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Economical analysis of Cosmetic Industry

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Economical analysis of Cosmetic Industry

  1. 1. ECONOMIC ANALYSIS ON COSMETICS INDUSTRY<br />
  2. 2. Products/Services<br />Product Segmentation Share<br />Hair Care 22%<br />Color Cosmetics 18%<br />Skin Care 15%<br />Bath & Shower 13%<br />Fragrances 9%<br />Men’s grooming 7%<br />Oral hygiene 7%<br />Sun care, Nail care & Baby care 5%<br />Deodorants 4%<br />
  3. 3. Top 10 players<br /> Company Beauty Sales (US Billions)<br />Procter & Gamble $26.3 <br />L'Oreal $25.8 <br />Unilever $16 <br />Avon $7.6 <br />Beiersdorf $7.5 <br />Estee Lauder $7.3 <br />Shiseido $6.9 <br />Kao $5.9 <br />Johnson & Johnson $5.6 <br />Henkel $4.4<br />
  4. 4. Market Structure<br /><ul><li>Monopolistic competition
  5. 5. Large number of firms
  6. 6. Differentiated products
  7. 7. Certain degree of control over pricing
  8. 8. Barriers to entry
  9. 9. Government regulation
  10. 10. Distribution channels</li></li></ul><li>Market segments by age<br />
  11. 11. Current Market Trends<br />Anti-aging skin care segment is growing due to large population of baby boomers.<br />Growing Metro-sexual demand.<br />Shift in customer preferences towards natural cosmetics.<br />Increased awareness of consumers towards the ingredients.<br />Value for money<br />
  12. 12. Future market size forecast<br />
  13. 13. Top Exporting Countries in 2008<br />
  14. 14. Top Importing Countries in 2008<br />
  15. 15. The Role of Government<br />The FD&C Actprohibits the marketing of adulterated or misbranded cosmetics in interstate commerce.<br />The FPLA Actrequires an ingredient declaration to enable consumers to make informed purchasing decisions. <br />
  16. 16. The Role of Government<br />A cosmetic is adulterated if—<br />poisonous or deleterious<br />filthy putrid, or decomposed substance<br />unsanitary conditions<br />poisonous or deleterious substance (container)<br />unsafe color additive<br />
  17. 17. The Role of Government<br />A cosmetic is considered misbranded if--<br />false or misleading label<br />all required information not included<br />not prominent and conspicuous<br />misleading container<br />color additive - does not conform to applicable regulations<br />packaging or labeling in violation of an applicable regulation<br />
  18. 18. Industry Trends<br />Geographic expansion<br />Focusing on high growth, emerging markets<br />Asia and Russia<br />Channel development<br />Reach new consumers and new industry segments<br />Acquisitions <br />
  19. 19. Acquisitions<br />L'Oréal Buys Essie- April 2010<br />Avon Acquires UK's Liz Earle Beauty Co. Limited-March 2010<br />Shiseido Acquires Bare Escentuals-January 2010<br />Kao AcquiresEuropean<br /> Production Facilites<br />June 2009<br />
  20. 20. New Markets<br />
  21. 21. New Markets<br />European<br />Russia to become number 1<br />Asia-Pacific<br />Japan<br />Japan accounts for 44.1% of the Asia-Pacific market<br />China taking over number 2 spot for Japan??<br />Middle East<br />Iran<br />7th largest cosmetic consumer<br />
  22. 22. Market Trends-United States<br />Chemical Demand to reach 7.6 billion-2010<br />Organic/Mineral Products<br />Demographics Diversity<br /> Aging<br />
  23. 23. Ευχαριστω<br />ありがとう<br />Спасиб<br />Благодаря<br />谢谢<br />Dank u<br />Dankie<br />Gracias<br />Grazie<br />Thank you<br />ขอบคุณ<br />Faleminderit<br />תודה<br />Cảm ơn<br />Merci<br />Obrigado<br />Multumesc<br />
  24. 24. QUESTIONS<br />

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