E.l.f. Cosmetics Puts Beauty Prices on Trial After Raising Its Own
A new ad from e.l.f. Cosmetics goes to court to make the case against overpriced beauty products. But its premise leaves at least one key item off the docket: the budget cosmetics brand’s own recent price increase.
Debuting today (Aug. 11), the campaign casts drag star Heidi N Closet and comedian Matt Rife from the fictional law firm “e.l.f.ino & Schmarnes,” which is on a mission to defend beauty justice.
Parodying low-budget personal injury ads, the spot invites people to call 1-855-COLD-HARD-LASH if price inflation has hurt their wallet. But instead of ambulance chasing, they’re chasing makeup markups while promoting e.l.f.’s low prices.
E.l.f.’s mock trial against inflated prices lands after it raised its own prices by $1 starting Aug. 1, citing inflation and President Donald Trump’s rising tariffs.
On last week’s earnings call, e.l.f. executives warned the annual cost of goods sold could rise by about $50 million, thanks to the newly imposed 55% tariff on goods made in China, where e.l.f. sources 75% of its products. Until May, the rate had been 25% since 2019.
E.l.f. Beauty chairman and CEO Tarang Amin said he expects the tariffs will cause other companies to also raise their prices, but that its transparency about the hike had been well-received by customers.
“We take quite seriously our responsibility to deliver an extraordinary value to our community,” Amin told analysts. “Even the way we’ve taken pricing, of first letting our community know [and] being transparent, has been well received by our community.”
Beyond the price increase, the company is using other means to minimize the effects of higher costs, including accelerating the diversification of its manufacturing. When announcing the price hike in May, e.l.f. also noted 75% of the portfolio will stay priced at $10 and under.
Asked by ADWEEK if the ad was a direct response to growing consumer price sensitivity, e.l.f. chief brand officer Laurie Lam emphasized that the campaign uses humor and storytelling to spotlight its value.
As to whether economic uncertainty is making affordability a stronger brand differentiator, Lam said modern consumers are “more informed, more values driven, and more budget conscious.”
“They expect transparency, quality, and accessibility. At e.l.f., we don’t just listen to our community—we lean in,” Lam said. “Our community has told us they want high-quality products without the high price tag, and that’s what we deliver.”
