The term ‘cosmetics market’ normally describes the ‘cosmetics, toiletry and perfumery’ industry. Cosmetic products perform six functions: they clean, perfume, protect, change the look, right body odours and keep the body in good condition. Cosmetics, toiletries and perfumes have actually ended up being a fundamental part of every person’s life and they have actually come to be considered as equally crucial as health-related (pharmaceutical) items.
On the basis of item use, the cosmetics market can be divided into 4 sectors: high-end, customer or position as the leader (considering that 1980s) in the market.
In 2000 the European cosmetics industry created almost EUR50 billion in sales, which was two times the sales volume of the Japanese cosmetics industry and one-third more than that of the us cosmetics industry.
L’Oreal has actually stayed the international leader in the industry with a 16. 8 percent market share, followed by Estee Lauder with a 10. percent market share, and Procter&& Gamble with a 9. 3% market share. Developed in 1946 in New York City, United States, Estee Lauder took on L’Oreal in the luxury segment with brands like Estee Lauder, Aramis, Clinique, Prescriptives, Origins, MAC, Bobbi Brown Basics, Tommy Hilfiger, Jane, Donna Karan, Avenda, La Mer, Stila, and Jo Molone.
P&G, the US-based FMCG maker, compete with L’Oreal in the mass-market section with skin care, haircare and bodycare items.
Some of P&G’s widely known brands consist of Biactol, Camay, Cover Woman, Ellen Betrix, Infasil, Max Facter(skin care), Herbal Essences, Loving Care, Natural Instincts, Good n’ Easy Pantene pro-V, Rejoice, Vidal Sasson, Wash&& Go(haircare), Laura Biagiotti, Hugo Boss, and Helmut Lang(fragrances).
The US-based Revlon inc likewise compared to L’Oreal in the mass-market sector with brands like Charlie, Colorsilk, Colorstay, Fire&& Ice and Skinlights. Other companies like Avon, Kose, Coty and Shiseido contended internationally in the mass-market segment.
L’Oreal remained the overall industry leader, as it was the only company that competed in all four segments. The cosmetics industry has always been characterised by extensive research and innovation by companies to introduce newer and better products. Since the 1990s the industry has witnessed many changes in terms of the manufacture of cosmetics owing to growing awareness among consumers about the harmful effects that harsh chemicals(generally used in osmetics)may cause to their body(skin and hair).
This was one of the reasons for the manufacture of products with natural or herbal ingredients by companies like L’Oreal and P&G. Due to the increased focus on ‘wellness,’ the industry as a whole is now moving towards ‘cosmecuticals’ and ‘neutraceutials, that is, products that combine that qualities of nutrients and beauty aids. Industry analysts speculate that the market for these products would rise sharply in the twenty-first centry.
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