Givaudan adopts ‘glocal’ approach to beauty expansion

28 Sep 2021 --- Glocal - a combination of the words global and local - may on the surface look like an oxymoron, showcasing two opposite strategic approaches taken by beauty and personal care companies seeking to expand into new geographical markets. However, glocal refers to adopting a global, but locally-minded strategy, which is the case for active beauty ingredient company Givaudan as it focuses on international growth.

“In simple terms, ‘glocal’ means global knowledge and local context,” shares Justine Catala, CMI Project Manager at Givaudan. “More concretely, in our daily work we always keep in mind the importance of local particularities and adapt our global approach accordingly.” 

Click to EnlargeGivaduan's eschews one size fits all with its 'glocal' philosophy. Source Givaudan.Exploring and detailing the individualities in different geographical markets is crucial to developing a glocal approach to growth in beauty. “Each local market has its own characteristics that must be taken into account to offer good and relevant ingredient propositions to meet the market needs,” explains Catala. “For example, while we highlight the whitening effects of an ingredient in Asian countries, we will focus more on the illuminating benefits in the Western ones. Nowadays, there is no one-fits-all. Customization is key.” 

Consumers want to be heard and understood as individuals. Givaudan sees people no longer buy a product if it doesn't resonate with their expectations and values. Customer needs echo consumers’ expectations, and recognizing and acting upon this is at the core of the company’s innovation.

“As a global company, Givaudan Active Beauty is devoted to developing and providing the right cosmetic ingredients with the most desired benefits,” Catala stresses.

After settling on adopting a glocal approach, Givaudan explored how to strategize and roll out its marketing campaigns. “We are working closely with a dedicated team in each region composed of local experts and with the sales team to stay close to the markets, the clients and the consumers, to reinforce the local adaptations,” explains Catala. Utilizing their knowledge of local culture enables Givaudan to transform its global projects into customized initiatives that fulfill local needs. 

Meeting personalized consumer demands

The glocal approach resonates with beauty consumers as it enables brands to achieve customizable and personalized options that reflect their demands from beauty products and brands. “With the wide variety of beauty products on the market, consumers now expect more than generic beauty products that do not match with their needs or their values,” outlines Catala. 

Click to EnlargeThe company has extended its production facility in Mexico. Source: Givaduan.In an in-house consumer study recently carried out recently, the company notes its findings show beauty product purchase drivers vary from one country to another. “If the product does not focus on what consumers really want, it will not trigger any interest or purchase intention,” details Catala. “On the contrary, listen to them and offer them customized products with the right messages, then you will be rewarded.”

In recent months, Givaudan has celebrated several milestones in the beauty arena that demonstrates its approach to international expansion through striving to better understand individual markets upon entry. 

Firstly, in July 2021, the Swiss flavor, fragrance and active cosmetic ingredient producer, announced it had invested in the series A funding round of Next Beauty, a leading incubator for emerging fragrance and beauty brands exploring growth opportunities in China. Then, later the same month, Givaudan revealed it had signed a joint venture agreement with Privi Speciality Chemicals in India. Together, the duo plan to enhance production capabilities of its global specialty fragrance ingredients. As part of the agreement, the two companies announced plans to build a new greenfield production plant in Mahad, a city located south of Mumbai, which would be used to manufacture small-volume fragrance ingredients of medium to high complexity, also known as speciality ingredients.

Most recently, in August 2021, the active ingredient creator unveiled its US$82m investment in a new extension to its production facility in Pedro Escobedo, Mexico, to further support its growth in Latin America. In alignment with Givaudan’s 2025 strategy, the region continues to be a key growth market for innovative fragranced products.

By Natasha Spencer-Jolliffe, BPC Insights Senior Journalist