M25BSS RESEARCH METHODS
Name: You Sheng
Student Number: 5100659
The Body Shop’s International expansion into China
The improvement of material makes people pay more attention to their appearance, and skin care products from the luxury to become the necessities of life. China is a country with a large population, and Chinese also has the tradition of using skin care products, thus the development of skin care products in China has great potential market. C2CC China Cosmetics Network revealed that in 2011, the market retail of Chinese cosmetics amounted to 13.7 billion yuan, of which the sales of skin care market reached 49.2 billion yuan, accounted for 35.88% of the entire cosmetics industry, a year-on-year growth of 12.06%, of which the market capacity of high-end skincare was about 19.2 billion yuan, nearly 3 times that of 2006. The compound annual growth rate of 2006-2011 is 22%, which fully reflects the residents' huge demand for high-end products after the upgrading of income. C2CC China Cosmetics Network also expected that to 2016, the market capacity of high-end skin care products will reach nearly 40 billion yuan, and the next 5 years will still maintain an average annual growth rate of nearly 15%. And, the market size of women's skincare products will continue to grow, the emerging market of children's high-end skincare products, men’s skincare products and aged skincare products prospect for a broaden development (C2CC China Cosmetics Network,2012). In the face of such a potential market, apart from the numerous and uneven level Chinese domestic cosmetics brands, many international cosmetics giants have entered Chinese high-end cosmetics market. The success of multi-national corporations not only requires abundant capital, advanced technology, and quality products and brands, but also needs effective international strategy, which is determined by market, culture, legal policy and so on. Therefore all cosmetics brands holding the forefront market share in Chinese are multinational cosmetics brands. This situation proposes that it is necessary for Body Shop to weight whether to enter into Chinese market or not
3. Preliminary Review of the Literature
This preliminary review will focus on marketing and business strategy theories. Marketing started in the early 20 century in USA. For decades, with the development of social economy and market economy, marketing has undergone a fundamental change, evolving into the modern market marketing from the traditional marketing, with application being extended from profit organizations to non-profit organization and from domestic to international. Many scholars have proposed definition marketing from different point view. One of the most complete and comprehensive definition is that marketing is the process of ideas, design of products and services, pricing, promotion, distribution planning and implementation, thereby generating exchanges that satisfy individual and organizational objectives (AMA,1985). This definition has expanded product concept from product or service to ideas, has expanded the marketing concept from profitable business activities to non-profit organization activities, has stressed that the exchange process and projected the formulation and implementation of marketing plans. Philip and Graham specially defined international marketing as the activities of planning, pricing, promotion and guidance of goods or services to enter into more than one foreign country consumers or users so as to obtain profits (Philip & Graham, 2008) Since marketing concept being proposed, the theoretical filed has also carried out extensive and in-depth study on the marketing strategy. The evolution of international marketing strategy theory can be summarized as "4P-4C-4R-4V". The details are as follows:
Times and proposer
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