Korres

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Fashion 223: CompanyReport

Korres Natural Products

Elizabeth Kyi, Andrea Della Mattia, & Jacqueline Trunks

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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 7

SUSTAINABLE & ETHICAL GUIDELINE ADHERENCE 7-8M ARKETING & PROMOTION 9-10

SECTION III: COMPANY PHILOSOPHY 11-15

MISSION STATEMENT 11

CORPORATE SOCIAL RESPONSIBILITY 12-14CODE OF CONDUCT 14-15

CONCLUSION 16

WORKS CITED 17-18

Jacqueline Trunks, Andrea Della Mattia & Elizabeth Kyi 2

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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 makemy 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 topfragrance 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

Cyprus, one in Czech Republic, three in France, two in Germany, one in Korea, one inRussia, one in Singapore, one in Slovakia, two in Spain and two in the United Arab

1 "How we Started: Timeline." Korres Natural Products. N.p., n.d. Web. 1 Feb. 2013..

2 "How we Started: Lena and George Korres." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013.

.3 "Behind the Brand: George Korres." Kit blog. N.p., n.d. Web. 28 Jan. 2013. .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=217http://www.kitcosmetics.com.au/blog/BEHIND-THE-BRAND-GEORGE-KORRES.aspxhttp://www.kitcosmetics.com.au/blog/BEHIND-THE-BRAND-GEORGE-KORRES.aspxhttp://www.kitcosmetics.com.au/blog/BEHIND-THE-BRAND-GEORGE-KORRES.aspxhttp://www.kitcosmetics.com.au/blog/BEHIND-THE-BRAND-GEORGE-KORRES.aspxhttp://www.korres.com/default.aspx?page_id=217

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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 "Around the Globe: Global Presence." KORRES NATURAL PRODUCTS . N.p., n.d. Web. 1 Feb. 2013.

.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.htmhttp://www.pr-inside.com/new-market-report-korres-natural-products-r2974810.htm

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SECTION II: PRODUCTS & PROMOTION

PRODUCT OVERVIEW Korres Natural Products has face and body skincare, hair, suncare, make-up,

fragrance, herbal pharmaceuticals, and oral care in their product mix, as well as awhole 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 ingredient s 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 bothethical and sustainable business practices.

6"Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. .7 "Developing: Product Development." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013.

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SUSTAINABLE PRODUCTS Korres 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 whichare 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 ensuresustainable gift giving.6

SUSTAINABLE BUSINESS PRACTICES Korres 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 Oakand 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

Theyalso 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 "Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. .


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ETHICAL BUSINESS PRACTICES Korres Natural Products deeply values its roots and is dependent upon a network of

individuals that share the vision of sustainable and ethical business, mainly itsfarmers. 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 ADHERENCE Korres 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 byenvironmentally 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.

3. On site audit is performed by an ECOCERT auditor.9

6 "Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. .7 "Developing: Product Development." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013.

.8 "ISO 14000 - Environmental management." ISO - International Organization for Standardization. N.p., n.d. Web. 28 Jan. 2013.

.9 "Natural and Organic Cosmetics." Ecocert - Certification body . N.p., n.d. Web. 28 Jan. 2013.

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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



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M ARKETING & PROMOTION In 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, nat urally-derived ingredients. Our products are further enriched

with plant extracts”.10

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 Sephoracustomer 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 brand 11

10 "All About Korres." Korres Natural Products. Johnson & Johnson Consumer Companies, Inc., n.d. Web. 28 Jan. 2013.

.11 "Korres." Sephora. N.p., n.d. Web. 28 Jan. 2013. .


http://www.sephora.com/korreshttp://www.sephora.com/korres

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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.12

Korres’ Facebook fan page has approximately 26,000 likes.13

12 "Korres." Twitter. N.p., n.d. Web. 28 Jan. 2013. .13 "Korres." Facebook. N.p., n.d. Web. 28 Jan. 2013. .


https://twitter.com/KORRES_OFFICIALhttps://www.facebook.com/korres?fref=tshttps://www.facebook.com/korres?fref=tshttps://twitter.com/KORRES_OFFICIAL

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SECTION III: COMPANY PHILOSOPHY

MISSION STATEMENT

“In the beginning, our goal was to use natural, herbal ingredients in aneffective 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 Korres10

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

Theoverall 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 "All About Korres." Korres Natural Products. Johnson & Johnson Consumer Companies, Inc., n.d. Web. 28 Jan. 2013.

. 1 "How we Started: Timeline." Korres Natural Products. N.p., n.d. Web. 1 Feb. 2013.

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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



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Korres also contributes t oward Friends of Oak & Nature, which is a union on a mission to

protect the biggest Oak f orest in Southeast Europe that is currently threatened by illegal

wood-cutting and arson.6

CODE OF CONDUCT

Korres 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 consciouseffort to minimize wast e, recycle whenever possible, and encourage all employees to be

environmentally aware.14

6 "Our Heart." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. . 14 "Eco Conscious Policy." Korres Natural Products. Johnson & Johnson Consumer Companies, Inc., n.d. Web. 2 Jan. 2013.

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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. Unlikecompetitors, 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.15

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”.16 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 ingredienttable 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 Fletcher, Kate. "Ethically Made." Sustainable fashion and textiles: design journeys. London: Earthscan, 2008. 61-73. Print.16 "Natural formulations, maximum results." Korres Natural Products. N.p., n.d. Web. 28 Jan. 2013. .


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Korres

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