Clarin's expansion in India (titre original)
The Clarins Group has been created in 1954 by Jacques Courtins-Clarins. It is a Public Company with a Supervisory Board and a Board of Directors, with a capital stock around 325 millions of euros divided into 40 600 000 shares.
At the beginning, Jacques Courtins opened a first beauty parlour in Paris. He offered there a range of essential oils which seduces its clientele who wanted to use them at home. That is how the Clarins Company born.
The strength of the Group is based on two facts: they are attentive to woman and they are really innovative.
It was, at the roots, specialised in beauty care. Incidentally, Clarins becomes in 1980, number one in the upmarket beauty care products in France and moreover the uncontested European leader since the 1990's. Since then, it has diversified its activity by entering the make up and perfume market in the 1990's.
Nowadays, the company has acquired an international notoriety and has become a leader in many countries as beauty care is concerned. 85% of the sales are made abroad France.
Today, the Group is composed of four famous brands. Clarins Paris is the promoter company which decided, from the nineties, to make strategic alliances to distribute perfume from prestigious brand. It first began with the brand Thierry Mugler, which entered the Group by contracting a partnership with Clarins in 1992. This society was entirely owned by Clarins in 1997. Next Azzaro came in 1995, which became a subsidiary when Clarins acquired its perfumes. And finally Stella Cardente joined it in 2002. The Group signed an agreement with the creative artist of the brand to first create a perfume together. But the property of the brand is shared between two other partners at equal shares.
They regularly launch new perfumes with all the brands since their alliances.
[...] The inflation rate reaches The unemployment rate equals 8%. Socio-cultural They are firmly for the protection of environment, along with the ban of cosmetics industry tests products on animals. The demography: The population is growing, and really young. The main religions are Hinduism and Islam. Technological The R and D capabilities is not a relevant information as everything is settled in France. The country is recognized worldwide as the leader in Information Technologies. The most important competitor in India is the brand Lakmé (recently purchased by Unilever). [...]
[...] A first part will study the position of Clarins within the cosmetics industry, then, a second part will explain why India is the best suited overseas expansion country, and finally, a last part will explain with which foreign market servicing strategy it is best suited. Contents Part Introduction of Clarins 1. Presentation of the Group 2. Clarin's market and the international policy What is their actual way of managing? 4. The SWOT Analysis Part The best suited country to expand 1. Pursue the expansion in Asia 2. Presentation of India and its beauty care market Characteristics, facts The beauty care market in India 3. Difficulties to face Part Which strategy to expand? [...]
[...] The distribution is improving but it is not enough. The social infrastructures in India such as roads, power grid, water, communications infrastructures, housing and education are often below standards, and not catching up with the tune of its economic progress. This is a restraint for the easy freight traffic. These facts are a bridle to the entrance in the country, but they are reducing thanks to several factors such as the high growth economy or the foreign countries which enter India, as well as the government efforts to develop. [...]
[...] The most important characteristic of FDI is that it is undertaken with the intention of exercising control over an enterprise. FDI has the potential to generate employment, raise productivity, transfer skills and technology, enhance exports and contribute to the long-term economic development of the world's developing countries. FDI seeks, either new resources (or cheaper resources), to reach a new market, or to look for more efficiency, eventually all in the same time too. Here, the Group doesn't want to produce abroad or to control another company, they only want to reach new markets, but this is not the best suited method as it is risky and costly to implant outside The best suited strategy: the exportation To conclude, the best suited method seems to be the exportation in India. [...]
[...] It leads to the loss of potential profits as well. These two methods are a good solution when there is an important competition in the foreign market which is not the case for the time being. The final reason is that Clarins firmly wants to be independent and won't accept to its products with other companies. Then, an international joint venture has to be explained. It is a merger between two entities or more, in order to work on a common project. [...]
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