Internationalization methods of cosmetics companies in Turkey: A descriptive study

In today's global environment internationalization is inevitable for many companies. Internationalized companies use different methods which differ in terms of risk encountered and rewards gained. Being one of the ancient industries, cosmetics industry is affected from international competition. There exists many well-known brands of Turkish cosmetics companies, and the demand for the products is growing internationally. In line with increasing demand for Turkish cosmetics products internationally, this study focuses on internationalization methods of selected cosmetics companies. Within this frame, the aim of the study is to determine and compare the internationalization methods of cosmetics companies. Based on secondary analysis of data from 20 cosmetics companies, the study is conducted as a descriptive research. As the findings indicate, all of 20 cosmetics companies prefer exporting, regardless of their size and product groups. Besides, according to the findings, most of the companies use direct exporting. Since internationalization is a key factor for the success in the industry, it was noticed that one of the companies use export method since its establishment. It was also found out that some companies use other internationalization methods which are franchising, contract manufacturing and foreign direct investment. The companies that are engaged in such more riskier internationalization methods are large-scaled and older companies. Furthermore, there exists differences in terms of foreign direct investment between Turkish and foreign companies. It was determined that foreign company preferred brownfield investment and acquired the shares of one of the well-known Turkish cosmetics company, whereas greenfield investment was preferred by Turkish company. Key Words: Internationalization, Internationalization Methods, Cosmetics