Case Study : Asian Beauty Industry

Hair, which accounts for more than 50 percent of sales, would be a great sector to focus on.

1a) In a short time, the young Chinese cosmetic market has become quite saturated with numerous firms. In order for Yue Sai to position its brand effectively, it has to draw upon unique strengths that others do not have. Madam Yue-Sai created Yue Sai with the aim “to create, produce and sell the very best beauty and skincare products that we can offer to Asian women and to the world…” The company started under her belief that the Chinese women had different standards for beauty and required specifically tailored cosmetic products. If Yue Sai under Cotyhad continued to build its brand under this positioning instead of focusing on distribution, the brand would be a far more prominent player in

Laws: Other countries have different laws regarding distribution, manufacturing and advertising. If the products are being manufactured in Thailand, there might be import tariffs.

Based on some of the findings from the tables above we also found that in skin care the most profitable area to expand.. Referring to tables 5, 6, 7 and 8 we see that the skin care industry is broken into face, hand and body care. The tables tell us that most sales are contributed by facial care products, and also the growth rate in this area is also one of the highest. This is the reason why facial care is analysed more in detail in the following pages. To illustrate this better refer to the following table.

The main function of the business to create a safe and natural company that the public is able to recognise as a brand that looks after the consumer. As a brand, we want to return the quality to the customer if they are trusting us to look after their bodies and needs. The statistics are alarming for all the nasty products placed in current beauty products: one in five of all beauty products contain chemicals linked to cancer, 80% contain ingredients that

There is a famous saying that ‘cosmetics are not selling product but beauty.’ Therefore, it is important to keep planning and developing product to meet the needs of customers who pursue beauty. In line

Mary Kay, Inc. was founded in 1963 by Mary Kay Ash as Beauty by Mary Kay. Mary Kay is a direct sale type of company, with “independent beauty consultants” that sell and market Mary Kay products (2012 Corporate Fact Sheet). Mary Kay Ash operated with the mindset of “God First, Family Second, and Career Third,” and always adhered to the golden rule, do to others as you’d want them to do to you (Kerin, Et. Al). Mary Kay, Inc. first entered the global market in 1971 with its expansion into Australia. Today, Mary Kay is represented in over 35 global markets (2012 Corporate Fact Sheet). Mary Kay is challenged to ensure brand consistency across the world, despite differences in cultures from market to market. As such, Mary Kay would be considered a transnational firm. They tie the similarities between each market together while celebrating the differences in each market. This strategy allows them to offer Mary Kay’s core product lines globally where they’re most desired. In China, one of their most successful markets, Mary Kay applied their existing corporate message of women empowerment to attract Chinese women that otherwise wouldn’t be able to start their own business. Where China differs from the United States market is in product need. Chinese women don’t typically wear a lot of makeup, so

Currently, the business has not ventured in the cosmetic market of London and Canada. Canada and London provide an opportunity for the company to expand its market through its international entry strategy of retailing and B2C framework. The SWOT analysis of the company shows a wide range of strengths and opportunities for the company’s future success such as market gap (London and Canada), Globalization, technology and good customer relation (BBB accreditation). The company demonstrates high capability of sustenance and survival through retailing, personal selling, E-commerce, E-marketing, Fashion Collaboration and other B2B platforms.

Young girls are more concerned about acnes and blackheads while mature women are looking for anti-aging and anti-wrinkle products. Genders do affect the choice of skin care products. In the past, skin care products only belong to the girls’ world. Nevertheless, in recent years, men are increasingly becoming more and more concerned about skin care. With a view to this latest trend, various brands have started developing men’s line. Income level directly affects the purchasing power of customers. Skin care products take up a wide range of price levels from far less than a hundred dollars to more than a thousand. Young girls who do not have any income cannot afford the expensive skin care products while mature women with higher purchasing power focus more on quality and effectiveness. Occupations also determine the need for skin care products. Models and artists generally have a higher consciousness on skin care than people with less exposure to the public.

The generation of Baby-Boomers are growing older and living longer. The struggle to stay young has created a demand for a cosmetic product that slows down the hands of time. Many cosmetic companies have developed products that promise to erase wrinkles, lift and firm skin on our faces, and smooth out blotchiness created by age spots. Estee Lauder's Idealists Skin Refinishing line promises to do all that. The products range from US$46 to US$85 (EsteeLauder.com 2005). These miracle serums and lotions have a price tag many consumers in China still may not be able to afford.

For China, the company should first consider in building a strong brand in China. SK-II should be expressed clearly to target customers. Company then provides knowledge in using skin care up to six or eight steps. One more considering point is that there is high import duty. Thus, company should minimize the cost to make product profitable.

Further Penetrate the Japanese Market: Currently, Japan remains SK-II¡¦s most attractive and proven market for this product-line. Having already established brand recognition, high awareness (+70%), and a loyal and growing customer-base (spending $1,000/year+), P&G should focus on further penetrating this market. Japanese women are among the world¡¦s most sophisticated users of beauty products, and per capita they remain the world¡¦s leading consumer of the prestige and multi-step offerings „³ SK-II¡¦s Japanese target market is well-defined and very loyal once acquired. Furthermore, having succeeded in Japan before with its ¡§Lipfinity¡¨ launch, P&G has existing distributor relationships and has viable access to these customers. Rather than investing heavily to enter new markets such as China or Europe, P&G can more effectively direct these resources to expand/extend the product-line and develop newer, profitable Japanese segments. P&G can also rely on its existing sales model and target the sophisticated and informed Japanese consumer by offering technologically enhanced products and systems such as: 1)

Because Japanese women had by far the highest use of beauty care products in the world, it was natural that the global beauty care category management started to regard Max Factor Japan as a potential source of innovation

Rivalry is intense among the competition in the cosmetic and skin care industry. There are numerous existing cosmetic companies competing in the market. The giant corporations acquire numerous brand name products and compete for the same number of customers. The competition consists of companies such as, Procter & Gamble, L’Oreal, Unilever, Avon Products, Inc., Estee Lauder, in addition to competing with large retailers, who order mass

Many cosmetic brands are popping up recently, perhaps, due to the increasing consumers of products that beautify and enhance the physical appearance of a person. Even though the market is already full of the said cosmetic brands, the company L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color. This study is a brief overview of the marketing concepts and strategy of the said company. The company profile will be presented to be able to give a clear view of the market to which the company belongs to. An internal and external (SWOT) analysis of the company will also be provided in this paper. Another area will be specifically devoted to