From start up to international in just one step

A new opportunity in the cosmetic and personal care industry

Michael Porter in his seminal books on competitive strategy outlined the progression of a company from start up to becoming internationally competitive.

Traditional thinking would have a company start up and develop its products in a competitive local market before venturing out into foreign markets. Porter was a staunch believer in this route of progression.

However today where local markets may provide only small opportunities for niche manufacturers due to the dominance of mainstream multinational manufacturers, the global market may be the only way to go for a special interest company.

With the development of global courier networks, the internet, and social media which utilizes these new channels of communication, new firms running on special interests are much more readily able to propel a product and idea into global notice of consumers.

This allows small craft based cosmetic and personal care companies who are dedicated to some particular theme get their product out into the world from the first day of company formation.

This is so radically different from companies that grew up in the local market supplying retailers within their local areas for years before they developed any export business just a generation ago.

New tech and social media savvy enterprises can now reach out to the world from start up.

Such was the case of a small soap manufacturer Mokosoi Soaps, which was established in Fiji by Ken Roberts during the 1980s before the advent of the internet. This company was basically a family operation in Suva which produced a beautifully shaped and shiny coconut based fragrant soap which truly felt special on the body when used with its protruding Ylang Ylang (locally known as the Mokosoi) fragrance. The bags were produced out of pandan and hibiscus fibres, with coconut husk fibre by single mothers in local villages which also added to the uniqueness of the soap. The proprietor at the time got his soap into all the major hotels and resorts, which a mail order form inside the packaging. The factory grew through mail order where the product went all over the Pacific Rim.

The large tourism industry in Fiji allowed this coconut soap to grow outside the very small domestic market of Fiji. Over the years the company grew into a medium sized soap manufacturer. The secret here was the handmade uniqueness of the product based upon the coconut theme, truly one of the products the author has used and been touched by its high tactile qualities.

The company continues to market itself through social media like Facebook and in 2010 won the Fiji Export Excellence Award.

Another quiet achieving company is Natalchemy Inc., founded by Larry Marsala in the United States. Larry is committed to the basic natural ingredients that were used in alchemy thousands of years ago. Larry follows the Eastern philosophy of bringing into balance air, fire, earth, and water to bring harmony into the spirit and body of a person. Thus he sees his products as the essence of nature, offered as basic and natural in this complex and technological world.

As such Natalchemy has found a niche of customers that appreciate the uniqueness he offers through his range of creams, fragrances, and lotions. They are marketed around the world through his website Natalchemy.

Through the internet, social media and focusing on a very specific niche with a unique offering, today it is possible to go international from the very start of your business.

It doesn’t matter whether you are in a remote place like Fiji, or in the United States far away from potential customers who want to appreciate what you have to offer. You can reach out to them via the cyber cloud and utilize very efficient courier services which allow real-time tracking to deliver any orders, no matter how small they are.

The author believes that these developments provide new opportunities for potential cosmetic and personal care manufacturers who don’t want to go into the mainstream retail markets that are dominated by the multinational manufacturers.

Each small manufacturer that I have known has the advantage also, that large amounts of capital for their start-ups are not required. It’s more about time, passion, product and business model development.

Today it is very possible for entrepreneurs to return craftsmanship to the cosmetic industry by going global rather than local. This is particularly important where there may not be enough consumers in your or any specific location to appreciate what you have to offer.

The important thing here is finding your niche, and developing your theme to the point your products have appeal to those who will appreciate your point of view. Once you have zoomed in on that, it’s easy to use the internet and social media to promote your ideas and products. Finally, the courier service will be your means of distribution which will enable you to become an international company.

Published in Science of Beauty April 2015

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