Presence Of L’OREAL in China Samples †MyAssignmenthelp.com

Question: Discuss about the Presence Of LOREAL in China. Answer: Introduction The report will discuss in detail about the presence of LOREAL in China. The country in discussion is one of the oldest civilization and is also considered most populous country in the world. there is consistent and rapid economic based growth since the time of 1970 and it is considered as the one of the biggest economy in terms of GDP (Ajitha and Sivakumar, 2017). There is constant rise in disposable income and the consumers of the country are constantly desiring more and more sophisticated and premium product in different categories specifically including skincare and beauty. LOral China The company is the largest in the cosmetic industry and exist across the world with huge sales worldwide. In 2010, the sales in China also exceeded for the very first time and there is eleven percent rise over the last year and there is a double-digit gain for the tenth consecutive year which make the country the third biggest market for the company after USA and France. The company holds the second position in beauty and skincare after PG in the luxury category. It also exists in the country with almost every brand considered as the major brand with an exception of Body Shop (Checchinato et al., 2014). The company has also settled a research and innovation centre in Shanghai and has production centre in places like Suzhou. Yue Sai The very first and initial cosmetic brand of the country is Yue Sai was established in 1992 by the person called Madam Yue Sai Kan who was an Emmy winner host and entrepreneur and has the aim to develop, produce and sell the best beauty as well as skincare products. The promotion of the brand the founder also wrote a book on makeup for the modern China. There were so many obstacles in securing the distribution in department stores in country and appointing personally trained makeup experts (Heine and Gutsatz, 2015). LOral acquired Yue Sai in the year 2004 and added more products in the store like LOral, Maybelline and Shu Uemura. Post acquiring the brand, the year was not that smooth but since the company had acquired a brand with wide distribution, there were many benefits also like strong sales, few good skin care products and many more (Wang and Gan, 2017). There was a challenge to increase the sales and there was loss in market as well as innovative edge in RD perspective. The company took a lot of efforts and the success started when the Alexis Perakis-Valat become the CEO of the company and set some ambitious goals. The management team along with the CEO the company started working on the advertising part of the company. Here the crucial decision is whether to continue with the present campaign or to completely transform it and at that time when cost of media was climbing slowly and deteriorating the limits for sales and advertising along with promotion based budget (Yang and Chandon, 2013). From the time more and Chinese brands are depending on the celebrities, the important questions are that should Yue Sai depend on models or celebrities or not. It is also important to determine the pricing of the company and how the company price within LOral brand in China. Another important decision is to take the appropriate channels of distribution entirely based on the market category where Yue Sai can pursue and the consumers it must target (Zhang and Kim, 2013). Conclusion For last so many years, cosmetics were seen as revolutionary as well as non-existent on virtual platform in a country like China. So many generations of women in the country grew without taking any sort of knowledge from the mothers which means that the cosmetic companies like Yue Sai in 1992 had to first take initiative to educate the consumers of China about the beauty and usage of cosmetics (Zhang and Kim, 2013). Just 10 to 15 % market was created for cosmetics since the women of the country was not very open towards its usage in routine lives. References Ajitha, S. and Sivakumar, V.J., 2017. Understanding the effect of personal and social value on attitude and usage behavior of luxury cosmetic brands.Journal of Retailing and Consumer Services,39, pp.103-113. Checchinato, F., Colapinto, C. and Giusto, A., 2014. Advertising in the Luxury Sector in China: Standardisation or Adaptation? A Comparison Between China and Italy.The Globalization of Chinese Business, p.241. Heine, K. and Gutsatz, M., 2015. Luxury brand building in China: Eight case studies and eight lessons learned.Journal of Brand Management,22(3), pp.229-245. Wang, X. and Gan, D.Z., 2017. Research On Marketing Strategy Of Shanghai Jahwa Costmetics. Yang, H. and Chandon, P., 2013. LOral in China: Marketing Strategies for Turning Around Chinese Luxury Cosmetic Brand Yue Sai. Zhang, B. and Kim, J.H., 2013. Luxury fashion consumption in China: Factors affecting attitude and purchase intent.Journal of Retailing and Consumer Services,20(1), pp.68-79.