Diary of a Brand: Dr Dennis Gross SkincareWhat celebrity brands can learn from the $100M+ brand
According to Bloomberg, more than 50 influencers and celebrities launched cosmetic, haircare, and skincare brands in the 3 years since March 2023. Many of these brands are attempting to make a name in skincare, from tennis star Naomi Osaka’s Kinlo Skincare, to Vanderpump Rules’ Lala Kent’s Give Them Lala, and actor Brad Pitt’s Le Domaine.
Celebrities are looking to cash in via skincare. Source: Michelle Wiles
In the midst of all these launches, another skincare brand has quietly turned into a 9 figure brand without a celebrity or influencer at the helm. Scientist turned dermatologist Dr Dennis Gross and his wife Carrie Gross co-founded Dr Dennis Gross skincare in 2000. The brand aims to reach $300M in annual revenue by the end of 2023.
How did Carrie and Dr. Gross manage to take their brand to 9 figures in a market increasingly dominated by founders with built-in audiences?
In a word (or two): white space.
In this Diary of a Brand, we’ll explore the history of Dr Dennis Gross Skincare, and what aspiring brands can learn from the dermatology brand.
The history of Dr Dennis Gross Skincare
Dr Dennis Gross Skincare was born almost on Carrie and Dennis’ first date — when their conversation turned to anti-aging products. Carrie mentioned the products she was using to care for her skin. There are no active ingredients there, remarked a shocked Dennis:
We spoke for hours about skincare on our first date — she showed me the moisturizers that she was using at the time and I was shocked. The formulas contained no active ingredients… This is when I began understanding the lack of effective skincare products on the market and knew that I could fill the gap. -Dr. Dennis Gross, Cosmeterie
Carrie, who had a successful career in fashion, had a similar premonition:
I was telling him about my journey and looking for [skincare] products that work. I’m like, “There’s nothing available”… I really felt in my mind that we were going to start a brand. -Carrie Gross, Beauty Independent
But the pair did not get into business straight away. Both Carrie and Dennis felt like it only made sense to launch something that would add something new to the market:
There wasn’t that aha moment. I didn’t want to launch a brand with just a moisturizer because that’s not a clearcut position in the market. I was really looking for that white space: What could we bring to the consumer that was innovative and different?
- Carrie Gross, Beauty Independent
Developing the product: A unique perspective on the problem
The couple had the right background to start a skincare line. Dr. Gross was a practicing dermatologist with a focus on skin cancer research, which meant he had the skills to formulate new products. Carrie’s experience as a fashion merchandising director meant that she understood sales and marketing.
But just as important: the couple had a unique perspective on skin treatments: no downtime. Many skincare procedures come with recovery times. A chemical peel might leave your skin red, puffy, and sensitive to sunlight for a on week or more. Per Dr. Gross, skincare should not require a recovery period:
You should never harm your skin in order to make it better. Your skin is an organ — you would never harm your heart or lungs in order to approve them. The same goes for skin.
-Dr. Dennis Gross, W Magazine
Carrie brought similar insight from the point of view of a busy customer:
Everything was painful, expensive and had downtime. It wasn’t ideal for someone’s lifestyle like mine. I had to show up at meetings. I didn’t have two weeks to be suffering in my apartment. — Carrie Gross, Beauty Independent
With a defined problem (lack of efficacy) and unique perspective (no downtime), the Gross’ had a clear remit for the type of product that was missing.
A few years later, Dr. Gross formulated a treatment that fit: the Alpha Beta peel. Like a peel at a dermatologist, the product promised skin rejuvenation. But unlike a typical peel, the product had zero recovery period. How? The Alpha Beta peel is actually a two step procedure:
- Step 1 exfoliates the skin with a gentle cocktail of alpha-hydroxy acids (AHAs) and beta-hydroxy acids (BHAs) which help dissolve dead skin cells.
- Step 2 acts as a neutraliser, “turn[ing] off the acids and flood[ing] the skin with repairing and strengthening ingredients.”
The result? Smooth, radiant skin with no downtime.
Dr Dennis Gross Skincare’s initial and top selling product: The Alpha Beta Peel. Source: Dr Dennis Gross
Dr. Gross tested the peel on Carrie, and she knew this was it:
It didn’t hurt… It was the fastest, most effective, transformative treatment I ever had. The light bulb went off. I told Dennis, “I’m going to start a brand.” — Carrie Gross, Beauty Independent
Her idea was to bring this treatment to customers’ homes, allowing them to get dermatology-level results without a spa appointment.
Creating the brand proposition: Medical credibility at the center
Carrie designed the brand to emphasize its medicinal roots, naming it ‘MD Skincare.’ As for marketing, Carrie started with the professional channel, targeting salons and aestheticians. This strategy made sense given the whitespace nature of the product. A moisturizer can be sold anywhere because customers know what it is and how it works. But a product like a peel, which already has harsh associations, has an uphill battle. Aestheticians served as in person educators for the brand.
Dr Dennis and Carrie chose to call the first iteration ‘M.D. Skincare’ out of fear that a skincare brand labeled ‘Gross’ would not take off. Source: Beauty Independent
As the product gained traction, retailers like Sephora and Nordstrom asked to stock the product. These stores complemented the spa channel, as customers who discovered the product in a spa could then rebuy it where they shopped regularly.
A year and a half after launch, Carrie and Dr. Gross decided to ditch the generic branding and lead with the Dr Dennis Gross name. A refreshed design maintained the idea of medical grade skincare:
A coincidence? Dr Dennis Gross’ branding reflects the iconic prescription bottle. Source: Dr Dennis Gross
The brand has grown at double digits every year, reaching $100 million revenue in 2020. That same year, Dr Dennis Gross Skincare accepted minority investment from PE firm Main Post, whose other investments include cosmetics brands Too Faced and Milk Makeup. Main Post’s investment is slated to triple sales in 3 years via digital marketing and international expansion. Sales figures are not publicly available, but anecdotally I have been recommended Dr Gross’ peel pads by my step mom, my hairstylist, and a friend — all within the past 12 months.
Dr Dennis Gross Skincare continues to expand its product portfolio, with new products including mask devices and treatments focused on SPF and Vitamin C + Lactic. Nevertheless, the Gross’s remain focused on only delivering innovations that uphold their brand of effective skincare:
We never want to have a ‘me too’ product. It has to be breakthrough, it has to be different, it has to solve a problem, and it has to over-deliver... The Alpha Beta Peel set the bar so high. Every product we create has to measure up to the consumer expectation we created with that. — Carrie Gross, The Observer
The Vitamin C Lactic line is designed to prevent and correct sun damage. Source: Dr Dennis Gross
Grading Dr Dennis Gross Skincare: The brand flywheel model
In the Diary of a Brand series, I posit that great brands are not just the result of strong marketing, but a reinforcing operating model that connects brand, product, and price to underlying operations. For example, IKEA’s flat pack furniture, out of city locations, and reliance on customers to assemble goods allow IKEA to save costs and invest in a killer offering of good design at low prices.
Great brands are supported by strong operations. Source: Michelle Wiles
How does Dr Dennis Gross skincare stand up?
According to Dr Dennis Gross Skincare’s website, the brand purpose is to make caring for your skin a source of joy.
Brand <> Product: Brand and product align perfectly: Dr Dennis Gross’ peel pads deliver an aha, satisfying moment due to their ease of use and near immediate impact on skin texture. As the brand expanded, the team has kept focus on effective products to uphold the brand promise.
Brand, Product <> Price: Dr Dennis Gross Skincare prices in line with most anti-aging skincare at Sephora, with moisturizers in the $65 to $90 range, and peels around $3/treatment when bought in a pack of 30 ($92/box). Importantly, a peel from Dr Dennis Gross ($3) is a bargain when compared to a facial ($70-$300) or peel ($500+) from a New York City salon. This premium-but-not-luxury price offers credibility while also widening Dr Dennis Gross’ audience from dermatology customers to all Sephora shoppers.
Brand, Product, Price <> Operations: Great brands are supported by unique operations, and Dr Dennis Gross Skincare is no different. Key to the Gross’ brand success is their research-based operating model. Dr. Gross maintains his New York City and Hamptons dermatology centers, which means he hears directly from customers about their needs. He has a staff of researchers (and continues to research himself) to produce new innovations to address these needs.
This stands in stark contrast to the operations of other name-led skincare brands, whose model often consists of putting the name of the founder on a bottle of outsourced product:
There is a concept of contract manufacturing. There are companies that create vats and vats of different moisturizers and serums. And then they sell to companies and doctors and put a label on it and sell it as their own. -Dr Dennis Gross, Glossy Beauty Podcast
Another difference? The Gross’ do not have a product launch calendar. Instead, they release products when they have innovations that meet their high standards of offering something both new and effective:
If a new ingredient is discovered or Dennis does research, then we might launch a new category. We typically evaluate our brand assortment multiple times a year and make sure it’s the best it can be. — Carrie Gross, Beauty Independent
Given the focus on whitespace products, the Gross’ have continued to invest in education as a core tenet of their marketing, with masterclasses, quizzes, and free consultations available on their website.
drdennisgross.com offers free virtual skincare consultations with licensed estheticians
Finally, Dr Dennis Gross vets its products with third parties to ensure their promise of skincare that works, works:
We use third parties to test our products. They want a doctor and that credibility. — Carrie Gross, Beauty Independent
Dr Dennis Gross Skincare’s brand flywheel. Source: Michelle Wiles
Net: Dr Dennis Gross Skincare stands on a strong, reinforcing model that helps them develop products with clinical results— allowing the brand to own and defend a unique space despite operating in an increasingly competitive category.
What can aspiring brands take away from Dr Dennis Gross Skincare?
1. Define a white space.
Skincare (along with most consumer categories) is a highly competitive market, with many obvious needs addressed already. In order to catch on, you need a product that offers something new. What is the reason for your product to exist?
2. If you want to compete with someone who has a bigger marketing budget, invest in great product.
Celebrities have access to large audiences, which can kickstart marketing efforts. However, large audiences are only useful for converting customers once. Without a stellar product, influencers miss out on repeat purchase, and need to constantly recruit new audiences — just like any other brand.
On the other hand, great products result in the ultimate influencer: friends. Friends refer others, meaning that a brand can grow without significant media spend.
3. Understand (and aid) your customer journey to purchase.
If you’re delivering a true ‘white space’ product like Dr Dennis and Carrie Gross, it’s likely that your customer does not know that your product exists (or how to use it). Carrie’s decision to go for professional salon channels (despite selling a product meant for at home use) was smart, as it allowed aestheticians to teach customers about the peel process.
The future of Dr Dennis Gross Skincare
Dr Dennis Gross faces regular competition from CPG firms, entrepreneurs and celebrities entering the skincare market. However, by focusing on delivering breakthrough products and creating an operating model that supports the discovery of new ones, the Gross’ have built out a competitive space that will be tough for new brands to shake. The thousands of glowing reviews hint at a positive future for the brand.
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