Presentation of the market
The beauty industry represent 160$ billion per year.
Main product are: make -up, skin/hair care/perfume/cosmetic surgery/health club The leader company is l'Oreal
There are 5 pioner that are establish since a long time around 1900.==> means that the beauty industry is depending and it's history , woment can rely on those company.
what affect the beauty market?
the number of new entrant==> especially the luxury brand that create a branch of beaurty product
the entrance also of the two giant of consumer good: unilever/ P&G are developping the beauty departemt (with important financial ressource) the big retail store (such as Wal-Mart) wants only to deal with the leader supplier and not smaller brand)==> small brand are hurting Big 5 incumbent focus on the uniqueness of their product ( number of patent==>can answer to all the demand and can be copy// or the efficiency of their product)
it's a really competitive market
But if the beauty market increase by 7 % it's also due to not the traditional product but: cosmetic surgery and well-being product. ==>surgery : every body can afford a surgery today 20 billion business + 220% in 10 years ==>well-being: with developpement of spa, salon that use natural product ( environemental/ecology)
this is the future of he beauty industry.
Why do incumbent have long staying power in this industry?
5 incumbent: L'Oreal, Shiseido, Nivea, Elisabeth Arden, Max Factor Question of time: in this industry the history of the company is important because it prove the realibility of the company, all those company are present in the market since around 1900, more than 100 year of tenicity, patent==> brand recognition market of habits: women espacially are use to one product one brand, it's a market with an important loyaltie aspect. if their i a result they will not change brand. financial capacity==> innovation, reinvent continiously. possibility...