Report good way to helps cosmetics companies promote

Report of Cosmetics industry Modern cosmetics industry originated in Western Europe, heritage of the ancient art of home-based perfume workshop from the 18th century to today’s factory production, brandoperations in the global market.

Cosmetics has become a brand-driven, group-based globaloperations. Cosmetics and beauty products are controlled by a few multinationals, for instance, L’Oreal,Unilever, Procter & Gamble, Estee Lauder and Shiseido. With the increasing popularity ofsocial media, the cosmetics industry is also borrowing these network platforms to narrow thedistance with consumers. These network platforms not only have strong influence in younggroups, but also can help cosmetic companies to make advertisements for their products.

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There are a lot of videos on YouTube are about cosmetic tutorials which are designed to teachviewers about beauty, for example, how to use a particular type of product to create their ownmake-up style which is a good way to helps cosmetics companies promote their products toattract more consumers. 2. Global overview The global make-up market has shown a steady growth in the past decade. There has neverbeen any stagnation or negative growth situation. Even in the economic crisis, the growthslowed to 1% in 2009 but quickly recovered to around 4% in the recovery which is the normallevel of growth. According to L’Ore?al’s comprehensive analysis of the global beauty market in its 2016 annualreport (“The world of beauty in 2016”), the global cosmetics market in 2016 is 186.2 billioneuros which increased 4%. In terms of growth rate, the increase of 5% in 2007 is the highestin the past ten years and the increase of 1% in 2009 is the lowest in the past ten years.

Growth of the worldwide cosmetics market over ten years Specifically, sales of online cosmetics in the world have accelerated in recent years,increasing by 20.7% in 2016, far exceeding the growth rate of 4% of the total cosmeticsindustry. By the end of 2016, E-commerce business accounted for 11% of the globalcosmetics market. For the emerging markets maintain exciting growth and at the same time, Asia Pacific markethas become the world’s largest consumer market for cosmetics, accounting for 36.9% of theglobal total, followed by Western Europe, North America and Latin America.

From the product category, the largest one in cosmetics industry is skin care market. Theglobal market for skin care products in 2016 reached 67.61 billion euros, accounting for36.3% of the total cosmetics market. The market size for hair care products was 42.63 billioneuros, accounting for 22.9% of the total. The makeup market was 33.

92 billion euros, accounting for 18.2% Perfume market size of 22.15 billion euros, accounting for 12.

0%;health supplies market size of 19.69 billion euros, accounting for 10.5%. From the major consumer countries, cosmetics sales channels are mainly in departmentstores, supermarkets, pharmacies and chain Monopoly.

According to the actual situation indifferent countries, there are obvious differences in the roles of various channels. Forinstance, the United States with a well-developed circulation industry and the warehousingand retail channels are one of its major features, while the direct sales and open markets makeup a big share in Russia. In European developed countries such as Britain, Germany andSpain, the role of department store channels is very small.

Supermarkets, specialty stores andpharmacies occupy a very high proportion, especially the pharmacy is the most importantsales channel. The British BOOTS chain stores occupy 70% Share. 3. Cosmetics in France As we all know, France has a global leading position in the cosmetics perfume industry.

Thisis not only due to the excellent traditions and global professional expertise that the industryhas always admired, but also to French innovation ability in this industry. France is theworld’s number one exporter of cosmetics, and in this industry, “Made in France” is still alabel of great quality in the whole world. Moreover, French cosmetic products are exported tomore than 200 countries and for those emerging countries, the cosmetic companies in Francestill try to increased their global market share.

Exports in 2016 exceeded 12 billion euros mark in the cosmetics trade surplus reached 9.2billion euros, and the global cosmetics market accounted for 1/4 occupied by the Frenchbrands. For China, France is the largest cosmetic supplier. In 2016, the export of Frenchcosmetics to China increased by 15% to 783 million euros, accounting for 31% of China’simported cosmetics. This also allows the French cosmetics industry to become the thirdlargest exporter after aviation, wine and spirits.

4. Cosmetics in China China’s cosmetics industry is developing rapidly and has become a new consumer hot spot.With the global luxury goods industry continued downturn, the Chinese luxury goods marketcontinued to shrink while the cosmetics industry has ushered in its “new era.” As China hasliberalized the restrictions on imported cosmetics, the international cosmetics giant isaccelerating the expansion of the Chinese market, making the Chinese domestic brands towithstand the huge impact from the outside. In the Chinese beauty cosmetics market, themarket share of foreign capital or joint ventures is close to 80%, while domestic cosmeticsproduction can only meet the needs of Chinese consumers by launching medium and low-grade products through Sino-foreign joint ventures. In recent years, with the popularization and development of the Internet, the channel ofelectricity supplier has developed rapidly.

According to statistics, in 2015, the scale of onlinetransaction of cosmetics in China is about 152.6 billion yuan and the penetration rate ofcosmetics in the retail line is 29%. It is estimated that by 2018, 300 billion yuan. Take L’Oreal Paris as an example.

According to the latest mid-year report released in 2016, asof the end of June this year, e-commerce sales rose 33%. Currently, the contribution of globale-commerce sales have accounted for 6% of L’Oreal Group’s total sales. In 2015, L’Orealsales reached 1.3 billion euros, growing rapidly, accounting for more than 5% of the Group’ssales, which is equivalent to the overall sales of L’Oreal’s fifth largest market in Germany.

Inthe past five years, e-commerce has jumped to become the top three distributors of L’Oreal inChina. In 2015, E-commerce sales increased 60% over last year. Cosmetics companies inChina see the importance of e-commerce channels and have invested heavily. 5. New trend Due to health and product safety concerns, the growing awareness of green products andharmful chemical threats of people makes the demand for organic green nursing products willcontinue to grow.

In early December 2015, the United Nations Climate Conference was held in Paris. Majorconsumer product manufacturers responded to the call for energy conservation and emissionreduction. They jointly signed and set emission targets and committed themselves todeveloping renewable resources. In 2016, Cosmetics design concluded that sustainability is still something that the cosmeticsindustry needs to be aware of. Like packaging, many businesses are already usingenvironmentally friendly and recyclable materials.

Water will also be a priority for the beauty industry, with many companies saying they willsave water in the production of beauty products. And according to Mintel introduction, thefuture of beauty products must have a clear environmental standpoint to show consumers thatthe brand solution to water shortages, to help them control the personal water. In recent years, natural organic care products market continues to heat up, according to theUS website reported that in the past ten years, natural beauty productsbecome beauty and personal care industry’s number one growth point, with an average annualincrease of 20%, of which the representative Brands include: The Body Shop, Kiehl’s andBurt’s Bees.

The United States market research firm Grand View Research predicts that by2020, organic natural care products will double the market size. 6. Conclusion and personal opinion Cosmetics Consumers did not change their purchasing behaviour when the crisis came anddid not reduce the value of cosmetic evaluation. It can be said that cosmetics industry is arising market where is full of opportunities and challenges. Cosmetics Market as aninnovation driven seller market with obvious characteristics, consumers are willing to pay forhigh-quality and new attractive products.

However, with the continuous emergence of high-tech cosmetics and healthy organic products, the demand of consumers for cosmetic productsis also increasingly strict. How to deal with these challenges will be a serious problem whichwe should seriously consider. 


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