pechoin goes global strategy
DESCRIPTION
Chinese skin-care product enters AfricaTRANSCRIPT
Pechoin Enters AfricaPechoin Enters Africa
By Group 4
Jenny Amy Cindy Alicia
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Company ProfileCompany Profile
Legal and Regulatory ForcesLegal and Regulatory Forces
Sociocultural ForcesSociocultural Forces
5 Physical and Environmental ForcesPhysical and Environmental Forces
Economic and Financial ForcesEconomic and Financial Forces
Company OverviewCompany Overview
1.in the 1930s Set up in Shanghai; First generation of skin care goods Popularity both in China and Southeast Asia areasTheme of ‘protection’
2.In the 1980sA period of growth; built a good reputationTheme of ‘Nursing’ and ‘Nutritious’Vaseline cream
3.From 2000 to 2007Further development herbal essence
4.After 2011Moisturizer with herbal essence Skin-care product leader
History and Products
Why Africa? Why Pechion?Why Africa? Why Pechion?
National gift effect
Think skin type not skin color
Darker skin tones also need PechoinHerbal essence; natural; without stimulus; nutritious; balance; latest modern biotechnical achievementsAttractive price
National gift effect
Think skin type not skin color
Darker skin tones also need PechoinHerbal essence; natural; without stimulus; nutritious; balance; latest modern biotechnical achievementsAttractive price
Strategy Selection---Foreign direct investmentStrategy Selection---Foreign direct investment
Foreign Subsidiary
The advantages
Presence abroad
Lesser investment
Decreased costs
Social Cultural Forces
Language:1. English 2. French 3. Arabic 4.Native language
Tips:
1.Different versions of product introduction
2.Don’t use the words “negro” and “black”
Language barriers
Values and attitude
1.They care about their outlook very much. Women like making up.2.They like using lipstick, nail polish and perfume. 3.Color:They like colorful things.
Largepotential market
Tips:
1.R&D:Focus on perfume, skin care series and color make-up series.
2.Package & design
Social Cultural Forces
Personal communication:
1.Greeting2.Strong handshake signify trust and respect3. Low context(direct and explicit)
Tips:
1.Good first impression2.Don’t beat around the bush.3.Consultant
Business negotiation
Social Cultural Forces
Economic and Financial Forces
• 1 Tanzania shilling =0.380 RMB
• Higher price
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Tanzania China
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4270
annual per capital income USD
368.65
233.33
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100
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average GDP of Afican countries Tanzania
GDP100 million USD
Unit price of product: relatively low
Affordable
Purchasing power: weak
Low
Lower the unemployment
rateJobs
Legal and Regulatory Forces
Government corruption
Inconstant policies
More preferencial policies
Physical and Environmental Forces:
• Political environment
• Agricultural
• Industry
• Basic infrastructure system
wars,conflicts,terrorism activities and civil commotions
relatively backward
weak
lag behind
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