Project Overview

KIKI World invites users to "join the future of the beauty industry."

Their concept is simple yet innovative: celebrities and influencers propose ideas for new beauty products on their platform, and users vote on these ideas.

Products that receive enough votes will be produced and sold by the startup. The creators of the ideas will earn a share of the sales revenue, though the exact split between KIKI World and the idea authors is not publicly disclosed.

The voting process happens in multiple stages:

• First, users vote on the general concept of the product.

• Then, they vote on the "super-properties" the product should have.

• Finally, they decide on potential improvements or complementary products for future versions.

Interestingly, voters are also rewarded. Although users don’t (yet) receive a cut of product sales, they earn points that can later be spent on purchasing products on the site.

Additionally, users can buy specially issued NFTs (Non-Fungible Tokens) created by the startup. KIKI World uses blockchain technology for voting, claiming to bring Web3 into the beauty industry — even though the concept could theoretically work without blockchain.

The startup launched in May 2023, and several products created through this process are already available for purchase. Others are approved and available for pre-order.

Before launching, KIKI World raised $3.5 million. They recently secured an additional $7 million in funding, with notable investors including a16z crypto and Estée Lauder’s investment arm.

What’s the Gist

The founders argue that in the $500 billion beauty industry, buyers, not brand manufacturers, play the central role.

Yet brands currently force buyers to pay without giving anything back — no influence on product creation and no rewards for purchases.

Brands spend $75 billion annually on indirect market research and advertising.

At the same time, customer acquisition costs have risen 80% over the last three years, as consumers respond less to ads. This is largely because people spend 40% more time on social media, where they trust influencer opinions more than direct advertising.

KIKI World believes it’s time to eliminate these “roundabout ways” by connecting producers and buyers directly — within a community platform where people can propose ideas, discuss, and vote.

As the startup puts it: “Commerce works better when it happens in a community.”

Within this community, users can share stories about product usage, vote on new ideas, receive samples, and participate in events and prize draws.

It’s likely that samples will be given in exchange for points earned on the site, which makes sense because giving free samples to freeloaders would be a waste.

The startup is also encouraging active community members by allowing them to use points not only for products and souvenirs but also for access to a closed “super-users” group. Ideally, this group operates on a subscription model, requiring ongoing engagement to maintain access.

A veteran forum organizer once told me that a “badge system” is key to sustaining communities: new members want to earn badges, veterans want to show them off and earn new ones, creating an endless loop of engagement.

KIKI World places community interaction at the top of its priorities because strong horizontal bonds between users keep communities alive — not a few influencers broadcasting to silent audiences.

Off/Script, a similar startup in the fashion industry without blockchain. It too allows influencers to propose products, users to vote, and the startup to produce the winning ideas. Off/Script raised $7 million in its first funding round.

Key Takeaways

Manufacturing products under one’s own brand via third-party factories (D2C — Direct to Consumer) is no longer a problem. That’s why D2C production has been growing fast.

The real challenge is selling the products.

KIKI World, Off/Script, and similar startups create communities of potential buyers — where they can first learn what users want, then sell it to them.

Kickstarter pioneered a similar model, but now this approach may become mainstream in many sectors:

• First, the number of brands with similar products is growing, and competition has shifted from product features to audience size.

• Building a brand’s own audience is hard, so it’s easier to join a community where the audience already exists. This is like choosing between building your own Shopify store or selling on Amazon’s marketplace. KIKI World and Off/Script are like marketplaces but with a creative twist.

• Second, people increasingly buy based on social media recommendations rather than traditional advertising.

This means successful sales require creating a social network with all kinds of engagement features — exactly what KIKI World and Off/Script are building.

So the future lies in creating such communities in various product categories.

Which product markets have enough volume, many D2C producers (proving ease of private labeling), and high purchase frequency to keep community members active?

Such startups are still relatively new, meaning there’s room to enter this space. The involvement of big names like Estée Lauder and a16z shows strong market potential.

So, it’s definitely worth trying.

Company Info

KIKI World

• Website: kiki.world

• Last round: $7M, 09.04.2024

• Total investment: $10.5M across 2 rounds