Case Study on Mary Kay Cosmetics: Asian Market Entry

Executive Summary

Mary Kay Cosmetics Inc’s (MKC) was facing challenges of increasing number of competing direct selling organizations in the US cosmetics market and was not satisfied with their sales revenue generated from international sales. They believed MKC culture could be transferred internationally and that Mary Kay Ash’s charisma, motivation and philosophy were likely to appeal to women throughout the world.

MKC management would like to expand their coverage to some other Asian countries – Japan and China. With evaluations of both markets through PESTEL framework and their own market attractiveness, there are proven potentials in developing MKC in these markets.

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Featuring anti-aging, acne healing and smooth snowy-white skin skincare products and foundations were best-selling items in the Chinese cosmetics market. Chinese preferred basic packaging, just products in plastic or glass jars with decorated or colored caps will do.

Technological Situation
Japan, being the second-biggest spender on R&D behind the United States and especially strong in industrial technologies, MKC can take advantage of such skills in both production and research.

Environmental Situation
Japan has 4 distinct seasons and relatively mild and temperate climate, with exception of Hokkaido to the north and subtropical area of Okinwa to the south.

Same to China, it varies from bitter cold in winter to unbearable heat and humid in summer. Northern regions such as Beijing may experience temperature of -20C, dry and even snow storms in winters. And in the south, as in Guangzhou, temperatures can rise to around 38C in summers and miserably wet and cold, with rain or drizzle in autumns and springs. Factor of Legislation
Ministry of Health in Japan has strict regulations governing imports and lengthy approval processes for manufacture of cosmetics. It happened that, common ingredients approved for use in cosmetics outside Japan were prohibited by Ministry of Health, and required reformulations of the products.

To enhance the economic, the Chinese government was more welcomed to