Miruna Codeanu

Can’t beat them? Buy them!

In espresso on January 20, 2014 at 10:12 am

L’Oreal is not giving up the Chinese market. L’Oreal may have seemed that they are pulling back from the Chinese market, withdrawing Garnier. However, this move was only apparent. A few days ago L’Oreal got its governmental approval to buy Chinese skincare company: Magic Holdings International.

This was a very interesting morning lecture. Summarizing it, a Chinese flight attendant gives up her job also because flying was causing dry skin. Something is clear: Chinese women do treasure their skin, as a historical trait. Although Garnier was a failure on the Chinese market, L’Oreal is not giving up, as it has one research center and two manufacturing plants and affirmed it plans to develop tailored cosmetics for the Chinese market.

Lesson? Not all markets are created equal. Sometimes you need an insider to teach you how to do it, and even if you are L’Oreal you still have to fail, adapt and learn. Acquiring a Chinese company means not only acquiring a local brand but also the local know how of how to market and sell.


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