Skincare brand Rodial has built a solid reputation and a loyal client base. But it hasn't been the smoothest ride
Last year when a tabloid newspaper quoted a plastic surgeon attacking a Rodial product it could have been disastrous for the company. Luckily over the 12 years since it was launched, founder Maria Hatzistefanis has built up a trustworthy business and the incident didn't have serious consequences.
The issue for her was not that the plastic surgeon said Rodial's bust-firming and toning cream, Boob Job, didn't work but that she claimed it was dangerous. "It's fair enough for someone to say the product doesn't work, that's their opinion. But to say it could be dangerous and could cause cancer, those are very strong allegations," says Hatzistefanis.
If Rodial had just launched when the story broke it might well have been detrimental to the business. But having built up a loyal client base its products continued to sell well.
Started from a tiny home office with £20,000, Rodial produces high-end beauty products heralded as a natural alternative to cosmetic surgery. The company will turn over £15m this year and its products are sold in 35 countries. It has cornered an impressive two per cent of the UK's luxury skincare market and won the support of top beauty editors as well as a loyal celebrity following.
Hatzistefanis has grown the brand through PR and word of mouth. Building reputation and trust has been crucial, she says. "We have mechanisms in place to make sure we build trust before customers buy the product – such as giving mini-facials in stores and giving out samples."
Rodial's values have also been important, adds Hatzistefanis. "We use as many natural and quality ingredients as we can. We also work with an independent UK lab that tests all the products for us to make sure they are good quality and safe to use," she says.
Hatzistefanis says the best way to build relationships and trust with customers is simply by being there. "We have people at the end of the phone and on email to answer questions and advise our customers how to use products. If a product doesn't work for someone we offer a full refund. If someone doesn't receive their package we'll send them another free of charge."
Reputation is vital for any company, particularly in the skincare sector. "It can make or break your business," she says. "But it's not always a smooth ride so it's important to do the right thing to secure your reputation and make customers feel confident you are there."
Over the next decade Hatzistefanis wants to capture 20 per cent of the UK's luxury skincare market and develop the brand into a household name – both in Britain and internationally. "It's not something that's going to happen overnight. It's all about building trust and loyal customers, repeat purchases and, by talking to customers, making sure we offer products that solve specific problems," she says.
Charles Johnson, relationship director, Santander Corporate Banking
The big challenge for Rodial was the adverse media coverage it had received. This might have had a detrimental effect on product reputation but fortunately didn't. This was largely due to Maria Hatzistefanis having successfully developed a loyal customer base in the 12 years since the business launched.
Rodial's experience emphasises the need for entrepreneurs to be consistent and determined when building up and maintaining their key brand and developing a reputation that is more than just "skin-deep". This has been achieved by the company sticking to the brand's core values, which included pre-sale demonstrations of the product, the use of natural ingredients and carrying out full testing procedures.
Hatzistefanis is clearly ambitious in her plans for Rodial, but equally she is realistic. From a funding point of view banks prefer this cautious approach – we
don't like to see any business grow too rapidly, which
creates as many problems as lack of growth.
Building long-term relationships and placing the customer at the heart of
what you do is important for any business.
At Santander Corporate Banking we also listen to, and seek an in-depth understanding of, our customers with the aim of becoming a trusted adviser rather than simply a provider of appropriate finance.
