BIZCHINA> Center
|
BIZCHINA> Center
|
|
Related
Beauty of a business
By Jiang Jingjing (China Daily)
Updated: 2008-05-19 09:25 The fragrance sector is still small, although the product ultimately by Asian standards is nice, and Chinese want to smell good without irritating those close by. "In North Asia, culturally speaking, customers do not want to invade their neighbors with the smell, even it is a great smell," he says. The company so far has three fragrance brands for the China market: Aramis, Tommy Hilfiger and DKNY. By the middle of April, the company has 78 counters for Estee Lauder, 67 for Clinique, 10 for Mac and 11 for Bobbi Brown. It has 1,200 beauty advisers. To grow such a sales force, talent, especially quality talent is crucial. "In China, we were early in the game to realize the importance of developing local staff at the right level and at the right pace," Weber says. "We are by far investing the most in educating our employees in the Chinese mainland, compared with other markets. The investment here is three to five times more than any other country in Asia," Weber continues. Since prestige cosmetics were new to the mainland, the talent was scarce. The local Estee Lauder executive academy is a good example. Local employees have to go through six phases to complete their 12 to 24 months' training, while in other markets, the training is shorter and simpler. The Chinese mainland initiatives prove to be a success, and now markets like New Zealand, Singapore and Taiwan are picking up the same practice. Like many companies in the luxury sector, retaining staff is a challenge for Estee Lauder. China is a land full of opportunities for young people, but the company has developed high staff loyalty. "We make them understand we are building them up and grooming them," Weber says. Though it's a US firm, Estee Lauder believes it is as knowledgeable about Asian skincare needs as any of its Japanese or South Korean rivals. "It (Asian brands understand Asian needs better) is an old clich in the industry to give more credibility and legitimacy to local or regional brand, and there is some truth in the consumer perception. But Estee Lauder started selling products in Asia way earlier than many brands here. There is no secret in the skin of the woman today for anybody." In 2005, the company established a research center in Shanghai. The 857 sq-m center, called Innovation Institute, has four laboratories for biology research, treatments, make-up and packaging testing. Part of its function will be to assess safety and efficiency through clinical studies with research laboratories and hospitals and study the skin's response to environmental stress. Together with the other lab in Japan, the R&D facility has been contributing largely to the company. For example, many Estee Lauder whitening and clarifying products are only for the Chinese market. "They are developed by Asian labs, with the Asian marketing expertise and Asian consumers are using them," Weber says. (For more biz stories, please visit Industries)
|
