Profit
The profit pillar can be described as highlighting the importance of how when new profit models are being released and that these profit models should be more than able to empower prosperity for consumers as well as any potential stakeholders. When a business adapts to a new profit model, they should be able to curate innovative ideas within this model to highlight their awareness on different growth or degrowth perspectives. Additionally a business model’s source of income should be obtained in an ‘eco-conscious’ way in terms of how they source materials for their business, whether or not they are generated from either the planet or the people. A business needs to be ‘truly eco-conscious’ to secure consumer trust (www.mmi-analytics.com, n.d.).
The cosmetic industry market size can be seen as valuing at ‘USD 262.21 billion in 2022 and is expected to expand at a compound annual growth rate of 4.2% from 2023 to 2030’ (www.grandviewresearch.com, n.d.). From this we are able to analyse how different sectors of the industry have been performing over the years. In figure 1a it highlights the global retail market value of the body care sector from 2011 to 2027 and in figure 1b it presents the global retail market value for the colour cosmetics sector. Through further analysis of these figures it can be concluded that the body care sector (figure 1a) shows it has a greater market value annually in comparison to the colour cosmetics sector (figure 1b).
Figure 1a: Body Care: Retail market value in USD (Mintel Market Sizes, 2023)
Figure 1b: Colour Cosmetics: Retail market value in USD (Mintel Market Sizes, 2023)
For a brand to remain competitive during uncertain economic times, their main focus should consist of how they are able to adapt to these unforeseen circumstances in a creative and unique way. A unique example of this can include how during the 2020 COVID-19 pandemic, the cosmetic company Charlotte Tilbury had provided customers with an offer ‘to engage with a range of new virtual beauty experiences on its website’ in response to the lockdowns the UK was facing at the time. These ‘free virtual beauty consultations’ which ‘lasted for 15 minutes’ allowed customers to have the opportunity to ‘talk to a beauty expert one-to-one, view samples and pay for products live.’ (Walker, 2020)
In order for a creative director to be able to bridge the gap between creativity and commerce, a key priority is for this brand to stand out with their uniqueness and individuality compared to other brands. However this can also be seen as difficult as a brand can have limitations to the length of creativity they may be able to reach due to economic factors during that time. Therefore it can be seen as imperative for a creative director to have a blueprint of their own unique brand and thus they should be able to stick to this throughout the life of their brand.
References:
Mintel Market Sizes (2023). Body Care. [online] Mintel Market Sizes. Available at: https://marketsizes-mintel-com.arts.idm.oclc.org/query/201758161/performance/market
[Accessed 22 Oct. 2023].
Walker, G. (2020). Charlotte Tilbury unveils suite of new virtual beauty experiences. [online] TheIndustry.beauty. Available at: https://theindustry.beauty/charlotte-tilbury-unveils-suite-of-new-virtual-beauty-experiences/ [Accessed 22 Oct. 2023].
www.mmi-analytics.com. (n.d.). How Are Beauty Brands Embracing a Circular Economy? [online] Available at: https://www.mmi-analytics.com/blog/how-are-beauty-brands-embracing-a-circular-economy#:~:text=From%20Chanel%20to%20Byoma%20to.
www.grandviewresearch.com. (n.d.). Cosmetics Market Size, Share & Growth Report, 2028. [online] Available at: https://www.grandviewresearch.com/industry-analysis/cosmetics-market#:~:text=Report%20Overview.