company report: korres natural products

Korres Natural Products

Fashion 223: Company Report


Table of Contents

SECTION I: HISTORY & PROFILE 3-4

SECTION II: PRODUCTS & PROMOTION 5-10

PRODUCT OVERVIEW 5SUSTAINABLE PRODUCTS & BUSINESS PRACTICES 6ETHICAL BUSINESS PRACTICES 7SUSTAINABLE & ETHICAL GUIDELINE ADHERENCE 7-8MARKETING & PROMOTION 9-10

SECTION III: COMPANY PHILOSOPHY 11-15

MISSION STATEMENT 11CORPORATE SOCIAL RESPONSIBILITY 12-14CODE OF CONDUCT 14-15

CONCLUSION 16

WORKS CITED 17-18

Jacqueline Trunks, Andrea Della Mattia & Elizabeth Kyi 2



SECTION I: HISTORY & PROFILE

George and Lena Korres founded Korres Natural Products in 1996 in Athens, Greece.1 George started playing with ingredients and products when he was just eight years old in his mother’s pharmacy. He would always say “I’m going to make my own face creams when I grow up”.1 He went on to study pharmaceuticals in 1988 at the Pharmacy School of the University of Athens. This is where he truly fell in love with herbal preparations, natural remedies, and cosmetics. When he opened his first retail store in 1996, the philosophy was “the use of natural and/or certified organic ingredients of the highest quality”.1 Lena is currently the Brand Development Director for Korres.2

The first product Korres made was aromatic herbal syrup with honey and aniseed, which George’s grandfather used back in his hometown. The brands most well known product was launched the same year. This product is a Wild Rose 24 hour moisturizing and brightening cream. It went on to be a world best seller.1

Their second best seller was three years in the making, a yoghurt cooling gel that was 100% edible. This product sold over 1,000 pieces per day since the day it hit the market, becoming an instant international best seller.1 In late 2003, Greece’s Head of State awarded George Korres the Innovation and Business Development Award for this yoghurt product.1 In 2004, Korres opened two stores in Spain and joined the Sephora network, which is a global chain of cosmetic stores. 1 That same year, Korres was awarded the Nobel Prize for their research on anti-aging and the ubiquitin-proteasome system.3

In the following years, Korres finally hit Asia and began to work with the world’s top fragrance houses in Tokyo, Geneva and Gras, on three unique formulations to best represent the brand’s mood through scent.1 One of Korres best appreciation comments came from Marie Clare in 2012 that named Korres products as one of the top twenty-five products that will change your life.1 In 2011 Korres turned fifteen years old and in honour of this, George decided to revisit his grandfather’s recipes and introduced a limited time rakomelon recipe in celebration.1

Today Korres employs more than 300 employees in countries such as Greece, where its head office is located, Germany, France, Russia, Korea, Bulgaria, Czech Republic, and Singapore.4 There are currently five stores in Greece, one in Bulgaria, one in

1 "How we Started: Timeline." Korres Natural Products. N.p., n.d. Web. 1 Feb. 2013. <http://www.korres.com/default.aspx?page_id=198>.

2 "How we Started: Lena and George Korres." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=217>.

3 "Behind the Brand: George Korres." Kit blog. N.p., n.d. Web. 28 Jan. 2013. <http://www.kitcosmetics.com.au/blog/BEHIND-THE-BRAND-GEORGE-KORRES.aspx>.

4 "Around the Globe: Global Presence." Korres Natural Products. N.p., n.d. Web. 1 Feb. 2013. <http://www.korres.com/default.aspx?page_id=238>.




Cyprus, one in Czech Republic, three in France, two in Germany, one in Korea, one in Russia, one in Singapore, one in Slovakia, two in Spain and two in the United Arab Emirates.2 Including Sephora, Korres has also been added to the Shoppers Drug Mart, Harvey Nichols, and Bloomingdales product line up in America, Canada, Asia, Australia, India, and Europe.2 Korres was originally privately owned by George Korres himself, but is now corporately run and publicly traded. In North America, Johnson and Johnson distributes its products.5

2 2 "Around the Globe: Global Presence." KORRES NATURAL PRODUCTS. N.p., n.d. Web. 1 Feb. 2013. <http://www.korres.com/default.aspx?page_id=238>.

5 "Korres Natural Products SA (KORRES) - Financial and Strategic SWOT Analysis Review." New Market Report. N.p., n.d. Web. 28 Jan. 2013. <http://www.pr-inside.com/new-market-report-korres-natural-products-r2974810.htm>.




SECTION II: PRODUCTS & PROMOTION

PRODUCT OVERVIEWKorres Natural Products has face and body skincare, hair, suncare, make-up, fragrance, herbal pharmaceuticals, and oral care in their product mix, as well as a whole line dedicated to men. Their product line-up contains moisturizers, cleansers, scrubs and masks, serums, and regimen kits. Collections are based on different natural ingredients such as quercetin and oak, wild rose, pomegranate, yoghurt and milk proteins.

Their product development is based on their research findings, as well as their commitment to develop “skin and environmentally friendly formulations with a natural content varying between 80-99.80%”.6 Their natural ingredients are derived from medicinal herbs, Greek flora, food ingredients, and natural actives.7 Each product label very obviously lists what ingredients are and are not present in the product, as well as the product’s natural content by percent.

Quercetin and Oak Day Cream, Korres7

Korres Natural Products produces sustainable products and conducts both ethical and sustainable business practices.

6"Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=235>.

7 "Developing: Product Development." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=222>.





SUSTAINABLE PRODUCTSKorres as a company displays one of the highest levels of commitment to all-natural formulations. All of their products are based on natural ingredients, many of which are certified organic. The company avoids the use of non-biodegradable ingredients, particularly avoiding synthetic components and preservatives that can account for approximately 30-60% of a cosmetic product. Chemicals such as mineral oils, silicones, parabens, and propylene glycol are especially avoided due to their harshness.6

Not only are the products themselves sustainable, but so is the packaging, as it is 99% recyclable. Korres uses environmentally friendly packaging materials and designs each product so that each individual part can be separated and recycled. They ultimately try to avoid excess packaging by eliminating boxes for their hair and body products. Any gift boxes are also made out of recyclable cardboard to ensure sustainable gift giving.6

SUSTAINABLE BUSINESS PRACTICESKorres sustainable business practices primarily focus on the heart and root of the operation – the organic farmer. The company uses micro farmers that follow necessary procedures to ensure the sustainability of local flora and in providing certified organic crops.6 The farmers, known as “plant hunters”, serve to protect Greece’s 1200 indigenous flora by selecting ideal cultivation regions based on climate and soil criteria. This is especially important in protecting the endangered herbs and in sustaining plant populations.6 Korres also helps out “Friends of Oak and Nature” by contributing to the replacement of illegally cut oak trees. They donate to an annual fund and cooperate with local authorities in terms of a protection plan.6

Another of Korres’ sustainable business practices focuses on the production and supply chain. Most notable is the use of 100% renewable energy in their GREEN GUARANTEE™ certified plant, which operates on hydroelectric power from their steam generators. 6 Their headquarters are also ISO and ECOCERT certified, as is their environmentally friendly herb extract unit. During the extraction process, the residue is turned into organic soil and sent back to the organic farmers, which results in a no-waste operation, as well as supports the local organic farmers. 6 They also use natural solvents, despite the higher cost. Lastly, they also aim to impact distribution, as 98% of global markets are air-shipment free in order to reduce air transfers.6

6 6 "Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=235>.





ETHICAL BUSINESS PRACTICESKorres Natural Products deeply values its roots and is dependent upon a network of individuals that share the vision of sustainable and ethical business, mainly its farmers. Korres cooperates with micro-farmers, agricultural unions, and educational and social institutions including rehabilitation and prison farms.6 They aim to teach their partners about organic farming and sustainable agricultural systems and support them financially through purchasing their produce to be used in product formulations. They support solely organic farming through contractual agreements and choose not to cultivate themselves in order to support the farmers and their unions, as well as the community.6 Korres also works to include individuals with special needs into their network in order to provide them with vocational experience. 6 As much as Korres values its community and people, it also values the animals by using no animal testing or animal by-products, therefore making all products vegetarian and in some cases even vegan. 7

ETHICAL & SUSTAINABLE GUIDELINE ADHERENCEKorres Natural Products ensures their products adhere to ethical and sustainable guidelines both internally and externally. Third parties such as the ISO certify the Korres’ plant for Quality Management, Cosmetics: Good Manufacturing Practices, and Environmental Management System. 8 The last certification is the most important, as it addresses environmental impact and performance. ECOCERT has also certified Korres for Natural and Organic Cosmetics.9 The principles of this standard maintain:

1. The use of ingredients derived from renewable resources, manufactured by environmentally friendly processes. ECOCERT therefore checks:

The absence of GMO, parabens, phenoxyethanol, nanoparticles, silicon, PEG, synthetic perfumes and dyes, animal-derived ingredients (unless naturally produced by them: milk, honey, etc.).

The biodegradable or recyclable nature of packaging. 2. A minimum threshold of natural ingredients from organic farming to be reached to

obtain certification: For the natural and organic cosmetic label: a minimum of 95% of all plant-based

ingredients in the formula and a minimum of 10% of all ingredients by weight must come from organic farming.

6 6 "Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=235>.

8 7 "Developing: Product Development." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=222>.

8 "ISO 14000 - Environmental management." ISO - International Organization for Standardization. N.p., n.d. Web. 28 Jan. 2013. <http://www.iso.org/iso/home/standards/management-standards/iso14000.htm>.

9 "Natural and Organic Cosmetics." Ecocert - Certification body. N.p., n.d. Web. 28 Jan. 2013. <http://www.ecocert.com/en/natural-and-organic-cosmetics>.



Korres Natural Products3. On site audit is performed by an ECOCERT auditor.9

Internally, it is part of Korres’ corporate culture to maximize sustainability as a business. Codes of conduct and policies encourage guideline adherence. An example is Korres’ thorough recycling policy for plastic, paper, glass, and merchandise products. Korres proactively promotes sustainability through educational seminars, which are ongoing for employees. 6

66 "Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=235>.





MARKETING & PROMOTIONIn North America, Korres is predominantly promoted as a natural skincare, hair care, and cosmetics company with roots in Greek homeopathic remedies. Korres’ Canadian website, Korres.ca, states:

“We believe that what we leave out of our products is as important as what we put in. We are committed to developing safe, effective, natural products by avoiding chemicals and synthetic ingredients when possible, replacing them with beneficial, skin-compatible, naturally-derived ingredients. Our products are further enriched with plant extracts”.1010

Korres is not heavily focused on advertisement in any form and is promoted through its international distributors and word-of-mouth. Their marketing strategy focuses on their mode of distribution, Sephora in the U.S. and Canada, as it is such a large retailer that comes with marketing and promotion in tow. Any Sephora customer will undoubtedly come in contact with the Korres brand, therefore in-house marketing is unnecessary. Korres uses country-specific promotional websites, such as korres.com, to disseminate information about the brand and products and uses Sephora’s website as its transactional website.

Sephora’s introduction of the Korres brand1111

10 10 "All About Korres." Korres Natural Products. Johnson & Johnson Consumer Companies, Inc., n.d. Web. 28 Jan. 2013. <https://www.korresusa.com/all-about-korres>.

1111 "Korres." Sephora. N.p., n.d. Web. 28 Jan. 2013. <www.sephora.com/korres>.





Korres utilizes social media as a means of marketing and promotion, as they maintain both a Twitter account and a Facebook fan page.

Korres’ Twitter account has approximately 3,700 followers.1212

Korres’ Facebook fan page has approximately 26,000 likes.1313

1212 "Korres." Twitter. N.p., n.d. Web. 28 Jan. 2013. <https://twitter.com/KORRES_OFFICIAL>.1313 "Korres." Facebook. N.p., n.d. Web. 28 Jan. 2013. <https://www.facebook.com/korres?fref=ts>.




SECTION III: COMPANY PHILOSOPHY

MISSION STATEMENT

“In the beginning, our goal was to use natural, herbal ingredients in an effective and safe way to make products we’re proud of for the people we love. Today, our goal remains the same. By always doing what we believe is right—avoiding harsh chemicals, relying on both basic and applied science, helping organic farmers, supporting local communities, protecting natural resources—we have accomplished something unique. By doing what we love, we have created products that people love.”

- George Korres1010

George Korres, about 25 years ago, put his passion for homeopathic pharmaceuticals into action and founded the Korres brand. As a small-scale brand based out of Greece, Korres began and has remained dedicated to ideas of ethical and sustainable practice.1 The overall company mission encompasses the following three ideals:

Use of natural, herbal ingredients Helping farmers and communities Protecting natural resources10

In general, the brand aims to create products that are safe for skin and the environment.

10 10 "All About Korres." Korres Natural Products. Johnson & Johnson Consumer Companies, Inc., n.d. Web. 28 Jan. 2013. <https://www.korresusa.com/all-about-korres>.

1 1 "How we Started: Timeline." Korres Natural Products. N.p., n.d. Web. 1 Feb. 2013. <http://www.korres.com/default.aspx?page_id=198>.





CORPORATE SOCIAL RESPONSIBILITY Korres employs Korres provides a Corporate Social Responsibility report for public consumption on their international website. The full report can be found at:

http://www.korres.com/default.aspx?page_id=235

They term the report “Our Heart”, befitting because their entire business plan seems to revolve around their incorporation of ethical and sustainable business practices in all stages of production. Thus the heart of their company lies in the concepts outlined in their CSR.

Korres breaks down their CSR into seven main categories: 1. Herbs2. Co-operations3. Extractions4. Research5. How We Produce6. Eco7. Our People (coming soon to their CSR)

HERBS

Korres emphasizes their commitment to all natural ingredients and the healing power of herbs and homeopathic remedies. This sections focuses on the protective and moisturizing properties of wild rose, pomegranate as a rich source of minerals and antioxidants, and the antibacterial nature of achillea. This section also highlights the importance the company places on safeguarding natural ingredients and sustaining plant populations.

Korres collaborates with the agricultural sectors of local communities in order to source their plants under ideal cultivation environments while supporting local farms and aiding social issues such as unemployment, underdeveloped rural regions, and insufficient funding within the local agricultural sector. As a company, they aim to strengthen local economies while ensuring ideal conditions for the growth of their quality natural ingredients.6

CO-OPERATIONS

Korres purposely hires local organic farmers on a contractual basis instead of growing their own ingredients in a vertically integrated business system, in active pursuit of working with rather than against the local economy.6

66 "Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=235>.6





The company co-operates with a selection of micro-farmers, agricultural unions in the production and collection of the plants and herbs used in their products.6 They also work with a host of social and educational institutions. One of them is a prison farm in which detainees are taught sustainable and organic farming practices and are financially supported by Korres while held in detention.6 Another is a centre for those who have been substance abusers; this co-operation allows patients to acquire professional skills.6

A full list of Korres’s co-operates is listed in the CSR.

EXTRACTIONS

This section runs through the process by which Korres extracts active ingredients from plants at their own environmentally friendly, ISO and ECOCERT certified herb extraction unit. They use natural rather than chemical solvents so that the residue can be turned into organic soil and sent back to their network of organic farmers, creating an entirely no-waste operation. 6

RESEARCH

Korres is dedicated to finding homeopathic remedies for cosmetic issues using primary and applied research based on verified benefits and clinical efficacy. They heed an ongoing commitment to projecting the benefits of herbs and develop environmentally friendly products that are comprised of a natural content ranging from 80-99%.6 Korres recognizes the growing prevalence of green-washing in the cosmetics industry and thus strives to be entirely transparent with consumers about the ingredients of Korres products.6

HOW WE PRODUCE

Korres prioritizes quality in their production. As a company, they strive to exceed compliance standards for pharmaceuticals. Furthermore, they apply these strict standards to all stages of production and distribution.6

ECO

Every business decision within the company is fueled by their core value of doing the right thing. All formulations are developed with certified organic ingredients and all ingredients are collected in a manner that protects endangered herbs and sustains plant populations. Korres avoids the use of chemicals that can harm both skin and the environment and stick to biodegradable ingredients.6

They have also developed a plant extraction method that results in up to eleven derivatives being extracted from a single plant to be used in formulations. Residue is then turned into organic soil and returned to organic farms to be reused.6

66 "Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=235>.





Korres also contributes toward Friends of Oak & Nature, which is a union on a mission to protect the biggest Oak forest in Southeast Europe that is currently threatened by illegal wood-cutting and arson.6

CODE OF CONDUCTKorres provides the Code of Conduct, entitled “Eco-Conscious Policy”, by which they dictate their business practice at the following link:

http://www.korresusa.com/all-about-korres/eco-conscious-policy

They exercise an active commitment towards acknowledging and monitoring their environmental impact and the environmental impact of others. They avoid the use of ingredients that are not entirely biodegradable wherever possible, make a conscious effort to minimize waste, recycle whenever possible, and encourage all employees to be environmentally aware.1414

66 "Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=235>.14 14 "Eco Conscious Policy." Korres Natural Products. Johnson & Johnson Consumer Companies, Inc., n.d. Web. 2 Jan.

2013. <https://www.korresusa.com/all-about-korres/eco-conscious-policy>.




CONCLUSION

Despite the commonplace practice of green-washing in the cosmetics and skincare industry, Korres natural products is committed to upholding their values and codes of conduct and maintaining transparency in their communications. Unlike competitors, Korres goes above and beyond external environmental requirements by following a number of Donna Meadows suggestions to create change including: (4) the rules of the system, (3) the power of self-organization, (2) the goals of the system, and (1) the mindset or paradigm out of which systems arise.1515

In terms of the future “Korres Natural Products is committed to the continuous effort of meeting our customers’ needs, while improving the environmental performance in all company activities”.1616 Korres works to continually educate team members and inform consumers about the importance of sustainable and ethical business practices: “The makers of Korres set a new standard by educating consumers about their products through the use of a clear and factual ingredient table on the label of each product. This reflects the honest and genuinely caring approach that Korres customers have come to expect”.16

Since its inception, Korres Natural Products has been a model company that has paved the way for a new generation of businesses in the cosmetics and skincare industry. With their growing success and international following in the mainstream beauty world, Korres has established a new set of standards for sustainable and ethical business practices. They truly are an incredible company.

15 15 Fletcher, Kate. "Ethically Made." Sustainable fashion and textiles: design journeys. London: Earthscan, 2008. 61-73. Print.

16 16 "Natural formulations, maximum results." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.ca/>.




WORKS CITED

"All About Korres." Korres Natural Products. Johnson & Johnson Consumer Companies, Inc., n.d. Web. 28 Jan. 2013. <https://www.korresusa.com/all-about-korres>.

"Around the Globe: Global Presence." Korres Natural Products. N.p., n.d. Web. 1 Feb. 2013. <http://www.korres.com/default.aspx?page_id=238>.

"Behind the brand: George Korres." Kit blog. N.p., n.d. Web. 28 Jan. 2013. <http://www.kitcosmetics.com.au/blog/BEHIND-THE-BRAND-GEORGE-KORRES.aspx>.

"Developing: Product Development." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=222>.

"Eco Conscious Policy." Korres Natural Products. Johnson & Johnson Consumer Companies, Inc., n.d. Web. 2 Jan. 2013. <https://www.korresusa.com/all-about-korres/eco-conscious-policy>.

"Korres." Facebook. N.p., n.d. Web. 28 Jan. 2013. <https://www.facebook.com/korres?fref=ts>.

"Korres." Twitter. N.p., n.d. Web. 28 Jan. 2013. <https://twitter.com/KORRES_OFFICIAL>.

"Korres." Sephora. N.p., n.d. Web. 28 Jan. 2013. <www.sephora.com/korres>.

"Korres Natural Products SA (KORRES) - Financial and Strategic SWOT Analysis Review." New Market Report. N.p., n.d. Web. 28 Jan. 2013. <http://www.pr-inside.com/new-market-report-korres-natural-products-r2974810.htm>.

Fletcher, Kate. "Ethically Made." Sustainable fashion and textiles: design journeys. London: Earthscan, 2008. 61-73. Print.

"How we Started: Timeline." Korres Natural Products. N.p., n.d. Web. 1 Feb. 2013. <http://www.korres.com/default.aspx?page_id=198>.

"How we Started: Lena and George Korres." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=217>.

"ISO 14000 - Environmental management." ISO - International Organization for Standardization. N.p., n.d. Web. 28 Jan. 2013. <http://www.iso.org/iso/home/standards/management-standards/iso140




00.htm>.

"Natural and Organic Cosmetics." Ecocert - Certification body. N.p., n.d. Web. 28 Jan. 2013. <http://www.ecocert.com/en/natural-and-organic-cosmetics>.

"Natural formulations, maximum results." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.ca/>.

"Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. <http://www.korres.com/default.aspx?page_id=235>.


company report: korres natural products

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