PESTEL Analysis: External Influence on the market
Political / Legal Aspects
In 2009, E U (European Union) had implemented a ban on the sale of cosmetics with animal test no matter where the testing place and it went into effect on 11th March 2013. This ban has brought some impacts to the cosmetics industry such as the firms are facing the China’s animal testing regulation which is all the imported cosmetics must be tested on animals before sold in the market, and the cosmetics firms are required to pay for the tests. But it’s not including the soaps, shampoo and certain skin care products manufactured in China. It put the Europe cosmetics firms at a competitive disadvantage in global market.
After a long recovery from lingering recession, the World Bank indicated the global economic growth rate is forecast to accelerate from 2.4 percent to 3.2 percent in 2014from the U.S., China and other major developed countries. (U.S. News & World Report, 2014) Hence, many private analysts forecast consumer demand is increasing due to better off financially spending more for services and products. (Los Angeles Times, 2014)
In this day and age, men are started focus on their image appearance, the demand of cosmetic and skin care products become higher and higher. Particular in Asia, men’s grooming...
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...ls-three-pronged-strategy-for-future-growth [Accessed: 9 Mar 2014]
Strategic Planning for Competitive Advantage. 2014. L'oreal Boudoir, [blog] 10 September 2011, Available at: http://lorealsboudoir.blogspot.com/2011/09/ch-2-strategic-planning-for-competitive.html [Accessed: 1 March 2014]
Bloomberg News. (2013). China Animal Testing Complicates L’Oreal’s Expansion. [online] Available at: http://www.bloomberg.com/news/2013-08-21/rabbits-pay-the-price-as-l-oreal-to-p-g-expand-in-china.html [Accessed: 25 February 2014].
Rentzing, S. 2014. Facilities for Cosmetics Production: Packaging Beauty Efficiently - Top Beauty makeup containers, lip gloss containers, Lipstick tubes,lipstick containers,empty lipstick tubes,makeup packaging,cosmetic containers. [online] Available at: http://www.topbeautysh.com/news/industrial_20140220496.html [Accessed: 17 February 2014].
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