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Shifting manufacturing to third party companies.
July 13, 2015
By: Christine Esposito
Editor-in-Chief
H2O Plus is relocating its headquarters from Chicago to San Francisco. The announcement is part of a series of strategic changes as H2O Plus shifts its business model from a manufacturing company to one that focuses on the marketing and sales of H2O Plus products around the world. As part of its shift in strategy, the company will be closing its Chicago manufacturing plant and headquarters over the next six to 12 months. Some key employees will be offered the opportunity to transfer to San Francisco, while a recruiting effort is underway to fill the remaining roles. Also, manufacturing of H2O Plus products will gradually be transferred to third-party companies in the United States. H2O Plus anticipates that about 50 employees will be located at its new headquarters once fully occupied. By relocating to the West Coast, H2O Plus says it will gain greater access to key business markets in Asia. “We are incredibly excited to become a part of the San Francisco business community as we refocus our company’s brand and mission,” said Joy Chen, CEO. “H2O Plus is poised to write the next chapter in its history as we adapt to the changing beauty and skin-care marketplace.” The San Francisco headquarters is expected to be fully operational by the Fall. The company said it will continue to have a small presence in the Chicago for the foreseeable future. “We want to thank all of our employees in Chicago for their dedication in making H2O Plus one of the most recognizable skin care product lines in the world,” Chen said. “After careful analysis it became clear, however, that the current manufacturing structure was not in the long-term financial interests of the company.” H2O Plus launched in 1989 with 100 skin care products.
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