Entrepreneurship
Hi everyone I am reaching out for some guidance and advice regarding a business dilemma I am currently facing. I own two businesses – a skincare company ( lets call it A skincare) for sensitive skin established six years ago and a hair care( B hair care) business focused on addressing hair loss that I founded during the COVID-19 pandemic in Hong Kong . Both businesses operate in Hong Kong, and my current business model involves selling both skincare and hair care products under the umbrella of my skincare brand A and using A website to sell both A skincare and B hair brand Here's where I could use some insights: I am contemplating expanding my market to the U.S. However, there are a few challenges I am grappling with, and I'm seeking opinions on the best course of action. The first challenge is related to trademarks. Unfortunately, my skincare brand is unable to register a trademark in the States and if i change the brand name now it will greatly affect my SEO in hong kong business and all the contents we have built which we spent years to build so we dont plan to change the brand name at this moment .Considering this limitation, I am uncertain about whether to continue with the same business model – selling both skincare and hair care products under the skincare brand – or if I should launch them separately but it will result in double expenses for losgitic, ad spend and website mangement Q1: As a e-commerce business . Do we launch both brands under same website and same social media account like we did in Hong Kong . ( would it be confusing to consumers? ) Q2 : How should we position ourselves ? Do we only bring one brand in and test the market first or test both of the category at the same time? 3What considerations should I keep in mind as I make this decision? Any advice, experiences, or suggestions would be greatly appreciated. Thank you in advance for your time and input.
3
Answers
🌎Harvard Certified Global Corporate Trainer🌍
Here are my suggestions on how to approach the US expansion:
Launch the brands separately with distinct websites and social media accounts. This avoids confusion for US consumers who are unfamiliar with your Hong Kong brand umbrella approach. Selling such distinct products—skincare and hair loss treatments—together may seem disjointed or less focused to new customers.
Prioritize bringing your core skincare line first since that business is more established. Use a different brand name that can be trademarked in the US. Build an independent presence and equity in that market for the skincare line before introducing the hair care line.
Once the skincare line gains some traction, you can launch the hair care line independently under its own trademarkable brand. Cross-promote between the two brands since you own both. This allows you to build awareness for both distinctly first before linking them as sister brands.
Maintain separate websites and social channels for now. As both gain equity in the US, you can then transition to a master brand website that hosts or links to the two sub-brands. But launch separately first so US customers get familiar with each independently based on their own merits.
Answered 10 months ago
Director of SMMA Sarie Social
Navigating the expansion of your skincare and hair care businesses to the U.S. involves careful considerations. Here are insights to address your concerns:
Q1: Launching Under Same Website and Social Media
Pros:
Cost Efficiency: Managing a single website and social media account can be cost-effective.
Cross-Promotion: Leverage existing customer base for cross-promotion.
Cons:
Brand Confusion: Consumers might find it confusing to see both skincare and hair care under one brand.
Target Audience: Tailoring marketing messages becomes challenging when catering to two distinct audiences.
Recommendation:
If maintaining the same website and social media account, clearly segment content. Design your website to have distinct sections for skincare and hair care. Use social media stories or highlights for clear product differentiation.
Q2: Positioning in the U.S. Market
Pros:
Test Simultaneously: Gauge consumer response to both skincare and hair care products.
Diverse Audience: Attract a broader audience interested in both categories.
Cons:
Resource Allocation: Requires substantial logistics, ad spend, and website management for both brands.
Market Feedback: Simultaneous launch might make it challenging to identify which category resonates better.
Recommendation:
Launch both categories but start with a soft launch. Monitor analytics to understand consumer preferences. Gradually refine your strategy based on market response.
Q3: Considerations for Decision-Making
Market Research: Understand the U.S. market demand for skincare and hair care. Identify competitors and consumer preferences.
Brand Identity: If maintaining a single brand, ensure clear messaging that communicates diversity in product offerings.
Logistics: Evaluate the impact on logistics, shipping costs, and inventory management for dual product lines.
Digital Marketing: Plan targeted digital marketing strategies for each category to avoid consumer confusion.
Adaptability: Stay adaptable and be prepared to pivot your strategy based on real-time market feedback.
Final Thoughts:
Consider a phased approach based on initial market responses. Leverage customer feedback to optimise your strategy over time. Seek legal advice on trademark challenges and explore creative solutions to maintain brand integrity.
Answered 10 months ago