Introduction: In this exclusive interview with The Moodie Davitt Report Founder & Chairman Martin Moodie, Foreo Global Travel Retail Director Gary Leong discusses the company’s successful expansion into new markets including Hainan, Malaysia and Vietnam, as well as its sustained fight against counterfeiting.
We also take a closer look at Foreo’s partnership with social media influencer GoldilocksX, which played a key role in increasing brand awareness and driving sales in the Chinese market.
Martin Moodie: Gary, it’s been a heck of a year for Foreo in global travel retail, both in terms of visibility and sales. How would you rate performance?
Gary Leong: In 2022, we recorded a total of 16 new POS/listings for Foreo, despite an uneven opening of key markets in Asia. This was mainly due to continued restrictions in Hong Kong and People’s Republic of China (PRC), and the absence of key outbound PRC pax. Nonetheless, in the airport channel, new Foreo POS were opened in Incheon, South Korea; Phnom Penh and Siem Reap, Cambodia; Langkawi, Malaysia; and Philadelphia in the US.
For downtown locations, Foreo continued its aggressive expansion into Hainan, with the new Haikou CDF Mall and Wanning downtown POS added in 2022. Foreo also gained one new POS each in Macau and Zhuhai, while Melbourne saw Foreo’s first downtown presence in Australia.
Another extremely proud achievement for us was Foreo’s increased presence in the inflight and cruise sectors. We gained new listings with Virgin Atlantic and Air Rwanda, while for cruise liners, we expanded our onboard presence with new MSC liners, including MSC Virtuosa and MSC World Europa.
Researching this interview, I noticed there were 33 headline stories on Foreo alone on our website in 2022 alone and a whole lot more since. What were the standouts in terms of launches, campaigns, activations and markets?
2022 was definitely a comeback year for Foreo, and for travel retail as a whole. In July, we participated in the Hainan Expo 2022. Both Foreo and FAQ teamed up with GDF Plaza and Shenzhen Duty Free to showcase our lines at the Expo. We also had a strong presence at China National Service Corporation (CNSC), Hainan Tourism Duty Free Shopping Complex (HTDF) and Zhuhai Duty Free pavilions, enabling us to increase our brand presence and awareness with multiple partners.
During the recent Hainan Expo 2023 in April, we showcased our latest travel retail range while underlining a commitment to “make Swedish Beauty accessible for all.” This year marked the third consecutive participation of Foreo and FAQ at the Expo in partnership with HTDF. We also welcomed a new retailer partnership with Wangfujing Duty Free Group.
Also in 2022, we began re-exploring partnerships that had been left off due to the effects of the pandemic, and one of those partnerships that was officially inked was with Eraman at Kuala Lumpur International Airport, Malaysia. As consumers began to return to southeast Asia in a flurry, seeking pristine beaches and incredible food, we felt that it was time to expand our offerings to the Malaysian market. With Malaysia’s Ministry of Tourism offering promotional discounts and rebates to increase tourism until 2027, such support would only bolster our presence in the country.
In August last year, we teamed up with IPP Travel Retail to open a new space devoted to Foreo at Ho Chi Minh City Tan Son Nhat International Airport. The store was part of IPP Travel Retail’s refurbishment in Terminal 1, branded TR Galleria. We began partnering with them in 2021, and through the partnership, we have inked out plans to open a total of 29 counters – across five domestic outlets and 24 airports in Vietnam.
Fighting the fakes
Foreo also scored big in the war against counterfeiting. We received favourable judgement in the first instance of litigation against K.Skin, in which the Hangzhou Yuhang District People’s Court stated that the defendants were liable to indemnify Foreo for CNY4.3 million (US$651,000) in economic losses. The same court also ruled in our favour in March 2021, scoring us another CNY900,000 (US$136,000) in compensation, while the Zhejiang High People’s Court ordered defendants to pay us CNY500,000 (US$75,000) in economic losses.
We have worked hard to ensure that the marketplace is a safe place for brands and products to thrive, and stamping out counterfeiters who produce unverified products is a method for us to ensure the good name of the brand remains intact and untarnished.
To tackle counterfeits on websites, we signed a memorandum of understanding with MarqVision, an entity which helps identify and remove counterfeits from 1,500 online marketplaces worldwide. By tackling the issue with a two-pronged approach, we are confident that we will be able to effectively demonstrate a solid stance against counterfeits.
Realising that social media plays a massive role in making or breaking a brand, we teamed up with GoldilocksX for a Hainan tourism campaign. At the time, she had 182,900 followers on Little Red Book, and we knew instantly that this would be an incredible opportunity to take viewers on an immersive tour of each Foreo and FAQ store in Hainan.
It was also crucial to us that the video highlighted Hainan as a premium shopping and travel destination. As our stores are part of the Hainan ecosystem, this approach allowed us to assist with increasing tourism in the region, and directly associated the Foreo and FAQ brand names with Hainan. The video GoldilocksX produced garnered over 869,000 engagements.
However, the most notable achievement of the year was the return to TFWA Cannes, which subsequently was also the launch of FAQ in the European market. After a two-year hiatus, we unveiled the LUNA 4 range, the highly anticipated and long-awaited revamp to the range that gave us our global standing. Choosing to not only focus on upgrading the LUNA device, we also launched the LUNA 4 body, a T-sonic massaging body brush that gently exfoliates the skin.
The LUNA 4 was also a major win for us – the 2-in-1 facial cleansing and firming device uses infrared technology, LED-heat, and micro-current massage for effective cleansing and anti-ageing. Our presence at TFWA Cannes was a momentous occasion, as it showed how we have significantly expanded in travel retail over the past few years, and continued our legacy of success, paired with the launch of FAQ in the European market.
2023 started with the sudden opening up of China, good news for travel retail across the Mainland, Hong Kong, Macau, Hainan and Taiwan, but also for international travel retailers serving the Chinese traveller. How are you seeing prospects for 2023 in terms of 1) the overall travel retail market and 2) the Chinese component home and abroad?
Travel retail went through three years of being grounded; surviving during a pandemic when the business is dependent on travel was a groundbreaking feat.
Global travel retail is definitely beginning to regain its dominance, and will recover in stages as people slowly regain the confidence to travel again. Airports have opened and have sene the need to refurbish – ecommerce and technology has grown tremendously during the period of the border restrictions. So airports and retailers need to adapt to new shopping habits and customers.
Prior to the crisis, 80% of the consumption of the entire global travel retail market was contributed by Chinese tourists. Hence, China’s opening is proving a significant boost to the channel. On recent trips to Hong Kong, Macau and Thailand, I have seen not only the return of the Chinese consumer but also many passengers from Southeast Asia.
The overseas travel retail market and China’s exit ports (airports, railways, border stores, flights and cruise ships) will see a great improvement with China’s opening of borders.
However, since the borders just opened in December, it will take time for many GTR-related stores to be rebuilt and updated, including aspects of brand entry, re-recruitment and training etc. It will also take time for outbound flights from China to fully resume their routes and frequencies. We expect that the GTR business will significantly improve in the second half.
I talked recently with company Founder Filip Sedic about the Swedish Beauty concept. What can you tell us about your plans in terms of the sector and related skincare lines?
As we have carved out a unique and solid position in beauty, perfume and cosmetics in travel retail, we have branched out with a fresh approach. Our new 3½ step Swedish Beauty Routine brings together four of our iconic products, designed to be used in harmony.
In a matter of six minutes, one can cleanse, lift, hydrate and smile in the convenience of their home, office, and even during travel. With consumers looking to find convenience and ease in their beauty routines, we seek to accommodate the customer – instead of the customer accommodating the product.
With this approach, we can ensure that Foreo is top of mind when it comes to skincare and beauty, and firmly engrain ourselves as the first choice of sophisticated and effective self-care.
Planning for this campaign began shortly after TFWA Cannes 2022, and the roll-out of the Swedish Beauty campaign kicked off in March this year. Our skincare line will further complement the use of any of our devices, which are meant to assist creams and serums penetrate deeper into the skin, as compared to using your hands. We are rolling out the campaign in Korea, Hong Kong, Macau, China (Hainan), and are also looking into the markets in Philippines and Malaysia.
The essence of every brand remains its growth – and in order to cater to more consumers, we are focusing on expanding our skincare portfolio. At the moment that includes our UFO masks, Serum Sérum Serum and Micro Foam Cleanser. However, we are always seeking new ways and products to enhance our consumers’ lifestyles, with added skincare benefits.
Additions to our skincare line will include face and eye products, slated to be launched in the second half of 2023. They are designed specifically to be used alongside Foreo’s range of devices in order to maximise the benefits from our skin-tech treatments.
As a brand that places the highest emphasis on sustainability, our skincare products are cruelty-free, vegan dermatologically tested, suitable for all skin types. The new additions to our range will be the perfect way to finish off an effortless Swedish skincare routine.
How do you assess performance and success at Foreo?
We could of course take the normal route and assess our performance by numbers and figures, and it would be untrue to say otherwise. However, success is not solely defined as to whether the ledgers end up in blue or red at the end of year – instead, it is a multi-dimensional concept.
So how does one of the biggest skincare and beauty brands in the world measure success? After setting the standards for breaking glass ceilings in the industry, what is the cornerstone to which we measure ourselves?
The answer is that at Foreo, we pride ourselves on the satisfaction of the consumer, and this has become the main pillar as to which we define the brand’s goals, vision, mission. It also plays a huge role in developing new products and campaigns. We consistently research and develop new technologies with the Foreo Institute – designed to work in tandem with the brand to always strive towards providing customers with innovation and effectiveness.
At the end of the day, it all comes back to the customer. Is the customer happy? Do they enjoy the products? Would they recommend their new purchase to their friends and family? Would they happily post about it on social media?
In a world with no borders, success depends heavily on the voice of the consumer, and we do our best to amplify it while taking feedback that we have received to improve further. We choose to define our success by the positive comments on social media, the word-of-mouth recommendations from our employees and customers, and the consistent and unwavering support that we have received throughout the years from a loyal legion of fans.
We pride ourselves on having built a sustainable brand, one that remains relevant to consumers despite changing trends and lifestyles. Adapting this brand to communication channels that the customer associates with has been interesting for us to navigate. We have managed to build a community that revolves around self-care and love, all designed to elevate the lives of the consumer while fitting in seamlessly and effortlessly into their everyday routines.
{Click on the YouTube icon to see Gary Leong in conversation with Martin Moodie at the 2022 TFWA World Exhibition in Cannes}
We touched on this in our Cannes film interview (shown above) but what really makes the company tick? If you had to distil it, what’s the essence of the Foreo magic?
Foreo in its essence is our founder – Filip Sedic. Filip shoulders the task of personally explaining new inventions and products through presentations hosted by himself, towards all employees in the company. Watching him present is inspiring – you can see that he is so passionate about innovations, beauty and technology, essentially pushing the boundaries of what it means to be a beauty brand in the 21st century.
It’s rare for a founder to be so involved in the day-to-day workings of the company, but Filip prides himself in educating our employees on the essence of our products, allowing us to all become ambassadors for the brand.
Alongside that comes the open-door concept that Foreo adopts – employees are welcome to speak out and knock on management’s door for clarification, or to even pitch their own idea for a new stellar product. The management reacts and implements soonest – we value our employees and their ideas, and it is refreshing to see our people want to contribute even more to the success of the company.
Any concluding message to your retailer audience Gary?
With the rise of interest in self-care over the past three years, customers are expecting more from at-home beauty products.
Foreo, as the leader in this fast-paced beauty industry, always strives to meet customers’ needs and offers a new standard of beauty and wellbeing solutions. We are dedicated to providing a holistic experience that is not only efficient, but functional, allowing customers the opportunity to care for themselves at the highest level in the comfort of their own home or on-the-go.
We are fortunate enough to be surrounded by colleagues and friends who consistently raise the bar and inspire each other to push the boundaries when it comes to success. As we continue to forage into uncharted territory with the rise of new technologies, it is important that we remain in solidarity with the cause – providing our customers with the best results and a top-class shopping experience. ✈
