Global cosmetics going local Global versus Local 2010

Lisanne Mulder

Supervisor: Drs. A.M van Gool Word count: 8938

How should global cosmetics companies tailor their glocalization strategy to the Chinese and the United States markets for ethnic oriented cosmetics products?

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Preface

Writing this thesis was a whole new adventure for me. Especially coping with the unknown

was a difficult task. I discovered that my dyslexia was more of an influence on my work than

I had hoped and expected it to be, but this did lead me to investigate solutions. Supported by

these solutions I hope to gain tools to cope with the negative influences and develop a manner

to write independently without the influence of dyslexia. Another discovery I made was that I

am on the right track in wanting a traineeship at L‟Oreal, the subject really fascinates me.

In this experience I had a lot of support in checking, and I would like to thank these

people for their support. Of course I would also like to thank my group members and Mrs.

Van Gool for their support, time and effort in helping me develop a better and refreshing

thesis.

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Management Summary

Considering globalization and the fact that not everybody is the same, it is apparent that

global cosmetic companies cannot use one global strategy to fulfill all needs. One possibility

to cope with organizing their global standardized strategy and still have success on local

markets is glocalization. In addition to that, a global cosmetic company needs to know the

differences between ethnic groups to step into the profitable market of ethnic cosmetics and

understand and react to their ethnic history and beauty ideals. This leads to the following

problem statement:

How should global cosmetics companies tailor their glocalization strategy to the Chinese

and the United States markets for ethnic oriented cosmetics products?

A multinational must identify clusters of ethnicities that have similar traits or require similar

products. Multinationals should target these different clusters of ethnicities with differentiated

selling, emphasizing behavioral (culture of origin) aspects and skin traits segmentation factors

(Hassan, Craft, & Kortam, 2003). Glocalization as a corporate strategy has three functional

levels: Innovation, Superficial, and Core Company function. Identifying the correct level is

crucial for implementing and realizing a glocalized strategy.

It is important to understand prospective relationships among the concepts involved in

the consumer‟s reaction, and when we do we can begin to forecast the probable outcomes of

the attempts to target ethnic groups (Holland & Gentry, 1999). When the antecedents are not

taken into consideration the outcome of the marketing attempt will be very uncertain.

Understanding the responses of ethnic consumers will lead to an effective marketing and

glocalization strategy.

More research should be done considering ethnic oriented cosmetics, considering that

knowledge for a marketer concerning the precise aspects of the ethnicity is very important.

Having this knowledge will help to make the right marketing related decisions and provide

the ability to localize a global cosmetic orientated product.

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Contents

Preface .................................................................................................................................................... 2

Management Summary ......................................................................................................................... 3

Contents .................................................................................................................................................. 4

Chapter 1 Introduction ......................................................................................................................... 6

1.1 Background ............................................................................................................................. 6

1.2 Problem statement and research questions .............................................................................. 7

1.3 Academic relevance ................................................................................................................ 8

1.4 Managerial relevance............................................................................................................... 8

1.5 Thesis structure ........................................................................................................................ 9

Chapter 2: What is glocalization and what is a glocalization strategy? ......................................... 10

2.1 History ................................................................................................................................... 10

2.2 Defining Glocalization and Glocalization as a strategy ........................................................ 11

2.3 Glocalization examples ........................................................................................................ 13

2.4 Conclusions ........................................................................................................................... 13

Chapter 3: Why do consumers use cosmetics, and what is the structure of the cosmetics

industry? .............................................................................................................................................. 14

3.1 Why cosmetics? ..................................................................................................................... 14

3.2 The cosmetic industry ........................................................................................................... 15

3.3 Market leaders ....................................................................................................................... 16

3.4 Trends and challenges in the global market .......................................................................... 16

3.5 The cosmetics market in the United States ............................................................................ 16

3.6 The cosmetics market in China ............................................................................................. 17

3.7 Differences between the United States and the Chinese markets .......................................... 17

3.8 Conclusions ........................................................................................................................... 18

Chapter 4: What is ethnicity, and which role does ethnicity have in China and the United States

concerning cosmetics and beauty? ..................................................................................................... 19

4.1 What is ethnicity? .................................................................................................................. 19

4.2 Ethnicity in the USA ............................................................................................................. 20

4.3 Ethnicity in China .................................................................................................................. 22

4.4 Ethnicity and cosmetics ......................................................................................................... 22

4.5 Perception of Beauty in the United States ............................................................................. 24

4.6 Perception of Beauty in China ............................................................................................... 24

4.7 Conclusions ........................................................................................................................... 24

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Chapter 5: How can glocalization as strategy be used in marketing an ethnic oriented cosmetic

product in the Chinese and United States markets, and what are the challenges? ....................... 26

5.1 Marketing ethnicity ............................................................................................................... 26

5.2 Glocalization strategy in ethnic orientated cosmetics markets .............................................. 27

5.3 Challenges accompanying the different markets ................................................................... 28

5.4 Discussion ............................................................................................................................ 29

5.5 Conclusion ............................................................................................................................ 29

Chapter 6: Conclusion and recommendations .................................................................................. 30

6.1 Conclusions ........................................................................................................................... 30

6.2 Recommendations ................................................................................................................. 31

6.3 Limitations............................................................................................................................. 33

Bibliography ........................................................................................................................................ 34

Appendix .............................................................................................................................................. 39

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Chapter 1 Introduction 1.1 Background

Market analyst Mintel (Smithers, 2007) published a study containing the statement that

manufacturing companies are failing to enter a possibly profitable market because they are not

aware of the specific demands of black and Asian consumer of make-up and hair products.

Mintel believes a minor investment could shift the ethnic cosmetics and toiletries market into

one of the cosmetic industry‟s most profitable and promising sectors.

Merely knowing that there is a market for ethnic orientated products is not sufficient. The

most complicated element of the case is that ethnic groups have different properties by nature;

these can limit or enhance a person‟s physical attractiveness (Adams & Read, 1983). These

can also be contradictory to the ideal perspective of beauty that their ethnic group maintains.

For example, “whiteness” or having white skin is considered an important element in

constructing female beauty in the ethnic group of the Han Chinese (Li, Min, Belk, Kimura, &

Bahl, 2007) as from ethnic perspective they do not have a pale skin by nature. However in the

United States, having a sun tanned skin is considered an important element in constructing

female beauty by the Caucasian ethnic group, while this group has a white skin from ethnic

property perspective. The result is that these ethnic groups need cosmetic products to close

this gap. These different perspectives of female beauty can be traced to the behavior of the

ethnic groups; Caucasians use more foundations, while Asians use more sunscreen. When

considering these facts together with growth strategies for increasing profit and market share,

there are ample opportunities. These opportunities and properties of ethnic skin have only

seen limited research, while marketing and tailoring strategies to ethnicity have seen even

less. Multinational cosmetic companies could benefit when implementing these strategies, for

example by achieving an increase in profit (Svensson, 2001) (Samiee & Roth, 1992).

Glocalization is one of these possible strategies. Glocalization refers to implementing a local

component in a global strategy (Giulianotti & Robertson, 2007). Global companies must

discover this possibility. However, this will result into the conclusion that they will have to

adapt their broad global standardized strategy to local needs. A local factor in the

glocalization process is ethnicity. All ethnic groups are accompanied with certain average

traits. Ethnicity is a component of culture, but choosing culture as the main variable raises the

issue that culture can harbor different ethnicity, such as Afro-Americans or Asians in the

United States. This diversity issue makes it difficult to recognize skin traits of a country.

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Separating the ethnicities makes it possible to recognize opportunities in the natural

characteristics of the skin and traits given from ethnic origin.

1.2 Problem statement and research questions

It is clear that global cosmetic companies cannot use one global strategy to fulfill the needs of

all their customers, regardless of their ethnic background. As a result the question arises how

a multinational cosmetic company should cope with organizing their global standardized

strategy and still have success on local markets. Furthermore a global cosmetic company

needs to know the characteristics and ideals of the various ethnic groups in order to step into

the market of ethnic cosmetics and understand and react to their ethnic history and beauty

ideals.

This leads to the following problem statement:

How should global cosmetics companies tailor their glocalization strategy to the Chinese

and the United States markets for ethnic oriented cosmetics products?

To answer the problem statement this thesis contains four research questions;

1) What is glocalization and what is a glocalization strategy?

2) Why do consumers use cosmetics, and how does the cosmetics industry cope with

this?

3) What is ethnicity, and which role does ethnicity have in China and the United

states concerning cosmetics and beauty?

4) How can glocalization as strategy be used in marketing an ethnic oriented

cosmetic product in the Chinese and United States market, and what are the

marketing challenges?

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1.3 Academic relevance

Research has been done about glocalization (Keillor, Hausknecht, & Parker, 2001) and

explanatory analysis has been done about the global cosmetic industry (Sameer, 2005), and

even the role of ethnicity in marketing research has been investigated (Costa & Bamossy,

1995). However, a combination of these subjects has yet to be explored. The cosmetic

industry is a very lucrative, innovative, and fast paced industry where product innovation is

the key to success (Kumar, Massie, & Dumonceaux, 2006). This research may be helpful

finding the product innovation needed. It will also serve as a future reference for researchers

on the subject of ethnic cosmetic products and global companies. This paper extends previous

work on the globalization of marketing activities by advancing the region and ethnicity as an

important unit of analysis. It helps understand implementation of glocalization in a part of the

world that is becoming more important at the economic and political level and providing a

clear theoretical framework for the possible implementation levels and the basis for further

research.

1.4 Managerial relevance

As cited in the background, many of the important issues with which marketeers are

confronted are related to the ways consumers identify themselves (Costa & Bamossy, 1995).

In the cosmetic branch self image and identification are particularly important. The SWOT

analysis in the article (Sameer, 2005) clearly states that a weakness of the worldwide leader in

cosmetics, L‟Oreal, are the challenges in Latin America and Asia. Identification of this

weakness is the first step, coping with the difficulties and defining the strategy is the next

step. Numerous news articles can be found stating “large cosmetic company trying to find its

way on a global market”. Some launches are successful, but there is still much to be learned.

This thesis will give more managerial insight on how to act local as a global company, which

could lead to enhanced profits and market share. By understanding the needs of the consumer

and benefits of glocalization, global cosmetic companies can be assured of a competitive

advantage.

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1.5 Thesis structure

This is a literature based research. In the second chapter the definition of glocalization will be

discussed. Also the origin will be explored. Then an image will be sketched on how

glocalization defines itself in practice. The third chapter will discuss why consumers use

cosmetics. The main characteristics of the industry and the market leaders will also be

defined. The newest trends according to the literature will also be considered. Chapter four

will discuss the definition of ethnicity and it will become clear to which borders ethnicity

belongs, zooming in on the definition of ethnicity in China and the United states. In addition,

the role of ethnicity in cosmetics and its relationship with the definition of beauty will be

explored. In China cosmetics will be applied with different purposes compared to the United

States considering the fact that beauty is different and thus for example what to camouflage or

to accentuate. In chapter five glocalization and ethnicity will be combined and compared with

each other. This chapter will look at the requirements, the benefits and the possibilities. In the

last chapter a more in depth view of the Asian and European market, the cosmetic industry

and glocalization is made. Examples of glocalization in the cosmetic industry will be

reviewed and the requirements strategies need to fulfill in theory to be successful will be

discussed. At the end, conclusions regarding the problem statement will be drawn and

recommendations will be given.

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Chapter 2: What is glocalization and what is a glocalization strategy? “In the future, there will be two kinds of corporations. Those that go global and those that go

bankrupt”

C. Michael Armstrong CEO, AT&T

The strategy or term glocalization has found its way into research and literature, although

there are still many unresearched issues and opportunities. The development of glocalization

finds its history in the globalization process. The globalization process is the growing

interdependence of nations economies and the decrease of relevance of economic boundaries

(Knight, 2000). Globalization comes with the distinct advantage that it is cost and time

efficient (Simon-Miller, 1986). Globalization at the same time generates some degree of

cultural unity while it also stimulates people to increasingly identify themselves with their

ethnic grouping (Maynard & Tian, 2004). Furthermore globalization should entail more than

just being present in a couple of countries, it should entail adjusting the messages sent to a

customer (Cooney-Curran, 2000). Many issues arise because not everything can be

standardized; glocalization is a theory that provides the ablitiy to manage these challeges.

2.1 History

The term „Glocalization‟ has developed into a well-known and important keyword in

explaining certain social scientific issues of globalization (Giulianotti & Robertson, 2007).

Glocalization as a term first ascended in the social theory, the first English interaction with

the term was via a British sociologist Roland Robertson in the 1990‟s . In the course of the

years many researchers used the theory to explain diverse social phenomena such as

Argentinian riots, Asian beauty pagents or Japanese Film. (Auyero, 2001;Yomota, 1999).

The term glocalization is obtained from the Japanese term dochakuka, which when

translated means „global localization‟. Originally glocalization refers to a way of using and

adjusting farming or agricultural techniques to local circumstances. Dochakuka developed

into a business strategy when the Japanese business circle adopted it in the 1980‟s (Svensson,

2001).

Followers of the glocalization theory commonly resist the notion that globalization processes

always jeopardize the local component (Giulianotti & Robertson, 2007). When glocalization

is taken seriously, globalization in combination with localization can be developed, in doing

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so not jeopardizing the local component. Another difficult issue is that local elements adapt

and change throughout history and the development in culture. Because it is ever changing

and will need alterations over time, local elements are not a binary or static fact companies or

organizations can deal with. A local component is not necessarily a culture; it is not a

geographically fixed unit. It can vary with race, ethnicity and even supporters from a football

club.

2.2 Defining Glocalization and Glocalization as a strategy

There are many definitions of glocalization in the literature. Roman wrote in his paper for the

78th conference of the Canadian political science association that there are three specific uses

for glocalization (Roman, 2006). He states that sociological ideas of glocalization focus on

how local cultures are customized along global lines and specify the need to take more

seriously how consumers redefine themselves. He also researches the glocalization of scale,

and Neo-liberal glocalization. However, these functions are not applicable in a business sense.

According to Svensson the definition of glocalization considers the ambition of a

global strategy approach while at the same time acknowledging and the need for the local

alteration and adapting of business activities are recognized (Svensson, 2001). In the example

of a global cosmetic company this would mean that the multinational has its standardized

marketing strategy to concentrate on opportunities. Simultaneously, to be successful locally

they will have to act locally, meaning they will adapt their strategy to fit the needs of the local

targeted market to seize opportunities and thus sell more and increase market share.

In the social perspective of the glocalization theory thorough research is already

obtainable. For instance, Guilianotti and Robertson have identified four categories of

glocalization in their article (Giulianotti & Robertson, 2007).

1) Relativization: The local entity seeks to preserve their prior environment. (preserve

black skin)

2) Accommodation: Absorb the new practices but maintain key element of the prior

environment

3) Hybridization: The local entity synthesizes with the host, making an blend

4) Transformation: The local entity favors the hosts‟ and abandons the local one.

The issue with this glocalization theory is that it has a social background and it has not been

translated as a business theory that often. The uses for glocalization in a business setting have

not been modeled in a theoretical framework. Combining multiple research studies the

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following framework is constructed for implementing glocalization on different levels in a

business setting:

Figure 1:Framework glocalization: Constructed in 2010 by L.E. Mulder using the sources: (Suigiura, 1990)

(Keillor, Hausknecht, & Parker, 2001) (Gould & Grein, 2005) (Giulianotti & Robertson, 2007) (Svensson, 2001)

(Jessop, 2000) (Okazaki, Taylor, & Zou, 2006) (Szymanski, Bharadwaj, & Varadarajan, 1993) (Jain, 1989).

The overall management of the multinational has global ambitions and a standardized global

strategy. Such a company can glocalize their product on three different levels; Innovation,

Superficial and Core Company function. Examples of these levels are shown in the third row.

After recognizing on what levels one can implement glocalization, a glocalization

strategy can be constructed. A glocalization approach in contradiction to a global strategy

approach has the ambition of a global strategy attitude, while the requirement for local

alterations and adapting of business activities are considered at the same time (Svensson,

2001). The glocalization approach recognizes there should be synchronization between

standardization and localization.

A glocalization strategy method in business is combining different stages of strategy

approaches ranging from local to global. Global orientated companies use glocalization as a

strategy to improve their global performance based on local variances. Being aware of the

impact of alteration to local markets is important. Besides also trying to uphold a suitable

equilibrium between global standardization and local customization (Svensson, 2001)

Example

Local level

GlobalGlobalized

management strategy of the Multinational

Innovation level

A whitening product for Asians or Nokia

making a Sand resistent cover

Superficial

Only changing packaging or advertising

Core company function

Technology or service

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2.3 Glocalization examples

A couple of glocalization examples from multinationals implementing their glocalization

strategy on different levels are listed in the appendix.

2.4 Conclusions

Glocalization has its roots in the social theory (Giulianotti & Robertson, 2007), but translation

into implementation in the business perspective is still not researched thoroughly. By

comparing different models it has been possible to identify three levels of possible

implementation; innovation, superficial and core business function. Further elaboration on

implementing glocalization in the cosmetic industry will be presented in the next chapter.

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Chapter 3: Why do consumers use cosmetics, and what is the structure of the cosmetics industry?

"A woman without paint is like food without salt."

- Roman philosopher, Plautus

The cosmetic industry is sizeable and constantly changing and adapting, with a rich history

going back many years. But why do consumers use cosmetics? And how does the industry

adapt to changes?

3.1 Why cosmetics?

Physical appeal is a characteristic that has a deep routed history and value to mankind. Eras of

research have confirmed that physical attractiveness is positively related to social power, self-

esteem, and the receipt of positive responses from others (Adams, 1977) (Adams & Read,

1983) (Berscheid & Walster, 1974). Adornments such as cosmetics are used to increase

attractiveness and to obtain accompanying social benefits. Empirical tests have demonstrated

that they are effective for these purposes. Several studies have shown that makeup used by

women is associated with stronger attribution of attractiveness and femininity. (Cash, 1988)

(Cash & Cash, 1982) (Cash, Rissi, & Chapman, 1985) (Cox & Glick, 1986) (Graham &

Jouhar, 1981)

Holman has described several functions of adornments (Holman, 1981). One of these

functions is defined as the „aesthetic function‟. Within this aesthetic function more categories

can be made; firstly, there are products that only have significance primarily when they are

applied to the consumer, such as remedies and camouflages. Secondly, there are decorative

adornments; these influence physical attractiveness via the aesthetics of the product

themselves. For example, jewelry, sweater or a perfume may positively affect the senses of

both observer and the user, and thereby enhance a person physical attractiveness. Thirdly,

aesthetics can also be used to camouflage (to hide specific features). Although there is no

consensus among researches as to which characteristics are most important in attractiveness

evaluation, face and body weight are the two characteristics most often studied. (Franzoi &

Herzog, 1987).

In a recent study (Nash, Fieldman, Hussey, Leveque, & Pineau, 2006) four women‟s facial

photographs were presented either with or without cosmetics. It was found that women with

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cosmetics were perceived as healthier and more confident that when presented without

cosmetics.

It can be concluded that when using cosmetics a person may feel more attractive and

thus experience greater self-esteem or a more positive mood (Miller & Cox, 1982). Also

women are perceived to be more successful and attractive (Nash, Fieldman, Hussey, Leveque,

& Pineau, 2006).

3.2 The cosmetic industry

Cosmetics are mixtures of surfactants, oils and other components. They are obligatory to be

effective, long-lasting, stable and safe for human use.

When mankind mentions the cosmetic industry they mostly refer or think only about

color cosmetics or the makeup segment. However, the value of this segment is only just

slightly over 18% of the whole market of the personal care industry (Kumar, 2005). Figure

one illustrates the structure of the industry in terms of product classification. The biggest

market for cosmetics globally is the USA, while the biggest global exporter of cosmetic

products is France. The growth of the market has shifted from the western hemisphere to

developing regions in South America, Eastern Europe and Asia, and especially China: having

a consumption of more than 10.4% CAGR (Compound Annual Growth Rate) per year during

the past 5 years (Kumar, 2005).

Figure 2: Classification of industry products and global market size (total and by products) in 2001 (Kumar,

2005)

In general, cosmetic companies have targeted the female audience based on the product itself.

Prior to the 1990s many people thought that cosmetic products were only for adult women:

the reality of today is slightly different. New markets are discovered by cosmetic companies

and they are targeting females as well as men (Kumar, Massie, & Dumonceaux, 2006).

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3.3 Market leaders

There are a couple of major cosmetic companies around the world that are competing against

each other to capture a share of the multi-billion dollar cosmetic market (Kumar, Massie, &

Dumonceaux, 2006). L‟Oreal SA is the global leader in cosmetics with a 16.8% market share

and gross sales of roughly $5 billion according to Euro Monitor International (Kumar, 2005).

Estee Lauder Company is ranked second with 10.9 %, Procter and Gamble Company third

with 9.3%, fourth is Revlon Inc. with 7.1 %, and Avon products with 4.7% rounds up the top

five. Overall, the top twenty cosmetics producers accounted for roughly 73% of the global

marketplace (Kumar, 2005). With the exception of Procter and Gamble, the leading producers

are solely cosmetics producers or cosmetics and fragrances producers. Overall, color

cosmetics (face, lip, eye and nail) account for 14% of the $175 billion global cosmetics and

toiletries market, and is the fastest growing sub-segment of the sector. Lipstick has been the

best performer in 2002 with a growth of 10.6% based on the previous year, facial makeup

declined with 0.3% and eye makeup grew only 2,5% (Kumar, 2005).

3.4 Trends and challenges in the global market

Current trends in the cosmetics industry are the increased trend towards natural ingredients,

information systems, cosmeceuticals, anti-aging and customized cosmetics. The main reason

for these trends is the increasing demand from the baby boom generation, many of whom are

now reaching their sixties. In addition there is an increasing pressure in modern day society

for this generation to hold on to their youthful looks. This has led to a big gush of increasing

sales of anti-aging products (Pitman, 2006).

Challenges in the cosmetic industry are regulatory changes, product safety concerns,

calls for scientific data to document product claims, increasing environmentalism, natural

ingredients, pressure from the growing animal right movement, and economy and market

channels for distribution.

Another strategy that all the major cosmetics companies have employed during the

tougher times the industry has experienced in recent years is the focus on mega brands. All

the big global players have chosen to pursue this path, which has proved extremely successful

(Pitman, 2006).

3.5 The cosmetics market in the United States

The United States is the largest cosmetic market in the world (Appendix figure 3). The U.S.

Food and Drug Administration (FDA), which regulates cosmetics in the United States, defines

cosmetics as: "intended to be applied to the human body for cleansing, beautifying, promoting

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attractiveness or altering the appearance without affecting the body's structure or functions."

The FDA specifically excludes soap from this category. Cosmetic products imported into the

United States are subject to the same laws and regulations as those produced in the United

States. (FDA, 2009 )

There is a growing interest in both premium end products as well as anti-aging

products, which has helped to give the cosmetics and toiletries market in the US its first boost

after five years of declining sales (Pitman, 2006).The only sturdily positioned product group

in the U.S. is decorative cosmetics, and this group is predicted to uphold its comparative

benefit. The product groups; perfumes and fragrances, skin and sun care, hair colorants, and

toiletries are growing slower in the United States in comparison to the industry average

(Global insight, 2007).

It can be concluded that the overall demand in the United States is mainly for anti-

aging products, natural based products and decorative cosmetics.

3.6 The cosmetics market in China

The local market in China is enticing more consideration from other prominent cosmetics

firms; they look at China for increasing sales as other markets decline. China‟s local market

for cosmetics and personal care products has grown with 15 percent this year (Toloken,

2009).

In China the regulation of cosmetics is complex, involving two separate government

bodies. Cosmetics legislation in China is momentarily under evaluation, and may be the focus

to substantial alteration in the nearby future. The quickness of growth in the Chinese

cosmetics industry is so steep that each product group is successful and has incredible

prospects to expand market share (Global insight, 2007).

3.7 Differences between the United States and the Chinese markets

Multinationals have obtained strategic resources in growing markets like China or in larger

markets with low barriers to entry like the United States (Global insight, 2007).

A major difference between the cosmetic industry in Chinese and United States markets is the

difference in demand of products. There are always differences in regulation but in the

modern globalization era these differences in regulations are becoming less significant. More

important is the fact that the needs of the consumers and thus the trends in the United States

are different from those in Chinese market. There are several explanations for these different

needs. Ethnicity is one of these explanations; marketing managers are increasingly

recognizing the influence of ethnic groups (Holland & Gentry, 1999). Specific ethnic traits

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related to the specific ethnic group require special care and thus special products (Sugiyama-

Nakagiri, Sugata, Hachiya , Osanai, Ohuchi, & Kitahara, 2009). Further elaboration will be

provided in the next chapter regarding the role of ethnicity.

3.8 Conclusions

Regarding the knowledge gained in this chapter one can say that glocalization is a strategy

that has the possibility to fit the cosmetics market; localization is asked for in this market

dominated by large global companies.

Ethnicity can be a significant variable in grouping needs (Holland & Gentry, 1999).

Ethnicity is thus the local element in the global world. In the next chapter about ethnicity it

will become even clearer why glocalization is important in the cosmetics industry.

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Chapter 4: What is ethnicity, and which role does ethnicity have in China and the United States concerning cosmetics and beauty?

“In comparison to white girls, fewer African-American girls report trying to lose

weight. In cultures where plumpness is valued, eating disorders are rare"

Kathryn Zerbe (Professor and Vice Chairperson for Psychotherapy in the Department of Psychiatry at Oregon Health and

Science University)

Industry leaders in the cosmetics industry have focused product lines and marketing at the

ethnic niche market in the USA, primarily targeting the specific makeup and skin care needs

of Asian, African American and Latino consumers. This segment reported sales of $210

million in 1997, and this market is expected to continue its rapid growth (Sameer, 2005). It is

clear that there is growth in the ethnic oriented cosmetic market, but what exactly is ethnicity?

4.1 What is ethnicity?

When inhabitants experience differences or distinction in the manner that they look upon to

their nation, to the history and to the future ethnicity reveals itself. Nowadays, according to

Costa and Bamossy, ethnicity mainly copes with the doubt of an inhabitant‟s identity (Costa

& Bamossy, 1995). Ethnicity is not an easy concept to understand, for ethnicity is a broader

notion than religion, than color, and possibly even than culture (Costa & Bamossy, 1995).

Commonality is a key word concerning ethnicity; simply said the group must share a common

culture and a common history or future.

The definition provided by (Doane & Ashley, 1997, p. 376) is straight forward;

“From a definitional standpoint, the significant elements of ethnicity are that it is a group

affiliation based on a sense of people hood (i.e., belief in common ancestry, shared history,

and joint destiny) and that it is expressed in relation to other such groups within a society

(thus, identities such as Mexican American, Polish American, and Japanese American assume

relevance in the context of race and ethnic relations in the United States).”

Phinney (Phinney, 1996) defines a framework with the intention to identify and assess

aspects of ethnicity. She defines three main aspects of ethnicity:

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1) Cultural norms and values of the origin.

2) The strength, salience, and meaning of ethnic identity. In other words their sense of

belonging to their group,

3) The experiences and attitudes associated with minority status.

Other important variables are historical, political and economic influences. According to

Phinney (1996) ethnicity is used as broad grouping on the basis of both race and culture of

origin.

Numerous literature studies can be found concerning diverse frameworks on defining

ethnicity and labeling ethnicities. They all concur that this process of labeling and defining

ethnic groups is problematic. Labels are unreliable displays of group membership, they vary

over time and situations, carry different meanings among individuals and groups, and cope

with within-group deviation.

In the next paragraph the ethnicity in The United States and China will be examined

according to the aspects Phinney (1996) defined.

4.2 Ethnicity in the USA

The United States of America is an ethnically highly diverse country. Viewed from historic

perspective, the construction and the process of defining race and ethnic relations in the

United States focused on minority or subordinate groups, highlighting issues of identity and

change, oppression and resistance (Doane & Ashley, 1997).

At the present time, the American Census Bureau researches ethnicity and race in the

United States. The Census Bureau defines ethnicity as “the heritage, nationality group,

lineage, or country of birth of the person or the person‟s parents or ancestors before their

arrival in the United States” (U.S. Census Bureau, 2002). Time consuming research resulted

in 5 categories: American Indian or Alaska Native, Asian, Black or African American, Native

Hawaiian or Other Pacific Islander, and White. In the appendix, Figure 3 shows the diversity

of the ethnicity in the United States. The official spread is:

21

Ethnicity division U.S.A.

White 211,460,626 (75.1%)

Black 34,658,190 (12.3%)

Asian 10,242,998 (3.6%)

American Indian and Alaska Native 2,475,956 (0.9%)

Native Hawaiian & other Pacific Islander: 398,835 (0.1%)

Other race 15,359,073 (5.5%)

Hispanic origin 35,305,818 (12.5%) Figure 5: Constructed using the source: (Info Please, 2007).

The two main ethnicities, White and Black, will be focused on throughout the rest of this

thesis; together they make up approximately 90% of the market.

A White American (not of Hispanic origin) is a person having roots in any of the

original people of Europe, North Africa, or Middle East (Bhopal & Donaldson, 1998). As the

name of the ethnic group itself already portrays, a white American has a white skin color. A

white American is mainly individualistic of character (Hung, Li, & Belk, 2007). Ethnic

members tend to value and reward independence, autonomy, formality, and balance (Chávez

& Guido-DiBrito, 1999). In particular white Americans do not consciously express ethnic and

racial identity through their behaviors, values, beliefs, or assumptions. For this ethnic group,

ethnicity is usually obscure and unconscious because social norms have been built around

their racial, ethnic, values, and urgencies and then referred to as the standard American

culture rather than as their ethnic identity. Countless whites do not consider themselves as

actually having a race at all (McDermott & Samson, 2005). The white race is very hard to

define due to different backgrounds and their invisible identity.

“A „black‟ American is a person having roots in any of the Black racial groups of

Africa” as defined by United States Census Bureau (2000). “It includes people who indicate

their race as 'Black, African American, or Negro,' or provide written entries such as African

American, Afro American, Kenyan, Nigerian, or Haitian.” White and Parham (1990) have

defined African Americans by the ongoing influence of African influences in current Black

lifestyles, an impact that results in features such as emotional vitality, collective survival, oral

traditions, time perception, and interdependence, particularly within the extended family.

Phinney (1996) and Jones (1988) described Black culture in terms of five dimensions: time,

rhythm, improvisation, oral expression, and spirituality. (Phinney, 1996) They have a strong

22

belonging to their ethnic group in The United States. In the modern day they still have the

minority self-identity and besides that collectivism is an important feature of this ethnicity.

4.3 Ethnicity in China

The Han Chinese is by far the largest ethnic group in China (91.9%) and even covers 20% of

the world population. The native language is Mandarin Chinese and numerous Han Chinese

still hold traditional beliefs, even though the government of China formally encourages

atheism. Traditional Han society has three basic classes. These classes are the Mandarins

(bureaucrats and aristocrats); a class of peasants, workers and artisans; and the "average

people," those who are outcasts of society (Zetzman, 2007). These classes are now officially

banned, but many remnants remain.

To the Han Chinese, family is extremely important. The oldest male is considered the

head of the household, and is to be respected. Unlike a typical American household where the

nuclear family lives together, the traditional Han family consists of the entire extended

family. (Zetzman, 2007)

4.4 Ethnicity and cosmetics

Much research has been done considering beauty and there are a few scientific conclusions

made about overall perception of beauty that go beyond ethnicity, culture or subgroup. Hip

ratio, symmetry (Samuels, Butterworth, Roberts, Graupner, & Hole, 1994) and smooth skin

are seen as generalized beauty ideals (Grayson, 2009). Striving towards perfecting these

ideals will result in higher attractiveness.

Ethnicity comes with traits; every ethnic group is accompanied with certain average

properties. In the following table the skin traits we need to consider are discussed. In the third

column named „Consideration concerning culture of origin‟, the origin of culture of the

ethnicity will be considered. For example for the ethnic group the Han Chinese the behavioral

characteristics of their ancestors (origin) such as traditions have an influence on their modern

day manner of thinking. Culture of origin is often used as theory regarding the origin of the

company selling the product, however in this situation but has to do with the culture of the

ethnic origin. It can actually be seen as the historical beliefs and values of an ethnicity given

along generations after generations, making them imprinted in the ethnicity and thus still

influencing perceptions of beauty (Smith, 1990).

23

Ethnic group Properties Considerations

concerning culture of

origin

Conclusions

Black Signs of aging appear very late

Very little fine wrinkling

Formation of keloids is possible

Pigmentation changes may occur

Thicker cartilage hard to change

Skin cancer is very rare broad nasal base prominent lips

--Natural ethnic variations of the hips and thighs in African/African-American have been embraced, with more cosmetic procedures being performed to enhance these features. -

- Less focus on slender bodies -Less focus on anti-aging products - Emphasis on rounding by use of make up - Camouflage broad nasal base

White Fair, dry thin-skinned Scars heal well Signs of aging appear

earlier Burn easily in the sun Bruising more obvious Increased chance of

skin cancer Men have more hair

loss in comparison with other ethnicities

-Burn easily but sun tanned is preferable. -Slenderization preferred, as is long legs. -Show most body dissatisfaction in comparison with other ethnicities

- Sunscreen - Bronzing powder - More cover-up for bruising - Moisturizing - focus on body enhancement

Han Chinese Signs of aging appear late, Fine wrinkling does not usually occur

Pigmentation changes may occur

Skin cancer is rare Scar more easily Tends to be smoother,

with a yellowish undertone

The pores may be less visible over the face, but tend to be larger on the cheeks and around the nose (thus more prone to acne)

Dark spots as they age Widest pigment range

of all the skin types Higher eyebrow More receded chin lower nasal bridge

- Wide pigment range but overall white skin is most appreciated. - Delicate contour is preferred

- Whitening powder - Emphasis on delicate contour via make up - Anti-scarring products - Anti-aging products specialized in dark spots

24

Figure 6: This table is constructed using the sources: ( Siegenthaler, 2009) (Sugiyama-Nakagiri, Sugata, Hachiya

, Osanai, Ohuchi, & Kitahara, 2009) (Ramos-e-Silva, 2001) (Wesley & Maibach, 2003) (Talakoub, 2009) Made

by L.E. Mulder

4.5 Perception of Beauty in the United States

Beauty ideals of the United States based on the largest ethnic group also referred to as the

„whites‟ will be reflected, besides this a look will be taken at the perception of beauty in the

ethnic group „black‟.

Perhaps most known white ethnic group ideal of beauty is the trend of slenderization.

This means that the beauty ideal is to be slender; being fat is mainly not considered as an ideal

beauty. Another beauty ideal is big breasts. (Mazur, 1986 ). Pale complexion of the skin is

not preferred either, tanning has become increasingly popular over years even though it is

well known that it brings health risks with use. (Reilly & Rudd, 2008). Further elaboration

can be found in the table above.

4.6 Perception of Beauty in China

The beauty ideals of China will be based on the ethnic group also referred to as the Han

Chinese. This because the largest ethnic group is by far the largest, and thus the average

perception of Chinese culture does not deviate significantly from the Han Chinese perception

of beauty. Factors that need to be considered are that the ethnicity involves a wide pigment

range but overall white skin is most appreciated. Also a delicate body and facial contour is

preferred. (Talakoub, 2009). Further elaboration can be found in the table above.

4.7 Conclusions

Both the United States and China are Multi ethnic countries, although there is a

different spread; the United States have two major ethnic groups that together overlap 90

percent of the inhabitants. China has one major ethnic group that overlaps 93 percent of the

inhabitants. This means that the ethnicity perspective in China does not deviate as much from

the cultural perspective as the ethnic perspectives of the ethnic groups in the United States. A

culture can contain different ethnicities such as in the United States, because of this diversity

it makes it difficult to recognize skin traits. Separating the ethnicities makes it possible to

recognize opportunities in the natural characteristics of the skin and traits given from the

origin (Doane & Ashley, 1997).

Ethnicity has great influence on the perception on beauty. Perception of beauty is not only

dominated by ethnicity, subgroups could possibly also be defining. However in this thesis the

average perspective of the ethnic group will be used.

25

The issue arises if in the multicultural world we live in today there are still ethnic

groups to be found suiting the definition of Doane and Ashley (1997) and Phinney (1996).

Another issue is the choice of their ethnicity; for example one could be from historical

perspective a Mexican-American but not identify with them anymore. Another issue that

should be taken in consideration is the feeling about their ethnicity. Some ethnic orientated

products market their product to enhance ethnic features. However, if the market the company

is marketing to do not identify themselves with the ethnic group, marketing will have a

negative effect. Self-identification in ethnicity is a very important factor.

An additional issue is the choice for ethnicities and not for culture. Ethnicity is a

component of culture. When ethnics of an ethnic group intermingle with one and other

ethnicity becomes a method by which culture is transmitted, ethnicity is thus a part of culture

and very important, nevertheless it can also been seen in separate context.

26

Chapter 5: How can glocalization as strategy be used in marketing an ethnic oriented cosmetic product in the Chinese and United States markets, and what are the challenges?

“In the factory we make cosmetics; in the drugstore we sell hope.

Charles Revson (Former executive Revlon cosmetics)

Glocalization in an ethnic market requires marketing on ethnicity, influences and

consequences must be considered. Besides this, challenges in the Chinese and United States

market must be reviewed to be able to predict possible strategies. In this chapter these issues

and challenges will be investigated.

5.1 Marketing ethnicity

Promotional activities are inclined to communicate efficiently and achieve the approval and

acceptance of the targeted niche (Holland & Gentry, 1999). To achieve this approval and

attention companies may go above and beyond to simply match their niche‟s tongue or

language styles and use cultural symbolism. The model below shows the factors that affect the

strength and kind of reaction to the marketer's accommodation attempt, as well as the

consequences of that reaction. The dominant subject in the model is the consumer‟s reaction

to an intercultural accommodation attempt. It is important to understand prospective

relationships amongst the concepts involved in the consumers reaction, when we do we can

begin to forecast the probable outcomes of the attempts to target ethnic groups (Holland &

Gentry, 1999). When the antecedents are not taken into consideration the outcome of the

marketing attempt will be very uncertain. Understanding the responses of ethnic consumers

will lead to an effective marketing strategy and an effective glocalization strategy.

27

Figure 7: Source: (Holland & Gentry, 1999)

Ethnic Marketing for cosmetics entails first developing a particular product for a specific

group and adjusting promotional and sales efforts to target a specific group. Especially in the

latter stage the model of Holland & Gentry (1999) becomes important. The strength of the

ethnic identification is also very important. For example, the white ethnic groups in the U.S.

do not perceive their ethnicity as visible, promoting on issues as what it actually does for the

consumers will be more effective than majorly promoting the specificity for the white

ethnicity. While for the black American race the strength of expressing their ethnicity is more

important thus marketing that this accentuates their ethnicity becomes more important. Again

as in chapter 4.1 the consumer‟s identity, or in other words their sense of belonging to their

group is considered important (Costa & Bamossy, 1995).

In the next paragraph we will consider the antecedents, the consumer‟s response and the

consequences of the Holland & Gentry (1999) model considering glocalization.

5.2 Glocalization strategy in ethnic orientated cosmetics markets

Glocalization can be applied in three different levels; Innovation, Superficial and Core

Company function. This is also applicable for a cosmetic ethnic orientated product. In figure 7

a comparison is made from the previous chapters. Examples of different glocalization

strategies are given and examples for the different ethnicities are proposed. These aspects are

28

important but the implementation cannot be successful when a marketer attempting to market

ethnic orientated product does not consider the antecedents mentioned in 5.1.

The United States China

White Black Han Chinese Innovation anti-aging

for dry skin Anti-

pigmentation Whitening product

Superficial Blond hair blue eye

packaging

Packaging for black ethnicity

Chinese model for western product

Core company Computer systems

Corporate orientation

Delegation of authority

Figure 8: Comparative analyses: constructed by L.E Mulder using the sources: (Costa & Bamossy, 1995) (Holland & Gentry, 1999)

The consumer response must be considered, however this again differs from the Chinese and

the United States market, both these markets have their own challenges and guidelines to

follow. An example of glocalization on Superficial level for ethnic cosmetics could be having

an overall eye shadow line, however emphasizing which colors go best with different kind of

colored skin. In the next paragraph these differences, challenges and guidelines will be

considered.

5.3 Challenges accompanying the different markets

The Chinese market has a different structure compared to the United States market, evidence

of this was given in chapter 3, considering regulations and demand. In this paragraph first

behavioral aspects towards China will be considered, for example issues as; what to do and

what not to do?

China‟s current state of economic development has led to an increasing number of

multinationals trying to penetrate the Chinese market. During this process many mistakes

have been made, however these could help other companies in the future.

Mistakes Consequences

Double standards ( for example with quality) Associated with discrimination Ignorance of the law Embarrassment, loss of face Bending the rules Losing licenses; losing first mover

advantage Making “symbolic” purchases Perceived monopolistic behavior Overly aggressive tactics over intellectual property rights

Viewed as eager to suppress Chinese companies

Non-sensitive management Negative public relations "Strip mining" profits Tax audits and investigation; difficulties with

profit repatriation Using China as a lab Perceived as taking without giving

29

Figure 9: Source: (Park & Vanhonacker, 2007)

In Figure 8 challenges in the Chinese market and mistakes made are portrayed. Considering

these will make the implementation of the glocalization strategy more smoothly. These factors

are implementable as antecedent discussed in chapter 5.1 for marketing ethnicity (Holland &

Gentry, 1999).

5.4 Discussion

According to Cayla & Eckhardt (2007) there are two major challenges for regional branding

in Asia these are; negative county of origin perceptions and regional positioning being

fundamentally brittle. However, brands can achieve a regional positioning by concentrating

on Asian modernism rather than on communal cultural tradition. They can also benefit from

the newfound Asian pride and confidence, and as a final point they can use a Western stamp

of approval to indicate to Asians the feasibility of the brand. The Innovation level of

glocalization would thereby become very important

Challenges in the United States market are completely different. In comparison to

China it is not an up and coming country but already established. A major challenge in the

United States market is the increasing global competition; due to globalization cheaper brands

find their market share in the United States, stimulated by the economic crisis (Shocker,

Rajendra , Srivastava , & Ruekert, 1994). Consumers from the United States put more value

into brand name and price compared to other countries (Chike, 1994) .Marketing seems to be

of great influence in the United States, certainly compared with other countries (Song &

Parry, 1997). The superficial level of glocalization would thereby become very important.

5.5 Conclusion

The challenges are widespread. The most important factor is that the company must

understand the ethnic group it is orientating. Marketing is a very important factor, the way one

perceives the product but certainly also the way a consumer perceives the company is a

crucial element.

30

Chapter 6: Conclusion and recommendations How should global cosmetics companies tailor their glocalization strategy to the Chinese and

the United States markets for ethnic oriented cosmetics products?

The question how a multinational cosmetic company should cope with organizing their global

standardized strategy, and still have success on local markets was central in this thesis.

Additionally a global cosmetic company needs to know the ethnic groups to step into the

profitable market of ethnic cosmetics and understand and react to their ethnic history and

beauty ideals. In this chapter these answers will become clear, and solutions will also be

defined.

6.1 Conclusions

An overall conclusion that can be made is that a multinational company must identify clusters

of ethnicities that have similar traits or require similar products. Multinationals should target

these different clusters of ethnicities with differentiated selling, emphasizing behavioral

(culture of origin) aspects and skin traits segmentation factors (Hassan, Craft, & Kortam,

2003).

The United States strategy has always had the vision “if we have it we can sell it to the

consumers”, different from the Chinese vision; “if consumers need something we can sell it to

them” (Mohame & Ahmad, 2007).These visions implicate the difference in marketing needed.

However, there are multiple factors that must be considered when introducing a new product

on the market; one of these factors is ethnicity. Due to the growing globalization and increase

of products, the consumers‟ needs to identify themselves with some aspect of the product

have increased as well. This identification of ethnicity is visible in most situations, only the

ethnic group whites perceive their own race as invisible. A different tactic must be considered

when marketing to this niche. They would really have to be approached at the level of their

beliefs and the product really has to exhale a feeling. Still considering the white ethnicity, this

group has natural traits such as early aging signs. The combination of these natural traits,

perception of beauty and values and beliefs of their origin makes a cosmetic orientated

product marketable.

Maybe one could say that only the marketing itself makes ethic cosmetics important;

in every ethnic group consumers exist with dry skin. However, it is a fact that ethnic oriented

products are a profitable market for multinationals. In addition the market is not only

31

dependent on ethnic body differences; it is also dependent on the ethnic identity a consumer

searches for. There are also numerous difficult or impossible variables to control, for instance

a negative country of origin perspective. Then it becomes an art to make these variables less

present even if it is only for the eye.

Glocalization also contributes to a better understanding of the opportunities and

challenges associated with regional implementation of strategy and glocalization of different

levels of a multinational company. There are three different levels of glocalization possible

Innovation, Superficial, and Core Company function. Implementing these will be explained in

the section recommendations.

The literature study done in this thesis clearly implicated that marketing plays a large

role in a glocalization strategy for ethnic orientated products. The identity of a consumer, the

antecedents, the response and consequences of ethnic marketing is related to the glocalization

strategy a marketer takes for the specific product. The acting local part in the glocalization

theory has a correlation with the ethnic identity in combination with the ethnic skin traits of

the consumer. The global part of globalization has the correlation with the standardized

overall strategy of the global cosmetic company.

6.2 Recommendations

Firstly recommendations for a global cosmetic company that wants to tailor its strategy to the

Chinese market will be considered, assuming that the multinational is planning to implement

an ethnic oriented cosmetic product. The multinational must consider on which level they will

implement their strategy.

1) On Innovation level an example could be a whitening product to emphasis whiteness

in the ethnic skin. The whiter the skin, the higher the physical attractiveness of a

woman is. When choosing this level challenges as concentrating on Asian modernism

rather than on communal cultural tradition is important, also double standards for

example with quality should be handled with care.

2) On Superficial level an example could be changing the packaging. Research has

confirmed that Chinese woman prefer Chinese woman on their cosmetic packaging

(Hung, Li, & Belk, 2007). One must consider the challenge to use a Western stamp of

approval to indicate to Asians the feasibility of the brand.

3) On Core function level there are also multiple possibilities for China. For example,

different Accounting or ERP system. Investors in China require a different level of

32

information, this due to regulations of the government for accounting principles.

Another example of glocalization on core function level is delegation of authority.

Secondly recommendations for a global cosmetic company that wants to tailor their strategy

to the United States market will be considered, again assuming the multinational is planning

to implement an ethnic oriented cosmetic product.

1) On Innovation level one can consider the different ethnic groups present in the

United States. The Black ethnic groups in the United States have more need for dry

scalp treatments and the White group for anti-aging. Important for Ethnic

marketing in the United States is the large differences between the groups and that

emphasis on this can result in more sales.

2) On Superficial level an example could be a marketing campaign. Marketing a

product on television with a Black Ethnic person will attract this Ethnic group

increasingly.

3) On Core function level it is very difficult to really largely adapt to the different

ethnic groups in the United States. Core functions are very different per company,

however being a company that silently promotes it is ethnicity friendly (to Black

for instance) the products will also sell better. An example of glocalization on core

function level is corporate orientation what entails the process of accommodation

in which a new employee is enlightened concerning issues as the firm‟s history,

and its beliefs and values, unwritten rules, long term goals and management

structure. (Deshpandé, Farley, & Webster, 1993)

In cosmetics the skin traits of an ethnicity is the local component, a marketer must consider

the fact that in a country where certain skin traits hardly exist, such as the trait that in the Han

Chinese aging is not an issue, marketing an anti-aging cream especially for the Han Chinese

would not be such a considerable success due to the fact that ethnically speaking there is not

marketing for such a product. Realizing where the needs are for ethnic oriented cosmetics due

to the many factors acknowledged in this thesis and adjusting the strategy that ethnicity or

ethnic skin traits are the main focus as local component in a glocalization strategy will result

(ceteris paribus) in a positive result.

More research should be done considering ethnic oriented cosmetics. Considering that

knowledge for a marketer concerning the precise aspects of the ethnicity is very important.

33

Having this knowledge will help in making the right marketing related decisions and provide

the ability to localize a global cosmetic orientated product.

6.3 Limitations

In closure it is important to note some of the main limitations of this study. This thesis is

limited to female orientated ethnic cosmetics. This because male cosmetics is a total different

market and is still up and coming and not comparable. Another limitation is the fact of the

choice for using ethnicity and not culture. This because there are multiple ethnicities in a

culture, for instance in the United States, and that does not leave the possibility to zoom in on

specific biological skin traits. A third limitation is the fact that glocalization is a social theory

and not often translated to business context.

34

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39

Appendix

Figure 3 (Global insight, 2007)

Figure 4 (U.S Census Bureau , 2000)

Chapter 2.3

Examples glocalization:

Wal-Mart (Matusitz & Leanza , 2009)

40

Wal-Mart claims that it has a global strategy but a local approach. For instance, in the United

States Wal-Mart have greeters at the front door. However, this „aggressive‟ approach is not

welcome in countries such as Britain or the Netherlands; it would be counterproductive and

scare off, for which Wal-Mart had to change their approach. They use the superficial level in

this case.

Nokia (Kamineni, 2005)

Nokia received many complaints from Native Americans as the phones built by Nokia were

not appropriate for their daily lives due to sand damage. Nokia replied to these local customer

needs with introducing the dust-resistant keypad, anti-slip grip and a built-in flash light. This

is the innovation level.

McDonald (Vignali, 2001) (Saeed & Kendall, 1992)

McDonald‟s preserves standardized levels for its equipment technology, product offerings,

customer service, cleanliness, and operational systems. However, McDonald‟s glocalization

strategy is to increasingly pay attention to local consumers and then actually act on it. For

instance, localize favorite foods around the world such as the McItaly burger in Italy,

Maharaja Mac in India, the McLobster in Canada, the Ebi Filit-O in Japan. McDonald is

focusing on local food behavior with a global standardized management strategy; they use the

innovation level in this case.

41

How should global cosmetics companies tailor their

glocalization strategy to the Chinese and the United States

markets for ethnic oriented cosmetics products?

What is glocalization and what is

a glocalization strategy?

Why do consumers use cosmetics, and how does the cosmetics industry cope with this?

What is ethnicity, and which role

does ethnicity have in China and

the United states concerning

cosmetics and beauty?

How can glocalization as strategy be used in marketing an ethnic oriented cosmetic product in the Chinese and United States market, and what are the marketing challenges?

Definition and History

Examples and difference globalization

Glocalization strategies and challenges

Industry background and leaders

Why cosmetics?

Trends and developments

Definition of ethnicity?

Ethnicity function in the United States and china

Ethnicity and cosmetics and beauty?

Ethnic marketing

Glocalization and cosmetics

Challenges