L'Occitane Cafe Essay

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Fabiola-Maria Brovot Yanjun Chen Maria Papadopoulou Sandy Suardi Pan Zhang L’Occitane, a global brand from France, focuses on premium body and skin care products that use naturally-active ingredients. As international expansion plays a key role in the company’s strategy, currently L’Occitane has more than 1,400 stores on 5 continents around the world. Due to saturation in the European market and successful expansions outside of Europe, the company highlights strong performance in the US, Russia and Asia Pacific, which is the largest contributor to its sales (accounting for the company’s one third of global beauty and personal care -BPC- sales in 2012). Most notably, within Asia Pacific, Japan, being the most valuable market, accounted for more than 60% of L’Occitane’s sales in 2012 in the region. (Euromonitor International, 2013b) However, the competition worldwide in the beauty and personal care is fierce. In the concentrated global BPC market, the top 5 companies (P&G, L’Oreal, Unilever, Colgate-Palmolive and Beiersdorf) generated 36% of total sales in 2012. Moreover, very little growth is expected in Western Europe and in North America, with a 2% CAGR expected over the next years (Euromonitor International, 2013). Nevertheless, L’Occitane has a long-term potential. Even though L’Occitane in 2012 accounted for 0.3% of the world BPC value share, it saw a 11% of value growth in the same year. Because of the huge potential in the emerging markets, it is expected that L’Occitane will grow continuously in the following years. While L’Occitane’s customers strongly associate the brand with naturality, healthiness, hedonism, authenticity and simplicity, the brand regularly places new products in its own boutiques to attract new customers and foster repeat purchases. In order to further increase brand awareness and capture the great potential in the emerging markets,

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