The Barefaced Podcast: Episode Summary
Episode Title: MCo Beauty: The $1B Shady Business
Host: Lily Twelve Tree
Release Date: March 17, 2025
Introduction to Beauty Dupes
[00:27]
Lily Twelve Tree opens the episode by introducing the controversial topic of beauty dupes. She defines dupes as affordable duplicates of high-end beauty products, distinctly different from counterfeits, which are illegal imitations intended to deceive.
"A dupe is a slang word for a duplicate and it's used to describe products designed to resemble higher-end items closely but with a significantly smaller price tag." — Lily Twelve Tree
Emco Beauty: A Case Study in Duping
Lily delves into Emco Beauty, an Australian brand notorious for producing dupes that mirror the packaging and design of luxury brands without infringing trademarks. Emco has experienced explosive growth, shifting from a modest turnover of $11 million in FY20 to an anticipated $330 million in FY25. This surge is attributed to their strategy of replicating trendy products and distributing them en masse at lower prices.
Legal Landscapes: Trademark Law 101
Part One:
Lily explores the legalities surrounding duping, focusing on trademark law. She discusses two significant lawsuits against Emco Beauty:
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Tarte Cosmetics vs. Emco Beauty (2021):
Tarte accused Emco of copying the Shape Tape Concealer packaging, specifically the chevron pattern on the lid."If a consumer walks down the shopping aisle and picks up a product thinking it's another, then it is too substantially similar and a judge could deem it is too confusing." — Dr. Sarah Hook, University of Western Sydney [Timestamp Unknown]
The case was settled out of court, leading Emco to modify their packaging to avoid resemblance.
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Chem Corp vs. Emco Beauty:
Chem Corp alleged that Emco introduced a dupe named 2000 Hours for their 1000 Hour Eyebrow Dye. The lawsuit was also settled confidentially, with Emco rebranding the product and halting sales, resulting in excess inventory.
Trademark Strategies:
Emco strategically chooses retailers like Woolworths and Chemist Warehouse to minimize consumer confusion, ensuring that dupes are associated with affordable outlets rather than high-end stores.
"Emco has 19 approved trademarks in Australia... They have trademarked the logo in a circle that is in a straight long line sitting like the circle sits close to the bottom of this kind of line." — Lily Twelve Tree
Manufacturing and Business Operations
Lily investigates Emco's manufacturing processes, revealing that a significant portion of their popular SKUs originates from a single manufacturer in Dongwon, near Gwangju, South Korea. Emco's lack of trademark protection on formulas allows them to replicate products efficiently, often resulting in variations over time that consumers notice.
"Emco hasn't trademarked their own products... they don't trademark the actual formula." — Lily Twelve Tree [Timestamp Unknown]
Consumer Perception and Social Media Influence
Part Two:
The discussion shifts to consumer perspectives on dupes, highlighting the polarized opinions across different social media platforms:
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TikTok:
Emco thrives on TikTok, where the culture favors affordability and trend participation over product performance. The platform's emphasis on "shelfies" (photos of product collections) has shifted consumer focus to packaging aesthetics."TikTok has become a bit of a glorified shopping platform... there's this kind of pride that now is being associated with when people find a cheaper version of something." — Lily Twelve Tree
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YouTube and Reddit:
Platforms like YouTube and Reddit show mixed sentiments. YouTube users are generally more critical of Emco, while Reddit exhibits a 68% positive sentiment towards the brand."Razia Mo has publicized her dislike for the brand... yet her comment section and mine are filled with people supporting Emco." — Lily Twelve Tree [Timestamp Unknown]
Influencer Marketing:
Emco's heavy investment in influencer partnerships allows them to subtly promote their dupes without directly engaging in comparative advertising, which carries legal risks. Influencers like Pookie and Jet have been pivotal in Emco's U.S. expansion, portraying the brand as offering "luxury for less."
Future Projections: The Evolving Dupe Market
Part Three:
Lily examines the future of beauty dupes, emphasizing Emco's aggressive expansion into the U.S. and Europe. Notable points include:
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U.S. Market Penetration:
Emco launched in 1,800 stores and expanded to 3,000 stores within a year, leveraging influencers and mass distribution. Analyst Corrine Wolfmayer notes that affordable beauty brands like ELF Beauty can sustain tariffs by modest price increases, a strategy Emco may adopt."The cost of the tariff is often split between its suppliers and the company itself... they only need to raise their prices by 20%." — Corrine Wolfmayer, Piper Sandler [Timestamp Unknown]
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European Expansion:
Emco targets Europe, particularly France and Germany, where dupe culture is emerging but remains less saturated than in Australia and the U.S.
Host’s Reflections and Conclusions
Lily concludes with personal reflections, expressing mixed feelings about Emco's business ethics. While she criticizes the deceptive aspects of duping and its impact on the beauty industry's integrity, she acknowledges the business acumen behind Emco's success.
"I do not like her approach or perspectives on removing all ethical considerations from work and her consistent perspective that making money is entirely what business is about." — Lily Twelve Tree [Timestamp Unknown]
She calls for a deeper understanding of beauty manufacturing and invites industry insights to further explore the complexities of the dupe market.
Key Takeaways
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Dupes vs. Counterfeits: Dupes offer affordable alternatives without the intent to deceive, unlike counterfeits.
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Emco Beauty's Strategy: By replicating high-end product packaging and focusing on mass distribution through affordable retailers, Emco has achieved significant growth.
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Legal Navigation: Emco deftly navigates trademark laws, settling lawsuits by modifying packaging and strategically selecting retail partners to minimize consumer confusion.
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Consumer Dynamics: Social media platforms influence dupe popularity, with TikTok playing a crucial role in Emco's success through influencer partnerships and trend-driven marketing.
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Future Outlook: Emco's expansion into the U.S. and Europe signifies a growing acceptance of dupes, though it raises concerns about industry innovation and ethical business practices.
Notable Quotes with Timestamps
-
[00:27]
"A dupe is a slang word for a duplicate and it's used to describe products designed to resemble higher-end items closely but with a significantly smaller price tag."
— Lily Twelve Tree -
[Timestamp Unknown]
"If a consumer walks down the shopping aisle and picks up a product thinking it's another, then it is too substantially similar and a judge could deem it is too confusing."
— Dr. Sarah Hook, University of Western Sydney -
[Timestamp Unknown]
"Emco has 19 approved trademarks in Australia... They have trademarked the logo in a circle that is in a straight long line sitting like the circle sits close to the bottom of this kind of line."
— Lily Twelve Tree -
[Timestamp Unknown]
"The cost of the tariff is often split between its suppliers and the company itself... they only need to raise their prices by 20%."
— Corrine Wolfmayer, Piper Sandler -
[Timestamp Unknown]
"I do not like her approach or perspectives on removing all ethical considerations from work and her consistent perspective that making money is entirely what business is about."
— Lily Twelve Tree
For a deeper dive into Emco Beauty's strategies, legal maneuvers, and market impact, tune into The Barefaced Podcast on your preferred listening platform. Follow Lily Twelve Tree on barefaced.substack.com for additional insights and updates.