54 Thrones African Beauty Products
DEAL
EPISODE SUMMARY
🕓 Air Date: October 29, 2021
Asking For:
$250,000 for 10%
Investor:
Nirav Tolia, Kevin O'Leary (10.07.2005)
Deal:
$250,000 for 17,50%
PRODUCT SUMMARY
54 Thrones is a skincare line inspired by African beauty secrets, featuring shea butter-based products, celebrating the luxury and romance of Africa.
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Background Story
Christina Funke Tegbe, the visionary behind 54 Thrones, draws her inspiration from both her Texan upbringing and her deep-rooted African heritage. Growing up in Houston, Texas, Christina was exposed to the rich tapestry of African beauty secrets, with a particular fascination for shea butter. Her family’s connection to Africa was so strong that her aunt in Nigeria went to great lengths, even persuading travelers, to send tubs of pure shea butter to their home in Texas.
Christina transformed this appreciation for her African roots into a remarkable brand, aptly named 54 Thrones, symbolizing all 54 countries on the continent. However, her venture is more than just skincare; it’s a commitment to empowering African communities. She forges direct partnerships with African co-operatives, prioritizing trade over aid, to create a line of clean beauty products that encapsulate the essence of African traditions and craftsmanship.
Before embarking on her entrepreneurial journey, Christina established herself academically, earning two master’s degrees and working as a consultant. However, she felt a calling to delve deeper into her heritage, leading her to take a bold step. She cashed out her 401(k) and embarked on a transformative journey across Africa. Along the way, she connected with the resilient women crafting shea butter and botanical oils, fueling her passion for creating 54 Thrones. This inspiring journey culminated in the birth of 54 Thrones, a brand that not only celebrates African beauty but also uplifts the communities that inspired it.
The Product
54 Thrones offers an exquisite range of skincare products that harness the natural beauty secrets of Africa, prominently featuring shea butter as a key ingredient. Their flagship product, the African Beauty Butter, is a standout example of their commitment to quality and efficacy. Available in various captivating scents such as Egyptian lavender and Moroccan mint, this butter is a versatile marvel.
The unique selling point of 54 Thrones lies in the use of shea butter and botanical oils that not only moisturize but also lock in moisture, setting their products apart from traditional water-based lotions. Whether it’s for your hair or your skin, these products have a universal appeal, catering to various beauty needs from head to toe.
Beyond the luxurious butters, 54 Thrones boasts an impressive lineup, including the coveted Glow Body Oil and the rejuvenating Moroccan Body Mask. These products are celebrated for their decadence and the nourishing effects they offer to the skin, making self-care routines a sensory delight.
Pricing is competitive, especially given the remarkable quality, with the African Beauty Butter priced at $80, while production costs are only $12, ensuring substantial profit margins. With a commitment to clean beauty and the use of African-sourced ingredients, 54 Thrones delivers a skincare experience that is not only luxurious but also grounded in heritage and sustainability.
How It Went
The company’s position before Shark Tank
54 Thrones has demonstrated impressive performance and steady growth in the skincare industry. In the previous year, the company achieved remarkable sales, generating half a million dollars in revenue while maintaining a lean marketing budget of just $8,000. This remarkable success can be attributed to a combination of word-of-mouth recommendations and the prestigious recognition of being featured on “Oprah’s Favorite Things,” which undoubtedly bolstered their brand visibility. The outlook for 54 Thrones remains highly promising, with projections indicating a substantial increase in revenue.
They are on track to reach the impressive milestone of a million dollars in sales this year. One key factor contributing to this upward trajectory is the company’s strategic partnerships with major retail giants like Sephora and Nordstrom’s. These collaborations are a testament to the brand’s appeal and the growing demand for their products in the market. As part of their growth strategy, 54 Thrones plans to transition from a predominantly direct-to-consumer (DTC) sales model to a more diversified approach, with 75% of their sales anticipated to come from retail channels.
This shift aligns with their strong profit margins and positions them for significant expansion and market penetration. A crucial element in 54 Thrones’ success is Christina’s captivating personal story and her unwavering commitment to fostering trade partnerships in Africa. This authenticity resonates with customers, adding depth to the brand’s identity and contributing to its ongoing success. The company’s impressive performance and strategic vision underscore its potential to become a prominent player in the skincare industry.
The Negotiations:
During the negotiation phase on “Shark Tank,” Christina Funke Tegbe, the founder of 54 Thrones, faced a mix of interest and thoughtful considerations from the Sharks. Mark Cuban was the first to exit the negotiation, despite recognizing Christina’s impressive presentation and business acumen. However, he ultimately passed on the opportunity, as he didn’t feel a personal connection to the skincare products. Kevin O’Leary expressed a genuine interest in the business but highlighted his lack of understanding of the skincare products as a hurdle. He ultimately opted out, despite acknowledging the potential.
Lori Greiner, while impressed, decided to step back because 54 Thrones seemed to be in direct competition with her existing investments, suggesting that the skincare market was highly competitive. Nirav Tolia, recognizing the potential in Christina and her brand, made an initial offer of $250,000 for 20%. Still, he sought another Shark to join the deal due to its scale and significance. This decision indicated his belief in 54 Thrones’ growth prospects. Kevin O’Leary re-entered the negotiations, agreeing to invest alongside Nirav. However, they needed to find common ground on equity percentages, with Christina’s counteroffer of $250,000 for 17.5% (7.5% for Kevin and 10% for Nirav) ultimately sealing the deal.
The negotiation highlighted Christina’s ability to secure not one but two Sharks, combining their expertise and resources to support her brand’s expansion. Ultimately, the negotiation showcased the Sharks’ appreciation for Christina’s impressive journey and her commitment to empowering African communities, while also highlighting the potential of 54 Thrones in the competitive skincare market.
