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...
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...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.
We all know that cosmetics existed thousands of years ago. Cleopatra used a heavy arsenal of beauty aids to help her shake the foundations of the Roman Empire. Yes, cosmetics and perfumes have a long history, but the consumer industry we live in is relatively recent, a creation of the decades 1890 through 1920. The products hawked in the 19th Century by druggists, perfumers, barbers, physicians, and a colorful assortment of other enterprising individuals were primitive by our standards. Certainly, active ingredients were used with abandon, notably arsenic, lead, and mercury. These were products that really made visible differences, and the consumer was well-advised to be wary of the majority of these mysterious concoctions.
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
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.
Recent slow expansion of the company is caused mainly by the limited ways of sale and by the worries about the loss of control in the case of penetrating new markets. The company does not think about any other practices than retail contract sales and refuse the offers from abroad to get MAC products in there. “The demand for MAC Cosmetics is there, but the supply is not. While MAC is one the cosmetic lines highest in demand, finding discounted products is actually not that easy” (Vasen, 2007, p. 1 ) Moreover, there are no media advertisement outside the United States and people often do not even know about the products and their advantages. The statistics show that the leading way to get information about MAC products is via referrals (Bates, 2006, p.
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
Overview NARS Cosmetic is a cosmetic company founded by Francois Nars in New York, US in 1994 (Hollywoodnoirmakeup.com, 2012). It is considered as one of the best-selling cosmetics and skincare products company in U.S.A, Canada, Korea, Japan, and Taiwan (Shiseido Co., 2014). Since the demand for cosmetics is growing every year and people are looking for more quality products, the company decided to open a new branch in the Middle East to have more customers and to satisfy them by making the NARS product more easily accessible. The aim of this paper is to indicate the best country among the GCC to open a new NARS Cosmetic branch by studying every country’s feasibility of a new cosmetic branch. We hope this expansion can please our customers and make better reputation in GCC countries,besides increase our profit.
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
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.
Market Size: The global beauty products industry is predicted to reach $265 billion by 2017.
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
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...
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.
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