Italian Cosmetic Enterprises Exporting to China: Exploring Companies' Performance through Global Value Chain Analysis

The thesis investigates the market strategies employed by Italian cosmetic enterprises exporting to China, with a particular focus on cosmetic GVCs. Specifically, the thesis aims to answer two main research questions: first, what strategies have enabled Italian cosmetic companies to establish a presence in China, and second, what is the structure of the GVCs in which these companies participate. The examination of GVCs is essential in understanding where, when, and how value is added throughout the development, production, delivery, and post-sales processes of cosmetics. To acquire a comprehensive understanding of the cosmetic industry and its key players, the thesis collects quantitative data on global and national cosmetics production, exports, imports, and consumption and carefully examines the unique characteristics of cosmetic GVCs in Italy and China. Additionally, qualitative data are obtained through interviews with representatives from two prominent Italian cosmetic companies that export to China, which provide valuable insights into the Italian cosmetic industry and its major players, as well as a better understanding of the regulatory, cultural, and market-specific factors that shape the Chinese cosmetic market, shedding light on the challenges and opportunities encountered by Italian firms. By investigating the structure of the two companies’ GVCs when exporting to China, the thesis identifies the elements that contribute the most to the companies’ success in the Chinese market, including the significance of establishing a strong brand identity built around principles such as “Made in Italy” and sustainability, establishing strategic partnerships with Chinese entities to navigate regulatory complexities, and adopting a multi-channel distribution strategy to maximize market penetration. The thesis’s results can benefit Italian cosmetic companies seeking a deeper understanding of China’s cosmetic market dynamics, as well as Chinese entrepreneurs interested in forming partnerships with Italian companies.