Case Study

A Moroccan Argan Oil Retailer in China & Hong Kong

Client's Profile

Our client, a Moroccan producer of argan oil-based skin care products, focused on producing a range of skin care products—including shampoos, lotions, and the like. The company was already selling their products in bulk and under their own brands in North America, Europe, Korea, and Japan, and wanted to enter the Chinese market, where demand for such skin care products was large and growing.

Client's Challenge

Argan oil has become increasingly popular as an additive in a slew of cosmetics and personal care products. For this reason, demand for the client’s products was high and the firm was enjoying strong growth in all its existing export markets.

However, our client faced several challenges. Given its unfamiliarity with the Chinese market—which is markedly different from other markets in East Asia, such as Japan and Korea—their international sales team was unsure how to find the right local partners, enter the market, and properly localize their brand and promote their products.

For this reason, they needed help finding suitable importers and distributors, negotiating fair contracts, localizing their branding (such as name and packaging) and developing a long-term marketing strategy that would drive sales and long-term growth.

Mersol & luo Solutions

China Hong Kong Marketing Strategy & Research

Our team carried out a holistic market entry strategy that included:

Finding the Right Distributor

We worked with our client to select distributors to investigate and carry out due diligence, confirming distributors’ authenticity, capabilities, reliability, requirements, and past performance and making recommendations based on the outcome of each assessment. We focused on distributors with sales channels to supermarkets, specialty department stores, and online retailers.

Contract Negotiation

Based on the outcome of our due diligence assessment, we then approached their preferred distributors in Mainland China and Hong Kong to engage in formal negotiations, guiding our client through the process, managing communication, and representing their interests. We successfully concluded a fair, legal, and enforceable contract on behalf of our client with the local distributors.

Market Strategy & Management

We worked with both our client and their distributors to properly localize their products and branding. Because the Chinese and Hong Kong markets are significantly different, we developed unique strategies and advertising tailored to each market. This included development of their local brand, online sales platforms, digital online content, and management of their customer interaction on social media as well as analytics and reporting.

Outcome

With Mersol & Luo, our client was able to achieve its goals of:

1.   Finding capable, reliable, and trustworthy distribution partners in both Mainland China and
Hong Kong

2.  Successfully negotiating fair, transparent, and enforceable contracts with each distributor

3.  Appropriately localize their branding and effectively promote their products to their target
customers in brick-and-mortar stores and online

Conclusion

Our client wanted to ensure they found the right local partners and positioned their brand properly for the Chinese and Hong Kong consumer markets. However, they didn’t know how to do this, so they sought out the help of professionals, Mersol & Luo. They were able to successfully enter both markets, going from no presence in either market, to being present in dozens of stores and multiple online retail platforms in both markets.

A Moroccan Argan Oil Retailer in China & Hong Kong