Prototype Issue
Toni Ko, Putting On a Happy Face
By Dennis Nishi
(page 1 of 1)Toni Ko has always loved makeup, but she was forbidden from using it as a teen—which was ironic since Toni’s mother owned and operated a cosmetics shop.
But her mother had her own ideas of what was proper for a young lady. Toni, undeterred, simply applied makeup at school and washed it off before going home. She managed to conceal her routine for years.
Shortly after her family arrived in LA from Seoul, Korea, in 1986, Toni was drafted to help out around the shop, where she gained invaluable insight in dealing with customers. She was inspired to start her own company after graduating college. She began NYX in the back of her mother’s house to minimize overhead costs. She worked seven days a week taking orders and mailing products out to customers.
NYX grew quickly enough to warrant its own location and staff of employees. In 2006 the company, headquartered in Commerce earned $12 million dollars and continues to grow at a healthy clip.
What’s the cosmetics industry like these days? It’s very competitive. But there’s always a niche market for everybody to get into. I mean, it doesn’t matter how tough a market is to get into, if you have a good product at a good price it’s guaranteed to sell.
Is price how you distinguish your products? It’s not easy for everybody in Los Angeles to buy a tube of lipstick for $15. Every woman has from 10 to 15 lipsticks and that could add up. Our prices average $4 or $5. If you were to go to Nordstrom and bought Estèe Lauder or Lâncome eye shadow, [it] will cost you anywhere between $12 and $25. There are eye shadows that cost $50 a piece. Why can’t makeup be affordable and look nice? That’s why I started NYX.
What’s your secret? How do you do it? I don’t fly first class, I don’t stay at five star hotels. I certainly don’t take a huge paycheck. This company is not a moneymaking machine for me. It’s something I love to do, and thus the money comes with it. But I’m not running the company just to make the money. It’s an achievement for me.
How do you get the word out about NYX? The last seven years the company grew and everything was advertised by word of mouth. Somebody would go out and buy our eye shadow and they’re like they can’t believe this stuff is $4. So they go and tell their moms and their sister and their friends and everybody goes out to buy them. Last year we sold 6.5 million pieces in lip liner and eye liner along that way. People write about us on the Internet, too.
You don’t advertise at all? Very little. It takes a lot of money to advertise and before we didn’t have the extra money. And I didn’t want to take out a loan. NYX is very financially strong. We’re almost loan free. We’re experimenting now. Hopefully this year and next year we’ll be doing more advertising.
Why did you choose LA for your headquarters as opposed to fashion-centric New York? (Laughs) I’m an Angeleno. I grew up here, went to high school and college here. I travel around the world and to other states. I like New York and other cities. But when I arrive at LAX, I’m home. It’s comfortable. I love the weather.
Would you say LA is becoming more of a fashion leader? They say fashion goes from Europe to Japan to New York to Los Angeles. So we’re definitely on the top of the list.
Have you ever seen your makeup in stores? This is funny (laughs). We sold a 3-foot display to a Longs Drugs. It was somewhere in Sepulveda. So I drove there one weekend and went into the store. A lot of the product was sold out. I also saw them in a store in Cancun. I bought some as a souvenir.
It sounds like you get really excited when you discover it. Of course! This is my passion.
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