VLCC's Global Expansion Strategy*

Abstract:

India-based slimming and beauty business company, Vandana Luthra Curls and Curves (VLCC), had an ambitious plan of expanding in the global market. VLCC learned from its first global expansion into the UAE in 2005. Based on that experience VLCC devised its strategies while expanding to other countries. VLCC exported its products to more than 45 countries. It opened new stores using the franchisee route as well as own stores or through joint ventures. In 2011, VLCC aggressively planned to strengthen its position in the existing foreign locations as well as add more destinations to its list. The company decided to invest US$15 million on its expansion plans in South Africa as well as to set up additional centers in India.

Issues: » Understand the issues and challenges in global expansion. » Understand why the initial practices of global expansion failed in Dubai. » Explore the ways in which how VLCC could able to expand globally. Introduction In June 2011, the India-based Vandana Luthra Curls and Curves (VLCC), slimming and beauty business company announced that it would enter Malaysia and Singapore as part of a US$15 million global expansion plan. VLCC had an ambitious plan for expansion in all its verticals and aimed to become a Rs. 14 billion firm by 2013. It decided to come up with an IPO between 2011 and 2012 to support the expansion plan. VLCC was founded in 1989 by Vandana Luthra, a housewife from a service-class background with no business links...

Questions for Discussion:

1. What are the factors to be considered while going global?

2. What are the challenges VLCC faced while expanding globally?

Key words:
International Management, Strategy, VLCC, Global expansion, market entry, marketing, pricing, wellness sector, preventive health, salon, fitness, slimming, beauty.

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.