Tracee Ellis Ross, Chief Executive Officer, Pattern Beauty 
Interviewer: Emma Hinchliffe, FORTUNE CLOSING RECEPTION 


MPW Next Gen 2023 - Pattern Making

Conferences

After wrapping up on the show, girlfriends actress Tracy Ellis Ross wrote her first hair care brand pitch in 2008, not long ago, but following several meetings with potential partners and investors, she was met with little interest. She then chose to invest her own funds into working with a chemist and manufacturer who could develop the products. She envisioned ones that focused on curly coy and tight textured hair. And after more than a decade, she took the findings connected with Beach House Group to launch Pattern Beauty to discuss what's next for Pattern Beauty. Please welcome Pattern Beauty's CEO and founder Tracy Ellis Ross and fortune, senior writer, Emma Hinch. Hi. Um Hi, everybody. Tracy. Thank you so much for being here. Thank you for having me. We're so excited. So you founded Pattern Beauty based on your experience and to solve the problem that you saw in the beauty industry. What was that problem? It wasn't a problem. It was a gap. Yeah, a big giant gap. I felt like the products that existed for the curly coy and tight texture community were the same products that my mother and my grandmother had had access to that, the shelf space hadn't changed. It was still in the back of the store. And I as a curly coy gal had spent my childhood kind of making sense of my hair and trying to figure out which products existed and dreaming of having the perfect products that actually were effective, were safe for my hair and looked beautiful in my bathroom. And so and so pattern was born. I mean, it's a bit of a longer journey than that. I'm not gonna lie. Um From the moment I wrote my first hair care brand pitch um until we ended up on shelves. It was 11 years. Um It was right when I finished girlfriends and I really set out to create a company that was not just about sales, but really was also about the love of humanity. And so there was a lot involved in that and there were also a lot of nos and there was a lot of, there were a lot of naysayers, but it really was about filling a gap in the market that had existed for a really long time. Yeah, let's talk about that decade long 11 year journey. What happened over those 11 years. How long do you have? Um Well, it started with um I was not from a family of entrepreneurs, so I didn't know. And you know, a lot of people say they say dream big, but they don't talk to you about how you turn that dream into a reality. How do you take an idea out of your head and actually bring it into the world? And so I didn't know how to do that. So what I did was try and use what I access to and the resources that I had, which was really leaning into me as an actor. And so I was just trying to ask everybody, one of the things I had learned before I became an actor when I left college was ask people questions, say thank you, write a thank you, not stay in contact with them and then learn from that and get the new relationships. So I just started asking questions and I got a lot of nos. And the main thing that I was hearing, the main three things I was hearing was why you, you're an actor, what do you know about hair? You should partner with a professional. And the third was why do we need more products on the shelf? And I had all those answers to those questions, but I didn't know how to articulate those answers in a way that people could understand it. So it was why me because like so many others, I had become my own best expert because I was um uh a shopper and a beauty person in an industry that was not catering to the curly and type textured community. Um I didn't want to partner with an expert or a professional because I felt so many, I had become my own best expert in my bathroom because it was an industry that didn't, the beauty industry was not catering to us. And I um and why these products, why did we need more products on the shelf because there weren't products that were actually matching and suiting my hair texture. Um And so the journey began with a lot of, I'll just tell you, I won't tell you all the nos but some of the fun ones, one woman read the hair care brand pitch, who was my manager at the time, obviously, an acting manager doesn't know the beauty industry and she was like, I read it. It's amazing. We should do a line of wigs and I was like, I think you missed the point. Another person was like, I read it. It's amazing. We should do a hair TV show. And I was like, I am asking the wrong people. These people do not know what they're talking about. Um Ended up going through many other journeys um Before I found my operational partners and I call them my operational partners, my business partners. But I say that because I am the majority owner of the company, I have full creative control and the vision is mine. Um But I do not know how to run a beauty business. So I have a lot of business acumen but don't know how to do that. So I found partners before I found my partners, I actually decided that what I needed to do was find a chemist on my own that I had the brand pitch and everything that was in my pitch is actually what was in our launch. Um The skews that we had there were in our launch, which was four conditioners, a hydrating shampoo that was not going to strip your hair. I'm not going to go into detail. We only have a little bit of time. Um But um so I found, I wanted to find a chemist that I could speak to directly, that I really could start to explain because part of what I was finding in the industry was that I could either use formulas that existed or I could sort of give that part over. And the whole point was that the formulas don't exist. And so I needed to actually build the goop from scratch. So I found um a chemist that was in Los Angeles that I could speak to face to face and then um ended up meeting with retail partners with a little bit of group that I had and my brand pitch and ended up with retail partners before I found my business partners. And so 11 years, 75 samples patterns on shows 2019 I, that was a really speedy version. No, we love it. Um You talked about kind of figuring out the best way to articulate the opportunities you saw here we have a lot of founders in the room doing that for their own businesses all the time, figuring out how to pitch to investors. Yes. How did you do that? How did you figure out how to communicate the ideas you had? Um a lot of it came from the nos that I received. So when I would receive a no, I would usually take the hit, I would get very disappointed. Um And I would take the hit and then when I was ready, I would ask myself the question of, did I agree with the no? And what was in the know? So was the no something I agreed with that? Yes, there was no reason for me to create products on the shelves or why you or any of those things or was it that I hadn't articulated what I was? The effectiveness? Was I not effective in articulating what I meant? What that led me to by the time I went to my, the retail partner meetings is I had a hair Bible that really ended up being the road map for what has become pattern. And my vision, I can now articulate that for you guys. And what I would say to other founders and entrepreneurs as they're starting a business is the brand DNA for pattern is based on four things. It's based on number one, not sales, but the love of humanity. And our mission was born out of that. So it's meeting actual, an actual need. It's to exceed the needs of the curly cole texture community. And our content is focused around and centered around the celebration of black beauty. So our mission combined with our promise, the visual language of the brand, which is incredibly important because that's how I think you give evidence to your customer that you love them, believe in them and know who they are. And then the purpose of the brand, which is tied into our mission. And those four things are what to me makes that pattern. And I mean, I can go into detail on all those things. I wouldn't, but I think as a, as a founder, it's incredibly important to name what your promise is. What are you promising your customers and the mission of what exactly you are wanting to give them and what that is and why and then have purpose and combine it to that and then see if you can articulate in language, what you want your brand narrative to look like visually because I think those are the things that are markers and create a continuity of language with your customer. Yeah, thank you. Um I'll come to everyone for questions in a moment. So if you have any, I know I'm so, so it's great. Um You know, celebrity beauty is a crowded space. And even just yesterday, Beyonce hinted that she might be entering in hair category as well. We don't know for sure we don't. But, you know, she might be making salons. Anything is possible. Yeah, it's Beyonce. But how do you stand out and achieve longevity as a brand that's tied to a celebrity? Well, I think the key is that we're not a celebrity brand. Um, I am a CEO and founder and so I can tell you what I think the keys are for a successful brand, which I think is a lot of what I just stated, it's really knowing your customer. I think it's being hands on really being deliberate, specific and intentional about your language and what you're stating. You know, one of the things that is really important to me at pattern is that we name what we want, not what isn't. So we're always leaning towards that and that gives us a road map to where we want to go. I think that knowing the industry is incredibly important in doing your work, I think, you know, the difference to me and a lot of celebrity brands. And I think where that term comes from is yes, there's a celebrity, but often they are not. I'm a majority owner of my company. Um They aren't the founders of the company. Often they join a company that exists. The mission is born out of my experience. It's born out of my own experiential knowledge and like any other founder, it's um I, I am a celebrity but that's not the way I am at pattern, but I will say that I do use the um my notoriety in the industry to continue to open doors. Um And because I know that that gives me a particular kind of seat or access. And so I make sure that the access that I have is used not just for me and opening up the space for others, like maybe even Beyonce, she's like, oh patterns doing well, maybe I should get in that business. Is there an example of the time you've done that successfully that you think that who you are helped pattern grow? I think it's how I helped pattern grow. Yes, but I think it's less about that. It's more that in particular, for example, with my retail partners, there have been moments when I know that I have access to sit at a table with a CEO in a way that perhaps another founder doesn't. And when I do that, I make sure that those conversations are not only centered around pattern, they're centered around creating and expanding the access for all of us and making sure that shelf space is whether it's the pipeline or shelf space or the diversity and equity within the company is, is looked at in a particular way and that I'm willing to have those conversations even if they're uncomfortable and I have quite a few of them. Have you seen change over the past four years? I have, I think the biggest thing that I've seen is a willingness. I think a lot of people don't know what they want to do. But, you know, I have to give a shout out to Mary Dylan, who was the former CEO of, um Ulta and is now at Foot Locker. She was somebody who from the beginning before Pattern launched, I had a very close relationship with her because of all the things that were happening and I picked up the phone and called her with some difficulties that were occurring in terms of the relationship or what whatever was happening. And as a result, she got to have a first, a front seat to me as a founder and a CEO. And she saw in me something that I didn't know existed in terms of being a business person. And she was the one that appointed me as the diversity equity inclusion advisor for ALTA. And because of her, I have had a seat at many tables. I have had access to speaking with other ceos of large companies and really talking about what my personal experience with Pattern has been, but also how the industry has a blind spot and a gap in certain areas and what those gaps are. And sometimes they're as simple as the wash cycle for a black customer is different than another. And so the re upping on supply and how you purchase for regularity is different, many of those different kinds of things and knowing the customers. So those are some of the conversations that have happened around that I had access to because of pattern but have become a larger conversation because it is one of my missions to really change the myth that black hair care is a niche market. I completely disagree. And there's data to support that the black consumer has a spending power of 1.2 trillion at the moment by 2024 it's supposed to be 1.8 trillion and hair products alone is 2.22 point 29 billion. So this is this is a demographic, a vast demographic of people that is underserved and not understood in the right way. And that is my personal experience for pattern. But for any founders that are out there, it's incredibly important for you to really understand the data and merge that with your own experience, merge that with your promise and make sure that you understand the landscape that you're trying to enter so that you can really be informed and effective in getting where you want to go. How much of that market do you think pattern can capture? I hope it captures all of it every single 2.29 billion. And that is with A B. Um Did we have any questions for Tracy? I think one in the back right there. Hi. Hi, my name is Keisha. I'm from Atlanta was gonna say this last night and I'm gonna say it. So I have naturally gray hair. I use your products and if you are interested in a gray haired ambassador for the brand, I'm your girl. I love it just so you know, I also have gray hair. I just color it the curl gel. Oh, really? Your hair looks beautiful. Thank you very much. That was your question. My God. I thought there was going to be an entrepreneurial question. Yeah. One right there, Shay fellow, curly haired girl. Hello, curly. Um I'm curious what's next for pattern? And you know, I think Emma either you or Tracy mentioned salons. Uh I live in New York and you might know that the salon shut down. I didn't know that. And so there's actually very few places in New York that you can go to get your hair cut. Oh, really? I think that's not just New York. Yeah. Yeah. Like even in a city as large and diverse that that market is that under served? So curious if you know, as you think about all the different ways that you could solve our problems, uh meet your needs. I don't think you have problems. We are here to meet your needs and exceed them. You have your problems. Your hair is beautiful. Thank you. Uh Yeah. So just curious to what's next? If that's additional product lines, tools, salons, like where do you see pattern going? Well, I think this is a vast community and there are many, many needs like the one that you mentioned. So I think the sky is the limit in terms of what pattern will continue to offer. There are many things in the pipeline but I will not speak on those. Maybe I should just do a nefarious Instagram post. But, but I do love this idea and I agree with you. It's incredibly difficult. The the hair cut for a curly and my favorite thing is people showing these haircuts online where they got their hair curly. I'm like, oh my God, when you wash your hair, it's gonna be a nightmare. I'm like so frightened for you. It looks good right now and wait till you're in different level of humidity. Oh my God. Um So I agree. There's a lot of needs. There's a lot of spaces. We just launched the blow dryer, which has been extremely successful and was incredibly exciting for me because that was part of my original dream for the brand to create a blow dryer and to reintroduce heat into this community in a way that it's not going to be damaging for the hair. And we created a for the curly coy tight texture community blow dryer. That's not only beautiful but also selling out. Um And I think there's a lot more to explore in all of those areas. Do we have one more back there? I don't think so. Oh, well, maybe. No, no more questions. I see. There's one up front if we can get up here. Um, we might be able to hear you and give you just the, yeah, we have the live stream as well. I'll write that. Hi, Tiana. Curly girl. I see you. Would you mind standing up? You wanna stand up? Oh, sure. So, my, um, my battle is humidity, obviously, but it's also retention. Are you curl, retention, hydration, retention. Yes. Ok. All of the above. Exactly. Um, and sometimes certain um so I'm from Florida. Certain products work for the first day and then they say they don't work. Yeah. Later on one of the things is making sure you're looking for alcohol. You don't, you don't want alcohol in the product. Um because that will happen. One of the things that is at the core of patterns, um philosophy and effectiveness is hydration, hydration, hydration, hydration and, and you want lasting hydration and depending on the porosity of your hair, there will be a difference in how long you maintain that um moisture and hydration in your hair. So um number one, I would say try our product. Number two, you have them. OK, I have them. Yeah. And I would also say don't be afraid of humidity for me, that's how you create volume. And I also think that Frizz is really sexy. I think there's a big myth around Frizz. I have a lot of frizz going on right now. I think it's very sexy. So, um so I think embrace that. But um there is a product that we have that's down the line in the pipeline that will help you um maintain that moisture for more days. Thank you. And thank you. What about growth? Growth? Well, we have in our treatment collection, first of all, oiling your scalp and making sure that your scalp is clean is incredibly important. So you wanna make sure that the, the root of your hair stays clean. So that, that cuticle, the the the hair can follicle, that's what I'm looking for can come out. Um But we have the treatment collection. So there's the transition mask, but also the treatment mask, which it sounds like it looks like you don't do a lot of heat on your hair. So I would say the treatment mask is probably for you and use that for a good 20 minutes before you shampoo, use the hydration shampoo and then maybe the intensive conditioner just saying these are great tips. Thank you. Um We've heard about a couple of people's relationship with their hair. We can end. I'd love to hear about your relationship with your hair, maybe growing up in your career and how a launching pattern has changed it. If at all, I think it's actually deepened my relationship with my hair. I think you could chronicle my journey of self acceptance through my journey with my hair. I had to come to know my hair, um meet my hair where it was and then learn to love it and then how to be with it. And then I realized my hair could honestly do anything. If it was in good condition, I can put heat on it. I can wear it straight. I can wear it slicked back, I can wear it curly. I can do all the different things with my hair. I think what's happened now is there's no such thing as a bad hair day because I have the products that actually work and support my hair. Um I actually have products that can meet me in any bad situation. Like when there's been someone does my hair and there's too much heat on it or whatever that might be. But mostly I think it's that I now have a genuine um loving relationship with my hair that it just, you know, there's never a bad hair day. It just kind of is what it is. That's fantastic. Well, thank you so much. Thank you so much. Thank you.