Internation Business - Cosmetics Export Plan to China

2786 WordsJul 23, 201112 Pages
MakeX Natural Cosmetics Export Business Plan Mariaviola Bombagli Globalisation & Integration Prof. Westbroek Individual Assignment February 1st, 2011 MakeX Natural Cosmetics Export Plan Bombagli M Abstract MakeX is a natural cosmetics company that plans on expanding its market to China. As the Chinese cosmetics market is proving to be one of the fastest growing businesses, it appears to be a good place for the company to start expanding internationally. In order to successfully conduct such business venture, MakeX has to develop a thorough business plan that will take into account cultural and legislative issues, export strategies and product adaptation as well as market research of every target segment. The goal of this…show more content…
Such choice will limit the risks of entering a new and diverse market for MakeX and simultaneously facilitate the process by simply adhering to Sephora’s regulations for export. Chinese cosmetics market Chinese consumers are shown to be willing to give up local product consumption in exchange for added value that comes along with Western cosmetics, particularly within fashion-forward urban cities where they have become one of the major forces for growth. However, per capita average annual spending is lower than the global average, data that prove the still high potential for further growth of such market; “the China National Commercial Information Centre (CNCIC) predicts that cosmetics retail sales in China to hit 100 billion Yuan […] The Economic Intelligence Unit anticipates China’s cosmetics market to double and overtake France, Europe’s biggest cosmetics buying country, by 2012” (Industry Report, 2010; Bombagli, 2011) China’s cosmetics market has been one of the largest and richest sectors in the world becoming the second largest in Asia after Japan. For the past decade, retail sales of cosmetics have steadily increased reaching impressive growth rates. Many international cosmetics companies, such as L’Oreal,

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