Brand Evolution at SK-II

SK-II, a leading luxury beauty brand in Japan, was experiencing a decline, losing customers to aggressive rivals, and struggling to stay compelling in a changing society. This loss of momentum called for a new strategy that would transform the brand and transcend the competition. The case describes the market landscape, economic, societal and technological changes, as well as SK-II’s prior strategies and their implementation. In developing a new strategy, it had to decide 1) whether to incorporate the issue of gender equality into the brand purpose; 2) how to revolutionize the brand experience by integrating digital technology in every aspect; 3) how to leverage social media, the metaverse and other media platforms synergistically; 4) how to work with celebrities as well as influencers to create an engaging and prestigious brand image. The case takes students through the process of assessing the pros and cons associated with the potential options, crafting a strategy, and developing a detailed implementation plan.