Other Abstract | The economy has achieved rapid development of worldwide attention since China's reform and opening up for three decades. With the improvement of living standards increasing, household incoming and people’s consumption concept also escalating. It has been changed from material aspect of adequate food and clothing, is gradually in rose to pursue health and beauty, the pursuit of personality shows such as spiritual needs. Known as its beautiful cosmetics market economy, along with the reform and development, after 30 years of rapid development, it has made unprecedented achievements. With China becoming the emerging economies, China has become not only the second largest cosmetics market in Asia, but also the world's eighth-largest cosmetics market. According to the National Bureau of Statistics figures show that China's cosmetics market sales grow at an average annual growth rate of 23.8%, and the highest year of 41%.
In the 1980`s, the early formation of the Chinese cosmetics market, along with the pace of reform , the world famous cosmetics brands have entered into the Chinese market, a beachhead into the Chinese first-tier cities, expand their layout, set up factories, stationed in a large department store channels. Domestic local cosmetics companies in the technology, capital, brand awareness and other aspects far behind the U.S., Europe, Japan and South Korea imported cosmetics companies, the competition has been a disadvantage, the products are mostly flows into the low-end market, brand image is poor, the pace of development is extremely lag. In recent years, some local cosmetics companies in the capital, experience, technology and other aspects to improve, attention to product quality and brand building, local Chinese cosmetic brand is gradually recognized by consumers, local cosmetics companies in the market progressively stronger, and show new vigor. Now, foreign cosmetics companies force evenly matched, local cosmetics companies with years of experience, is gradually out of the most difficult period of development. Local cosmetics brand competition pattern has been formed, foreign cosmetics companies for a certain degree of threat. There are still a lot of domestic cosmetics companies are poorly managed, high investment, low profits, lack of technological innovation, low consumer acceptance. The purpose of this study is
how domestic cosmetics companies are more active in the increasingly fierce market competition, winning market space?
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