Research On The Distribution Channel Of Chinese Cosmetic Enterprises

The Chinese cosmetic industry has been compared to "the besieged city under the sudden and huge profits" since its beginning. However, with the unceasing development globalization of economy and China's entry into WTO, our cosmetic market displays for the native place market with international competition more and more, the market competition is even more intense, thus resulting in the gradual disappearance of this sudden and huge profits. At present, the upscale market of Chinese cosmetic industry has already been occupied by foreign brands such as L'oreal, Estee Lauder, Shiseido and so on, and nearly all cosmetic enterprises of our country could only compete in the middle-grade and low-grade markets. Such market condition means that the high profit space has become the owner of upscale brands' games, all native brands could only wander in the low-grade market. The low profit space and the worsened market environment of low-grade market would certainly cause our native cosmetic enterprises even more difficult to survive. On the other hand, distribution channel, as one of the marketing 4P mix, was not attached insufficient importance by people compared to product, price and promotion. Many enterprises take distribution channel into consideration only after they have considered product, price, and promotion factor. They take it as "omitted problem". But in the last few years, facing the more and more intense market competition, many enterprises have attached more importance to distribution channel, the status of channel has gradually rises in the entire marketing system. In the future Chinese cosmetic industry, the enterprise that is able to hold the maximum, the most extensive and most powerful distribution channel, would have the most possibility to become the winner. But at present, many of our cosmetic enterprises take the improper action in the channel design and management, thus causing the channel network to be numerous and complicated.Under this background, I conduct this thesis research job. On the basis of the research on our native cosmetic enterprises' distribution channels, I attempt to discover the existing problems and abuse. Then I introduce some new theories about distribution channel and apply them into practice, in the hope of giving our native cosmetic enterprises some improvement and systematic reference about distribution channel. The whole thesis could be divided into four parts. The first part is the first chapter.