the faceshop
TRANSCRIPT
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The Face Shop Success Factors
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Contents 1 Cosmetics Industry
Contents 2
Contents 3
Contents 4
Contents 5
Contents 6Contents 7
Domestic market
Success factors
Global Strategy
Strategic Recommendation
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Generally, prefer using cosmetics
Low •Low Price:
Outsourcing in manufacturing.•High Price: R&D, Marketing, Distribution channel.
High & Low
* Low Price : Low Barriers to entry* High Price :compete with global company
High
* Low Price: Buyer’s market.* High Price: Brand Power
High & Low
*Supply of raw materials is generally available
Medium
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Price
Three Strategic Groups in Cosmetic Industry
Prestige
Premium
Medium
Economy
Position
Brands
Premium
설화수 , 후 , O Hui, 헤라 , AP, EsteeLauder,
Lancome
MAC, Kiehl, Biotherm
Shiseido TSUBAKI
Medium 수려한 , ISA KNOX,아이오페 ,
라네즈 , 마몽드 , 메이블린THEBODYSHOP
Economy
에뛰드 , 이니스프리 ,
라끄베르 , 미샤,스킨푸드 ,
THEFACESHOPTHEFACESHOP 뷰티크레딧 , 잇츠스킨
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* Domestic Cosmetic Market Size* Domestic Cosmetic Market Size: $3.79Billion, CAGR 5%5%
* Market share in domestic.* Market share in domestic.
기타37.8%
에스티로더5.1%
로레알4.1%
더페이스샵5.1%
LG생활건강
12.4%
아모레퍼시픽35.5%
* This source from Amore Pacific(2009)
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• Domestic Domestic Brand ShopBrand Shop Market. (Red Ocean Market) Market. (Red Ocean Market)
economic cosmetic is popular because of economic economic cosmetic is popular because of economic slowdown.slowdown.
- 2002 April : Open first shop of - 2002 April : Open first shop of MISSHAMISSHA..
- 2003 December : Open first shop of - 2003 December : Open first shop of The Face The Face ShopShop..
Source from 하나금융경영연구소 (2008)
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→ → Simplify the existing distribution structure.Simplify the existing distribution structure.
: 5~6 Steps ⇒ 3 Steps(Factory: 5~6 Steps ⇒ 3 Steps(Factory Brand Shop Brand Shop Consumer)Consumer)
→ → Using high quality outsourcing company.Using high quality outsourcing company.
: COSMAX(Supply to LOREAL, Johnson & Johnson : COSMAX(Supply to LOREAL, Johnson & Johnson etc.)etc.)
→ → R&DR&D
: Own R&D center : Own R&D center
Low price with high Low price with high qualityquality
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Differentiated Differentiated marketingmarketing
→ → Naturalism Concept Naturalism Concept
: Naturalism Cosmetic⇒ Luxury Image: Naturalism Cosmetic⇒ Luxury Image
(hiding the image of cheap product)(hiding the image of cheap product)
→ → Luxury product containers, Luxurious interior Luxury product containers, Luxurious interior shopshop
→ → Hanryu Star selected a Model of brand for adsHanryu Star selected a Model of brand for ads
: Extending the Asian market : Extending the Asian market
Contribution to improve brand powerContribution to improve brand power
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Wide distribution channelWide distribution channel
→ → Has more than 800 StoresHas more than 800 Stores
: Opened more than 800 stores at home and abroad : Opened more than 800 stores at home and abroad in 2009in 2009
(Domestic:650 Stores, Abroad:210 Stores)(Domestic:650 Stores, Abroad:210 Stores)
→ → Various location types of storeVarious location types of store
: Department, Duty free, Roadside shop, major : Department, Duty free, Roadside shop, major supermarkets,supermarkets,
Transfer station.Transfer station.
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Value-based consumption& Well-being Trend Value-based consumption& Well-being Trend (external (external factorsfactors))
→ → Diffusion of value-based consumptionDiffusion of value-based consumption
: Maximized benefits from low costs.: Maximized benefits from low costs.
: Economic cosmetic gain popularity from good : Economic cosmetic gain popularity from good quality.quality.
→ → Diffusion Well-being TrendDiffusion Well-being Trend
: natural plant, medicinal herbs etc.: natural plant, medicinal herbs etc.
Cosmetics gain popularity from emphasizing Cosmetics gain popularity from emphasizing natural source.natural source.
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☞ Brand shop market is highly competitive.☞ Low barrier to entry☞ cheap cosmetic are negatively stereotyped☞ Big brand want to entry market
Threat
☞ Well-being Trend☞ Value-based consumption☞ increase cosmetic consumption (male, females in teens and twenties)
Opportunity
☞ a specific class of customer (young females in teens and twenties)
☞ Low priced products☞ Difficult to manage the various distribution channel
Weakness☞ Moderately priced☞ Good quality☞ Good product image☞ Various distribution channel☞ a wide selection.
Strength
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Lexus/Toyota StrategyLexus/Toyota Strategy
: Need to complement the Weakness: Need to complement the Weakness
: Especially Low priced product, : Especially Low priced product,
a specific class of customers (young females) a specific class of customers (young females)
→ → Launch the Launch the PREMIUM PREMIUM brand & R&D the brand & R&D the PREMIUMPREMIUM productsproducts
: : TARGET over the age of thirties.TARGET over the age of thirties.
: Independent brand without brand image of The : Independent brand without brand image of The Face Shop.Face Shop.
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Thank You!