LOreal: Expansion in China Harvard Case Solution & Analysis

Leading cosmetic companies in the world are competing with - and buy - local businesses to share makeup vanity money China. French cosmetics giant L'Oreal captures a significant share of the Chinese make-up market. The company recently announced the acquisition of the Chinese cosmetics brand Yue-Sai. Surprising announcement came just 45 days after the L'Oreal made a successful bid for Raystar Cosmetics (Shenzhen) skin care brand Ltd., Mininurse, at the beginning of this year. L'Oreal has been very successful in high-end and middle segments of the cosmetic market in China. The last two acquisitions, however, show that L'Oreal is focusing more on the mass market and shows our determination to increase the pace of its growth in China. It also shows how the cosmetics trade has become a red-hot in China. Competition situation that L'Oreal face? How can L'Oreal retain its leading position in China? This is at the expense of the purchase or improvement of their products? What will be the impact of future tariff reductions? "Hide
by Zhigang Tao, Li Dongya Source: University of Hong Kong, 16 pages. Publication date: April 11, 2006. Prod. #: HKU570-PDF-ENG

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