Dive Brief:

• E.l.f. Beauty is testing real-world commerce capabilities within its E.l.f. Up! experience on Roblox as part of an extended partnership with the platform, according to details shared with Marketing Dive.
• The initiative, powered by Walmart, includes a virtual kiosk where U.S. consumers aged 13 and older can purchase a physical, limited-edition E.l.f. Up! Pets Hoodie, an exclusive item meant to celebrate the brand’s commitment to being cruelty free.
• Users can also purchase a selection of other physical products and receive additional digital items, called a “virtual twin,” for use on the platform. The move sees E.l.f. continuing to bet on its Roblox experience, launched in late 2023, as a way to reach younger consumers.

Dive Insight:

E.l.f. is upping its bets on Roblox by layering real-world commerce capabilities into its E.l.f. Up! experience, a move that the marketer asserts is the first of its kind among beauty brands. The commerce angle could help stoke interest for E.l.f. Up!, which has seen over 12 million visits and a 96% positivity rating since launching, per release details. The move could also help E.l.f. tap into Roblox’s core younger user base.

“E.l.f. Up! has been lightning in a bottle since day one and continues to surpass all expectations, especially among our Gen Z community,” said Kory Marchisotto, CMO of E.l.f. Beauty, in release details. “Testing commerce on Roblox is the next evolution in our journey of merging beauty with immersive platforms.”

For the effort, users can visit a virtual kiosk within E.l.f.’s Roblox experience where they can purchase a physical, Roblox-exclusive e.l.f. Up! Pets Hoodie. The hoodie is meant to communicate the brand’s commitment to being cruelty free and features a virtual pet from the experience. Furthering the purpose-driven element, the brand will also donate $50,000 to the Humane Society of the United States.

The commerce integration is powered by Walmart’s APIs, the same technology allowing for real-world commerce within Walmart’s own Roblox experience, Walmart Discovered. Helping support other brands’ Roblox experiences could help Walmart strengthen its digital marketing muscles and grow its successful U.S. advertising business.

In addition to the hoodie, users will also be able to purchase a selection of other products, including E.l.f.’s vegan and cruelty free lip and SPF products. Eligible users who purchase items from the kiosk will receive a “virtual twin” digital item for use on Roblox. E.l.f. collaborated with creators on Roblox to design the virtual items, which are enhanced with wigs, wings and other elements. For the E.l.f. Up! Pets Hoodie virtual item, for example, the brand teamed with SimplyALemon, a creator known for her Kawaii item collection in Roblox group The Lemon Land.

The items available for purchase will be accessible to U.S. users on both mobile and desktop. The E.l.f. Up! experience is designed to teach financial literacy and entrepreneurial skills to users. The experience, developed with esports agency eGen and metaverse games publisher Supersocial, allows users to create “dream startups” and features locations inspired by the brand’s products.

The latest move from E.l.f. arrives as the company’s heavier investments in marketing show signs of paying off. Net sales for the company jumped 77% year over year in fiscal 2024 to $1.02 billion, and the marketer increased marketing spending to 25% of net sales during the period. That increase represents a major climb from 7% of net sales five years ago.

Roblox has presented itself as a major opportunity for marketers, especially when it comes to reaching Gen Z, a demographic that represents more than half of Roblox’s 71.5 million daily active users. E.l.f. has also strategized a presence within other buzzy technologies and platforms. Last week, Keys Soulcare, a beauty and skincare brand founded by E.l.f. Beauty and singer Alicia Keys, announced a partnership with Amazon Alexa. In February, E.l.f. launched a beauty shopping app for the Apple Vision Pro.