PARIS — Niche brands keep disrupting the beauty industry today, with creative products, scalability and a solid long-term growth strategy key. But in today’s uncertain geopolitical and economic climate, that’s truer than ever before for longevity.

While not all brands are angling for a takeover, many are keen on some investment to help stretch into new markets or bolster product development. Private equity, venture capital funds and strategics look at various criteria.

“Investors expect to see revenue growth that consistently outpaces industry benchmarks, with year-over-year increases of 20 percent or more being ideal,” wrote Carrara Advisory. “Gross profit margins exceeding 60 percent are another key metric, as they indicate both the brand’s pricing power and operational efficiency. Beyond these numbers, investors also examine customer retention rates and lifetime value, seeking evidence of a loyal, repeat customer base.

“Yet, financial metrics alone are not enough,” it continued. “Differentiation is critical in a crowded market.”

Here is a look at two French niche beauty brands — BDK Parfums and Les Parfums de Loly — that are drawing a lot of attention.

BDK Parfums

BDK is making big waves and firmly in the scopes of investors, industry sources say.

Its business has been booming. David Benedek, who founded the brand in June 2016, would not discuss BDK’s figures, but industry sources estimate it generates more than 50 million euros in annual retail sales.

The brand has deep roots. “It came from my passion for perfume, which was always in my life, thanks to my family heritage,” said Benedek.

His grandparents opened their perfume shop in Paris across from the Louvre in 1959. Benedek became very close to his grandmother, who was very involved in the business.

His parents then took over and developed the perfumery. “I had a lot of admiration and love for all the perfume houses,” said Benedek, who studied economics and business, then did a master’s degree at the French Institute of Fashion. There, he took a perfumery class.

“I realized that people were finally ready to go to more confidential and niche brands,” he said. “As perfume was my first love, I took the decision to start building my own house after my studies.”

He chose the moniker BDK to reflect consonants in his name, but also to conjure up the idea of a contemporary olfactory library. “The brand is connected to words and to stories,” Benedek said. “The idea behind BDK was to create a contemporary, urban perfume studio.”

His starting point is Paris, but the brand opens to the world, explained the executive, who works closely with perfumers.

Each BDK fragrance collection has the same bottle, but with a twist. Flacons with a black cap denote the Collection Parisienne, which is about experiences and feelings related to the French capital. Every scent in the Collection Matières, with a gold cap, centers on one raw olfactive material. “I try, with the perfumer, to give unexpected notes,” said Benedek.

A blue-labeled fragrance was exclusive to Harrods for six months and is part of the Collection Exclusive. There is a line called Collection Azur, which nods to his love of the South of France and Mediterranean Sea, with fresher fragrances and a salty touch.

Altogether, BDK has 23 genderless perfumes and six hair fragrances, plus five candles and three scented laundry care products. Each is made in France.

“We work a lot on craftsmanship and sustainability,” said Benedek, whose products’ prices range from 16 euros to 270 euros.

BDK’s first flagship debuted on Paris’ Rue Saint-Honoré in January 2024. Part of the brand’s strategy is to open more such locations, step by step, starting in 2026. “We are working on the experience in-store,” said Benedek.

BDK is sold in 63 countries, through more than 750 sales points. France is its largest market, followed by the U.S., Germany and the U.K. The Middle East is important, too.

Benedek plans to continue focusing on creativity and maintaining BDK’s DNA, while expanding. “My main focus is to work on desirability and brand image, to be able to find the same spirit of BDK everywhere you go in the world,” he said. “This is a very long-term strategy.”

BDK’s longstanding bestseller, which launched in December 2019, was Gris Charnel, with sandalwood and vetiver notes. But the recent introduction, Impadia, became the topseller in just three months. “Your success is built on the surprise” of olfaction, explained Benedek, who does not believe in trends. “Trends are the risk you took yesterday.”

More launches by year-end include Nectar Oud Extrait, an exclusive for Harrods, 50-ml. formats of bestsellers and a Soin Parfumé collection of shower gels and body lotions.

Les Secrets de Loly

Les Secrets de Loly is a trailblazing French brand specializing in textured hair care that has investors buzzing.

Founder Kelly Massol noted a real need for wavy, coily, curly and kinky hair, as well as a true demand from clients for cleaner and healthier formulas, as well as adapted care routines. At Les Secrets de Loly, routines come in four steps, meant to be easily applicable daily.

“What makes us different is our distribution,” emphasized Massol, referring to the brand’s omnichannel approach. It is especially strong in pharmacies, where it is in more than 1,800 doors. She lauded pharmacies for their quality of service and proximity to people everywhere.

“There is also the online pharmacy, which is developing strongly,” said Massol. “We are going to start duplicating this model internationally.”

Les Secrets de Loly ranks fourth in French pharmacies among all hair care brands, and as the first brand for textured hair care. It is also sold in specialized retailers such as Sephora. Right after launching there, the brand entered into the store’s top 10 ranking.

Meanwhile, Les Secrets de Loly continues selling on its own site, where it was born. About 25 percent of Les Secrets de Loly’s sales are digital.

“These three channels can be found everywhere and allow us to develop the brand very quickly internationally,” said Massol, who added in France, Les Secrets de Loly is now the strongest contributor to the hair care segment’s growth.

The brand is physically in eight countries, with Spain next up at the end of August — through El Corte Inglés, Sephora and pharmacies there, as a first step into the Iberian Peninsula — but thanks to digital, BDK has a reach of 60 countries. The United Arab Emirates are also in the brand’s sites.

Les Secrets de Loly counts 27 references, including four products for children that launched in June. Overall, the hero product is Boost Curl, which sold 1 million units last year, or one product every seven seconds. Kurl Nectar is another top seller.

The Pink Power Mask, introduced in April 2024, repairs hair with a vegan and natural formula. That quickly entered the top five, according to Massol.

Curl Glow, with a gel-in-oil texture and 99 percent natural ingredients, gives a shine effect and is thermo-protective. “I think it’s going to one of the bestsellers of the year,” she said.

Product prices run from about 14 euros to 36 euros.

Les Secrets de Loly has a strong digital presence, counting 365,000 Instagram followers and more than 150,000 on TikTok. Adding in LinkedIn fans, the brand’s community equals practically 600,000 people.

“We have an engagement that is almost more than double that of the classic, standard brands,” said Massol. “The community is very solid, which often allows us to do great launches.”

She keenly listens to people’s suggestions and needs for product development.

Massol was the sole owner of Les Secrets de Loly until April 2022, when Quilvest Capital Partners took a minority stake in it to help boost geographic reach and to scale. Simultaneously, Carlota Thévenot was named chief executive officer of the brand, which allows Massol to continue leading Les Secrets de Loly’s community and formulating products, which she loves.

Massol did not discuss turnover, but said since 2020 the brand’s sales have grown sixfold. Industry sources estimate Les Secrets de Loly net sales could close 2025 at about 50 million euros.

The company began with Massol alone in her kitchen, with 1,500 euros. Cut to today, and the team has 49 employees. “It’s a great adventure,” she said. “The goal is not just to be a hair care brand, but to enter culture — to be a brand that is connected to our clients’ lifestyle.”