Cosmetics Industry

Powerful Essays
MGMT 4842
Group Case 2

Retail Specialty Cosmetics
Industry Analysis

March 19, 2012

TABLE OF CONTENTS Industry Type Degree of Industry Concentration Opportunities and Threats Opportunities Threats Past and Projected Market Growth Rate Competitive Analysis New Entrants Substitutes Rivalry within the Industry Suppliers Buyers Driving Forces Analysis Industry Key Success Factors Financial Analysis Works Cited

Retail Specialty Cosmetics Industry Analysis

Industry Type, SIC and NAICS code

The Cosmetics Industry involves providing the consumer a product that will give them the ability to improve the appearance or scent of the human body. In general we usually just thing of cosmetics as “make-up” but in reality the term is used to describe a large and diverse group of products and “make-up” is just one of them. Cosmetic products include any kind of skin-care items, body and facial lotions, deodorant’s, perfumes, colognes, and even colored contact lenses. These products can be broken down into two categories called decorative cosmetics and care cosmetics. Decorative cosmetics are used to enhance ones look while the purpose of care cosmetics is to help take care of your body. Products like these are used and needed for everyday life so it is easy to see why companies such as L'Oreal, Avon, and Johnson and Johnson have become very profitable. In times of economic distress, cosmetics and other non-essential products considered a luxury will experience financial weakness.

Even through the declining economy the top companies in this industry have still been able to sell their products at a high level, they actually have been able to increase their sales profits every year over the past three years. Cosmetic products can be found at a wide variety of retailers. Common retail stores will not have the same selection as specialty stores but they will



Cited: "About Sephora." Sephora. Web. 11 Mar. 2012. <http://sephora.com/help/about_sephora.jhtml;jsessionid=L131UEEN4APVSCV0KQLRXCQ>. Beauty, Cosmetics & Fragrance Stores in the US. Rep. no. 44612. IBIS World, Nov. 2011. Web. 11 Mar. 2012. <http://clients.ibisworld.com.jproxy.lib.ecu.edu/industryus/industryoutlook.aspx?indid=1055>. "Company Overview." L 'Oreal USA. L 'Oreal Group. Web. 12 Mar. 2012. <http://www.lorealusa.com/_en/_us/html/our-company/L-Oreal-USA-at-a-glance.aspx>. "Cosmetics." U S Food and Drug Administration Home Page. Web. 13 Mar. 2012. <http://www.fda.gov/Cosmetics/default.htm>. Cosmetic & Beauty Products Manufacturing in the US. Rep. no. 32562. IBIS World, Mar. 2012. Web. 11 Mar. 2012. <http://clients.ibisworld.com.jproxy.lib.ecu.edu/industryus/default.aspx?indid=499>. Distributor, The. "Top 100 Cosmetic Manufacturers." Scribd. Web. 11 Mar. 2012. <http://www.scribd.com/doc/3027409/Top-100-Cosmetic-Manufacturers>. "The Estee Lauder Company History." Funding Universe. Web. 12 Mar. 2012. <http://www.fundinguniverse.com/company-histories/The-Esteacute;e-Lauder-Companies-Inc-Company-History.html>. "The Estee Lauder Companies Inc. to Acquire Remaining Equity Interest in M.A.C." PR Newswire. Web. 13 Mar. 2012. <http://www2.prnewswire.com/cgi-bin/stories.pl?ACCT=104>. "L 'oreal Paris True Match Super Blendable Liquid Makeup” CVS/pharmacy. Web. 12 Mar. 2012. <http://www.cvs.com/CVSApp/catalog/shop_product_detail.jsp?filterBy=>. "L 'Oreal Paris True Match Super-Blendable Liquid Make-Up." L 'Oreal Paris. L 'Oreal Group. Web. 12 Mar. 2012. <http://www.lorealparisusa.com/_us/_en/default.aspx>. "L 'Oreal Paris True Match Super-Blendable Liquid Make-Up." Walmart.com. Web. 12 Mar. 2012. <http://www.walmart.com/ip/L-Oreal-True-Match-Super-Blendable-Neutral-N4-Buff-Beige-Makeup-1-Fl-Oz/11965329>. Martell, James. "TheHistoryOf.net." The History of Cosmetics â A Vanity Fair. Vanity Fair, 11 June 2001. Web. 13 Mar. 2012. <http://www.thehistoryof.net/the-history-of-cosmetics.html>. OTC Pharmaceuticals in the United States. Marketline Industry Profile, Feb. 2012. PDF. Panteva, Nikoleta. "IBISWorld Industry Report 44612 Beauty, Cosmetics & Fragance Stores in the US." IBISWorld. Nov. 2011. Web. Mar. 2012. <http://clients.ibisworld.com.jproxy.lib.ecu.edu/industryus/default.aspx?indid=1055>. Rubin, Courtney. "Smashbox Beauty Cosmetics Snapped Up by Estee Lauder." Inc.com. 18 May 2010. Web. 15 Mar. 2012. <http://www.inc.com/news/articles/2010/05/estee-lauder-acquires-smashbox.html>. SWOT Analysis of the Cosmetics Industry. Working paper. 13 Feb. 2008. Web. 13 Mar. 2012. <http://ivythesis.typepad.com/term_paper_topics/2008/02/cosmetics-case.html>.

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