L'Oreal Expansion in China Case Study Report

In: Business and Management

Submitted By Winnieric
Words 1444
Pages 6
Introduction
This report is based on the ‘L’Oreal: Expansion in China’ case study. L’Oreal is a successful French cosmetic company that involved into many different international markets. This report will discuss how L’Oreal gets into the Chinese cosmetic Market and the strategic to develop their brand in the Chinese market. L’Oreal acquires two famous Chinese cosmetic brands which are Yue-Sai and Mininurse. It is in order to entrance the market quickly and sales the most suitable products. The aim of this report is to define the challenge L’Oreal has been faced. Then it describes how L’Oreal managing their strategic in Chinese market. In addition, it gives an accommodation which could help L’Oreal overcoming these challenges.

Background
L’Oreal’s background
The French company L’Oreal is a giant in cosmetics market that founded in 1907 by Eugene Schueller. The earliest success for L’Oreal is because it got the first hair color formula and then expanded into the field of shampoo and soaps. From the very beginning, L’Oreal decided to export its product to other countries such as Holland, Italy and so on. It entered the US market at 1953. Schueller was died in 1957 and Francois Dalle replaces his post. Although the boss has been change but L’Oreal expanded into overseas markets continuity.

In 2004, L’Oreal had 52,000 employees over the world and portfolio of 17 international brands. As shown in the L’Oreal group annual report, the largest market for L’Oreal is still Western Europe which occupied 51.4% of total sales. The second place is North America. Moreover, Eastern Europe, Asia and Latin America could be the three potentially growth markets.

Mininurse’s & Yue-Sai’s background
As a result of L’Oreal plans to explore Asia market, one of the important issues is increase the market share in China could become. It is because China has a huge population…...

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