1

Running Head; MARKETTING STRAGY FOR THE BODY SHOP BRAND N CHINA

Marketing Strategy for the Body Brand

Name

Course

Institution

Date
 2
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

Table of Contents
Background information & Introduction.....................................................................................................2
Current Trends and conditions in the Cosmetics industry...........................................................................4
SWOT analysis............................................................................................................................................5
PESTEL analysis.........................................................................................................................................6
Porters’ Five Forces.....................................................................................................................................9
Competitor Analysis..................................................................................................................................10
SMART Marketing Objectives....................................................................................................................11
Marketing plan..........................................................................................................................................12
Positioning.................................................................................................................................................13
Marketing strategy.....................................................................................................................................13
Recommendations.....................................................................................................................................15
References.................................................................................................................................................16
 3
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

Background information & Introduction

The Chinese cosmetics market exhibit very dynamic features for the companies that operate in it.

The industry is driven by the rapidly growing demand for the generation Z that has the largest

population globally. The market development for cosmetics products in china has since

intensified among competitors due to the growth of online and digital marketing. In particular,

the evolving international and foreign brands have increased the competition in the market, with

marketing strategies becoming more integrated for effective marketing and communication.

Considering the target segment for the marketing strategy for Body Shop company, targeting,

packaging, differentiation, promotion, pricing and other marketing mix are a blend of techniques

that make a choice of marketing effective and viable. For international brands like in the case of

this project, the strategy should embrace more advertising approaches, sales strategies,

networking, and other related strategies. The purpose of this paper is to formulate a marketing

strategy in form of recommendations for the Body Shop to implement in the Chinese cosmetics

industry targeting male Generation Z.

The Body Shop

The Body Shop International Limited utilizes “The Body Shop” as its branding name in the

various consumer markets and segments across the globe. The company is a Brazilian subsidiary

of the founding parent company referred to as Natura & Co. obtained by L’Oreal, the French

company by the year 2007. The brand was originally established on 26 th March 1976 by Anita

Roddick. The company is renowned for its care for the environment and products with rich

nutrients like marula oil for the skin such and for other cosmetic purposes. The products

portfolio for the company is wide and comprises of skin care products for the normal skin, the

dry skin, oil skin, and possible combined forms of types of skins. The products are designed to
 4
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

solve cosmetic issues such as black spots, sunlight protection for the male consumers, for

balanced or hydrated skins, and other skin problems.

The Body Shop previously operated in China at duty free before it withdrew from the market in

2014 following the regulation requiring cosmetics products to be subjected to animal testing to

determine the quality band other aspects that may affect the body or the environment ( Taufik et

al., 2021). In the recent years, both the Body shop and the Aesop have begun to avail their

products online in order to make them accessible for the market in china, evading the need to

establish itself under the unfavorable animal testing rules introduces by the government. In a

statement, Marques, one of its corporate managers, reported to the cosmetics industry analysts

that even though predicting the development of the industry in the Chinese market, the company

was committed to enter with a more strategic approach.

Current Trends and conditions in the Cosmetics industry

According to research studies conducted in Chinese cosmetic industry in view of Gen Z in Jan

2021, the male generation is one of the largest consumer segments for beauty and skin care

products. In 2021 the buyers of the cosmetic products in the Chinese markets are mostly the

young generations born after 1996 herein referred to Gen X, consuming over 74% of the

cosmetic products in the country (Kim, McInerney, et al., 2021).

In 2019 according a Euromonitor International report the Gen Z and the millennial in general

accounted for over 40% of the total population of the country, making it an important segment

for the Body Shop to focus in developing its strategy as presented in this report (Euromonitor.,

2021).
 5
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

Over the years, the male generation has started to embrace the use of makeup products, in some

cases even more than the male generations (Davis, 2020). For the male segments in the Chinese

markets, anti-aging, anti-wrinkles, serum products, and even lips products are purchased more by

the male generations compared to other products. This trend is however evidenced form most

countries across the globe, it is not specific to the Chinese cosmetics industry alone (Han, Chong

et al., 2021). The cosmetic industry in the chines market has recently began to grow, and is set to

even grow further considering the diversity of the target segments dominated and driven by

demands and trends of Gen Z . In the industry, quality and brand are some of the most

concerning features that shape and define the demand for products of a company. In 2016-2019

period, according to a report of a study conducted by Euromonitor International (2020), the

sector for instance in the Chinese market increased by 5.8% on average.

SWOT analysis

SWOT analysis is the most ideal tool for analyzing the environment of the company with respect

to the competitors, both internal and external. It is an important tool because it helps identify the

opportunities to pursue, the possible threats, weaknesses, and strengths for the company. Both

strength and weaknesses are factors that are specific to the firm.

Strengths Weaknesses

 Wide range of products portfolio  High costs of prices

 Strong brand image.  Limited presence outside the home

 Large market share in global stage. country.

 High rating of consumer satisfaction.  Poor networking outside china.

 Successful digital strategy

 6
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

Opportunities Threats

 Increasing demand for cosmetics  Increasing competition

among gen z  Uncertainty in technology advancement

 Large population.  Unfavorable government policies and

 Increasing demand of skin care regulations.

products of males.

PESTEL analysis

The PESTEL tool provides an affective technique for evaluating the external environment of an
organization, which for this case, for a cosmetic manufacturing or sales firm in China ( Srivastava., 2021).
The tool evaluates the politics, economy, technology, environment, and legal factors and trends
affecting the operations of a company.

Political  The political environment has passed laws that require all

cosmetic products to be subjected to animal testing

procedures.

 In order to handle the influence of possible effects of the

political aspect, the Body Shop subscribes to the Fair

Trade. However, the trade relations and possible unrests

may be broken by unrests and politics developments.

Economic  The rate of exchange in the cosmetics sector in the Chinese

markets plays a very fundamental role.

 The rates of exchange in the China and its home country UK

 7
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

have faced various economic hurdles especially due to

Covid-19. This impacts the economic and affects the demand

and supply of the cosmetics products.

 In response to potential effects of currency fluctuation the

company accepts the Chinese national currency as the

standard.

 Also the company has invested more on promotion and

marketing communicating discounts and other incentives for

its potential consumers in the market segments.

Sociocultural  Cosmetics companies should consider aging aspects and

other market segments like the male populations that have

been left for long.

 The Chinese population has increasingly become conscious

about the state of their health.

 In order to meet the needs of generation Z the company has

adopted more scientific developments strategies to minimize

 8
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

health effects on their bodies.

Technological  The rapid increase in the penetration and use of technology in

the industry has shaped the marketing and other strategies of

the company.

 This has increased access to information and enhanced

transparency when it comes to cosmetics products.

 The technology in chins is gradually advancing, thus

facilitating communication with the consumers, therefore

helping to market the brand of the company.

 The company has succeeded in using integrated strategies to

promote and market its products to maximize benefits of the

technology in the industry.

Environmental  There is an increasing consciousness towards the

environment in china.

 In the recent years the government banned the use of refilling

bottles for cosmetics products terming it unnecessary.

 Accordingly the company has responded to that by realigning

its products development and packaging with care for the

environment in mind.

Legal  The Chinese cosmetics industry is very hostile, associated with

frequent reviews.
 9
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

 This dynamic is driven by the need to ensure safety of all

cosmetics and other products that may affect human health and

the environment.

 In 2014 the company for instance quitted the Chinese markets

because of the regulations requiring all cosmetics industries to

test their products ion animals before using for human beings

 These dynamic developments affected the operations of the

company which in response has redesigned its policies to

ensure transparency band safety of the products among the

target segments.

Porters’ Five Forces

Based on the analyses on the micro and micro environments affecting the operations of the

company, there are other factors that impact its sales and other competiveness components. The

cosmetics industry in china has many companies operating in the market. Therefore, there is a

wide range of substitute products. Also, the consumers in the Chinese markets, particularly

considering the target segments for this project, have access to information in the internet,

making a range of choices wider. The market is also wide and projected to even increase by over

5.8% in the next three years, making it easy for new entrants.

Competitor Analysis

The Body Shop is a big brand renowned for being the pioneer of eco friendly quality and

fordable cosmetic products, making it attract more attention and create its brand image of a very
 10
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

short period of time, not only in china but other countries as well. The commitment of the

company to the use of digital means and social media channels has made the company more

competitive in the sector. Even though the competition has increasingly become intense since the

establishment of the company in 1976, the company has managed to consistently convince the

consumers that its products are more superior compared to opponents’. By the end of 2007 the

company was the largest cosmetics products retailers across most of its market for natural and

eco-friendly products (Gilitwala & Nag., 2021). The major competitors for the company in the

Chinese market include the Korean Face Shop and Masha, Channel, Dior, and Olay. The Korean

companies are potential largest competitors because they also target the generation Z segments,

the current target segment for The Body Shop. The body Shop however has more advantages in

the sector compared to competitors despite the intense competition in the Chinese markets

because of its pricing, promotion, and marketing strategies.

Competitiveness of the Body Shop

The products of the major competitors of The Body Shop are naturally made using natural

ingredients and pleasant packaging. However, those of The Body Shop are more differentiated.

The company has embraced strategies that make its competitiveness valid into the distant future

in the era of technology. The consumers of the cosmetics products in the market purchase

products for the purpose of improving their looks and caring for the skins, and have high

expectations of the products. For instance, the male generation z is more concerned with

whitening and moistening products, and others as well to reduce aging rates among them. The

company is more competitive from this perspectives considering that it has responded to its

demands.
 11
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

Based on the five level parameters for measuring the products competitiveness in the cosmetics

sector, The Body Shop’s products serve the core benefits. Also, the products meet the basic

expectations of the consumers such as odor, which are limited in other products of other brands.

Also, according to research report of Silos Tips (2021) about cosmetics sector in china, the

highest level of the products of the body shop are not found in other companies, making it more

competitive in the sector compared to The Face Shop and Misha. Additionally he pricing of its

products is high, but gives the consumers the value of the cosmetic products they purchase. The

company also makes its products and supplies them across the markets, enjoying the economy of

scale considering its mas production. The target segment generation z do not mostly care about

prices, and in fact in some situations, there is a perception in the Chinese cosmetics industry that

the higher the prices, the higher the quality and the class.

SMART Marketing Objectives

The recommended SMART objectives for the company in this report include the following;

I. Increase its share of the cosmetics industry in the Chinese markets in the next 2 year

ending 2022 by 40%.

II. Engage the target generation z segments using digital platforms, increasing the

availability of online content about the products of the company based on the user

generated content principles—this is aimed increasing 50% more following on social

media by the end of 2022.

Marketing plan
Segmentation and targeting
 12
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

Morganti et al., (2021) argued in their study that utilizing an appropriate marketing segmentation

strategy enhances the organizational performance of a company, adding that for this technique, it

is important to understand the target segments better. The cosmetics market in china is one of the

fastest growing globally, which according to a report of market in the industry is estimated to hit

over $67 billion UD in a five year period from 2019 in sales (Euromonitor International., 2020).

For this project the recommended target segment is the Generation Z that is known to make up

over 40% of the population of the country. Even though the highest consumption rates of the

cosmetics products is by the female populations, and has been the trend for over the last decade,

the trend is gradually reducing.

Chinese Gen Z in the Chinese markets and other parts of the globe including the UK and the US

are brand savvy consumers that have vast knowledge for technology, thus higher information

access via digital channels and social media platforms. In china, the population of the target

segment for this project was approximated to exceed 260 million, which is equivalent to 17% of

the whole population of the country by the end of 2025. The target segment for this study

occupies the largest share of social media in the Chinese market across the cosmetic and other

sectors as well. Additionally, the population demography report of china showed that a majority

of the population in the urban areas, suggesting that they are even more willing to pay higher

prices for cosmetics pro0ducts and other services, including over 25% higher on cosmetics and

other beauty products for the high end classes of the social classes Amrina, Hidayatno and

Zagloel (2021). The target segment is therefore quite different and unique compared to gen y and

older in the sector.

 13
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

Positioning

The adopted strategy for The Body Shop in this project is the niche marketing, focusing on the

Gen Z born in 1996 to date, mostly in the upper end class residing in urban areas. The Body

Shop should therefore price its products higher, mostly the middle class and above. This will

help the company in positioning, and make it different from other companies in the sector. Also,

the company should embrace more eco-friendly strategies and related strategies in manufacturing

and distribution of its beauty products in the market. Making more green products will help

increase the demand of the products among the target segment populations considering that they

are more aware about the need to conserve the environment. In that respect, the products must be

differentiated in order to meet the demand of the consumers in the target segment of interest for

this project. Products differentiation strategy is a very useful tool for making the products of the

company unique compared to those that are made and distributed by its opponents in the Chinese

market band beyond.

Marketing strategy

Prioritize the use of the Chinese “meng” culture

“Meng” in the context of china is a word that is utilized in place of “cute”. This strategy is

usually personified using cartoon designs in both China and japan. This is aimed at making the

look of the products of the company appealing on the e-commerce channels and other platforms.

In china, this strategy is used by brands targeting the generation z and millennial in generation

for marketing purposes.

 14
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

Catering packaging to the digital world

In the modern world of technology, packaging for cosmetic products should be more

“instagrammable” in order to attract the attention of the target segments of interest in this project.

A majority of the companies that are establishing their operations in the Asian markets in general

have adopted the use of social media, an aspect that makes it necessary for the Body shop in

designing its products through packaging.

Maximize the use WeChat

Brand operating in china and other developed countries have increasingly adopted the use of the

popular social media channels in respective markets. In china, the strategies for the Body shop

should consider the use of WeChat. For the company, it may consider the use of influencers on

these social platforms to attract potential consumers in the target segment, after which it will be

easy to exhibit the available deals. This will increase the viewership and exposure of the products

of the company, and thus meet the objective in the short and long run.

Integrate key opinion leaders with key opinion consumers

The use of key opinion leaders in the cosmetics and other sectors has been regarded as one of the

most effective strategies in developing marketing strategies in the Chinese markets. Even though

this strategy in the context of China is most ideal for local brands, international brands like The

Body Shop should as well utilize this strategy as a way of increasing their range of influence on

social media and other platforms, making them purchase their deals at higher prices. Accordingly

the target key opinion consumers in the cosmetic market in china are the “Skintellectuals,” the
 15
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

niche which is best described as those who mostly purchase products that are rich in ingredients

for caring their skins.

The target segment, generation z in the case of this project, has highest standards for authenticity,

credibility, and value of the information sources for products such as cosmetics. The use of both

key opinion leaders and key consumer opinion strategies combined makes a very efficient tool

for the company to reach its wide target consumers.

Riding on the “Guochao” and related market trends

Guochao in the context of china refers to the term “national wave”, usually used to describe the

fashion trends thriving on the preferences of gen z for cosmetic products. Therefore, in order for

the company to design an effective strategy, it must very well understand the culture and related

trends in the market. The design of its products must be seen to be embracing culture and trends

that are preferred by the target segment. This strategy has been experiment and proofed to be

effective as seen in the case of Li-Ning for positioning itself as a sporting brand, and other other

hand in the case of cosmetics, Florasis to make beauty products based on the traditional Chinese

cultural trends.

Recommendations
In this project the use of social media marketing strategy is recommended for the company. The

company should make use of the opportunities presented by the use of social media;

 Weibo is one of them. The Body Shop should create a Weibo account that is integrated

with attractive advertising. The strategy will be useful for increasing following and offer

platform for brand awareness.

 16
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

 WeChat is another platform that should be used by the company. Most companies in the

cosmetic industry targeting gen z in the Chinese context use WeChat to engage its

potential consumers. The platform also enables ordering and purchasing; this makes the

company in the end maximize use of social media official accounts.

 In the recent years TikTok has become one of the platforms in china and other parts of

the world that have the largest following and users. The Body Shop must therefore utilize

the platform for promoting its products using short videos as the main content about its

products.

 The company should also consider live streaming its products by using an online or web

based channels to promote its products targeting gen z considering that they are the

largest users of internet. Accordingly, sales promotion strategies would be deployed,

showing the extent to which the prices of the products are low based on the high quality

of the products. In the long run, the demand for the products of the company will

increase, increase the market share of the brand, and increase sales because the consumer

purchasing interests will have equally increased.

References
Amrina, U., Hidayatno, A., & Zagloel, T. Y. M. (2021). A Model-Based Strategy for Developing

Sustainable Cosmetics Small and Medium Industries with System Dynamics. Journal of

Open Innovation: Technology, Market, and Complexity, 7(4), 225.

 17
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

Davis, D. (2020). Gen Zers have a spending power of over $140 billion, and it's driving the

frenzy of retailers and brands trying to win their dollars. Business Insider.

Euromonitor (2021).“Beauty and personal care in China,” Euromonitor. [Online]. Available:

https://www.euromonitor.com/beauty-and-personal-care-in-china/report#. [Accessed: 12-

Dec-2021]

GILITWALA, B., & NAG, A. K. (2021). Factors influencing youngsters' consumption behavior

on high-end cosmetics in China. The Journal of Asian Finance, Economics, and

Business, 8(1), 443-450.

Han, B., Chong, J., Sun, Z., Jiang, X., Xiao, Q., Zech, J., ... & Yang, Y. (2021). The rise of the

cosmetic industry in ancient China: Insights from a 2700‐year‐old face

cream. Archaeometry.

Kim, A., McInerney, P., Rüdiger Smith, T., & Yamakawa, N. (2020). What Makes Asia–

Pacific’s Generation Z different.

Morganti, P., Morganti, G., Gagliardini, A., & Lohani, A. (2021). From cosmetics to innovative

cosmeceuticals—non-woven tissues as new biodegradable carriers. Cosmetics, 8(3), 65.

SilosTips (2021).The Body Shop in China: Market Feasibility Research and Strategy Design.

[Online]. Available: https://silo.tips/download/the-body-shop-in-china-market-feasibility-

research-and-strategy-design. [Accessed: 12-Dec-2021]

SRIVASTAVA, T. (2021). AN ANALYSIS ON FACTORS AFFECTING THE

COMPETITIVENESS OF ECONOMIC RETAILERS.

 18
MARKETTING STRAGY FOR THE BODY SHOP BRAND IN CHINA

Taufik, R., Syafei, R. S., Tobing, F. F. L., Aditia, S., Febriansyah, Y. I., Purnomo, A., & Sinaga,

O. (2021). The Effects of Perceived Quality and Brand Trust on Purchase Intention on the

Body Shop Products. Review of International Geographical Education Online, 11(3),

1416-1422.