Profit
The profit pillar focuses on the economic side of the business. Every business has the goal to achieve economic growth in a sensible manner.
In 2022, it was reported that the cosmetics industry was at $262.21 billion, and it is expected to expands at an annual rate of 4.2% from 2023 to 2030 (Grand View Research, 2023). Figure 2a shows a bar chart which represents the value of cosmetic products from 2020 to 2030, where a massive increase can be noticed inbetween those years.
In the cosmetics industry, there are numerous sectors, such as:
- Body care
- Colour cosmetics
- Fragrances
- Hair colourants
Figure 2b shows a spreadsheet of the global retail market value of the body care sector, from 2011 to 2027.
Figure 2b: Body Care Retail Market Value Spreadsheet (Mintel, n.d.)
Figure 2c shows a spreadsheet of the global retail market value of the fragrances sector, from 2008 to 2027.
In brief, it is shown that the fragrances sector has a better performance than the body sector. This is shown by the fragrance sector having a larger market value every year in all locations, compared to the body care sector.
Both the fashion and cosmetics industries have been affected economically by the COVID-19 pandemic, but also by the war in Ukraine. It is shown in the present that many fashion and beauty brands are finding it difficult to adapt to the changes that have appeared after the pandemic. Because of this, 30% of the beauty industry market has shut down during lockdown. Therefore, it is important that fashion and beauty brands plan to navigate the potential risks that can take place in the following years (Amed et al., 2022).
Because of this sudden change, Charlotte Tilbury has found a method to remain competitive. During the pandemic, Charlotte Tilbury has introduced a new service, which allows the customer to shop and checkout live in a one-to-one virtual beauty consultation. This service has attracted many customers, as beauty experts working for the brand have helped individuals to find the ideal makeup match, no matter the occasion it is for (Walter, 2020).
It can be very difficult for fashion and beauty companies to stand out – this is because it is important for a brand to be unique; however, it is often hard to keep its uniqueness. Therefore, it is important for creative directors to have a vision of the brand and stick to it. This is where creativity is important. In a brand, creativity represents the action of continuous innovation and the implementation of new ideas, and is also the most essential skill that should be used when launching a product (Custom Boxes, 2020).
Reference list
Amed, I., Andre, S., Balchandani, A., Berg, A. & Rolkens, F. (2022) The State of Fashion 2023: Holding onto growth as global clouds gather. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion (Accessed 21st October 2023)
Custom Boxes (2020) Importance of Creativity in the Cosmetic Industry. Available at: https://customboxesdesign.mystrikingly.com/blog/importance-of-creativity-in-the-cosmetic-industry (Accessed 21st October 2023)
Grand View Research (2023) Cosmetics Market Size, Share & Trends Analysis Report By Product (Skin Care, Hair Care, Makeup, Fragrance), By End-User (Men, Women), By Distribution Channel, By Region, And Segment Forecasts, 2023-2030. Available at: https://www.grandviewresearch.com/industry-analysis/cosmetics-market#:~:text=Report%20Overview,4.2%25%20from%202023%20to%202030 (Accessed 18th October 2023)
Walter, A. (2020) Charlotte Tilbury takes online shopping to new heights. Available at: https://www.beautydirectory.com.au/news/digital/charlotte-tilbury-takes-online-shopping-to-new-heights (Accessed 21st October 2023)
Image Reference List
Grand View Research (2023) Cosmetics Market Size, Share & Trends Analysis Report By Product (Skin Care, Hair Care, Makeup, Fragrance), By End-User (Men, Women), By Distribution Channel, By Region, And Segment Forecasts, 2023-2030. Available at: https://www.grandviewresearch.com/industry-analysis/cosmetics-market#:~:text=Report%20Overview,4.2%25%20from%202023%20to%202030 (Accessed 18th October 2023)
Mintel (n.d.) Market Sizes. Available at: https://marketsizes-mintel-com.arts.idm.oclc.org/ (Accessed 21st October 2023)