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3.2

Research

Approach

・・・

“

,

22

3.3

Variables

23

3.4

Data

Collection

25

3.5

Data

Analysis

26

IV

Data

Analysis

&

Results

2・

27

4.1

Research

Question

1

27

4.2

Research

Question

2

28

4.3

Research

Question

3

29

4.4

Research

Question

4

30

V

Conclusion

31

5.1

Objectives

31

5.1.1

Research

Question

1

31

5.1.2

Research

Question

2

32

5.13

Research

Question

3

■»«*«»*»(

33

5.1,4

Research

Question

4

34

5.2

Implication

for

Managerial

35

5.3

Limitation

and

Further

Research

Direction

36

List

of

References

••••••••••••••••••

38

Ap

pendix

Acknowledgement

.•

…

ii

41

45

CHAPTER

I

INTRODUCTION

In

this

chapter

a

general

understanding

of

the

chosen

topic

will

be

provided.

It

will

start

from

0

short

background

of

the

research

area

followed

by

the

problem

discussion,

which

this

study

will

be

based

on.

Finally,

the

purpose

and

the

outline

of

the

study

will

be

presented.

1.1

Background

of

Cosmetic

Industry

in

China

For

few

decades

in

pre-communist

days,

Chinese

women

wear

nothing

more

than

traditional

chi

pao

dresses

up

to

their

thighs

and

p

a

inted

their

lips

lantern

red

onto

their

pale

white

skin.

Then

came

the

communist

period

when

Chinese

women

were

forbidden

to

use

cosmetics

as

the

symbol

of

unacceptable

Western

culture.

When

the

government

released

the

banned

of

lip

stick

and

other

luxury

western's

beauty

p

roduct

in

the

early

1990s,

Chinese

women

were

eager

to

entice

the

exquisiteness

of

the

modern

world.

China

is

now

the

eighth

largest

cosmetic

producer

in

the

world.

Its

cosmetic

market

has

grown

in

tremendously

speed

from

annual

sales

of

RMB200

million

in

1982

to

approximately

RMB45

billion

in

2002.

John

Demsey,

global

brand

president

of

Estee

Lauder,

stated

"China

simply

the

greatest

single

geographical

opportunity

in

the

world

today."

More

than

90%

of

overseas

brand

accounted

in

China

market

with

major

players

from

the

Un

ited

States,

Fean

ce,

Germany,

Jap

an,

and

Korea,

therefore

cosmetics

become

one

of

the

most

foreign-dominated

industries.

These

major

players

such

as

P&G,

Unilever,

Avon,

L'Oreal,

Shiseido,

Revlon,

Johnson

&

Johnson,

Beiersdorf

AG,

Estee

Lauder

are

some

of

the

most

recognized

brands

in

China.

They

literally

changed

China's

face

of

beauty

industry,

altering

everyth!

ng

from

shop

ping

habits,

to

customer

behavior

and

even

the

urban

landscape.

Urban

Chinese

women

were

quick

consume

famous

beauty

product

as

a

form

of

glamorous

life,

which

they

recognize

as

symbols

of

cultural

and

life

reform.

The

success

of

those

cosmetic

brands

will

highly

depend

on

how

they

localize

their

brand

without

lost

their

global

identity;

advertising

and

marketing

strategies,

being

creative

to

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