History of Kiehl's
Started as an old-world apothecary in New York, 1851, Kiehl’s has celebrated its 160 years birthday with world-wide fans in 2011. Being famous of its unique formulas, Kiehl’s has invented a couple of star- products such as Kiehl’s Musk Oil and Blue Stringent Lotion over generations. In 1961, the son of Kiehl’s founder, Aaron Morse took over its family business and introduced new product lines for men. In 2000, the L'Oréal Group acquired Kiehl’s and marketed it as a high-end skin care product under its luxury product portfolio. Today, Kiehl’s can be found over 38 countries and is intensively engaged in philanthropic activities.
The Facial Care Market
In 2010, the total market revenue of the global facial care generated $50.1 billion and the market value reached $50,053 million with the average annual growth rate of 4.6% from 2006-2010. In terms of geographical segmentations, Asia-Pacific accounted for the largest share of total market value with 46%. In terms of product category segmentations, anti-agers and creams and gels are the most popular products which account for 24.9% and 11.6% respectively. Three major players in the facial care market are L’Oreal, Unilever and Beiersdorf AG which account for 28.9% of the total market share. The leading player in the market, L'Oréal generates a 13.6% of the total market value.
Kiehl's Business Strategy
"Making for better citizens, better firms and better communities."
The promise from Kiehl's is making for better citizens, better firms and better communities. Its products are positioned in the category of high-end cosmetics products but falls at the lower end of high-end range. Kiehl’s guarantees the quality of its products. Its return policy for uneffective products within 28 days made the quality of the products very prominent. The formulas for its products are unique and can be dated back to as far as 1850s. It uses natural ingredients and pursues constant innovative research and development. Most of its products are unisex. But there is one section in its flagship stores dedicated to males. Around 30-40% of its customers are males which is relatively high compared to its competitors.
The promise from Kiehl's is making for better citizens, better firms and better communities. Its products are positioned in the category of high-end cosmetics products but falls at the lower end of high-end range. Kiehl’s guarantees the quality of its products. Its return policy for uneffective products within 28 days made the quality of the products very prominent. The formulas for its products are unique and can be dated back to as far as 1850s. It uses natural ingredients and pursues constant innovative research and development. Most of its products are unisex. But there is one section in its flagship stores dedicated to males. Around 30-40% of its customers are males which is relatively high compared to its competitors.