While many domestic cosmetics brands are challenging international giants like L'Oreal and Estee Lauder in China, one brand is slowly encroaching on their home turf.
Herborist, a herbal medicine-based cosmetics line owned by Shanghai Jahwa United Co. Ltd., has been available in Europe for nearly eight years. Its Taichi facial mask is among the five best selling cosmetics distributed by European retailer Sephora.
China's consumer brands are leading the fresh wave of global expansion, with many on the lookout for established local brands to sell to the foreign market. Chinese auto maker Geely bought Volvo in 2010, meat processing company Shuanghui snatched up Smithfield in 2013 and PC maker Lenovo acquired Motorola Mobility in 2014.
But Jahwa, which traces its roots back to Hong Kong in the late 19th century, has sought to take a cut of the cosmetics market with a brand it built 17 years ago.
That strategy of exporting home-grown brand to Europe has domestic calculations. "If Herborist can survive and thrive in mature markets like Europe and the United States, its appeal will definitely grow among consumers here at home." said Huang Zhen, Herborist general manager who has been with the brand from day one.
Although Herborist has been gradually advancing in these developed markets -- with a number of outlets selling its products across western Europe, and its own shop in downtown Paris is also eyeing the United States -- herb-based cosmetics remain a niche product. The company sold 20 million yuan of cosmetics outside of China last year, accounting for a small share of Jahwa's 5.33 billion total revenue.
"The market that will continue to generate high growth and returns for Chinese cosmetic companies in the coming years is still China, not Europe." said Yu Wei, consumer product principal at Bain & Coy.
"What Chinese cosmetic companies do with their brands at home lays the ground work for entry into the international market."
Jahwa president Xie Wenjian said Herborist needs greater exposure in the developed market if it is to stand a chance against the world's leading cosmetics giants.
"We are very cautious with every step we take." Xie said.
According to him, there is no better time than the present for Jahwa to make a splash in the international market, as China's consumer brands and growing economic prowess are drawing worldwide attention.
Using China's traditional medicine to take western premium cosmetics head-on is at the heart of Herborist's strategy.
Herborist brand development director Li Meng said the China factor can be a double-edged sword in Europe.
