HERBORIST: A CHINESE PERSONAL CARE BRAND GOES ABROAD

By Madhana gopal.R(10aa18) Rajavel.P(10aa24) Karthikeyan.M(10ac16) Mohamed Nasim.O(10ac19)

HERBORIST: A CHINESE PERSONAL CARE BRAND GOES ABROAD

CASE ANALYSIS:
The cosmetics industry in China is highly profitable and gainful, particularly the skin care industry. The market is filled with overseas giants from America, Europe and Japan. The parent company of Herborist named Shanghai Jahwa has a long and rich history back from the 20th century. In 2005 herborist was awarded as a famous brand for its strong showing in the domestic market.

BRAND STRATEGY The brand distinguishes itself by integrating the ingredients based on principle of traditional Chinese medicine in to their products. The even product innovation promotes the brand balance through its design and application process. Sephora, the cosmetic arm of the world's largest luxury goods retailer LVMH, will help Herborist branded products, which are beauty care products made by the Chinese herbs with modern biology technology, to go outside of China. Herborist products, with a strong tradition of organic and herbal, ayurvedic and other traditional medicines rises the overall market trend for organic and natural products. BRAND SUCCESS The high-end cosmetics industry in China is at an earlier stage of development than Western equivalents.

Trends in the cosmetic market in china:

Chinese consumers are so interested in cosmetics and spend a lot of money on beauty products. And for them beauty is the part of life. Cosmetic products consumption in Chinese market is going to be stronger and stronger, because people want to be beautiful and trendy and make up. The skin cares are part of the fashion towards the Chinese people. The wealthy market segment of the brand shows the growing and highly profitable consumer group in both foreign and domestic market. The characteristic of Chinese cosmetic consumers is that they exhibit seasonal consumption of products. Their habits according to the season. BRAND FEATURE Herborist has some strong brand features which play an important role in the achievement of success in the domestic cosmetic market. By 2007, the worlds top ten cosmetics companies had entered Chinese market. Before these international cosmetics entered into Chinese market, they had built strong market foundation in other countries with strong corporate strength and capital base. Herborist has the products based their own emerging technologies, and these activities show a great development potential. Herborist differentiated its product characteristics through creates high-end "herbal personal care experts". Nowadays, Herborist is a typical in the high-end cosmetics market. In the current cosmetics market, products without characteristics are very difficult to get success. Herborist through use Chinese culture to achieve success and opened a new way to extend local cosmetics companies. Herborist determined high-end positioning in the market from the beginning, and thus formed a complete set of brand-building system, use the herbal beauty theory concept as core products. The company established a professional quality inspection department to test the quality of its products.

INTERNATIONALISM Herborist was to become an international brand with its main markets being overseas rather than domestic. Herborist opened their exclusive stores in Hong Kong where it is a competitive market where 70% of the market capturing the top ten brands. with no experience Herborist fails in the market.after that the company changed the tactics by launching its products in no more than 10 mannings. And also due to the failure of its entry it also became more conscious in concentrating with its customers. At 2008 herborist established its market in Europe with its own counter in cosmetics retail chain sephora which was established in 1997.Herborist was the first Chinese brand to setup its own counter in sephora. Herborist spent six months acquiring the certifications to enter in to the French market. In support with sephora Herborist easily established in the international market. The product range is not too dissimilar from its competitors.in order to fill its portfolio gap it also introduced foot care products to the customers. Herborist established a chief designer post and the engaged professionals to handle the packaging, retail display and for advertising of its product line. This gives a great success to the company. Herborists product range is not too dissimilar from its competitors, showcasing the usual creams, face packs and moisturizers. Where their strength lies however, is the specifically Chinese niche they have found in a highly globalised industry whereby nationality and cultural references play a large role in marketing. Herborist also drews on Chinese legends to build a story around its Tai Qi Mud pack, this promotes the Chinese aesthetic of balance through its yin-yang design and application process.

HERBORIST INTERNATIONAL MARKET STRATEGY As Herborist does not have the ability to develop business in very many European countries at the same time, market segmentation seems important at present. Herborist has already developed its business in France, it has a certain brand reputation and consumer base there. France can be recommended as Herborists European market center. Herborist should apply new sales channel to consolidate in to the French market and also the company should consider the neighboring countries. . The depth of its operations and its small steps into an international market are good indicators of the continued success of the Herborist brand.

DISTRIBUTION MODEL In China, there are two main distribution channels for high-end cosmetic products, namely luxury department stores and spas. The efficient distribution channel for cosmetic products in the Chinese market is spas, which provide both cosmetic products and relaxing treatments in sophisticated environments The Herborist-branded spas are among the most traditional spas. The natural and Zen-like atmosphere of these spas, conveyed through the use of natural and solid materials, reflects the traditional methods used for treatments, and the natural aspects of the products sold. The fact that Herborist is a branded spa chain is well-perceived by the customers. They already have a brand image of Herborist products in mind, and they naturally trust the Herborist spas for delivering the same quality, and same respect of tradition.

International Channel Sephora SPA Direct Marketing Domestic Channel Self run SPA Direct Marketing The above distribution channel the Herborist use for its distribution channels. The sales channel of Herborist completely of traditional channels such as super markets. Spas are the mode of distribution, which provide both cosmetic products and relaxing treatments in sophisticated environments.