With 1.322 billion people, China is the most populous country in the world and thus the largest market in the world. Although it has a communist past of the Soviet model, since 1978 the Government of the People's Republic of China has reformed its economy in order to gradually open the market economy. These reforms have enabled China to grow exponentially with the highest growth rate in the world, around 10% per year from 1990 to 2005, and then approximately 9.5% in 2006 and 2007.
In addition, the country joined the World Trade Organization in 2001 and attracts investment from many foreign manufacturers and retailers (about 80 billion US dollars in 2007 according to the site aujourdhuilachine.com). In 2008, China held the position as the third largest economy behind the US and Japan, it is clear that many markets will remain particularly difficult to penetrate due to the local culture, or rather the local cultures.
Yet, unlike the vast majority of developed countries, the market for goods and services is still far from saturated in China. The cosmetics market is a perfect example. Although this market is changing by about 25% a year since China joined the WTO, we find that the use of cosmetic products in rural areas remains relatively marginal, because the use of makeup and other products for 'beautification' does not correspond to traditional customs and manners.
Alongside the economic expansion in China, the emergence of the middle class as well as its increasing purchasing power has given birth to a strong demand for technology products, especially that of the computer and the internet. In effect since February 2008, with its 220 million users, China has become the country with the largest number of connected users, surpassing the United States with its 215 million users.
Thus, the internet sector represented about 7% of Chinese GDP in 2008. With the expansion of the internet, many cosmetic companies like L'Oreal have appeared on the Chinese web. According to the testimony of Kamel Ouadi, director of marketing and CRM of a French giant in China (Atelier BNP Paribas, March 10, 2006): "Its main on-line experience is focused on the portal Elad, which is a real success story."
In a context of strong economic development in China, how can the Internet enable it to better export cosmetics to the country where much of the population currently has some reluctance to consume?
At first, this document will present the Chinese market for cosmetics with its opportunities and threats, then in a second step the evolution of the Internet in China with the purchasing behavior of shoppers will be presented and, lastly, the document will answer the problem by giving recommendations to new entrants in the market.
The definition of cosmetics according to Article 1 of the European cosmetics directive is as follows (Wikipedia): "A cosmetic is any substance or preparation intended for placing in contact with various parts of the human body, including the epidermis, hair system, the external organs, teeth and mucous membranes, with a view exclusively or mainly, to clean, protect, perfume, keep in good repair the human body to change its appearance or to correct the odor. Cosmetics are products of hygiene and beautification.
More generally, the cosmetic is the set of procedures and treatments to beautify. There is talk of cosmetic work when something needs to be treated have not be changed."
Tags: China; cosmetics; internet; Chinese cosmetic markets on the internet
[...] And yet it is in these provinces within the country, which are far from major economic centers, the distribution channel, the Internet can play a vital role in the marketing of cosmetic products in China. Being relatively far from major stores through which it distributes these products more frequently, people in remote areas would be able to buy them from a distance (if the type of product and storage conditions permitted) via the web. However this target market can be accessed by a redistribution of wealth in the country, and delivery orders can be done by reliable transport networks Threats related to economic infrastructure. Transport networks have grown considerably over the past 20 years. [...]
[...] The lipstick comes first, followed closely by the foundation. We note that consumers are relatively young since they generally have less than 30 years and are urban. The makeup is frowned upon in China. In terms of occupational categories, the main proponents of makeup are the office workers from the middle class. They have a certain demand for quality products, but still remain very interested in products with attractive price. There are also wealthy women, who wish to affirm their social status with the use of high-end makeup Hair products Such as makeup, hair products represent a very significant market share; these are the shampoos, coloring and other personal care products. [...]
[...] The shops are the most popular channels of the Middle Kingdom. There is a human contact during the sale, a professional can advise on products and explain their functions. There are also small shops which would be less than twenty square meters where the main products will be foods, cosmetic products that are sold in these shops are mostly products of personal hygiene and basic customers are very price sensitive, especially in rural areas Specialty stores Specialty stores grow especially in the south; it is sometimes the cosmetics companies that distribute their own products under their names as Yves Rocher or The Body Shop. [...]
[...] • The interactive nature of • Does not allow Internet content and the solid segmentation by geographic location information can be transmitted. as it has not made contact with the • The possibility of prospect (cultural diversity). partnerships with sites of health • Internet is also a tool information, for example. for radical propaganda and boycott • A way for men to learn calls (if the anti-French in April about cosmetics avoiding the gaze 2008). of others. • Canvas monitored and censored by government authorities. [...]
[...] Women between 50 and 65 belong to a generation for whom the makeup is not part of morals. However, they can be seduced by skin care or hair care. Beyond 65 years, consumers use cosmetics only occasionally. However, it is conceivable that by one or several generations of Chinese women over 35 will have eating habits similar to those of European women. Presentation of the main threats of the cosmetics market in China Cultural constraints The image of cosmetics in the consumer's mind. In China, consumption of cosmetics violates cultural taboos. [...]
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