Rodan and Fields Japan – Skincare Business Model. Beauty Dermatology Skincare Market Entry in Japan – Dermatologist-developed US skincare Dermatologist-developed U.S. skincare brand Rodan + Fields, LLC has announced plans to introduce new product formulations exclusively for the Japanese market in Japan in 2020. This is the company’s expansion into the Asian marketplace.
Dr Katie Rodan, Founder; Dr Kathy Fields, Founder; Diane Dietz, President and CEO; Amnon Rodan, Chairman; Dimitri Haloulos, CGO; Deanna Jurgens, Chief Global Sales Officer; Chris Newman, CFO; Timothy Falla, PhD, Chief Scientific Officer; Steve Dee, CIO; Jennifer Chaloemtiaran, CFO;
Major products: Rodan and Fields skincare products
Spotless for Teen Acne, PORE CLEANSING MD SYSTEM, REVERSE TARGETED DARK SPOT CORRECTOR
CommentsPrivate-Owned Rodan + Fields does not reveal sales estimates, but 2019 estimated sales amounted to $1.4 billion. Rodan and Fields sell skincare lotions, serums and accessories in the United States, Canada and Australia. Pre-COVID-19, the company expected to reach Japan in the summer of 2020.
According to the brand, the new Deep Pore Cleansing MD system allows users to remove blackheads and debris from their pores to expose a cleaner, healthier and more radiant complexion after only one use. The $260 tool is intended for use with Rodan and Fields Pore Prep Solution, including glycerine, salicylic acid and lactic acid. Lifting oils, dead skin cells and impurities together to reduce breakouts and a reduction in pore size.
When it enters Japan, Rodan + Fields will offer products designed exclusively for the Japanese market.
“We look forwards to the opportunity to reach this vital market and introduce our creative, regimen-based skincare brand and business proposal to Japan,” said Diane Dietz, President and CEO. “Our brand history is about giving women life-changing skincare items of the highest quality and making Japan a logical next step as we broaden the global reach of Rodan + Fields.”
Rodan and Fields Japan Product Development.
The company says that it has spent five years developing skincare regimens and formulations adapted specifically to the market. The formulas have undergone clinical testing in Japan to ensure their effectiveness in this market.
“The best skin in your life has no borders – as dermatologists, we understand the universal importance of healthy, beautiful skin and believe that our innovative solutions designed expressly for this market. The Rodan and Fields Pro are a strong fit for Japan, one of the world’s most sophisticated skincare markets,” said Dr Katie Rodan, co-founder of Rodan + Fields, which was ranked No. 17 in Happi’s most recent Top 5O Study.
“After five years of intense research and product testing in Japan, we are introducing life-changing skincare and trust to the discerning Japanese market,” said Dr Kathy Fields, co-founder of Rodan and Fields Japan.
The company’s non-profit Prescription for Change Foundation is partnering with Kids’ Door, a group dedicated to helping young people in Japan succeed in school and life. This effort will expand Kids’ Door programs to reach 3,000 more high school students with educational assistance, counselling and basic nutrition to help them graduate from high school and enter university. It will also help those who have dropped out of school to achieve a high school equivalency and find employment. The grant will target young people living in Adachi ward, an underserved neighbourhood in Tokyo.
It is important that when you are direct-Selling in Japan – to be successful. It is a requirement that you can use SNS and Marketing to build a community. This secret will foster trust in the new Market and allow you to start with a bang and not burn out quickly. The reality is stark – the big network marketing companies dominate the competitive landscape, with hundreds of Brands creating much noise but gaining little substantive market share. Intuitively, this makes little sense:
Japan represents the third-largest skincare market as of 2018 and the 5th largest direct selling market. Japanese women are more skincare focused than women in other markets. This aligns with Rodan and Fields business philosophy.
Japan boasts one of the highest MLM participation ratios and is highly profitable with very good margins. There are opportunities for those who want to become successful by using their own Personal Branding and marketing to build a following SNS.
Rodan + Fields did for a Japan market entry strategy because it chooses not to mimic success in other established markets in the USA, Canada, and Australia.
That’s like trying to build an Ice Hotel in Central Australia: totally inappropriate and likely to vanish into the background. Rodan + Fields – took time, actually 5 years, to understand what the winning companies have done over many years to be successful, and then adapted the Market Entry plan to reflect what they have learned.
Rodan + Fields learned in the past 5 years that Japanese Woman + Men are willing to purchase the best skincare they can afford; they look for efficacious solutions and love to work with regimens. Rodan + Fields use Social Network Services to grow communities and sales.
Japanese Skincare Products SNS Marketing
“Beauty dermatology” brands are a new market segment in Japan, which, combined with the growth of women joining the workforce, makes this a new market a top global opportunity.
Or … understand, and then do something completely the opposite yet complementary.
Japan is one of the world’s toughest regulatory environments, and let’s not even talk about the language and cultural hurdles. While Distributor leaders from successful markets are welcome assets in the build phase, the company needs to be out in front leading the way and controlling both trajectory and velocity.
Creating the right ecosystem to develop a powerful and stable Brand from the onset. The Japan Skincare Programs were designed to meet the unique needs of the Japanese consumer. Some of the top differences for this Country are
5 steps, Wash, Lotion, Essence, SPF, Moisturizer
“Lotion” has additional hydrating ingredients
“Essence”, unique function based on the client’s skincare Program being used.
Additional hydration in every step has been formulated to meet the needs of the Japanese consumer.
Rodan + Fields has seen so many companies that spend way too much time and money trying to attract Distributor leaders away from other companies. This strategy is fundamentally flawed. Here are just some reasons why:
I prefer to work with freelancers who already use Social Networking Service to build social relationships with other people who share similar personal or career interests, activities, backgrounds, or real-life connections.
The best Skincare Products are the key to success. To ensure growth, we needed to offer the Japanese market something new and different, and they need to have a real story that Distributors can share with prospects and customers.
Skincare Sectors value and Growth 2019
We have investigated that Japanese consumers are incredible fans of detail. The formulations have to stand up to price and efficacy competition from some of the world’s sharpest FMCG companies.
5 years of market research to understand customer needs rather than shoe-horn people into your product portfolio.
This is more than “wonder” ingredients either, by the way. I see the growth in Japan is to have ‘sponsoring’ products that generate brand loyalty and excitement, ‘consumables’ that create repeatable volume in legs, and ‘basket fillers’ that have some utility and get leaders over qualification hurdles.
Generally, aim for a 30:60:10 balance.
How to Hydrate your Dry Skin
Realizing that you are up against some pretty well-articulated brands in Japan. It would help if you were interesting and recognizable, for sure. One of the distinguishing features of this Brand and one of the companies secrets is that the Products they have and the market segments they are entering are emerging and growing markets.
With the Venture Capitalist TPG behind them, Rodan + Fields focuses on the Independent Consultants compensation plans, recognition, and virtual training programs.
Buzz is important, but passion is king. This leads me to …
The key to a successful Market Entry and Growth for Rodan and Fields Japan
Actually, it’s relatively straightforward:
Key focus on the major urban centres – in order, Tokyo, Osaka, and Fukuoka. The company will naturally spread to other areas, but these 3 cities generally account for more than 70% of Japan’s total Direct Selling volume. Anywhere else is “interesting” but not compelling. Utilizing SNS | Marketing to build a strong community who trust these Skincare Counselors and free Skincare counselling.
Remain focused on Coaching; the key approach is that all who join are potential leaders. Coaching relies on open communication in both directions. The most effective leaders guide their team in their work and then get out of the way. I put trust in my team to make smart decisions. My approach is: identify the right people, Coach them on how to be leaders, and engage and reward them in ‘graduating’ team members into these elite training opportunities.
Coaching individuals to aim for Recognition Programs. With clearly laid out entitlement frameworks so that there’s no “creep” down the track. Enabling the team’s consistent success is more profitable than rewarding one-time ‘touches’ and generates better team alignment and morale. Program Eligibility, Qualification periods, and how to earn.
Coaching is important to involve multiple generations of leadership (top leaders and emerging leaders) in strategy and goal setting. Relying on my senior people is more about history than legacy, and not being closely connected with younger generations means you will miss trends and brand extension chances.
I am taking the time to understand that Japanese people place equal emphasis on financial and social rewards and that advocacy is much more powerful than satisfaction. It’s not just about money in this market.
Audrey Anderson LinkedIn – Growth Strategy If you would like to learn more, please email me at audrey@audreyandersonworld.com.
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