profit

According to a research study conducted by Statista (2023), it is discovered that the worldwide cosmetic market is projected to reach a value of $625.5 billion by the end of 2023. Current trends indicate that the cosmetic industry has the potential for further growth, with an anticipated annual growth rate of 3.32% if consumers were to continue to increase their expenditures (Statista, 2023). Among all sectors in the beauty segment, skincare emerge as the predominant sector, acquiring a significant market share of 42% (Statista, 2023). This is influenced by the increasing awareness in beauty and self-care among global consumers which led to the growing value in skincare sectors. Consumers are actively pursuing skincare goods with the aim of attaining healthy skin, youthful appearance, and addressing specific skin concerns. 

Despite the current substantial growth cosmetic industries has been experiencing, many of them had expierieinced a serious downfall during the uncertain economic period of COVID-19. The use of makeup and fragrance become less important due to remote working, physical distancing protocols, and the obligatory use of face mask. Global sales of color cosmetics declined by 22 percent, whereas sales of the overall beauty products had a reduction of 15 percent (Marchessou and Spagnuolo, 2021). In response to this, many businesses transitioned towards digital platforms in order to effectively attract the attention of current and potential customers. Additionally, lockdown measures allowed people to have the opportunity to prioritize and dedicate attention to their skincare routine. As a result, consumers are increasingly shifting their preferences towards skincare products, resulting in a decrease in demand for color cosmetics (Sewell, 2020). Consequently, business had to reassess their retail offerings and modify their products to cater the needs and wants of customers. 

In order to compete within the dynamic and highly competitive market, it is essential for beauty industries to incorporate creative strategies. This requires a creative director that is capable of comprehending the brand’s visual identity and aligning with the preferences of current customers and the business perspective of management (Mitterfellner, 2023). In 2017, Chanel created pop up stores in several cities such including Tokyo, Toronto, Shanghai, and SIngapore as a part of their promotional campaign for the release of the new Rouge Coco Gloss. This marketing strategy has the potential to generate significant brand visibility within a limited timeframe, therefore enhancing the brand’s value and subsequently driving sales growth.

Chanel’s Coco Cafe Pop Up Store (Go—PopUp Magazine, 2017)

Reference List 

Marchessou, S. and Spagnuolo, E. (2021). Taking a good look at the beauty industry | McKinsey. [online] www.mckinsey.com. Available at: https://www.mckinsey.com/industries/retail/our-insights/taking-a-good-look-at-the-beauty-industry.

Mitterfellner, O. (2019) Fashion Marketing and Communication: Theory and Practice Across the Fashion Industry, Taylor & Francis Group, Milton.

Statista (2023). Beauty & Personal Care – Worldwide | Statista Market Forecast. [online] Statista. Available at: https://www.statista.com/outlook/cmo/beauty-personal-care/worldwide.

Sewell, I. (2020). Covid-19 and the beauty industry Where are we now, and what comes next? [online] Available at: https://www.thembsgroup.co.uk/wp-content/uploads/2020/07/Covid-19-and-the-beauty-industry_.pdf.

Image Reference List 

Go—PopUp Magazine. (2017). Welcome to the Coco Café. [online] Available at: https://magazine.gopopup.com/en/welcome-to-the-coco-cafe/.