Caishi Cosmetics Company Ltd.

The thesis consists of two parts: case description and case analysis. The case description firstly gives a general introduction of Caishi Company and cosmetics industry it belongs to, and then it turns to the background and decision-making of the transition from wholesaling to retailing. After that, seven theories and policies which guide the transition practices are introduced. The transition practices are introduced separately, which include organization design, product planning, sales channel management and promotion. At last, the thesis lists three problems which rise from the transition to close the case description.The case analysis includes five parts. The first part takes an environment analysis, which necessitates the transition, and defines the terms such as wholesaling and retailing. The second part differentiates between applied management and theoretical management. The third part uses the applied management theory to analyze the seven theories and policies of Caishi, revealing the rationality, limitations and management principles they embody. The fourth part analyzes the transition practices one by one. The fifth part gives a strategic recommendation for the three problems listed in the case description. The last part summarizes the case analysis.All the analysis manifests that facing the changing environment, small-to-medium size cosmetics companies must adapt themselves to the environment and switch from extensive operation to intensive operation which emphasizes the retailing management and brand building, so could the sustainable development be secured.