L’Oréal in China: Marketing Strategies for Turning Around Chinese Luxury Cosmetic Brand Yue Sai

The case requires students to choose a positioning, communication and distribution strategy for Yue Sai, L’Oréal’s troubled Chinese luxury brand, by analyzing extensive information about the Chinese cosmetic market and the history of the brand. The case illustrates the challenges that even leading multinational firms can experience when doing business in China, including (1) the trade-off between a functional and lifestyle value proposition and (2) how cultural beliefs and rising national pride influence Chinese consumers’ attitude toward Chinese and Western luxury brands. The case website allows students to watch Yue Sai's television commercials as well as video interviews with the CEO of L'Oréal China and the management team. Instructors can register to access the teaching note, which contains the username and password that will allow them to access instructor-only information on the case web site. This includes a PowerPoint presentation for use in class, TV commercials and infomercials, and professionally edited videos interviews with the CEO of L’Oréal China, the Managing director and Marketing Director of Yue Sai, as well as with consumers, retailers, and a beauty magazine editor. The case can be used in an undergraduate, MBA, or executive education course on marketing management, marketing strategy, brand management, international marketing, international business, or other related subject. A Chinese version of the case will be available shortly.