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Industry Analysis Case Study

Case Title:

Cosmetics Industry (A): New Growth Avenues, New Markets, New Challenges and Old Solutions?

Publication Year : 2007

Authors: Sushma, Mercy Mathew

Industry: Home Appliances and Personal Care Products


Case Code: INA0085

Teaching Note: Available

Structured Assignment: Available

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The global cosmetics industry is booming, but the share of developed markets- the largest contributor to the total cosmetic global sales - is decreasing. US, the world’s largest cosmetics market, is no different to this situation. Though the growth rate improved in 2006, there is not much market potential. Major players are turning away from sluggish US domestic markets and counting on developing markets of Asia, Eastern Europe and Latin America. However, it is not a cakewalk for these players. Premium players have an even terrible time in a country like China, where low-priced goods are preferred. For mass players, the future seems promising in these emerging markets; while in developed markets, those with niche products can taste success.

Pedagogical Objectives:

    # To discuss the similarities, dissimilarities and challenges of the developed and developing cosmetic markets # To discuss the challenges developing markets pose to the players

Keywords : Trends in the Global Cosmetics Industry; Critical Success Factorsin Cosmetics Industry; Growth Strategies Case Study; Basis for industry Segmentation; 5 Force Analysis; Ram Charan Matrix; Growth Strategies; Opportunities in Emerging Markets; Distribution and Retailing Strategies; Ansoff Matrix

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