复旦大学：《中国市场营销 Marketing in China》课堂展示案例_Market study of L’Oréal

LO○REAL Market study of Loreal Kim Jiwon essie)11340696045 Vong Siew Fong 11340126053

Market study of L’Oréal Kim Jiwon (Jessie) 11340696045 Wong Siew Fong 11340126053

Contents Market overview Chinese beauty market consumer behavior Company overview Main business > LOreals business model in china >LOreal in China Situation competitors in China(local intl Challenges problems Recommendation LOREAL

Contents ➢ Market overview ➢ Chinese beauty market consumer behavior ➢ Company overview & Main business ➢ L'Oréal’s business model in china ➢ L'Oré al in China ➢ Situation & competitors in China (local & intl’) ➢ Challenges & problems ➢ Recommendation

Market overview Global beauty market LOREAL

Market overview Global beauty market

Global beauty market lobal beauty market to reach $265. due to an in Compound annual Personal Care Industry gro Reaching $630billion metics. Fragr 3.4% by2017 arch from Lucite g lifestyles are industry, which is forecasted to reach a 265 billion by 2017. Euromonitor reveals the Demand from Asia Pa Premium Cosmetics ysis, recko outperformed Mass cific region generated row at a CAG $21billion increment Cosmetics the next five easing al retail value (growth of 4.7%) pe and the Asia Pa Rapid gi LOR日 Last month, the market researcher noted the 'personal care products industry as reaching $630 (6487)billion by 2017. the report then focused mainly on the likes of sunscreens, deodrants and skin

Global beauty market Compound annual growth rate 3.4% Personal Care Industry Reaching $630billion by 2017 Premium Cosmetics outperformed Mass Cosmetics (growth of 4.7%) Demand from Asia Pa cific region generated $21billion increment al retail value

Chinese beauty market LOREAL

Chinese beauty market

Chinas Beauty Market Retail sales increased by 17% year-on-year Foreign cosmetics enterprises captured about 80% market share in key cities Cosmetics sales growth relatively slower in tier 1 cities 1400 18.7% 169%16%103 20% 170% 1000 8 15% 21.4 600 18.3 11.3 20082009201020112012 Sales value ■Ter1■Tier2■Tier3 Source National Bureau of statistics of China ANNUAL GROWTH LOREAL

China’s Beauty Market • Retail sales increased by 17% year-on-year • Foreign cosmetics enterprises captured about 80% market share in key cities • Cosmetics sales growth relatively slower in tier 1 cities 11.3 18.3 21.4 ANNUAL GROWTH Tier 1 Tier 2 Tier 3

China's beauty Market Shifting away from the traditional distribution channels Health and beauty retailers and online retailers replacing Grocery retailers and departmental stores retail value rsp 2011 Grocery Retailers -Hypermarkets 265 Non-Grocery Retailers -Health and Beauty Retailers 119 Chemists/Pharmacies --Parapharmacies/Drugstores -Other Health and Beauty Retailers 0.2 28.7 -Other Non-Grocery Retailers 0.1 Non-Store Retail 14.6 19 LOREAL

China’s Beauty Market • Shifting away from the traditional distribution channels Health and beauty retailers and Online retailers replacing Grocery retailers and departmental stores

China's Beauty Market Socioeconomic factors Lack of makeup culture: only 10%-15%of the market is Makeup products Increasing recognition to local brands TCM and Herbal Culture 百懂羚 草血护肤就用百雀羚 AUPRES 1000亿胞生命之题”一千细 阻若无龄美鼠新生 人

China’s Beauty Market: Socioeconomic factors • Lack of makeup culture: only 10%-15% of the market is Makeup products • Increasing recognition to Local brands • TCM and Herbal Culture

Company overview LOREAL

Company overview

L'Oreal Started in French in 1909 World's largest cosmetics company, with worldwi de sales of 22,5 billion in 2012 n 130 countries on five continents Unrivalled portfolio of 27 brands SHARINO EAUTY WITHALL 2 main divisions The Luxury product Division(LPD The Consumer product Division( CPD LOREAL

L'Oréal • Started in French in 1909 • World’s largest cosmetics company, with worldwi de sales of €22.5 billion in 2012 • In 130 countries on five continents • Unrivalled portfolio of 27 brands • 2 main divisions - The Luxury Product Division (LPD) - The Consumer Product Division (CPD)