Analysis of Yves Rocher France, International Presented by: Bawani A.

Guruge
Student Number: 18158722
Expansion to China
Home Country Analysis : France
TOWS Matrix Competitor Analysis
Strengths Weaknesses
Market and Customers Analysis Yves Rocher The Body L’Occitane
French Cosmetics Market
Company History Share
• The long period to visualize • All men and women range from 13 years and up. Shop
Internal • Leading R&D products results from products. • Average basket of French cosmetics: 205 € / year per
1959 – The Yves Rocher Brand Concept was born • 100% natural plant-based • Product expires faster person.
in Brittany product compared to other • The world wide cosmetic market is worth 200 Billion
1965- “Green Book of Beauty” Catalogue • Brand Loyalty products. euros. Revenue 2 Billion 1.4 Billion 1.35 Billion
launched External • Product size is small • 700million revenue generated by YR in France Euros Euros Euros Yves Rocher The Body shop
• Moderately high prices
1969- 1st Yves Rocher store was opened in Paris Profit 113 mil 70 million 90 million L'Occitane Others
Opportunities Euros Euros Euros
1970- Yves Rocher ventured into international SO WO
markets • Emerging E- commerce Customers are provided with eco Promote natural advantages Assessment of internal resources
1979- First industrial site for make-up was opened • Eco friendly products friendly natural products which can from the products.
1985 – Creation of anti-ageing cosmetics demand be brought online. Bundling products for Resource / capability V R I O
Loyalty rewards systems discounted prices.
1987- The third distribution channel, Direct sales
introduction Financial Capital Y
were launched. Threats
1989- Yves Rocher became the first European • Direct competition SW WT Quality Service Y
company to stop end products on animals • Multiple patents Rapid introductions of newly Promote seasonal sales for
1991- Creation of Yves Rocher Foundation expiring developed products to market. customers for lower prices. Competitive Price Y
2001- International logistics site was opened in Value Chain Analysis
Brittaney, Skilled Human Capital Y Y
Frim Infrastructure : Botanical Beauty 1700 stores in 90 countries, Botanical garden with 1,100 Climate : France
which distribute yearly 300million products. species of rare plants, 125 acres of organic fields, photography festival, 3 factories in Brittany, a
Customer Relationship Y Y
2008- “Botanical Beauty shop” was opened. green hotel and spa and a nature foundation P E S T E L
2009- Opening of the Eco Hotel Spa Human Resource Management: 18,000 employees are working for Yves Rocher manufacturing Collaborators
• The • Cosmetics • The social •France is • Trend of "Bio" • Beauty Socially Responsible
process from harvesting to selling the end products Y Y Y
government good value for classes have leading in products that products are Brand
Evaluation of the logo Technology Development: Part of revenue is given for research and formulation with advance have money vast gap in technological respect the strictly

MARGIN
technology and also penetrating foreign markets through online marketing. established • Average income. R&D. environment regulated
Strong Research &
Procurement: Established a group purchasing and quality department in 2010. Maintain a stringent basket of • Movement • Projects are •Prioritizes • Anti- Y Y Y
labor French to reduce undertake for Business Ethics monopoly law Development
integrated supply chain management system.
Outbound securities cosmetics: 205 carbon renewable (CSR) and
Inbound Operations: Marketing and Services: • The labor € / year footprint sustainable • Sustainable transparency Strong Brand Value Y Y Y Y
Logistics:
Logistics: Sales: unions in • E-commerce • GDP is energy development between
R&D + Plant for
Yves Rocher Vision: Order France are development increasing generation • Packaging competitors Diversified Product
Best Suppliers Technological Promotions planet concept Y Y Y Y
Make beauty accessible to all women, with high fulfilment very after Euro limitations (LME) Range
Innovations
quality cosmetic products based on plant extracts. Specialized Pricing for Eco friendly powerful crisis
Order handling Global Reach Y Y Y Y
material Manufacturing value addition products
and dispatch

Market Entry Strategy

Host Country Analysis : China Cultural Web and Impact on Strategy Hofstede’s
China
Compared
Yves Rocher strategy to adoption to * Innovation of new Strategic
Drift * Restrictions for testing
dimensions China products 2006-2007 : Indirect Exporting using a local distributer
to France
and labeling
Hofstede Analysis 2007 : Present, Subsidiary
Power Distance Medium Hierarchical organization structure * New range of products Market Analysis and Balance Score Card
Environmental Analysis
* Attract younger generation by development Internal Learning and
One group concept and Beauty for all Financial Customers
Individualism Low expanding product portfolio Process Growth
• High political risk with currency (Renminbi) campaign
Political Risk depreciation due to US Trade War and multiple access
Historical Revenue: Females: 18 years Operation
Low – 86% female brand Cultural
Analysis Yves Rocher RMB 217.6 to 35 years Process: Global
Threat of Expropriation and Masculinity High representatives and encourage Cultural Web Influences
• Risk is low for foreign cosmetics products women to represent their brand Chine million Market share: marketing and Presence
Confiscation
0.4% post sales
Campaigns Against Foreign Uncertainty
Low
New products introduction to the Revenue Females and Innovation
• Certain risks from endemic cosmetic products avoidance community RMB 2.2 males 18 years to Process and Research and
Goods * Emphasis on innovation for One leaf
Long term Catering the pragmatic culture with Managerial serum-based products has helped billion 35 years Operation Development
High
• Complex documentation for retailers/licensors, orientation natural products Implications to mitigate strategic drift. Market share: 1% Process
Labor Laws strict labor laws and termination laws Revenue Females and Innovation
Cultural Web Stories Indulgence Low High – success is celebrated * Loyal customer base creation
RMB 1.3 males 18 years to Process and Research and
• Mid levels of violence; 20% more violence • Innovative Pechoin
Violence billion 35 years Operation Development
compared France webunique
of
Research & Innovation New Enhanced Market share: 2% Process
Rituals culture
natural Symbol Development Strategy Products performance
Civil Wars • No recent civil wars and Routines products • Y and R in a
Cooperate Governance, Ethics and Sustainability
shape of plant
web of web of Development Implementation Corporate Ethics : Comply national laws, prohibits child and forced labor, ensure
Inflation • Varying levels of inflation due to import materials • Plant for the with a leaf Culture health and safety, respect environment
•culture
culture of Strategy Performance
planet Extracting Sustainability:
• Products for
Paradigm Leaping Bunny
• Impact due to reliance on US dollars payments, UN SDG targets - Gender equality, Climate action, Life on land, affordable
Currency Devaluation every women Logo
earnings occur in Renminbi
Values : Act Reduction of power and clean energy.
Improving the Commitment for YR purchasers and suppliers.
differently, Give Power Environmental consumption at stores.
• Cosmetic products taxes are reduce from 30% to Eco friendly environmental Cooperate Governance:
Taxes 15% in 2016 meaning, Create Structure friendly and Recycling plastic
Control Systems approach related footprint Board leadership and effectiveness, Risk management and audits
Emotion natural products bottles and packaging
• Employee • Brand image to values
web of web of to customers Conclusion
Rewards building Yves Rocher is a unique cosmetic brand which prides itself on using biological
culture culture
• Targets and
• Multi channel Organizational ingredients in
pricing Structure attracts younger If unsatisfactory products, manifesting a deep commitment to and appreciation for the natural
• web
Hierarchical
of women REFERENCES
• Kumar, S., 2005. Exploratory analysis of global cosmetic industry: major players,
world. 2018 the revenue of Yves Rocher grew to 2 billion Euros. The company’s
structure Recycling Product Renewable Energy • technology and market trends. Technovation, 25(11), pp.1263-1272. famous ‘Yves Rocher Foundation’ is known throughout France and also
culture packaging • Groupe Rocher web page : https://www.groupe-rocher.com/ worldwide. The general well-being of women is also one of the core values.
• Female brand • Group Rocher CSR web page :https://groupe-rocher-fournisseurs.com/fr
Investing in supply chain • Dromard, T. (2012). Challenges. Le pari international d'Yves Rocher. Retrieved from: More than 15 000 employees worldwide are employed by the group, Yves
representation Opening online stores to
http://www.challenges.fr/entreprise/20121126.CHA3523/le-pari-international-d-yves-rocher.html.
• Grove, Cornelius N. (2005). Global Differences in Business Values. Retrieved from: Rocher is becoming an increasingly internationalized presence. The company
encourage replace physical stores
• http://www.grovewell.com/pub-GLOBE-dimensions.html.
• Mckie, R. (2016) UK scientists to help China stop animal tests on imported goods. Retrieved from: eco friendly approach help the product to go towards customers with a greener
• https://www.theguardian.com/world/2015/nov/07/china-cosmetics-uk-training-stop-animal-testing approach.