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JuE Wong, OLAPLEX CEO, joined Yahoo Finance Live to discuss the company's market debut and the future of the haircare industry.
- Millions of people know the company Olaplex, but now thousands, perhaps millions of investors can get in on this too. Beauty care hair products company just started trading publicly today and shares closed up. They were up roughly 16% during the IPO. Let's talk about where they're going to go next with this company. And we bring into the stream the CEO from Olaplex Jue Wong. It's good to have you here, congratulations on, this is a remarkable day. So how do you top it? Where do you go next because your product people should know you have a patent protected, I don't want to say shampoo, but product that helps rebuild your hair.
JUE WONG: That's right, and thank you for having me. What we have is really a patented, potent, and proven hair care technology system that kind of relinks your broken bonds to give you the healthiest hair possible. Your question is, where do we go from here? Well, if you think about it, the hair care industry is still at its infancy. Prestige is really the fastest growing segment in hair, and more importantly independent data shows that 91% of women actually know they do something to damage their hair, and they are looking for a fix. And here walks in Olaplex.
- Jue, why was now the right time to go public? We just heard Jared talking about the fact that some of these IPOs have fallen out of favor. You're entering the market at a pretty volatile time. So why did this make sense for your company?
JUE WONG: Well, a couple of good reasons. You've seen from our S1 that we have done really well as a team and the team is ready. More importantly, we want to give ourselves financial options down the road should we choose to. It's a great way to showcase to the trade you know our branding and also to our end consumer, and it doesn't hurt when it comes to retaining and recruiting talent. So all of this just kind of give us that right term, time brother, and really we believe in the long game and we believe that if we continue to increase shareholders value, then we will be definitely a stock to watch.
- Investors should be aware you're the number one haircare brand at Sephora. You're the number two top brand on Amazon across some of your categories. So is it just women because look, thinning, frizzy and would love to rebuild it on top of what my head. Is it men too or where does a guy go?
JUE WONG: Well, men and women, it's just that women are a little bit more in tune you know with their whole self care. But really, if you think about it men damage their head just the same way as women do. If you so much run your fingers through your hair, you're introducing mechanical damage or even combing your hair using a blow dryer after know after your gym workout. All of this damage your hair. And now even sitting in front of this screen with the light bouncing off, that is hurting your hair.
So being able to rejuvenate and regenerate your hair is a huge way in the right moment to really address those damage.
- Jue, we've been talking a lot about the bot-- the supply chain issues that so many companies are facing. I imagine your company has some exposure to this. How have you mitigated some of those issues over the last couple of months?
JUE WONG: Right. What is very important to note is that Olaplex has a very tight skew lined up. We are very strategic, and as a result that we have gotten ahead of the supply chain challenges by controlling the relationships that we have with our manufacturers, our vendor, raw material vendors, suppliers, and our raw ingredients as well. All of this just helps us manage the business so much more strategically.
- I have a selfish question here. I want to ask you because the fact that you have a patent and product here that works and millions of people use it, I've always wondered why you know when we're all much younger than we go threw parties in our 20s and the beer is flying the next day the beer in your hair, your hair always feels better when you wash it. What is going on? Does this have to do with protein in beer, and are these the kinds of proteins that you put into your product?
JUE WONG: I really can't answer that question because I don't really know but what I do know is give Olaplex a try and see how your hair feels because those broken bonds once it's linked, relinked you just feel the difference.
- Jue before we let you go, just tell us what you're seeing just in terms of consumer trends demand for your product. How much is that grown over the last year or so?
JUE WONG: Well, key data points for men on our own olaplex.com shows that they're closing in on 20% of our total consumers. And on Tmall Global in China, that is about that 20% as well that focuses on men.
- We have to say thank you for joining us. I just want to assure you I'm running out, there's a Sephora up the street, I'm going to try it because this I would like to have for the next 20, 30 years. Jue Wong, Olaplex CEO, congratulations on the successful IPO and we wish you all the best, c hope you'll come back as you start reporting.