Case Study Of Herborist: A Chinese Personal Care Brand Goes Abroad

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THE UNIVERSITY OF HONG KONG

Faculty of Business and Economics

International Business Environment

Full time class - 2016

Individual Case Analysis

HERBORIST: A Chinese Personal Care Brand Goes Abroad

Professor Kevin Zhou

By- Anirudh Singhania 3035214545
• Advantages for Herborist to a become a global brand:

1. Increasing Popularity of Natural Personal Care Products – Over the years, consumers were becoming more aware and conscious, preferring natural and organic personal care products over standard synthetic and chemical formulated products. According to a survey conducted in 2008, 63% of Asia Pacific region and 50% of global respondents believe natural personal care
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To market the products in Hong Kong, Herborist adopted the same sales strategy model that was implemented in China, i.e. of opening exclusive stores. I think the decision to enter the global market was a good choice primarily for three reasons:

1. Locational Advantage: Hong Kong has a huge locational advantage as it is located in heart of Asia and gives access to rest of Asia pacific market. Being one of the biggest cosmopolitans in the world, it will expose Herborist to all different types of the consumer preferences and it could be a great platform to understand varied consumer buying behavior. Hong Kong is also closely connected to China and it would be convenient for a company based out of Mainland to manage its operations.
2. Ease of doing Business: Hong Kong is one of the renowned place when it comes to ease of doing business. As per 2012 report of World Bank, Hong Kong ranks 2nd when it comes to worlds easiest place of doing business3. Good infrastructure, simple tax policies and strong legal system are some of the reasons that makes Hong Kong an attractive

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