Candice Alvarado & Kaitlin Andreas

Joan Kelly

Brand Strategy

29 April 2011

The Nail Care Branding Battle: OPI vs. China Glaze

OPI Products Incorporated has been a leader in the beauty industry since it was first

founded in 1981, and today is most well known for its prestigious, professional quality nail color and

nail-care products. OPI is one of the most recognizable and branded companies in the international

beauty industry as far as nail polish is concerned. Its products are primarily sold in salons and

professional beauty retail stores in over 70 countries worldwide (Hoovers). Boasting annual sales of

about $300 million dollars, and the OPI Products company and brand itself is rumored to be valued

at around $1 billion dollars (OPI Products). OPI.com states that the OPI brand is “committed to

providing our customers with the finest quality in products and services” (OPI). Offering over 200

colors, based on current trends, movies, celebrities, cities and themes.

Senior Beauty Analyst, Vivienne Rudd, says that “nail polish has performed very well despite

the economic downturn…while women on a budget may hesitate to buy a new dress or shoes, nail

polish may be used as an economical means to update their look and keep abreast of fashion” (Daily

Mail). Researchers found that “seven in ten women aged 15-24 paint their nails, with a minority, one

in five women in their early twenties, applying nail color at least once a week” (Daily). Nail color is a

quick way to accessorize an outfit, in any season, at a very low cost and this nail color trend is

predicted to continue to grow as consumers continue to look for ways to save money. The prestige

beauty industry generated $8.4 billion dollars in 2010, a 4% increase from sales in 2009, this is seen

in the chart below.

This was believed to be fueled by the double-digit growth of offerings from primers to anti-

aging face products, to rich color options in lip and nail, five of the six segments within makeup

posted growth. Three segments either met or outpaced category growth: Face(+3%), Lip (+3%),

and Nail (+39%)” (NPD).The prestige beauty industry has experienced growth not only in the

United States but internationally which can be seen in the table above. NPD reports that “prestige

nail care posted the biggest increase, followed by prestige makeup, and prestige fragrance” (NPD).

These increases in the beauty industry show that the economy is improving and women are

returning to their pre-recession spending habits and find it easier to spend $20 to $50 on beauty

products rather than going out and buying a $200 outfit. Given the increase in nail color, it is visible

in many retail stores and many apparel retailers such as Forever 21, J. Crew, and American Apparel

have expanded their product offerings including offering nail color. Although the nail color trend is

creating sales across the board in the retail and beauty industries, the two companies that continue to

dominate the nail care market are OPI and China Glaze.

OPI’s closest competitor, also a popular name in the nail polish market is China Glaze

Corporation, founded in 1998. China Glaze claims to be one of the top professional nail care

products available, and uses a one-of-a-kind formula including China Clay as a nail hardener (China

Glaze). Although it is a close competitor, it’s advertising campaigns and branding aren’t nearly as

successful as OPI. This is shown by a comparison of site visits by Quantcast, to both OPI.com and

ChinaGlaze.com throughout the last year. The OPI site had an average of 37.2 thousand views per

month while the China Glaze site only had average monthly views of 5.2 thousand consumers. This

data can be visually seen and compared in the chart below.

The nail care industry is wide and vast, now with many apparel retailers developing nail

colors for each season, along with nearly every cosmetic brand featuring a nail color line. However,

OPI and China Glaze stand out from those competitors since their main product focus is nail care,

specifically nail color. Both companies carefully follow fashion color trends in order to predict

future color trends and develop nail colors to compliment and accessories the fashion trends in

apparel and accessories. The product from both brands could be seen as identical, as they both are

about the same relative size, 3.5 inches tall and 1.5 inches in diameter, both containing .5 fluid

ounces of nail polish. It is hard to determine if even the nail polish inside the bottles is extremely

different, however one thing that makes OPI stand out from China Glaze is it’s branding strategy.

OPI is never lacking in their creative. They are constantly creating new and exciting products and

campaigns to stay up to date with their consumers and using pop culture as a way to do so. OPI’s

campaigns distinguish them from their competition and have helped the brand stand out in the

customer’s mind. OPI partners with movies and television shows to create color themes for them.

Movies such as Shrek Forever After, Alice in Wonderland, Pirates of the Caribbean and Burlesque

all have nail polish with coordinating colors. Shows like Glee and Gossip Girl which are both very

popular among the public also have their own nail color line.

Another way OPI stands out from its competitors are the celebrities that represent the

brand. Katy Perry who is rising the charts in today’s music industry has her own OPI nail color line

which fit her music and her personality; therefore, Katy Perry’s fans that admire her have another

way to connect with her. Other celebrities that represent OPI include Lady Gaga whose style is

updates as often as each OPI line and Serena Williams who is an iconic athlete to women.

OPI has also partnered with Dell for another campaign. Consumers who love OPI or who

love Dell and want a computer with style can now purchase Dell laptops in some of OPI’s most

popular colors. Dell users can now express their individuality and feel trendy with their colored

laptops.

Another example OPI’s is a fashion forward brand is their constant ability to create new up

to date lines. Seasonal spring and fall lines that give their consumers ability to be fashionable right

down to the smallest detail are popular among consumers and constantly being updated. Not only

does OPI create nail color lines for season, but also for destination. Their most recent destination

line is for the southern country girl, “TEXAS”. Colors for this line include: San Tan-tonio; Big

Hair…Big Nails; Austin-tatious Turquoise; Don’t Mess With OPI, It’s Totally Fort Worth It; Do

You Think I’m Texy; Houston We Have a Purple, etc. Other destination lines include South Beach,

Hong Kong and Spain.

OPI is such a strong, innovative, and fashion forward brand that it’s competitor China Glaze

has trouble keeping up, though they’ve been trying. Similar to OPI’s campaigns China Glaze has

tried to target the same market, but with less success. China Glaze recently released a “Crackle

Glaze” which is similar to Katy Perry’s line, but without a recognizable, popular face behind the line

or the brand it doesn’t even compare. They have also created a destination line, “Island Escape”

though once again in comparison to such a strong brand China Glaze’s destination line has been less

successful. They have also tried to channel the movie business through Tronica and Up & Away.

These lines however aren’t taken directly from the movies, but have their own creative twist on

them. China Glaze does not have the same ability to keep up or get ahead in the market like OPI

does, therefore they keep falling behind.

Using Young and Rubican’s Brand Asset Valuator we can see why OPI is such a success

brand that stands out in the market place. OPI’s brand value as a prestigious nail polish brand,

fashion forward sense and trendy colors are what OPI is known for and what consumers have come

to expect from the brand. Their brand is vital among consumers because their creative color names,

color themes based off pop culture and the quality of the nail polish have made OPI a high

demanding product. Their brand stature is strong! When consumers think of nail polish, they think

of OPI. They know they are going to get high quality nail polish that lasts and is fashionable which is

important to their target consumers. OPI’s innovate and creative ideas differentiate them from their

competitors. Other brands may try to market their products similar to OPI but OPI is staying ahead,

they know what is popular among consumers, and what their consumers want before anyone else

which is why they are such a successful, strong, well known brand. Their creative campaigns that

target consumers who are specifically interested in that movie, or that celebrity, or that destination

make the brand relevant and attractive to their target consumer. It makes their consumer feel trendy,

chic, and good about herself, so consumers hold OPI to a certain standard because they have

adapted to the product and use to having a higher esteem because of it. They also know what the

brand is about and its image. Consumers know OPI.