2.2 Cosmetic retail store

receipttrogleSoftware and s/w Development

Oct 29, 2013 (3 years and 9 months ago)

105 views

1


1. Introduction

1.1 Purpose


The purpose of this report was to analyze the situation that in Coraline
Cosmetic, and find out the problems that most influence the company’s
profit.
After find out the problems, it is also important to make a
conclusion and give recommendation to the company. The purpose was
to help the company overcome the difficulties and carry out a possible
solution which can increase profit and efficiency.

1.2 Sco
pe


This report includes Coraline Cosmetic sales data,
Coraline’s
percentage

of company sales by key sectors, Coraline’s net sales and its
basic information. Also, the report covers the problems that impacts of
the company’s business and solution that hel
p Coraline recover its
market share and profits.

1.3 Background


The Coraline Cosmetics is one of the World’s largest direct sellers. The
main service that they provide is door
-

to
-

door sales. Coraline Cosmetics
mainly provide cosmetics, fragrances and t
oiletries for customers. The
company have already established over 50 years. In mid
-

1980s, Coraline
Cosmetics became one of the leaders in the global cosmetics, and in
1990’s, the company sales in other countries begun to decline. Because
there is less pe
ople buy product sold door
-

to
-

door. So, changes the way
2


that the company sells the products and develops a new product to
attract customers become the most important problems that should be
solved.


2. Discussion

2.1 E
-
commerce business

Coraline Cosmeti
cs is a direct seller company; most of service that
they provide is door
-

to
-

door sales. According to the Coraline’s sales
report, we find out that a direct sale is only occupied 7% of the total
sales in Coraline Cosmetics. So, it is necessary for the com
pany to enter
another market and search for new customers. A possible choice is to
transform into e
-
commerce business. Because in this sector, the market
still have potential customers and have a huge space of development.


In fact, e
-
commerce businesses d
evelop faster and faster. Nowadays,
e
-
commerce businesses make changes in our life and also have affected
every industry and company.
Internet usage continues to double every
100 days.

In 2005, the growth in online transaction nearly reached $6
trillion. (
Mark Haeussler
,


e
-
Commerce Change is in the Air
’, online
) If the
company wants to find a place in such big market, China will be the best
market that suitable for the company develops.
China’s online shopping
market could reach 2 trillion RMB, or $315 bil
lion, by 2015, which would
surpass the United States’, according to research by Boston Consulting
3


Group.

The study found that within 5 years, most of online shopper in
China will spend $940 a year and
twice what they spend today and close
to the average of

$1,000 in the U.S
. It is mean that China is the world’s
largest e
-
commerce market. (‘
China's e
-
commerce market could top
U.S.' by 2015, study finds
’, online, 11.11.2011)


From the data, it is clearly to see that China is a big market, lots of
company are
succeed in doing e
-
business in China. Such as Alibaba,
which is f
ounded in December, 1998, Alibaba.com has grown with
remarkable
speed over the past nine years.
It has long been the
dominant online business
-
to
-
business (B2B) marketplace where small
-

and me
dium
-
sized firms connect with each other. According to domestic
Internet research and consulting company iResearch, Alibaba again held
the largest share of the market in the first quarter of this year in
revenues and registered users, both more than 60 per
cent of the total.

(
DING QINGFEN
, ‘E
-
commerce evolution’, online, 10.10.2007) So, enter
the e
-
business market in China is a suitable choice for Coraline Cosmetic.
Although there are lots of strong competitors, but Coraline has its own
history and also has
its known brand, also the internet become the most
useful tools to find potential customers during these years. All in all,
transform into the e
-

commerce could bring huge profits to the company.



4


2.2 Cosmetic retail store


From the Coraline sales pie c
hart we know that 93% of the sales are
comes from the retail store and other convenient store. In this case, it is
suggested that the company should consider about not just concentrate
on e
-
commerce business but also concentrate on other cosmetic retail
st
ore. Then the company can earn profit both from the internet user and
customer who buy things in retail store. So, the company should
continue to focus on cosmetic retail store. The company should consider
joining some cosmetic store like Sasa and Sephore.


Sasa sells over 600 brands and covering 16,000 skincare, fragrance,
make
-
up,
body care products, health and beauty supplements under
international brands including own
-
brands and exclusive products.

There
are over 200 Sasa multi
-
brand stores in Asia
, and they also provide
e
-
business platform. (‘Sasa homepage’, online) This is an opportunity to
join this kind of cosmetic retail store, and this store also has an
e
-
business for customers.
Sephora is not only the leading chain of
perfume and cosmetics st
ores in France, it's also a powerful beauty
presence in 24 other countries. In the United States and Canada, there
are over 280 Sephora stores.

(‘Sephora homepage’, online) If the
company want to aim at global market, it is also good to consider joining
Se
phora because it is a global retail cosmetic store. This kind of retail
store has lots of advantages. It is convenience, spread wild and the price
5


is suitable for customers. The company can consider that not only do
business online but also join this kind
of cosmetic retail store.

2.3 Develop a new product


If the Coraline Cosmetics change into doing e
-
business and join
cosmetic retail store, the next step is to focus on what is the main
product that they want to sell and who is their target customer. For
m the
pie chart, it is clearly to see that Coraline Cosmetic have no main product
and the company should find who their target customers is.

In the $10.1bn US skin care market, market growth came in at 2
percent in 2010; however key drivers proved to be fa
cial anti
-
aging
products, which grew at 5.3 percent, together with premium facial
anti
-
aging products, which grew at 13.0 percent.

(‘Key cosmetics trends
to fight the economic doldrums’, online, 02.08.2011) From this data, it is
clearly can see that world
cosmetic product trend to develop skincare
product and customers are prefer to this kind of product. It is suggested
that the company should consider develop skincare product as their
main product, and these product can be divided into two main cosmetic
pr
oducts, complexion
-
care product and anti
-
aging products.
According to
the research, the company should more concentrate on complexion
-
care
products and anti
-
ag
ing products.


3. Conclusion

6


The Coraline Cosmetic should not only continue aim at global market,
but also Asian market, especially in China. In order to earn more profit,
the company should try to sell the goods in retail store in China and
around the world, and sell the good through

internet. Coraline could
develop its own main product, such as complexion
-
care product and
anti
-
aging products. Also, Coraline Cosmetic has a long history, its
reputation and brand has already built. So, in this cosmetic market, there
are huge potential c
ustomer sources and market for Coraline Cosmetic.


4. Recommendation and implementation

Coraline Cosmetic has to increase their market share and profits, so
the first step they should change is the way they sell product. On one
hand, door
-
to
-

door sales be
come old fashion and people would not
willing to buy in this way, on the other hand, internet is wild use these
years, which Coraline can use this advantages to increase their sales. Use
e
-
commerce and do business on the internet is a good choice for the
c
ompany and it can not only sell in Asian counties but also can sell all
over the world. It is suggested that the company can concentrate on
Chinese market; they can also focus on global market through the
internet. The next step is to join other cosmetic r
etail store which is
suitable for Coraline, because Coraline has more sales in retail store.

Finally, create or develop a new product to attract customer is also
7


important, according to the cosmetic trends in global market, the best
choice is to develop c
omplexion
-
care product and anti
-
aging products.

5. References

[1]:
Mark Haeussler, ‘e
-
Commerce Change is in the Air’, online

http://www.inboundl ogistics.com/cms/article/e
-
commerce
-
change
-
is
-
in
-
the
-
air


[2]


China's e
-
commerce market could top U.S.' by 201
5, study finds
’, online,
11.11.2011

http://www.topretailing.com/onews
-
108370.html


[3]:
DING QINGFEN
, ‘E
-
commerce evolution’, online, 10.10.2007

http://www.chinadaily.com.cn/bw/2007
-
10/10/content_6155685.htm


[4]: ‘Sasa homepage’, online

http://web1.sasa.c
om/corporate/eng/whoweare/coinfo/retail.jsp


[5]: ‘Sephora homepage’, online

http://www.sephora.com/help/about_sephora.jhtml


[6]: ‘Key cosmetics trends to fight the economic doldrums’, online, 02.08.2011

http://www.cosmeticsdesign.com/Market
-
Trends/Key
-
cosmetic
-
trends
-
to
-
fight
-
the
-
e
conom
ic
-
doldrums?utm_source=copyright&utm_medium=OnSite&utm_campaign=c
opyright



网络电子商业模式容易操作、规划到位、渠道多样化,精准定位,能快速提升知
名度和美誉度。


All around us, e
-
commerce is driving fundamental changes in the
business in every industry. Internet usage continues to double every
100

days.

To the seller, it can reduce transaction costs, the trade
become more smoothly. Moreover, enhancing relationships, and
ultimately building customer loyalty, can significantly strengthen the
company.

http://www.inboundl ogistics.com/cms/article/e
-
commerce
-
change
-
is
-
in
-
the
-
air/

By Mark Haeussler

http://zhidao.baidu.com/question/350899403.html