Perfect entry

Name: Perfect Potions

Business: Aromatherapy and skincare

Industry: Cosmetics

IP smart since: 1991

As its vision statement reads, retailer Perfect Potion came together in Australia 18 years ago to provide customers with an experience that was "the most sought after in the world". It's a big claim for the organic aromatherapy and skincare company, but one that founders Salvatore Battaglia and his wife Carolyn Stubbin stand behind. "There are very high standards that we've established, using certified organic raw materials in compliance with the very high European [BDIH] standards for natural cosmetics," says Mr Battaglia.

Perfect Potion is the first Australian company to obtain certified natural cosmetic status from BDIH, the German certifying body for natural skin care, across most of its products. This is on top of receiving Australian Certified Organic certification, keeping Perfect Potion in line with leading organic standards worldwide.

And since establishing two stores on the ground in Japan more than a year ago - coupled with distribution arrangements within another eight countries - the company is well on its way to making this vision a reality.

Seizing Opportunities
Japan is an important market for Perfect Potion, with the business trading through a distributor for several years before sensing greater opportunities through a dedicated retail presence. "We have had a distributor in Japan for more than 10 years and they never understood our brand," he says. "It was just another brand among thousands of other skincare products. But we've never seen ourselves like that because there is a whole experience around Perfect Potion."

This experience includes offering workshops and education 'seminars' in the Japanese stores that teach customers how to use the Perfect Potion products and even how to make their own. "This is why I decided to set up shops in Japan, because I knew that they understood retail very well."

So far the experience has been very positive. "In all honesty, I'd say it's easier to set up shops in Japan than it is to set up in Australia!" Mr Battaglia says. "I find people very reliable, in terms of organising people to do things. If someone says something will be done by a certain date, it is done by that date."

Recipe For Success
Mr Battaglia says the secret to the success in Japan has been in setting up a separate company with a business partner, a Japanese national. "The fact that she speaks good English and is very business savvy - plus has a strong passion for Perfect Potion - has made it very easy."

Solid protection of the company's intellectual property (IP) has also been essential. "It is so important before you enter a country for export that your trading name, your brand name, is going to be protected." To ensure his brand is well and truly covered, Mr Battaglia has retained the services of experienced intellectual property attorneys. "We have really good trade mark attorneys and they've been able to achieve everything from their offices here in Australia," he says. "You can't market your product overseas if somebody else has taken out your trade mark."

The attorneys liaise with relevant IP organisations in Japan, lodging all applications and coordinating IP searches for all markets. "And where they have needed to contact somebody overseas, they have done so on our behalf," Mr Battaglia says.

Additional support for Perfect Potion has come through being a member of Austrade's Export Market Development Grant (EMDG) scheme, which now includes reimbursement of IP protection costs for eligible businesses. This financial support will come in handy to offset some of the costs from employing their trade mark attorney.

Solid Relationships
Although there haven't been any infringements on their trade marks to date, daily communication with their Japanese partner means they can be alerted to any potential infringements quickly. And Mr Battaglia says that in his dealings so far, he finds Japanese people very honest and law abiding. "There is a lot of integrity with people when you're doing business with them, and there's a lot of trust in the relationship. It takes a while to establish relationships, but there's so much trust in those relationships once you do."

For other companies looking to crack the Japanese market, or indeed any international market, Mr Battaglia has some key advice: "I think it would be quite difficult to set up a business in Japan without having a strong input from Japanese nationals - either having a business partner who is Japanese or the person really understands the Japanese culture."

Relationships with his business partner, his legal team and a Japanese expert on the cosmetics industry regulations have also been vital. "If you want to be successful, make sure you go into a business relationship with someone that really understands what you're trying to achieve," Mr Battaglia says.