Melvita: New stores worldwide

The expansion strategy that Melvita started to implement about three years ago has already proved to be hugely successful. “We’re now present in around 30 countries,“ says Mathieu Spies proudly, the executive responsible for global expansion at the French natural cosmetics firm. In 2010, the owner of Melvita Bernard Chevillat wanted to establish a strategic alliance with the Provencal cosmetics giant L'Occitane (see our earlier report). With its sights on worldwide expansion, the aim was to benefit from the financial power and knowhow of its neighbour in the south of France. Since then the firm, that has its headquarters in the Ardèche, has been a success story beyond compare. (Picture: Mareike von Postel represents Melvita in Germany)
In 2011 alone, 20 new stores were opened across the world by the French market leader, plus about 100 new outlets principally in department stores, shopping centres and drugstores. The focus of expansion is Asia. “We’ve now got four stores in shopping centres in Hong Kong,“ Spies explains. Four more are planned. Seven have already been opened in Taiwan, and five in Japan, where by the end of the year another three will be launched. In Seoul in Korea, they have only just begun to create a network of outlets with the first Melvita Boutique and three Melvita-Corners in department stores. These counters are around 15 m² in size with an offer of 150 articles. In Russia, four natural cosmetics shops were launched in Moscow and one in St. Petersburg. “We’re planning another three shops in Russia this year,“ says Spies, who has been in charge of planning and implementing this expansion strategy since 2009. He says that the most open and most interesting market for Melvita is Taiwan. So far, there have been only one or two failures: having been there for about two years, the company is pulling out of a very good but also expensive location in Prague’s main railway station. (Picture: Melvita stand at Vivaness 2012)

Through this international expansion, the company has learned a good deal about different product use and purchasing behaviour. "Asian women value skin cleansing much more than European or American women," says Mathieu Spies. For this reason Eaux Florales (floral water) and Eaux Extraordinaires (a skincare preparation lotion) are very popular. In Hong Kong, for example, the serum is also popular with a lot of women. The bestseller among the oils is Argan Oil. In Japan and the USA, the 10ml roll-on bottle of body oil sells very well. On the other hand, Melvita’s royal jelly sells particularly well in England and Hong Kong, whereas it is much lower down the ranking in other countries.

Although the expansion strategy of the French natural cosmetics manufacturer was making little headway in Germany a couple of years ago because the market was largely covered by other companies, Melvita’s unceasing efforts have created some opportunities. “We’re now doing much better in Germany “, both Mathieu Spies and Mareike von Postel are relieved to point out. In March 2010, they opened their first Melvita shop in Karlsruhe, and another six to ten will follow in the years ahead. The company is currently looking for premises in Hamburg, Munich and Düsseldorf. The two-pronged marketing strategy caters for selling Melvita products both in its own stores and via the specialist trade, and if necessary by using other marketing channels too. Over the last two years Melvita’s sales division has had lots of discussions with whole food and specialist natural cosmetics businesses and other potential outlets. In the meantime, a Melvita product range consisting of 40-80 lines is being marketed in more than 80 shops in Germany. For a year, Melvita has also been represented in the Müller drugstore chain, where eight stores have the French natural cosmetics range on shelves.

Despite the shrinking organic market in Britain, progress is being made there too with a couple of successful Melvita boutiques in London. Apart from these ventures, a selection of 80 Melvita articles have been listed by the two Whole Foods stores in London and Glasgow. The first Melvita store in Switzerland was launched in Basel on 23 March 2012. The company has also gained a foothold in Rumania with its presence in four pharmacies belonging to the Sensiblu chain.

(Picture: Melvita’s representative in Germany, Mareike von Postel, on the Melvita stand at Vivaness/BioFach 2012)

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