Companies that want to expand internationally must adopt innovative strategies that allow them to reach the next level of development and make them attractive not only locally, but also regionally and why not, globally. Ivatherm, a Romanian dermatocosmetics company founded by Rucsandra Hurezeanu in 2005, is one of those companies that take Romanian entrepreneurship abroad, being present in several countries in Asia and the Middle East. In September 2024, Ivatherm was accepted into MoonShotX, the first scaling program dedicated to Romanian Mid-Corporate companies, carried out by Raiffeisen Bank Romania, in partnership with InnovX – where 22 companies out of over 760 analyzed were accepted.
We spoke with Rucsandra Hurezeanu about industry trends, development plans and Ivatherm's experience within the MoonShotX program.
What are Ivatherm's main innovation and scaling needs at this stage of development?
Rucsandra Hurezeanu: Ivatherm has been on the market for 19 years, it is not a start-up. However, the accelerated growth in the last 3 years puts us in a similar position to that of a start-up. This accelerated growth, of 25-27%, which we have recently experienced, brings with it the need to create larger and more structured teams, to implement corporate governance principles and to align ourselves with all sustainability standards. It also brings with it the need for financing at some point. Thus, this project, MoonShotX, is welcome for medium-sized companies.
The program has several themes! Together with my colleagues, I participated in a bootcamp, which was very interesting. The themes addressed included financial support, which can be achieved through bank financing, investment funds, European funds, etc. Two specialists were invited to speak about this, each. In addition, we always have mentors who help us access the financing programs we want and choose the right ones for the company's stage of development.
Innovation and sustainability, among the topics at MoonShotX Bootcamp
Another important topic addressed was innovation. It was very interesting to see how people innovate in other countries, in various industries. It was an inspiring experience – a company from Poland, one from Bulgaria, and a representative from UiPath came to explain to us the steps through which they became such a large, global company. It was, for my colleagues as well, like a mini MBA, so to speak.
Among the important topics addressed was sustainability and how companies now need to align themselves with these requirements. We are already in a B Corp certification program, which we hope to obtain in a month or two. We will be the second company in Romania to receive this certification, one of the most valuable in our industry and in the food industry. Currently, only two companies in the country hold this certification. It was also interesting to see how banks see this need for sustainability, especially through the introduction of green loans. So, somehow, from all directions, these demands are coming at us and we have to align ourselves with them.
Another topic addressed at MoonShotX was, as I mentioned, innovation, along with marketing and international expansion. There were also economic representatives from several embassies who explained how they help Romanian companies reach the right partners in their respective countries.
Considering that you are in several markets, what trends do you observe in the industry?
Rucsandra Hurezeanu: In recent years, we have observed a significant increase in the level of customer education and information, especially since the pandemic. People have become more health-conscious, they take better care of themselves, and customers have become increasingly informed, educated. They want to know what ingredients we use, in what concentrations the active ingredients are used, and they want products that have proven effectiveness, supported by clinical studies. This is the segment that is growing the most.
Of course, there is the organic products segment, the spa products segment, but what is growing the most right now are the pharmacy products, the dermocosmetic products, that is, this segment that offers products with clinically proven effectiveness. And this is where we are, so we are experiencing a moment of opportunity in our activity, we are exactly where we need to be.
“We notice that all the new brands launched in France want to be in the pharmacy, no one wants to be in the supermarket, no one wants to be in the perfumery. Everyone wants to get to the pharmacy, because this is the segment that is growing.”
More informed and health-conscious customers
On the other hand, we see that, for example, in France, over 1,000 new brands were launched last year alone, because young consumers no longer want to consume the products they see in their mothers' bathrooms. They are looking for new products that are aligned with their values of sustainability, transparency and clean beauty. Thus, brands have had to align themselves with these demands. We see a need for transparency: customers want to know who produces them, who the founder is, who the people who work in the companies are and what their values are. They want to be informed, they want more information. These needs did not exist 10 years ago, and we, of course, align ourselves with the needs of consumers.
On the other hand, all our growth, which has accelerated in recent years, has also come largely from Social Media, because they are accessible platforms at low prices. Buying media is not the biggest investment now, but producing visual content. For this reason, even during the pandemic, we set up a graphics department. We have a large department that deals with our content, we never use images taken from elsewhere, images that do not belong to us, and video as well. We have always considered that the aesthetics of a cosmetic brand are important. This new department is led by a design studio in London, with whom we have been working for 15 years, for everything that means visual and graphic. Everything from us is supervised by them, and they form the team here in such a way that we have a consistent brand.
Which countries are in Ivatherm's sights for regional and international scaling in 2025 and what factors underlie this choice?
Rucsandra Hurezeanu: We currently export 40% of what we sell, of our turnover, and we are greatly increasing the potential for export growth. This is almost unlimited, considering that we sell to very large countries.
Our first approach was to enter emerging markets, because there are fewer barriers to entry here and we are talking about very large countries: we are present in Asia, the Middle East and Russian-speaking countries. The largest markets for us now are Saudi Arabia and Iraq. In Asia Pacific we have partners in India, Vietnam and we are re-entering China. So these are very large countries where we have very serious partners and I think that is where the growth will come from. On the other hand, Europe is a region that is more difficult for brands to access, because the markets are extremely crowded. There are markets where salaries are high, where it is difficult to get on the shelf in a pharmacy in France, not to mention that the price for promotion is much higher, meaning salaries are very high. On the other hand, in countries like Asia or the Middle East it is much easier.
From the very beginning, we have experienced an extraordinary attraction from Asian customers for our brand. They like “made in France” brands, because it is considered the absolute expertise in cosmetology. And the way in which the brand is structured and consistently built seems interesting to them.
Are there specific short and medium-term financing needs that Ivatherm has in mind to support the regional and international scaling effort?
Rucsandra Hurezeanu: At the moment, we have bank financing, as we have had from the beginning. We do not need other types of financing, but we are looking at European funds, grants for research and development, as well as for production equipment, because we do part of the production here, in Romania.
Unfortunately, Bucharest is very crowded and, when you have a company in Bucharest, it is more difficult to obtain European funds, because the demand is very high, unfortunately. Of course, we are also thinking about Herculane, where the Herculane thermal water comes from. We could, at some point, set up a mini-production unit there, for the production of water sprays. Next year, we also have a social project in Herculane, because it is a place to which we are deeply attached.
“Herculane thermal water is, so to speak, the hero ingredient of our brand.”
MoonShotX Bootcamp, like a mini-MBA
How has the MoonShotX experience been so far?
Rucsandra Hurezeanu: It was, first of all, a moment of reflection for us and we had very interesting conversations with very well-trained mentors and specialists who came to discuss with us the challenges we are facing at the moment.
It is an extremely well-structured program, in which each company projects its own objectives for the coming years. And the specialists who are part of this program help us achieve these objectives.
What feedback have you received from the team so far regarding the MoonShotX Bootcamp?
Rucsandra Hurezeanu: As I was saying, it was very interesting, especially for my team. That week of the bootcamp was like a kind of mini-MBA for them, because they had access to conferences and interesting conversations. It was also a networking opportunity.
This time, there were mid-sized companies in this program, which is good, they were companies like us. There were also a few companies from industry and a lot of IT companies, with whom we had interesting conversations, because there is always something to improve in the way this department works in every company.
What are the main advantages and business lessons that you have gained from this program so far?
Rucsandra Hurezeanu: I think there is a lot of talk about “business lessons”! There were some very inspiring presentations from Bulgaria and Poland. There were companies that are innovating in the industry in a sustainable way. There were some inspiring presentations. Also, the people from UiPath talked about how they expanded globally and their approach and entry into other markets was interesting, quite innovative and different.
Raiffeisen Bank Romania, in partnership with InnovX, took a major step in supporting Mid-Corporate companies by launching MoonShotX. The project provides the necessary resources to transform them into strong actors at regional and international level.
Article supported by Raiffeisen Bank Romania