Analysis of Cosmetic Retail Companies in Hong Kong

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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.

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