Herborist won 06 China Top Ten Best Brand Construction Case Award

With the brand name and the international disputed personal care market in China, the company cherishes the core concept of wholeness and balance as the brand, develops a product and service system supported by the “holistic view of beauty and care” of Chinese medicine, and establishes a personal care market in China. Unique brand positioning, accurately grasp the market opportunities. Won 2006 China Top Ten Best Brand Construction Case Award.

The reason why Herborist got this honor was that it formed its own characteristics in the process of brand building for many years, formed a complete communication and marketing system, fully tapped the elements of traditional Chinese culture, and shaped the attractiveness of the target crowd. Brand core concept. This is a good reference for the construction of other local brands in China. Performance in the following areas.

The first is the idea of ​​Chinese herbal medicine under the guidance of its overall concept of Chinese cosmetic theories; it also relies on the overall sense of the five senses of nursing customer experience and full range of product development; secondly, the three integrated marketing network of “special store + counter + SPA”; The overall concept is the core, and CRM, which is based on member activities and member publications, establishes customer relationships; once again, consistent, fresh, natural and rich Chinese advertising style. In addition, considerable success has been achieved in terms of brand awareness, brand function and emotional customer perception.

Ten years ago, Shanghai Jahwa had already secured a place in the mass market. However, the fierce market competition, especially the entry of transnational daily chemical giants, has made Jahwa fully aware that seeking a breakthrough in the high-end market is the only way to enhance the overall competitiveness of the company. The reality at that time was that Jahwa had no experience in operating high-end brands and could not compete with international mature brands in the mainstream cosmetics market. Therefore, Shanghai Jahwa's original dream was jokingly called "harassing the high-end market."

Differentiation is a compelling choice for Shanghai Jahwa. Since 1995, after a three-year feasibility study on product positioning, development, and marketing, Shanghai Jahwa has finally established the "Herbal Essence Route" of the internationally renowned brand Body Shop as a reference, with individual herbal medicines. Nursing supplies are high-end strategies for entry points. This is also a pragmatic decision. At the time, Shanghai's Jahwa brand "Lishen" had 5 or 6 years of experience in the development of Chinese herbal medicine. "If you let the new brand 'grass set' take the Chinese medicine route, Jiahua has certain inherent advantages."

The differentiated demands on product features are the most basic brand strategy of Herborist. Since its launch in 1998, the functional appeal of Herborist has undergone a gradual process.

At the beginning of listing in August 1998, the first problem encountered by Herborist's brands was that “many people have a strong repelling attitude toward Chinese herbal medicine”. The reason is that the intuitive association given by Chinese herbal medicine is "unsightful color and unpleasant odor." After receiving feedback from the market, Jahwa quickly adjusted its brand image. Avoid the propaganda point of “Chinese herbal medicine” and turn to “fresh and natural” as the appeal point. This propaganda strategy lasted until 2002, but after that, Herborist ushered in new changes. Its functional appeal point is back to Chinese herbal medicine. The difference is that this time it is "Chinese herbal medicine additive."

Huang Zhen, general manager of Herborist Cosmetics Co., Ltd., explained that “'fresh and natural' is a very suitable feeling for cosmetics, but it is not a very differentiated appeal”. Because "there were too many cosmetics on the market with 'fresh and natural' as selling points." “In the past few years, natural and healthy ones have been unconventional in the market. But now it is not.” “Our position is 'herbal medicine' cosmetics, and some brands are positioning 'plant additives', or 'all natural', there is actually a gap between consumer understanding and our brand definition.” “When our brand is not very strong, consumer perception is ambiguous, and they think it is possible to replace each other.”

Huang Zhen frankly said: "To be different, we must change. We must go deeper in the original practice, and let opponents enter a higher threshold, the more difficult it is to duplicate. In this way, my security is even higher." . In his opinion, the market environment has changed, and only “deep” can make the value of Herborist's brand be reflected.

Since 2005, the functional requirements of Herborist products have gone further, from the "Chinese herbal medicine additives" to the "Chinese herbal medicine compound." "The 'compound' has taken a step up from 'Chinese Herbal Additives'. The compound is extracted from Chinese herbs. 1+1 is greater than 2 and it is a compound effect."

"We are expanding the brand's Chinese herbal properties," Huang Zhen said. "In 1978 or even the entire international market, the perception of Chinese herbs has changed. Herborist is changing with the market environment and the needs of customers." Another objective condition to support this change is that Herborist already has a considerable amount of network, membership, and brand awareness.

The high degree of recognition in the target customer base is the most important driving force for Herborist's brand strategy. In order to better spread Herborist's brand name and not just sell products, Herborist chose to implement accurate database marketing through the "membership system." “We want to be a platform that allows consumers to understand more about our brands. Let consumers be more exposed to the product and understand more about the brand's connotation and culture. To increase the brand loyalty of target customers, This is a very effective means." Huang Zhen said. The more realistic consideration is that "in a highly segmented market, the target consumer group is very small. Of the 100 women of the right age, there may be only 10, or 20, our target customers." "On this premise, we need to be targeted, we must accurately find these people, make accurate marketing for them, form duplicate purchases, and increase the amount of single purchases. This will reduce the cost."

"In fact, it is to spend limited marketing resources to the true target consumer group." Huang Zhen said. The target market also gave Herborist a positive response. Today, Herborist has reached 270,000 members. Of its total sales, more than 45% of its members are from members.

The more important result is that in communicating with members, Herborist has become more clearly positioned: “Our target consumer group is the intellectual white-collar women? It's not impulsive consumption, but brand acceptance.”

“Every year, we will engage in some membership activities. At the scene, you will find that these people are highly unified in style, for example, more rational and more introverted.” Even in Huang Zhen’s view, this is “inconceivable”. In order to intensify in-depth marketing, in addition to the existing services such as journals, loyalty programs, annual gatherings, and call centers, the exclusive clubhouse and online interactive community for Herborist is also on the agenda.

Today's Herborist brand has already stood on a new starting point. "We are entering the brand growth period from the brand establishment period," Huang Zhen said.

Shanghai Jahwa also put forward new requirements for Herborist in the near future. “Before, Shanghai Jahwa was a relatively relaxed environment for Herborist. At that time, our goal was more qualitative, such as how the brand did. In the future, when we enter the brand growth period, it should be a higher level. Goals, but also quantified goals."

In order to expand the scale of sales, “to expand the extension of target consumer groups, next year, we will make some adjustments in the way of marketing communication and expand some contacts. Through some new modes of communication, reach more consumers and see Look beyond our cognition, how is the acceptance of Herborist outside of our target consumers?"

In order to achieve this higher goal, Herboristic’s other shifts in the next three to five years will also include: a shift from a Chinese company to a global company, from an edge brand to a mainstream brand, and from “re-learning, Reference, follow-up to "independent innovation," and so on.

About Shanghai Jahwa United Co., Ltd.

Shanghai Jahwa United Co., Ltd. is a company controlled by Shanghai Jahwa (Group) Co., Ltd. and Shangshi Daily Chemical Holdings Co., Ltd. and was listed on the Shanghai Stock Exchange in 2001. Shanghai Jahwa is mainly engaged in the development, production and sale of cosmetics, personal protection products, household protection products, and detergents for cleaning products. It owns six famous Chinese names such as Liushen, Maxwell, Qingjian, Herborist, Jiaan, Shuxin, and Dream Paris. The brand occupies a high market share. In 2002, the main business income reached 1.3 billion yuan. The marketing network covers more than 20 provinces and cities in the country.