Early-90s Taiwan saw CHLITINA lead a beauty revolution when its founder Dr Wu-Kang Chen discovered that using amino acids in skincare products could provide anti-ageing benefits. The amino acids would work to stimulate the production of collagen and elastin in the cells, leading to smoother, firmer skin.
Harnessing this knowledge, he created formulas – such as CHLITINA’s E.P.O. Facial Cleanser – which have gone on to become hugely popular with Asian consumers. This heightened sense of creativity in the skincare field has defined the brand throughout its existence.
Joanna Pi-Hua Chen leads rapid growth at CHLITINA
Founded in Taiwan in 1989, CHLITINA has worked tirelessly over the years to create a network of thousands of franchised beauty salons. This rapid growth has been led by CEO Joanna Pi-Hua Chen, the daughter of Dr Chen. She instigated significant expansion plans outside of Taiwan to bring the brand into the Chinese market in 1997, and this has paid dividends. As of May 2017, 3,370 of the company’s 3,650 stores are located in the East Asian nation, serving some 10 million customers.
Joanna says CHLITINA has taken a strong industry lead when it comes to innovation. “Innovation has been our indispensable backbone,” she comments. And there are four guiding values relating to it that have played a key role in the company’s roaring success over the past two decades.
The first is the franchise model, which, according to Joanna, has guaranteed the family business an 85% rate of survival, compared to the industry standard of 50%. With people stepping up to run their own branded CHLITINA beauty salons, the network has been able to expand rapidly. Consumers also instantly recognise the high-profile name and the services it offers, which leads to repeat visits.
Organisational innovation is the second area of focus. “CHLITINA has seen thousands of new stores open, at a rhythm of 500 a year, and each franchised shop employs an average of 20 to 30 people,” Joanna explains. “We’re talking about a business structure of 100,000 people – a scale that requires highly efficient and focused management in order to serve customers right and make it possible for franchisees to achieve the best possible performance.”
CHLITINA: a leader in beauty & wellbeing
Thus, CHLITINA takes a largely standardised approach when it comes to the design of its stores, product displays, stock management, and the way customers are welcomed. It also nurtures the talents of its franchise operators through the Germes Institute in China – its training facility for beauticians – ensuring they’re always at the top of their game. Around 900,000 people have attended the institute so far, with more than 90% of the beauticians working in China having been trained by CHLITINA.
The company also offers similar courses in its 25 regional headquarters across the country. The third element is its skincare products. The formulas are science-based and utilise the latest technologies. “CHLITINA’s products always focus on skin health,” Joanna says. “We research biological treatments and seize new innovations.” Earlier this year, CHLITINA partnered with Tongji University to establish a platform on stem cell research applications in the field of anti-ageing treatments.
CHLITINA’s products always focus on skin health. We research biological treatments and seize new innovation.
She adds that China’s middle-class population is burgeoning, and with it the demand for beauty products is growing, as is interest in the health and wellbeing space. CHLITINA does what it can to keep up with the times. It has successfully launched a number of wellness-related products and an ecommerce platform, Xinmeili, which makes it easier to sell and buy its products.
Capital innovation
Finally, there’s capital innovation – how it stays profitable and can fund its growth. CHLITINA’s resilience in China over the past 20 years is largely thanks to its ability to understand and find solutions for the financial shortcomings and potential risks that inevitably come with a franchise model. “The biggest risk you need to eliminate is the lack of brand recognition,” Joanna notes. “CHLITINA’s way of doing that is unique and simple in that our brand is bringing customers to the franchisees.”
It’s enrolling the likes of Mandopop superstars Christy Chung and A-Lin as spokespersons, and sponsoring events like the Shanghai International Film Festival, among other things. It’s clear that the beauty brand has struck gold with its innovation-intensive approach to business.
There have been plenty of highlights along the way, including being placed in the 2015 and 2016 Top 20 Best Taiwan Global Brands lists by international brand consultancy agency Interbrand, as well as listing on the Taiwan Stock Exchange in 2013. Joanna shares that her biggest thrill comes from CHLITINA’s ability to act as a launching pad for thousands of entrepreneurs wanting to start their own businesses.
“Inspiring numerous women to be entrepreneurs, which gives them a new lease on life both spiritually and physically, makes me so proud. As a family business, what’s most important is the sense of mission we have. This is what encourages me to keep fighting for this brand.”
Question time with Joanna
How do you measure success?
There’s no end for success; it grows as a person’s desire grows. To be successful is to make progress every day in achieving objectives.
What qualities make a good leader?
Professional skills are necessary, and having clear objectives. The most important part is to have leadership; you must possess the correct ideas and have the ability to resonate with people. Ensuring everyone’s goals are consistent to achieve win–win situations is also crucial.
What’s your best piece of advice?
To be a successful entrepreneur, you should have adequate capabilities and social experiences, a good business model, and an innovative enterprise that offers something unique.