A Study On The Chinese Market Strategy Of Korean Cosmetics

Since implementing the reform and opening policy,China’s economy has achieved remarkable development.The increase in purchasing power of 1.4 billion Chinese population has formed the largest domestic market,which has been the main reason for global companies to enter the Chinese market.Above all,the size of the Chinese cosmetics market has increased every year,becoming the world’s second-largest consumer of cosmetics in 2016.In addition,global cosmetics companies such as Loreal and Estee Lauder are fiercely competing in the Chinese market.Global companies are constantly expanding their sizes through the way of brand mergers and acquisitions,and the Winner-take-all effect is getting bigger.And many companies are repeatedly entering and exiting the cosmetic market.Under these circumstances,establishing marketing strategies through sufficient market research and analysis of corporate strengths and weaknesses is an important key point of success.First of all,the paper analyzed the characteristics of the cosmetics industry and the industrial trend of the world cosmetics market,and discussed the present situation and features of the Chinese cosmetics market and the future development direction.The paper also conducted a case analysis on the strategy of Korean cosmetics company Amore Pacific Group to enter the Chinese market.Amore Pacific Group had a low awareness early in its entry into the Chinese market.Therefore,Amore Pacific Group first entered northeast China area where culture is similar with Korea.It has advanced to a joint venture format through its local partners.After a long-term market survey,they implement a strategy to enter the entire Chinese market in earnest,focusing on the Shanghai region.With excellent product R&D capabilities and brand portfolio strategy,Amore Pacific Group has been able to settle in the Chinese market.Based on the success of the Chinese market,they have grown into the world’s sixth-largest global cosmetics company.Based on the theory,this paper discussed the background and development process of AmorePacific Group’s entry into the Chinese market.And through the Stp Strategy of Premium Brand Sulhwasoo of Amore Pacific Group and the 4P’s of marketing of Naturalist Brand Innisfree,paper tries to give an effective marketing strategy in the Chinese market.In addition,The paper diagnosed the internal and external environment of amore Pacific through SWOT analysis.The conclusion section of this paper summarizes the trends in the cosmetics market and the success factors of Amore Pacific Group.On this basis,this paper trying to give suggestion for the future development direction of AmorePacific groups and enterprises seeking entry into the market.