When some brands miss the boat for Asia…

Some companies fail to enter the Asian Market while others pull out at the last minute. Apparently, Asian regulations for cosmetics are different from the European market or the US one.

[1]As an example, Urban decay succeeded in entraining the cosmetic markets of Europe, US, and the Middle East. However, when they planned to enter the Chinese cosmetics market, unfortunately they had to pull out at the last minute due to its regulations which are no animal testing. According to cosmetics design Asia website, –An Urban Decay spokesperson said at that time; “While several factors were important in reaching this decision, ultimately we did not feel we could comply with current regulations in China and remain true to our core principles”-.[2] This is to show how one of the popular brands couldn’t match with the regulations of the market. Some brands can adapt to the environment, culture, business and marketing strategies, but regulations would be a BIG NO for them due to the different structure and production process that they will have to use while doing it.

Obsessed-Urban-Decay.jpg

[3]Another interesting brand that entered the Asian market and have been driven into failure for more than $50 million, is Sephora. In January 2002, Sephora pulled out from the Japanese market due to several issues, as it has misunderstood the culture and its business strategy, hasn’t compiled well with the targeted consumer, has under-estimated the competition, and has failed by having not negotiated with suppliers, as well as misinterpreting the economical climate. All of that have lead Sephora to fail in succeeding the Japanese market.

sephora-china.jpg

It is important to understand the market and its regulations, when a brand plans to enter into a new market. So to sum it up and make it easier for you, one of the main successful keys when launching a business in a new market is to think of its environment and culture.

Your devoted makeup mistress, Hebah B.

 

[1] Sephora website. (2016). Le Phénomène Nude. ONLINE. Available at:  http://www.sephora.fr/Urban-Decay/Le-Phenomene-Naked/UNI1487005 Last Accessed 13 Nov’16.

[2] Yeomans, M. (2015). Can cosmetic brands afford to opt out of China over animal testing, Cosmetics Design Asia. ONLINE. Available at: http://www.cosmeticsdesign-asia.com/Regulation-Safety/Can-cosmetic-brands-afford-to-opt-out-of-China-over-animal-testing Last Accessed 13 Nov’16.

[3] Anonymous. (n.d.). Internationalization of Sephora in Japan, Essay UK. ONLINE. Available at: http://www.essay.uk.com/free-essays/business/internationalization-of-sephora-in-japan.php. Last Accessed 13 Nov’16.

Featured image:
WatchCut Video. (2015). 100 years of beauty: Episode 15 China, Youtube. ONLINE. Available at: https://www.youtube.com/watch?v=pTsX05bsKDA Last Accessed 22 Nov’16.

Image 1:

EMILY OROFINO. “14 Signs You’re an Urban Decay Junkie, as Told by GIFs.” POPSUGAR Beauty. September 05, 2016. Accessed November 27, 2016. http://www.popsugar.com/beauty/Obsessed-Urban-Decay-38008423.

Image 2:

Martine Ghnassia and Isabelle Grange. (2014). “Quand La Chine S’éveille à La Qualité”” E-marketing. May 26, 2014. Accessed November 13, 2016. http://www.e-marketing.fr/Thematique/Tendances-1000/Breves/Quand-Chine-eveille-qualite-234468.htm#P7OEZEi4fXrBAPVO.97.

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