industry analysis of cosmetics

Good Essays
Topics: Cosmetics
OPPORTUINITY OR THREAT
DEMOGRAPIC
(O) Men say no to body hair.
The attitude of men towards the purchase and consumption of cosmetic products have changed. This is an opportunity because it will give rise to a new consumer group for the cosmetic industry.

(O) Application of anti-aging cream demonstrated improvement in depth of wrinkles.
The positive feedback from the users reveals the usefulness and efficiency of the product. Thus they will continue to use products.
SOCIO-CULTURAL
(T) Use of decamethylcyclopentasiloxane (DS) in personal care products such as skin creams, antiperspirants, and shampoos..
The chemical used in personal care products such as creams, shampoos, i.e. DS can pose danger to the marine environment.

(T) Average adult who uses nine personal care products daily, and is exposed to 126 chemicals.
Survey supports this fact that 10,500 chemical ingredients used in personal care products, only 11% have been safety assessed. Therefore the use of cosmetics is a threat to the consumers.

ECONOMIC
(O) Sales of cosmetics and fragrances are forecast to increase by 16.5% between 2012 and 2016.
This is a positive sign for the cosmetic industry, as the ever increasing buyers will help to boost the sales in future.

(O) Income level of female consumers is increasing their expenditure for cosmetic product is also increasing.
Females are spending a large amount of their disposable income on the cosmetics. The direct relation between the income and consumption level of cosmetics will prove to be beneficial for the cosmetic industry.

TECHNOLOGICAL

(O) L’Oreal developed a gene-activating serum, "Genifique," in 2009. One Genifique product is sold every four seconds.
The cosmetic industry is focusing on new research and development. This proves that they understand market condition and tend to enhance effectiveness and technology.

(O) E-commerce of beauty products in Brazil increased 47% in the first



Bibliography: Bonifacio, F. (2011). Strong growth for online cosmetic sale. Global Cosmetic Industry. Chan-Koo, K. (2012). The Cosmetics Industry Adopts a high-tech Makeover. Seri Quartely. Chemical Market Reporter. (2010). Environmental Group Petitions For Cosmetics Safety Assessment. Cosmetics and Fragrances Market Report. (2012). Chemicals and Chemistry Business. Duber-Smith, D. C. (2012). Natural Cosemetics. Encyclopedia of Chemical Technology. Junaid, A. B. (2013). A Study on the Purchase Behaviour and Cosmetic Consumption Pattern among Young Females. Journal of Social and Development Sciences. McLeod, C. (2013). The Necessity Of Testing In New Product Development. Global Cosmetic Industry. Mukherjee, W. (2012). As Indian Men Say No to Body Hair ,Others Make Money. The Economic Times. Reisch, M. (2012). Chemical and Engineering News. Retail World. (2011). Wang, y. (2013). The Anti-Wrinkle Efficacy of Argireline. Springer International Publishing.

You May Also Find These Documents Helpful

  • Powerful Essays

    Cosmetic Industry Analysis

    • 28106 Words
    • 113 Pages

    2010. From http://www.mongabay.com/images/commodities/charts/chart-palm-oil.html 1000 Fragrances (2009 June 19) Andrew Farrell. (2008, October 11). Ugly time for beauty companies. Retrieved on 4 March, 2010, from http://www.forbes.com/2008/11/07/cosmetics-retail-economy-biz-commerce-cx_af_1110vanity.html Amandine Ohayon Annual Results In A Difficult Environment, L 'oréal Is Proving .... (2008). Retrieved on 23 March, 2010, from http://www.loreal-finance.com/_docs/fichiers_contenu/0000000333/2007AnnualResults_140208_UK…

    • 28106 Words
    • 113 Pages
    Powerful Essays
  • Good Essays

    Analysis: Cosmetics Industry

    • 5041 Words
    • 21 Pages

    ANALYSIS OF SHISEIDO The Shiseido Group was established in 1872 and is headquartered in Tokyo, Japan. The company is engaged in the cosmetics and toiletries industry. The group also has massive interests in the boutique, restaurant, salon, fine chemicals, pharmaceutical and beauty foods sectors. Shiseido is the largest manufacturer of cosmetics in Japan with more than 20 brands. The firms product offering consists of 3 product lines and these are the Skincare range, the Pureness range and the Beneficence…

    • 5041 Words
    • 21 Pages
    Good Essays
  • Better Essays

    Mid term précis and analysis of the cosmetic industry Prior to discussing any creative industry, it is crucial that we first define 'creativity '. Creativity refers to the course of producing something original, or in the least, with original elements. Thus, a creative industry refers to economic activities that involve the creation of new, original materials. The cosmetic industry is one of such industries, of which will be analyzed according to Richard Caves ' economic properties. According…

    • 1517 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Cosmetic Industry

    • 984 Words
    • 4 Pages

    Global Cosmetics Manufacturing Industry Over the past five years, the Global Cosmetics Manufacturing industry has experienced steady growth. According to IBISWorld industry analyst Nikoleta Panteva, "The past five years have been no exception, despite declining per capita disposable income in key markets." Industry Analysis & Industry Trends: The global cosmetics industry is broken down into six main categories; skincare being the largest one out of them all, accounting for 31 percent of…

    • 984 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Cosmetics Industry

    • 9868 Words
    • 40 Pages

    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…

    • 9868 Words
    • 40 Pages
    Powerful Essays
  • Good Essays

    Cosmetic industry

    • 795 Words
    • 3 Pages

    Findings – Each of these cosmetic companies is unique. They each offer something different to the industry; selling method, marketing strategy, product line, and distribution channel. Practical implications – The industry trends indicate that the future of cosmetics may move towards more joint ventures between drug companies, cosmetic companies and nutritional/food companies as cosmetic companies look for new ways to be innovative. Originality/value – The research provides an in‐depth business…

    • 795 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Cosmetics Industry

    • 2367 Words
    • 10 Pages

    International Marketing The Cosmetics Industry Estee Lauder vs. Shiseido Cosmetics E. Wang July 8, 2005 BSAD 491 Introduction The cosmetics business is a billion dollar industry. Every year, women are responsible for consuming millions of cosmetic products. The cosmetics industry is so large because of several factors. The media is a huge contributor to the intense pressure to look a certain way. The idea that "sex sells" is evident in gossip magazines, movies, advertisements, music…

    • 2367 Words
    • 10 Pages
    Good Essays
  • Better Essays

    2014 INDUSTRY PROFILE – THE COSMETICS INDUSTRY The Cosmetics Industry, also known as the “Beauty Industry” has gone through dramatic changes in the last 20 years. In the last two decades, the global Cosmetics Industry has shown growth of 4.5% a year on average. This stable and continuous growth shows resilience even in negative economic conditions. The Cosmetics Industry was affected by the 2009 recession but recovered in 2010 as the global economy improved. The Cosmetics Industry is divided…

    • 2007 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    Indian Cosmetic Industry

    • 2647 Words
    • 11 Pages

    INDIAN COSMETIC INDUSTRY Size of the Industry | The size of Indian Cosmetics Industry globally is $ 274 billion, while that of the Indian cosmetic industry is $ 4.6 billion. | Market Capitalization | According to analysis and figures given by the Confederation of Indian Industries (CII), the total Indian beauty and cosmetic market size currently stands at US$950 million and showing growth between 15-20% per annum. | Output per annum | Industry sources estimate a rapid growth rate of 20% per…

    • 2647 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Executive summary The following report is doing about the Cosmetics industry, using a particular focus on one of its company : L’Oreal. This report will define the industry and its scope in a first time. Then, the report will determine the key strategic issues and the critical success factors facing the cosmetics industry and L’Oreal in the next five years. Next, the report will identify the organisation likely to be successfull or not, paying a particular attention to the competitive position…

    • 3168 Words
    • 13 Pages
    Powerful Essays