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KOSÉ – The New Challenges in China
內容大綱
In May 2023, KOSÉ Corporation (KOSÉ) was facing three ominous factors in the Chinese market: declining sales due to weak consumer spending in China following a surge in the number of COVID-19 cases after Beijing ended its zero-COVID-19 policy, new regulations requiring beauty manufactures after January 2024 to label all ingredients that constituted more than 0.1 per cent of a product in descending order (thereby risking disclosing trade secrets), and Chinese consumers’ preferences shifting to local Chinese beauty manufacturers. About 30 per cent of KOSÉ’s net sales came from the Chinese market, where it focused on its major brands, Sekkisei and Decorté. Yet the market was becoming more saturated with giant European beauty manufactures and local enterprises. Should KOSÉ keep focusing on the Chinese market as its pillar strategy?
學習目標
The case examines issues that any business that has relied on one region or market for a long time could face. Analyzing the case will enable students to achieve the following learning objectives:<ul><li>Understand how to scan changes in the external environment and develop strategies to flexibly adapt to those changes in a timely manner.</li><li>Analyze which core competencies are transferable from a domestic market to a foreign market.</li><li>Understand Segmentation, Targeting, and Positioning marketing to create differentiation in an intensified competitive environment.</li><li>Illustrate the concept of market screening based on a company’s core competencies and identify a market that has similar consumer behaviour and allows a company to maintain its core competencies.</li></ul>