Analysis of Brand Loyalty in China’s Cosmetic Market

Analysis of Brand Loyalty in Chinas Cosmetic Market 1.0 What is cosmetic market? ‘Cosmetic’ are not strange to everyone, even though some people don’t use them. They definitely hear about them. Cosmetics were invented in thousands years ago. When cosmetics were introduced, they were considered as exclusive things used by female. In those times, only few kinds of cosmetics existed. Some people believe cosmetics are limited by some sorts such as perfume, makeup. Actually, cosmetics come in many forms. Except for perfume and makeup, they comprise of shampoo, soap, lotion and others. Cosmetics are used to care for and clean people’ body, maintain people in a well condition and enhance people’ beauty (Kumar et al., 2006). For instance, the goal of sun protection is to keep out UV and reduce the risk of getting skin cancer. In the past, men used cosmetics to dress up would be treated effeminate. Certainly, people didn’t hear about men’s cosmetic advertising. Nowadays, the reality has graduall y changed. The cosmetics have not been the patent of women. Men and kids join in group of using cosmetics. The number is increasingly growing up. Està ©e Lauder as the first women’s cosmetic companies tried to enter the male cosmetic market in 1964. After 1year trial, it came out with Aramis and an entire line for men’s skin. (Alpern) In cosmetic market, thousands of cosmetics for men and kid are available. In past ten year, cosmetic companies launched some products that were suitable for both men and women. As men customers increase, companies start to launch new product line for men. Exclusive perfume and cleansing foam were designed for men. In order to target these emerging potential customers, many cosmetic companies invest a lot on advertising through TV, beauty magazine and others. The aim of the advertisement is to convey the idea that cosmetics are not girly products. Some big cosmetic companies employ famous actors or sportsmen to promote products through po sitive imagery. It lets men believe that using cosmetics is very normal. (Souiden and Diagne, 2009) The cosmetic industry is one of the most competitive industries all over the world because more than 300 cosmetic brands exist in the market. Most of these companies utilize great number of resource in Research and development to launch new products every year in order to meet ever-changing customers’ need and demand. Innovation is fundamental to survival and success of cosmetic companies. (Kumar et al., 2006) To stay vantage point during fierce competition, cosmetic companies should create value to customers. The World’ top ten cosmetic companies are Maybellline accounting for 7.4% market share, Avon (5.4%), L’Orà ©al Paris (5.3%), Lancà ´me (4%), Clinique ( 3.6%), Revlon (3.3%), Està ©e Lauder (2.9%), Max Factor ( 2.8%), Cover Girl (2.7%) and Shiseido (2.2%) (Ejiofor, 2006). All of them seize about 40% of the market share. 1.1 Overview of cosmetic market in C hina China is the countries with the largest population in the world it makes up one-fifth of the world’s population. The population growth rate of China is 0.629% in 2008 with a current average life expectancy of 73.18. Men possess 51.8% of the total population whereas women possess 48.2%. (Nancy E, 2008) Chinese paying more attention to beauty can date back to ancientry. It has already deeply rooted in Chinese culture. In Chinese poetry and art, beauty has always been extol (Newham, 2006)