Ikea thailand

This is due to the fact that L’Oreal products in Thailand aren’t making enough money to pay for marketing expenses, which the company needs to improve their marketing strategies so they could have more media support such as TV commercials and print media In order to be able to compete with similar companies in Thailand since they have almost zero visibility according to Roberto Schulz head of the consumer department at L’Oreal Thailand, also the company ant ask for any extra budget since It has to come from Paris and according to Schulz “management In Paris Is sick and tired of sending any extra money. Another major problem for L’Oreal Thailand Is semi-consignment since the company Is Issuing Invoices and sending products to department stores and not receiving any payments until the products are sold which causes “Involving costumers for sales that have not materialized at the consumer level” according to Chris Martin the managing director of L’Oreal Thailand, so the company is overstocking at products and invoicing them to apartment stores without being sure if consumers will actually buy these products.

And on top of that, the entire market of Thailand suffered because of the 1997 Asian crisis which lead to dull market, recession and decreased the purchase ability of the consumers which showed in the companies profits including L’Oreal which had an overstock of products.

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Competition for L’Oreal Thailand: Lorena Thailand has many international competitors such as Lever and P&G as well as local competitors such as Better Way and Skyline Unity which have the support of he government of Thailand, which is protective of the local companies by increasing taxes on importing beauty products which are among the highest in the world ranging between 20% and 75%, the government also made strict regulations for cosmetics and created barriers for L’Oreal and other foreign companies.

The government of Thailand also hosts an event for Thai beauty products called “Thailand health and beauty show,” to increase their fame since it’s a main income for the country, and that event is attended by professionals and buyers from around the oral, In addition to that local companies don’t have importing expenses and other expenses that international companies such as L’Oreal has.

Also some competitor companies of L’Oreal Thailand have specific products for Asian women and that makes their products more likely to be sold In Thailand which Is a thing L’Oreal lacks, and competitor companies have more media coverage since companies Like Lever are spending ten times and more than L’Oreal Thailand are spending on marketing through media.

L’Oreal Thailand has no real competitive L’Oreal challenges in Thailand market: aren’t making enough money to pay for marketing expenses, which the company such as TV commercials and print media in order to be able to compete with similar Sashimi head of the consumer department at L’Oreal Thailand, also the company can’t ask for any extra budget since it has to come from Paris and according to Sashimi “management in Paris is sick and tired of sending any extra money. Another major problem for L’Oreal Thailand is semi-consignment since the company is issuing invoices and sending products to department stores and not receiving any payments until the products are sold which causes “invoicing costumers for sales that have not of L’Oreal Thailand, so the company is overstocking at products and invoicing them to L’Oreal Thailand has many international competitors such as Lever and P&G as well world, in addition to that local companies don’t have importing expenses and other makes their products more likely to be sold in Thailand.