Abstract

The purpose of this paper is to research strategic innovation in the Chinese cosmetic industry. The constituents of
strategic innovation were analyzed from nineteen types of strategic innovation in the paper. With Exploratory
Factor Analysis, the result of this paper came up with the concept of strategic innovation for the cosmetics
industry in the Chinese market. Strategic innovation could be defined as: Strategic innovation is anything that
tends to create new market, by enhancing product or service value in order to disrupt competition.

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