Interview: Johnson & Johnson to build Dr.Ci:Labo future on digitalisation and internationalisation

Sandrine Tesnière: Enhanced internationalisation and digitalisation will boost recovery for Dr.Ci:Labo.

“The pandemic has levelled the playing field for everyone and with that, there may be opportunities for smaller brands to capitalise on.” So says Johnson & Johnson Head of Marketing, Media and Digital, Travel Retail Sandrine Tesnière as she outlines the many opportunities for Japanese skincare brand Dr.Ci:Labo in the new travel retail landscape. “The question is: how can we pivot the travel retail business in this uncertain and fluid environment to be ahead of the game?”

The answer — according to Tesnière — lies in enhancing internationalisation and embracing digitalisation. She says, “Instead of reinventing the wheel, we elevated the brand with a new brand identity but staying true to the brand’s philosophy.”

In this interview, Tesnière elaborates on the brand’s Asia-focused approach to recovery, and the crucial role that travel retail plays. Last year, Dr.Ci:Labo launched its first travel retail activation with Singapore Changi Airport and The Shilla Duty Free. More recently, it partnered with China Duty Free Group to launch a successful 6.18 livestreaming event which resulted in a +50% Tmall sales increase compared to last year. It also secured listings in key Chinese domestic duty free locations and is expanding its travel retail presence in South Korea, Japan, China, Hong Kong and Singapore.

Despite the negative impact of the COVID-19 pandemic, Dr.Ci:Labo will not lose its momentum in the channel, says its owner. The brand is exhibiting at the upcoming Moodie Davitt Virtual Expo (#Virtual Stand BT-S1), where it will be revealing its revamped brand identity and ‘Kumiko Cross’ to industry partners for the first time. 

Commenting on the brand’s strategy Tesnière adds, “Our priority is to offer a high-level brand experience via digital platforms and content to engage with consumers through diverse touchpoints. We continue to expand our presence through omni-channel, with online-to-offline strategies, that complement our brand’s ambition and position ourselves for the upturn in the post-Covid-19 era.

 “As one of the leading derma-cosmetics brands, we believe Dr.Ci:Labo is here to stay for the long-run in travel retail and will be one of the key players shaping the travel retail space.”

Dr.Ci:Labo is leveraging its “Simple, Results, Science” philosophy to offer science-based products and elevated consumer experiences in the era of COVID-19 retail.
‘Simple, results, science’ are represented in Dr.Ci:Labo’s new ‘Kumiko Cross’ logo

What is the major focus for Johnson & Johnson and Dr.Ci:Labo at the Virtual Travel Retail Expo?

Johnson & Johnson’s derma-cosmetics skin health brand Dr.Ci:Labo has three major focuses at the Virtual Travel Retail Expo. First, we will be unveiling Dr.Ci:Labo’s modern brand identity and second we will announce Dr.Ci:Labo’s first-ever Global Brand Ambassador, Japanese actress Chiaki Kuriyama. Last but not least, we will be unveiling the latest product innovation from Dr.Ci:Labo and our pore care range, Labo Labo.

Our Global Brand Ambassador Ms. Kuriyama started her modelling career at five years old. She starred in popular Japanese films such as ‘Battle Royale’ and Kill Bill Vol.1. Her healthy and radiant beauty, dignified strength and colourful charm perfectly embodies the Dr.Ci:Labo brand.

We are excited to unveil our revamped brand identity incorporating Dr.Ci:Labo’s philosophy of “Simple, Results, Science” with its beauty offerings. Delegates at the Virtual Travel Retail Expo will — for the first time — see a modern interpretation of Dr.Ci:Labo’s Kumiko Cross. The Kumiko Cross has been a symbol of the brand since its founding 21 years ago. The refreshed identity sharpens our brand mission of helping everyone achieve a beautiful appearance and a radiant glow from within.

What new product innovations will you be launching? 

In terms of new products, we will be introducing Labo Labo Essence Lotion and Aqua Collagen Gel Enrich Lift EX.

The Labo Labo Essence Lotion helps tighten pores on the inside by improving elasticity as well as delivering surface tightening. It contains 2% PHA, the second generation of AHA, which has superior pore unclogging and tightening efficacy but is milder in its approach. It is also formulated with an antioxidant herbal blend which boosts skin metabolism from the inside, helping to control sebum secretion.

The Aqua Collagen Gel Enrich Lift EX is the latest formula from our best-selling moisturising line. It’s inspired by the clinical skin-tightening therapy, Ulthera and helps to tighten, firm and moisturise with a newly added blend. The blend is a first in Japan and combines fermented collaged to deliver high quality collagen to skin; Skin Up CL to slow down collagen breakdown, and niacinamide to help enhance skin turnover.

“How can we pivot the travel retail business in this uncertain and fluid environment to be ahead of the game?” is the question that Tesnière aims to answer as she outlines Dr.Ci:Labo’s recovery strategy

What are your major targets in terms of geography, channel and retailer type as you seek to boost recovery?

We want to internationalise Dr.Ci:Labo so that many more consumers can experience the power of the brand’s science-based results. We are focused on the Asia Pacific region to capture the strong demand from Asian beauty shoppers, particularly Chinese and Japanese consumers. From a travel retail standpoint, we are committed to building our presence at major traveller hubs such as South Korea, Japan, China, Hong Kong and Singapore.

We are increasingly focused on the China duty free market. In China, we have gained listings with China Duty Free Group at Haitang Bay (online) and Beijing Capital and Daxing airports. More recently we’ve gained listings with CNSC at downtown duty free locations.

From a channel standpoint, our priority is to offer a high-level brand experience via digital platforms and content to engage with consumers through diverse touchpoints. We continue to expand our presence through omni-channel, with online-to-offline strategies, that complement our brand’s ambition and position ourselves for the upturn in the post-Covid-19 era.

Dr.Ci:Labo is a Silver Partner of The Moodie Davitt Virtual Travel Retail Expo where its debuting its revamped brand identity to the travel retail industry

Johnson & Johnson acquired Dr.Ci:Labo parent company Ci:z Holdings last year with the aim of accelerating the brand’s travel retail business in Asia. How have you driven consumer momentum in Asia Pacific travel retail over the last year? 

Last year, Dr.Ci:Labo executed its first-ever travel retail activation at Singapore Changi Airport Terminal 4, in partnership with The Shilla Duty Free. The month-long Labo Labo pop-up invited travellers in transit to undergo a customised skin diagnosis and create their own super skin regimen. The pop-up was a great way to interact with travellers through engagement activities such as gifts-with-purchase and an interactive photo booth.

On the retail front, we have upgraded our existing travel retail locations with a brand new look-and-feel. We are also offering our loyal consumers – who are part of the Ci:Movement – with regular promotions and exclusive deals.

Our partnership with China Duty Free Group at Haitang Bay has helped to heighten consumer engagement online, as evidenced by our first live-streaming event with CDFG. This activity produced positive results and reinforced the need to continually engage consumers across diverse platforms.

We saw very positive results following our recent 6.18 and Super Gathering Day connected commerce campaigns in China. For Super Gathering Day, Dr.Ci:Labo invited well-known dermatologists to join in a conversation about “skin rationalism” with KOLs, economists, and consumers. The social trend of science and rationalism has been surging during the COVID-19 pandemic. The results were amazing. Dr.Ci:Labo’s TMall business results during the event grew +50% compared to last year’s.

As we expand in the area of personalised skincare, we will concentrate on elevating personalised consumer experiences at our counters — offering a similar experience to what you would have in a Japan domestic Dr.Ci:Labo store.

Last year, Dr.Ci:Labo hosted its very first travel retail Labo Labo activation in Singapore Changi Airport Terminal 4 with The Shilla Duty Free
The brand has been increasing focus in China’s domestic duty free market. It recently hosted a livestreaming event in partnership with CDFG and key KOLs, economists, and consumers.

What have been the biggest changes implemented since the acquisition?

Dr.Ci:Labo is a well-known and respected brand in the Japanese derma-cosmetics industry. Instead of reinventing the wheel, we elevated the brand with a new brand identity but staying true to the brand’s philosophy. The brand’s transformation is gradually being rolled out in 2020-2021.

Digitalisation of Dr.Ci:Labo is one area where we invested heavily from the get-go. We have made great leaps forward in terms of leveraging digital, live-streaming and KOLs in countries such as China and Japan, and more recently in Travel Retail. With the goal of highlighting Dr.Ci:Labo’s science-based formulations, backed by dermatologists’ recommendations, we held live-streaming events in China and Japan in which dermatologists and beauty KOLs demonstrated the products’ mode of action and efficacy. These types of events drive huge engagement with beauty consumers, and we will continue to focus in this area in order to build our derma-credentials.

Skincare continues to be one of the most dynamic and resilient categories in the channel. How do you plan to differentiate yourself from your competitors in this category?

Dr.Ci:Labo is first and foremost a skin health brand, and the key differentiator is to get troubled skin healthy from inside-out. Leveraging on years of scientific research and development, our founder and practicing dermatologist, Dr. Yoshinori Shirono developed medical-grade skin health products suitable for everyday use.

Dr. Shirono uses the most progressive technology and ingredients in the dermatology field, and with his broad dermatologists and R&D network, he always brings the most advanced solutions to his products.

An Asia-first approach: Dr.Ci:Labo opened new stores with China Duty Free Group at Haitang Bay (online), CNSC and in Beijing Capital and Daxing Airports. It is also expanding its travel retail footprint in South Korea, Japan, China, Hong and Singapore.

How do you view the continuing impact of COVID-19 on the wider industry?

There is no doubt that COVID-19 has impacted many brands, both big and small, across all categories in the travel retail industry. The current state of the global economy has also altered consumers’ spending habits and priorities.

The pandemic has levelled the playing field for everyone and with that, there may be opportunities for smaller brands to capitalise on. The question is: how can we pivot the travel retail business in this uncertain and fluid environment to be ahead of the game?

COVID-19 has changed consumers’ purchasing behaviours. The pandemic has also changed consumers’ attitudes towards and expectations of skincare – meaning that the beauty travel retail product offer will need to adapt. We may see a rise in overall health and wellness products with potential for holistic beauty and a heightened interest in product efficacy and superiority.

Travel retail consumers will become more astute in their skincare choices while looking for the experience and a sense of discovery, where they are likely to buy a product to trial for the first time when they shop. With this in mind, travel retailers need to provide a diverse product portfolio that includes space for smaller, sometimes more local brands.

As one of the leading derma-cosmetics brands, we believe Dr.Ci:Labo is here to stay for the long-run in travel retail and will be one of the key players shaping the travel retail space.

Virtual becomes reality for Dr.Ci:Labo 

Dr.Ci:Labo  is a Silver Partner at the inaugural Moodie Davitt Virtual Travel Retail Expo.

The unique 5-day ‘live’ event, followed by a 30-day showcase, begins on 12 October, just after the conclusion of the Chinese Golden Week holidays. It features a star-studded series of events across the five days, including a Symposium, category workshops and a new consumer research initiative.

Registration is free for buyers, exhibitors and preferred media partners. (Click here to register)

 

 

 

 

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