Chinese skin-care product enters Africa

1. Pechoin Enters Africa
By Group 4
Jenny Amy Cindy Alicia

2. 1
Company Profile
2
Sociocultural Forces
3 Economic and Financial Forces
4
Legal and Regulatory Forces
5 Physical and Environmental Forces

3. Company Overview
History and Products
1.in the 1930s
 Set up in Shanghai; First generation of skin care goods
 Popularity both in China and Southeast Asia areas
Theme of „protection‟
2.In the 1980s
A period of growth; built a good reputation
Theme of „Nursing‟ and „Nutritious‟
Vaseline cream
3.From 2000 to 2007
Further development
herbal essence
4.After 2011
Moisturizer with herbal essence
Skin-care product leader

4. Why Africa? Why Pechion?
National gift effect
Think skin type not skin color
Darker skin tones also need Pechoin
Herbal essence; natural; without stimulus; nutritious; balance;
latest modern biotechnical achievements
Attractive price

5. Strategy Selection---Foreign direct investment
Foreign Subsidiary
The advantages
Presence abroad
Lesser investment
Decreased costs

6. Social Cultural Forces
Language:
1. English
2. French
Language
Tips:
barriers
3. Arabic
1.Different versions of
product introduction
4.Native language
2.Don‟t use the words
“negro” and “black”

7. Social Cultural Forces
Values and attitude
1.They care about
their outlook very
much. Women
like making up.
2.They like using
lipstick, nail polish
and perfume.
3.Color:They like
colorful things.
Tips:
Large
potential
market
1.R&D:Focus on
perfume, skin care
series and color
make-up series.
2.Package &
design

8. Social Cultural Forces
Personal
communication:
1.Greeting
2.Strong
handshake signify
trust and respect
3. Low
context(direct and
explicit)
Tips:
Business
negotiation 1.Good first
impression
2.Don‟t beat
around the
bush.
3.Consultant

9. Economic and Financial Forces

10. • 1 Tanzania shilling =0.380 RMB
• Higher price

11. annual per capital income
USD
4270
400
368.65
350
5000
300
4000
250
3000
2000
GDP
100 million USD
233.33
200
[]
150
100
1000
50
0
Tanzania
China
0
average GDP of Afican countries
Purchasing power:
weak
Affordable
Unit price of product:
relatively low
Tanzania

12. Low
Jobs
Lower the
unemployment
rate

13. Legal and Regulatory Forces
 Government corruption
 Inconstant policies
 More preferencial policies

14. Physical and Environmental Forces:
• Political environment
wars,conflicts,terrorism
activities and civil
commotions
• Agricultural
relatively backward
• Industry
weak
• Basic infrastructure
system
lag behind

15. LOGO
THANKS