Kiehl's
Encyclopedia
Kiehl's is an American cosmetics
brand retailer that specializes in making premium skin, hair, and body care products. Founded as a single pharmacy
in New York City's East Village
in 1851, Kiehl’s was purchased by the L'Oréal Group in 2000 and currently has more than 30 retail stores worldwide, supplemented by sales in high-end department stores.
In contrast to its market competitors, Kiehl’s is distinguished for its unorthodox marketing approach, exceptionally large male clientele base and its products' simple and straightforward packaging.
pharmacy located at 3rd Avenue and 13th Street in the East Village of New York City. In 1921, Irving Morse, a former apprentice and Russian Jewish émigré who had studied pharmacology
at Columbia University
, purchased the store. Morse was involved in the development of many Kiehl’s products that are still popular today, including Blue Astringent Herbal Lotion and Creme de Corps.
Irving’s son, Aaron Morse, who also studied pharmacology at Columbia and was a former World War II
pilot, took over the store in the 1960’s. The younger Morse was credited for propelling Kiehl’s from obscurity in the 1950s to international recognition as an upscale natural cosmetics shop in the 1980s. Aaron transitioned the store from the traditional pharmaceuticals his fathered preferred to develop skin care lines. After he died in 1995, his desk and some of his vintage motorcycles were prominently showcased in the store.
By then, Aaron's daughter, Jami Morse Heidegger, had been operating the business since 1988. Described as "a clever marketer," she relied on word of mouth and extensive free samples and gifts to market Kiehl's products, rather than traditional advertising.
In April 2000, the French beauty and cosmetics company L'Oréal
acquired Kiehl's for between $100-$150 million. L'Oréal had pursued the purchase of the company for more than two years but the real catalyst for a deal came when Kiehl's had difficulty handling the growing volume of orders due to the company's growing popularity. Morse Heidegger, then president of Kiehl's, said, "We took a long hard look at the situation, and we felt that in order to keep up with the demand, in order to not be out of stock, in order to fulfill our destiny, if you will, we needed to take on a partner."
With the purchase, L'Oréal stated it planned "to increase the brand's presence but maintain it as a luxury line rather than a mass-market one." Kiehl's would also be expanded internationally. At the same time, Kiehl's newly appointed president Michelle Taylor said, "The thing most important to me is to keep Kiehl's true to what it is. Respect for old-fashioned values is really who we are."
, Barneys, Bergdorf Goodman
, Saks Fifth Avenue
and Harvey Nichols
. Following its acquisition by L'Oréal though, the company expanded from its one Manhattan flagship store to more than 30 stores today. Kiehl's sales have also more than quadrupled, increasing from $40 million in 2000 to past $200 million in 2009.
concept." To this day, Kiehl’s signature products, such as its Blue Astringent, Creme de Corps and Original Musk Oil, continue to remain customer favorites.
To market its products, Kiehl’s applies a non-traditional marketing approach that "relies heavily on free product samples, word of mouth endorsements from existing customers, and innovative marketing techniques." Particularly known for its generous sampling policy, "Kiehl’s gave away more than 12 million samples a year, which represents 80 percent of their total marketing budget" according to Lynn Upshaw in Truth: The New Rules for Marketing in a Skeptical World. Upshaw writes, “The Kiehl’s way of ‘selling’ is not to sell at all… They believe the products will do what they do and no hype will change that.” Donations, most prominently in charity event gift bags, also attract customers.
On a local store level, Kiehl’s works to understand each new location and develop a unique approach for that market. For example, for the opening a new store in New York's Upper West Side
, Kiehl’s supported improvements to a local playground in Central Park
, a hot community topic at the time. Within the stores, Kiehl’s is known for its focus on customer service
and its "retail brand experience." Their lab-coated staff undergoes an "intensive four-week residency schooling that drills them in the chemistry, use and application of Kiehl’s products."
, nearly half of all customers are men. According to Wendy Liebmann, chief executive of New York research firm WSL Strategic Retail, “Kiehl's changes the paradigm with a health and wellness approach that demystifies cosmetics. There's no intimidating hocus-pocus. It feels authentic and fun.”
. More than 40 years ago, Aaron Morse wrote the “Mission of Kiehl’s,” a 137-word statement which committed the company to the objective of “making for better citizens, better firms, and better communities.” Today, the cosmetics retailer is focused on three primary philanthropic causes: AIDS
research and prevention, children’s well-being and the environment
. Kiehl’s stores have also begun to regularly host pet adoption
events. In August 2010, the company launched its inaugural “Kiehl’s Liferide for amfAR
” (The Foundation for AIDS Research). At the end of the six-day charitable motorcycle ride up the coast of California, Chris Salgrado, the President of Kiehl’s USA who led the group on his own Harley-Davidson
, presented an $85,000 check to amfAR.
, occupies the same space as when it was founded in 1851. The site of Kiehl’s location is known as “Pear Tree
Corner” for the pear tree Peter Stuyvesant
, governor of the Dutch colony New Amsterdam
, planted there in 1647. A wagon collision felled the tree in 1867; it was then known as “the oldest living thing in the city of New York.” In November 2003, Kiehl’s initiated the replanting of a new pear tree in its spot.
Today, the store has evolved into a neighborhood institution; Frommer's
2010 New York City travel guide states “Kiehl's is more than a store, it's a virtual cult.” Distinguishing features of the store include its window display of vintage druggist relics, and the collection of classic Harley Davidson and Indian
motorcycles housed within its doors.
Cosmetics
Cosmetics are substances used to enhance the appearance or odor of the human body. Cosmetics include skin-care creams, lotions, powders, perfumes, lipsticks, fingernail and toe nail polish, eye and facial makeup, towelettes, permanent waves, colored contact lenses, hair colors, hair sprays and...
brand retailer that specializes in making premium skin, hair, and body care products. Founded as a single pharmacy
Pharmacy
Pharmacy is the health profession that links the health sciences with the chemical sciences and it is charged with ensuring the safe and effective use of pharmaceutical drugs...
in New York City's East Village
East Village, Manhattan
The East Village is a neighborhood in the borough of Manhattan in New York City, lying east of Greenwich Village, south of Gramercy and Stuyvesant Town, and north of the Lower East Side...
in 1851, Kiehl’s was purchased by the L'Oréal Group in 2000 and currently has more than 30 retail stores worldwide, supplemented by sales in high-end department stores.
In contrast to its market competitors, Kiehl’s is distinguished for its unorthodox marketing approach, exceptionally large male clientele base and its products' simple and straightforward packaging.
History
Founded in 1851 by John Kiehl, Kiehl's began as a homeopathicHomeopathy
Homeopathy is a form of alternative medicine in which practitioners claim to treat patients using highly diluted preparations that are believed to cause healthy people to exhibit symptoms that are similar to those exhibited by the patient...
pharmacy located at 3rd Avenue and 13th Street in the East Village of New York City. In 1921, Irving Morse, a former apprentice and Russian Jewish émigré who had studied pharmacology
Pharmacology
Pharmacology is the branch of medicine and biology concerned with the study of drug action. More specifically, it is the study of the interactions that occur between a living organism and chemicals that affect normal or abnormal biochemical function...
at Columbia University
Columbia University
Columbia University in the City of New York is a private, Ivy League university in Manhattan, New York City. Columbia is the oldest institution of higher learning in the state of New York, the fifth oldest in the United States, and one of the country's nine Colonial Colleges founded before the...
, purchased the store. Morse was involved in the development of many Kiehl’s products that are still popular today, including Blue Astringent Herbal Lotion and Creme de Corps.
Irving’s son, Aaron Morse, who also studied pharmacology at Columbia and was a former World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
pilot, took over the store in the 1960’s. The younger Morse was credited for propelling Kiehl’s from obscurity in the 1950s to international recognition as an upscale natural cosmetics shop in the 1980s. Aaron transitioned the store from the traditional pharmaceuticals his fathered preferred to develop skin care lines. After he died in 1995, his desk and some of his vintage motorcycles were prominently showcased in the store.
By then, Aaron's daughter, Jami Morse Heidegger, had been operating the business since 1988. Described as "a clever marketer," she relied on word of mouth and extensive free samples and gifts to market Kiehl's products, rather than traditional advertising.
L'Oréal acquisition
L'Oréal
The L'Oréal Group is the world's largest cosmetics and beauty company. With its registered office in Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine, France, it has developed activities in the field of cosmetics...
acquired Kiehl's for between $100-$150 million. L'Oréal had pursued the purchase of the company for more than two years but the real catalyst for a deal came when Kiehl's had difficulty handling the growing volume of orders due to the company's growing popularity. Morse Heidegger, then president of Kiehl's, said, "We took a long hard look at the situation, and we felt that in order to keep up with the demand, in order to not be out of stock, in order to fulfill our destiny, if you will, we needed to take on a partner."
With the purchase, L'Oréal stated it planned "to increase the brand's presence but maintain it as a luxury line rather than a mass-market one." Kiehl's would also be expanded internationally. At the same time, Kiehl's newly appointed president Michelle Taylor said, "The thing most important to me is to keep Kiehl's true to what it is. Respect for old-fashioned values is really who we are."
Business
For the first 150 years of the company, Kiehl's only ran one store with its products also selling in high-end department stores such as Neiman MarcusNeiman Marcus
Neiman Marcus, formerly Neiman-Marcus, is a luxury specialty retail department store operated by the Neiman Marcus Group in the United States. The company is headquartered in the One Marcus Square building in Downtown Dallas, Texas, and competes with other department stores such as Saks Fifth...
, Barneys, Bergdorf Goodman
Bergdorf Goodman
Bergdorf Goodman is a luxury goods department store based on Fifth Avenue in Midtown Manhattan in New York City. The company was founded in 1899 by Herman Bergdorf and was later owned and managed by Edwin Goodman, and later his son Andrew Goodman....
, Saks Fifth Avenue
Saks Fifth Avenue
Saks Fifth Avenue is a luxury American specialty store owned and operated by Saks Fifth Avenue Enterprises , a subsidiary of Saks Incorporated. It competes in the high-end specialty store market in the Upper East Side of Manhattan, i.e. 'the 3 B's' Bergdorf, Barneys, Bloomingdale's and Lord & Taylor...
and Harvey Nichols
Harvey Nichols
Harvey Nichols, founded in 1813, is an upmarket department store chain. Its original store is in London. Founded in 1813 as a linen shop, it sells many international brands of clothing for women and men, fashion accessories, beauty products, wine and food...
. Following its acquisition by L'Oréal though, the company expanded from its one Manhattan flagship store to more than 30 stores today. Kiehl's sales have also more than quadrupled, increasing from $40 million in 2000 to past $200 million in 2009.
Products and sales
Compared to its competitors, Kiehl's states that it spends three to five more times on its upscale natural cosmetic products. At the same time, Kiehl's merchandise is "priced at the lower end of prestige skin care" while being distinguished for its simple and straightforward packing "which speaks to the old apothecaryApothecary
Apothecary is a historical name for a medical professional who formulates and dispenses materia medica to physicians, surgeons and patients — a role now served by a pharmacist and some caregivers....
concept." To this day, Kiehl’s signature products, such as its Blue Astringent, Creme de Corps and Original Musk Oil, continue to remain customer favorites.
To market its products, Kiehl’s applies a non-traditional marketing approach that "relies heavily on free product samples, word of mouth endorsements from existing customers, and innovative marketing techniques." Particularly known for its generous sampling policy, "Kiehl’s gave away more than 12 million samples a year, which represents 80 percent of their total marketing budget" according to Lynn Upshaw in Truth: The New Rules for Marketing in a Skeptical World. Upshaw writes, “The Kiehl’s way of ‘selling’ is not to sell at all… They believe the products will do what they do and no hype will change that.” Donations, most prominently in charity event gift bags, also attract customers.
On a local store level, Kiehl’s works to understand each new location and develop a unique approach for that market. For example, for the opening a new store in New York's Upper West Side
Upper West Side
The Upper West Side is a neighborhood in the borough of Manhattan, New York City, that lies between Central Park and the Hudson River and between West 59th Street and West 125th Street...
, Kiehl’s supported improvements to a local playground in Central Park
Central Park
Central Park is a public park in the center of Manhattan in New York City, United States. The park initially opened in 1857, on of city-owned land. In 1858, Frederick Law Olmsted and Calvert Vaux won a design competition to improve and expand the park with a plan they entitled the Greensward Plan...
, a hot community topic at the time. Within the stores, Kiehl’s is known for its focus on customer service
Customer service
Customer service is the provision of service to customers before, during and after a purchase.According to Turban et al. , “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer...
and its "retail brand experience." Their lab-coated staff undergoes an "intensive four-week residency schooling that drills them in the chemistry, use and application of Kiehl’s products."
Clientele
Allan Mottus, the editor of the cosmetics industry magazine The Informationist, stated, "The Kiehl’s store always attracted a cutting-edge younger-crowd." Compared to other cosmetics stores, Kiehl’s is also known for appealing to an exceptionally large male clientele, which represents 30 to 40 percent of the company’s customer base. In cities like New York and Los AngelesLos Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
, nearly half of all customers are men. According to Wendy Liebmann, chief executive of New York research firm WSL Strategic Retail, “Kiehl's changes the paradigm with a health and wellness approach that demystifies cosmetics. There's no intimidating hocus-pocus. It feels authentic and fun.”
Philanthropy
Kiehl’s is recognized for its philanthropic activitiesPhilanthropy
Philanthropy etymologically means "the love of humanity"—love in the sense of caring for, nourishing, developing, or enhancing; humanity in the sense of "what it is to be human," or "human potential." In modern practical terms, it is "private initiatives for public good, focusing on quality of...
. More than 40 years ago, Aaron Morse wrote the “Mission of Kiehl’s,” a 137-word statement which committed the company to the objective of “making for better citizens, better firms, and better communities.” Today, the cosmetics retailer is focused on three primary philanthropic causes: AIDS
AIDS
Acquired immune deficiency syndrome or acquired immunodeficiency syndrome is a disease of the human immune system caused by the human immunodeficiency virus...
research and prevention, children’s well-being and the environment
Environmentalism
Environmentalism is a broad philosophy, ideology and social movement regarding concerns for environmental conservation and improvement of the health of the environment, particularly as the measure for this health seeks to incorporate the concerns of non-human elements...
. Kiehl’s stores have also begun to regularly host pet adoption
Pet adoption
Pet adoption usually refers to the process of taking guardianship of and responsibility for a pet that a previous owner has abandoned or released to a shelter or rescue organization...
events. In August 2010, the company launched its inaugural “Kiehl’s Liferide for amfAR
AmfAR
amfAR, The Foundation for AIDS Research, is an international nonprofit organization dedicated to the support of AIDS research, HIV prevention, treatment education, and the advocacy of sound AIDS-related public policy.-History:...
” (The Foundation for AIDS Research). At the end of the six-day charitable motorcycle ride up the coast of California, Chris Salgrado, the President of Kiehl’s USA who led the group on his own Harley-Davidson
Harley-Davidson
Harley-Davidson , often abbreviated H-D or Harley, is an American motorcycle manufacturer. Founded in Milwaukee, Wisconsin, during the first decade of the 20th century, it was one of two major American motorcycle manufacturers to survive the Great Depression...
, presented an $85,000 check to amfAR.
Flagship store
Kiehl’s original store, located at 3rd Avenue and 13th Street in the East Village of ManhattanManhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
, occupies the same space as when it was founded in 1851. The site of Kiehl’s location is known as “Pear Tree
Pear Tree
Pear Tree is an inner city suburb of Derby, England. It is situated next to the areas of Normanton, Rose Hill and Osmaston. Pear Tree could be described as a suburb within a suburb because the people of Derby would identify it as an area in its own right, but it could also be described as forming...
Corner” for the pear tree Peter Stuyvesant
Peter Stuyvesant
Peter Stuyvesant , served as the last Dutch Director-General of the colony of New Netherland from 1647 until it was ceded provisionally to the English in 1664, after which it was renamed New York...
, governor of the Dutch colony New Amsterdam
New Amsterdam
New Amsterdam was a 17th-century Dutch colonial settlement that served as the capital of New Netherland. It later became New York City....
, planted there in 1647. A wagon collision felled the tree in 1867; it was then known as “the oldest living thing in the city of New York.” In November 2003, Kiehl’s initiated the replanting of a new pear tree in its spot.
Today, the store has evolved into a neighborhood institution; Frommer's
Frommer's
Frommer's is a travel guidebook series and one of the bestselling travel guides in America. The series began in 1957 with the publication of Arthur Frommer's book, Europe on $5 a Day. Frommer's has expanded to include over 350 guidebooks across 14 series, as well as other media including the award...
2010 New York City travel guide states “Kiehl's is more than a store, it's a virtual cult.” Distinguishing features of the store include its window display of vintage druggist relics, and the collection of classic Harley Davidson and Indian
Indian (motorcycle)
Indian is an American brand of motorcycles. Indian motorcycles were manufactured from 1901 to 1953 by a company in Springfield, Massachusetts, USA, initially known as the Hendee Manufacturing Company but which was renamed the Indian Manufacturing Company in 1928. The Indian factory team took the...
motorcycles housed within its doors.
External links
- Kiehl's Website (Canada)
- Kiehl's Website (US)
- Kiehl's Website (UK)
- Kiehl's Website (Australia)
- Kiehl's Blog
- Kiehl's on FacebookFacebookFacebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook, Inc. , Facebook has more than 800 million active users. Users must register before using the site, after which they may create a personal profile, add other users as...
- Kiehl's on TwitterTwitterTwitter is an online social networking and microblogging service that enables its users to send and read text-based posts of up to 140 characters, informally known as "tweets".Twitter was created in March 2006 by Jack Dorsey and launched that July...
- Kiehl's on LinkedInLinkedInLinkedIn is a business-related social networking site. Founded in December 2002 and launched in May 2003, it is mainly used for professional networking. , LinkedIn reports more than 120 million registered users in more than 200 countries and territories. The site is available in English, French,...