Q+A: Zan Chen

WeChat, the popular mobile text and messaging service founded in China, in recent years has developed a new online business platform that allows companies in traditional industries to provide its products and information services. In recent months, this business sector has been growing in popularity in China's business landscape, in large part because of Premier Li Keqiang's "Internet Plus Strategy" which was introduced this year. Zan Chen, founder of Guangdong-based Madonna Lily Corp, which has made the Internet an integral part of its business operations, talks with China Daily about the company's strategies.

Annual sales volume for Laguna Sud, a personal care brand under Madonna Lily Corp, reached 500 million yuan ($80.59 million) in less than two years. What is your secret to achieving such success?

We have a better understanding of WeChat business. Successful WeChat business operators will not attract vendors through brainwashing but try to improve its distribution system.

We offer competitive products to consumers. If the WeChat business platform is a tool, competitive products will make better use of the tool.

The personal care market is a highly competitive market, but Laguna Sud is doing very well. How did Laguna Sud find its niche?

We have to analyze this market from a new perspective. Indeed, the competition is fierce, but the demand is huge.

People are buying personal care products more frequently than they would home appliances and electronic products. Only products in high demand are ideal to be traded on the WeChat business platform.

The growing middle class in China creates ample opportunities for quality personal care businesses, so we decided to explore this market, especially in the soap market.

Our handmade soaps are made to European standards, so consumers can have a better skincare experience.

Can you tell us about Laguna Sud's quality guarantees? Many consumers are concerned about the quality of products offered on the WeChat business platform.

We implement very strict standards in selecting suppliers of raw materials. We run all necessary tests before raw materials are transported to manufacturing bases.

For instance, a certain type of soap requires a 45-day production period and strict pH controls, standards that we follow. We also test more than 400 types of rose powder to make our rose-based soap. We have strict testing procedures to ensure every new product's safety and quality.

We require all raw materials to meet health standards and guarantee that a product's fragrance is not artificially made or added. We partner with farms to ensure that they grow flowers based on our requirements.

Did you expect such a spike in demand for your products?

It is a little bit surprising that the business has grown so fast. The snowball effect generated by using social media allows us to better understand consumers and implement marketing plans easier. We can serve consumers in a more effective and efficient way.

We did feel nervous in the beginning because we did not have a clear concept about what clients needed.

Feedback we've been getting shows we are offering the right products in the market.

Today, the increasing production volume requires everyone in Laguna Sud to pay more attention to quality.

Could you share your long-term development plan with us?

We will strive to make Laguna Sud a renowned personal care brand in the global market. A renowned brand is important in supporting our long-term growth.

We recently partnered with GIMC, one of the best branding companies in Guangdong province, for a massive advertising campaign in China in a bid to provide more support to distributors.

We have also upgraded our packaging of our products. In conclusion, we are aiming to build a sustainable business rather than a short-lived one.

Do you have more to share with us about Madonna Lily Corp?

It takes time to understand a company. Madonna Lily is not only a manufacturing and sales company but a responsible company. We open our production processes to the public so they can better understand the personal care industry.

As a company that helps people discover their beauty, we are also responsible for making our planet clean and beautiful.

We adopt environmentally friendly production technologies and recyclable packaging materials to reduce our impact on the environment. Our products are packed in steel boxes so people can recycle the boxes.

We believe beauty is not only about physical looks, but also about inner strength. It is the idea we want to convey to everyone.

(China Daily European Weekly 05/29/2015 page18)