1.2.4 Formation of Somang management
- Beauty Department
Beauty Department have contributed to Somang cosmetics' growth from when the company established to now. In the early days, Somang Cosmetics started selling the beauty materials and they have been growed.
- Market business department (core of business)
This Department try to produce its products in every restore. They c
for approximately 80% and remains are dependent on imports. In the case of cosmetic distribution in Thailand, direct sale takes 55%, and other way to sell them in cosmetic section at department store counts for roughly 37%. Moreover, organic raw materials from thailand is well-known worldwide. That's why their products are famous in Europe. 'THANN' cosmetics are popular as luxurious organic
I. Environment Analysis
Introduction
Lately, South Korea's cosmetic companies are actively entering Japanese market. In particular, low-priced brand companies entering are remarkable. Continuing the long-term recession, Japanese consumers find inexpensive cosmetics. Through this period, cosmetics of South Korea draw popular through low price and good quality. Celebrity publicity is also inf
For example, each business segment makes its own advertisements such as picture and video and posts them on magazine, newspaper and so on. However, since LVMH uses the common image and other advertising materials to its geographical markets, if LVMH categorizes its business by its geographical markets, the advertising cost would not be regarded as traceable fixed cost, but common fixed cost.
Thus, our team decided to study about cosmetic market in China. We found that foreign companies like L’Oreal, Procter & Gamble Co and Shiseido have large portion of the China’s cosmetics market share while Korean companies have little portion of that. However, Korean beauty products also have high quality and Chinese people are favorable to Korean products. In other words, it is hard to under