L'Oréal in China

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Case Details:

Case Code : MKTG214
Case Length : 16 Pages
Period : 1996-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : L'Oréal
Industry : Cosmetics
Countries : China

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

L'Oréal was started by French chemist Eugène Schueller (Schueller) in 1907 in Paris. He developed a hair dye, which he called Auréole, and sold it among the hairdressers in Paris. This dye, unlike others present in the market, was gentle on the hair...

Entry into China

L'Oréal entered the Chinese mainland in 1996 and began its operations in 1997. According to Gasparrini, till the late 1990s, L'Oréal had very little presence in the country. There were only a few makeup counters in some stores in big cities like Shanghai and Beijing. Initially, L'Oréal did not have any office in Shanghai...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

L'oréal's Strategies in China

During the initial years of L'Oréal's entry into China, one of the biggest challenges the company faced was to convince local people that a foreign brand could understand their needs and sell suitable products...

The Challenges

The Chinese cosmetics industry was highly fragmented with hundreds of brands present in various categories. L'Oréal faced stiff competition from local cosmetics companies as they possessed deep market knowledge and access to wider distribution networks...

Exhibits

Exhibit I: L'Oreal's Sales Report (2008)
Exhibit II: P&G in China
Exhibit III: A Note on the Cosmetics Industry in China
Exhibit IV: Brands Under L'Oréal

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