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Cosmetic Industry Insights and Marketing Strategy Analysis of L’Oreal in China
- 1 Chongqing Normal University
* Author to whom correspondence should be addressed.
Abstract
With the expansion of China cosmetic market, many cosmetic groups are engaging in expend their market share. However, the development of cosmetics led to diversified consumers’ needs. Some of customers want to get more skincare products for sensitive skin meanwhile the others care about makeup products' characteristics. Various demands have led to the constant updating of the development strategies of the cosmetic groups. Through reading the literature and research reports on Chinese cosmetics in recent years, it is found that the Chinese cosmetics market is oligopolistic and L’Oreal is the biggest one in several big international groups. However, the rise of domestic cosmetic brands makes these big international groups feel threatened. Domestic brands have a better understanding on physiological and psychological needs of Chinese, even Asian consumers, which make them have the strong competitiveness. In the paper, 4Ps model and Porter’s five forces model are used to analyze the current situation of the cosmetics market and the competitiveness of L 'Oreal Group. Finally, some implications are demonstrated from the perspective of culture, brand introduction, optimization of advertising structure, and consumers’ demands to help L’Oreal improve its competitiveness.
Keywords
L’Oreal, cosmetic, 4P, Porter’s Five Forces model
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Cite this article
Lv,M. (2023). Cosmetic Industry Insights and Marketing Strategy Analysis of L’Oreal in China. Advances in Economics, Management and Political Sciences,7,57-64.
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