우리나라 화장품기업의 해외진출 전략

Abstract

Abstract

Recently, the global cosmetics industry has continued to grow fast despite the global economic crisis since 2008. Especially Korean cosmetics has gained tremendous popularity in foreign markets due to Korean wave.

In Korea, deepening competition in cosmetics market and various government supports for industry have encouraged Korean cosmetics companies to expand their business to foreign markets.

Under this circumstance, the purpose of this study is to build overseas market expansion strategies of Korean cosmetics companies focused on China market.

In order to achieve the purpose, first, this study analyzed the trends and the current states of the global cosmetics industry. Second, this study carried out the case analysis on the overseas markets entry focused on Amorepacific and LG Household & Healthcare which have represented Korean cosmetics companies. Third, this study used the SWOT analytical method so as to analyze the competitiveness of Korean cosmetics companies in China market. Finally, Based on SWOT analysis, this study established overseas market expansion strategies of Korean cosmetics companies focused on China market.

In summary, the results of SWOT analysis were as follows:

1) Strength : the capabilities of innovative product development, Marketing in connection with Korean wave content, Superior quality compared to the relatively low price competitiveness, excellent telecommunications infrastructure, competitive advantage of basic cosmetics department, holding excellent producing facilities, etc.

2) Weakness : the relative lack of competitiveness in color cosmetics and perfume areas, limit of the growth in domestic market, intensified brand bias of some large corporations, the lack of capital needed for global expansion, etc.

3) Opportunites : growth of China and the Southeast Asian market & expectations of demand in men, middle·old age, baby sector, increased interest on Korean Therapy such as herbal ingredients, enlarge of online and mobile shopping market in China, Japan cosmetics weakness, tariff reduction for cosmetics, etc.

4) Threats : pursuit of Chinese local companies, increased competition due to the entry of global companies in China, uncertainty of Korean wave, competitive price decline due to depreciation of euro and yen currency, the possibility of a government regulations, etc.

Consequently, overseas market expansion strategies of Korean cosmetics companies focused on China market established as follows:

1) SO strategy : market segmentation strategy, product differentiation strategy, Product promotion strategy

2) ST strategy : market diversification strategy, localization Strategy, Advanced product strategy

3) WO strategy : branding strategy, online market expansion strategy, product diversification strategy

4) WT strategy : joint venture with local partner strategy, the advancement of the domestic regulatory framework strategy, competitiveness of quality strategies by R&D support