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Online Retail Market Of Jurlique Company

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Question:

Discuss about the Online Retail Market Of Jurlique Company.
 
 

Answer:

Introduction

This report deals with a case study related to the market of the retail store. This report focuses on the current market scenario of the company. The variety of beauty and cosmetics products are sold by the company in the market. The challenges faced by the retail sector in the market has been focused in the report. Some recommendations are provided in the report to mitigate these challenges.

Overview of Jurlique

Jurlique International Pty Ltd. is a leader in beauty and cosmetics products. It is an Australian company established in 1985 by Dr Jurgen Klein and his wife Ulrike. In 2002, this company was purchased by Kerry Packer for $25 million (Jurlique.com 2017). The company has been a giant in the retail sector of the country in beauty and cosmetic field. The branches of the company is situated in 19 countries all over the world.

Current scenario

The current situation of the company has been excellent in the market. The sales of the beauty products has risen to 4.5% from 2014 to 2015 (Jurlique 2017). The company has been expanding in different countries including China and Hong Kong. The retail business of the company has been at its peak in 2015-2016. The company has able to draw the attention of the customers in the market by providing high quality beauty products (Gallino and Moreno 2014)

Challenges

The retail market has been increasing with the integration of the online store. There has been around $1.2 trillion e-commerce sales all over the world. On the other hand, there has been some challenges faced by these online stores in the market.

Competition

 There has been huge competition over the internet regarding online sales of products (Ostapenko 2015). Many companies are operating their online retail business that creates a lot of competition.

Varieties of choices

There are variety of choices for the customer online. This makes difficult to maintain the customer loyalty over the internet (Blázquez 2014). The customer looks for best quality at low price. There are many companies providing same offer to the customers.

In this case, Jurlique Company has faced challenges in expanding business in China and Hong Kong. There has been huge growth in the cosmetic market of China (Insley and Nunan 2014). Therefore, market penetration in the market has been challenging for the company (Bhatnagar and Syam 2014). The drop in the tourism industry in Hong Kong is creating challenge.

Recommendation

The company needs to identify its key competitors in the market and focus on strategies they are applying for growing in the market. The company have to restate its pricing strategy of products. The company needs to develop its marketing and promotional strategies by the use of internet. The company needs to use the online social media marketing to increase the sales of the products.

Conclusion

It can be concluded that the online retail sector has been growing sector in the market. The Jurlique Company has been continuously growing in the market in beauty and cosmetics sector. The current situation of the company has been good in the market. There are some challenges faced by company during expanding. The recommendation have helped in mitigating these challenges.

 

References

Bhatnagar, A. and Syam, S.S., 2014. Allocating a hybrid retailer's assortment across retail stores: Bricks-and-mortar vs online. Journal of Business Research, 67(6), pp.1293-1302.

Blázquez, M., 2014. Fashion shopping in multichannel retail: The role of technology in enhancing the customer experience. International Journal of Electronic Commerce, 18(4), pp.97-116.

Gallino, S. and Moreno, A., 2014. Integration of online and offline channels in retail: The impact of sharing reliable inventory availability information. Management Science, 60(6), pp.1434-1451.

Insley, V. and Nunan, D., 2014. Gamification and the online retail experience. International Journal of Retail & Distribution Management, 42(5), pp.340-351.

Jurlique (2017). [online] Available at: https://ir.po-holdings.co.jp/news_en/news/news-2400335700257608319/main/0/link/CR2015_EN.pdf [Accessed 23 Sep. 2017].

Jurlique.com. (2017). Jurlique | Natural Skin Care Products | Jurlique. [online] Available at: https://www.jurlique.com/ [Accessed 23 Sep. 2017].

Ostapenko, N., 2015. Expanding Inoherb in China: No Love Without Herbology (A Case of Repositioning a Domestic Cosmetics Brand). Journal of Marketing Development and Competitiveness, 9(1), p.11.

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