l′oreal project iii - final report

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1、ProjectCosmeticsIIFinalReportJuly,2002ChinaMarketResearchTableofContentI:ExecutiveSummaryPage3II:AvonGroupPage7III:DabaoGroupPage48IV:AppendixPage70I.ExecutiveSummaryExecutiveSummaryAvonGroupAvonhastwomainoperationsinChinacurrently–Beautyproductsandotherspecialproducts.Produc

2、tion-AlltheAvonbeautyproductsareproducedbyAvonManufacturing(Guangzhou)Co.,Ltd;-TheotherspecialproductssuchasunderwearandjewelryareOEMproductsfromotherplants;Distributionchannel-AlltheAvonproductsaresoldbyAvonProduct(China)Co.,Ltd;-MostofAvonproductsaresoldthroughits4,800franc

3、hiseshops(in2001)fromsmalltolargecitesinChina;-SomeAvonproductsaresoldthroughthespecialcountersinthedepartmentstoresandsupermarkets;-Therearestillsomedirectsellings,butthischannelwilldisappeargradually;-AlltheUp2Uproductsaresoldthroughthespecialcountersinthedepartmentstoresan

4、dsupermarkets,notbythefranchiseshops;-Ithas79officesin77citiesinChinaandtheofficeswillincreasegraduallyfrom2002;(Tobecontinued)ExecutiveSummaryMainPromotionMethods:-AVONUp2UMembershipSalesSales+GiftBeautyCenterPOPShowSales+GiftDiscount/Coupon;AdvertisementExpenditure-RMB90to1

5、00millionin2001;-Newspapers/Magazines/Outdoors:65%TV/Radio:35%;Operatingrevenue(RMBMillion)Category199920002001-Facialcare244381485-Makeup70121187-Bath&bodycare496498-Fragrance&ladycare475746-Up2U7(Soldforlasttwomonthsin2001andwasincludedinmakeupcategory)-Total414635851Future

6、trends-Avonhasplanstoopen8,000to9,000morefranchiseshopsinthenextonetothreeyears;-OpenmoreflagshipshopsinthemidtolargecitestoimprovetheimageofAvonbrand;ExecutiveSummaryDabaoGroupEstablishedin1985,DabaomainlyfocusesonbeautyproductsinChinamarketatthepresent.Production-Allproduct

7、saresoldthroughBeijingSanluFactory;Distribution-AllproductsaresoldthroughBeijingSanluFactory;-DabaoproductswillbesoldthroughBeijingDabaoCosmeticsCo.,Ltdin2002,acompanyfirstregisteredin2002;-MostDabaoproductsaresoldthroughsupermarketsanddepartmentstoresinnearly80citiesinChina;

8、-Dabaoalsohassetupnearly245specialcountersin30citiesinChina;-Nowitha