The Face Shop Success Factors

Contents 1 Contents 2 Contents 3 Contents 4 Contents 5 Contents 6 Contents 7 Cosmetics Industry Domestic market Success factors Global Strategy Strategic Recommendation .

Distribution channel.High * Low Price : Low Barriers to entry * High Price :compete with global company Low nerally. High & Low High & Low * Low Price: Buyer’s market. Marketing. * High Price: Brand Power Medium *Supply of raw materials is generally available . prefer using cosmetics •Low Price: Outsourcing in manufacturing •High Price: R&D.

EsteeLauder. 아이오페 . O Hui. 스킨푸드 . 후 . 마몽드 . 미샤 . 헤라 . Lancome MAC. Economy Econom y 에뛰드 . 이니스프리 . 라끄베르 . 메이블린 THEBODYSHOP Premiu m Mediu m Medium 수려한 . Kiehl. AP. ISA KNOX. 잇츠스킨 Prestige . THEFACESHOP 뷰티크레딧 . Biotherm Shiseido TSUBAKI 라네즈 .Price Three Strategic Groups in Cosmetic Industry Position Premium Brands 설화수 .

1% * This source from Amore Pacific(2009) 더페이스샵 5.4% . 아모레 퍼시픽 35.1% LG 생활건강 12.8% 로레알 4.* Domestic Cosmetic Market Size: $3. CAGR 5% Size * Market share in domestic.1% 에스티로더 5.5% 기타 37.79Billion.

Source from 하나금융경영연구소 (2008) .2002 April : Open first shop of MISSHA. .• Domestic Brand Shop Market.2003 December : Open first shop of The Face Shop. (Red Ocean Market) economic cosmetic is popular because of economic slowdown. .

: COSMAX(Supply to LOREAL. : 5~6 Steps ⇒ 3 Steps(Factory­ Brand Shop­ Consumer) → Using high quality outsourcing company. Johnson & Johnson etc.→ Simplify the existing distribution structure.) → R&D : Own R&D center Low price with high quality .

→ Naturalism Concept : Naturalism Cosmetic⇒ Luxury Image (hiding the image of cheap product) → Luxury product containers. Luxurious interior shop → Hanryu Star selected a Model of brand for ads : Extending the Asian market Contribution to improve brand power Differentiated marketing .

major supermarkets. . Duty free. Transfer station. Abroad:210 Stores) → Various location types of store : Department.Wide distribution channel → Has more than 800 Stores : Opened more than 800 stores at home and abroad in 2009 (Domestic:650 Stores. Roadside shop.

.Value-based consumption& Well-being Trend (external factors) → Diffusion of value-based consumption : Maximized benefits from low costs. medicinal herbs etc. → Diffusion Well-being Trend : natural plant. : Economic cosmetic gain popularity from good quality. Cosmetics gain popularity from emphasizing natural source.

☞ a specific class of customer (young females in teens and twenties) Weakness Opportunity ☞ Well-being Trend ☞ Value-based consumption ☞ increase cosmetic consumption (male. females in teens and twenties) ☞ Low priced products ☞ Difficult to manage the various distribution channel ☞ Brand shop market is highly competitive.Strength ☞ Moderately priced ☞ Good quality ☞ Good product image ☞ Various distribution channel ☞ a wide selection. ☞ Low barrier to entry ☞ cheap cosmetic are negatively stereotyped ☞ Big brand want to entry market Threat .

a specific class of customers (young females) → Launch the PREMIUM brand & R&D the PREMIUM products : TARGET over the age of thirties. : Independent brand without brand image of The Face Shop. .Lexus/Toyota Strategy : : Need to complement the Weakness Especially Low priced product.

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