Cosmetics Industry Analysis
Introduction:
Research and Analysis on the Cosmetic industry show very intriguing findings. The cosmetic industry is one of the top-growing industries and has various challenges, opportunities, and trends that can affect its external communications.
The cosmetic industry keeps growing a little larger each year. The prediction is that the sector will be worth over 250 billion dollars by the end of 2017, including makeup, cleansers, hygienic products, etc. ("Companies That Own Beauty Industry," 2016).
The Cosmetic industry, as mentioned, is a fast-growing business with the major stakeholders in the industry being owners of many more common brands. The major stakeholders ranked by yearly sales in billions are as follows:
1. Procter & Gamble $26. 3
2. L'Oral $25. 8
3. Unilever $16
4. Avon $7. 6
5. Beiersdorf $7. 5
While these are the top leaders in the business, there are many startups or smaller companies that are still extremely well known. More traditional makeup brands went down 1. 3% in 2016, but independent brands were up 42. 7%, meaning that the consumers have to start to make a change. (Kestenbaum, 2017).
The cosmetic industry is shaped by constantly changing consumer demands, which is why independent brands have risen in demand and traditional makeup, for example, has not. Along with this, the constant use of social media in society allows beauty users to pick up and see trends from around the world. The struggle that comes with this is that companies have to keep up with the innovation or try to. (Team, 2017).
The other struggle that is occurring in this industry comes down to the handling of e-commerce. Some companies have started to feel that in e-commerce, the main attribute to buying a product is the price, and the retailers are devaluing the role of the brand. While others feel that this is not the case and instead, consumers want unique products, there is ever-changing boundaries in the cosmetic industry with several new phenomena:
Masstige(inexpensive but marketed as luxury) The desire of consumers to have beauty products along with health and wellness products all together in one, Creating spa experiences at home. (Kestenbaum, 2017) The second point...