1. Introduction This report analyzes the cosmetics retail industry in Hong Kong. There are many large-scale specialty cosmetics chains that are well developed in this market, such as Sasa, Bonjour, Colourmix, Aster and Angel, which are taking the lead. They mainly offer a wide range of international branded products and private label products to cater for customers’ special beauty needs, like make-up, fragrance, skincare items. With many dominant firms and a slowing growth in demand, the industry structure is being identified as mature. On the following report, customers’ needs analysis, five forces analysis and complementors, companies’ performances as well as the potential impacts on expected changes in the cosmetics retail industry will be discussed in detail. 2. Needs Analysis Nowadays, people attach great importance to appearance. In order to meet different customer needs, each company in cosmetic retailer industry provides various beauty products to customers. Skincare, make-up, hair care products, body care products, perfumes, health and beauty supplements are included. In the following report, we will analyze different dimensions of customer needs and discuss how to satisfy customers. 2.1 Monetary Most people will use beauty products every day in order to be more attractive, whereas the cost is very high. Hence, customers want to obtain a low price in the stage of transaction. In order to fulfill customer needs, companies offer a lot of shopping ways to customers like bonus point programs and membership programs. Customers can obtain the redemption products and enjoy discounts when purchasing by joining these programs, which can lead to save more. 2.2 Time and timeliness Lives in Hong Kong are busy. Many people s... ... middle of paper ... ...edules. The app will also recommend some shops related to the locations they choose. Besides, visitors can search the shops by categories. For example, visitors can easily find a cosmetic shop nearby through selecting the category of ''Cosmetic shops'' in the app. 6. Conclusion To conclude, by analyzing the environmental changes that may affect the future profitability of cosmetics retail industry, it is found that there are perfect transportation and some policies that can attract more Mainland tourists to visit Hong Kong. Backed with the significant purchases made by the Mainland tourists, sales in those cosmetics retail chains can be stimulated. Also, as most women care about their appearance, the demands of cosmetics and skincare products are quite high. Overall, this industry is able to remain attractive in the coming future even under fierce competition.
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
There is a need to assess consumer preferences and choices in order to ensure customer satisfaction
Market Size: The global beauty products industry is predicted to reach $265 billion by 2017.
Sephora has started its digital presence in the year 1999 with the launch of its website, “Sephora.com” and pioneered in the digital and beauty retail business. With around 3 million visitors per month to its website, Sephora has not put a single step wrong in its marketing strategy. The introduction of Sephora Beauty Insider program in 2007 followed by the Customer Relationship Management programs, the number of online customers have been exploded in multi-fold across Sephora’s online channels. Although Sephora was known for its in-store experience, the shear increase in the number of customers on its online portals had almost blacked out the online system in the holiday season of 2014. This led many of its Asian loyal customers
The beauty industry has great opportunities for companies wanting to profit from the growth and resiliency of the sector. Finding the right niche is important for becoming visible in the industry. Communicating the unique selling point to the target group will distinguish the company from the competition so it can survive. Also, product sales are needed to earn revenue beyond the service income. The success of Sugar Wax Salon will rely on its ability to offer a beneficial service, create the right products, and promote them to the right people at the right price.
Sally Beauty has a heritage as the first choice for professional cosmetologists and consumers alike because of the broad range of products. Their international presence offers Sally Beauty / BSG insight into fashion and beauty trends. It gives buyers and merchandisers a head start on obtaining the tools and products salon professionals need to create the latest fashion looks, as well as the products consumers use to maintain the look between salon visits. Beauty Systems Group stores, along with its outside sales consultants, sell up to 9,500
Sephora is working on one of the biggest complaint customers had: lack of ethnic diversity in Sephora Collection products. The company is coming up with more products that will fit all of the skin tones and undertones. Also, several years ago, Sephora’s main target market was wealthy women from 30 to 50 years of age. However, with growth of YouTube and teenagers growing up faster than ever, Sephora should consider targeting girls and women. By expanding their market, they will be able to produce more revenue. Men’s skin and hair care, fragrance products should be available in all of the Sephora locations. It will increase sales, especially during holiday seasons, when people are searching for presents. If customers will be able to purchase gifts for different genders and ages at the same store, they will be more attracted to that particular
A broad range of Amway products has a lot of substitutes. In 2014 Irish make-up market the main indirect competitors for Artistry products are L'Oreal S.A. and The Estee Lauder Companies Inc. and Coty Inc. According to Marketline (2012) in 2011 L’Oreal was the top player in the make-up market accounting 25.5% of total market share. In the report (Marketline, 2012) the following top players Estee Lauder, Avon an...
After studying the cosmetic market we can identify a series of needs in this market:
Nowadays, people are spending relatively more on the skin-care products. According to Souiden and Diagne (2009), individual are getting more aware and concern on their appearance, as in the aspects of hygiene and beauty, due to the growth of consumers’ purchasing power. Based on the findings from Nielsen (2007) study, people are willing to spend money on building good looking appearance by consume
At present, cosmetics are always used in daily life. When we talk about cosmetics, most people will think of the things that only use for make-up such as lipstick, eye-shadow, mascara, blusher etc. But in fact cosmetics are not only mean to the things that only use for make-up but also shampoo, lotion or sunscreen. According to the US Food and Drug Administration (FDA) explains “Articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body… for cleansing, beautifying, promoting attractiveness, or altering the appearance.” (2014) The reason why people use makeups have different ways such as some people use for more confidence, some people use for protect the sunlight, and some people use for maintain their skin. However, there are a lot of people still worry about using the cosmetics since they believe that cosmetics are contained the dangerous chemicals that damage their body so they afraid of using them and try to avoid to use them. Although many people will be concerned that applying cosmetics may destroy their health, in fact, many experts have been confirmed that the use of cosmetic is not harmful to the human’s body. Moreover, cosmetics are also useful for users.
Based on the information provided in the L’Oreal case, Yue Sai struggled to grow and capture additional sales in the high-end Chinese cosmetics sector. In the past, L’Oreal attempted to position Yue Sai in several different ways which can be viewed as detrimental to the company image, showing uncertainty as the company struggles to see which positioning strategy will stick. The most recent positioning presented in the case, which desires to “deliver Yue Sai’s longstanding brand promise that ‘Nobody knows Chinese skin better than Yue Sai’”, allows the highest probability of success for the company capitalizing on countless fresh trends in Chinese cosmetics (6). The positioning statement would reflect this new strategy: “For the modern Chinese woman Yue Sai offers a line of high-end cosmetics. Unlike other high-end cosmetics Yue Sai combines traditional Chinese medicine and sophisticated technology adapted to the unique skin type of Chinese women.” Yue Sai saw reasonable success and hope in the new Vital Essential line which utilized traditional Chinese medicine and, therefore, resulted in above average repeat purchases. Continuing to focus the strategy around traditional Chinese medicine should benefit Yue Sai considerably. Another suggested strategy would be to wholly reposition Yue Sai, however this is ill advised. As stated in the case, Yue Sai tried numerous different positioning strategies, which ultimately provided no clear path strategy. Repositioning would show uncertainty in the company, lowering brand value in the eyes of the consumer.
Customer analysis is the assessment of information associated with customer needs, habits, requirements, and market trends. This is usually completed in three phases, evaluating before, during and after the acquisition. These phases are typically accomplished through consumer focus groups, gratification measurements, and field-testing. Moreover, market analysis can be best described as a comprehensive examination designed to forecast or forestall the direction of stocks, bonds, and the product market, typically based on technical data.
It is concluded in the study that consumers do have an emotional attachment to handmade cosmetics. (This could be the transition to values) It is also discussed
Beauty product can be defined as cosmetics; materials and devices made and sold for the purpose of enhancing the physical attractiveness of users or in other words, as any product, especially a cream or lotion, intended to improve a person's appearance . We live in society where people nowadays are very obsessed with beauty and spending so much money on beauty products. Since we were children, the society taught us that beauty is happiness, wellness and everything. This creates a mindset that only attractive physical appearance is beauty, even though ‘beauty’ is a very subjective word where it can apply to many things. It is a rare sight these days to