August 13, 2016

72 L’ESSENTIEL

Co-designing of marketing and sales strategy unlocks Chinese market for a French Cosmetic brand

Context:

72 L’ESSENTIEL is a new brand dedicated to sell “Savon de Marseille” soap in China. All soaps are produced in France, then imported and distributed in China.

Challenges:

Within a short time and budget frame, 72 L’ESSENTIEL needed to:

  • Register a Hong Kong Limited Company holding shares of a WFOE in Shanghai. This WFOE had to receive an import-export license;
  • Effectively attract Chinese consumers who are usually looking for historic brands in the cosmetic field making new brand distribution a real challenge in the country;
  • Targeting one major distributor without the product having any brand awareness. In addition to this, identifying small retailers to distribute to.

Innotek Asia Services:

Innotek Asia supported 72 L’ESSENTIEL in its global approach of the Chinese market through the following actions:

  • Market study and product testing with potential customers;
  • Legal set up of a Holding Co. in Hong Kong and a WFOE in China;
  • Obtaining Import & Export Licenses;
  • Offline Sales Strategy Development successfully locking one major distributor;
  • Online Sales Strategy Development listing products on major online trading platforms.

Customer Benefits:

After 2 years, sales reached 3 million RMB (450K USD)

The Figure

Products now distributed on 12 online platforms and 2,000 shops

Tailor-made sales strategy resulting in distributing through a major Chinese distributor

50% savings on legal set up of the 2 entities compared to market price