Analysis of the cosmetic industry

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Mid term précis and analysis of the cosmetic industry

Prior to discussing any creative industry, it is crucial that we first define 'creativity '. Creativity refers to the course of producing something original, or in the least, with original elements. Thus, a creative industry refers to economic activities that involve the creation of new, original materials.

The cosmetic industry is one of such industries, of which will be analyzed according to Richard Caves ' economic properties. According to the Food and Drug Administration (FDA) of the United States, cosmetics are "articles intended to be... applied to the human body for cleansing, beautifying, promoting attractiveness, or altering the appearance." By this definition, cosmetics …show more content…

In this case, the ranking of products is based on the institution of which the product originated from. Chanel and Marc Jacobs, are iconic fashion labels that sell products at high prices in the market. Because of their goodwill, these brands can easily attract customers willing to sacrifice high prices for good-quality products, as they believe that the price reflects the quality of a good. Consumers may be willing to pay more to enjoy an "A list" good rather than a "B list" good. In this case, the ranking of a good is decided by the reputation of its originating institution.

Thirdly, Caves ' "time flies" property is demonstrated in the cosmetic industry as well. This particular economic property suggests that creative products are to hit the market at a specific time to reach certain goals. Most of the time, the goals are to generate revenue by meeting temporal demands.

The most obvious example to this economic property all the products that emerge in the market during the holiday seasons. We can notice that especially around Christmas and wintertime, companies like to promote themed products that adhere to the needs and interests of customers during that particular time of the year. Companies such as the Body Shop or Lush will bring out gift sets and limited edition body lotions and shower gels that have special Christmas-themed scents,

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