Kiehl's opens new store in Adelaide
by: Anna Vlach
FORMER cult beauty buy Kiehl's is now the fastest-growing skincare brand in Australia, according to cosmetic market analysis provider Beauty Update.
And it has achieved that status by keeping things simple.
With a high concentration of natural ingredients and modest packaging, Kiehl's was founded in a New York apothecary in 1851.
In 2000, its owners, the Morse family, sold the brand to French beauty house L'Oreal.
While L'Oreal does not disclose sales figures, it will reveal that global net sales growth doubled every three years from 2001-2010 and increased by 40 per cent in 2011.
Kiehl's has expanded with a website and will be sold in 43 countries by the end of this year.
Locally, its presence includes stockist Mecca Cosmetica, a concept store in David Jones Rundle Mall and a new boutique at Burnside village which officially opened on Friday.
However, other than a huge global presence and impressive net sales, not much has changed.
Kiehl's vice-president global education and customer relations, Cammie Cannella, who has been with the brand for 20 years, said it is "as a separate entity, with our own laboratories and our own offices".
"L'Oreal has upheld their dedication to a pledge they made at the time of our merger, which was to 'Let Kiehl's be Kiehl's'," she said.
Being Kiehl's means sticking with a formula, literally. While other skincare brands, much to customers' frustration, change formulations, Kiehl's believes in consistency and does not regularly launch new products.
"We know that women and men shop at Kiehl's regularly because they become loyal to the products that give them the results they are looking for," Ms Cannella said.
"There are essentially two primary reasons that we introduce a new product at Kiehl's: One is when we discover a particular ingredient or technology that we feel our customers would benefit from, and the other is when we are inspired by the suggestions or requests of our customers."
Unlike the majority of its competitors, in what is a saturated beauty market, Kiehl's does not use celebrity endorsements or, for that matter, advertise. "We choose to put our resources into the quality of our formulas rather than in fancy packaging or advertising," Ms Cannella said.
Kiehl's Australia general manager Teresa Love said money which would be spent on advertising was invested in sampling Kiehl's is big on gifting customers with samples so they can try before they buy and "our philosophy of giving back to the community through charity".
"Every year we create a limited edition Creme de Corp with an awareness to a charity and a donation from profits of the products sold," she said.
"For 2011 we worked with three local fashion designers, Sass and Bide, Zimmermann and Ksubi and their chosen children's charity."
Not that Kiehl's isn't about luxury it's just about affordable luxury.
Last year, the entire range of Kiehl's was reduced by up to 50 per cent in Australia to protect domestic sales and stop Australian shoppers spending up on overseas websites. Kiehl's customer research has shown Australians prefer to shop for beauty products in luxury retail stores.