Research on Inoherb in China
Inoherb was set up in year 2000 by Ms. Feng Shuai, who is a descendant of a traditional Chinese Medicine family. The company is one of the earliest Chinese skin care product producers that is involved in using herbs.
Being a brand designed primarily for women, Inoherb believes that beauty of a woman comes from interior, so is her skin. The skin will only be beautiful if it has internal energy. To develop products that satisfy people’s different needs, Inoherb has established long term cooperating relationship with Shanghai University of T.C.M(上海中医药大学).
Being a new and energetic domestic brand, Inoherb has become one of the top ten enterprises in cosmetics industry in China in year 2009 and 2010, famous brand in Shanghai(上海) in year 2010, and the most welcomed enterprise in China’s light industry in year 2011. Its sales revenue was 377 million, 750 million and 1,335 million yuan in year 2009, 2010, and 2011, and net profit was 52.2152 million, 116 million and 135 million yuan.
Ever since it came into the market, it has had a clear brand image and market positioning. Its price is reasonable, which makes it widely welcomed by middle income city dwellers and students. In 2011, it has 2% in the skin care product market in China, and 6.3% in the modern ski care product market in China. In terms of attention the brand has received, it ranked the first in Baidu’s rank in Q1 natural lively cosmetics, and second in the category of skin care products. This consumer loyalty and its good reputation have both laid foundation for its further launching of new products, and its research in the future.
Another fact about Inoherb that worth mentioning is its strict criteria in choosing retailers. The retailers, in general, must: know the brand, and recognize its products; be financially able, and have experience in doing business, have good reputation and is able to shoulder the task of logistics. Watsons is one of the cooperators of Inoherb.
Despite its relatively short history, Inoherb is now known by many consumers. Inoherb is making good use of the Internet to advertise its products. Firstly, there are some chances that consumers might apply for free samples of products for trial, which is drawing much attention. Secondly, Inoherb cooperates with top websites to advertise its products. Thirdly, it encourages those who have tried its products to share their experiences, which will create the brand a good reputation. All this indicate that Inoherb has much potential in the future cosmetics online retailing.
Edited for Daxue Consultant China (on Linkedin about China Market Reserch, Tiwtter about China Research and Facebook about China consulting)
Credit Photo: Nipic
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