E-Business Application Report

This report presents a case study of Jurlique, an Australian beauty and cosmetics company, focusing on its challenges in the online retail sector. The report examines the current competitive landscape of the online retail market, highlighting the increasing competition and the abundance of choices available to consumers. Specific challenges faced by Jurlique, particularly in expanding into China and Hong Kong, are discussed, including market penetration difficulties and the impact of tourism trends. The report concludes with recommendations for Jurlique to address these challenges, suggesting strategies such as identifying key competitors, re-evaluating pricing strategies, and enhancing marketing and promotional efforts through online channels and social media.

Running head: E-BUSINESS APPLICATION
E-Business Application
Name of the Student
Name of the University
Author’s Note

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E-BUSINESS APPLICATION
Executive Summary
This report deals with the current scenario of the online retail sector. The Jurlique Company has
been taken as case study. The challenges faced by the company has been discussed. There are
recommendations provided for mitigating these challenges.

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E-BUSINESS APPLICATION
Table of Contents
Introduction......................................................................................................................................2
Overview of Jurlique.......................................................................................................................2
Current scenario...............................................................................................................................2
Challenges........................................................................................................................................2
Recommendation.............................................................................................................................3
Conclusion.......................................................................................................................................3
References........................................................................................................................................5

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E-BUSINESS APPLICATION
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

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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

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E-BUSINESS APPLICATION
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.

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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: http://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:
http://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.