#Exciting Changes_Real Stories
2020.01.06
Standing at the Center of Global Digital Sphere through Agile Change and Close Collaboration_A² Hangzhou Camp
Penetrating the touchpoints among company, consumer, society and culture in the digital ecosystem, quickly communicating and flexibly responding at those touchpoints. Creating something new and different from others and offering that to customers – this is the essential task at hand. A² Hangzhou Camp, which officially opened on September 11, currently stands at the center of China’s digital ecosystem. We visited A² Hangzhou Camp, located near Alibaba Group Corporate Campus in Hangzhou for close collaboration, and asked about change and innovation.
The digital sphere is a speed battle
“China’s cosmetics market is a place where various attempts and ideas pursuing a shift towards omni-channel is occurring, moving beyond a simple rapid growth of the digital market. Amid the current times that demand a more immediate and delicate response to the changes of the market, a partnership between Amorepacific and Alibaba Group, which owns China’s major e-commerce platform, was inevitable.”
Amorepacific China contemplated on how to lead the market in line with the fast-paced change in China’s digital environment. A meeting was arranged between Amorepacific Chairman & CEO Suh Kyungbae and Alibaba Group CEO Daniel Zhang, which immediately led to the collaboration between the two companies. Amorepacific-Alibaba TF was formed, and the team began to actively identify collaboration projects.
A² Hangzhou Camp is developing products dedicated for Tmall centered around brands like LANEIGE, Ryo, Mamonde and innisfree as well as focusing on communication with Alibaba. In addition, 21 members in charge of analyzing product trend in China are implementing important projects such as C2B product development and big data analysis. Depending on project scope, members from the R&D Center, SCM, and e-commerce sales work together in an organic manner.
A² Hangzhou Camp is developing products dedicated for Tmall centered around brands like LANEIGE, Ryo, Mamonde and innisfree as well as focusing on communication with Alibaba. In addition, 21 members in charge of analyzing product trend in China are implementing important projects such as C2B product development and big data analysis. Depending on project scope, members from the R&D Center, SCM, and e-commerce sales work together in an organic manner.
“Agility is the most notable innovation at A² Hangzhou Camp. We work in TF organizations depending on the project. Members in charge of different tasks can quickly come together when needed. And the decisions made by the task force are immediately executed while fine-tuning them with Alibaba.”
C2B Cosmetics Led by Customers
A² Hangzhou Camp is dedicated to developing C2B products that closely reflect the needs of Chinese customers in partnership with Tmall Innovation Center (TMIC). C2B product launch is pursued based on Alibaba’s big data on actual customer sales from the stage of selecting product category.
When a product category is decided, a taskforce consisting of members from the Digital Division and TMIC is established centered around A² Hangzhou Camp. The next step is creating a test product based on the Usage & Attitude (U&A) survey based on actual online customer data provided by TMIC. From the data on customers of our company, competitors, or per category, same targets to the actual data are set.
A virtual product page adjusted according to various concepts or price range is registered on the actual Tmall purchase page. This Package & Price Test becomes important data to delicately verify customers’ preference. When the C2B product’s target, amount and price elements are specified by reflecting the feedback from a few thousand customers collected via the product sales page, the product is then officially launched. Customer data is continuously leveraged and utilized in deciding an optimal marketing strategy from the product’s testing, design, and packaging as well as in developing a communication strategy for customers including selling points and key visual resource.
When a product category is decided, a taskforce consisting of members from the Digital Division and TMIC is established centered around A² Hangzhou Camp. The next step is creating a test product based on the Usage & Attitude (U&A) survey based on actual online customer data provided by TMIC. From the data on customers of our company, competitors, or per category, same targets to the actual data are set.
A virtual product page adjusted according to various concepts or price range is registered on the actual Tmall purchase page. This Package & Price Test becomes important data to delicately verify customers’ preference. When the C2B product’s target, amount and price elements are specified by reflecting the feedback from a few thousand customers collected via the product sales page, the product is then officially launched. Customer data is continuously leveraged and utilized in deciding an optimal marketing strategy from the product’s testing, design, and packaging as well as in developing a communication strategy for customers including selling points and key visual resource.
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Mamonde All Stay Foundation test page. This allows us to identify insight through customers’ actual purchases and survey participation as the screen is exposed identical to an actual purchase page.
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Package & Price Test page introduces products that are adjusted to various concepts or different price range for target customers of the same purchases.
“Surprisingly, it takes up to 6 months for A² Hangzhou Camp to launch one C2B product. This is significantly shorter than the 9 to 10 months it used to take to develop a product. This was possible because we were able to use TMIC’s big data. We now achieve a new level of product development by reflecting consumers’ purchasing behavior and market trend first and pre-identifying and determining customers’ needs before launching a product. We can make decisions efficiently and sensibly in the process, which leads to reducing the time and cost it takes to develop a product. Such product development process can be applied to Amorepacific’s entire company-wide product development process.”
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innisfree’s three different types of pore essence launched as a C2B product for Tmall-only.
For the past one year, innisfree has analyzed the digital consumers’ buying behavior in China with TMIC. It conducted an in-depth research on around 1,300 consumers and analyzed what search words they enter to buy products. As a result, innisfree launched three different types of pore essence products that contain the niacinamide ingredient, which is one of the most sought-after ingredients in China these days. Before the official product launch, innisfree offered a pre-order sale on Tmall and introduced the product by monitoring customers’ response. The brand also implemented marketing activities customized solely on customers such as sharing instructions on how to apply the pore essence or consumer events via H5.
Based on such experience, A² Hangzhou Camp is in the process of test selling C2B products of LANEIGE and Mamonde. This time, the test is based on another hot keyword ‘ampoule’ and data analyzing the target customer group accordingly. The camp plans to continue to develop leading products in line with China’s digital consumption trend such as products for daily beauty care.
Based on such experience, A² Hangzhou Camp is in the process of test selling C2B products of LANEIGE and Mamonde. This time, the test is based on another hot keyword ‘ampoule’ and data analyzing the target customer group accordingly. The camp plans to continue to develop leading products in line with China’s digital consumption trend such as products for daily beauty care.
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Based on various tests such as analyzing new customer acquisition, price suitability and customers’ acceptance of set product composition, Sulwhasoo plans to launch First Care Activating Serum EX and Bloomstay Vitalizing Serum as a ‘Tmall-exclusive First Care Activating Serum + Bloomstay Vitalizing Serum Duo Set’.
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The pricing of Mamonde’s All Stay Foundation and Flower Pop Eye Palette was decided based on a suitability test using Tmall data. Data on Mamonde target customers in China that they prefer relatively high pricing had an important impact on the decision.
Close communication towards global digital ecosystem
A² Hangzhou Camp is also focusing on close communication with Alibaba. Through communicating with various partners within Alibaba Group including its stakeholders, TMIC Tmall MD, and Alibaba Cloud, we continue to identify the trends and movements of global and local brands including Alibaba. Making their advanced way of communication our own and to enable it to be of actual help to Amorepacific is also another important goal of A² Hangzhou Camp. Innovation that reflects communication that is different from the past – this is what will create a fandom towards Amorepacific among Chinese customers as well as become a driving force behind securing Amorepacific’s unique capability and achieve further strong growth.
Messages from A² Hangzhou Camp
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Jason Son, Head of Camp
Alibaba communication & planning and identifying TF projects“A² Hangzhou Camp has a symbolic meaning of making collaboration with Alibaba Group more structured and deepened. It’s important to really learn and understand the Chinese market that is changing through true collaboration with the leader of China’s digitalization, Alibaba Group. We plan to implement whatever it is that will be helpful to Amorepacific based on the things we learn and understand from our experience here. Like how the company is struggling to overcome our current challenges, I too will do my best with the hope that I can contribute to the development and change of the company.” -
Yun Hyeongho
Alibaba communication & execution of TF projects“At first, I was concerned if we would be able to efficiently communicate with Alibaba and whether if we would be able to come together with members from different teams and move forward in one direction. But through efficient communication, we received good evaluation on our project, and I am having fun working with others as well. I am committed to growing together with members so that A² Hangzhou Camp can become a steppingstone in Amorepacific’s digital transformation." -
Park Minsoo
Alibaba C2B product development“We are focusing on digital with a shift in perspective of previously looking at it as a concept of digital platform (commerce) to a means of communication. And I am trying to learn from the members of Alibaba in how they combine detail and scale to bring dynamic changes in their way of thinking and way of work and make it as my own. My biggest goal is to absorb all this and build capacity that exceeds local top players. I look forward to growing further as I overcome the challenges not only in work but also in my life and become a father who does not fear new change to my two children!” -
Kim Youngshin
Ryo C2B product development“I have felt the importance of accurate data during my experience as a product development BM at Amorepacific for the past 9 years. The fact that we can apply hundreds of millions of customer data accumulated by Alibaba in developing products customized to the Chinese market is very attractive. My goal is to create an online success case of a haircare product, which is still a low-involvement product, through this opportunity.” -
Kim Yeohoon
LANEIGE C2B product development“I personally have set two goals to achieve at A² Hangzhou Camp. As a brand PD, my first goal is to launch an ‘impactful product’ that will be memorable to customers in China. And second is to share my work-related knowhows and be of actual support and help to others as A² Hangzhou Camp grows in size and the number of members involved. We look forward to your interest and support!" -
Jo Hyunkyu
innisfree C2B product development & communication“As someone who was in charge of offline and online sales, learning the A to Z in product development while working together with Alibaba is truly a precious experience. I am committed to creating products beloved by Chinese customers by actively playing my role and participating. Also, I will continue to study and learn to make the strengths of Alibaba my own and our brand’s.” -
Yuan Yayu(袁雅玉)
Alibaba communication & execution of TF projects“Partnering with Alibaba will provide us with great opportunities. We are dedicated to quickly developing products that are customized to the Chinese market and contributing to the growth of our company sales. I too wish to create many opportunities through close and efficient communication with Alibaba.” -
Wang Liangying(王梁楹)
China product trend research & product development“It’s only been two months since I joined Amorepacific, but I am learning a lot from all members of A² Hangzhou Camp and their passion. I will develop my personal capability and grow into a member that contributes to the development and growth of Amorepacific in the Chinese market.” -
Zhao Min(赵敏)
China product trend research & product development“I had the great opportunity to develop a product together with China’s largest platform provider Alibaba in the one month I’ve been at the company. I wish to develop a ‘hit product’."
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