LimeCrime, a successful makeup company that produces wacky and unique color palettes for lip gloss, hair dye, etc., is facing recent issues expanding their market into China. LimeCrime faces very unique obstacles while expanding their sales in this country.
For example, there is a mandate in China that cosmetics that are sold via wholesale are required to be tested on animals. However, Lime Crime’s uniqueness in their makeup line is that they are vegan and they are cruelty-free which means they do not test on animals. This means LimeCrime had to make sure that they shipped their products directly to China from the United States. Since they can’t make the product in China, they deal with complications in they also deal with issues of transportation, taxes, international returns and foreign language barriers.
Additionally, since they are made in the US, there has been a huge market of counterfeits; around one million units of counterfeit lip topper were sold in marketplaces around China last year. To fix this, LimeCrime proposed to partner with Revolve, an e-commerce and fashion business soon to move into beauty products. The company has created their own seed audience to urge people to visit Revolve’s site so more of their products can get acknowledged, sold, and to assure consumers and let them know that Revolve’s website was not selling counterfeit products. Additionally, people who were already fans of the company were urged to spread the word about their partnership with Revolve.
Lastly, they decided to not use first-tier influencers to promote the product but more second-tier or lower-tier influential people that were truly passionate about the beauty brand and would promote the products not because of money but because they sincerely think the brand is worth buying.
Overall, expanding the company into China’s market has been difficult, tricky and offered many obstacles in the long run, however, the leaders of the company have done their best and seem to have managed to work around the major obstacles to make their beautiful and colorful products a reality in China. With a company this successful, it has potential to work.