Month: October 2022

Create a virtual online showroom on the topic of “organic and added substances in skin care products” and invite relevant artists to participate in the creation of digital models.

I set up a workshop on artisanal organic skincare products and asked Stockholders to participate. In a zero-to-produce format, they get a feel for what is being added to the skin care products they touch every day, and what might be harmful. My purpose is to encourage them to improve their awareness of the concept of organic by participating in production. After two times, it was found that the intervention had a small spread range, and after reflection combined with feedback from stakeholders, it was decided to create an online Virtual Exhibition.

Case Study

In particular, in 2005, the brand ranked first in sales, and in 2006, it took third place in sales as a stand-alone brand, continuing to show good growth. The Face Shop was founded in December 2003 and has designed all of its products, packaging, and store decorations with natural ingredients under the core concept of “The Story of Nature.” Since its inception, The Face Shop has succeeded in delivering high-quality naturalistic cosmetics at a competitive price. Additionally, it has succeeded in introducing the boutique idea and enhancing the distribution system, integrating quality, service, and cost. Since LG Lifestyle Health acquired it in 2010, the company has experienced rapid growth with a 20% annual growth rate, holding its position as Korea’s top single-brand specialty shop from 2011 to 2015. This growth has been attributed to the company’s decisive distribution innovation and innovative marketing strategies. The Face Shop began doing business in China in 2006 and today has more than 250 locations. The corporation actively began to extend its operations in China after the establishment of a Sino-Korean joint venture in 2013. Among other items, “Baek Ginseng Collagen Pearl Essence Cream,” the anti-aging series “The Therapy,” and “CC Cream,” the emblematic item of Korean beauty, are well-liked by Chinese consumers. All products have an average price range of $30 to $100, which is mid-range and frequently advertised with 25% off deals, making the pricing more tolerable. The Face Shop has recently concentrated on growing its online business, establishing a direct flagship location on Alibaba’s Tmall, and actively partnering with e-commerce networks like Jumei and VIP for cooperative marketing.

Strategy to enter Chinese Market

(1) Offline to online marketing The Face Shop began an offline commerce marketing plan with Tmall, the mall of China’s largest e-commerce business Alibaba, in February 2016 over the Chinese New Year period in order to target Chinese tourists, a crucial demographic for consumers of cosmetics. The Face Shop, a Korean cosmetics company, performed an O2O marketing campaign with Alibaba for the first time ever in the sector. The significant number of travelers visiting the Face Shop Myeongdong store, where the majority of the employees speak Chinese and other languages, is due to the fact that Myeongdong is one of the most well-liked shopping districts for Chinese tourists. Eleven stores in Seoul’s main shopping areas, including Myeongdong, Hongdae, Sinchon, and Dongdaemun, give Chinese clients special discounts on their purchases. For instance, when Chinese consumers scan the QR code in the store and sign up for the Face Shop Tmall flagship shop, they will all receive a free 3-piece set of “The Therapy” products worth the equivalent of 10,000 KRW. Additionally, the CRM campaign for the China market is still going strong with a variety of offers, like member discounts at the Face Shop’s Tmall flagship store. In order to concentrate on the Chinese market, The Face Shop is getting ready to launch a shop-in-shop model and a direct website for the internet reverse direct shopping group.

• New product introductions The Face Shop and Jumei, a popular beauty site, collaborated to present a limited-edition collection of their adorable The Face Shop and Kakao Friends crossover collection on August 2012. To introduce the new items and advance the marketing campaign, more than 100 members of the Chinese media and internet celebrities were invited. The W Hotel on Chang’an Street, in the center of the city, hosted the launch ceremony. It had a lemon yellow color scheme with cute and funny Kakao Friends pictures that appeared in numerous parts, including a photo booth, a trial area, and a product showcase. In order to develop a limited edition product line and introduce the new products, the event was staged in partnership with Kakao Friends, one of the most well-known cartoon characters in Korea. This helped to immediately attract the public’s attention. The Face Shop has finally succeeded in reaching Chinese consumers by actively utilizing two marketing tools: media platforms and online celebrities.

• Marketing for KOL 

The key phrase in Chinese advertising and online commerce right now is, obviously, which the term “internet celebrity,” or “KOL,” refers to a person who has gained popularity online and is followed by internet users. Millions of 20 to 30-year-olds follow netizens online, and they have significant marketing influence in a variety of industries, including fashion and cosmetics. The KOL sector, which includes e-commerce, advertising, paid content, and services, reportedly reached RMB 100 billion in 2016 and is expected to grow at a CAGR of 29.4% from 2015 to 2018. This information comes from a 2016 research report on China’s webcast industry. Three things make KOL marketing advantageous: it is simple to increase brand awareness; it does not easily adapt in response to changes in Chinese policy; and it directly affects sales growth. Because its admirers will eventually become potential customers, the beauty business has recently concentrated on KOL marketing. KOL marketing is more influential than TV advertising, according to William Lauder, president of the global cosmetics business Asterisk, while discussing the possibilities of the KOL economy. Five internet personalities, including “Little Black” and “Little Piggy,” who each have more than one million Weibo followers, were invited to the Therapy beauty concert in April 2016. The event and its content were live-tweeted by the five celebrities, earning The Face Shop posts more than 2 million views. The Face Shop will secure its position in the Chinese market in the future by concentrating on online marketing, particularly “viral marketing,” which aggressively utilizes netizens.

Reflections:

The Face shop is advocated to be healthy, beautiful and refreshing as its co-value, and pursuing the natural lifestyle of its cosmetic products. However, in the marketing campaign, it is less focused on the promotion of its ingredients while more focuses on the channels of sales cooperation.

Strategy to enter Chinese Market

• Active use of social media platforms to successfully increase brand awareness L’Occitane has actively employed social media platforms as a crucial instrument to increase brand awareness after realizing the potential of these platforms in China. L’Occitane uses its Weibo account to express pertinent comments, advertise various marketing initiatives on the site, and expose L’Occitane fans to new goods. Ideal Destinations was a promotion that L’Occitane sponsored on WeChat. Participants contributed their dream locations on the L’Occitane WeChat account, and the winners received an L’Occitane travel collection. A promotion by L’Occitane that encouraged sending Happy New Year messages to your loved ones was also promoted on WeChat and Weibo. To celebrate the New Year, participants had to mention L’Occitane’s Weibo account in a message they sent to friends on WeChat. Three days of the campaign were used, with one message being chosen each night at 8:14 p.m. and given a gift in return. L’Occitane ran a campaign on Weibo called “Dangling Sleep” to advertise the new item. Participants tweeted a picture relating to the topic and included the handle @L’OccitaneProvence, and the winner got a prize. It is crucial to actively use social media to raise brand recognition since current consumers continually engage with one another on social networks to learn more about items.

(2) Design strategy 

One of the main selling aspects for cosmetic products is their appearance. The design component is actively used by L’Occitane as part of its sales marketing strategy. The entire L’Occitane brand is obviously reminiscent of Provence, and its packaging and containers correspond to this. L’Occitane uses drawings and retro design elements to produce a variety of packaging styles while still upholding the original brand concept. For instance, L’Occitane and the renowned Haute Macaron pastry chef collaborated to release a scent. The world’s top mobile internet start-up, Uber, and L’Occitane also collaborated on a promotion to diversify the brand’s image, offerings, and outreach to young consumers. L’Occitane has allocated an average RMB 47 million annually for marketing, with the goal of raising brand recognition in the Chinese market. L’Occitane anticipates achieving positive sales outcomes in the Chinese market by putting into practice an aggressive marketing and three-dimensional design strategy.

（3）The values of the farmer who cultivates the raw material and the long tradition of Provence are present in L’OCCITANE’s goods. The main tenet of L’Occitane—the spirit of Provence—is visible in the layout of its packaging and promotional efforts. Immortelle cream, which is created from the yellow flower immortelle that blooms in Corsica in southern France, is L’Occitane’s flagship product. L’Occitane coloured the container yellow for the first time in the industry to help consumers understand the bright yellow hue of the Immortelle flower. L’Occitane has been successful in creating a strong brand image in the minds of consumers by using yellow containers and packaging to represent the color of the primary component. L’Occitane’s annual sales, which include the Christmas season, are 45% higher between October and December. The distinctive promotional initiatives of L’Occitane made a substantial contribution to the strong sales results in the fourth quarter. The Christmas season is when most brands frequently use Father Christmas and the Christmas moose as promotional items. L’Occitane, in contrast, uses the traditional culture of Provence as a marketing idea rather than Father Christmas. In Provence, there isn’t a Father Christmas tradition, but there is a well-known tale of the perfume salesman who roams the region selling locally manufactured perfumes. The tale of Provence served as the inspiration for L’Occitane’s year-end marketing campaign for the product idea. From choosing the ingredients and creating the bottle to developing the marketing plan, L’Occitane kept with the Provence aesthetic throughout the entire process. In this approach, L’Occitane’s success in the Chinese market can be attributed in part to its consistent and distinctive branding.

Reflections：

L’OCCITANE is a French brand focuses on the co-value of French Naturism. In all its marketing campaign, it advocates and embedded the idea of “nature” and “organic” images as it always is. Despite its constant development, L’OCCITANE remains true to its beliefs and founding principles. It creates a 100% comfortable and healthy body and mind through pure and effective natural products. L’OCCITANE’s products are a true legend and a true pleasure to use.