INDUSTRY AND MARKETPLACE
5.1.2 Shape of the Industry
In estimation, Malaysians annually spend an estimated US$500 million on cosmetics. Statistically, it is evident that the industry is enjoying an upward swing, with an encouraging increase in the demand for beauty and personal products.
5.1.3 Development of the Industry
The cosmetic and personal care industry is combined of manufacturers of various cosmetic and personal care products. It retailers may distribute products intended to enhance one’s visage and/or be used for personal hygiene. These cosmetic and personal care items may be comprised of skin or sun lotions, as well as different forms of make-up, hair products, perfumes, oral care products, and shaving preparations. Cosmetic and personal care companies are responsible for the preparation, blending, compounding, and packaging of assorted beauty products and toiletry items. Buoyed by strong economic growth in 2003, the Malaysian cosmetics and toiletries market recorded sales of approximately US$800 million. Sales were sustained by increased urbanization, a rise in the number of women working, and aggressive marketing and promotional activities of the retailers. The numerous new product launches also signified that the market still has room for growth.
Companies in this industry have started to utilize media entertainment to promote their products quickly and effectively. Using the influence of popular television shows, movies, and other forms of entertainments to market their product is becoming an increasingly prevalent strategy in exposing their cosmetics to potential consumers. It expedites the process of providing consumers with product information.
Globally, the cosmetic industry continues to develop and the Internet also allows this industry to have further reach. Many cosmetic and personal care companies will sell their products online, which makes the process of choosing and purchasing easy. In addition, automated kiosks have begun to be showcased as new avenues for cosmetic and personal care supply and consumption. Similar to a vending machine, these kiosks provide another way for companies to generate profit.
Population growth and the wants and needs of the consumer are responsible for demand in this industry. Profitability of cosmetic and personal care companies is based upon an array of different factors: smooth operations, effective marketing strategies and the resulting product sales, innovations in production, specialization of products, and whether or not a company has advantages in manufacturing, buying, merchandising, and distribution.
5.2 The Marketplace
5.2.1 Current Condition of the Marketplace
5.1.1 Definition of the Industry
Cosmetics and Personal care is the industry which manufacture consumer products used for beautification and in personal hygiene. Over the past ten years, the cosmetics and personal care products industry has increased beyond a market solely for women, to include men and children. Many products are regulated due to concerns over health and performance. Cosmetics and Personal Care include products such as Color Cosmetics, Skincare, Perfumes and Fragrances, Toiletries, Hair care products etc. Cosmetics and Personal products are now marketed by a variety of methods, notably by popular high street departmental stores, authorizations, e-commerce and direct selling establishments.
5.1.2 Shape of the Industry
The evaluation worth of Malaysia’s cosmetics and toiletries industry is approximately RM3.6 billion (with a healthy projected annual growth rate of 13%). This industry mainly engaged in retailing cosmetics, perfumes, toiletries, and personal grooming products. These products can be found in special cosmetic stores, perfume stores and beauty, body care supply stores.Products are sold to households with individual stores/chains targeting different marketing segments. “The industry is ruled by the Control of Drugs and Cosmetic Regulations 1984 and is regulated by the National Pharmaceutical Control Bureau.”
In any retail shop provides cosmetics and personal care product. Highest retail value product in rank is Skincare product, especially for anti-aging and skin whitening. After that, bath & shower products, colour cosmetic products in four types such as eye, lip, face, nail and then come fragrance.
The personal care product market was a success on all counts in 2005-2006 with good performances from each of the Big 5 markets. However, In recent years growth in the personal care category is slowing, almost everywhere. Comparatively, the local cosmetics and toiletries industry is relatively getting smaller than international cosmetics. International brands such as Lancome, L'Oreal Paris, Olay, Estee Lauder, Clinique, Shisheido, Revlon and Max Factor play a dominant role in the upper-end market of Malaysia and the region. Local producers of cosmetics and toiletries are forced to concentrate on the production of middle- to low-price market products such as shampoo, hair care products, perfumes, skin care products. Many of the local cosmetic and toiletries companies are contract manufacturers for established brands. Malaysia exports her cosmetic products such as beauty creams and skincare products to Singapore, Hong Kong, Thailand, Japan, and Australia. Imported products are highly in demand as most of the middle and high-income earners associate imported products with higher quality than local brands. Consumer sophistication, urbanisation, effective product branding and advancement in technology are likely to enhance the development of this industry in the near future.
5.1.3 Development of the Industry
The cosmetic and personal care industry is combined of manufacturers of various cosmetic and personal care products. It retailers may distribute products intended to enhance one’s visage and/or be used for personal hygiene. These cosmetic and personal care items may be comprised of skin or sun lotions, as well as different forms of make-up, hair products, perfumes, oral care products, and shaving preparations. Cosmetic and personal care companies are responsible for the preparation, blending, compounding, and packaging of assorted beauty products and toiletry items. Buoyed by strong economic growth in 2003, the Malaysian cosmetics and toiletries market recorded sales of approximately US$800 million. Sales were sustained by increased urbanization, a rise in the number of women working, and aggressive marketing and promotional activities of the retailers. The numerous new product launches also signified that the market still has room for growth.
Companies in this industry have started to utilize media entertainment to promote their products quickly and effectively. Using the influence of popular television shows, movies, and other forms of entertainments to market their product is becoming an increasingly prevalent strategy in exposing their cosmetics to potential consumers. It expedites the process of providing consumers with product information.
Globally, the cosmetic industry continues to develop and the Internet also allows this industry to have further reach. Many cosmetic and personal care companies will sell their products online, which makes the process of choosing and purchasing easy. In addition, automated kiosks have begun to be showcased as new avenues for cosmetic and personal care supply and consumption. Similar to a vending machine, these kiosks provide another way for companies to generate profit.
Population growth and the wants and needs of the consumer are responsible for demand in this industry. Profitability of cosmetic and personal care companies is based upon an array of different factors: smooth operations, effective marketing strategies and the resulting product sales, innovations in production, specialization of products, and whether or not a company has advantages in manufacturing, buying, merchandising, and distribution.
5.2 The Marketplace
5.2.1 Current Condition of the Marketplace
The market of cosmetic and personal care in Malaysia is currently facing high competition where brands are trying to come up with best product with good packaging in order to beat the existing local and international brands in the market.
Nowadays, the color cosmetic market is dominated by international cosmetic brands such as L’Oreal, Maybelline etc. So it is very hard to attract consumers to buy a product from other color cosmetic and personal care brands but still these brands are up for a competitive challenge to grab market share such as Silkygirl, Stage etc.
Day by day, cosmetic and personal care industry increasing more and consumers are more aware about quality products, personal hygiene and neat appearance. To survive in the competition, the color cosmetic brands are coming up with more innovative idea and product in order to make a place in the market. That’s why currently; Silkygirl is promoting new products, TVC ad for different types of product, and so on.
5.2.2 Changes in Marketplace
Positive
· Increasing the competition level in the market makes a brand more aware of competitor’s steps and indirectly helps to come up with a good marketing strategy.
Negative
· Too many competitors and completions’ may lead in business loss and market share reduction if a brand failed to grab customers’ attention.
· Increasing the competition level in the market makes a brand more aware of competitor’s steps and indirectly helps to come up with a good marketing strategy.
Negative
· Too many competitors and completions’ may lead in business loss and market share reduction if a brand failed to grab customers’ attention.
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