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Meeting Demand with Innovation
Posted: September 11, 2007
page 2 of 3The need for innovation within this industry requires entrepreneurs tapping into this demand by developing cutting-edge technologies and products. Porter believes the survival of these smaller companies is critical to the innovation of the industry and its greatest challenge. “This industry thrives on new ideas, innovation and creative energy, and this is exactly what is missing in many large cosmetic companies,” says Porter.
Product development at Osmotics revolves around technological developments. The company went to market in 1995 with the introduction of its transdermal patch designed for cosmetic use. The company has since expanded its SKUs to include hair care and a men’s line.
As with any company, deciding on the distribution channel depended on finding the retail environment conducive to the brand.
“I initially chose the specialty retail distribution channel because our technologies require some depth of communication and education for our consumer,” states Porter. “This channel allows for more intensive training of our sales associates so that each customer receives a personalized skin care analysis and a customized skin care regimen. Our Web site also provides all of our clinical studies to the consumer. Consumers are viewing skin care as health care, and are demanding more sophisticated substantiation/testing for product claims.”
Growth for the company has primarily come from word-of-mouth. “We may not be the biggest, and we do not try to be everything to everyone,” said Porter. The approach has resulted in distribution through select Nordstrom and Lord & Taylor stores, independent boutiques and spas, as well as online via its Web site.