Government and Business Environment Case Study

Case Title:

China’s Cosmetics Industry: Opportunities and Threats

Abstract:
China's beauty and cosmetics industry has been experiencing growing demand since the mid-1990s. China's vast population and consumer profile presented a world of opportunities to cosmetic and beauty firms. Experts attributed the boom in the cosmetics industry to the country's one-child policy, which increased the disposable income of the average urban Chinese family. But with foreign cosmetic giants venturing into China, competition intensified among the foreign and domestic firms.

Pedagogical Objectives:

• To discuss the strategies adopted by the cosmetic firms to capture market share and tackle competition
• To discuss how consumer spending on cosmetics evolved over the years
• To discuss the role played by foreign cosmetic firms in the growth of the industry.

Keywords :  China's cosmetics industry, Consumer spending on cosmetics, Foreign investment and economic reform, State-owned cosmetic companies,Government and Business Environment Case Study, Growth drivers of the industry, China's one-child policy, Foreign-invested cosmetic firms,Business Environment Case Study, Ban on direct selling, Beauty boutiques, L'Oreal, Mary Kay, Avon, WTO (World Trade Organisation) commitments