Global Cosmetic Industries
In the world of globalization with unstable economic situation most of the investors looking for more stable market place to invest for long term. Selecting an appropriate market place with the concern of risk associate with it is a vital task for any investor. Global Cultural Revolution makes all cultural consumers to move into standardized product rather then using local products. Europe and America already achieved a well structure cosmetics and toiletries market where competition is quite high on the other hand emerging market like India and china has a huge base of consumer for international cosmetics and toiletries products. Now a day’s women and man from Asia pacific are more interest in buying global brands for their health and beauty products. Cosmetics and toiletries market is a growth oriented market for which emerging market is the right place to go.
In 2003, the world market for cosmetics and toiletries was valued at US$201 billion, up 4.8% from 2002. Hair care maintains its global sales amounting to US$42.4 billion in 2003. (Briney, 2004b).
According to Global Cosmetic Industry report (August, 2004) the big three multinationals Procter & Gamble, L'Oreal and Unilever all have played a critical role in developing the cosmetics and toiletries industry in Asia-Pacific, especially in the emerging markets of China, India and Indonesia.
In 2005, Asia-Pacific cosmetic and toiletries market saw positive economic indicators and its highest recorded growth in five years. Manufacturers have been focusing on the opportunities offered by the BRIC countries (Brazil, Russia, India and China).
UK has a well structured consumer and market place for cosmetics and toiletries. At the movement cosmetic and toiletries are on the top of product growth cycle and consumers are spending on expensive products.
In UK Competition is fierce in both manufacturing and retailing the premium and mass markets. Companies spend to protecting their upmarket brands. The growing involvement of grocery chains in non-food sectors is continuing to exert downward pressure on prices of mass-market cosmetics as they tend to be centred on seasonal sales.
As a result a Considerable investment is necessary to bring new cosmetics and toiletries products to the market and to maintain their high profile, and the failure rate of new cosmetic and toiletries products is high in such a competitive market.
Householders have been hit by recent crises in interest rates and increased household bills, are likely to be cutting back on spending, particularly on products of luxury market.
Recent recession is making consumer to spend less for health and beauty products. For this reason new investment in this sector is a question to consider. Manufacturers are increasingly looking to the emerging markets of Brazil, Russia, India, Mexico and China for expansion plans.
In contrast to UK, China’s cosmetics market, the second largest in Asia Pacific after Japan, is witnessing increased demand due to improving lifestyles and rising disposable income of the Chinese population.
China has a large populace in the age group of 15 to 59 years, which is considered more fashion-conscious who have diversified needs. Consumer of china prefers their won beauty product than foreign brand.
In China, for high duty the customs add 60% to the cost of goods, and they Compare western countries and China on cosmetics preference. Fake Goods is another problem for multinationals in china, which damage their brand image and difficult to distinguish between originals and fake one.
However, the level of development of the market is still very low. Although several domestic firms are present, foreign companies dominate the market. L’Oreal has the largest market share in China. As a result china already has a fierce competition.
Indian cosmetics and toiletries manufacturing Industry, 2010 is valuable for anyone...
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