Herborist on Their Next Step of International Expansion Essay

Herborist on Their Next Step of International Expansion - Essay Example Strategic Planning of global expansion of Herborist in the Russian market Foreign participation is increasing its share in the Russian market, and the personal care products which were imported in the past century is manufactured in the Russian territory as the companies are opening up their subsidiaries to grab the maximum opportunity in the Russian market. The consumer market is the key growth driver behind the growth in the Russian market. The large urban population base of the country is the factor that has led to such vast growth in the cosmetics and retail sector in the Russian market (Kumar and Steenkamp, 2013, pp.123-124). It is the ninth largest consumer market and is estimated to become the worlds fourth biggest and the Europe’s largest consumer economy by the end of 2020. The market has different income level consumer segments and comprises of sophisticated and changing consumer trends. The largest share of population belong to the elite class who spend lavishly and have exotic taste, this makes it a great opportunity for the foreign companies to directly export their products in the Russian market (Frey, 2004, pp.76-77). The cosmetics market has shown a sustained growth over the years in the Russian market and has not been impacted by the economic downturn of the country in 2008-09. There has been a considerable rise in the high quality product in the market with a 14% growth in the cosmetics and personal care market (Handlechner, 2008, pp. 45-46).