International Marketing

Group Assessment
Content

1. Brand – Spa Ceylon

2. Selected Markets Analysis
• China
• France
• UAE Dubai

3. 4Ps of Chinese Market

Spa Ceylon

• Founded in 2009, blends ancient Ayurvedic practices

with modern luxury. They offer natural products and
treatments based on a five-generation family heritage.
Using Sri Lankan ingredients, they create a global spa
experience focused on total wellness for body, mind,
and soul.
Selected Markets Analysis
China Market
Environment PESTEL
Analysis
PESTEL Analysis

Political Economical
• High government • Increasing liberalization
intervention of trade policy
• Evolving regulations • Availability of core
• Nongovernmental infrastructure
organizational • Skill level of workforce
interventions
Social Technological
• High education level of
population
• High population • Advancement in technological
• The lifestyle of the people is innovations
changing and so are their • Latest technology availability
choices and tastes within the country
• Increasing internet usage
• Changing consumer habits
Environmental Legal
• High health and safety norms
• Tight data protection laws
• Restrictions on the investment
• High pollution in environment of foreign companies
• Formulating the laws for the
eCommerce business
Consumer buying behavior/demand/no of
customers
In 2022, the primary purchasers of perfumes in China were young
consumers, particularly those between the ages of 22 and 40. While
women still account for 77.4% of perfume sales, more and more Chinese
men are embracing the use of perfumes.
A survey conducted in May 2023 among 972 consumers revealed that
75.3% of consumers use perfume during casual gatherings or leisure
activities with friends, while 51.4% and 45.3% respectively use perfume in
formal occasions such as school, work or job interviews.
Market size

China has almost 20% of the overall population in the world, yet it only
accounts for 1% of the global perfume and fragrance market. After going
through low growth rates in 2015 and 2016, the perfume and fragrance
market in China started to develop at a rapid rate, reaching 8 billion RMB
(about $1.14 billion) in 2018.
Barriers to enter

The Chinese market is challenging to enter for International brands due

to the price gaps and fake product issues. Presently, Chinese
consumers purchase International fragrances from overseas duty-free
shops.
Competitors

At present, foreign brands predominantly dominate the high-end

perfume segment. In 2020, Chanel ranked first by market share on Tmall,
accounting for 11.3% of sales, followed by Dior (8.6%), Jo Malone (4.4%),
and Yves Saint Laurent (4.2%). Only one local brand, Boitown ( 冰希黎 )
managed to secure a place in the top 10 Tmall perfume sales, which
accounting for 2.8% of the sales.
Why perfumes become popular?

The rise of the middle class

An entry-level luxury product
The salon perfumes
What type of fragrances are preferred by
Chinese customers?

Fruity scent
Floral scents
Woody scents
Fresh scents
Gender-neutral scents
France Market
Environment
PESTEL Analysis
PESTEL Analysis

Political Economical
• Stable political
environment •Strong consumer
•Government regulations purchasing power
on cosmetics and •Economic stability and
fragrances growth
•Tax policies affecting •Exchange rates affecting
import/export of goods import costs
Social:
• High demand for luxury goods
including perfumes
•Changing consumer preferences
and trends
•Growing interest in sustainable
and eco-friendly products
Technological:
•Advancements in fragrance
technology and production
•E-commerce platforms
influencing purchasing behaviors
•Innovation in packaging and
distribution methods
 .
Environmental:
•Increasing focus on eco-friendly and
sustainable products
•Regulations on environmental impact of
manufacturing processes
•Consumer awareness of carbon footprint
and sustainability practices
Legal:
•Compliance with EU regulations on
cosmetics and fragrances
•Intellectual property laws protecting brand
identity and patents
•Employment laws affecting labor practices
and wages
 Cultural:
•Appreciation for artistry and craftsmanship
in perfumery
•Diverse cultural influences shaping
fragrance preferences
•Traditions and rituals related to fragrance
use in French society
Consumer Buying Behavior:

French consumers have a deep appreciation for luxury goods, including

perfumes, often associating them with sophistication and elegance.
There's a strong emphasis on sensory experiences, with consumers
valuing the olfactory aspect of perfumes and their ability to evoke
emotions and memories.
Brand loyalty is significant in the perfume market, with consumers often
favoring established and prestigious perfume houses.
 Demand:
•

The demand for perfumes in France is consistently high, driven by a culture that values personal grooming and presentation.

Perfume is not just seen as a cosmetic product but also as an essential part of one's identity and style.

French consumers frequently purchase perfumes for personal use as well as for gifting purposes, especially during special occasions such as holidays and celebrations.
Number of Customers:

•The French perfume market caters to a diverse range of customers, including

both men and women across different age groups and socioeconomic
backgrounds.
•Tourists visiting France also contribute significantly to the customer base,
seeking out iconic French perfumes as souvenirs or luxury purchases.
•With the rise of online shopping and international distribution channels, the
customer base for French perfumes extends beyond national borders, attracting
consumers from around the world who admire French craftsmanship and heritage
in perfumery.
Market Size:

•The French perfume market is one of the largest and most influential in
the world.
•According to industry reports, the perfume market in France was valued
at approximately €7.8 billion in [latest year data available].
•This market size includes sales from various distribution channels such
as department stores, specialty perfume shops, duty-free shops, and
online retailers.
Market Share:

•French perfume brands dominate a significant portion of the market

share both domestically and internationally.
•Estée Lauder Companies, LVMH Moët Hennessy Louis Vuitton, Chanel,
and L'Oréal are among the leading perfume companies in France,
collectively accounting for a substantial share of the market.
•While French brands hold a prominent position, international brands
also compete in the market, contributing to its overall size and diversity.
Growth Trends:

•The French perfume market has exhibited steady growth over the years,
driven by factors such as innovation in product offerings, expanding
distribution channels, and increasing demand from domestic and
international consumers.
•While exact percentage growth may vary annually, the market typically
experiences moderate growth rates reflective of the stable demand for
perfumes in France.
Consumer Preferences:

•Consumer preferences within the French perfume market vary widely,

encompassing a range of fragrance categories from classic floral and
citrus scents to modern and niche offerings.
•Preferences may also be influenced by seasonal trends, marketing
campaigns, and cultural influences, contributing to the dynamic nature
of the market.
Barriers to Enter the French Market

Barriers to entry into the French perfume market include stringent

regulatory requirements, intense competition from established brands,
high marketing and distribution costs, and the need for strong brand
recognition and differentiation to stand out in a crowded market.
Competitors in the French Market

Key competitors in the French perfume market include Chanel, Dior,

Guerlain, Hermès, and Lancôme.
Reasons for the Popularity of Perfumes in
France

1. Scent and Sensory Appeal

2. Cultural Significance
3. Emotional and Psychological Effects
4. Personal Expression and Identity
5. Social and Ritualistic Practices:
What type of fragrances are preferred by
France customers?

1.Floral
2. Citrus
3. Woody
4. Oriental
5. Fresh/Aquatic
UAE Dubai
Market Environment
PESTEL Analysis
PESTEL Analysis

Political: Economic:
∙ The government is stable and welcomes foreign ∙ People in the UAE have a lot of money to spend.
businesses.
∙ Many tourists visit, and they buy luxury items like
∙ They encourage people to buy luxury things like perfumes.
perfumes.
Social: Technological:
• They use technology a lot, including for
∙ People in the UAE like to use perfumes a lot.
shopping online.
∙ They have different cultures, so they like different
kinds of perfumes.

∙ They have their traditional perfumes too.

Environmental Legal
:∙ It's hot there, so people like to use perfumes to smell
: ∙ There are rules about selling and labeling perfumes.
nice.
∙ Some people look for perfumes that follow religious
∙ They care about eco-friendly products too. rules.
•
Consumer Buying Behavior/Demand/Number of
Customers:
∙ People in the UAE love to use perfumes.
∙ They like to buy expensive perfumes for themselves and as gifts.
∙ Social media influences what they buy.
Market Size:

∙ There aren't as many people in the UAE as in China, but they have a lot of money.
∙ They spend a lot on perfumes, so it's a big market.
Barriers to Enter:

∙ There's a lot of competition from local and international brands.

∙ There are strict rules about selling perfumes.
∙ You need good ways to sell and deliver perfumes.
Competitors:

∙ Many local and international brands sell perfumes there.

∙ Big luxury brands like Chanel and YSL, Dior are popular.
∙ There are also local brands that sell traditional perfumes.
Why Perfumes Are Popular:

∙ Perfumes are considered a luxury item and are often gifted on special occasions.
∙ The multicultural nature of the UAE contributes to a diverse range of preferences,
allowing for a wide variety of fragrance options.
∙ Perfumes serve as a form of self-expression and are an integral part of the
grooming routine for many residents.
Preferred Fragrance Types:

∙ Floral scents
∙ Oud-based fragrances
∙ Citrus and fresh scents
∙ Exotic and spicy notes
∙ Unisex and gender-neutral scents
4Ps Analysis of Chinese Market
• China has overall 20% of the population in the world making it one
Reasons for Selecting of the biggest markets.
Chinese Market Since 2016, China’s fragrance product market has grown rapidly,
reaching approximately 14.1 billion yuan in 2021. The fragrance
market in China has seen significant growth, reaching RMB 16.9
billion in 2022, with forecasts predicting it to rise to RMB 38.7
billion by 2026.
The rise of the middle class is just over 50% in 2018 from 3.1% in
2000. Which indicates that their spending capacity’s development.
Even though the market is big, there is less barriers to enter as it is
not dominated by a brand
Price

1. Position Spa Ceylon perfumes as premium luxury products in China, reflecting high-quality
ingredients and artisanal craftsmanship.
2. Use competitive analysis to set competitive pricing against other luxury brands.
3. Drive sales with limited edition gift sets and exclusive promotions during key shopping
seasons like Chinese New Year and Singles' Day.
4. Implement occasional promotional discounts or bundle offers to stimulate sales and attract
price-sensitive consumers, while maintaining the perceived value of the product.
5. Conduct thorough market research to understand pricing strategies of competitors, adjust
prices accordingly while ensuring Spa Ceylon perfumes maintain perceived value and
profitability.
Place

• Distribution channels for Spa Ceylon perfumes in China include upscale department stores,
luxury boutiques, and high-end beauty retailers located in major cities like Beijing,
Shanghai, and Guangzhou.
• Additionally, leveraging e-commerce platforms such as Tmall and JD.com will provide
access to a broader audience across China.
• Strategic partnerships with local distributors and retailers will help establish a strong
presence in the Chinese market and ensure efficient supply chain management.
•Here the package always follows Sri Lankan identity and China cultural mix methods.
Promotion

•When implementing promotional strategies to the Chinese market, there are three
critical factors to remember:
1. The digital landscape is fragmented
2. China is dominated by mobile
3. Chinese consumers change their preferences quickly
•The key advertising methods that will be used:
1. Social media advertising
2. Search engine advertising
3. Billboards and handbills
1. Social media advertising
According to recent statistical data, over 13% of overall online advertising in China is allocated by brands to
social media marketing campaigns because it has 1.03 billion users.
Key Platforms
•WeChat Ads
❖ This platform has 1.2 billion monthly active users.
❖ Primary social media advertising formats is WeChat Moments Ads
•Little Red Book Ads
❖ Often dubbed the “Chinese Instagram,” Little Red Book (Xiaohongshu) is a lifestyle app mainly dedicated
to social media users interested in beauty and fashion.
•Weibo
❖ Sina Weibo stands as a powerful platform for the Chinese advertising industry due to its extensive user
base and ability to effectively target a brand’s followers and non-followers.
2. Search engine advertising
•Baidu Advertising
❖ This is known as the the king of search in the country. And mostly the focus will be
on Baidu Pay-Per-Click (PPC).
❖ Also in-feed ads and digital banner advertising to short videos and maps are few
other options available.
• WeChat Search
❖ The platform implemented a search function 2017, allowing users to search
WeChat Moments, Mini-Programs, Articles, Stickers, Official Accounts and more.
Which is helpful in advertising.
3. Billboards and handbills

❖ Billboards will be shown outside of shopping malls

Also, offers such as:

1. Seasonal price discounts
2. Product bundling
3. Buy one and get one
Will be used in promotions to capture the market.
 ▪ .

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