Rougeot says Korea is a global test bed, trendsetter for beauty products


Cosmetic sales are rarely affected by economic downswings. Sometimes they even surge during times of slugglish economic activity as consumers are more inclined to buy less costly luxury goods instead of houses, cars or fur coats.

“They call it the ‘lipstick effect’ as lipstick sales tend to remain constant through economic slumps,” Jean-Andre Rougeot, chief executive of Benefit Cosmetics, told The Korea Herald during a visit to Seoul last week.

“Playing with cosmetics gives you 10 to 15 minutes of fun and relaxation even if you’re in a tough environment, and during difficult times, more women desire this moment of peace.” 

Benefit is no exception.

In fact, Benefit has been one of the most successful cosmetic brands in the world over the past five years.

Sales of Benefit have grown  by more than 20 percent every year since 2007 worldwide, according to Rougeot who joined the company in 2006.

“This is partly because we expanded geographically, but also partly because our brand DNA, which is about fun, humor, selfconfidence, crazy packaging and beautiful colors, is incredibly compelling to 20-30-year-olds,” he said.

“I think young consumers really appreciate the free spirit that our San Francisco-born brand  represents and the bold, girly approach. Also, our brand is well-positioned for internetsavvy customers.”

Started as a small makeup boutique by then-models Jean and Jane Ford amid the 1970s hippie culture and gay movement, Benefit now sells in 38 countries.

Korea is Benefit’s biggest Asian market, and the thirdlargest after the U.S. and Britain.

Sales in Korea grew 30 percent-plus on annual average over the past five years.

Benefit is among the top five makeup brands here, and in some retailers, among the top three.

“For many global companies, Korea is just a market, but for us, it has always been a lead market like England or America,” Rougeot said.

“It is not only a source of sales, but a great source of inspiration, innovation and marketing ideas for me and many markets around the world.”

A slew of cosmetic trends start in Korea, BB cream being a good example.

Korea is also where Benefit measures quality — for both formula and packaging — as it has the world’s most  demanding customers, according to Rougeot who has been in the cosmetics industry for nearly 30 years.

Being the first Asian market Benefit entered in 2004, five years before China, Korea has shown that Benefit can be successful in Asia, he said.

A third of Benefit’s revenue now comes from its 12 Asian markets including Taiwan, Singapore and Malaysia.

Benefit recently opened in the Philippines, in Vietnam last week and will be opening soon in Indonesia.

“Many Western brands have ignored Southeast Asia mainly because it is too far away, but I think it will be the new China,” he said.

“In Vietnam, for example, the middle class is growing very fast which means the luxury market is growing fast too. In five years, I expect the Southeast Asian market altogether to be as big as Korea or China.”

Benefit has not entered Japan because its retail environment is deemed not very appropriate for the brand.

“The customers in Japan’s department stores are older, whereas in Korea, a lot of young people shop in department stores,” Rougeot said.

“Korean department stores, in my view, are the best in the world. They are beautiful; they invest a lot in remodeling. Every time I visit there’s something new going on, and this is very rare around the world.”

The San Francisco-based CEO comes to Korea three or four  times a year to work with the company’s Korean staff on business strategies, exchange ideas and discuss what other markets are doing.

The CEO praises the Korean team for their creativity, especially in using digital media, closeness to consumers and high level of training.

Benefit’s key marketing strategy is to communicate to consumers its unique DNA that comes with a sense of humor and witty product names like Cha Cha Tint and Porefessional. “Laughter is the best cosmetic” is the brand’s motto.

“We want people to know we’re different. So a lot of our digital media efforts, public relations and in-store activities are focused on that,” he said.

Adding to its uniqueness is the brow waxing service which  the founding twin sisters started 40 years ago. The company runs some 600 “brow bars” around the world including 12 in Korea.

Because Benefit does not advertise, it carries out activities at store-level and through the Internet to successfully launch new products. It also makes videos and comic books as today’s consumers want stories.

Last week in Seoul, Benefit held the Asian premiere for a 45-minute movie titled “Glamouriety” on the history of the brand.

Benefit recently published with Marvel Comics, the creators of the Avengers, a comic book featuring an iconic detective character “Spy Gal” whose stealth communicator is a powder compact, a lipstick camera, mascara laser and an X-ray  eyes hadow case.

Jean-Andre Rougeot

● Graduated from Harvard Business School as a Baker scholar in 1984

● Worked for consulting firm McKinsey from 1984 to 1988

● Served as worldwide CEO of Coty (fragrance and beauty company) from 1989 to 2000

● Worked as CEO of various private equity-backed companies from 2000 to 2006

● Served as worldwide CEO of Benefit (an LVMH company) since 2006

By Kim So-hyun (sophie@heraldcorp.com)