China’s Herborist set to soar

Management consultancy A.T. Kearney has identified China’s Herborist brand as a potential global player in the cosmetics industry. Owned by Chinese cosmetics and household goods giant Shanghai Jahwa, Herborist was first introduced in 1998.

The brand is based on traditional Chinese medicine and herbal science, and has retail sales revenues of over $300m. It is also sold through a network of 300 stores, and has a counter presence in about 900 Chinese department stores. The brand also benefits from an international presence, largely in Europe through Sephora.

Jahwa’s initial goal was to build a national brand and that could compete against multinational cosmetic companies in China. Herborist made its debut in Europe in 2008 through LVMH’s Sephora network in France. Since then, the brand has expanded to Denmark, Italy, Poland, Turkey and Spain through Sephora’s network. It also owns 19% of Sephora’s China operations. Meanwhile, in July, it entered Germany through beauty retail chain Douglas.

According to A.T. Kearney, Herborists Tai Chi product line has become a hit and now accounts for 40% of revenues in overseas markets.