In the world cosmetic market the Chinese cosmetic market is showing the highest rate of growth. With a history of only over thirty years, its production scale has grown up to the 2nd place in the Asian market and the 8th place in the world market, glo...
In the world cosmetic market the Chinese cosmetic market is showing the highest rate of growth. With a history of only over thirty years, its production scale has grown up to the 2nd place in the Asian market and the 8th place in the world market, glorifying its vertical growth rate over a two-digit number every year. Now the Chinese cosmetic market is filled with all the advanced global brands such as P&G, Shiseido, Amway, Wella, and Roreal. These companies are fiercely competing.
Competition among cosmetics has evolved into all round competitions of prices, sales model, market propaganda, marketing channels, corporate culture, and many other forms. Facing these various changes, cosmetic enterprises have examined and adjusted their own marketing strategies to meet the challenges of fierce market.
From the beginning of the 1990s, Korean companies positively advanced to the market , soon after a friendly relationship was formed between Korea and China. Korean companies entered the Chinese market later than other global enterprises of EU, the United States and Japan . At the first time, because the companies had no actual experience in the market, they could not adapt themselves to the local market until they experienced severe trials and failures for several years.
This paper analysed systematically the Korean cosmetic companies's strategies of making inroads to China by selecting Korean Amore Pacific Group as the object of study. Amore Pacific Group enterd the Chinese market by opening a store in Shenyang in 1993. It adopted a lot of strategies to establish its brand image and gain the trust of the Chinese customers, such as localizing strategy, niche marketing strategy, brand strategy, price strategy and high-class strategy. By now, Amore Pacific Group has successfully achieved a growth rate of 15 percent annum in China. It is forecasted that China will become the largest market in Asia in 2010 for Amore Pacific Group.
It is expected that by understanding various variables in the market, responding more positively to its changes, and highlighting the advantages of the cosmetics made in Korea, Korean enterprises will be able to compete fairly with advanced global ones and covert Chinese market into Korean second domestic demand market .
key word: Korean cosmetic firms, strategies, Chinese market,