Supply Chain Configurations of Foreign Cosmetics Companies Operating in China
As foreign cosmetics companies develop strategies for establishing or expanding their presence in China, they need to configure their supply network, distribution channels, and outbound distribution network so as to improve coordination and maximize efficiency. In this paper, we investigate the current supply chain configurations of various foreign cosmetics companies operating in China. In addition, we highlight new research opportunities for supply chain designs.
Key words: Supply Chain Configurations, Distribution Channels, Outbound Distribution, Market Entry Strategies, Alignment, China.
KeywordsDistribution Channel Cosmetic Product Department Store Multinational Firm Skin Care Product
Unable to display preview. Download preview PDF.
- Arnold, D., Strategies for Entering and Developing International Markets, Prentice Hall, 2003.Google Scholar
- Austin, J. and Aguila, F., “Nike in China,” Harvard Business School Case # 9-386-065, 1985.Google Scholar
- Billington, C., Lee, H., and Tang, C.S., “Product Rollover Strategies: Process, Strategies and Opportunities,” Sloan Management Review, Vol. 39, No. 3, pp. 23-30, 1998.Google Scholar
- Bolton, J. and Wei, Y., “Supply Chain Management in China: Trends, Risks and Recommendation,” ASCET, pp. 66-68, Spring 2005.Google Scholar
- Byrnes, J., “You Only Have One Supply Chain?” Harvard Business School Working Knowledge, Website: http://hbswk.hbs.edu/tools/, August 1, 2005.
- Chandler, C. and Fung, A., “Not Exactly Counterfeit,” Fortune, May 1, pp. 108-116, 2006.Google Scholar
- Coughlan, A., “Mary Kay Inc.: Direct Selling and the Challenge of Online Channels,” Kellogg School of Management Case # KEL 034, Northwestern University, 2004.Google Scholar
- Ellis, M., “GM’s Global Vehicle Sales Rise 4.4%,” Detroit Free Press, April 20, 2006.Google Scholar
- Euromonitor International Database, “Cosmetics and Toiletries in China,” September 2005.Google Scholar
- Fang, C., Gao, X., Liu, C.C., Wang, W.W., and Wu, T., “Analysis of Demand, Production, and Distribution of Cosmetics in Mainland China: Today and Tomorrow,” Unpublished Report, UCLA Anderson School, 2006.Google Scholar
- Forney, M., “How Nike Figured out China?” http://www.time.com, October 17, 2004.
- Gao, X., Liu, C.C., Wang, W.W., Wu, T., and Xia, Y., “Analysis of Cosmetics Direct Sales Outbound Supply Chain: United States and China,” Unpublished Report, UCLA Anderson, 2006.Google Scholar
- Godes, D., “Avon.com (A),” Harvard Business School case # 9-503-016, Harvard Business School, 2004.Google Scholar
- Jones, G., Kanno, A., and Egawa, M., “Making China Beautiful: Shiseido and the China Market,” Harvard Business School case # 9-805-003, Harvard Business School, 2005.Google Scholar
- Jones, G., Kiron, D., Dessain, V., and Sjoman, A., “L’Oreal and the Globalization of American Beauty,” Harvard Business School case # 9-805-086, Harvard Business School, 2006.Google Scholar
- Koehn, N., “Estee Lauder and the Market for Prestige Cosmetics,” Harvard Business School case # 9-801-362, Harvard Business School, 2002.Google Scholar
- Lee, H., “The Triple-A Supply Chain,” Harvard Business Review, pp. 4-14, October 2004.Google Scholar
- Lee, H.L., Padmanabhan, V., and Whang, S., “The Bullwhip Effect in Supply Chains,” Sloan Management Review, Vol. 38, pp. 93-103, 1997.Google Scholar
- Li and Fung Research Report, “The Booming Cosmetic Market in China,” Li and Fung Group, Hong Kong, 2005.Google Scholar
- Pan, Y., “Whirlpool’s Roadmap in China: 2004,” Asia Case Research Center Report # HKU 414, Hong Kong University, 2005.Google Scholar
- Porter, M., Competition in Global Industries, Harvard Business School Press, 1986.Google Scholar
- Tang, C.S., “Robust Strategies for Mitigating Supply Chain Disruptions,” International Journal of Logistics, pp. 33-45, March 2006.Google Scholar
- Tao, Z., “China Cosmetics Industry 2005,” Asia Case Research Center Report # HKU413, Hong Kong University, 2005.Google Scholar