Chlitina now boasts a network of over 4400 franchisees in Greater China and Southeast Asia. The franchise generated more than 1 billion yuan (131 million euros or 147 million US dollars) in sales in 2018, 95% of which, in mainland China, making it the leading beauty salon brand in the region.
The aim of the franchise is to achieve a net annual growth of 500 institutes, not only in the Greater China region but also in countries like Vietnam where it already has a foothold and soon in Malaysia and Indonesia. To ensure its development, the Company relies on its own R & D centers and manufacturing plants in Taiwan and China. This allows the Company to master the quality of products and their traceability and thus guarantee their authenticity. In-house development also allows for increased responsiveness on the market.
Chlitina also has a training school in Shanghai and 27 regional centers spread across China. These schools train beauticians to skincare methods, but also to health practices and to the management of the Beauty institutes. Chlitina believes that 300,000 beauticians – i.e., about 90% of all beauty professionals in China – were trained by the franchise brand.
A feminist commitment
The Company stands out with its feminist commitment and encourages women’s entrepreneurship. “The brand seeks to help women emancipate themselves economically and to take a leading role in their family and community,” said Ryan Chao, COO of Chlitina.
Chlitina leverages on a Taiwanese concept of customer service and skin care. Beyond cosmetic treatments, beauticians are trained to the well-being of their customers and to the management and growth of their salons thanks to new selling techniques, with loyalty programs for their customer who generally call on their services three or four times a month. Beauty salons also communicate on WeChat, Line, Weibo among other micro-blogging platforms, etc. Everywhere, except in China, where the American social network is blocked, every salon also updates its own Facebook page.
There is a profit-sharing scheme for salons on their sales of cosmetic treatments and products. Supplies are managed in a just-in-time mode to limit costly stocks. Yet, customers are not only encouraged to go to their salons to benefit from technical skin treatments and get the beauty tips that the brand’s sophisticated products require, they can also buy online: Chlitina has created its own e-commerce platform to expand its range by offering the brand’s products, but also wellness products such as dietary supplements.
Towards medical beauty
In line with its development strategy, the beauty salon franchise brand is leveraging particularly on light cosmetic procedures (such as Botox injections, laser treatments, etc.) and has recently acquired a beauty care clinic in Beijing and announced that it would shortly be opening two more clinics in Shanghai.