Herborist: a Chinese Personal Care Brand Goes Abroad

1379 Words6 Pages
Summary: Herborist is a Chinese personal care brand that specializes in products that fuse ancient Chinese medicine with biotechnology. After experiencing market success in China, Herborist attempted to break into the international market beginning In Hong Kong. Due to poor market assessment the attempt was unsuccessful. There were numerous barriers to entry in the international market; mainly large conglomerates with large market shares such as Estee Lauder and P&G. Herborist encountered several failed attempts both domestically and internationally before it began to operate profitably. Herborist has experience the most international success in Hong Kong and Paris to date. Questions: 1) Herborist has gained entry into both Asian and European markets. What kind of growth strategy should it adopt from this point onward? Should it focus on Asia, Europe or continue to open other continental markets? Should it continue with its existing mode of entry or explore other options? Herborist has experienced significant success in the Parisian market through the aid of its joint venture with Sephora. Since much of Europe will likely share a similar market it would behoove Herborist to further penetrate the European market. The method of entry utilized in Paris (Utilization of a French marketing company to brand the Herborist products in conjunction with product placement in an already successful cosmetics store, Sephora) was immensely successful and seemingly logical. Therefore, it appears there is no reason to alter the method of entry. If possible, it would benefit Herborist to hire a branding company in all of the respective countries it enters, which would allow the brand to appeal and adapt to different market preferences. However, this method is costly, and the financial benefit must be weighed against the ever-present risk. It is true that

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