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The client is a European cosmetics and home products brand that specializes in luxurious personal care and wellness items at affordable prices. Since entering China through e-commerce a few years ago, the brand has established a strong presence and target audience in the online retail environment.
After several years of success in e-commerce, the client recently opened an offline store in Shanghai. However, initial feedback has shown that some consumers are somewhat stranger to the concept of affordable luxury in the personal care category.
In this context, the client has reached out to Daxue Consulting to conduct research into the value propositions of the brand. The goal was to determine how existing value propositions could be adapted to or otherwise expanded upon, to more efficiently express the brand identity to Chinese consumers in a way that is easily comprehended and accepted.
The client needed to understand the market and its consumers, therefore, we started with desk research focused on benchmark analysis and case studies. Here are the steps we followed:
Step 1: Immersion workshop
Step 2: Identification and breakdown of the key competitors in China
Step 3: Existing value proposition analysis
Step 4: Strategy mapping
We carried out an immersion workshop with the client to validate existing brand values, identity, and value proposition in foreign markets. Internally, our team will use this information to form a series of initial hypotheses on how the Chinese audience will perceive these elements. These hypotheses guide the next steps of research.
We identified brands with similar target audiences as the client and made case studies to understand how they have adapted their value propositions in China. This set the groundwork for identifying paths to differentiation & disruption for our client.
The current value proposition was analysed for its effectiveness in the context of the Chinese consumer. We used social listening tools to understand the current perception of the brand among beauty consumers in China.
We used the mapping method to identify ‘prime brand attributes‘, which are elements that Chinese consumers will resonate with strongly, as those will become the cornerstones of brands’ value proposition in China.
We provided the client with a step-by-step framework of marketing strategies and initiatives for the client’s offline stores. We covered the strategic outputs in a workshop with the client’s team, where we then presented the brand with key findings and actionable recommendations in the form of a market report.
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