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L´Occitane Market Analysis

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by Adrien Saget, Daniela Zuluaga, Eugeniya Shurinova and Mary Arro

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Executive Summary Cosmetic industry is one of the fastest growing industries in today’s economy. Despite the financial recession and instability the market of cosmetics keeps growing. Trends are changing rapidly: what a couple of years ago was a niche market and was aimed at a narrow range of customers today becomes a must if a company wants to survive. A number of EU countries have developed a large trade surplus and a significant comparative advantage in cosmetics products. French and German companies sustain their comparative advantage by allocating more resources to innovative activity and new product development than other countries. The result is a large number …show more content…

Most products with a label, "Made in France" are valued on the international market. According to data from 2008, the cosmetic industry has grown constantly in France for 40 consecutive years. In 2006, this industrial sector reached a record level of €6.5 billion. The Italian cosmetic industry is also an important player in the European cosmetic market. Although not as large as in other European countries, the cosmetic industry in Italy was estimated to reach €9 billion in 2007. The Italian cosmetic industry is however dominated by hair and body products and not makeup as in many other European countries. In Italy, hair and body products make up approximately 30% of the cosmetic market. Makeup and facial care, however, are the most common cosmetic products exported to the United States.

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The cosmetic industry worldwide seems to be continuously developing, now more than ever with the advent of the Internet companies. Many famous companies sell their cosmetic products online also in countries in which they do not have representatives. Research on the email marketing of cosmetics to consumers suggests they are goal-oriented with email content that is seen as useful, motivating recipients to visit a store to test the cosmetics or talk to sales representatives. Useful content included special sales offerings and new product information rather than information about makeup trends. Cosmetics

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