
Florasis (Huaxizi): how knowledge management drives the success of Chinese-style cosmetics
Despite the increasingly fierce competition in the cosmetics industry, Florasis (Huaxizi), a Chinese cosmetics brand, has gradually stood out in recent years. As the brand gains more popularity, Florasis has gradually developed hits ranging from exquisite product designs inspired by Chinese folklore to cosmetic formulas rich in traditional Chinese medicine (TCM) ingredients, creating a unique market presence and a mature and complete industrial chain. This success is not only based on the charm of traditional culture, but also related to knowledge management (KM)—a structured way of collecting, sharing and applying traditional and modern knowledge1.
In fact, Florasis is not just building a brand, it’s preserving culture. Through KM, the company integrates ancient beauty wisdom, modern consumer insights, and cutting-edge research to thrive in a competitive market. Let’s take a closer look at how Florasis uses KM to innovate, scale globally, and create stunning beauty products that are beloved by millions.
Knowledge management in Florasis’ operations
Florasis emphasizes a deep appreciation of cultural knowledge in its operations. Each product draws on China’s rich heritage during the design process2. Take Florasis’ stunning 2020 “Miao Impression” series of products as an example. The patterns engraved on the lipstick and powder are inspired by Miao silver jewelry, batik and floral patterns. In addition, to ensure the authenticity and accuracy of these designs, Florasis team also went deep into the Miao village through the “Intangible Cultural Heritage” approach, and worked with cultural experts and craftsmen to pass on the mysterious and fashionable ethnic beauty.
Florasis has used KM tools in many aspects of its business. We all know that a large part of Chinese culture is made up of skills and traditions passed down from generation to generation, which is called tacit knowledge. By capturing and distributing this kind of knowledge, the brand can innovate for modern consumers while ensuring cultural authenticity. Through analysis, I found that the key to Florasis’ continued success lies in the balance between tradition and innovation, which can be seen from its specific application of knowledge management strategies in all aspects of its operations.
Practical KM tools in Florasis
Florasis does not only rely on the sources of traditional Chinese knowledge, but also learns to use a variety of modern KM tools and strategies to better grasp customer feedback and market dynamics.
Internal collaboration platforms are usually considered to be one of the most important KM tools. Florasis is aware of this and has built a complete internal collaboration platform. This platform provides R&D, marketing, and design teams with the opportunity for seamless collaboration. The R&D team is deeply engaged in ingredient research, while the design team is committed to designing packaging that meets the aesthetic tastes of target customers. This cross-departmental3 knowledge sharing system allows each department to contribute its expertise and knowledge to create more exquisite and innovative products. As we can see, in 2021, Florasis’ “Oriental Beauty Research Institute” was officially established, which brings together experts and research of many top beauty research centers at home and abroad. This institution adopted a research method that combines modern technology with the traditional Chinese medicine theory research framework to delve into oriental-style makeup and help Florasis to gradually build a unique cosmetics evaluation system.
We can often see Florasis product review videos, pictures and comments about customer experience under posts on platforms such as Weibo, Xiaohongshu, and Douyin. This is an important part of Florasis ‘s KM strategy, also known as knowledge system. Florasis regards customer feedback as a top priority in operations. It collects customer feedback on products in real time by tracking consumers’ comments and opinions, so that it can quickly fine-tune products when problems are found. Florasis ensures the real-time knowledge flow between customers and the product development team, allowing it to accurately target customer groups and meet changing market demands.
A vast digital repository has also played a big role in Florasis’ success. The database collects both traditional and scientific knowledge about Chinese herbal ingredients such as peony and licorice, so as to provide a solid scientific basis for product development. In addition to the R&D team, all departments of Florasis have access to the knowledge base, which allows each team to create attractive products based on a full understanding of traditional Chinese medicine, combined with modern production technology and marketing methods. For example, Florasis once used its research results to create a lipstick called Floral Dewy In-Porcelain4. This product integrated ancient Chinese herbal knowledge into modern cosmetic design and has been very popular in the market.
Florasis is committed to managing interactions with individual customers and key influencers in the beauty industry, as this is the basis for the company to implement any strategy. In this process, the customer relationship management (CRM) system5 becomes an effective KM tool. Florasis has established a comprehensive CRM system that allows the brand to build personalized relationships between the company and its customers by tracking their preferences, shopping habits and the interactions with key beauty influencers. In a well-known event of Chinese beauty industry, Florasis improved the formula of its setting powder based through a cooperation with key beauty influencers named Austin Li, which not only improved the product but also earned the attention of customers. In addition to regular interactions with key beauty influencers, Florasis also has a community of more than 200,000 beauty co-creators. This community has strengthened customer loyalty and increased brand influence, further enhancing its position and reputation in the Chinese beauty industry.
Conclusion
Florasis has achieved great success in both domestic and international markets. In China, Florasis has become the highest-ranked domestic beauty brand by gross merchandise volume (GMV). In 2021, its online sales totaled RMB 33.5 million, which even surpassed international competitors like Estee Lauder. Florasis has also made some achievements in global market. In Japan, they developed a special packaging with cherry blossoms and added a light, moisturizing formula for local beauty preferences and climate6.
We can tell that Florasis has created a new “Oriental-style cosmetics R&D ecosystem“7 by using KM tools such as collaborative platforms, customer feedback systems, and CRM. These methods not only help the brand break away from the low-price competition of domestic cosmetics, but also enable it to gain a foothold in the international market.
Artificial intelligence (AI) statement: To assist the preparation of this article, Chen Yangyang used AI to generate some key points on how knowledge management applies to brand building, which then served as the basis for article research.
Article source: Adapted from Florasis(Huaxizi): How Knowledge Management Drives the Success of Chinese-Style Cosmetics, prepared as part of the requirements for completion of course KM6304 Knowledge Management Strategies and Policies in the Nanyang Technological University Singapore Master of Science in Knowledge Management (KM).
Header image source: Created by Chen Yangyang with ChatGPT.
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