Discuss About The Chemical Business With International Market.
Established in 1999, Sodashi has achieved accolades and glory by catering to the health needs of the people. The vision of the personnel is to bring out the inner beauty of the people through the provision of quality skincare products. The name of the brand is originally a Sanskrit word, meaning purity, completeness and radiance (Sodashi.com.au 2018). As a matter of specification, the customers are offered numerous products, which include face wash, creams, lotions among others. The customer reviews are evidence towards the sale of quality cosmetic and make up items. The research and development team consists of skilled and efficient professionals. This helps in ensuring quality within the management goods.
The company has its outlets in more than 20 countries in the world. In the tenth year of its operation, the company personnel has indulged in partnership with Australian spas including Spa Qualia in Hamilton island; Lost World Spa in O’ Reily Rainforest Resort in Gold coast Hinterland and Spa Dreamtime, Spa Kilda Baths and the Lyall Hotel and Spa in Melbourne (Sodashi.com.au 2018).
The products are prepared from the natural ingredients, which helps the personnel in the achievement of large scale customer satisfaction. The preparation and storage of the products are efficiently done in terms of preserving the originality and freshness. The extracts used in the products are imported from France and Australia. Innovation in the products is the main aim of the research and development team. However, this is not to compromise with the original values of the company. The company is popular among the customers for the provision of spas and therapies. For this purpose, the company indulges in partnership with famous hotels and resort across the globe (Sodashi.com.au 2018).
Sodashi can be said to belong to the cosmetic industry of Australia. The sales revenue of the cosmetic industry was $4.98 billion in the era of 2015. The major drive behind this is the growing demands of the women. The managers are of the view that with this rate, the compound annual interest would grow 9.31%. This escalation would mount the sales revenue of the industry to 7.76 billion by the end of 2020. The success of this industry is dependent on the needs, demands and requirements of the customers (Sodashi.com.au 2018). Maintaining the volume of the production is needed for averting falling prey into the instances of financial instabilities.
Delving deep into the market, most of the revenue is generated from the US markets, where the sales revenue for the skincare products is 70,818 million US dollars. The per person revenue in terms of the total population figures is 181.02 US dollars. There has been an unprecedented growth in the skincare products since the era of 2010. This is also in terms of the per capita income. The major drive behind this is the adoption of online marketing, which has added to the stock of customers (Sodashi.com.au 2018).
The consumers for the skincare products of Sodashi can be categorized based on their income, urge to look good and passion to possess quality products. Along with this, the marketing segmentation is also done based on the type of products they want. Here, the demand for natural products gains popularity among the target audience. Delving deep into the business transactions of the company, the revenue is generated from both the men and the women. This is because of the wide range of products, which the company offers (Sodashi.com.au 2018).
In the present age of pollution, both the men and the women are working. They do not have the time to take care of their skin and health. They get out in the sun, which brings tan on their face. The personnel speak of the demands of the customers regarding tanned faces. Along with this, there are teenagers, who need products for curing the issues of rashes and pimples. There are customers, who intend to avail spa services while on vacation. The company has the solution for every needs exposed by the customers.
The company also deals with gift packages for the customers. The aspect of social media marketing proves beneficial for the personnel for catering to the needs, demands and requirements of the clients (Papadopoulos and Heslop 2014). Social media marketing is effective in terms of reducing the gaps with the customers. This is irrespective of geographical distances. As a matter of specification, feedbacks are taken from the customers regarding the type of products they require. Along with this, the income of the customers is taken into considered. This is in terms of setting the prices of the products. This step is carried out for delivering quality products to the customers, especially those belonging to the middle class.
Conducting door-to-door campaigns helps the personnel of Sodashi to gain awareness regarding the specific tastes and preference of the customers. Along with this, it also helps in identifying the target markets (Armstrong et al. 2015). Apart from this, giving the products free with other products also helps the personnel to identify the potential targets. Uploading the images of the newly launched products on the social networking sites and the website increases the trafficking of the audience towards the brand image. From this, the personnel can identify their target audience.
For expanding the scope and arena of Sodashi business, the markets of Japan and Hong Kong can be beneficial.
According to the census report of 2015, the sales revenue of Japanese cosmetic industry market was 28.62 million US dollars. It is expected to mount up to 45.64 million US dollars by the end of 2020 (Trade.gov 2018). This is the calculation in terms of compound annual growth rate. Moreover, Morschett, Schramm and Zentes (2015) is concerned about the use of natural extracts for making the cosmetics can act as a threat of substitute for Sodashi. The cheap rate of the products would increase the sales revenue.
The cosmetics are prepared in terms of the application by the customers. Increase in the volume of sales is one of the ways in which the customers are attracted. Mention can be made of Japan, which has achieved remarkable growth in the period of 2013-2015 through the export of large-scale goods to the neighboring countries. Herein lays the appropriateness of the per capita spends to $174. Utilization of the channels of social media for selling the high priced products produces a low sales revenue and profit margin. The customers prefer value for money. There is a high demand for the latest and modern technologies in terms of manufacturing and distributing the products to the customers. Already established brands like La Prairie, Dior, Guerlin can give tough competition to brands like Sodashi (Trade.gov 2018). Typical example of this is the women characters displayed in the cosmetic advertisements in the Korean TV channels.
The ups and downs of the Japanese consumer market is dependent on the use of the women customers. Increased demands of the products like BB creams, CC and DD creams can be a loss for Sodashi in terms of the natural products (Sodashi.com.au 2018). The ageing crème can be popular among the older customers. Obscure market segmentation compels the difficulty of the marketers in terms of identified customers. Inadequate skills of the research and development team can act as an obstacle in the production of efficient quality products. Majority of the Chinese customers purchase the cosmetics
The cosmetic brands of Hong Kong are priced moderately. Lucrative placement opportunities have attracted the foreign investors to invest in the Hong Kong market. The major drive behind this is the focus on the mainland customers. The women look forward to whitening and ageing creams. Along with this, the men are also in search of quality skincare products. Most of the international brands like Sulwhasoo, Kiehl and L’Occitane have firmly placed their brands in the Hong Kong market (Trade.gov 2018). In terms of manufacturing, the industry features 70 establishments. Along with this, the industry supports 2060 import and export trade activities (Demangeot, Broderick and Craig 2015). The industry offers 640 employment opportunities to the candidates and looks after the import and export activities of skincare.
Hong Kong is one of the major destinations, where the cosmetic products are exported from Australia. Mention can be made of the Hong Kong Convention and Exhibition Centre, where 63241 visitors from the 119 countries and regions participated for exhibiting their wide ranging and differing products (Trade.gov 2018). Hong Kong also finds its place amidst the Shanghai International Expo Centre.
Sodashi can expand their business into the Hong Kong market. This is because of the moderate pricing method for the health and skincare products. This would help the middle class customers in possessing quality cosmetic products. Placement offers for the candidates can be beneficial in terms of enhancing the preconceived skills, expertise and knowledge. Along with this, the offers would add to the stock of employees into the research and development team. The companies needs to adopt effective means for recruitment and selection. Advertising the job vacancy to the candidates would enhance the relationship with the customers and clients.
Import and export activities are stable, which would help Sodashi personnel to expand their business into the international market. For this, the personnel need to indulge in partnership with the trade union members. This partnership would prove beneficial in terms of coping up wit the financial instabilities like high exchange rates, fluctuation in the prices of the raw materials and inflations. Along with this, the personnel needs to undertake premium pricing methods for engaging all the customers within the business transactions. Partnership needs to be string with the government. This is in terms of averting the tax tariffs in the import and export activities.
In terms of product also, Hong Kong market can prove effective. This is because of the whitening and the anti-ageing crème for the women customers. Along with this, the teenagers and the customers belonging to the age of 20-35 look towards the natural treatment for the skin problems. Selling whitening cream to the mainland customers would be beneficial for the personnel in terms of escalating the sales revenue and profit margin. Along with this, if social media marketing is adopted, Sodashi personnel would be able to add to the stock of customers. The newly launched products like the anti-ageing creams, face wash and whitening creams on the social networking sites and website would help the personnel to gain an insight into the approaches of the customers. Specifications of the products along with their prices would inform the customers about the latest trends of the company.
Skin whitening crèmes and face wash for men would expand the business of Sodashi, if they set up their business in the market of Hong Kong. However, they need to bear in mind the threat of substitutes from the contemporary brands like Sulwhasoo, Kiehl and L’Occitane. These brands have already established their business firmly in the markets of Hong Kong. Therefore, Sodashi personnel need to come up with something innovative and creative for attracting the customers towards the brand image. Some of the ways can be introducing combo offers along with the products for women. Along with this, check ups for men’s skin can be conducted for understanding their skin texture. This would assist in making products, suitable for men. Along with this, the brand personnel would achieve large scale customer satisfaction from the customers.
The cosmetic industry of Hong Kong supports 70 established brands. In this situation, setting up the brand might be difficult for Sodashi in terms of getting a firm establishment. This is in terms of emerging successful from the contemporary brands. Introducing special discounts, schemes and offers for the customers would help the brand to increase the trafficking of the audience towards the brand. Along with this, contests like sending selfies with the results of using the products would generate interest among the customers for using the products. Giving prizes to the best selfies would generate interest among the customers for exposing loyalty, trust and dependence on the services of the brand. Viewing it from the other perspective, too many established brands can be assistance for Sodashi in terms of establishing their brands in the competitive market. However, this is not case, as the established brands would intend to expand the scope and arena of their business by bringing innovation in their skincare products.
In terms of import and export activities, the Hong Kong market is stable. This would act assistance for Sodashi in terms of fulfilling the needs, demands and requirements of the customers. Social media would be the means of gaining awareness about the needs of the customers. However, the staffs need to maintain regularity in terms of accessing the websites and the social networking sites in terms of keeping a track of the items and cash flowing from the internal environment to the external one. This record would help the personnel in averting the arrears within the business transactions. Sending drafts about the performance to the managerial authorities would be beneficial in terms of preventing the illegal instances. The managers in return needs to be spontaneous in terms of approving the drafts. However, this is obviously after verifying the authenticity, reliability and compliance to the legal legislations.
Complying with the legislations is crucial if Sodashi intends to set up their business in the Hong Kong market. As a matter of specification, the brand needs to comply with the marketing legislations. Typical examples of this are Data Protection Act (1998), Consumer Protection Act among others. Adherence to these legislations would be helpful for Sodashi personnel to achieve support from the customers. Along with this, the personnel needs to organize meetings and discussions for evaluating the effectiveness, appropriateness and feasibility of the undertaken steps. In this, survey and feedback from the customers would be crucial in terms of bringing innovation within the skincare products.
From another perspective, Japanese market would be beneficial for Sodashi. This is because the customers here prefer natural products for taking care of their skin. This includes both men and women, who are very conscious of their health. Value for money is one of the other grounds, which would make Japanese market suitable for Sodashi. For this, the personnel need to come up with innovative ways and means for catering to the needs, demands and requirements of the customers. Countering this, business in the threshold of the Japanese market would be difficult in terms of the fluctuating market trends. Absence of stability would aggravate the complexities towards enhancing the productivity and penetrating into the international markets. Obscure market segmentation would act as an obstacle in terms of identifying the target audience. Moreover, lack of skilled and efficient personnel would make the production process difficult, compelling the personnel to suffer intense losses.
The placement offers of the cosmetics industry of Hong Kong would be beneficial for Sodashi. Effective use of this offer might help the brand personnel to enhance the parameter of the human resource management. However, the personnel need to ensure that the infrastructure is properly developed before penetrating into the international market. Herein lays the effectiveness of the training programs, which would enhance the preconceived skills, expertise and knowledge of the employees. Post training tests would be crucial in terms of estimating the capability of the staffs in applying the learnt skills in the execution of the allocated duties and responsibilities.
The research and development team need to indulge in seeking ways and means for bringing innovation in the production process. Laser treatment for gaining knowledge about the skin of the customers would prove suitable in terms of producing such products, which are efficient and flexible towards curing the skin problems. Evaluation needs to be conducted in terms of upgrading the standards and quality of the products and services.
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