Made in France

: how French cosmetic brands can sustain success in the Chinese market

Abstract

This paper aims to determine the key implications for a French luxury cosmetic brand to sustain success in the Chinese cosmetic market.As the Chinese cosmetic market is expected to further grow, more and more western cosmetic brands enter and sustain success in the Chinese market. Despite the popularity of Chinese local cosmetic firms, international beauty groups like Estee Lauder, L’Oreal, Procter&Gamble, Shiseido and Unilever account for more than 50% of the cosmetic market in China. Especially French luxury cosmetic brands are favored by the Chinese consumer. They are preferred for their “Made in France”, perceived high quality and expertise.As China’s Economy has evolved a lot in the past years and after becoming a member of the WTO in 2001, China has reduced their administrative barriers to trade. Nevertheless, the government establishes constantly changing regulations regarding cosmetic’s packaging, texture and ingredients and increases subsidies. This thesis analysis, taking the example of Darphin, a French skincare cosmetic brand, founded in 1958 in Paris, how to sustain success as a French luxury cosmetic brand in China. After being acquired by the Estee Lauder Group in 2002, the brand finally entered the Chinese market in 2005 and now successfully achieves over 85% of their sales in China. The major findings emphasize the importance of digital strategies, the degree of localization and adaption as well as brand positioning and storytelling in the Chinese market.

Date of Award	26 Jan 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Laure Leglise (Supervisor)