L’Oréal used many different strategies to expand and enter into China. The text helped us to understand these strategies. In order to have a better understanding of the case, we are going to explain all these strategies. This development will be divided into parts that relate important steps or points of their strategy. First of all the entry strategy in China will be developed and then its expansion strategy (marketing plan, research and development, acquisition of new brands…). L’Oréal had huge challenges by entering into this market. They had to face a high fragmented market with many local competitors. They also needed to access to deep market knowledge and gain a wide distribution network. Product adaptation was another challenge that L’Oréal faced.
To begin, L’Oréal had invested a huge amount of money to enter into China, it was a major change for their brand. They had to face a very different market with customers that have different needs and beauty ideal. L’Oréal had to understand this new culture and adapt their products and marketing plan. Leah Genuario, Ex Editor, beauty editor magazine, said in 2006, “L’Oréal’s current strategy in China reflects their corporate commitment to respecting cultural differences in beauty ideals and using a diversified portfolio to adapt to customers needs”. L’Oréal had to establish a strategy before to enter; this took a long time and many investments. They needed to establish their brands in phases into the Chinese market. They were focused on gaining popularity into this market and brand loyalty. They also wanted to establish a franchise network before a mass expansion.
First, we will analyse the entry into China. At the beginning of all operations, in 1997, L’Oréal decided to introduce only two brands (Maybeline and l’Oréal Paris) and to only launch makeup, skin care, hair colour and to do abstraction of shampoo (launch it later). They wanted