Opportunities and threats to cosmetic industry

Luxury skincare, cosmetics, hair care, fragrances have emerged as thriving sectors and so remarkably proved that often European or US educated brand conscious Indian women. The customer’s first encounter at any departmental store like Shopper’s Stop, Lifestyle, Essence or mall like Crossroads, Ansals, Metropolitan, often is with fragrances and cosmetic brands thus proving that it is these brands that invite customers to stores.

Global cosmetic industry, a Rs.30000crore industry, borders are expanding everyday and potential is limitless. The end-user industry of cosmetics and toiletries is amongst the most dynamic industries in world, consistently showing growth rates more than the average GDP growth rate of Europe and displaying an excellent ability to quickly identify and exploit growth areas.

As multinational manufacturers seek to generate growth beyond mature core markets, opportunities are opening up in regions around the world. It is a fast-changing industry, with new product launches, new packaging for old products and price pressures that create a tendency towards economy of scale. Where famous brands remain unchanged, presentation becomes even more crucial.

Naturally, fashion and beauty fads play a part, hence the so-called ‘essential’ and ‘natural’ products. The latest skin creams, facial scrubs, lotions and moisturizers reflect a more fashionable minimalist look for make-up throughout much of the developed world. Changing social attitudes and generally higher disposable incomes also reflect more self-indulgence between both sexes in the use of up-market fragrances and toiletries.

With many players in the beauty care industry coming up with innovative products aimed at penetrating into largely untapped markets, the future looks bright. The cosmetic industry worldwide continues to grow.

Many companies in beauty care industry are coming up seeking opportunities arising out of the changing environment specifically- socio-cultural and demographic environment, bringing innovative products aimed at merging niche markets and venturing at largely untapped markets.

If we look around we find that what existed 20 or 30 years ago has totally changes and the change is transparent

Despite of every above fact, this industry face many challenges-including social, demographic as well as cultural ones. No doubt the changing environment do give opportunities, we have to count deep insight into the sector... 

As a part of change in socio- cultural environment , it includes changes in education, tastes and preferences,urbanization, women empowerment, attitude of people, increased media influence etc .

Changes in demographic environment with worldwide population growth, geographical shifts in population, sex composition, household patterns are a must study areas which have potential  that can be tapped for expansion and for search of better areas or untapped markets