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2.6 Researches on cosmetics market in China
Among the ranking of global cosmetics sales in 2006, China has surpassed France and Germany. Currently, it has become the world's third-largest cosmetics market. The latest data released by Kline & Company, a global management consulting and market research firm said that China's cosmetics sales has increased more than 13% in 2006 when compared with 2005. Kline's interactive on-line service-Global Cosmetics & Toiletries 2006 showed that China's market is second only to Japan and the United States, the growth is very significant. Experts pointed out that the consumption habit of China's urban consumer became westernized increasingly; they were now using the same products as consumers used in the United States. Because of the enhancement in the level of China's consumption of cosmetic and the homoplasy of products of cosmetic, the competition in the whole China’s cosmetic market shifts to taking the terminal sales as its core areas, every cosmetic company pays more attention to the management of terminal sales and sales staff, it will ensure the interests of enterprises, timely product reimbursement and strict management, the more important is the timeliness and accuracy of market information collection and feedback (Schwartz, Martin L., 2007: 76-85). China's current marketing of cosmetic products have been out of the planned economy model, flexible means of marketing emerge in department stores, monopolized shop, supermarkets (including hypermarkets), counters, beauty shops, chain stores and networks. Generally speaking, the overall production of China's cosmetics market develops rapidly and its efficiency continues to grow, showing a great potential, but the intense competition is particularly reflected in the fight for customers through terminal sales (Yin Xiaoli, 2007: 121).
Amway and Avon are two major competitors of Mary Kay.
The brand strategy that Amway uses is a multi-brand strategy. It has different brands in different areas. Multi-brand strategy also means that the company need to make more efforts and cost more to carry out management and planning, from a cost point of view, is a big problem. However, relying on the brand –Amway, different sub-brands have gained rapid development. Amway's multi-brand strategy benefit itself in three main areas: first, there is a clear market segments which is easy for product promotion; second, it cannot only reflect Amway’s strength, but also show to a certain extent that Amway is a modern enterprise which attaches importance to scientific research; third, it can carry out adjustment according to different regional markets.
Currently, Avon was the first cosmetics company to be granted a direct selling license in China (?). In 2001, it was appraised as one of ‘the world's 100 most valuable brands’ by the United States Business Week (Yao, Q., 2007: 114) and it is the only cosmetic brand one selected. When it entered into the Chinese market in 1990, Avon has developed in China for 14 years; it has also experienced the ups and downs of China's direct selling market. In 1998, Avon was forced to transform to adopt the business model of a combination of stores and promotion. From Avon’s brand strategy it can be seen that its corporate brand and product brand are the same, this overlap brand strategy is suitable for the market position of focusing on a particular market, like Avon, which has established the concept in the hearts of consumers’ that Avon is equal to cosmetics.


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