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The Way That Herborist will Enter the British Market

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Zhao Liu

on 5 March 2014

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Transcript of The Way That Herborist will Enter the British Market

The Way That Herborist will Enter the British Market
A Brief Introduction

Built up by Shanghai Jiahua to compete with foreign brand

Core concept based on traditional Chinese Herbal medicine

A balance between traditional knowledge and contemporary cosmetic science

Five product line

Why UK market
Britain is one of the largest market in EU cosmetic market share (Euromonitor).

Chinese Herbal Medicine Cosmetics is a new segmentation in British cosmetic market.

British woman with high potential purchasing power (Mail Online).
The Way out
Team Member:
Chi-wen Chen; Snow Chen; Song Wei; Kang Wei; Yan Huang;Zhao Liu
Key Points We Focus On
Herborist and it's existing strategy overseas

Why next step is in UK

How Herborist entry in UK's market successfully

The problem we face and solution

First exclusive store
in Shanghai
Launching into
Hong Kong market
First Herborist SPA opened
Officially launched in the
Sephora in France
193 outlets in six countries
First entry USA, , can be seen
in other 13 European countries
Five forces model to analysis:

Bargaining power of supplier
Single agent Boots
Weak power on bargaining and
construction of channel
Intensity of rivalry:
Main competitor is L’Oreal

15% market share
Leader position in the UK
skin care market in 2012 (L’Oreal,2013).
Threat of substitute product
Main substitute
: Neal’s Yard Remedies and L'Occitane
Similar selling poin
t:Natural, healthy, organic beauty
Similar core product:
Organic skin care
Extend service:Neal’s Yard Remedies:
Essential oils Aromatherapy beauty SPA
Entry Model
Cultural Differences:
Herborist products need to be adapted for the Western Market.

Types of Entry Strategy
Indirect exporting

Direct exporting


Direct investment.

Joint ventures
Joint Venture Stragegy

There are differences between Britain and Continental Europe’s cosmetic marketsHerborist cannot find an identical store as Sephora in UK.
Joint Venture with Boots
Over 1500 storesWide selection of products
Recognizable brand
British company
Boots Advantage Card
Growth strategy

Strengthening brand building in the UK.
By advertising in newspapers, magazines and TV commercial to increase the company’s exposure rate.

Because the Tai Chi Mask is the most popular Herborist product in France and Germany, we treat this product as the symbol of our company. And formed consumer brand loyalty.
Developing scientific management mechanisms
1. Using reasonable salary and benefits and motivation system to attract employees.
2. Providing a good stage for all kinds of employees to exploit their talent and offering a good work environment.
Market and sales strategy
Target costomers
Price positioning
Image positioning
Natural and Balanced

Enjoy the natural green gifts, and return green beauty to natural

Green fashion statement-keep the beauty of the earth

Sales Strategy
Product Strategy

Media mix strategy

Marketing strategy at growth stage

The marketing strategy of the recession period

Risk and Conclusion
Full transcript