In recent years, as the initial surge of new consumer brands has subsided, attention has refocused on established "heritage brands." The real challenge now under study is how a brand can achieve initial success, scale sustainably, and maintain its legacy over time. This case study traces L'Oreal Group's branding strategy evolution since its entry into the Chinese market. Founded in 1909 with a single hair dye product, L'Oreal expanded through strategic acquisitions to become the world's largest cosmetics group. Today, it boasts a portfolio of over 500 brands encompassing hair color, skincare, makeup, and fragrances. Beginning in 1996, L'Oreal introduced diverse brands such as Lancôme and Garnier to China, achieving significant success in the luxury cosmetics segment. However, its penetration into the broader mass skincare market proved challenging. L'Oreal acquired local favorites like Mininurse and Yue-Sai in 2004 to bolster its presence in this arena. Unfortunately, these acquisitions did not meet expectations and gradually faded from prominence. By 2022, L'Oreal had established an investment firm in China, focusing on equity investments to foster deeper collaboration with local brands. L'Oreal's journey in China illustrates a strategic evolution from brand introduction to local acquisitions and subsequent equity partnerships. Each strategic pivot reflects a nuanced understanding of market dynamics, a critical review of past approaches, and an ongoing commitment to innovation in response to evolving challenges.

This case study describes how restaurant operator Wowprime, known for its brand creativity, implemented a diversification strategy in China's mainland. Having been present in the market for 14 years, Wowprime set out plans in August 2016 to expand from 149 restaurants to 1,000 by 2022. In a market where demand for customized offerings is gaining traction, should Wowprime maintain its fixed-menu-based diversification strategy for growth, or should it focus on core brands and priority markets? The case invites class participants to step into the shoes of Wowprime decision-makers and consider strategic options to achieve the 2022 goal while taking into account resource constraints as well as local market trends.