A Study On Distribution Channels In Chinese Cosmetics Industry

With the increasing economy globalization and entry into WTO, Chinese cosmetics industry has developed dramatically. At present, domestic market is typically filled with international competition, of which the expensive with high quality products are mainly manufactured by foreign enterprises and joint ventures while the cheap with ordinary quality products are mostly manufactured by a few large-scale enterprises and many small-and-medium enterprises, which are competing heatedly with each other. Most of domestic cosmetics enterprises are small-and-medium enterprises. Regardless of the scale, strength, brands and marketing channels, there are big difference between domestic enterprises and international enterprises. How to survive and stand highlightedly against others is the problem setting domestic enterprises thinking.In recent years, it has become very difficult for cosmetics enterprises to acquire competition advantages through product, price and promotion. Only the channels can bring different competition advantages, the distribution channels has become the most important factor to determine the enterprise's market competition strength.Combining modern marketing theory and supply chain management thought, the first part analyzes the factors and principles to the design of distribution channels through the theory of distribution channels. The second part puts forward the existing problems facing current distribution channels and finds out the reasons and sources resulting in these problems. And points out the trends of the current distribution channels, presents the advise to the design of distribution channels for domestic cosmetics factories. The last part elaborates the selection and inspiriting distributors, the integration and innovation of channels and puts forward references for enterprises to establish, perfect and manage distribution channels during heated competition.