Executive Summary

Coresight Research interviewed Moroccanoil CEO JuE Wong in May 2018 to learn about the company’s experience selling its oil-infused, natural beauty products to consumers in China. Moroccanoil is a $62.6 million company based in Los Angeles, California, that sells hair and skincare products such as shampoos, lotions, cleansing bars and conditioners. The company began selling in China in 2014. Wong, who joined the company in October 2017, shared insights and lessons for foreign businesses seeking to sell in China.

• Moroccanoil generated brand sales of $15 million during the 2016 11.11 Global Shopping Festival. Alibaba hosts the annual 24-hour online shopping event in China every November 11 (“Singles’ Day” or “11.11”). In 2017, Moroccanoil’s brand sales reached $34 million during the festival. This year, the company is looking to generate 11.11 shopping festival revenues of $102 million, triple its 2017 total.
• The company uses gift packages and promotional kits during the festival to drive the value of its hero products. Shoppers who purchase these items receive other products and, so, perceive the hero product to be free.
• Moroccanoil uses key opinion leaders (KOLs, also known as brand influencers) to advocate for the brand’s exotic appeal. CEO JuE Wong recommends that companies find KOLs who truly love their products and brand and who share the same values as the brand.
• Wong recommends that brands seeking to do business in China work with a local social media partner that understands the Chinese consumer’s psyche in order to gain information that will help them make better decisions about content and delivery.