Competition is keen in both Mainland China and Hong Kong markets.Currently, around 80% of the market is dominated by U.S. and European brands. However, Chinese brands are also expanding their market share, particularly in the lower sector. JaneClare is a rare Chinese player at the middle-to-upper end of the market. In U.S dollars, prices range from $34 to $188.
Brand Launch Challenges
As the market is already congested, it’s difficult to start a beauty brand in China. Even with products made in China, new restrictions are being introduced to bring the formulations and ingredients of local products under similar controls as foreign products. For foreign products, the first step is to apply for a Hygiene permit (China State Food & Drug Administration). Another major concern is protection of intellectual property rights because infringement is common.
Advertising is a very expensive, but a necessary exercise to gain the attention of customers in China. A standard method is to engage an artist as a spokesperson, to help establish an emotional connection with the customer. Membership clubs, too, are common to maintain customer loyalty.
Retail opportunities in China include beauty merchandising in chain stores and counters in department stores. Sasa, for example, is one of the leading beauty retailing groups, with more than 500 stores. Selling in beauty salons is also possible. Another method is to develop your own online shopping site or through popular platforms like Taobao.com.
Comparing China Retailers With U.S. Stores
Creating a Brand Image
JaneClare’s formulations combine Chinese herbal medicine and Western technology. Its slogan is “Ethical Skincare Products, Nature at its Best.” To maintain brand image, JaneClare always insists that beauty advisors be friendly, approachable, amicable and helpful, instead of being aggressive or adopt power sales tactics. All sales persons go through product training, but the education also includes information conducive to promoting the benefits, philosophy and concept behind the products.
What’s Ahead for JaneClare
The brand is focused on Mainland China and Hong Kong. It’s also in discussion with a number of potential distributors from other Asian countries, and has recently presented the brand to natural products retailers in the U.S.
About Jenny Yeung
Jenny holds a double bachelor’s degree in Chinese medicine and biomedical science and a master’s degree in internal Chinese medicine. She became involved in JaneClare because of the company’s international vision and its caring approach. The mission of JaneClare is to use pure and natural ingredients to ensure clients are free from skin irritation and enjoy sustainable beauty.