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    Why Does L'OREAL Global CEO Directly Intervene In China'S Business?

    2017/5/24 11:38:00 49

    L'OREALMarketBrand

    According to the world clothing shoes and hat net, the global consumer company is expanding its overseas business, and the management system that is progressively progressive and inefficient is always the biggest obstacle to scale growth after the development of regional business.

    So,

    Loreal

    The double-digit growth of sales in the Chinese market for 13 consecutive years is staggering.

    One obvious feature of management in this company is that global executives can directly intervene in business decisions in China.

    This is often ignored by consumers of this company.

    Global CEO's visit to China at a certain frequency is more like a marketing: a consumer company as a gimmick and then go to the market in a big way.

    market

    To convey the importance of global headquarters to the market in this area - the information you can discover from those stereotyped news releases is really nothing more than that, but this is not the whole story.

    Among the top cosmetics companies in the world that I have been in touch with many times, the more common practice is that the head of China can get a decision from headquarters by directly reporting to the head office CEO the status quo of the regional market, and then he will return to China to execute it.

    This process is not too slow, but it is not direct enough.

    In the 20 years of L'OREAL's deep ploughing in China, there are many cases where its global executives are directly involved in regional business. Even when it opened business in the strange Chinese market in 1990, its global executives gathered in China, and taught the new employees who knew nothing about foreign companies and consumer goods.

    The most common common ground among these new employees is probably only French graduation.

    For French company L'OREAL, it is no easy task to find employees who meet the requirements of language proficiency.

    When I was looking for the opinions of analysts from Accenture, ruyd and other consulting companies, they highly appreciated the initiative and direct participation of their global executives in judging L'OREAL's success in China.

    This means that L'OREAL is not a top-down traditional professional manager reporting system, you can measure the matter from a simpler dimension -- doing business well.

    Because even if there are differences between the new market and the new market, the path of business will not be very different: there are many ways of doing business, potential risks and problems, which are often very similar among channel strategies, distribution capabilities, new product positioning, marketing, emerging markets and emerging markets.

    L'OREAL's global CEO has always maintained the frequency of its annual trips to the most important regional markets, and then personally negotiated with local most important distributors, collecting market feedback and consumer information.

    In Asia, South Korea and Japan are also regional markets that they will visit every year.

    In the past two years, the YSL beauty product is also an interesting case. I didn't mention this brand in the cover story.

    Because it comes from decisions at the global level, rather than by Chinese teams.

    In the second half of 2016, the YSL star series lipstick in the circle of friends was propelled by counterfeit Chinese micro merchants.

    New products have not yet been listed on the first fire up.

    At that time, L'OREAL's Chinese team really did not know.

    But this decision is made by the global headquarters to promote the regional market.

    brand

    It was so successful that L'OREAL group made a separate disclosure of YSL's sales performance in the 2016 financial data.

    According to the financial report, YSL's sales exceeded 1 billion euros for the first time.

    Meanwhile, L'OREAL's luxury sector rose by 6% to 7 billion 660 million euros compared to the same period last year, thanks to the boost in YSL cosmetics and perfume sales.

    There are 23 brands in L'OREAL China, and there are too many stories to tell about the operation of the brand.

    To some extent, the decision-making power of the global headquarters is actually one of the key links to support L'OREAL's eventual beauty market.

    Of course, the furniture is decisive and cautious, and the company has made some mistakes. Fortunately, its stress response is very fast, and it can quickly dispel the negative effects.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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