| Summary: | 碩士 === 國立交通大學 === 管理學院科技管理學程 === 101 === The total market value of global cosmetic industry reaches US$400 billion and it’s growing up continuously. The major driver is attributed to emerging markets with over than 30% Y/Y in 2011. The economic environment is changing by a new wave of emerging markets and new life style nowadays. With the unique business model, it’s good timing for direct-selling cosmetic(beauty) companies to develop innovative strategies and the key drivers for business expansion.
This thesis applies document analysis method to explore appropriate Business strategies for Cosmetic (Beauty) industry analysis, to discuss about the history and the characteristics of Cosmetic (Beauty) industry and Direct-Selling models.
The study takes Avon, the benchmark leader of Cosmetic Direct-selling industry as the case study example. To analyze its business model, its business strategies, and the business transformation when entering the new emerging markets.
Avon focuses on its core values – the direct-selling business model, a clear brand image of a company for Women, and the innovative customer-oriented product strategies, bringing her a success in the market. The result of performance evaluation indicators compared between Avon and SHISEIDO, the leader in traditional retail channel, shows that Avon’s business model operation is more efficient than the other one’s in terms of profitability. The case study of Avon in China explores the challenge, potential risk, and the importance of localization conflict when international companies are making market entry strategies.
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