Amway is the biggest direct-selling company and manufacturer of the United-States, mainly selling health, beauty, and homecare products. Since entering the Chinese market in 1992, Amway’s presence has grown. In 2011, Amway China’s sales reached 26.7 billion RMB, a larger profit than in any other part of the world.
Amway had the intention to launch a foundation product under its Artistry brand in the Chinese market. Artistry is Amway’s award-winning, high-end cosmetic brand introduced to the Chinese market in 1997. Although its market share in China is growing, Amway needed a better understanding of the Chinese market to further enhance its brand identity and positioning. With a better understanding of the Chinese consumer’s mindset, Amway could best market the foundation product’s brand attributes.
We endeavored to provide a clear picture of why Chinese consumers decide to buy certain foundation products over others. We divided the project into three phases. In order to understand the popular trends of foundation products, we conducted semiotics research to analyze the make-up market in a culturally relevant context. We then conducted in-depth interviews with cosmetic and beauty professionals. These interviews helped us determine major trends and opportunities in the cosmetics industry. With our newfound knowledge of the market, we carried out focus groups to explore new marketing concepts for the foundation product. Further analysis of the foundation’s key features was done to choose an innovative yet relevant brand identity.
These discussions and studies helped Amway launch the product with a concise and consistent message to consumers. In addition, Amway can now apply our market research to future advertising campaigns.