“Beauty Sculpt for You” Product Expansion in China

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Introduction

Today society is filled with the obsession with promoting a self-image of beauty and perfection. Individuals take extreme measures to reach the goal of a flawless body; however, with so many innovations, beauty can be accomplished with no surgery, a balanced diet, and exercise. “Beauty Sculpt for You” is a procedure that is pain-free, consisting of ultrasound cavitation, radio frequency, suction, and with lipo pads. The benefits of an ultrasound cavitation liposuction treatment are the following: Improved blood circulation, lymph circulation, improved skin texture, body tightening, excellent performance of body shaping, and surgery or pain. No anesthesia is needed or required, and it removes fat cells permanently, cellulite therapy, and connective tissue tightening. The advantage of this treatment is that it can be done from the comfort of one’s home without the necessity of traveling to a spa and spending over 200 dollars per session.

Product for Globalization

Thus, the selected product, which is intended for distribution to other markets, is the cosmetology device with which “Beauty Sculpt for You” is performed. Since the service itself cannot be extended to other markets, the decision to develop the commercial appeal of the apparatus product seems very justified. Also, international expansion should bring the desired effect because the issues of excessive weight and the desire to achieve aesthetic perfection of the body are permanent and do not depend on the region. In other words, “Beauty Sculpt for You” has the potential to be a commercial success in other markets.

Location for Global Expansion

Placement strategies in new markets can vary, and it cannot be said that there is a universal rule that guarantees success. On the contrary, the guidelines and criteria described below may be favorable for “Beauty Sculpt for You” but utterly unsuitable for other businesses. Therefore, it is critical to emphasize that each company, when intending to expand into new markets, should conduct an individual audit rather than relying on success stories. For the purposes of this product, it was decided to investigate only those regions with the largest populations. The choice of this policy is justified: since it is assumed that the product offered will be top-rated among the majority of the population, choosing countries with initially larger populations increases the statistics of commercial benefit.

Thus, for the present analysis, the approach chosen was a study of the ten most populated countries. For this purpose, the material prepared by Hawal (2021) was used, although population data is publicly available, which means that any other source could have been consulted. Therefore, among the potential candidates for expansion, the following countries should be considered:

  • China with a population of 1.439 billion.
  • India with a population of 1.380 billion.
  • The USA with a population of 331 million.
  • Indonesia with a population of 274 million.
  • Pakistan with a population of 221 million.
  • Brazil with a population of 213 million.
  • Nigeria with a population of 206 million.
  • Bangladesh with a population of 165 million.
  • Russia with a population of 146 million.
  • Mexico with a population of 129 million.

Economic Growth (GDP)

Another, no less critical criterion under observation is the level of gross domestic product. Primarily, it should be said that GDP is standardly understood as the value of all services rendered and products produced in the country for a specific reporting period: as a rule, for a year. Thus, the higher the GDP, the more developed the economy is because its resources work more intensively. The decision to choose the country with the highest level of GDP was also justified by the assumption of the most developed market. In other words, entering the markets of developing countries with the new product “Beauty Sculpt for You” might seem like a ruinous idea because society would not have enough money for this level of self-care. On the contrary, prosperous, developing economies with high GDP growth usually reflect high chances for territorial development of a new product.

It is worth realizing, however, that GDP itself can be a relatively weak function because of the disproportionate value of the services and products produced and the population. Instead of focusing only on this parameter, it is also appropriate to turn to the economic growth rate, expressed as a percentage. In short, economic growth refers to an increase in the output of goods and services for a particular country. The information below was compiled by synthesizing material from Bajpai (2021) and WPR (2021). Thus, among the ten fastest-growing economies in the world, the following candidates have high practical value for launching “Beauty Sculpt for You”:

Region Economic Growth (2021) GDP (2019-2021)
India 11.5% 11
China 8.1% $13.40T
Spain 5.9% $1.50T
France 5.5% $2.88T
USA 5.1% $20.49T
Indonesia 4.8% $1.21T
UK 4.5% $2.83T
Mexico 4.3% $1.30T
Brazil 3.6% $1.87T
Canada 1.9% $1.71T

Table 1. Economic growth and GDP data for the top 10 countries.

FDI

Finally, the third important criterion for this paper is Foreign Direct Investment. In short, FDI is the parameter corresponding to investments aimed at the long-term control of the investor over the economic activity of the recipient company in another country. In other words, it is the purchase of a controlling stake in foreign companies in order to control them. Kearney (2021) lists 25 countries with the highest FDI index:

Region FDI
USA 2.17
Canada 2.10
Germany 2.07
UK 1.99
Japan 1.98
France 1.95
Australia 1.90
Italy 1.88
Spain 1.86
Switzerland 1.86
Netherlands 1.82
China 1.81
New Zealand 1.78
Sweden 1.77
UAE 1.77
Singapore 1.77
Belgium 1.74
Norway 1.73
Austria 1.72
Portugal 1.71
South Korea 1.71
Denmark 1.70
Ireland 1.66
Brazil 1.64
Finland 1.63

Table 2. FDI data for the top 25 countries.

Decided Country

Based on the data of the analysis, only one country was selected as the primary attempt to expand “Beauty Sculpt for You geographically”. Among all the candidate countries, special attention should be paid to China, because after the USA, which is the home country of the company, it is the second leader in the list. China is the absolute leader in terms of population and holds one of the top positions in terms of GDP and FDI. Consequently, choosing China to invest in product development in the local market is a potentially successful strategy to distribute.

Totals for the ten countries and calculation of the sum.
Table 3. Totals for the ten countries and calculation of the sum.

Political Influences on Globalizing Product __ to ___ location

Although China represents an enormous untapped potential in regard to the opportunity for expansion and the promotion of the brand to the target audiences, several political factors may impede the further promotion of the product and the development of a strong supply chain within the target setting. Namely, the fact that all trade-related interactions within the Chinese market are rigidly controlled by the state government and the Communist party is likely to pose a problem. Due to the rigidity of legal standards imposed on trading partners within the Chinese market by the Communist Party, the threat of the company’s economic growth and the attraction of new customers may be heavily jeopardized (Irwin Crookes & Farnell, 2019). Moreover, due to the possible restrictions set by the authorities, the process of service delivery may be disrupted, causing the quality of the end product to drop (Irwin Crookes & Farnell, 2019). Therefore, it is vital to ensure that the organization has enough strategies to confront the possible limitations. Thus, despite the model of a free market being promoted actively as the hegemonic approach toward regulating the market relationships within China, the government still has a strong grip on the key transactions. As a result, when introducing the service into the Chinese market, it is crucial that the service and, particularly, the elements of its brand image should not conflict with the established standards and policies of the Chinese government and Chinese Communist Party.

Economical Influences on Globalizing “Beauty Sculpt for You” to China

In turn, the economic factors defining the performance of the organization in the Chinese beauty industry are largely positive. Given the recent economic breakthrough observed in China, particularly, its skyrocketing GDP rates and the ample consumer purchasing power, introducing the “Beauty Sculpt for You” into its setting seems to be a reasonable decision. Specifically, since China has experienced a significant economic upheaval, “Beauty Sculpt for You” will be affordable for most members of the target audience (Irwin Crookes & Farnell, 2019). Thus, by globalizing the product to the target location, one will be able to improve the performance of the product in the global market as it is introduced to another economic setting.

Moreover since the Chinese economic setting has some markers of free-market economy, advancing the product into it and promoting it to the target buyers will be comparatively easy (Irwin Crookes & Farnell, 2019). Finally, the fact that the beauty industry has been flourishing in China deserves a mentioning. Specifically, reports show that the Chinese beauty industry revenue reached 340 billion yuan in 2020 (“Retail sales value of cosmetics by wholesale and retail companies in China from 2010 to 2020 (in billion yuan),” 2021). Therefore, the beauty industry has been growing exponentially, shifting quickly into the e-commerce realm. For this reason, introducing “Beauty Sculpt for You” into the Chinese market might seem challenging given the rates of competition, yet ultimately beneficial for the company’s development and expansion into the global economy.

Location Is Currently a Moderate Level of Economic Development

As emphasized above, China is currently experiencing active economic development, with multiple improvements and innovations introduced, including the focus on e-commerce. Therefore, China can be considered at a fairly high level of economic development. Although China is technically labelled as a developing country, it has shown enormous progress, which is why it can be deemed an environment with a massive potential (Li et al., 2020). For this reason, pursuing opportunities for expansion in it makes quite a lot of sense for a company willing to expand into the global setting.

One could argue that the level of economic development shown by China over the past decade allows placing it at the level of a developed country. However, the observed improvements still coexist with a noticeable income gap and the presence of high poverty rates within the state (Li et al., 2020). Therefore, Chinese economy cannot be defined as developed yet. In order to reach the specified status, China will need to solve its social issues, particularly, the distribution of resources and the social hierarchy concerns.

Finally, the restrictions on international trade have resulted in the economic concerns such as underrepresentation of a range of global brands in the Chinese market. Therefore, the lack of competition from global monopolies is another important advantage that “Beauty sculpt for You” will enjoy in the Chinese cosmetics market.

Legal Influences on Globalizing “Beauty Sculpt for You” to China

The effects of regulations on the performance of the product in the Chinese market are also going to be quite pronounced. Since the Communist Party in China defines most of the business- and trade-related transactions within the Chinese economic context, the legal standards set by the party will affect the company’s performance to the greatest extent (Liu & Zhou, 2021). Specifically, it is worth remembering that the cosmetics industry in China is defined by the standards outlined in the China Food and Drug Administration (CFDA) (Su et al., 2020). Therefore, the legal repercussions of failing to comply with the CFDA’s provisions should be deemed as the primary focus of the company’s future performance in China.

Additionally, the hygiene issue should be addressed in order to meet the legal standards of the Chinese beauty market. Namely, the requirements established by the General Administration of Quality Supervision, Inspection, and Quarantine of the People’s Republic of China (AQSIQ) should be regarded as vital when shaping the company’s strategy in the Chinese market (Xu et al., 2020). Specifically, it will be necessary to ensure that the advertising techniques, as well as the services themselves, do not infringe upon the rights of customers and are not conducive to any adverse outcomes.

Cross-Cultural Management and Interactions

To approach the Chinese beauty market, a thorough cultural analysis of the target customers is required. Specifically, Hofstede’s Cultural Dimensions model will be needed to understand the specifics of Chinese customers and their behavior. The model suggests assessing a cultural environment based on its propensity toward one of the two criteria per each of the six crucial cultural dimensions. Namely, the model includes indulgence vs. restraint, long-term vs. short-term, masculinity vs. femininity, tolerance of uncertainty (low to high), individuality (low to high), and power distance (low to high) (Pareek & Kumar, 2020). Thus, the model helps to assess the target setting based on the key characteristics of cultural traditions and interpersonal interactions.

In the context of China, the model can be applied to identify the means of appealing to the target population. For instance, although restraint has been the dominant trend in Chinese consumer culture for decades, a minor trend toward indulgence in light of the recent economic growth can be observed (Pareek & Kumar, 2020).

Moreover, Chinese customers appear to be oriented toward the long-term implications of their choices, which is why the emphasis must be placed on the utility of the service, specifically, the longevity of the procedure effects and the positive results,. Being defined as mostly pragmatic, Chinese culture has created premises for long-term choices and analysis (Pareek & Kumar, 2020). Therefore, due to their perseverance that has been culturally infused into their very identity, Chinese people are capable of setting and achieving long-term goals. Consequently, the introduction of the “Beauty Sculpt for You” product will have to be promoted as a long-term solution to skin care issues; particularly, its anti-aging effects and the opportunity to maintain them for a prolonged period of time must be emphasized.

Another dimension that implies comparing the propensity toward feminine stereotypes compared to masculine ones, China seems to be geared heavily toward the latter. Indeed, the present-day Chinese culture is quite masculine-oriented, which can be observed in the values and philosophies that the Chinese community considers as the priority. Specifically, the focus on success and active career building and the pursuit of success define the Chinese identity and spirit (Pareek & Kumar, 2020). In Hofstede’s framework, the specified philosophy makes Chinese culture masculine. Thus, two segments of the product will have to be introduced into the target setting, namely, the services for women and those for men. Thus, both men and women will be able to perceive “Beauty Sculpt for You” as the product that targets their specific needs.

The tolerance of uncertainty, which constitutes the fourth component of Hofstede’s model, is also an important factor in defining Chinese consumers. According to the current behaviors of Chinese buyers, they have a rather high level of uncertainty tolerance (Pareek & Kumar, 2020). Specifically, Chinese consumers are comfortable with ambiguity and are able to adapt (Pareek & Kumar, 2020). Therefore, their flexibility should be added to the analysis as an important advantage for the company. Consequently, the brand image of “Beauty Sculpt for You” does not require drastic changes to be welcomed in the Chinese market. Instead, the company should focus on emphasizing its authenticity an effects.

In turn, on the Individuality scale as per Hofstede’s model China scores quite low. Namely, due to the culture of collectivism promoted by the Communist Party, citizens abstain from focusing on individual needs (Pareek & Kumar, 2020). As a result, buyers’ habits are defined by the majority of the population and the general trend. Therefore, ensuring that “Beauty Sculpt for You” gains traction in the Chinese market immediately after its introduction is vital for the brand’s success. The awareness campaign can be conducted by using local Chinese social networks.

Finally, the power distance levels in China need to be discussed. Currently, they are exceptionally high due to the belief that significant discrepancies between classes are inevitable and acceptable (Pareek & Kumar, 2020). For this reason, the social hierarchy within China is to be taken into consideration when introducing the product into the Chinese beauty market. Namely, “Beauty Sculpt for You” will need to be promoted differently to representatives of different classes within China. In the context of globalization, the norms mentioned above may have been changing toward the standards promoted by the West. Indeed, reports show that the younger generation of Chinese citizens shows lesser extent of support for traditions (Pareek & Kumar, 2020). Nevertheless, ensuring that the key Chinese social standards, principles, and ideas are followed is vital for a successful market entry.

Conclusion

Overall, to promote its brand in the Chinese market successfully and enter the target setting quickly, the organization will need to deploy an elaborate customer segmentation strategy based on the stereotypes regarding class and gender that the Chinese community supports. Thus, the “Beauty Sculpt for You” brand will appeal to every segment of the target Chinese population. Furthermore, the “Beauty Sculpt for You” service will have to be positioned as a luxury option that affects the social status of the buyer. As a result, the target population will be attracted to the product immediately, and the entry into the Chinese economic realm will be completed.

References

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BusinessEssay. (2023, January 19). “Beauty Sculpt for You” Product Expansion in China. Retrieved from https://business-essay.com/beauty-sculpt-for-you-product-expansion-in-china/

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BusinessEssay. (2023, January 19). “Beauty Sculpt for You” Product Expansion in China. https://business-essay.com/beauty-sculpt-for-you-product-expansion-in-china/

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"“Beauty Sculpt for You” Product Expansion in China." BusinessEssay, 19 Jan. 2023, business-essay.com/beauty-sculpt-for-you-product-expansion-in-china/.

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BusinessEssay. (2023) '“Beauty Sculpt for You” Product Expansion in China'. 19 January.

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BusinessEssay. 2023. "“Beauty Sculpt for You” Product Expansion in China." January 19, 2023. https://business-essay.com/beauty-sculpt-for-you-product-expansion-in-china/.

1. BusinessEssay. "“Beauty Sculpt for You” Product Expansion in China." January 19, 2023. https://business-essay.com/beauty-sculpt-for-you-product-expansion-in-china/.


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