How I Built This with Guy Raz: Dr. Dennis Gross Skincare – Dennis and Carrie Gross
In this compelling episode of How I Built This with Guy Raz, Dennis and Carrie Gross share their entrepreneurial journey of founding and growing Dr. Dennis Gross Skincare into a renowned $450 million brand. Their story is a testament to innovation, resilience, and the power of identifying and filling gaps in the market.
1. The Meeting: A Fateful Encounter
Dennis Gross and Carrie Gross began their journey as neighbors living in the same apartment building on Third Avenue in New York City. Their meeting was serendipitous and marked the beginning of both a personal and professional partnership.
- Dennis Gross (03:11): “We were getting close to signing the deal and then the pandemic hit and the deal was off.”
- Carrie Gross (06:55): “I was literally struck by her. First of all, she looked incredible... and she was so friendly to him.”
Their swift transition from neighbors to spouses highlighted their shared values and mutual support, laying a strong foundation for their future business endeavors.
2. Identifying a Gap in the Skincare Market
In the early 1990s, skincare treatments like chemical peels were gaining popularity, especially among affluent women in New York. However, these treatments often left the skin blotchy and red, leading to dissatisfaction among users.
- Carrie Gross (14:17): “I felt like it made no sense. There's no organ in the body that you injure to make it come back better and stronger.”
Recognizing this “white space” in the market, Dennis and Carrie sought to create a more effective skincare solution without the undesirable side effects. Their combined expertise in dermatology and chemistry positioned them uniquely to innovate in this space.
3. Developing the Alpha Beta Peel
Determined to revolutionize skincare, Carrie Gross devised a new formula for chemical peels that utilized multiple acids at lower concentrations, eliminating the downtime typically associated with such treatments.
- Carrie Gross (16:39): “No blotchiness, no inflammation. The most important second thing was a second step to neutralize it.”
This two-step system not only enhanced the efficacy of the peel but also ensured that users could achieve smoother skin without the prolonged recovery period. The Alpha Beta Peel became the cornerstone product that validated their concept and fueled the brand’s growth.
4. Building the Brand and Going to Market
Initially, Dennis funded the business from his dermatology practice income. The first batches of peel pads were distributed to his clinic's patients, who responded enthusiastically, leading to rapid sell-outs.
- Dennis Gross (22:58): “Our patients loved it. We were selling out of our home kits rapidly and that to us was basically proof of concept.”
Encouraged by this success, they officially launched Maryland Skincare in 1995, targeting spas and day spas in New York City. Their go-to-market strategy included partnering with high-end establishments like the Ritz Carlton and leveraging press coverage in prestigious magazines such as Elle, Vogue, and Harper’s.
5. Overcoming Challenges: Financial Crisis and Lawsuit
The journey was not without hurdles. In 2008, the financial crisis posed significant threats to their business, leading to store closures and reduced consumer spending.
- Carrie Gross (40:09): “Our employees were so loyal and we had such an incredible culture... they agreed to go for weeks without pay for us to catch our breath financially.”
Their strong company culture and loyal workforce enabled them to navigate these turbulent times. Additionally, a legal dispute with MD Formulations, another skincare company, forced them to rebrand from Maryland Skincare to Dr. Dennis Gross Skincare in 2010.
- Dennis Gross (41:05): “We just decided we wanted out. We weren't going to fight the lawsuit. We were just gonna change our name.”
Despite the challenges, these adversities strengthened their resolve and commitment to maintaining the brand’s integrity.
6. Innovation and Product Development: LED Light Mask
Continuing their legacy of innovation, Dennis and Carrie ventured into skincare technology by developing an LED light mask, inspired by procedures used in their dermatology practice.
- Carrie Gross (48:22): “It stimulates collagen. There's receptors in the skin... it turns on the production of collagen.”
This device, leveraging NASA-developed technology, became a viral sensation on TikTok, significantly boosting the brand’s visibility and appeal to a younger audience.
7. Growth and Acquisition by Shiseido
By 2020, Dr. Dennis Gross Skincare had established a robust presence both domestically and internationally. Seeking to amplify their global reach, Dennis engaged with private equity firms, eventually partnering with Main Post Partners.
However, the onset of the COVID-19 pandemic disrupted their plans. Stores closed, and the initial deal with Main Post fell through. Demonstrating remarkable adaptability, they pivoted to focus entirely on digital marketing, leveraging platforms like Instagram to maintain customer engagement.
- Dennis Gross (53:02): “We just rolled up our sleeves and went all in in the digital space.”
Three months into the pandemic, Main Post revisited the partnership, allowing them to proceed. This strategic move paved the way for their eventual acquisition by Shiseido in 2023 for approximately $450 million.
- Carrie Gross (54:20): “We're still full time and I still create the products and it's been a great journey.”
The acquisition not only validated their hard work but also provided the resources and expertise to scale the brand globally, launching into 17 countries within three months with Shiseido’s support.
8. Reflections and Lessons Learned
Reflecting on their journey, Dennis and Carrie attribute their success to discipline, creativity, and a relentless pursuit of innovation rather than mere luck or timing.
- Dennis Gross (55:41): “I think it was really a lot of discipline, a lot of creativity, curiosity, just like seeking out the white space and disrupting and results.”
- Carrie Gross (55:55): “If you really are distinctive in what you're bringing to the consumer and to the industry, then I think that people will support you, people will buy your product.”
Their emphasis on delivering tangible results, maintaining product efficacy, and fostering a supportive company culture were pivotal in building a beloved and trusted brand.
Conclusion
Dennis and Carrie Gross’s story is a masterclass in identifying market needs, relentless innovation, and overcoming adversity. Dr. Dennis Gross Skincare stands as a beacon of how passion, coupled with expertise and strategic thinking, can transform a simple idea into a global phenomenon. Their journey underscores the importance of resilience, the value of a loyal team, and the impact of staying true to one’s vision.
Notable Quotes:
- Dennis Gross (03:21): “It was like, oh my God... Are we gonna lose our company?”
- Carrie Gross (16:39): “No blotchiness, no inflammation. The most important second thing was a second step to neutralize it.”
- Dennis Gross (22:58): “Our patients loved it. We were selling out of our home kits rapidly and that to us was basically proof of concept.”
- Carrie Gross (40:09): “Our employees were so loyal and we had such an incredible culture... they agreed to go for weeks without pay for us to catch our breath financially.”
- Dennis Gross (55:41): “I think it was really a lot of discipline, a lot of creativity, curiosity, just like seeking out the white space and disrupting and results.”
This detailed summary encapsulates the essence of Dennis and Carrie Gross’s entrepreneurial journey, highlighting their challenges, innovations, and ultimate success in building a globally recognized skincare brand.