Finance
On average, in 2015, are L’Oréal products too locally adapted or too standardized globally?
2. What advice would you give Jean-Paul Agon on the process to follow regarding requests for local adaptation?
3. How should L’Oréal attempt to make the Yue Sai brand they acquired in China more successful?
ANSWER
L’Oreal Local Adaptation
On average, in 2015, are L’Oréal products too locally adapted or too standardized globally?
On average, by 2015, L’Oreal products have been standardized globally. Standardizing products globally means being able to sell products to an international audience and adopting global standardization through the promotion of products globally. The company has claimed to be the largest cosmetics group globally, with business in more than 130 countries (Pierre and Nathalie, 2016). The company has employed more than 79,000 employees worldwide and has a market capitalization of about €100 billion. The company has standardized its products globally by establishing international and local brands that have been sold in the global markets. The company began selling its products in foreign markets with great international expansion, which has benefited its broad product scope. The foreign markets have accounted for the ever-growing share of the company’s business.
What advice would you give Jean-Paul Agon on the process to follow regarding requests for local adaptation?
The local management has complained about the lack of local specificities of products and the market and promotion techniques (Pierre and Nathalie, 2016). A product modification process would be effective for L’Oreal products to fit in the local market. The brand should focus on having several brands created for a specific market, such as the Chinese market. Product modification will require the brand to understand the local consumers to create a new line of products adapted to the local consumers. This will include examining the biological and cultural specificities to create products that are targeted to the local markets. These approaches will play a great role in meeting the requests for local adaptation.
How should L’Oréal attempt to make the Yue Sai brand they acquired in China more successful?
For Yue Sai to be more successful in China, the brand management should modify the products to build a China-specific brand. This should include building on the concepts of traditional Chinese medicine-inspired cosmetics. Yue Sai brand should focus on the biological and cultural specifies of the Chinese consumers. Therefore, adapting to the local specificities of the Chinese market will improve the success of the Yue Sai brand.
References
Pierre, D. and Nathalie, L. (2016). L’Oréal: Attracting the Next Billion Consumers.
