Holden said.
start a brand
Chatterjee and Holden met as students in the Branded Enterprise program at the University of Minnesota Carlson School of Management, and both earned master’s degrees in business administration in 2010. Holden has worked in retail and sales for over 15 years, including her eight years as a senior buyer in a retail store. the goal. Mr. Chatterjee helped build brands and rebuild broken brands at companies like Target and General Mills, and eventually entered the hair care and beauty industry. There she met Carney, who has a professional background in operations, accounting, project management and product development.
Holden said the trio caught the attention of Target’s hair care buyers in 2019, asking them to “spend 15 minutes of their time to help us understand O’Dell’s vision and concept.”
What they believed was a real opportunity for a gender-neutral hair care brand, using only natural ingredients, at a lower price point comparable to slightly more expensive products primarily used in salons. It is based on.
The answer from Target buyers was simple. “You’re on to something.” Keep us posted.
After trying 80 different formulations, the trio returned to Target leadership a few months later with a more refined plan for the brand and its first line of various shampoos, conditioners, sprays, and styling gels. They also secured a contract manufacturing partner in Minneapolis-based Evergreen Innovations. The Minneapolis-based retailer has agreed to exclusively sell Odele starting in late January 2020. The founders simultaneously launched his direct-to-consumer website.
The three-year exclusive agreement with Target ends in 2023, allowing Odele to expand to Ulta Beauty and CVS, with more than 7,000 retail stores across the United States.
Holden said he hopes the partnership with Lynx will help draw more people to Odell.
“We want to get more people into the aisle,” she said.
The company initially received $1 million in funding from angel investors, friends and family. In November of this year, Odele secured a minority investment from Stride Consumer Partners. The company raised nearly $8 million from the stock sale, according to government filings. The founder remains the company’s major shareholder.
Growing with women’s sports
Odele is part of a growing number of Minnesota companies investing marketing dollars in sponsorship deals with women’s sports teams.
Sports has become a key category for advertisers to reach consumers, so partnering with Lynx was an easy choice, Holden said. The timing is good, given that demand for tickets and interest in the WNBA is increasing with the emergence of up-and-coming stars such as Caitlin Clark and Angel Reese.
“Half of sports viewers are women, but advertising is not targeting that audience,” Holden said.
As beauty, body and hair care brands such as Secret and Glossier increase their reach into women’s sports, Holden said O’Dell’s founders will consider similar initiatives. Corporate sponsorship deals with the WNBA doubled from 2021 to 2023, and the value of deals with the National Women’s Soccer League increased 56% in 2023 compared to 2021, according to Chicago-based sports marketing firm Navigate.
At the team level, contracts with WNBA and NWSL franchises have increased 41% since 2018, the company said.
“We hope this momentum continues,” Holden said.
