The possibility of launching luxury perfumery fragrance project ambrosia in saudi arabia, china, and the us

TOPIC THE POSSIBILITY OF LAUNCHING LUXURY PERFUMERY FRAGRANCE PROJECT AMBROSIA IN SAUDI ARABIA, CHINA, AND THE US ABSTRACT Australian based Fragrance Ambrosia is a manufacturer of natural cosmetics an. TOPIC: THE POSSIBILITY OF LAUNCHING LUXURY PERFUMERY FRAGRANCE PROJECT AMBROSIA IN SAUDI ARABIA, CHINA, AND THE USABSTRACTAustralianbased Fragrance Ambrosia is a manufacturer of natural cosmetics and oils. Along with orientations for participation in three significant international markets and the prerequisites, restrictions, and potential issues, the report on the project of the leading fragrance company Fragrance Ambrosia is presented. The report is divided into three stages. The first is an observation of the US, Saudi Arabia, and Chinese markets, advantages, and the overall economic situation in the three countries, allowing Fragrance Ambrosia to study specific concerns further and identify its solid elements. Then, there are many staffing considerations and marketing techniques for successfully entering and advertising the market, followed by suggested appropriate ways to form businesses and risk factors in the final stage.All three of these markets have much potential, but breaking into reliable and resilient markets is difficult. In order to enter markets that the perfumery industry predicts will experience future positive growth, Ambrosia will need to have determined and persuasive strategies as well as lessons learned from other brands in every way. Before hiring staff for international offices, Fragrance Ambrosia must have a professional work environment and employ the best management practices. Ambrosia must ensure an adequate supply of goods when opening new branches in Saudi Arabia, China, and the USA because if there is a phenomenon of outofstock or shortage of goods, it will leave customers with a negative impression. TABLE OF CONTENTSABSTRACTi1. INTRODUCTION12. BODY22.1. SAUDI ARABIA, CHINA AND USAS MARKETS22.2: STAFFING CONSIDERATIONS AND MARKETING STRATEGY IN THE FOREIGN MARKETS62.4. BUSINESS FORMS RISK FACTORS73. CONCLUSIONS84. RECOMMENDATION85. REFERENCE LIST10  1. INTRODUCTIONThe report on the project of the premier perfume company Fragrance Ambrosia is presented, along with the orientations for participation in three important international markets and the prerequisites, restrictions, and potential issues. Fragrance Ambrosia is a natural oil and cosmetics firm based in Australia that mainly sells in Australia and New Zealand. Currently, the organization is looking for a business opportunity abroad to expand its operations. Accelerating business growth is one of the most important benefits of international expansion. International market entry enables businesses to grow more quickly. By expanding the companys global reach, new audiences are exposed to its goods and services, which might encourage further growth(Nalbandyan, H., 2017). Gaining access to new markets is another aspect of international expansion. It makes sense for Ambrosia to expand the company overseas, given that it is a prosperous enterprise in the motherland. The company may be able to expand its customer base by opening up new markets(Delios, A., 2011).First of all, most American women believe that they must impress others to be hot in society, creating a solid need to spend money on appearances. Second, Saudi Arabia has one of the most influential markets in the world for mens skincare and perfume products, and men there place a high priority on dressing well and looking good to attract women. Finally, many Chinese consumers are now looking for more pure natural beauty products due to their increased awareness of the drawbacks of traditional cosmetics ingredients. Therefore, this is an excellent opportunity for Ambrosia to penetrate the market in these three countries. 2. BODY2.1. SAUDI ARABIA, CHINA AND USAS MARKETSSaudi Arabia MarketThe Middle Eastern Kingdom of Saudi Arabia is the secondlargest OPEC Member State and the 14th area largest nation, with a total area of around two million square kilometers. Over seven million people reside in the capital of Saudi Arabia, which has a population of about 35.5 million. Saudi Arabia has approximately 17% of the worlds proven petroleum reserves.Figure 1: The countries with the largest oil reserves For thousands of years, perfumery has been an integral part of Arab culture, and as Islam spread throughout the Arab world, its use also grew. Arabs and Persians made daylong journeys through the sweltering desert to trade priceless goods like wood and saffron. Traditional Arabian perfumes do not contain alcohol. According to PS Intelligence, the size of the Saudi Arabian fragrance market in 2022 was estimated to be 2,049.7 million, and from 2022 to 2030, it will expand at a CAGR of 6.1 percent.In 2021, luxury goods in Saudi Arabia accounted for about 80% of total revenue because Saudi Arabia, with its high levels of individual income and thriving oil and gas, banking, and financial sectors, has one of the fastestgrowing economies in the world. The nation is also experiencing rapid population growth, and todays most powerful driver of the soaring demand for highend fragrance goods is young people.Figure 2: Saudi Arabia fragrance market category breakdown, in value(2021) Chinese marketIn 1909, China opened its first consulate in Australia, and diplomatic ties were established in 1941. China and Australias relationship has developed significantly over time. Both nations are actively involved in various organizations, including APEC, the East Asia Summit, and the G20, in their economies, cultures, and politics(Beeson, 2017). China and the United States had the two largest economies in 2017 when measured in Purchasing Power Standards (PPS), with 16.4% and 16.3 percent, respectively. Saudi Arabia had the fourteenthlargest economy in comparison.Figure 3: Shares in world GDP in PPS in 2017 Any business that can execute a successful marketing plan will find the Chinese market to be a gold mine. According to a recent report, cheap Chinese perfume retailers are proliferating (with a combined market share of 20 percent). Still, no domestic brand has yet to seize control of this lucrative sector and position itself as the top dog.

TOPIC: THE POSSIBILITY OF LAUNCHING LUXURY PERFUMERY FRAGRANCE PROJECT AMBROSIA IN SAUDI ARABIA, CHINA, AND THE US

ABSTRACT

Australian-based Fragrance Ambrosia is a manufacturer of natural cosmetics and oils Along with orientations for participation in three significant international markets and the prerequisites, restrictions, and potential issues, the report on the project of the leading fragrance company "Fragrance Ambrosia" is presented The report is divided into three stages The first is an observation of the US, Saudi Arabia, and Chinese markets, advantages, and the overall economic situation in the three countries, allowing Fragrance Ambrosia to study specific concerns further and identify its solid elements Then, there are many staffing considerations and marketing techniques for successfully entering and advertising the market, followed by suggested appropriate ways to form businesses and risk factors in the final stage

All three of these markets have much potential, but breaking into reliable and resilient markets is difficult In order to enter markets that the perfumery industry predicts will experience future positive growth, Ambrosia will need to have determined and persuasive strategies as well as lessons learned from other brands in every way Before hiring staff for international offices, Fragrance Ambrosia must have a professional work environment and employ the best management practices Ambrosia must ensure an adequate supply of goods when opening new branches in Saudi Arabia, China, and the USA because if there is a phenomenon of out-of-stock or shortage of goods, it will leave customers with a negative impression

TABLE OF CONTENTS

ABSTRACT i

1 INTRODUCTION 1

2 BODY 2

2.1 SAUDI ARABIA, CHINA AND USA'S MARKETS 2

2.2: STAFFING CONSIDERATIONS AND MARKETING STRATEGY IN THE FOREIGN MARKETS 6

2.4 BUSINESS FORMS & RISK FACTORS 7

3 CONCLUSIONS 8

4 RECOMMENDATION 8

5 REFERENCE LIST 10

1 INTRODUCTION

The report on the project of the premier perfume company "Fragrance Ambrosia" is presented, along with the orientations for participation in three important international markets and the prerequisites, restrictions, and potential issues Fragrance Ambrosia is a natural oil and cosmetics firm based in Australia that mainly sells in Australia and New Zealand Currently, the organization is looking for a business opportunity abroad to expand its operations Accelerating business growth is one of the most important benefits of international expansion International market entry enables businesses to grow more quickly By expanding the company's global reach, new audiences are exposed to its goods and services, which might encourage further growth(Nalbandyan, H., 2017) Gaining access to new markets is another aspect of international expansion It makes sense for Ambrosia to expand the company overseas, given that it is a prosperous enterprise in the motherland The company may be able to expand its customer base by opening up new markets(Delios, A., 2011)

First of all, most American women believe that they must impress others to be

"hot" in society, creating a solid need to spend money on appearances Second, Saudi Arabia has one of the most influential markets in the world for men's skincare and perfume products, and men there place a high priority on dressing well and looking good to attract women Finally, many Chinese consumers are now looking for more pure natural beauty products due to their increased awareness of the drawbacks of traditional cosmetics ingredients Therefore, this is an excellent opportunity for Ambrosia to penetrate the market in these three countries

2 BODY 2.1 SAUDI ARABIA, CHINA AND USA'S MARKETS

Saudi Arabia Market

The Middle Eastern Kingdom of Saudi Arabia is the second-largest OPEC Member State and the 14th- area largest nation, with a total area of around two million square kilometers Over seven million people reside in the capital of Saudi Arabia, which has a population of about 35.5 million Saudi Arabia has approximately 17% of the world's proven petroleum reserves

Figure 1: The countries with the largest oil reserves

<Source: Bates A, 2022> For thousands of years, perfumery has been an integral part of Arab culture, and as Islam spread throughout the Arab world, its use also grew Arabs and Persians made daylong journeys through the sweltering desert to trade priceless goods like wood and saffron Traditional Arabian perfumes do not contain alcohol According to P&S Intelligence, the size of the Saudi Arabian fragrance market in 2022 was estimated to be

$2,049.7 million, and from 2022 to 2030, it will expand at a CAGR of 6.1 percent

In 2021, luxury goods in Saudi Arabia accounted for about 80% of total revenue because Saudi Arabia, with its high levels of individual income and thriving oil and gas, banking, and financial sectors, has one of the fastest-growing economies in the world The

nation is also experiencing rapid population growth, and today's most powerful driver of the soaring demand for high-end fragrance goods is young people

Figure 2: Saudi Arabia fragrance market category breakdown, in value(2021)

<Source: P&S Intelligence>

Chinese market

In 1909, China opened its first consulate in Australia, and diplomatic ties were established in 1941 China and Australia's relationship has developed significantly over time Both nations are actively involved in various organizations, including APEC, the East Asia Summit, and the G20, in their economies, cultures, and politics(Beeson, 2017)

China and the United States had the two largest economies in 2017 when measured

in Purchasing Power Standards (PPS), with 16.4% and 16.3 percent, respectively Saudi Arabia had the fourteenth-largest economy in comparison

Figure 3: Shares in world GDP in PPS in 2017

Any business that can execute a successful marketing plan will find the Chinese market to be a gold mine According to a recent report, cheap Chinese perfume retailers are

proliferating (with a combined market share of 20 percent) Still, no domestic brand has yet

to seize control of this lucrative sector and position itself as the top dog

Figure 4: Estimated market size of fragrance product distribution industry in China(2014-2024)

<Source: Statista 2021> The market increased 48.2% between 2014 and 2018, and it is anticipated that the annual retail sales of fragrances will increase from $1.18 billion in 2018 to $1.81 billion in

2023 (Ecommerce China, 2022) Despite having 1 percent of the global perfume market, China has 18 percent of the world's population Due to this enormous gap, perfume companies are now flocking into the Chinese market

According to Snijder, R., known international brands appear to be more well-liked than domestic fragrances, and foreign companies' entry barriers in raw materials, craft, and even global marketing make it difficult for domestic rivals to succeed Regular high-ranking positions are not quickly overturned This sizable market, however, is worth entering and breaking into despite its many opportunities and difficulties

US Market

Australia and the United States have an unmatched breadth, depth, and length of relationship characterized by a genuine cultural affinity and a collaborative spirit The current relationship between the two nations spans a variety of fields of endeavor,

including cooperation in the areas of security and defense, extensive trade and investment ties that support both Australian and American jobs, cultural exchanges, research, development, sporting rivalry and tourism( Rollo, S., 2018) The American market will undoubtedly be challenging for any new brand, including Australian exporters Revenue for the Fragrances segment is projected to reach US$8.15 billion in 2022 using current exchange rates and considering the market effects of the Russia-Ukraine war

Figure 5: The US fragrance revenue(2014-2026)

<Source: Statista> According to population statistics, US$24.33 in revenue is expected per person in

2022, and non-luxury products will account for 58 percent of Fragrances segment sales ( Statista, 2022) This will present a challenge for upscale companies like Ambrosia

Brands with a notable reputation in the perfume industry include Creed (UK), Roja Dove (France), Roja Dove (UK), House of Sillage (France), Bulgari Parfums (Switzerland), Krigler (France), and Cacharel (France) Pacific Rock Moss Parfum, Blue Cypress Parfum, and Desert Rosewood Parfum are a few Australian brands that are available Still, they are considerably less expensive than brands from the UK and France Although there is a slight price advantage, it is not easy to compete on trademarks

2.2: STAFFING CONSIDERATIONS AND MARKETING STRATEGY IN THE FOREIGN MARKETS

Staffing considerations

Program support and system characteristics, such as broader organizational factors, particular practices and procedures, and staffing considerations important to fostering program success, have an impact on program success (Hunter, P., 2017)

A brand must have solid and persuasive strategies and lessons learned from other brands in every way to enter markets that the perfumery industry predicts will experience future growth This will allow the brand to meet the challenges quickly ahead Ambrosia branches will hire reputable managers in those nations and receive cultural sensitivity training in the nation and state to which they will be delegated, particularly in culturally developed markets like China and Saudi Arabia Local employees will be used because they are well-communicated and understand the culture Since Ambrosia perfume is a high-end product line, all employees will receive thorough training in perfume samples and how to greet and deal with customers The company should also get suggestions from other Australian business owners on making employees want to work for Ambrosia’s organizations

Marketing strategy

Businesses today must engage in fierce competition to establish their brand There are numerous competing businesses; if one brand purposefully ignores the promotion of perfume products, it may go unnoticed forever (Dementieva, 2021) Marketing has also supported higher product sales (Zhang, 2015) Ambrosia must therefore advertise its fragrances to grow its business

Customer Survey

A survey is necessary as the first step in bringing Ambrosia perfume to market In this instance, the company should conduct surveys offline and online in Saudi Arabian, Chinese, and American malls This aids in identifying the client's preferred fragrances See what appeals to consumers of perfume the most We can only provide the right products in this way

Free Trial Samples in China And USA Market

The truth is that everyone enjoys receiving gifts, especially ones that are entirely free Every time a customer purchased after the company opened branches in China And

USA, it was able to give them a sample of a new perfume, giving them more options for their collection and encouraging them to return to the store

Limited perfume production exclusively for Saudi Arabia

Something tends to lose value when it becomes overly familiar Ambrosia should release limited fragrances once or twice a year for this market The brand's sophistication and distinctive qualities will impress customers who buy perfume

2.4 BUSINESS FORMS & RISK FACTORS

Business form

If it is profitable to open additional branches abroad, Ambrosia must properly register the company It is crucial to remember that each legal system has unique legal and tax ramifications in each nation (Klymentiev, M., 2014) Ambrosia should work with business consultants so they can offer qualified advice on business paperwork and help her choose a suitable location for the enterprise A bustling marketplace or storefront can be a good location for a site, but the cost of good locations may be somewhat high

Moreover, finding the ideal perfume can be challenging for every customer because Ambrosia offers various perfume products with different designs, costs, and scents Therefore, Fragrance Ambrosia should choose an efficient online sales channel, such as Facebook, to sell on Shopee, Ladada, and Amazon besides conducting business by opening brick and mortar stores

Risk Factor

Purchasers must provide information to the shipping service about the origin and specific condition of the liquid when sending supplies because it is a delicate item that should be treated with care (Artico, 2015) This is especially true when sending items internationally or via timed express delivery Producers and sellers box the majority of delicate items Moreover, when importing products, it is impossible to avoid collisions during transportation, especially when traveling a long distance, so the manufacturer's packaging stage does not guarantee the safety of the product

3 CONCLUSIONS

In summary, the report simulates three markets of Saudi Arabia, China, and the US

in recent years through the economy in general and especially the perfume industry and cultural environments All three of these markets have much potential, but with many different brands, it is not easy to penetrate solid and long-lasting markets

Ambrosia must have decisive and persuasive strategies and lessons learned from other brands in every way to enter markets that the perfumery industry predicts will experience future solid growth As a result, the company can successfully navigate its upcoming challenges Ambrosia branch managers should be hired in Saudi Arabia, China,

or the US Local employees will be used because they can communicate and understand the culture more Since Ambrosia perfume is a high-end product line, all employees will receive thorough training in perfume samples and how to greet and engage with clients Additionally, managers from Australia will receive cultural sensitivity training for the nation and state they will be transferred to, particularly in culturally important markets like China and Saudi Arabia

Moreover, it is crucial to remember that each legal structure has unique legal and tax ramifications in every nation Ambrosia should contact consultants or business advisors for qualified advice on business forms

4 RECOMMENDATION

To avoid risks and make good use of these three complex but potential markets, besides many measures, Ambrosia should pay special attention to three-party commercial contracts, including intermediaries or a contracted partner, then sell to a third party as a consignee Because dealing with problems related to this contract is difficult, there may be

a deadlock due to the intervention to handle issues with local legal regulations

When opening new branches in Saudi Arabia, China and USA, Ambrosia needs to ensure adequate supply because if there is a phenomenon of out-of-stock or shortage of goods, it will leave a bad impression on consumers For goods with high-profit margins and high demand, it is feasible to consider air freight when air shipment prices are very competitive in the context of the COVID-19 pandemic

The eye-catching images and articles catch customers' attention who have not yet assessed the product quality Therefore, the company may consider creating unique designs for each market in the campaign People still do a lot of their shopping online because of