When we talk about companies cutting back their activities in times of global recession, its difficult to even consider to enter new markets. But I guess its more about tapping an opportunity that they can see at a certain point in time.
It has recently come to my knowledge that Garnier, the famous international brand has been launched in Pakistan. Though I was quite aware of the presence of this brand, but it came as a surprise to me to think why have they launched the product in such a crunch time of recession. This got me curious and a little bit of research on the internet and through my personal contacts helped me satisfy my hunger to understand this curiosity.
Garnier is a product of another famous global cosmetics company known as L'Oreal, which has been officially operating in Pakistan since about six to eight months. Garnier has always been a known brand in Pakistan as its products were available in the country as imported items at various stores. Even if someone has not seen the product available in the stores they have been visiting, they have been over exposed to foreign advertising on TV channels and Garnier might have been one of those ads.
I'm not sure if this is a good move, that is, launching a product in times of recession but the company must have done its own research in this regard. I believe that this might turn out to be a good strategy, because it seems that Garnier is going to fight for its share from the imported Garnier products only at this point in time.
It might be considered as cannibalization in global terms, but it sure is an interesting move in the local market. garnier