Advertisement

Supply Chain Configurations of Foreign Cosmetics Companies Operating in China

  • Cindy Fang
  • Frances Gao
  • David Liu
  • Christopher S. Tang
  • Weiwei Wang
  • Tony Wu
Part of the International Series In Operations Research & Mana book series (ISOR, volume 119)

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.

Keywords

Distribution Channel Cosmetic Product Department Store Multinational Firm Skin Care Product 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Arnold, D., Strategies for Entering and Developing International Markets, Prentice Hall, 2003.Google Scholar
  2. Arntzen, B., Brown, G., Harrison, T., and Trafton, L., “Global Supply Chain Management at Digital Equipment Corporation,” Interfaces, Vol. 25, pp. 69-93, 1995.CrossRefGoogle Scholar
  3. Austin, J. and Aguila, F., “Nike in China,” Harvard Business School Case # 9-386-065, 1985.Google Scholar
  4. 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
  5. Bolton, J. and Wei, Y., “Supply Chain Management in China: Trends, Risks and Recommendation,” ASCET, pp. 66-68, Spring 2005.Google Scholar
  6. Byrnes, J., “You Only Have One Supply Chain?” Harvard Business School Working Knowledge, Website: http://hbswk.hbs.edu/tools/, August 1, 2005.
  7. Camm, J., Chorman, T., Dull, F., Evans, J., Sweeney, D., and Wegryn, G., “Blending OR/MS, Judgment, and GIS: Restructuring P&G’s Supply Chain,” Interfaces, Vol. 27, pp. 128-142, 1997.CrossRefGoogle Scholar
  8. Chandler, C. and Fung, A., “Not Exactly Counterfeit,” Fortune, May 1, pp. 108-116, 2006.Google Scholar
  9. 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
  10. Ellis, M., “GM’s Global Vehicle Sales Rise 4.4%,” Detroit Free Press, April 20, 2006.Google Scholar
  11. Euromonitor International Database, “Cosmetics and Toiletries in China,” September 2005.Google Scholar
  12. 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
  13. Forney, M., “How Nike Figured out China?” http://www.time.com, October 17, 2004.
  14. 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
  15. Godes, D., “Avon.com (A),” Harvard Business School case # 9-503-016, Harvard Business School, 2004.Google Scholar
  16. 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
  17. 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
  18. Koehn, N., “Estee Lauder and the Market for Prestige Cosmetics,” Harvard Business School case # 9-801-362, Harvard Business School, 2002.Google Scholar
  19. Lee, H., “The Triple-A Supply Chain,” Harvard Business Review, pp. 4-14, October 2004.Google Scholar
  20. 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
  21. Li and Fung Research Report, “The Booming Cosmetic Market in China,” Li and Fung Group, Hong Kong, 2005.Google Scholar
  22. Lim, W.S. and Tang, C.S., “Optimal Product Rollover Strategies,” European Journal of Operational Research, Vol. 172, No. 3, pp. 956-970, 2006.CrossRefGoogle Scholar
  23. Pan, Y., “Whirlpool’s Roadmap in China: 2004,” Asia Case Research Center Report # HKU 414, Hong Kong University, 2005.Google Scholar
  24. Porter, M., Competition in Global Industries, Harvard Business School Press, 1986.Google Scholar
  25. Tang, C.S., “Robust Strategies for Mitigating Supply Chain Disruptions,” International Journal of Logistics, pp. 33-45, March 2006.Google Scholar
  26. Tao, Z., “China Cosmetics Industry 2005,” Asia Case Research Center Report # HKU413, Hong Kong University, 2005.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  • Cindy Fang
    • 1
  • Frances Gao
    • 1
  • David Liu
    • 1
  • Christopher S. Tang
    • 1
  • Weiwei Wang
    • 1
  • Tony Wu
    • 1
  1. 1.UCLA Anderson SchoolLos AngelesUSA

Personalised recommendations