Business Case Studies, Market Entry Strategies Case Study, China's Beauty Industry, L'Oreal's Foray

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Case Title:

China's Beauty Industry: L'Oreal's Foray

Publication Year : 2004

Authors: Kalyani Vemuri, T Phani Madhav

Industry: Home Appliances and Personal Care Products

Region:China

Case Code: MES0013

Teaching Note: Available

Structured Assignment: Available

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Abstract:
L'Oreal, the world's largest cosmetics company, entered the booming Chinese beauty-care market in 1997. Since then, it has been trying to understand its Chinese consumers, fight competition from local and international companies and expand from cities to the two and three-tier towns of China. Its acquisition of two Chinese brands, Mininurse and Yue-Sai in 2003-2004, moved its position up from eleventh to second.

Pedagogical Objectives:

  • To discuss the beauty-care industry in China and the current competitive scenario
  • To discuss L'Oreal's entry and marketing strategies, and the current and future hurdles it has to overcome in China
  • To discuss L'Oreal's competitive position and the problems it faces due to the business environment in China
  • To discuss the future plans for L'Oreal China.

Keywords : L'Oreal; China; Lindsay Owen-Jones; Chinese cosmetic industry; Market Entry Strategies Case Study; Understanding Chinese consumers; Maybelline watershine diamonds; Mininurse; Yue-Sai; Mary Kay; P&G (Procter & Gamble); Counterfeit products

Contents : 
Introduction
China’s Beauty Industry
L’oreal’s International Expansion
L’oreal’s Foray Into China
L’oreal’s Acquisitions
Challenges
Consolidated Sales Of L’oreal Group
An Advertisement Featuring Gong Li
An Advertisement For Maybelline Featuring Zhang Ziyi

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