The Clarins group was created in 1954 by Jacques Courtin-Clarins. It is a public company with a supervisory board and a Board of Directors, with a capital of around 325 million Euros divided into 40.6 million shares. In the beginning, Jacques Courtin first opened a beauty parlor in Paris. He offered a range of essential oils which attracted the customers who wanted to use them at home. Subsequently, the Clarins Company was born.
The strength of the Group is based on two facts: it is attentive to women and really innovative in nature. It specialized in beauty care. In 1980, the group was the leader in the market for beauty care products in France and has been the uncontested European leader ever since the 1990s. Since then, it has diversified its activity by entering the makeup and perfume market in the 1990s.
Nowadays, the company has acquired international notoriety and has become a leader in many countries where beauty care is concerned. About 85% of the sales have been made abroad in France. Today, the group is composed of four famous brands. Clarins Paris is the promotion company which decided, from the 1990s, to make strategic alliances to distribute perfume from prestigious brand.
Thierry Mugler, entered the Group by contracting, and established a partnership with Clarins in 1992. This was the society that was entirely owned by Clarins in 1997. In 1995, Azzaro became a subsidiary when Clarins acquired its perfumes. Later, Cardente Stella joined in 2002. And finally the Group signed the agreement with the creative artist of the brand to create a perfume together for the first time. The propriety of the brand is shared between two other partners at equal shares.
They regularly launched new perfumes of the entire brand with their alliances. The same year, the company decided to target modern men as well. So, they launched a range of 15 products under the name of "Clarins men". The group did not have local stores where they could sell these products and so they mainly used retail subsidiaries and chains to sell their products.
The brand is present in 150 countries through 20 retail subsidiaries with more than 150 agents. This group is also present in the stock exchange since 1984 at Euronext Paris. The share prices are steadily increasing. The Clarins brand has become, nowadays, one of the main agents on the upscale cosmetics market. It is besides the number one with respect to the beauty care products in Europe, with market shares equalling 16% and it has strong positions outside Europe as well.
The group was opened to the exterior as, 85% of the sales were made outside France. More precisely, around 60 % of the sales revenue was made in Europe. The group has subsidiaries in United Kingdom, Germany, Switzerland, Spain, Portugal, Belgium, Italy, Netherlands and Austria. 25% of the sales revenue was made in North America. Subsidiaries are present in United States (which was the first one in 1981), Canada and Mexico.
Tags: The Clarins group, cosmetics market, stock exchange, local stores, retail subsidiaries, Azzaro, European leader
[...] The level of life is also improving. • The GDP is steadily increasing, equalling 692 billion dollars. • The inflation rate reaches • The unemployment rate equals 8%. Socio-cultural • They are firmly for the protection of environment, along with the ban of cosmetics industry tests products on animals. • The demography: The population is growing, and really young. • The main religions are Hinduism and Islam. Technological • The D capabilities is not relevant as everything is settled in France. [...]
[...] The first part will study the position of Clarins within the cosmetics industry, then, the second part will explain why India is the best suited overseas expansion country, and finally, the last part will explain with which foreign market servicing strategy it is best suited. Contents Part Introduction of Clarins 1. Presentation of the Group 2. Clarins market and the international policy What is their actual way of managing? 4. The SWOT Analysis Part The best suited country to expand 1. Pursue the expansion in Asia 2. Presentation of India and its beauty care market Characteristics, facts The beauty care market in India 3. Difficulties to face Part Which strategy to expand? [...]
[...] There was only 1 mall in India in 1999, whereas there are around 200 nowadays. This shows how much the country is developing. A PEST analysis will underline the Indian facts and show the real potential it represents. PEST stands for Political, Economic, Socio-cultural and Technological. The analysis is a supplementary way to help take the decision to expand in the studied country. Political: • The political system is a combine between a parliamentary democracy and a federal republic. • The currency is the Indian Rupee, its exchange rate is stable. [...]
[...] ) ( It has strong values, such as the respect of environment, ban of animal testing, and deep respect for woman. It is involved in many associations protecting women. The weaknesses ( The small size of the Group represents a handicap in face of the major companies of the sector, for example, L'Oreal. ( The top of the range positioning can be penalizing in difficult periods. ( The Group is exposed to dollar fluctuations. ( The perfume sector, including Clarins, is becoming more and more dependant and is affected with excessive offer. [...]
[...] It is moreover risky for the brand image. This step also requires strong quality and auditing controls, which is costly. It leads to the loss of potential profits as well. These two methods are only appropriate solutions when there is sgnificant competition in the foreign market which is not the case for the time being. The final reason is that Clarins firmly wants to be independent and won't agree to “share” its products with other companies. Then, an international joint venture has to be explained. [...]
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