How to Implement a Limited Drop Model Without Losing Money: Lessons From Fluff the Sustainable Beauty Brand

Erika Geraerts opens her store Fluff only four times a year. Discover how to implement an innovative drop model into your business while growing profits and community simultaneously.

In an industry known for pushing constant consumption, Australian beauty brand Fluff is taking a radically different approach. Founded by serial entrepreneur Erika Geraerts, Fluff only opens its online store four times a year for week-long “drops,” selling refillable makeup compacts with a message that “beauty is so much more than makeup.” This strategy has allowed the brand to build a devoted community and grow sustainably over the past seven years.

The Fluff cloud collection includes their three staple items. The two cloud compacts are refillable so customers can exchange their products for new colors once they’ve finished one. Fluff

Ahead, get a closer look at a drop-centric business model to decide if it might be right for you. 

1. Drops can alleviate limited production capacity 

Fluff’s drop model supports its core message that “makeup is fun, but it’s not necessary.” “We wanted to be a beauty brand that stood for the opposite of constant consumption,” Erika says.

 

Fluff’s quarterly drops serve two functional purposes: driving customer engagement and anticipation, and helping the brand align with manufacturing minimums and forecasting. “We are limited ourselves by our minimum order quantities with our manufacturer,” Erika says. “So with each drop, we only have a certain amount of our cloud compacts and our refills to sell.”

Erika didn’t want to create a scarcity mindset, but thought it was important that people think for a few weeks or even months before buying a new makeup item. Fluff

Erika and her team use the limited availability to create excitement around each drop, highlighting the limited quantity and time frame allotted to purchase. Each drop gives the team more information, and strengthens their forecasting abilities when placing the next drop order, so they can avoid unnecessary waste and costs.

2. Drops can enable high-quality products—and price tags to match

Fluff’s signature compact is made of Zamak, a durable metal alloy designed to last for years. This supports Fluff’s refill-based business model and creates a longer lasting product, so customers don’t have to repurchase with set frequency.

“Fluff for me was a chance to do something differently, to create a product that we weren’t just proud of the formula, but the packaging too, that it can be an art piece in itself that people wanted to display,” Erika says. This attention to quality allows Erika to charge $70, which is more than a typical compact case made from plastic. This keeps the business profitable despite only opening quarterly. 

3. Drops leave long lead-time for thoughtful marketing

Transparency about your drop model is key to its success, Erika says. Fluff clearly communicates when its store will be open for the quarter and what customers can expect. 

Fluff maintains engagement between drops through user-generated content (UGC) initiatives like Fluff Issues, an editorial platform featuring customer submissions of written articles, self reflections, and photos. “Whereas most beauty brands might have typical beauty articles or features like top shelves or what’s in your beauty bag or the five latest beauty trends, our issues are all about people’s concerns or feelings toward the beauty industry or about themselves and their identity,” Erika says.

Fluff shares the internal thoughts, feelings, and concerns of customers online on their special landing page at issues.itsallfluff.com. Fluff

While UGC is a time saver, during off season, Fluff still produces content ranging from TikTok videos to podcasts episodes to maintain interest between drops.

4. Drops enable sustainable growth

Fluff’s measured approach to growth allows it to maintain its drop model without compromising its mission. “I’m not chasing that crazy growth that a lot of DTC brands do chase. ... It means that we’re in it for the long haul,” Erika says.

Erika emphasizes the importance of setting realistic growth targets that align with the drop schedule to ensure the business can operate efficiency. She uses the data to analyze past drops and review key learnings to refine her strategy moving forward. 

“Our compacts are designed hopefully to last a lifetime, or for a long time at the very least,” Erika says. “So you buy that once and that’s your entry into the brand, because then it’s about refilling and trying different colors and shades. So I think a founder really has to balance this idea of sustainability with the idea of retaining their customers and trying to get the most out of them in terms of their lifetime value.” 

Erika is focused on growing through customer retention and loyalty, instead of expanding product lines or drop dates.Implementing an innovative drop model will help you create excitement around your brand, manage inventory more efficiently, and build a loyal customer base. How Erika communicates her brand’s mission during the down times is what helps set her brand apart from the rest.

Fluff’s approach offers valuable lessons for entrepreneurs in any industry looking to build sustainable, mission-driven businesses. To learn more about Fluff’s financial runway and product expansion, tune in to the full Shopify Masters podcast episode.