Minnie Wang
Jul 18, 2024

Brand Health Check: How should Florasis chart its entry into the high-end market?

Nearly a year following a PR crisis, the Chinese cosmetics company manages to gain a cult following and has ambitious plans to penetrate international luxury markets. Marketing experts weigh in on how the brand should forge its path forward.

Brand Health Check: How should Florasis chart its entry into the high-end market?

Almost a year after Li Jiaqi's (Austin Li) eyebrow pencil gate which was me with domestic backlash, the Chinese beauty brand Florasis (or 花西子in Chinese) has managed to achieve significant success overseas, especially in Japan.

In February 2023, Florasis launched its inaugural overseas pop-up store in Tokyo, Japan, igniting a 'Florasis frenzy' across various social media platforms. This was swiftly succeeded by the opening of a pop-up store at the @cosme store in Osaka in January 2024. Both events showcased the Nomadic Glam collection, which draws inspiration from the nomadic customs of China’s ethnic Mongolian culture.

Florasis' Nomadic Glam collection


Ashley Dudarenok, founder of ChoZan & Alarice, said that  ‘Tong Xin Suo’ (Concentric Lock) lipstick, a product from Florasis, gained a cult following upon its release on Amazon Japan and quickly rose to become one of the top three best-selling lipsticks. With a premium price tag of 6,129 Japanese yen (US$38) on Amazon Japan, it even surpassed the price of a tube of Chanel lipstick, which is 5,270 Japanese yen (about US$33). According to Dudarenok, the brand resonated with Japanese consumers because of its “elegant aesthetics and innovative product offerings”.

Dudarenok noted the “contextually relevant" strategies adopted by Florasis in Japan since the brand not only launches seasonal products inspired by Japan's cherry blossom and maple leaf seasons but also adjusts product colours to cater to Japanese consumers' aesthetic preferences, offering shades like caramel maple, peach, and rose pink.

The Florasis pop-up at @cosme Osaka


As a C-beauty brand, Florasis will soon mark its new global milestone with its Parisian debut at LVMH’s Samaritaine Paris Pont-Neuf, in partnership with luxury travel retailer DFS Group. On September 1, Florasis will open its first European counter in France.

Created in 2017 in Hangzhou, China, the inspiration for the brand is said to come from the city’s West Lake, a location that has been a powerful muse revered by poets and painters for thousands of years. With traditional Chinese beauty, philosophy and aesthetics, the brand is telling unique stories with international audiences.  

Campaign sought the insights from marketing experts on how Florasis can strike a balance between its international expansion and domestic growth. 

Lily Wen
Associate partner 
Prophet

 

Boosted by the fast rise of social commerce and rising acceptance of domestic brands, Florasis' success story is built upon the unique context of market and consumers—affordable prices, attractive packaging and product design have become the winning formula for makeup brands. 

As Florasis seeks growth overseas, one key thing to note is different archetypes of global markets. The same winning formula might still work in some Asian markets like South Korea, Japan, and Thailand, but when it comes to markets like Europe, the brand must navigate several challenges and adapt its strategy to succeed:

  • Inclusivity and diversity: Unlike the relatively homogeneous East Asian markets, consumers in Western markets are fundamentally diverse. It requires much more than simply featuring different skin tones in ad visuals, but truly understanding and creating products and communications with potential appeal to diverse races and ethnicities. Brands like Fenty Beauty have set a strong example in this regard.
  • Ingredient safety and sustainability: while packaging design creates interest, a new brand needs to assure trust to drive consideration and trial, and product safety and quality are crucial. How to make it tangible and transparent so consumers immediately get the message and gain trust of the brand? One potential lever Florasis could explore to highlight the safety and quality is its association with Chinese medicine, which is often related to holistic and spiritual wellness by Western consumers.
  • Hero product strategy: There are also many new brands competing for consumers attentions in Europe, and moving in with a Hero product vs. a Hero product line is a strategic choice Florasis should make. Identifying key subcategory to win and focus investment in hero SKUs is usually more effective than telling stories around a full line up. If Florasis could identify hero products that best amplify the benefits mentioned above – inclusivity and quality, the brand could build long-term relevance and resilience.

Teriea Lu
Consultant
R3 China

 

In addition to the Li Jiaqi incident, many C-beauty brands are grappling with challenges related to price sensitivity among domestic consumers. However, there are multiple elements to consider in product development and communication strategies which have shown effective results on engaging with consumers.

Using Florasis as an example, the brand has made clear decisions regarding market selection and business development.

In terms of overseas expansion, several critical points apply to most Chinese brands within the industry:

  1. Best fit modeling: Clear separation of responsibilities and authority is essential for effective cross-office and team collaboration.
  2. Right partners: It is crucial to ensure that marketing partners possess expertise and knowledge from both sides while respecting cultural differences.
  3. Advanced ROI: Understanding the complete process and shortcuts involving third parties, as well as being aware of related benchmarks, enables optimisation of performance and cost.

Ashley Dudarenok
Founder
ChoZan & Alarice

 

Pricing strategy: Florasis should reevaluate its pricing strategy to effectively communicate the value proposition to consumers. While premium pricing can be justified by high-quality ingredients, innovative technology, and meticulous craftsmanship, transparent communication about the development process, including scientific research, user feedback integration, and meticulous manufacturing techniques can bridge the gap between price and perceived value.

Diversifying influencer relationships: To establish brand loyalty beyond dependence on Li Jiaqi, Florasis needs to invest in its own content team. Developing engaging content go beyond product promotion and foster a vibrant online community where consumers feel valued and heard. This is a crucial step toward diversifying reach and building a stronger, more independent brand identity.

By building and nurturing its own content team, Florasis has a better reason to break away from the 'Li Jiaqi' label. It is also beneficial in diverting a portion of Li Jiaqi's private traffic. In the current situation where both the brand and the KOL are facing negative public opinion, this approach can be seen as a strategic move to 'loosen the binding' to a certain extent for both parties and can be considered a wise move. This approach may also have deeper objectives, such as facilitating Florasis' further implementation of its next-stage strategy—entering the high-end market.

Florasis can collaborate with more influencers, celebrities, or brands to expand its reach and tap into new customer segments, and depend less on 'Li Jiaqi' label and rely less on the super livestreamer. 

Ethical and sustainable practices: Florasis must prioritise its commitment to ethical and sustainable practices, particularly in international markets. As consumers become increasingly conscious of environmental and social impacts, sourcing ingredients responsibly, adopting eco-friendly packaging, and supporting social causes aligned with the brand's values will enhance Florasis's appeal to a global audience seeking ethical brands.

Product Innovation: Florasis could continuously innovate and introduce new products or product variants to maintain consumers' interest and cater to evolving preferences. In recent years, domestic beauty brands, represented by Florasis, have been undergoing a transformation and upgrading towards a more mid-to-high-end brand image. Their prices have already departed from the affordable range, with some products even being priced similarly to international beauty giants. Local beauty brands heavily rely on marketing and promotional tactics to establish brand awareness. However, consumers are increasingly placing emphasis on quality of product.

Source:
Campaign Asia

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