Kiehl's leverage on big S

Loreal, a company that apply strategy that grow via merger & acquisition (M&A), however will maintain the brand they acquired. The Loreal team would spend time understand the brand's history, philosopher of the founder and core value of the brand.

In 2000, Loreal acquired a niche brand Kiehl's. Although the founder family no longer hold any shares in the company. Loreal has promise not to change the spirits of the brand. Loreal never push the product aggressively and comply with the principle of the brand: "Never advertise". Only one outlet in one territory. Minimum size of the outlet and must able to put in a motorbike.....expanding slowly and low profile manner in major city of the world.

Kiehl's founded by a pharmacist family in New York. Kiehl's give a way free samples to building bound with customer ( 30% of whom are men). Their growth via word of mouth method, attracted a group of loyal customer that like their laboratory. Kieh's never advertise. They are very strict on distribution channel as well.

Kiehl's does not put much emphasis on packaging. Basic plastic bottle,list of ingredient on a white label, no photo of young ladies. Print in black and white label without colour.

The price is comparatively higher (Even baby product). However, they have a lot of "Fans" around the world. In Taiwan, because actress Big S used such product. the product run out of stock during their anniversary celebration.

I think Kiehl's is not yet in Malaysia market.

Technorati Tag: Cosmetic : Beauty