China is a growing country that deserves a closer look to help explore all the opportunities it offers. Indeed, trade in China has a huge scope of development due to the decentralization and liberalization of 1978 and especially since its entry into the WTO in 2001. In spite of many inequalities and disparities, (China is in turmoil with manners and habits that are changing) where a middle class is now emerging. The population wants to forget its past. The economy is recovering and the world is gradually noticing this emerging nation. The Chinese are working at a frantic pace and their consumption is increasing.
International companies have understood that it is vital to be present on this market and to have a share in this emerging market. French companies have also identified this opportunity, and Carrefour, Louis Vuitton, L'Oreal,Peugeot, and a host of other companies have settled in China or export there.
Since the Cultural Revolution, women want to catch up to the West, they consume more and one way this trend is noticed is in the cosmetics industry that is increasing at an astounding rate.
Thus, this paper will look to exports of French cosmetics in China. It will show, through various stages, what the best choices are to sell these products to the Chinese.
Cosmetic exports tend to have a position slightly higher than they do in their home country. Best known luxury foreign brands are present in China, but they have a very limited clientele. The cosmetics market in China has very specific characteristics. First, its consumer audience, that is almost exclusively women who are under the age of 35. In addition, Chinese consumption is estimated to be too old for such frivolities. In the luxury sector, France occupies a very privileged position.
In terms of implementation, one must mention the L'Oreal business that is based in Shanghai, which has its main production facilities in Suzhou (60 km from Shanghai). After the 2004 acquisition of two Chinese brands, at both ends of the range of distribution, Mininurse for the mass market and Yuesai, one of China's most prestigious brands, the group L 'OREAL reinforces its development in China and its distribution network by which it already covers over 300 cities and about 150 million middle class Chinese.
Despite the reputation of French products, they have a market share smaller than that of Japanese products in China. Indeed, the Japanese know how to satisfy Chinese consumers, because the skin texture of the Japanese and Chinese are similar and correspond to each other. In the cosmetics segment, it is the lightening effect products and moisturizers that have the most success.
Foreign products largely dominate the market whether locally manufactured or imported. The leading provider of China are the United States, France and Japan. All major brands are present, and those that entered into China since the early 90s, are well established not only in terms of trade in the major cities of the country, but also in terms of industrial production. It is estimated that foreign firms account for about 80% of the market, imports, mixed and those locally produced.
Tags: China; cosmetic market; import of French cosmetics
[...] The usual period of payment is 30 days days or extended up to 180 days. It depends not only on the agreement between the buyer and seller, but the banker as well. The banker has a right to delay a payment if it considers that the documents provided do not allow the release of foreign exchange. Summary table: Means of Payment in At To be Observations : China advisor avoided Check X Sometimes used in domestic transactions Bank draft X No means of payment for imports into China Other SWIFT transfer or X Reserved for trade relations based on absolute trust, and if paid in advance only Bills of exchange X Does not exist (draft) Promissory note X No means of payment for imports Against-refunding X Not applicable to this type of transaction Cashing D / P X Risk of Documents Document non-collection of the Against goods shipped Payment D / A X Risk of Document non-collection of the Against goods shipped Acceptance (milking) Documentary Irrevocable X Formula that offers Credit the most guarantees and most common Irrevocable X - Formula that offers and the most Confirmed guarantees.Confirmati on generally silent Standby Letter of Credit X - Possible, but is subject to an authorization Source: The MOCI No We will now see two main categories in the form of payment. [...]
[...] China enjoyed joining the PECC (Pacific Economic cooperation Council) in 1986 to be at the forefront of current technology, that is to say, the plants can install high-tech in China. All such agreement between China and France for the purchase of EADS Airbus, EADS is that the condition must create a factory and assembling the pieces in Chinese soil. And with the World Trade Organization (WTO) China was a member in 2001 and was able to expand the global economic vision. [...]
[...] There emerges the middle class, people who want to forget their past, now that the economy recovers and as the world turns to them, the Chinese work at a frantic pace. International companies have understood, you must be present in this market if they want their share of the pie. French companies have also identified this opportunity and Carrefour, Louis Vuitton, L'Oreal, Peugeot, and a host of other companies have settled in China or export. Since the Cultural Revolution, women catch up to the West, they have started consuming more cosmetics at an astonishing speed. [...]
[...] There is no centralized database on Chinese domestic companies' trade. However, there are many tools and databases to access different data, but either they are not sufficiently broad coverage (number of companies) or they are not interconnected. Similarly, it is important to invite China to develop a formal database and centralized (for now, companies are accountable to three different administrations). • Agreements China It is just after the death of Mao Zedong (1976) that China began to open doors for trade with the outside and began investing abroad. [...]
[...] For example, the customs clearance for air freight rose from 200 to 250 CNY (23 to 28 €) per return, and 250 to 500 CNY (28 to € 56) per lot cleared for ocean freight. Customs documents Concerning quality controls at the start of the exporting goods, the exporter must obtain competent authorities, either in China or in France, certificates evidencing the origin of the product and its compliance with Chinese regulations into force. Thus, for cosmetics, we must necessarily obtain the health certificate and the certificate of approval of labeling. Tariffs All products imported into China are subject to customs control. [...]
Online readingwith our online reader
Content validatedby our reading committee