한국 화장품기업의 중국시장 진출 전략

Abstract

From 2000, the GDP of China have increased over 10 percent every year. The standard of living of China become better than past years. Currently, China is changing to 'the World's Market' from 'the World's Factory'. Among its large market, the market of cosmetics is developing rapidly and its size even reached RMB 80 billion yuan in 2010. Korea's records of export in cosmetics to China was 40 million dollar in 2001 and it increased steeply to its 800 percent over past ten years. In 2010, Korea's trade balance in cosmetics recorded 300 million dollar surplus, because the records of import from China was only about 35 million dollar in that year. With rapid growth of China's cosmetics market, the sales through newly developed on-line channels such as internet shopping, home shopping and etc. compared to traditional off-line channels such as department store and outlet are increasing its proportion steadily from year to year. Consumer's major purchasing channels in cosmetics are diversifying. Accordingly, this research investigated how cosmetics are sold through China's many existing distribution channels and examined some plans to revitalize the import in cosmetics from Korea to China. To achieve the goal, this study investigated and analyzed data form domestic and foreign research papers, statistical data, books, newspaper, online web site, and so on, which are related to cosmetics industry. Korean cosmetics companies which entered or planning to enter China's cosmetic market should understand following implications. First, the companies should find some ways to overcome the limits of distribution network. They should concentrate on targeting both a department store which considered as qualified and prestigious market and supermarket or discount store. The strategy should made up by analyzing the consumers of China's distribution channel of cosmetics. It should have more subdivided customer base. The strategy should consider the propensity to consume in each distribution channel and be customized to consumers in each channel. The factors such as diversity, reliability, quality, price of products, service of employees, free gifts provided and possibility of direct experience of products influence consumers on selecting what channels to buy cosmetics. Secondly, They should make thorough preparations for multinational companies which enter China's market. They should investigated enough the trend of rival cosmetics companies, so as to counteract in detail. Thirdly, the company should establish a clear indigenization policy to launch and settle in the local market. With the company's glocalization, they should produce and raise local outstanding individuals in China. The most important factor to Korean company is the glocalization of business strategy. In other worlds, the key factor is having competitive price by using local business resources. The company should adapt its global marketing strategy to the state of China. Research and Development should have its base in China to make products that satisfy consumer's demand rapidly. Human relationship in China is also very important to retain and raise outstanding individuals from China and to make a business with confidence. At last, Korean cosmetics companies should make more efforts to develop products and services which meets local consumer's needs and to adopt Chinese company culture, not of Koreans.