L’expansion de L’Oréal en Chine

Étude de cas Comptabilité & finances Bourse

Date de publication :

06/05/2008

Langue :

Français

Format :

.doc

Nombre de pages :

31 pages

Niveau :

avancé

Consulté :

8 fois

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Sommaire :

Sommaire

L'Oreal within the cosmetics industry
1. Definition and scope
2. PEST analysis of the cosmetics industry
3. Porter's five forces analysis
4. SWOT analysis of L'Oreal
The best suited overseas expansion
1. An overseas expansion in China
2. The foreign market servicing (FMS) strategy to enter in China: foreign direct investment

Résumé :

The expansion of L'Oreal in China (titre original)

Since it was founded nearly a century ago by the chemist Eugène Schueller, L'Oreal has been focusing its research and expertise on one business: cosmetics. L'Oreal has consistently applied its policy of investing in research, ensuring that its products fulfil the highest possible standards of quality, safety and innovation in order to meet the beauty and well-being needs of men and women around the world. Because there is no single model of beauty, the group has 17 distinct and complementary brands enjoying worldwide recognition, each with different roots and offering the variety needed to match different physical features, tastes and lifestyles.
Since it was developed nearly a century ago, the cosmetics industry hasn't stopped its evolution. In 2000, the cosmetics industry represented a $166.2 billion market worldwide. As a result of research and innovation, this market was projected to reach $198.2 billion in the year 2003. The world market in cosmetics and fragrances is estimated to increase by 4 to 7% per year since 1995.
The cosmetics industry operates everywhere in the world. The biggest markets are Western Europe, North America and North-East Asia, in terms of numbers of customers and sales.
Cosmetics companies use to classify their customers and sales in four region:
Western Europe
North America
Japan
Rest of the world
The world's growth is dynamic, in particular in the region of "rest of the world". This region includes new and emergent countries such as Brazil, China, India and Russia for example. The growth of sales in this region was +7.3% between 2002 and 2003 and even more between 2003 and 2004, with an increase by 8.7%.
However, certain markets look mature, apparently not much extensible. The Western Europe market has increased by only 1.8% in 2004, and even worst, the Japanese market has suffered from a decrease in sales by 1%. In Europe, there was a sharp and an unforeseable drop in consumer spending. As an example, Germany and Japan are considered as mature markets mainly because of the unfavourable general economic climate; sales experienced a slight decline in 2004. There was no economic growth in Germany due to a high unemployment rate, which created a price consciousness for customers, and also to the development of private label products and discount stores.