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Market study: Vichy in China

 Vichy is a commune in the Allier department in Auvergne in central France. It belongs to the historic province of Bourbonnais. It is known as a spa and resort town and was the de facto capital of Vichy France during the World War II Nazi German occupation from 1940 to 1944. The town’s inhabitants are called Vichyssois. Up until the 18th century they were more properly known as les Vichois which stems from the Occitan name of the town.

Vichy first entered China market in July 1998, and became the first brand in the country to sell cosmetics in pharmacies. Facing a difficult situation due to the saturation of the Chinese cosmetic market, Vichy successfully found a new way to win consumers.

Vichy used to set its market position in a high grade and would only sell its products in pharmacies, but recently, Vichy has changed its market strategy. Vichy products are now found everywhere in China: in department stores, supermarkets, shopping malls, and anywhere else that sells cosmetic products.

The market research in China done by Vichy indicated that most female customers tended to go elsewhere to find cosmetic goods rather than going to pharmacies. They only went to a pharmacy when they felt sick. Vichy mainly targets those female consumers who accept new productions, pay more attention on personal health and care less about price than functions of a product.

Traditional ways of cosmetic marketing usually cost a lot and all the brands are similarly marketed. This makes it difficult for consumers to determine which brand is the best. Vichy markets its products differently from its competition.

Vichy could reach the needs of consumers by offering exquisite packages. Major Vichy’s packages are blue, white, and transparent, which can remind consumers of its name spring water and bring the enjoyment of beauty.

Main competitors of Vichy in China

Vichy is a branch from L’Oreal, which entered China in 1996.

L’Oreal is the world leader in the cosmetics industry and its worldwide sales have grown steadily. So far, L’Oreal expansion into Asian countries is still growing rapidly. Despite this expansion, the company has yet to achieve its full potential in the emerging Asian market and expects to see its sales grow even faster in the future.

Avon entered China in 1990. Now, Avon has 74 locations in 23 provinces, 5 autonomous regions and 4 municipalities directly under the central government. It currently has a total of 2,000 employees in China.

Nivea has been a leading brand in the international skin-care market, and one of the most famous German companies in China’s market. NIVEA is one of the best FMCG brands in China.

Daxue Consultant China (market study in China)


Credit Photo: cool80