Family-owned business, Oz Hair & Beauty, has taken the next step towards becoming an industry leader in the lucrative online beauty space, announcing its partnership with a consortium of prominent investors specialising in e-commerce, retail and hair care.
The deal will see Oz Hair & Beauty evolve into a sophisticated omni-channel retailer, delivering an enhanced online customer experience, led by expert service teams providing tailored advice, and further expansion of brand and category offerings. Plans also include a national rollout of experiential hair and beauty showrooms.
The investment group is headed by Edison Growth Fund, whose portfolio includes investments in ultra premium spirits and specialist allied health care services.
The OzHair founders have also secured the services of leading hair and beauty industry expert, Ward Gauvin, who will become Oz Hair & Beauty’s executive chairman.
Oz Hair & Beauty founders and brothers, Anthony and Guy Nappa, established the online business 10 years ago, building a loyal customer base and turnover of more than $40 million, including men’s salon grooming site Above the Collar.
The decision to add skincare to the range boosted revenue in that category by 250 per cent, and last year, the business added more than 100 brands and doubled its customer base, with COVID resulting in consumers switching to online hair and beauty consultations and purchases.
Announcing the deal, Nappa said the backing of the investor group would assist the business to expand and keep pace with Australia’s rapidly growing hair and beauty sector, currently worth $11 billion and experiencing high double-digit year-on-year growth.
“Attracting investors of this calibre is a great milestone for us but is really just the beginning,” he said. “We see great opportunity in our market and the added experience, support and capital will really help us to pursue these opportunities.
What also really appealed to us about this partnership was the fact we have secured their support while enabling our family to retain control of the business as majority shareholders. Family values are in our DNA, represented by our personal relationships with our suppliers. We are about growing brands together for the long-term in the spirit of true partnership and collaboration.”
Edison Growth Fund representatives, Shaf Dewani and Michael Thompson, said the partnership was underscored by the founders’ deep understanding of the sector and its growth potential.
“Anthony and Guy have built an exceptional business, grounded in family values and an authentic customer focus that comes from a deep understanding of the hair and beauty consumer, ingrained by their parents’ 30-year history in the hairdressing industry,” he said. “The increase of online penetration in hair care is only just beginning, and consumers are seeking out retailers that offer detailed product knowledge, informed recommendations, access to new and innovative products and excellent customer service.”