1. Cecchinel Selene De Nardi Beatrice

2. Korean Cosmetic Company 1945 Suh Sung-Whan 1993 Amore Pacific 1959 Exports Door-to-door sales 70s - 80s Internationalization KoreaChinaFranceU.S.

3. 19th century Main western firms Different sense of beauty

4. ↓ Corporate Rebranding: objective of creating “a holistic identity system that merges Eastern and Western inspirations but with Korean accent” Vision: become “World Class” TARGET 2015: deriving 30% of sales from overseas ↓

5. CAGE FRAMEWORK CULTURAL DISTANCEGEOGRAPHIC DISTANCEADMIN. DISTANCEECONOMIC DISTANCE FRANCE Different sense of beauty Reluctance to buy cosmetics from foreign countries Physical distance Different time zones Lack of land border Different currency and legal system Lack of colonial ties Lack of shared regional trading block Mature market Home of cosmetics L’Oreal CHINA (Affinities!)(Closeness!) Closed market until 1980s 200% - 300% Tariffs on cosmetics Prohibition of FDI Law against door-to-door sales U.S. Different language and ethnicities Different norms and values Differeces in national work system Physical distance Different time zones Lack of land border Different currency and legal system Lack of colonial ties Lack of shared regional trading block Differences in consumer incomes Different economic size Different availability of resources

6. FRANCE: Premium segment but with local brand Two skin-care products Attempt of Aggregation - Failed Perfume market “Made in France” “We didn’t want people to associate Korea with our Brand” Catherine Dolphin ADAPTATION

7. CHINA: Bottom-up penetration Cultural Affinities BUT Entry Barriers Profit of new legislation, lighter entry barriers and the “Korean Wave” ADAPTATION AGGREGATION

8. US: Top down penetration Focus on Korean\Chinese immigrants THEN Started to focus on Luxury products ARBITRAGE – ADAPTATION

9. EVALUATION: Better off and Best alternative test FRUSCHI Industry Attracti veness x Differen tiation x Dual Effects xx Risk xx Cost effect x Better – off Test Subsidiaries were main strategy Acquisition Joint Ventures Franchising ? Strategic alliances Licences Best alternative Test

10. CONCLUSION “France, China and US are very different markets from South Korea. What worked in South Korea is not our strategy in these other continents.” Senior executive of AmorePacific