Sephora is a PARIS , France based multinational company of personal care and beauty products owned by LVMH Moet Hennessy Louis Vuitton. Sephora has a different rang of product like Makeup ,Body care, Fragrance ,Hair care from more than 300 brands. Sephora expanded his business in different countries like U.S.A, China, Australia, Canada etcetera. By the end 2017, Sephora owned 222 stores covering different cities in China. But Sephora is more famous in Australia and U.S.A so to increase the sales in China different strategies have to be applied like in China everything is digital so strategies are according to their culture.
Consumers in the age group of 18-30 have more craze of buying cosmetic product than the consumers in an old aged. As Sephora gets stiff competition from the L’OREAL Company as it is at the toped list in China so to take that position different strategies have to be applied.First strategy, is to increase the sales of Sephora by winning the trust of Chinese people because they are willing to pay high prices for a better quality as China is a brilliant opportunities market for international beauty brands but it is not an easy market .
we have to build the faith first then they will be able to develop their business. Secondly we have to do a pull strategy and showing the benefits of Sephora beauty product and why it is better from the L’OREAL as in China women don’t test the product they only see the benefits and the most expensive product because they want to show off their status as HIGHER IS BETTER .
We can offer a clean product strategy which L’OREAL didn’t offer as this clean product strategy is applied in US too so their sales increased from 24% to 33%.Third strategy will be to provide them organic products or natural product as they are more concerned with the pollution problem. Fourth strategy will be that consumers are actively searching new products from magazine of beauty, e-commerce website like JD and social media is a core strategic element to influence consumers easily. What they will care about the comment of consumers on these website especially they prefer to check 3rd party on Toboa because they know comments are real. So, what we will do we will start selling to a small retailer first as a start to create awareness about the product after that our next step is to distribute to wholesalers this will help in quick and increased sales.
As Sephora is already a reputed company in U.S.A and Australia so it will be easy for us to increase sale by multi-tasking pricing strategy. However, consumer in china mainly focus on individualism so it will be easy for as they are making their decision by their own. We can also use push strategy to distributes flyer as well as the great discount to first early arrival this will be beneficial for the growth of the company. In 2018, survey showed that 75% of Chinese consumers are not happy with the body care products as they don’t fit according to the demand of the customer .So, we can take advantage of this as we have study in detailed that high quality, expensive ,fragrance and creamy are their first preferences .We need more employees like Chinese staff so that we can understand their social norms plus there will be advertising cost but that we all can cover buy selling at high price. We have to work in a team from planning to organising , organising to leading and leading to controlling.
Advantages of implemented these strategiesprofit growth “By focusing on digital advertising technique it will help to build a good rapport with chinese consumer as in june 2018 30%of the chinese population register on these website xiaohongshu № so this would be easy platform for us to win their trust and exposure with them.For company .Moreover,they want to show purchasing power to they company.Political stability-political risk in china is compartively low due to the autocracy party political system.So this will be benefical for our company.Employess getl motivated and help in acheiveing goals-by providing training to the employees of cross-cultural training programmes this will help to living and working inchinese culture so that emloyees will share progress towards goal and relay on the company how they feel.
As cultural awarness is the key to success if we have to work across boardersfirst mover advantage:chinese people love foreign products so if we deal properly we can easily grow our business. Disadvantages of following this startegy1.High cost:this will include high advertisement cost as chinese consumer first search and than they use that product .As they want expensive product to show off to the society so we have to do advertisement a lot.2.Deals:as sephora is the popular brand in other countries so we have to give huge discount ,arrange eventts ,seminar for the consumers as awareness is the root to success.As slowly and slowly we will reach that platform.3.Language communication barrier:chinese people are very literate so they listen very carefully what you say they marked your words.
Whether it’s an online sale, store sale or an event Sephora is going to attain no.1 position in cosmetic and beauty care products as slow and steady wins the race. Advertising program is going to beneficial as this strategy have a significant impact on economic and social sales. With the increase in the income of china population of 21% their spending and demand for these products increases. Moreover with a higher prices these product are in huge demand and china is the leading one in cosmetic products. So this will be a profitable strategy to invest money in china all we have to do is to provide cross-cultural training to the employees. However, social media website is also helpful to grab the attention of Chinese people and also help consumers to make a decision. We have to keep in mind the 3P’s of marketing as this will help in achieving our goal. Mainly, we have to focus that our employees should be motivated and we are giving them incentives and bonus because they are the only one who can progress our plan.
Kelley, N. L. & Shenkar, O. 1993. International Business in China: Understanding the Global Economic Crisis. Routledge.Quartz.