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This has led to increased competition among the domestic cosmetic companies and the international cosmetic companies operating in…
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Download file to see previous pages... Like many other Chinese cosmetics companies, Herborist has also recognized the need to expand their operations in new markets and follow and extensive internationalization process while keeping the business rooted to its own unique cultural factors and a differentiated positioning strategy. Herborist is in the business of herbal cosmetic products and is an established name in the herbal care sector of China. The traditionalism and uniqueness of the herbal factor remains the unique selling proposition for the brand which it must capitalize on while entering a new potential market for its expansion process.
The international expansion process of a company is guided by many factors which are likely to drive the development of the internationalization success for the company. These factors may include the following: the company may seek growth opportunities through market diversification, the company may seek to increase the revenues and profitability of the business, the company may try to gain ideas about new business processes, products and methods for innovation, the company may aim to serve a wider range of potential customers in new regions, the company may also achieve increased benefits from new supply sources and get the advantages of global sourcing and the company may achieve economies of scale through lost cost and high volume production (Bakker, 2008, pp.117-118).
Herborist can focus on entering the market of Russia as a part of their international expansion strategy as this would help the company to achieve all the above mentioned benefits as well as the company will be able to benefit from the interest of the consumers in this country towards herbal skin care products and spa services that Herborist can offer (Deighton, Kornfeld, He and Jiang, 2010, p.10). The Russian cosmetic industry is a developed market in which the customers have much ...Download file to see next pagesRead More
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