The cosmetic industry worldwide seems to be continuously developing, today more than ever with the globalization and digitalization around the world. Nowadays, Europe (France), the United States and South East Asia are leading the market, but Europe, especially France, still dominates the market and represents more than 63 billion euros in 2018.
Since the rise of China these past few years, the cosmetics sector on the Chinese Mainland has been growing at a fast pace. Moreover, the digitalization and globalization, as we mentioned before, have taken another direction in terms of targeting customers: with the increasing of Chinese wages, Chinese people have changed their habits and especially their way of living. Also, the development of the middle class in China leads Chinese consumers to spend more money on cosmetics.
For 20 years, Herborist has been a huge success in the middle and high-end personal care cosmetics industry. Since its entrance on the Chinese market in 1998, Herborist has built a strong brand image in China: its long-term strategy was to implement its products all over the world and take an international dimension. In 2012, they began to implement the brand in Europe (France).
Nevertheless, South Korea became one of the most emerging beauty industries. In 2016, this country was considered as the 8th largest cosmetic market and is still gaining market volume. (Statista) “K beauty” has developed since 2012: this South Korean beauty culture has swept the world, especially in China. LaNeige, a Korean brand based on natural products, was created in 1994. This brand is prestigious and well-known in South Korea and is sold in China (and South East Asia), Europe and America.
Herborist’s history & identity
Herborist (or 佰草集 – Bai Cao Ji in Chinese) is a wholly-owned subsidiary of Jahwa United Co established in 1998, in Shanghai, China. Jahwa is the first listed company in the Chinese domestic cosmetics industry which was established one hundred years ago in Shanghai. The company has international standard research, development team, and brand management capability. It is the leader of herbal medicine personal care brand worldwide and they own the strongest production capacity in China. By using a differentiation branded strategy, it has created various Chinese brands to meet the increasing competition.
The brand includes:
- Chinfie – An online luxury cosmetics brand
- GF – Meeting the increasing demand for Man cosmetics
- Maxam – Skincare for older skins
- Cocool – Makeup brand for the younger market
In 2001, Herborist expanded nationally by entering the Hong Kong market and testing its product in this very competitive market that was dominated by the major Japanese and Western cosmetic brands. Two years after, Herborist first SPA opened. In 2010, they opened themselves to the international market by launching their product in Europe through Sephora’s stores. The results were mixed; although some of its products became top sellers, the overall sales figures were not very promising. Today, Herborist is well implanted internationally and continues to gain significant market shares in Europe, Israel and the US.
LaNeige’s history & identity
Laneige (라네즈 in Korean or 兰芝 in Chinese) is a Korean cosmetic brand created in 1994. LaNeige is part of the Amore Pacific corporation, the largest South Korean conglomerate including famous Korean brands such as Sulwhasoo, Etude House, Innisfree, Mamonde, Hera, Aritaum, Iope, etc. AmorePacific Corporation was founded by Suh Sung-hwan in 1945 and the current chairman is his son, Suh Kyung-bae. Today, Amore Pacific Group is Korea’s largest cosmetics company, with more than 250 researchers, three research institutions, and is the world’s 14th largest cosmetics company.
In September 1994, Laneige was launched in South Korea. From 1994 to 2000, LaNeige campaign “Everyday New Face” highlighted “the confident and energetic modern-day woman”. During the 2000s, Laneige expanded across Asia including Hong Kong and China Shanghai, in 2002. The brand also launched its first premium makeup line while many of its moisturizing products such as the “Water Bank Essence”, the “Water Sleeping Mask” or the Multiberry Yogurt Repairing Mask became more popular and won multiple beauty awards. The company also hired popular brand ambassadors. Indeed, in 2008, Song Hye Kyo (송혜교), a famous Korean actress who started in “Autumn in My Heart’, a 2000 popular drama, became LaNeige advertising model.
Today, the brand is well-known for its skincare especially its moisturizing products such as the “Water Sleeping Mask”, the “Water Bank Moisture Cream” and the “Lip Sleeping Mask”. The Water Sleeping Mask” remain Laneige worldwide hit, as one is being sold every 11 seconds. Famous Laneige products also include makeup products such as cushion foundations and lipsticks such as the “two-tone lipstick” and men skincare.
LaNeige has several stores across Asia (South Korea, Mainland China, Hong Kong, Taiwan, Thailand, Vietnam, Malaysia, Indonesia, Singapore) North America (USA, Canada) and Russia. The brand is also available in Sephora stores and website across the world.