Premium Essay


In: Business and Management

Submitted By pranavkk
Words 2188
Pages 9
By Pranav Krishnakumar | Herborist | Case Analysis Report |


The Scene
Herborist is a high-end Chinese personal care brand which incorporates traditional Chinese medicine using biotechnology. The brand is a huge success in China and wants to expand globally. It has already made entries into the global market with mixed results – Hong Kong not performing well while Paris was successful. With restricted resources, Herborist needs to decide which geography to enter next – Asia or Europe?

Advantages of global expansion * Market Growth - The global market for personal care products grew from US$356.14 billion in 2003 to US$487.72 billion in 2010. While the recession and economic downturn of 2008 impacted the developed markets (eg. USA) greatly, there was still strong growth in emerging markets such as countries from the Asia-Pacific region and also from Latin America.

* Natural Cosmetics and personal care products gaining popularity - With consumers being more environment conscious and more aware of the effects of the carcinogenic and synthetic products, there is a trend of natural based cosmetic products becoming more popular and hence a huge potential market.

* Unique and different product - Apart from being an organic product, Herborist was also unique in the fact that there weren’t any other products combining Chinese medicine and personal care. The personal care products were based on the principle that beauty and good health worked together, with good health being founded on the Chinese principle of yin and yang. This would help Herborist differentiate from other products in the crowded markets especially since analysts predict that unique products in the minds of the consumer would hold a significant market share.

Challenges of global expansion * ‘Made in China’ Tag - There might be a pre-conceived perception (Country of...

Similar Documents

Premium Essay

International Marketing Strategies for Herborist

...MA Design Management for Fashion Industries Name: Leong Ruoh Shiang Course: Fashion Brand Marketing Course Leader: Anna Watson Case Study: Chinese Herbal Medicine Cosmetics brand, Herborist Topic A International Marketing Strategies of Herborist Abstract This paper attempts to investigate the internationalization process of a Chinese domestic cosmetics brand, Herborist by making a comparison of marketing strategies applied for different countries as a case study. In addition, by gaining understanding on the development of a local brand and analyzing the issues, which block the way for business expansion, suggestions are made for the exploration of future potential market. This case study is mainly based on quantitative research, which was carried out in the form of a questionnaire conducted by 100 local and Malaysian Chinese. Besides from that, secondary data are taken from Internet and based on literatures published in English and Mandarin. The crucial steps for a domestics brand to enter the international arena is by utilizing different or undifferentiated strategy, reinforcing the innovation of Chinese oriental essence and also enhancement on brand awareness. Keywords- Oriental, Domestic cosmetics, International marketing strategy, Market entry, Brand story, France, International business, Marketing Channels 1. Introduction In recent years, it is obviously seen that there is a thriving and......

Words: 4563 - Pages: 19

Premium Essay


...INTERNATIONAL MARKETING STRATEGY FOR HERBORIST Thesis Wang Wei Degree Programme in International Business International Marketing Management Accepted____.____._____ ________________________________ SAVONIA UNIVERSITY OF APPLIED SCIENCES Business and Administration, Varkaus Degree Programme, option Bachelor of Business Administration, International Business, International Marketing Management Author(s) Wei Wang Title of study International Marketing Strategy for Herborist Type of project Date Pages Thesis Supervisor(s) of study 3.4.2011 65 Executive organization Tuula Linnas Abstract Herborist Chinese cosmetics industry is a booming industry and it is also one of the fastest growing industries in China. After China has joint WTO, with the tariff reduction, the tendency of the Chinese cosmetic market internationalization is inevitable. Herborist is a typical Chinese domestic cosmetics company. Now Herborist tries to find new customers and build core competitiveness. As they have already entered the Europe market to some extent, it is time for them to focus on international marketing strategies for the European market. The aim of this thesis project was to provide valuable marketing strategy for Herborist’s European market operations and to help the company to expand its operation to Europe. The study is mainly based on quantitative research. The data collection was carried out by a questionnaire. Qualitative research was carried......

Words: 12005 - Pages: 49

Free Essay


...佰草集好⽤用吗_百度搜索 13-12-19 上午8:47 | | | » : ? < > ! , ! , . < < > , > , , , , ! ! ? , , , ! ,100% ! ?_ 6 : ... 2008-04-09 2 3 >> 2012-09-21 2012-02-10 : 2008 04 09 “ ”7 ,28 ,7 ,.. ,28 “ ” , . ? [ ] 2011 -MOONBASA ? , . 26 , , ... 100% [ ] , ! , ,100.. , 4 11 . 2011-04-11 ?_ 22 ... , , , ?_ _ ?_ >> : 2010 10 , 10 ? _ , ... 7 5 21 2011-11-05 2013-09-08 2009-09-23 , , ,< 0 , , >,100% ,.. , 29! ,3 2010-10-10 < ji> .5 , .. < 20 < ji> >, 6.5 , 5 , , ... , , [ ] , , ? , , NALA 2011-10-05 ▶ 400-800-8888 :Herborist erborist : , ... 2013-11-01 :H ?20 ? , : 2010 1 2 , ? ? ? 2010-01-02 ?_ ? ? _ , , , ,... - 2009-04-18 ?? 19 23 : 2011 4 20 !, - - 2011-04-20 ... 2012-09-29 - _ , , 2012-03-22 , ? ,......

Words: 314 - Pages: 2

Premium Essay

The Body Shop Strategic Implementation Plan

...THE BODY SHOP Strategic Implementation Plan Table of Content Introduction 3 Section I Strategic Management Practices 4 1.1 The Body Shop’s Strategic Management Practices 4 1.2 Limitations and Alternative Approaches 6 1.3 Strategy proposed 7 Section II Corporate Governance 8 2.1 Evaluation of Governance structure 8 2.2 What is the stakeholder’s role? 9 2.2.1 Keep satisfied 10 2.2.2 Keep Informed 11 2.2.3 Key players 11 Section III Hard Changes in the Body Shop 13 3.1 Existing Value Chain 13 3.2 Adjustment 14 3.3 What strategy method should Body Shop undertake? 15 Section IV Culture and Leadership Changes 17 4.1 Strategic Change through Culture 17 4.1.1 Control Systems 19 4.1.2 Organisation and Power Structures 19 4.2 Strategic Change through Leadership 20 Section V Implementation Plan 21 5.1 Preliminary Activities to enter China 22 5.2 Procedure of starting a Business in China 23 5.3 Setting up the First Store 23 Conclusion 24 References 25 Introduction L’Oreal Group is the world’s largest cosmetic and beauty company, headquartered in France. It offers a vast amount of products and services across the cosmetic field, concentrating on make-up, hair care, skin care, perfumes and sun protection. L’Oreal divides its brand portfolio into five divisions, Professional products, L’Oreal Luxe, Consumer Products, Active cosmetics and The Body Shop, which covers different the lines to...

Words: 5911 - Pages: 24

Premium Essay

Chinese Luxury Market

...Up to now, Chinese bourgeoisie swore only by the famous international luxury brands such as LouisVuitton, Hermes or BMW. Today, some Chinese brands are trying to conquer a piece of the enormous cake: China will represent 20% (27 billion dollars) of the worldwide luxury market by 2015,. Watches, cosmetics, jewelry, spirits or clothing: here nine brands Qeelin NE Tiger Moutai Shang Xia Longio Hongqi Chow tai fook Herborist Dorian Ho which start to emerge and which hope to regild the image of the “made in China”. The brand Shang Xia was created by the French group Hermes to conquer the Chinese market only. For that, Hermes recruited the designer Jiang Qiong, also chairman of the company whose Hermes owns 90%. With 60% foreign customers with 40% Chinese , Shang Xia as well sells cashmere coats , furniture with zitan (an invaluable wood), or tea sets. After being launched in 2010 in Shanghai, the brand opened in September its second shop in China World, the luxurious Beijing business district. Its turnover would rise to approximately two million euros for 2011. After having started in the sale of fur and leather products in 1992, the brand Tiger (for Northeast Tiger – Tiger of Siberia) turned gradually to the haute couture. Today, its founder Zhang Zhifeng fixed himself for objective to reinvent the Chinese traditional dress. Its styles use ancestral techniques of weaving and silk embroidery. Tiger quickly imposed its « dna » at the fashion shows: the brand for example organized......

Words: 273 - Pages: 2

Premium Essay

No Need to Write About Anything

...MMS 172.01 MARKETING ACROSS BORDERS COURSE SYLLABUS – Spring 2012 Visiting Associate Professor: George L. Grody 408-6212 & 257-7818 (mobile) or Course Description: The course will investigate and discuss the theory and techniques used to market to the world’s different shoppers and consumers in both developing and industrialized economies and countries. You’ll gain an understanding of how to market to shoppers and consumers based on the varied insights of each target group. We’ll focus on the “Consumer is Boss” and understand how to influence them at the “First Moment of Truth” when the shopper makes a purchase decision and at the “Second Moment of Truth” when the brand is actually used and the consumer decides if it delivered against the brand promise. The course will include a team project to develop collaboration skills but also to gain deep insights into a specific target group and product. Class participation and discussion will be an important factor in class success. Course Objectives: Students will gain insights into: 1) the behaviors of the world’s consumers; 2) how those differences come about due to differing national, ethnic, cultural, and demographic influences; 3) how certain companies have succeeded and failed at addressing those differences; and 4) how to develop business and marketing strategies and plans to successfully address those differences. Course Materials: We will use a book “The......

Words: 1982 - Pages: 8

Premium Essay

Loreal Case Study

...Case Study: L'Oreal in China Allen Cha 1a) In a short time, the young Chinese cosmetic market has become quite saturated with numerous firms. In order for Yue Sai to position its brand effectively, it has to draw upon unique strengths that others do not have. Madam Yue-Sai created Yue Sai with the aim “to create, produce and sell the very best beauty and skincare products that we can offer to Asian women and to the world…” The company started under her belief that the Chinese women had different standards for beauty and required specifically tailored cosmetic products. If Yue Sai under Cotyhad continued to build its brand under this positioning instead of focusing on distribution, the brand would be a far more prominent player in the current Chinese market due to first mover advantage. Yue Sai is currently competing in target markets and product properties that it simply cannot succeed in. Consumers that are aware of Yue Sai’s original positioning brand image are most likely in their 30-50s. Luxury cosmetic firms do not traditionally target this consumer segment. If Yue Sai repositions its brand from “cosmetics for confident, modern Chinese women” to “delicate luxury cosmetics for modern mature Chinese women”, the brand would be able to instill a distinct image in the targeted consumer’s mind relative to competition. It is the ideal positioning for a brand named after Madam Yue-Sai, who now perfectly fits the new segment. It will be able to grab a dominant share of a...

Words: 1542 - Pages: 7

Free Essay

Management Analysis

...Case Analysis of L’Oreal Zhang Jiameng (Bryna) 0930822 Dr. Vijay Patel 2015.12.08 Table of Contents Overview and History…………………………………………………………….pg3 Current Situation and Major Issue…………………………………...………… pg3 Competitive and SWOT Factors ………….……………………………………..pg4 Major Objective and Why………………………………………………………..pg8 Alternatives and Assessment…………….……………………………………….pg9 Recommendation and Implementation…………………………………………pg10 Work Cited……………………………………………………………………….pg12 I. Overview and History The L’Oréal Group is a French cosmetics and beauty company founded by Eugene Schueller in 1909, headquartered in Clichy, Hauts-de-Seine. It is the world’s largest cosmetics company, which has developed activities in the field of cosmetics, concentrating on hair color, skin care and so on. In 1973, L’Oréal purchased Synthelabo to pursue its ambitions in the pharmaceutical field. Later on, Synthelabo merged with Sanofi in 1999 to become Sanofi-Synthelabo, which merged with Aventis in 2004 to become Sanofi-Aventis. In the same year, L’Oréal acquired Yue Sai. L’Oréal also purchased The Body Shop in 2006 and acquired major Chinese beauty brand Magic Holidings in 2014. Timeline of L’Oreal Group II. Current Situation and Major Issues 1. Current Situation 1) Global market: L’Oréal is the world’s largest cosmetics company, with worldwide sales of €19.5 billion in 2010. 2) Chinese market: * L’Oréal is the second largest beauty and skincare player in China and......

Words: 2313 - Pages: 10

Premium Essay


...LVMH: King of the Luxury Jungle SEPTEMBER 2009 Profit from temporary W&S woes to bag the stock at discount prices LVMH is the strongest player in the luxury goods industry, a giant in an industry where fixed costs make scale paramount; the only "two-legged" balanced player, leading with mega-brands in both Leather Goods and Wines & Spirits; enjoying stable group EBIT margins as a consequence Champagne consumer demand weakness, de-stocking and oversupply in 2010 are well understood; W&S concerns have depressed the stock close to 20-year trough multiples and in the same range of smaller and more volatile hard luxury players and other peers; an opportunity in our view On top of LVMH's unrivaled industry position, markets seem to under-appreciate cost-saving opportunities, brand-portfolio rationalization, higher FCF from lower W&S inventory investment, above-average mega-brands' results or support from first-mover EM inroads In a medium-term growth environment, LVMH has the chance to be a key consolidator in the luxury goods industry: a mega-merger with CFR would be a strategic master stroke, placing it ahead of any M&A counter move by competitors SEE DISCLOSURE APPENDIX OF THIS REPORT FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS LVMH: KING OF THE LUXURY JUNGLE 1 Portfolio Manager's Summary We have few doubts about the opportunity of investing in LVMH for the medium to long term. We expect "winners will continue to win" in the luxury......

Words: 54550 - Pages: 219