The cosmetic industry

Abstract

The cosmetic industry is a very lucrative, innovative, and fast paced industry where product innovation is the key to success. The purpose of this paper is to present a detailed analytical (qualitative) study of cosmetic industry in the global marketplace with a focus on the four market leaders in this industry relative to their business and innovation strategies.

Business analyses include Strengths, Weaknesses, Opportunities and Threats (SWOT) applied to the four industry leaders. Each of these cosmetic companies is unique. They each offer something different to the industry; selling method, marketing strategy, product line, and distribution channel. 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.

Keywords –Global Business Strategy, Cosmetics Industry, Marketing Innovation, SWOT Analysis.

۱. Introduction

Cosmetics have been around for thousands of years. When people hear the word “cosmetics”, they tend to think of makeup and perfume designed for women. Cosmetics actually come in many forms, ranging from powders, body makeup, soap, shampoo, and toothpaste. We can trace the…show more content…
Some products have a long life cycles and some only stay in the market for a short period of time (three months). Examples of products with long life cycles are soaps, facial cleansing systems, and deodorant. Examples of products with short life cycles usually contain products based on color, i.e. lipstick, nail polish, etc. Long life cycles present obvious advantages and commensurate challenges, which is due to product performance improvements, aesthetic enhancements, packaging innovations, and of course the lower costs are conventions routinely applied to increase market share. As the competition grows, the life cycle of the products
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