Strategy of Boxycharm to Enter the China Market

Strategy of Boxycharm to Enter the China Market Student’s Name Institutional Affiliation Strategy of Boxycharm to Enter the China Market Boxycharm is among the most famous beauty subscription boxes in the market. It offers monthly subscription services that include sending a full-size brand name beauty product to the clients for $21 every month (Parcells, 2018). A Boxycharm box is valued at more than $100 in the US, and free shipping is offered. The subscription also allows the client access to the Boxycharm’s charmer community, an exclusive community, where tutorials on how to use the Boxycharm products are offered. It also features a reward point system where the client can redeem their points for favorite beauty products. It was founded in 2013 by Joe Martin, who serves as the CEO of the company, to bring together and engage various beauty brands and consumers. He was seeking to fill a gap that he had identified between beauty companies and subscription services. Headquartered in Pembroke Pines, Florida, the private company employs close to 200 employees (Parcells, 2018). It deals with beauty as well as personal accessories. When created, the company was the first beauty box committed to the delivery of all beauty products, allowing the clients to have a complete experience and hence make better decisions regarding their purchasing options. Boxycharm was also the first company to pay beauty brands the full cost of goods and hence enable them to deliver the best products to the clients without any extra costs. The main competitor is Birchbox. Unlike other subscription services that only offer mini or deluxe samples, Boxycharm delivers 4-5 full-size products every month. The products provided are from a variety of prestigious providers of beauty products such as Tatcha and Tarte. The Chinese Market Understanding a target market is paramount before venturing into it. This is informed by the fact that differences in social and cultural values may greatly affect the uptake of the organization’s product. Therefore, before recommending strategies that Boxycharm should apply while venturing into the Chinese market, this paper will first analyze the Chinese market. As expected, the Chinese population differs greatly from the American population. Resultantly, the company will be entering unfamiliar territories and hence a deep understanding of the values, tastes and preferences of the Chinese consumers are critical. The lucrativeness of the Chinese market to any savvy business seeking expansion is undeniable. However, breaking into the market can be difficult due to changing consumer and market demands. Most Chinese have an online presence. The country is also experiencing a gradual death of traditional and offline media. China boasts the largest internet penetration for a developing country in the world. It is estimated that more than 500 million smartphones are used in China. Moreover, the country is committed to improving its online infrastructure and connectivity. These dynamics offers a great opportunity for Boxycharm. Since the company deals with online subscriptions, the huge online presence is bound to fuel its growth and grow its presence in the Chinese market. Chinese consumers also largely engage online. It is estimate...