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Alleviate the hardship of the six local cosmetic companies trick
Inability to adapt and localization of foreign policy
Although the ‘WTO’ follow the opening of the market and fair competition rules, but in fact the product access, countries have consciously set up non-trade barriers to protect their own industries. In China, some foreign-funded enterprises in the technical standards for cosmetics, health testing, processing licenses, customs clearance formalities too complicated and cumbersome; In addition, the Eastern and Western political culture, ideological differences and many other factors, resulting in foreign-funded enterprises to enter the domestic market When there is bound to a certain degree of risk-prone ‘acclimatized’ disease.
In order to meet the requirements of the Chinese market, foreign brands usually through localized production, management and sales, adjusting the low-end product line penetration, or with the local maquiladoras marriage or acquire a way to carry out strategic plan in order to improve the consumer market in China pyramid pattern.
For example, the 98-year government ban on a piece of paper makes Amway is almost annihilated. Amway was forced to restructuring operations, set up in China, Amway direct sales stores 100, one stroke to change the centuries, stick to the non-store sales model, to establish a new business model.
In order to obtain more policy advantage and market resources, 80% of the foreign brands have been achieved in China, local production and sales, there will be sights on a number of local brands of domestic joint ventures or mergers and acquisitions, but apart from very few brands With the past popularity and market share still capable of for sale, many more small and medium enterprises have been put down to the edge or directly out of the market.
In addition, more and more foreign brands introduced in the low-end market penetration strategy. For example, the recent launch of Avon
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