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Monday, June 27, 2011

Lolita Lempicka2

Amore pacific tried to establish skincare brands like Soon and Lirikos before launching Lolita Lempicka but it ended up with failure in French market.

1. "SOON" - Made in Korea -> The image of the Korea at that time was not good enough to appeal to the western people.

2. "Lirikos" - Amore decided to benchmark a successful case of Shiseido, a Japanese cosmetics company which managed to attract western people by launching new brand "Kenzo" and "ISSEY MIYAKE" adapted to western consumers. Amore Pacific spurred the penetration of French cosmetics market by buying out a former Faberger factory and establishing a French subsidiary, "Pacific Creation"; the outcome was, however, disappointing and different from what it anticipated. Even though it was labelled "Made in France", operation by a majority of Korean managers in French subsidiary produced the first product line(skin care) without full understanding of western culture, resulting in disharmony in the company. 

3. "Lolita Lempicka" - By hiring Insoo John, who studied in France for 10years before joining the Amore pacific and has become the CEO of Pacific creation, it started to execute "Go native" strategy in order to turnaround the company. Although Amore pacific has a majority of shares of Pacific Creation, every business in Europe is left to the discretion of Pacific Creation for the efficiency.Very competent French cosmetic professional people arrived to Pacific Creation to launch Lolita Lempicka perfume under the license contract with a fashion designer, Lolita Lempicka, and it made a huge success.

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