Making China Beautiful: Shiseido & the China Market

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I. Problem The Shiseido company is weak in understanding the market needs and is looking to create a strategy that will both increase global market share and reap success in the high potential Chinese market. II. Alternatives/Recommendations

1) Invest heavily in market research section in order to create market-driven products and services. a. Shiseido needs to consistently stay one step ahead when it comes to industry trends to establish itself as a unique brand as opposed to an imitator. The company is strong in the development of innovative, quality products, but needs to be able to attune their offerings to be able to better fit the market. b. Consumer tastes are consistently changing in both preferences for products and for distribution channel. Research shows that Chinese cosmetic consumers exhibit seasonal consumption of products. In Shanghai specifically, due to the significant difference in climate between winter and summer months, Chinese people change their habits according to the season (Brandsource, 2009). 2) Design specialty stores with an emphasis in skin-care. c. Shiseido should consider designing specialty stores that showcase different skin-care products and product lines with an emphasis on the value of natural, herbal ingredients. i. Pro: Packaged Facts, a U.S. market research firm, in its forecast that the U.S. Cosmeceuticals Market will reach $21 billion by 2012 valued the skin-care category at $8.9 billion alone in 2007 (Packaged Facts, 2008). Additionally, there is a distinct preference in China towards cosmetic products using natural ingredients. Chinese consumers fear the risks of chemical products and are strongly convinced that natural products are more efficient that chemical ones (Brandsource, 2009). ii. Con: A focus on skin-care would change the perception of the company and imaging of its beauty products. d. The Specialty...
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