The beauty and personal care company is enjoying a strong performance within Australia, recently recording a 61% rise in half-yearly net profit after tax to AUD $6.3 million. This growth has been in large part thanks to the strong success of its naturals brand, Sukin.
Sukin trades well on its 'ethical' brand identity, with a vegan-friendly product offering which is not tested on animals, and carbon neutral packaging – all of which make it popular with ethically-conscious consumers, an increasingly dominant group.
Indeed, BWX adopts a no animal testing policy across the board. This complicates its hopes to move into China, however, where regulation dictates that every cosmetics product must be successfully tested on animals before sale.
China's animal testing
China's laws stipulate that any cosmetics product sold within mainland China from retail outlets must be tested on animals, regardless of whether that product is made domestically or internationally.
At the moment, brands are able to sell from e-commerce platforms abroad, and ship cosmetics products into mainland China without the products being tested on animals, which allows companies like BWX to uphold their ethical credentials and continue to trade in the lucrative market.
The Age reports that BWX has been approached by as many as 30-would be distributors in China, but the animal testing requirement remains a stumbling block to the company successfully setting up shop there.
The issue on testing
“For bricks and mortar stores on the ground there is a general rule that all cosmetics need to be tested. There is some subjectivity around that, and there is also discussion that that situation may change," the company's chief executive told The Age.
Until the brand can secure animal-free production, Humble states that it will focus its efforts on its strong domestic performance.
“Any requirements to test on animals will not be met, with the company strictly adhering to its vegan friendly status,” he confirmed. “We've got a booming domestic business we want to make sure is absolutely preserved."