Updates from IBD China — Team Galderma

Spring 2014 IBD Team Galderma (Abbey Breshears, Serena Cheung, Chris Eckersley, and Marlon Quintero) is in Shanghai working with the cosmetics company Galderma.

The lucky four on Team Galderma can say that their IBD project is the definition of a “winning strategy”: interesting problem to solve, engaged and supportive client, great office and hotel locations in Shanghai and the added bonus of a Mandarin-speaking teammate to ensure the most authentic experience possible in China.

The Galderma team has been tasked with developing an innovative “win strategy” for the Chinese market entry of two lines of skin care products. Given how much China has been changing in recent years, our client, a Frenchman from Galderma headquarters in Switzerland, wanted us to learn as much as possible about the Chinese CPG and cosmetic marketplaces.

On our second day “in the office,” three Galderma team members escorted us on a full day market tour of five retail stores around Shanghai, which also offered the fab foursome a great walking tour of downtown. We took a few moments to reflect on our strategic progress on Nanjing Road.

galderma1The “Team Who Thinks Together Stays Together” on Nanjing Road

From cosmetic giant Watsons to a drugstore to super suspicious employees at Sephora (“NO PHOTO NO PHOTO!”—counterfeit products are a huge problem in China) to the eerily Walmart-like Lotus Hypermarket, the team learned much about consumer shopping habits in China.

galderma2Lotus Hypermarket

galderma3Helpful drugstore floor product guide

On our second day, we received a tour of a public hospital led by a former dermatologist who now works for Galderma. A visit from Vladimir Putin had shut down most of the city, leaving the hospital with only about a third of its typical patient volume. Even so, the hospital was incredibly crowded, filled with lines and patients milling about (apparently) aimlessly. Dermatologists in public hospitals typically see about 100 patients per day. Conditions in the patient rooms were cramped and dirty, with four to five beds per room and no differentiation between diseases: people with contagious ailments were bedded down next to other patients, virtually ensuring the spread of disease. For even more fun, each specialty has a government-mandated limit on patient stays. For mobile patients, that could mean checking out and checking back into the hospital, a lengthy and pointless exercise; for non-mobile patients on respirators or other life-saving devices, that could mean major fines for the hospital and doctors on staff. Additionally, Chinese families mourning the deaths of patients have been murdering doctors in recent months.

In short, we were not surprised our Galderma contact decided to leave the field.

The private dermatological hospital we visited the next day was a different world, more reminiscent of a Western high-end spa retreat than a hospital. Private hospitals are restricted to the super rich in China and the posh atmosphere proves the point.

galderma4Private hospital lobby and floor guide

Chris even got the chance to have a full skin assessment done on his face. Turns out that Chris’ 24 year-old skin is much more sun damaged and wrinkly than your typical rich Chinese woman’s. Good thing we learned about some great products to help solve his problems.

galderma5Chris enjoying a high-class assessment

Supplementary meetings with our client’s Marketing, eCommerce, Key Accounts and Finance teams as well as outside meetings with their digital agency, a brand manager from Unilever, a market research consultant and a principal from Bain all helped set us up for project success.

Outside of the office, our team has the pleasure of staying in a ritzy area of downtown Shanghai where stores like Cartier and Burberry and cars like Maseratis and Aston Martins are frequently spotted. Our hotel’s eerily deserted 41st floor shows off a pretty fabulous view and our central location.

galderma6The view from the top of the hotel

Because no trip to China is complete without a visit to the Great Wall, the team took a high speed train to Beijing the first weekend of the trip. Waiting in line for train tickets, Abbey got to experience one of the great joys of Chinese-American relations: the differences in perceptions of personal space.

galderma8There was literally no one behind this woman in line

While in Beijing, the team packed in as many historic sites as possible, largely thanks to Serena’s knowledge of the must-see local attractions. The team kicked off the trip with a rainy visit to Tianamen Square—and apparently were the only tourists who didn’t think that full-length clothing, coats and umbrellas were really necessary in the 75-degree weather.

galderma9The Galderma team proving that California hasn’t made us soft

After deciding against checking out the display of Mao’s embalmed body (true story—Serena has already seen it), we headed into the Forbidden City, where a helpful English-speaking automatic guide told us all about the few rulers and many concubines who had lived in the massive space.

galderma10

galderma11

Male lion guarding one of the buildings and the Hill of Accumulated Beauty 

The afternoon was spent touring the Temple of Heaven, where the team enjoyed some peaceful walkways and hobbit doors that allowed the team to diverge and innovate their picture taking technique.

galderma18The team showing that our skills are not just strategy-related

The next day, the team traversed the Great Wall, successfully attaining the mythical jumping picture after many attempts with confused Chinese and foreign tourists. After walking up a nearly infinite number of stairs to get to the top of the Wall, Team Galderma was only too pleased to take a luge ride back down.

galderma12Great times at the Great Wall

While the team has been very focused on delivering strategic recommendations for the skin care marketplace, we’ve also realized an as-yet untapped, billion dollar business idea: spelling- and grammar-checking for Chinese signs and menus.

galderma13

galderma14

galderma15

galderma17

Some of our favorite sign and menu fails

In short, the team has been having a fabulous time, learning a ton and will hopefully provide an excellent (and excellently researched) final project to our Galderma client.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s