Candice Alvarado & Kaitlin Andreas Joan Kelly Brand Strategy 29 April 2011
The Nail Care Branding Battle: OPI vs. China Glaze
OPI Products Incorporated has been a leader in the beauty industry since it was first founded in 1981, and today is most well known for its prestigious, professional quality nail color and nail-care products. OPI is one of the most recognizable and branded companies in the international beauty industry as far as nail polish is concerned. Its products are primarily sold in salons and professional beauty retail stores in over 70 countries worldwide (Hoovers). Boasting annual sales of about $300 million dollars, and the OPI Products company and brand itself is rumored to be valued at around $1 billion dollars (OPI Products). OPI.com states that the OPI brand is “committed to providing our customers with the finest quality in products and services” (OPI). Offering over 200 colors, based on current trends, movies, celebrities, cities and themes. Senior Beauty Analyst, Vivienne Rudd, says that “nail polish has performed very well despite the economic downturn…while women on a budget may hesitate to buy a new dress or shoes, nail polish may be used as an economical means to update their look and keep abreast of fashion” (Daily Mail). Researchers found that “seven in ten women aged 15-24 paint their nails, with a minority, one in five women in their early twenties, applying nail color at least once a week” (Daily). Nail color is a quick way to accessorize an outfit, in any season, at a very low cost and this nail color trend is predicted to continue to grow as consumers continue to look for ways to save money. The prestige beauty industry generated $8.4 billion dollars in 2010, a 4% increase from sales in 2009, this is seen in the chart below.
This was believed to be fueled by the double-digit growth of offerings from primers to antiaging face products, to rich color options in lip and nail, five of the six segments within makeup posted growth. Three segments either met or outpaced category growth: Face(+3%), Lip (+3%), and Nail (+39%)” (NPD).The prestige beauty industry has experienced growth not only in the United States but internationally which can be seen in the table above. NPD reports that “prestige
nail care posted the biggest increase, followed by prestige makeup, and prestige fragrance” (NPD). These increases in the beauty industry show that the economy is improving and women are returning to their pre-recession spending habits and find it easier to spend $20 to $50 on beauty products rather than going out and buying a $200 outfit. Given the increase in nail color, it is visible in many retail stores and many apparel retailers such as Forever 21, J. Crew, and American Apparel have expanded their product offerings including offering nail color. Although the nail color trend is creating sales across the board in the retail and beauty industries, the two companies that continue to dominate the nail care market are OPI and China Glaze. OPI’s closest competitor, also a popular name in the nail polish market is China Glaze Corporation, founded in 1998. China Glaze claims to be one of the top professional nail care products available, and uses a one-of-a-kind formula including China Clay as a nail hardener (China Glaze). Although it is a close competitor, it’s advertising campaigns and branding aren’t nearly as successful as OPI. This is shown by a comparison of site visits by Quantcast, to both OPI.com and ChinaGlaze.com throughout the last year. The OPI site had an average of 37.2 thousand views per month while the China Glaze site only had average monthly views of 5.2 thousand consumers. This data can be visually seen and compared in the chart below.
The nail care industry is wide and vast, now with many apparel retailers developing nail colors for each season, along with nearly every cosmetic brand featuring a nail color line. However, OPI and China Glaze stand out from those competitors since their main product focus is nail care, specifically nail color. Both companies carefully follow fashion color trends in order to predict future color trends and develop nail colors to compliment and accessories the fashion trends in apparel and accessories. The product from both brands could be seen as identical, as they both are about the same relative size, 3.5 inches tall and 1.5 inches in diameter, both containing .5 fluid ounces of nail polish. It is hard to determine if even the nail polish inside the bottles is extremely different, however one thing that makes OPI stand out from China Glaze is it’s branding strategy. OPI is never lacking in their creative. They are constantly creating new and exciting products and campaigns to stay up to date with their consumers and using pop culture as a way to do so. OPI’s campaigns distinguish them from their competition and have helped the brand stand out in the customer’s mind. OPI partners with movies and television shows to create color themes for them. Movies such as Shrek Forever After, Alice in Wonderland, Pirates of the Caribbean and Burlesque all have nail polish with coordinating colors. Shows like Glee and Gossip Girl which are both very popular among the public also have their own nail color line. Another way OPI stands out from its competitors are the celebrities that represent the brand. Katy Perry who is rising the charts in today’s music industry has her own OPI nail color line which fit her music and her personality; therefore, Katy Perry’s fans that admire her have another way to connect with her. Other celebrities that represent OPI include Lady Gaga whose style is updates as often as each OPI line and Serena Williams who is an iconic athlete to women.
OPI has also partnered with Dell for another campaign. Consumers who love OPI or who love Dell and want a computer with style can now purchase Dell laptops in some of OPI’s most popular colors. Dell users can now express their individuality and feel trendy with their colored laptops. Another example OPI’s is a fashion forward brand is their constant ability to create new up to date lines. Seasonal spring and fall lines that give their consumers ability to be fashionable right down to the smallest detail are popular among consumers and constantly being updated. Not only does OPI create nail color lines for season, but also for destination. Their most recent destination line is for the southern country girl, “TEXAS”. Colors for this line include: San Tan-tonio; Big Hair…Big Nails; Austin-tatious Turquoise; Don’t Mess With OPI, It’s Totally Fort Worth It; Do You Think I’m Texy; Houston We Have a Purple, etc. Other destination lines include South Beach, Hong Kong and Spain. OPI is such a strong, innovative, and fashion forward brand that it’s competitor China Glaze has trouble keeping up, though they’ve been trying. Similar to OPI’s campaigns China Glaze has tried to target the same market, but with less success. China Glaze recently released a “Crackle Glaze” which is similar to Katy Perry’s line, but without a recognizable, popular face behind the line or the brand it doesn’t even compare. They have also created a destination line, “Island Escape” though once again in comparison to such a strong brand China Glaze’s destination line has been less successful. They have also tried to channel the movie business through Tronica and Up & Away. These lines however aren’t taken directly from the movies, but have their own creative twist on them. China Glaze does not have the same ability to keep up or get ahead in the market like OPI does, therefore they keep falling behind. Using Young and Rubican’s Brand Asset Valuator we can see why OPI is such a success brand that stands out in the market place. OPI’s brand value as a prestigious nail polish brand, fashion forward sense and trendy colors are what OPI is known for and what consumers have come to expect from the brand. Their brand is vital among consumers because their creative color names, color themes based off pop culture and the quality of the nail polish have made OPI a high demanding product. Their brand stature is strong! When consumers think of nail polish, they think of OPI. They know they are going to get high quality nail polish that lasts and is fashionable which is important to their target consumers. OPI’s innovate and creative ideas differentiate them from their competitors. Other brands may try to market their products similar to OPI but OPI is staying ahead, they know what is popular among consumers, and what their consumers want before anyone else
which is why they are such a successful, strong, well known brand. Their creative campaigns that target consumers who are specifically interested in that movie, or that celebrity, or that destination make the brand relevant and attractive to their target consumer. It makes their consumer feel trendy, chic, and good about herself, so consumers hold OPI to a certain standard because they have adapted to the product and use to having a higher esteem because of it. They also know what the brand is about and its image. Consumers know OPI.