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Stunning makeover for Missha

DKSH showed that with the right relaunch strategies, a business that once faced closure can bounce back bigger and better.

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Hong Kong

Missha is a beauty brand by Able C&C Co. Ltd, a South Korean manufacturer of beauty products and cosmetics.Since its establishment in 2000, the company has expanded into more than 33 markets, including China, Japan, USA, Europe, Middle East, South America and New Zealand.

With annual revenue exceeding USD 384 million, Missha is recognized as among the leading Korean cosmetic brands. Missha was introduced to the Hong Kong market in 2004 and its range includes the popular BB Cream and the Time Revolution series.

Missha is usually concerned about establishing business contracts with companies that handle too many brands. But, whenever we met, DKSH had always shown a strong interest and passion for the Missha brand. We are thankful and appreciative that the image of Missha has improved positively in a very short time in Hong Kong.

K.S. Lee, Export Team Leader of Able C&C Co. Ltd.

Challenge

After eleven years of market presence in Hong Kong, Missha suffered a sudden closure of its entire business operations at the start of 2015 due to the inability of the local brand owner at that time to carry on.

As all its 21 stores were forced to shut down, the brand’s standing among its customers was badly affected. In addition, most of the stores were battling high rental fees and severe competition from other Korean beauty and cosmetics brands present in the market.

Approach

After its closure, DKSH approached Missha with various innovative strategies to revive the brand and to relaunch its product lines in Hong Kong.

DKSH’s specialists recommended to take advantage of the growing popularity of Korean cosmetics and quickly rebuild consumers’ confidence in the brand. To restart Missha’s presence, DKSH embarked on a new strategy to grow sales through six standalone stores or counters and build on DKSH’s network of personal health stores, department stores and shopping malls.

It also proposed to list the brand exclusively in Mannings, one of the largest and most reputable personal health chain stores in Hong Kong. DKSH used its long-standing relationships with Mannings to develop better brand visibility and increased distribution through on-shelf coverage of Missha’s core products.

Result

Missha bought into DKSH’s approach and relaunched in Hong Kong in May 2015. The most important impact of the relaunch project was of course the regained confidence of local consumers in the brand; judging by the notable sales achieved within six months of its relaunch.

DKSH helped rejuvenate the brand’s distribution network; from its initial 21 stores before its closure, Missha had a total of 395 stores in operation by the end of April 2017.

Other key results included notable savings on business operations including lower listing fees and reduced retailer margins. Missha later went on to set up a counter in the sought-after Sogo Causeway Bay.

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