In 1976, the death of Mao Zedong was followed by the emergence of Deng Xiaoping in China. His emergence was a historic event that changed the course of the modern history of China. The change in the political leadership heralded the eradication of ideological conflicts and the opening of a new era of pragmatism. When the tightly closed China market opened, companies around the world started rushing into China, a country with optimal conditions for building manufacturing facilities as well as for retail market. The world-famous cosmetic brands also entered China beginning from the 1980s.

In the late 1980s, our founder Suh Sungwhan (pen name Jangwon) already realized that China was undergoing massive transformation with full of immersive potential. He constantly told executives, "It will open up the soon, so be well prepared."
Although Korea-China diplomatic relations were not even normalized, Suh Sungwhan sent some employees to Hong Kong and Taiwan to make them learn more about the China market.

As he predicted, Korea soon established diplomatic relations with China and now that, Korean companies could make inroad into China. But, China still remained difficult to overcome. Regulatory barriers and tariffs for cosmetics stood higher than those imposed on other products. The only way to truly make inroads into China, building a local production facility was necessary.

Global cosmetic companies flocked to Shanghai, the capital of Chinese economy, through joint ventures or by building local factories. Pacific was also preparing to create a joint venture following extensive market research. Suh Sungwhan had a different idea, though. "We should base in Fengtian, not Shanghai."

Fengtian is the old name of today's Shenyang. Suh Sungwhan had the inexorable days of his military during the Japanese occupation fresh in his memories. Back then, he had to go through an arduous march that passed Shnuiju and Shenyang. However, there was more than memory to his choice.

Big cities like Beijing and Shanghai were already saturated by global companies like Shiseido and Christian Dior, and it was very likely the company would have difficulties even if the company landed there. By contrast, Shenyang, the hub of Three Northeastern Provinces, was not in global competitors' sights and thus offered a better chance of making a successful market entry. Shenyang seemed to be the best place to learn more about the local market before taking on the megacities of China like Beijing or Shanghai.

In other words, his strategy was to take a purposeful detour in order to accumulate sufficient market experience in the outer part of China before making inroads into the center. This approach hit the bull's-eye. While the firms that started in Shanghai struggled significantly, Pacific was able to build a deeper and broader understanding of China.

After deciding to open business in Shenyang, Pacific sought a partner for a joint venture. Finally in December 1993, Pacific Baoyan Cosmetics Corporation Limited was founded with its partner, Baoyan Corporation.

Supported by its stable Shenyang base, Pacific was able to expand its market presence gradually, establishing a subsidiary in Dalian in 1995 and in Changchun and Harbin in 1996. The company moved slowly but thoughtfully in China, adopting a stepping stone approach in favor to casting off in unchartered waters. There could have been a faster course, but it might have led to retracements and missteps. It didn't take any false short cuts, either.

There is a Chinese saying "Niú bù qiān lǐ (牛步千里)," which means 'a thousand miles in ambling gaits as a cow'. It sounds like speaking about going a thousand miles at a snail's speed, or about having to take it easy when setting out on a long thousand-mile journey. But, that was exactly what Suh and Pacific had done through until the 1990s. Pacific were not blind followers of the latest market trends, but conscientious and far-sighted enough to take the right steps in the right order for hitting the goal. They were laying the groundwork for huge achievements in the future.

* This column is extracted from the critical biography of the founder Cosmetics would still be my purpose, even in another life.