Associate account director at Beyond, Cesca Lam, believes that the PR company secured the retainer basedd on the comparable experience it has accumulated in representing clients such as Dove Hair, Dove Bath and Ponds.
"I think we won the pitch because of our experience in the fashion and beauty field," said Lam.
Beyond's brief is to focus primarily on media relations, in attempting to position Red Earth as the brand of choice for its core market of 18 to 27 year olds. In this respect, Beyond will support the drive to increase public awareness of Red Earth as 'a world of colour' and a highly professional cosmetics brand.
Red Earth's core market is 18- to 27-year olds, although the over 28-year old segment is also important," confirmed Lam. "The target audience is ladies who like to have an energetic look, and Red Earth is positioned as a very fashionable brand with the most colourful product line."
The Beyond team in charge of the account will include director Dawn Chan, associate account manager Whitney Wong, senior account executive Gillian Leung, as well as Lam.
Red Earth is expected to expand its product range in 2004, and Beyond's retainer win is seen as promising news for a cosmetics sector that has suffered from the economic downturn over the past few years. In addition, many mass brands have also been forced to deal with fierce competition from smaller brands.
"The major challenge is the competitive environment, but we are very optimistic about this year," said Lam. "Many new brands have emerged, including private brands."
The recently concluded tariff agreement (CEPA) with China is expected to significantly assist Hong Kong-based cosmetics manufacturers in reaching the mainland market. Five categories of cosmetics and toiletries made in Hong Kong, subject to CEPA's rules of origin, now enjoy duty-free access to the mainland, whereas non-Hong Kong made counterparts will remain subject to tariffs ranging from 18.3 to 22.3 per cent.
In the area of distribution services, Hong Kong cosmetics and toiletries companies are allowed additional market access and removal of specific restrictions in China.