Cultural and institutional determinants in international marketing channel adaptation: the case of Vichy Cosmetics in China

There is a long-lasting debate on whether the international marketing mix should be standardised or adapted. The case of Vichy Cosmetics' market entry, expansion, and subsequent retail channel switch in China shows that when marketing across border: (1) even core elements of channels might need to be adapted to the institutional and cultural characteristics of the host market; (2) adhering to a general management theory without considering cultural and institutional differences of the host countries may lead firms to fail in foreign markets; (3) a firm's over-confidence in their international experience decreases marketers' awareness of the market differences, exposing the firm to additional risk; (4) caution is required in deciding which cultural constructs to include in assessing cultural distance. This study provides a clearer picture about the challenges faced by MNCs in adapting marketing strategies in a dynamic emerging market because of cultural and institutional differences.