7 minutes read

A good product, packaging that pulls it down

When the quality is already there but the design is telling the wrong story, the problem isn't the name but how the brand presents itself.

Sinh Vũ · Creative DirectorCosmetics sector

Quick summary

A domestic skincare brand that wants to move into the mid-to-high segment doesn't need to change its name, because the name isn't what pulls expectations down. What pulls them down is packaging designed to the standards of the old segment, storytelling that lacks depth, and touchpoints that still send low-price signals. Repositioning starts with an audit of what is saying the wrong thing, then changes are made in order from the outside in.

In this article · 6 sections

There are Vietnamese skincare brands whose customers finish a bottle and nod in approval, yet wouldn't dare put it on the bathroom shelf when guests visit. They trust the quality. But the bottle looks like a budget product.

This is not a brand name problem. It is a signal problem.

Customers buy with their eyes first

Research by Lindgaard and colleagues, published in Behaviour & Information Technology (2006), shows that visual impressions form within 50 milliseconds.

Before customers read the name, check the ingredients, or ask the price, they already have a feeling.

That feeling doesn't come from the quality inside. It comes from what can be seen: the shape of the jar, the surface material, the typeface, how information is laid out, the background color.

If those things are saying “budget segment,” then an upper-mid price will look unreasonably expensive, not worth it.

50 millisecondsThe time it takes for the human brain to form a first visual impression. Source: Lindgaard et al., Behaviour & Information Technology, 2006.

Why the name isn't at fault

When many brand owners want to move up a segment, their first reaction is to think about changing the name. The name sounds too ordinary. The name isn't refined.

But look again: does Thorakao have an unrefined name? Yes. Yet Thorakao's problem is not the name. It is packaging and storytelling that haven't been updated for the market.

By contrast, Cocoon kept its simple English name, but with consistent design, a specific story of local ingredients, and clear third-party certification.

Result: it leads the sheet mask category with a 95.1% share of that product line in Vietnam, according to internal figures published by Cocoon.

The 95.1% paper mask market share figure is self-reported by Cocoon and has not been independently verified. Sinh Vũ cites it as an illustrative example of a positioning result, not as industry data.

The name is not what customers reject. What they reject is the inconsistency between the price and the signals of presentation.

What your packaging is saying

Kapferer describes the brand prism as having six facets. The first facet he calls “physique”: the things that can be seen and held.

He writes that physique "sets the stage, and the other five facets create meaning."

In other words: if the stage looks wrong, the audience doesn't stay to hear the story.

Physical builds the stage. The other five facets create meaning.

Jean-Noël Kapferer, The New Strategic Brand Management

In cosmetics, packaging is more than an outer shell. It's what customers hold in their hands every morning and every night. It's what shows up in the vanity photos they post on social media.

A jar that looks mass-market won't get photographed. Won't get shown off. Won't get recommended.

That is why packaging in the upper mid-range is not about looking nicer. It is about being worth noticing.

Three signals often overlooked

When auditing a skincare brand that wants to move up-market, Sinh Vũ usually looks for the three places most often overlooked.

  • Typography on packaging: a free font looks like a free font. Customers in the upper-mid segment pick up on this signal, even if they never say it.
  • Information density: packaging that crams in too much, including things that aren't needed, is a sign of design built to mass-market standards. A higher segment needs deliberate empty space.
  • Materials and surface finish: cheap glossy plastic looks very different from the same plastic with a matte or textured finish. The cost difference is small, but the difference in signal is large.

Beyond packaging, two other touchpoints often pull expectations down: distribution channels and the way product descriptions are written.

  • Distribution channels: if you sell in the same places as budget products, you get read as a budget product. Entering the right channels isn't about luxury, it's about consistency.
  • Product description: a line like "deep moisturizing, brightening" doesn't set you apart from ten competitors on the same shelf. The mid-to-high segment needs a specific ingredient story, a clear origin, and a reason to believe.

Move up a segment without losing your roots

The biggest risk in repositioning is losing existing customers before you win new ones.

There is a way to reduce this risk: keep what built trust, and change only what is sending the wrong signal.

Good ingredients are why existing customers stay loyal. Don't change them. The real story of effectiveness is something upper-mid customers want to hear too. Keep it, but tell it in a different way.

What needs to change is the outer layer: packaging, typography, materials, how the brand is presented on digital channels, and a price positioned by cost rather than by value.

+38%The extra price customers are willing to pay for a brand seen as meaningful and different. Source: Kantar BrandZ.

This number shows that the gap between an “ordinary” brand and a brand that is “trusted and seen differently” is not a small one.

Starting point in reality

Repositioning doesn't begin with a large design project. It begins with an honest question: what in the current system is sending the wrong signal?

The answer is usually not everything. It's usually two or three specific points, and once you fix those, the whole system starts to be read differently.

Wally Olins wrote that a brand shows itself through four things: products, environments, communication, and behavior. Domestic cosmetics brands aiming for a higher segment usually already have the product.

What's missing is the other three working consistently together.

A brand is not what you say about yourself. It is what other people feel when your name comes up.

Marty Neumeier, The Brand Gap

Upper-mid customers don't buy a jar of cream. They buy the feeling that they're making the right choice. The job of design is to make that feeling possible, from the very first glance.

References

Marty Neumeier, The Brand Gap. Wally Olins, On Brand. Jean-Noël Kapferer, The New Strategic Brand Management. McKinsey & Company, The Business Value of Design, 2018. Kantar BrandZ, meaningful brand report. Lindgaard et al., Behaviour & Information Technology, 2006.

Frequently asked questions

Do you need to change your brand name when repositioning to a higher segment?

Not necessarily. A brand name is rarely the reason customers decline to buy. What they read first is the packaging, the presentation, the distribution channel and the price. If those are raised consistently, the old name will be 'read again' in the new context.

How long does it take to reposition a domestic cosmetics brand to the upper-mid segment?

It usually takes 12 to 24 months for the market to update its perception. The first phase is designing and launching the new packaging. The second phase is building evidence: new distribution channels, consistent communication, and customers who buy again at the new price. There is no shortcut that skips the second phase.

Will raising prices lose you existing customers?

Partly. Customers who buy because it's cheap will leave, and that is something to accept. Customers who buy for the product's results usually stay, and this group is the foundation of the new segment. Losing price-sensitive customers is not a failure. It is a sign the repositioning is working as it should.

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