Research on the Importance of Branding Based on The Case Analysis of L'ORÉAL and Yatsen

Abstract

The fierce market competition intensifies the speed of enterprises to find out their unique advantages and development strategies, and branding is a momentous factor in increasing competitiveness, which is influenced by many factors. The purpose of this paper is to study the crucial effects branding can bring on industry sales and revenue. Four branding factors are attained to state the components of branding. A case comparison of L'ORÉAL and Yatsen, and the financial analysis are carried out. The outcome of this study concludes that it is not enough to merely focus on the quality control, effective branding is important to strengthen customer loyalty and employee motivation which would have positive effects on the company. The study suggests that companies should brand according to their company positioning instead of blindly advertising, enter the international market, and expand visibility, to stabilize the development of enterprises in the market, forming a virtuous circle.