Seven years, 11 outlets
Once the old firm had established its new reputation, department store managers came in droves asking if de was interested in renting sales counters.
In 2005, de was invited to open a counter at Global Mall in Zhonghe, but Huang, a pragmatic individual, felt that they weren’t adequately prepared, instead deciding to open their first branch on Yanping North Road as a training ground for amassing storefront experience.
When they did come to set up their first counter in a mall, with no experience in such operations, issues such as decor, product packaging, shelf stocking and employee training were entirely new to them. When they had just opened, a floor manager of the mall asked Huang what their sales targets were. Her reply of “What’s that?” quickly became an anecdote in the industry.
The annual turnover of Taiwan’s cosmetics market is estimated at over NT$70 billion. Individual product prices vary greatly, from a few hundred NT dollars for off-the-shelf items to premium beauty products going for over NT$10,000 a pop. In seven short years de, located comfortably between the upscale and downmarket extremes, has been steadily opening outlets from north to south, including in popular shopping centers such as Kaohsiung’s Dream Mall and Taipei’s Q Square. Currently there are 11 outlets in all.
Despite being a newcomer, the company’s average annual revenues per outlet come to over NT$30 million. This decade-old local cosmetics brand saw revenues of over NT$400 million in 2012, for a profit rate of over 30%. These are eye-popping figures.
A model of transition
“The advantage of having a family business is greater flexibility. When we have different ideas, we can just sit down and discuss them.”
Huang says that when the brand was just established, friends and relatives were unclear about what she was doing. Seeing how much money was being spent on developing the shop, as well as its pure white interior design, people had different opinions. But they felt at ease after seeing the results. Currently the duties of the family members are as follows: Huang’s husband’s elder brother is in charge of industrial chemicals, while the brother’s wife manages finances, and Huang’s younger brother-in-law runs the shops. Huang’s husband runs the factory, and Huang herself is responsible for product development and marketing. In this way, they can work together seamlessly.
Several years ago someone asked Huang out of curiosity whether she had thought about expanding overseas. Huang said no: their goal at the current stage is to invest capital into factory equipment and employee training, in order to strengthen business competitiveness.
In 2011 the company invested millions of NT dollars in an enterprise resource planning (ERP) system to gain full control over product information from storage and sales to accounting. Last year they started working toward cGMP certification to ensure that their factory design, equipment and product purity conform to health and safety standards.
Standing on a basis of tradition and looking forward in its transition from industrial chemicals to cosmetics, First Chemical Works is riding on the beauty train. Filled with new product ideas and dreams, the old firm has found a unique position in the brutally competitive beauty products market.