Internation Business - Cosmetics Export Plan to China
MakeX Natural Cosmetics
Export Business Plan
Mariaviola Bombagli Globalisation & Integration Prof. Westbroek Individual Assignment February 1st, 2011
MakeX Natural Cosmetics Export Plan
Bombagli M
Abstract
MakeX is a natural cosmetics company that plans on expanding its market to China. As the Chinese cosmetics market is proving to be one of the fastest growing businesses, it appears to be a good place for the company to start expanding internationally. In order to successfully conduct such business venture, MakeX has to develop a thorough business plan that will take into account cultural and legislative issues, export strategies and product adaptation as well as market research of every target segment. The goal of this plan is to propose a entering strategy that will relieve MakeX from taking high risks at the initial stage of products test run and also present a possible long-term strategy in case of successful establishment of the brand within the Chinese market; namely, we propose that the company proceeds with direct exporting through a retail distributor, Sephora, for a year and later evaluates the opportunities for it to conduct the business independently, including marketing and operational management processes.
Introduction: MakeX
MakeX is a natural cosmetics company based in Brussels, Belgium. It entered the Belgian market two years ago by introducing a product line rich of diverse cosmetics for all target consumers. Such variety of products has allowed the company to directly test any segment of the cosmetics business market. Due to the success within their Belgian internal market, MakeX has also expanded in the last few years its market to France through the distributing cosmetics chain Sephora. The European market has shown great approval of the company’s products, reason why it is now planning to extend its business to Asia, beginning with China. The Chinese cosmetics market has been steadily growing in the past few years, in
Export Business Plan
Mariaviola Bombagli Globalisation & Integration Prof. Westbroek Individual Assignment February 1st, 2011
MakeX Natural Cosmetics Export Plan
Bombagli M
Abstract
MakeX is a natural cosmetics company that plans on expanding its market to China. As the Chinese cosmetics market is proving to be one of the fastest growing businesses, it appears to be a good place for the company to start expanding internationally. In order to successfully conduct such business venture, MakeX has to develop a thorough business plan that will take into account cultural and legislative issues, export strategies and product adaptation as well as market research of every target segment. The goal of this plan is to propose a entering strategy that will relieve MakeX from taking high risks at the initial stage of products test run and also present a possible long-term strategy in case of successful establishment of the brand within the Chinese market; namely, we propose that the company proceeds with direct exporting through a retail distributor, Sephora, for a year and later evaluates the opportunities for it to conduct the business independently, including marketing and operational management processes.
Introduction: MakeX
MakeX is a natural cosmetics company based in Brussels, Belgium. It entered the Belgian market two years ago by introducing a product line rich of diverse cosmetics for all target consumers. Such variety of products has allowed the company to directly test any segment of the cosmetics business market. Due to the success within their Belgian internal market, MakeX has also expanded in the last few years its market to France through the distributing cosmetics chain Sephora. The European market has shown great approval of the company’s products, reason why it is now planning to extend its business to Asia, beginning with China. The Chinese cosmetics market has been steadily growing in the past few years, in
References: Li & Fung Research Centre (2010). Revisiting China’s Cosmetics Market. Industry Series, issue 9. Ho, Cynthia (2007). China’s cosmetics market predicted to grow between 15% to 20% in coming 3 years. Press Information TNS, Hong Kong. Sephora, Official Website. http://www.sephora.com/help/about_sephora.jhtml?location=sephora, retrieved on January 25th, 2011 9