Beiersdorf AG: An Analysis Of The Female Beauty Industry

As the female beauty industry starts to mature, there is also a huge increase in the number of companies competing in the market, both globally and regionally. As a result, Beiersdorf AG is required to look into other potential markets, as its over-reliance in the female cosmetic industry will eventually result in a continued loss of market share in the beauty industry. Despite already having ventured into the market of men’s cosmetic products, the slow innovation from the company had resulted in the continual loss of market share to other major companies like L’Oreal. In this report, we will be exploring the opportunities and methods available for Beiersdorf AG to explore further into this market.

In the recent years, men have begun to be

Bloggers, in particular, are a rising popularity. Market research has shown that more consumers tend to look up on reviews before making purchasing decisions. Companies can choose to ride on the rising popularity of bloggers, as sponsored reviews from bloggers are generally not as pricey as “engaging an internationally renowned celebrity as an endorser” (Euromonitor International, 2014). Also, it is noted that the review of a blogger will send a more reliable message, as compared to one in the mainstream media (Khan-Gordon, A., 2007). As technology advances forward, companies have also begun to interact with their consumers through these means (i.e. Facebook, blogs, websites with beauty advice or apps for smart phones) in attempt to increase profits (Kopaciuk, A., & Koboda, M., 2013, cited from In-cosmetics, 2010). Furthermore, probe into consumers’ behaviors have shown an increase on purchases made over the Internet. This substantiates the fact that the Internet plays an important role in the consumers’ decision-making process (Kopaciuk, A., & Koboda, M., 2013). Additionally, the benefits of maintaining consumer relationships through the use of Internet can positively affect the company on the long run. It helps to garner honest feedbacks, and can lead consumers into being “loyal” to the brand that is willing to