A Lilleborg adventure in China

Abstract

For the past 6 months the authors have in cooperation with Lilleborg AS conducted a comprehensive market research within the middle-high-end Shanghainese Cosmetic and Personal Care market. The aim of this research has been to find characteristics of the Shanghainese Lip Care market and give guidelines on how Lilleborg AS should develop a strategy to accomplish maximum gain if entering the Shanghainese market. The Chinese market is predicted a great future of economic prosperity and wealth, and forecasts estimates that the Chinese consumer market will become one of the largest in the world in the future. The opportunities have not passed unnoticed by, and several of the world’s largest providers of consumer goods are already well established in the Chinese market. Due to heavy competition, limited international experience, limited resources and an internationally unknown brand, it will be difficult for Lilleborg to gain advantages or even enter the Shanghainese market without substantial financial investments. If Lilleborg is to succeed in the Shanghainese Lip Care market, extensive product development is necessary to adapt to the Shanghainese consumer’s preferences. Lilleborg would also have to select the most suitable entrance strategy depending on their goals and recourses and implement a smart, innovative and relatively inexpensive marketing strategy.