Natio is a health and beauty products maker from Australia, and the company is seeking to expand its business. It has targeted countries in Southeast Asia for expansion as a result of the proximity of the region to Australia and the size of the market. This paper will explore the possibility of Natio entering one of the largest markets in the region -- the Philippines.
The cosmetics industry is a relatively lucrative industry, with competition split among hundreds of competitors. Many such competitors operate worldwide, but there are strong regional players in Asia as well. Consumers tend to be relatively brand loyal. The largest cosmetics industry in Asia is in Japan, worth 10 billion yen a year (Lloyd, 2004). Cosmetics are marketed in department stores, in drug stores/chemists and in standalone stores as well. The market globally is worth an estimated $170 billion USD, and the market in the Philippines is worth an estimated $2 billion per year, with an average growth rate of 7.7% (Personal Care, 2010). This makes the country one of the fastest-growing markets in Asia, despite a relatively high rate of poverty. Imports account for around $150 million of the market, as most cosmetics consumed in the Philippines are domestic (Austrade, 2010).
Natio was a family business for four generations, with a beauty care range launched in 1993. The company focuses on "plant-based, simple and gentle beauty treatments" and is one of the fastest-growing beauty brands in Australia (Natio.com.au,...
The company markets products in the skincare, colour, sun/hair/body, spa, wellness and male segments of the market (Ibid). The 1993 launch of beauty care has begun a journey for Natio, which has become a prominent Australian producer, guided by Max and Vivienne Ross, who were responsible for the 1993 relaunch. At present, the company sells its products only in Australia and New Zealand (Ibid).
The Philippine market is an attractive one for Natio. The Philippines accounts for 1.17% of the global market, but is one of the fastest-growing markets. Filipino women prefer simple, easy cosmetics of the type that Natio makes. In addition, they prefer total health and wellness. This benefits Natio because the company markets a fairly broad line of products, including skincare, spa and wellness. The Philippine market is concentrated among the nation's middle class and wealthy. This population is typically urban, and the country's urban populations are concentrated in a handful of key cities. For example, the metropolitan area of Manila/Quezon City has around 16 million people, some 18% of the nation's population (Manongdo, 2010). It is believed that Manila holds an even greater share of the country's wealth. As such, Natio could conceivably enter the Philippines in the Manila market only.
The Philippines is a large country by population, with a relatively low per capita GDP for the region at $3,300, ranked just 162nd in the world (CIA World Factbook, 2010). The country has…
Gmanews.tv/story/162925/DFA-Technicalities-blocking-RP-bid-for-OIC-observer-status Japan's ODA Disbursements to the Philippines. (2009, January). Retrieved August 2010, from Japanese Ministry of Foreign Affairs: http://www.mofa.go.jp/policy/oda/data/pdfs/philippines.pdf Philippines - Relations with Asian Neighbors. (2009, January). Retrieved August 2010, from U.S. Library of Congress: http://countrystudies.us/philippines/93.htm Backgound Note: The Philippines. (2010, April 19). Retrieved August 2010, from U.S. Department of State: http://www.state.gov/r/pa/ei/bgn/2794.htm Philippines. (2010, August 3). Retrieved August 2010, from CIA World Factbook: https://www.cia.gov/library/publications/the-world-factbook/geos/rp.html The Philippines and the United Nations. (2010, January). Retrieved August 2010,
In 1959, the year I was born, Carlos P. Garcia was the president of the Philippines. Garcia was anti-communist, which the Americans liked, but nevertheless he was strongly devoted to the nationalist cause. Another key way the United States influenced Philippine culture was through arts, literature, and entertainment. American television shows such as "Perry Mason" and "Rawhide" were being broadcast in the country. Popular American songs from 1959 such as
For example, in January 2001 President Macapagal-Arroyo occupied the presidency after a civilian coup, backed by the military, until elections took place in May 2004 (Orbeta 2003, p.8). The lack of population control, decreased access to educational opportunities, healthcare, and opportunities has been particularly "deleterious" in its effects upon the nation's resources of human capital (Orbeta 2003, p.12). Additionally, longstanding political corruption has resulted in the exploitation of the
Rate $132 $132 $132 $132 $132 $132 $132 $132 Two or three hour ride via private minivan or car available from MNL or from hotel to Batangas and short boat ride to Puerto Galera for a very nominal fee by U.S. standards (Exact fees unavailable.) This is standard for island-to-island transportation throughout the Philippine Islands, because the U.S. dollar goes very far there for local goods and services. Exact prices and distances vary depending on the order of islands you
Philippines Real Estate Over the last several years, the Philippine Islands has been going through a major transformation. Part of the reason for this, is because the country has become an area of focus for many firms that are looking to outsource jobs from other regions of the world. As, the nation known is known for: having an educated workforce and low labor costs. This has helped to increase the total
Moreover, they have been ignoring their public transportation system. Evidence of this can be seen with a study conducted by the Global Competitiveness Report of the World Economic Forum. They found that the Philippines has an aging infrastructure and the government is continuing to neglect these issues. As a result, they determined that it is considered to be mediocre in contrast with many countries that are rapidly developing. (Esplanda,