China cosmetic market 40 years back
Current Scenario in china
Growth Rate of cosmetic market : 20 to 25
% per year
The total current value of China's beauty
and cosmetics market was between 3.9
and 4.3 billions euros in 2005
Target Consumers: women around 20/35
Culture variables of China
Private(China) vs Public Circles(West)
Language : Subtle and indirect
Perception: Symbolic value of products
Motivation : Ownership vs Replenishment
Learning and Memory: University Special Classes
Age: Too Young
Self Concept: Japanese Influence
Gender roles: soft makeup
Attitude towards change: Effective salespersons
Purchase: Not so expert advice
Country-product image: Label concept
In 2003, the cosmetic market in Japan was 17 million
Japanese companies held 70 percent of the market
with leading 5 companies like shiseido, pola, kosa,
koa, kanebo accounting for 49% of the sales.
The cultural variables
Space- entering into the private closed circles by the
European who tend to socialize with larger grouper
was a challenge.
Language-European people tend to direct frank,
straightforward in their communication, while
Japanese people generally prefer an indirect, subtle,
Influence of Culture
Perception-in japan, blue is associated with high
quality, red with happiness and purple with
expensive. One of the Japanese girl said “it is better
to look white.” and “it is more elegant.”
Motivation- according to the Japanese girls
interviewed they said that the make-up helped them
feel confident about themselves. For them buying
make up was more about quality than brand.
Age- In japan- younger women use more make-up
than older woman. According to her girls start to
make-up earlier and earlier.
Self- concept- Japanese girls used make-up more and
more because they were afraid of the opinion of the
people after seeing them without make-up. Japanese
girls are perceived to have different skins as
compared to other Asians.
Group influence-Due to peer influence more girls
used make up on daily basis.
Attitude toward change- Japanese people want
newer products all the time, the average life cycle of
a product is 6 months for them.
Purchase- Japanese people want a lot of information
before buying any cosmetic products as they are
experts in area.
Country image of the product- Japanese people
don’t like products from any other country. Even if
they are from other Asian countries they reject them
outright. So L'Oreal japan was introduced.
• South Korean women preferred very light pink or beige colours.
• South Korean people prefer descriptive advertisements.
• According to South Korean girls interviewed, young generation
prefers natural make up which was not the case earlier.
• Earlier their mother’s used more colours but now make-up is
more natural and it doesn't have to be more visible.
• Korean girls generally think, and are considered, as one of the
most beautiful girls in Asia. They think they are very special.
• In Korea, make up is well seen in the society as
long as it is not too much and looks natural.
Country product image:
• Korean people prefer products made in France and US
because they feel confident worth it.
• South Korean girls said that they prefer using famous
brands when they don’t know a product as,
“South Korea is not popular for brands”.
Hofstede’s Cultural Dimension
France vs. South Korea
Adaptation Strategy in Asian Markets
Product acceptability in particular Asian Market
Selling features and brand-name decisions
Labeling requirements , packaging and repackaging
The effect of culture on product decisions
Organization of tests and surveys
L'Oréal strategy in China
Acquisition of local brands to adapt to local market.
Opened R&D facility in Pudong
Purchase of two production facilities and Training Development Centre
Setting up of Local management and marketing center
Tie up with local models as brand ambassador
Product- oriented advertisement
L'Oréal strategy in Japan
L’Oreal put Sun Protection Factor in its primary cosmetic products to be
protected from sun.
L’Oreal packaged cosmetic products in small, simple, ‘Zen’, light coloured
L’Oreal focus on Selective marketing than Mass Marketing
L’Oreal trained salesperson because Japanese people are expert in
L'Oréal strategy in South Korea
L’Oreal changed its tagline to ‘You are worth it’
Globalization of business
Export of local beauty related phenomenon
Focus on skincare products
Acquisition of Clarisonic vibrating cleansing device
Developed a Pure Mineral Fresh Glow BB Cream for Korean consumers
The influence of culture on purchase aspects
of the consumer behaviour
Individualism versus collectivism
Neutral versus affective
Specific versus diffuse
So the elements of culture influence the consumer behavior
1) They change the way of analyzing a situation
2) Reacting to it
3) Behaving in general
That’s why consumer behavior aspects will be analyzed and
used by the firms in order to create and implement the most
Hinweis der Redaktion
The needs of an individual can be classified as a hierarchy from physiological needs (hunger, thirst) at the bottom, to safety needs (security, protection), to social needs (sense of belonging, love), to esteem needs (self-esteem, recognition, status), to selfactualization needs (self-development, actualization) at the top. The needs at the bottom of the hierarchy such as thirst tend to be satisfied first whereas needs at the top of the hierarchy such as realization tend to be satisfied last. Culture can impact on the needs at every level of the hierarchy. However, the higher in the hierarchy, the greater the impact of the culture is. The research is showing that both specific needs and their ranking can vary from culture to culture.
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