Study on the Business Management Models and Marketing Strategies of Major Cosmetic Groups in China: The Case of L’Oréal Group

Abstract

The cosmetics industry is one of the most dynamic and competitive sectors within China's fast-moving consumer goods (FMCG) market. L'Oréal is a market leader in the cosmetics industry, with a diverse product range encompassing skincare, hair care, fragrances and other categories. The company's portfolio includes renowned brands such as Lancôme, L'Oréal PARIS and Maybelline, which are regarded as market leaders within their respective product categories. L’Oréal has been present in China for over two decades, during which time it has enjoyed considerable success in marketing its products. However, the growth of the local cosmetics industry has presented the company with a number of challenges. This paper employs textual analysis to examine L'Oréal's operational and marketing strategies in the Chinese market, as well as the issues and solutions inherent to its existing marketing strategies. Additionally, it delves deeper into the consumer behavior patterns in China that influence L'Oréal's market positioning, and explores how the company leverages digital platforms for targeted campaigns. Furthermore, the study highlights the cultural nuances that L'Oréal must navigate to resonate with its Chinese audience effectively, emphasizing the importance of localization in its marketing mix.