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Value Proposition Validation in China for a Skincare Brand

Client profile

Our client is an American agency working with beauty brands to support their global expansion. The agency is starting a new project with a brand producing plant-based prestige skincare, branding itself around specific attributes such as the scientific approach, the use of microbiome, the use of goat milk, the usage of a humoristic tone in its presentation, a unique visual experience when opening the packaging, etc.

Objective

The client is aiming to launch distribution for the new brand in the Chinese market. In this context, they contacted Daxue Consulting to set up a consumer research project exploring the potential acceptance of Gen Z consumers for new brands’ value propositions and ultimately support the localization of this value proposition before the launch.

Our client aims to gain answers to the following questions:

  • What is the current knowledge base of consumers and how much education needs to be done about the value proposition?
  • How do the potential customers react to the visual presentation of the brand and the overall tone?
  • What do the potential customers like and dislike in the complex, multi-layer value proposition and which attributes of it are to be highlighted specifically in China to let the brand stand out?

Research process & methodology

To answer the above questions, we suggested developing a 3-step approach to collecting consumer insights through various perspectives:

Step 1: Auditing and mapping the value proposition layers’ current impact on the Chinese market

Step 2: Contept testing

Step 3: Statistical validation of the value proposition structure

In this step, we broke down the new brand into layers of attributes to be tested and audited some of the proof-of-concept for these attributes on the market. We also identified any potential momentum toward these attributes.

We conducted 4 focus groups in Shanghai to collect the reactions of the participants to the brand and its products but also to let them debate and co-create some answers to the issues they identified.

To finalize the review of the value proposition, we conducted an online survey with 750 participants. This survey helped us to quantify the trends identified in the previous steps and statistically validate the value proposition attributes to be prioritized by the client in the Chinese market.

Daxue also took advantage of the online survey to assess what USP – and potentially what SKU if the brand is willing to test several of them – shows the highest potential to win against the competition on the Chinese online platform.

To do so, we developed a mock Tmall purchase experience within the survey questionnaire where the participants were confronted with a choice between 4 products – one from the client and 3 from competitors.

Outcome

At the end of the project, we collected key findings including consumers’ feedback and reactions upon product discovery and our recommended most-optimized brand presentation and value proposition for our client.