The cofounder and CEO of Hero Cosmetics could be finest recognized for Mighty Patch, the ever-present barely-there pimple patch you might even see on folks’s faces in all places from the grocery retailer, to the workplace, to an evening in town.
“When you have acne, you feel more insecure, you feel more introverted, you feel like everyone is staring at your face,” Rhyu, 45, instructed Fortune. “The products and solutions we offer really do work and really do save the day. It was really important for me to have something punchy, positive, and emotional.”
Hero emerged after Rhyu’s two-year stint in Korea for work, a rustic the place skincare is many years forward, and the place pimple patches in public have been fully normalized. With a pair of cofounders at her facet and simply $50,000, Rhyu bought her first set of Mighty Patches on Amazon for $12.99 in 2017. By 2022, the model had notched $100 million in gross sales, and was acquired by client merchandise powerhouse Church and Dwight for $630 million.
Within the newest installment of Secrets and techniques to Success, Rhyu instructed Fortune how her time at Fortune 500 manufacturers knowledgeable her management, why she places her pimple patches within the beauty aisle (somewhat than their pure residence within the Band-Help aisle), what Korean skincare is aware of that American magnificence doesn’t, and why her firm retains its branding easy and translucent as a substitute of neon and star-shaped.
The next transcript has been flippantly edited and condensed for readability.
What’s Hero Cosmetics?
It’s a practical pores and skin options model centered on pimples. We’re best-known for the “money patch” hydrocolloid pimples patches.
The place did you develop up, and what did your dad and mom do?
I grew up in Seattle, Washington. My dad was a fairly profitable entrepreneur, and I grew up with that inspiration in my life, and it fed a whole lot of my need to be an entrepreneur in the future.
We have been very snug. My dad was within the log-export enterprise. He was a log dealer, which is why we lived in Seattle, Washington. He additionally did a couple of issues in actual property, and he was very business-minded. I all the time grew up with the will and the ambition to observe in his footsteps and attempt to be as financially profitable as attainable.
In highschool, I performed tennis, I used to be on my highschool tennis staff and I labored on the tennis membership the place I used to be taking classes. I had the same old odd jobs right here and there. I did gross sales, for instance, at a division retailer throughout my summers away from faculty.
I went to varsity at Brown College and I studied historical past and worldwide relations. I truly tried to start out a enterprise whereas I used to be in faculty, a design company referred to as Three P’s. So once more, I believe that [entrepreneurial] need was all the time there, however I by no means actually had that sturdy concept till Hero Cosmetics.
My first skilled job after faculty was at a nonprofit referred to as the Epiphany College, a constitution faculty in Dorchester, Massachusetts. I labored in a fundraising capability within the Improvement Workplace, which truly, on the finish of the day, is known as a gross sales and advertising job. That was my first job.
I truly graduated into two recessions, the primary one being in 2001, and the second being in 2008. My profession has positively not been linear. After that nonprofit job, proper after undergrad, I needed to enter enterprise. I didn’t wish to do one thing in advertising. That’s after I ended up making use of to Columbia Enterprise College.
I began in 2006, after which I did my internship at Kraft Meals, Mondelez, in client packaged items. I did an internship in model administration. I labored on the Planters Peanuts model. From there, I went full-time at American Specific. After which I obtained recruited to work for Samsung in Korea as an expat for 2 years. That have of dwelling in Korea for 2 years is the place I first used a hydrophilic pimples patch, which finally turned the inspiration for my new ardour, Hero Cosmetics.
I all the time joke that I labored at among the world’s largest manufacturers—Kraft Meals, Mondelez, American Specific, and Samsung Electronics—after which ended up beginning an indie skincare model.
Hydrocolloid patches have been extremely popular in Korea?
This was again in 2012 and 2014. These are the 2 years I spent in Korea—12 years in the past. I used to be 35. Korea is actually recognized within the magnificence trade to be very forward of the curve when it comes to magnificence, innovation, and adoption.
Again in 2012, folks have been already carrying them out in public. I might see folks carrying them on the workplace, and I requested them what they have been for and was instructed that they have been for breakouts. I used to be affected by a bunch of breakouts at the moment.
I went to a pharmacy, I attempted one, and it modified my skincare routine as a result of it really works so significantly better than something I had used earlier than. I put it on at night time, and by morning, it obtained all that gunk out. My breakout was visibly and noticeably improved. Instantly I knew extra folks wanted to find out about it. And I truly noticed from a few of my analysis that individuals have been wanting this sort of product, in order that turned the inspiration for what’s now Mighty Patch.
What was the branding like for the patches in Korea? Had been they particularly branded on your face?
There have been a whole lot of choices again then. You may discover some at pharmacies that have been extra medical or clinical-oriented. After which there have been some you could possibly purchase at Olive Younger, which is the Korean model of Sephora, which have been a little bit bit extra enjoyable and cosmetic- and beauty-oriented. So there have been two kinds of manufacturers on the market.
Rising up, I all the time had occasional breakouts. I by no means had extreme pimples, however on the worst moments, I might all the time have that breakout in probably the most embarrassing place on my face, like proper on my nostril or between my eyebrows. Like most individuals, I used to be all the time trying to find an answer to get a greater deal with on my breakouts and pimples.
I used each single chance on the market. I went to dermatologists, used toothpaste, used the pink lotions, and nothing actually labored, as a result of a whole lot of these merchandise can truly be very drying in your pores and skin. That’s why I actually love the hydrocolloid pimples patches as a result of they’re powerful on the issue however mild in your pores and skin—they usually’re simply really easy to make use of and really efficient.
Previous to discovering out about these patches, have been you ever into dermatology earlier than?
I wasn’t actually into magnificence or skincare. I truly realized about it quite a bit after I lived in Seoul for these two years. I realized about double cleaning and the several types of merchandise and codecs. My training began after I lived there, after which in fact, now I’m within the magnificence world, so I listen fairly a bit.
Why do you place the patches within the magnificence part as a substitute of the Band-Help part?
I credit score a whole lot of my success at Hero Cosmetics to my company expertise. I realized a whole lot of issues at Kraft Meals and Mondelez and American Specific that I actually nonetheless use to this present day. Considered one of them is actually taking note of client conduct.
One of many client behaviors I seen was that the hydrocolloid-patch format was truly already round for fairly a very long time, however they have been within the Band-Help aisle. And if you concentrate on it, your breakout will be thought of a sort of wound, however there was nothing, at the moment, within the magnificence part.
And actually the concept was, can we take this hydrocolloid bandage that sits within the Band-Help aisle, and make one thing very particular to pimples? I had already seen that individuals have been shopping for the large bandages and reducing them up into small squares or small shapes and placing them throughout their face. The conduct was already there; folks have been shopping for them in a single aisle, however utilizing them for a magnificence concern. And that was actually the perception of, hey, I believe we will flip this right into a magnificence product and actually market one thing that’s particular for pimples.
How did you find yourself creating your first product?
I created the primary product fairly rapidly, truly. I had contacted greater than 10 hydrocolloid-patch producers whereas I used to be in Korea, however solely two responded. Of these two, the one which we ended up working with, we nonetheless work with at present. They’re clearly a very vital associate to our enterprise, and we labored with them to actually develop what’s now often called the Mighty Patch.
How outdated have been you when the primary product got here out?
We launched the enterprise in 2017. I used to be round 37.
How a lot did you begin out promoting your merchandise for?
We priced our preliminary product, which was the 36-count Mighty Patch, at $12.99. The pricing truly was sort of an accident, as a result of we have been promoting on Amazon, and there have been already some gamers that have been quite a bit cheaper—round $5. And I truly needed to cost our merchandise at $9.99.
However the comic story is we couldn’t get Amazon Prime, and we have been enjoying round with various things to see how we may unlock Prime. One of many methods was to extend our value to $12.99, after which that pricing simply caught.
Why did you determine to start out promoting them on Amazon?
It was strategic, but in addition a really sensible choice. Again then, I didn’t actually know that Amazon was poo-pooed upon by a whole lot of gamers within the magnificence trade. However for us, I noticed that the patron was already shopping for this sort of product on Amazon.
So once more, there have been a couple of different acne-patch gamers on Amazon on the time—not as many as at present—however I noticed that individuals have been shopping for this sort of product on Amazon, and the demand and the conduct was there. So it made a whole lot of sense for us to strive it out. It was additionally the simplest, quickest, and least expensive, and we have been bootstrapped.
It didn’t take some huge cash, funding, or sources to stand up and operating. You may stand up and operating, most likely, in a day if in case you have the fitting photographs and replica. Amazon was a spot for us to check and be taught and to validate the thesis that individuals would actually be into this sort of product and this sort of model.
You talked about there have been a couple of different pimples patch gamers; why do you suppose Mighty Patch particularly turned so profitable?
We’re nonetheless, even to this present day, the number-one pimples patch model within the US. I believe now we have a superior product. We personal a really particular formulation, and other people can discern the distinction between ours and our competitors.
We’ve got a model that basically resonates with lots of people as a result of it’s very inclusive and emotional. Lots of people can determine with our messaging and content material. To start with, we truly solely launched the patches, however I needed to broaden out in a short time into completely different product varieties.
I needed to do a wash-off face masks, however somebody instructed me to stay to patches, and do them in each form, and each measurement for each want—simply dominate this class. And I assumed she was proper, in order that’s what we did. I believe that experience on this one class actually led us to create a whole lot of belief, and it’s a giant cause why we’re nonetheless primary.
How lengthy did it take on your merchandise to promote out?
The primary buy order for the model was round 10,000 items, which we bought by way of in about 90 days. The launch and the uptick for us was fairly fast.
Are you able to describe your buyer base?
It’s predominantly ladies. Once we began Hero Cosmetics, the branding was truly very gender-inclusive. That was very intentional, as a result of I needed this model to be for anyone and everyone who broke out. It wasn’t only for ladies, it wasn’t only for males. It was actually for everyone. However curiously, as we launched and constructed the enterprise, the first client ended up being extra feminine. I don’t have the newest stats, however I believe it’s round 75% feminine. They nonetheless are the biggest client of most magnificence manufacturers and sweetness merchandise, ours included.
How did you fundraise to start out the corporate?
We truly didn’t fundraise. Again in 2017, that was very in opposition to the grain. I inform people who generally zigging when others are zagging can work to your profit. Again then, massive funding rounds and elevating VC {dollars} was very stylish. We didn’t try this; we determined to bootstrap.
We’ve got two co-founders, and all three of us put our personal cash into the enterprise. The philosophy was: This enterprise wants to face by itself two toes. This product must be money circulate optimistic and worthwhile. So we have been very, very environment friendly with our bucks. In whole, I believe we launched with about $50,000 between us.
Another firms have now created pimples patches with a really shiny design? What’s Hero’s technique behind protecting its patches clear?
There’s a whole lot of competitors within the class now, and I truly credit score a whole lot of it to our success. Some manufacturers have colours and shapes and are extra enjoyable. We haven’t finished that; we preserve that clear, extra discreet patch format.
We’ve finished that very deliberately to be inclusive and accommodate everybody, from the 14-year-old to folks of their 50s. I believe the way in which that we will do it’s to be discreet. We acknowledge that the intense colours and shapes may go for some folks, however it received’t work for everyone. We launched with the extra translucent, discreet patches, and we’re the consultants in it. That’s type of our factor.
You’ve talked about that you simply consider a whole lot of these different firms created pimple patches on account of Mighty Patch’s success.
My ideas on competitors are: A rising tide lifts all boats. I believe we’re all creating this class collectively. It’s a brand new class, a brand new product format, and I welcome different gamers as a result of the training they do within the market actually helps us all.
It’s develop into fairly frequent to see folks carrying patches out in public. Why do you suppose persons are feeling so snug doing so?
After I see folks carrying pimples patches out in public, I truly really feel actually proud about what we’ve finished. I used to be actually attempting to make pimples extra acceptable and actually discuss extra positively about pimples and understanding that it’s no large deal. So many Individuals, and actually folks all around the world, get away every now and then.
I believe over 60 million Individuals could have pimples in some unspecified time in the future. So I like seeing folks put on them to the workplace or simply out and about, as a result of I believe what it means to me is we’ve finished our job and damaged down the taboo facet of pimples and made it okay to be nearly happy with it.
It’s additionally extremely popular for folks to put on pimple patches on social media. What’s that impression been on the enterprise?
Social media, for us, clearly has been such a key think about our rise as a model and as a enterprise. Particularly when it comes to educating the market, as a result of, once more, it’s a brand new product class and a brand new product format and training was actually key. So social media, Instagram and TikTok—we name it the magic second. The magic second is whenever you peel off the patch and might present how properly it really works on social media. That shock issue of, oh my god, have a look at all that gunk. That kind of content material goes viral quite a bit, and that virality helps with training. Social media, clearly, has been so essential to the success of our enterprise.
What was the method of making the Mighty Patch formulation? What number of exams did it’s a must to undergo till you discovered the proper one?
We relied quite a bit on our producer for the formulation, which many magnificence manufacturers do. It was a formulation that has been perfected over time. Each model has their very own formulation for making the hydrocolloid gel, and we discovered what we felt was the fitting steadiness when it comes to adhesion, and efficacy, and one thing that was discreet sufficient to be wearable in public. I believe we landed on the fitting one.
Why and the way did you select the identify Hero Cosmetics?
Once we have been beginning the model, it was actually vital to me that now we have a reputation that was each emotional and optimistic, as a result of from my private expertise, when you will have pimples, you are feeling extra insecure, you are feeling extra introverted, you are feeling like everyone seems to be watching your face. And the merchandise and options we provide actually do work and actually do save the day. It was actually vital for me to have one thing punchy, optimistic, and emotional.
Once we got here up with Mighty Patch, I simply knew that was an ideal identify. It linked the facility and the energy and was type of whimsical. The Hero Cosmetics identify is as a result of we needed our merchandise to be the ‘hero products’ in folks’s on a regular basis skincare routines.
When did you truly begin creating completely different merchandise?
I by no means needed Hero to be only a patch enterprise or patch model. It’s humorous; the draw back of being so sturdy on this patch class is typically folks suppose that our model identify is Mighty Patch. However truly, the model identify is Hero and Mighty Patch is only a product, and we do produce other merchandise. I all the time needed to create an pimples model and acne-care model that was a full resolution.
For a daily-care remedy, now we have one thing that we check with as “Repair and Restore.” And really, what we see in our enterprise is that most individuals come by way of the Mighty Patch franchise. We purchase manufacturers by way of the Mighty Patch product, however lots of people are so happy with that have that we ended up cross-selling and upselling throughout our portfolio.
However we do have a set. We’ve got a toner, now we have a cleaning balm, now we have the rescue balm franchise, and now we have a whole lot of different merchandise. And so we welcome folks by way of Mighty Patch, after which we introduce them to the opposite suite of merchandise from there on.
I by no means needed Hero Cosmetics to be only a patch enterprise or a patch model. Mighty Patch is our most well-known franchise. We did begin with them. We’re the consultants on this class. It’s wonderful to see how we constructed the Mighty Patch as an acquisition engine into the model for customers and it lets us introduce them to our complete suite of different merchandise.
Do you will have a perspective on work-life steadiness?
I believe whenever you’re an entrepreneur, it’s much less about steadiness, and extra about work-life integration. For instance, I used to be dwelling in Paris for six years. And there’s a six-hour time distinction between New York, the place our enterprise relies, and Paris. Fortunately, over there, we ate late, at 8pm. However I might not take conferences or calls after dinner. I instructed the staff, I’d reply to emails or Slacks, however I wouldn’t take calls.
For me, it’s actually nearly discovering a schedule that works for you. It’ll be completely different for everybody. I don’t suppose we will count on anybody to be on on a regular basis, 24/7. Setting these guardrails is wholesome for everyone.
What’s your philosophy on distant work? Do you discover it difficult to have a bunch of predominantly distant staff?
I like distant work. I earn a living from home, however I do go to the New York workplace every now and then. My philosophy is that you simply want a steadiness of each. I might discover it tough in case you’re 100% distant on a regular basis, as a result of I believe tradition is actually vital, and it’s exhausting to construct tradition on-line.
The opposite factor I don’t like about distant work is that I don’t get to construct relationships with folks. In the event you’re simply on a display, I don’t actually discuss to you, which, to me, is sort of unhappy. However after I go to the workplace, I like having informal watercooler conversations, like: What did you do that weekend? Any new eating places you’ve checked out? I like doing that with individuals who I may not have conferences with every day. For me, it’s each. I believe each are nice.
