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Goop-Branded Products Could Be Coming Soon

Photo: Getty Images

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Goop founder Gwyneth Paltrow and Goop chief executive Lisa Gersh are calling their approach to business "contextual commerce," or creating stories around products to drive sales. "It’s about inspiring and buying all in the same movement," Gersh told Business of Fashion. Their plan for Goop involves online wholesale, native advertising, and raising funding for branded product.

Paltrow and Gersh, formerly of Martha Stewart Living Omnimedia, didn’t disclose current business statistics, but BoF writer Lauren Sherman’s sources estimate that Goop’s weekly newsletter has about 700,000 subscribers. Sources say the website attracts about 1 million unique visitors per month.

In addition to Goop’s recent partnership with organic cosmetics line Juice Beauty, Sherman suggests that the company is close to announcing funding. She writes, "Online wholesale currently makes up the majority of the company's turnover, but a branded product play is the reason Paltrow and Gersh are in the midst of raising their first round of institutional funding. Goop declined to disclose how much it aims to raise, or whether or not a deal has yet to close, but sources close to the company suggest the round will be announced within the year."

Paltrow didn't realize Goop's full potential when she started the newsletter. "I didn’t have great insight into the business Goop was going to become," Paltrow told BoF. "What we’ve realized is that people are looking for a place to go where there is trust and authenticity, a place to get the best possible information, whether that means a recipe or an organic lip balm."