Product details

France based L'Oreal entered China in 1996 after the government relaxed the norms for foreign investment in the country. It formed a subsidiary named L'Oreal China and began its operations in 1997. The case details how the products of L'Oreal China gained popularity in the country. Encouraged with its early success, the company introduced more international brands in China in order to gain a market share. The case also highlights other strategies adopted by L'Oreal China to increase its market share like investing in research to develop new products that suited the Chinese hair and skin type, recruiting local employees and capturing the mass market segment through acquisition of local brands etc. The case also includes a note on the cosmetics market in China and presents the challenges faced by the company in the country.