Abstract

The case discusses the way a 20-year-old Made in China brand – KANS, owned by China-based multi-brand cosmetics company, Shanghai Chicmax Cosmetic Co., Ltd. (Chicmax), had revitalized itself through brand repositioning, emphasis on R&D, creative marketing, and channel innovation. The case starts by examining the history of Chicmax and documents KANS’s journey to becoming a leading domestic cosmetics brand. The case then describes how Chicmax repositioned KANS in the Chinese cosmetics market after it became aware of certain trends sweeping through the industry. The case gives an insight into the company’s R&D processes and key innovations that played a major role in building its ability to transform itself. Details are given about the creative marketing strategies that leveraged the Guochao trend, which enabled KANS to resonate deeply with younger Chinese consumers. How Chicmax leveraged e-commerce platforms and live-streaming channels such as Douyin to sell KANS’s merchandise is also mentioned. Eventually, KANS managed to gain an edge over not only its domestic rivals but also international cosmetic brands. Nonetheless, Chicmax faced challenges, including rising competitive pressure, increasing marketing costs, and the growing risk caused by high R&D investments. Can Yixiong Lyu (Yixiong), CEO of Chicmax make KANS emerge as the flag bearer of successful Made in China brands and a market leader in the Chinese cosmetic industry?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the brand repositioning strategy of a well-established brand.
• Examine the innovation strategy of a brand seeking to revitalize itself.
• Understand the role of patriotic marketing in changing customer perceptions of a brand.
• Investigate how distribution channel innovation built a competitive advantage.
• Design strategies to overcome competitive challenges

Keywords

Brand Repositioning; Innovation Strategy; Emerging Markets; Distribution Channel innovation; Social Media; Patriotic Marketing; Made in China; Market Challenger; Segmentation; Targeting; Competitive Strategy; New Product Development; Product Differentiation; Innovation Matrix; Guochao Trend