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.

Profit can be defined as the reward in the industry. Luxury brands such as Hermes, Chanel, Dior, etc. Their history and principles have existed for years, even decades. These brands are popular in many places, which allows them to have a high profit as a result. Moreover, people who are wearing those brands also represent their reputation. 

The size of the fashion industry can be massive, which involves many people and money. In the US, which involves 22000 companies and 675000 people. (Sen A, 2008) Including growing cotton, fabric so on to retail which requires a lot of money and people. 

There are different sectors to perform different roles in the industry. In recent years, technology has involved the fashion industry, playing different positions such as marketing, and online fittings. Then the collected data will be analysed to allow the company to improve. This allows designers less workload and works differently from the traditional ways. (Sun L, Zhao L, 2017) During the COVID pandemic, many cosmetic brands use AI technology is elicited because of sanitising problems. Using AI technology to do skin testing become a topic. Then more and more companies use this technology for people to shop online as well so that they can order products online with the more accurate colour tone of foundation or lipsticks. 

Social media is also another tool that is important for being competitive. People nowadays mostly have more than one social media, and most of them look at it daily. By using social media, people are more often getting information passively, even people who did not search for it. (Hethorn J, Ulasewicz C, 2015) Companies can use interesting advertisements to attract people to consume, which is another selling point and method to attract customers. For example, Maybelline made an AI advertisement for their Sky High Mascara, which blew many people’s minds by using buses and buildings, tubes and tunnels to rematch with eyelashes and mascara.   

Furthermore, the dual leadership of partnering with the cultural and creative industry are more common nowadays. Building up small and medium-sized companies on these two basic foundations is more often to succeed in the industry. (Overdiek O, 2016) Nowadays, art and fashion are more linked and related together, such as putting fashion into museums and galleries. 

Reference : 

Sen A (2018) The US fashion industry : A supply chain review 

Sun L, Zhao L (2017) Technology disruptions: exploring the changing roles of designers, makers, and users in the fashion industry

Hethorn, J., & Ulasewicz, C. (eds). (2015). Sustainable Fashion: What’s Next? A Conversation about Issues, Practices and Possibilities. New York: Bloomsbury

Overdiek, Anja. (2016). Fashion designers and their business partners: Juggling creativity and commerce. 

 Profit was on the table this week, with money and economy being the core of society, profitability of a company is essential. Marketing and brand management were heavily discussed in addition, how to mix art and creativity with business and profitability.  In terms of the cosmetic industry, it brought in $100.5 billion worldwide for 2022(Killip, 2022). The market is also predicted to grow 6.85% per year from 2022-2026 (Killip, 2022).The various sectors of the cosmetic industry are Skincare/suncare products ,hair care,deodorants/fragrances, and makeup/color cosmetics(Rajput, 2021). In terms of their performance the biggest sector is skincare/suncare products (Rajput, 2021).Skincare reigns above the other sectors due personalized skincare trends, a wide variety of products, and active ingredients that have healed many people’s skin(Grand View Research, 2019). However, the haircare branch of cosmetics is estimated to grow, due to hair color change trending and hair and scalp issues rising (Grand View Research, 2019).Due to the giant market that is the cosmetic industry, many brands struggle with competition , in addition to uncertain economic times, focusing on strategy, content building, and understanding consumer behavior are recommended (Clausen, 2020). Other strategies like personalization , focus on trends , and localized production are also encouraged (Barnes , 2022).Function of Beauty is an example of a focus on personalization . Their brand is made to order hair care, based on the customer’s hair type and hair concerns(Function of Beauty, 2019).Another example is the brand Shiseido Japan, their focus was on localized production.This was accomplished through going online and opening up a flagship store. (Barnes , 2022).While making money is important to a brand, creativity is also essential. Creative directors bridge this gap, they manage the vision for the brand,align it to trends, and the current market (Mitterfellner, 2023). This job is important as keeping up with trends while still maintaining a brand image is key to success.Creative directors usually do multiple jobs in one, they are the brand ambassadors, the brand’s visionary and manager of multiple teams (Mitterfellner, 2023). In the world of fashion,Karl Lagerfield is a well known Creative dictator, he worked with Chanel and Fendi. Making their brands what they are today, from designing ionic logos like the “FF” for Fendi, or brand ambassador for channel( Mitterfellner, 2023).

Bibliography 

Barnes , S. (2022). How Can Beauty Brands Prepare For An Economic Downturn? [online] Fashion Industry Data and a Point-of-View. Available at: https://stylesage.co/blog/beauty-brands-economic-downturn/[Accessed 21 Oct. 2023].

Clausen, E. (2020). Council Post: Marketing Rules To Follow During Uncertain Economic Times. [online] Forbes. Available at: https://www.forbes.com/sites/forbesagencycouncil/2020/04/03/marketing-rules-to-follow-during-uncertain-economic-times/ [Accessed 19 Oct. 2023].

Function of Beauty (2019). Hair Care | Individually Filled | Function of Beauty. [online] Function of Beauty. Available at: https://www.functionofbeauty.com/(accessed October 21 2023)

Grand View Research (2019). Cosmetics Market Size & Share | Global Industry Analysis Report, 2025. [online] Grandviewresearch.com. Available at: https://www.grandviewresearch.com/industry-analysis/cosmetics-market.(accessed 19 October 2023)

Killip, S. (2022). Beauty & Cosmetics Market Size: Growth and Industry Trends| Attest Blog. [online] Attest. Available at: https://www.askattest.com/blog/articles/beauty-cosmetics-market-size#:~:text=In%202022%2C%20worldwide%20revenue%20from. (accessed 16 October 2023)

Mitterfellner, O. (2023). Luxury Fashion Brand Management. Taylor & Francis.

Rajput, N. (2021). Cosmetics Market. [online] Allied Market Research. Available at: https://www.alliedmarketresearch.com/cosmetics-market (accessed 19 October 2023)

One of the main goals of a business is to achieve a financial status where you gain an income that will benefit your spending for the company. This spending depends on the size of the business or the industry where you are competing against a variety of companies that produce the same products but manage to sell them in a creative way. The beauty industry is an example of the importance of creative marketing which shapes and manipulates consumers’ tastes and needs. (Mitterfellner, O.,2019) Making a difference in the industry helps to gain a bigger income which leads to a more successful brand. In this case diversity plays a big part in enhancing the workplace environment by broadening the employees’ perspectives. (Herring, Cedric, 2009) 

In the last 20 years Global Beauty Market has grown by 4.5% a year on average (CAGR), with annual growth rates ranging from around 3% to 5.5%. (Lopaciuk, Aleksandra, and Mirosław Loboda, 2019). These rates change because of geographical aspects depending on consumers’ needs. Also, with today’s technology social media is also an aspect that determines the industry’s flow and brands’ income.  

The Global Beauty Market is usually divided into five main business segments: skincare, haircare, color (make-up), fragrances and toiletries. (Lopaciuk, Aleksandra, and Mirosław Loboda, 2019) These are the sectors that the beauty industry performs where brands try to satisfy their costumers by individually taking care of these segments and producing products for people with different needs. Whilst coming up with new products brands also need to think about the marketing aspects of their work. 

Creative work came in hand especially when the world was experiencing a pandemic which started in 2020. (Brannen, Samuel, et al. 2020) Online ads were necessary for bradns to stay in touch with their consumers. Embracing social media and trends on the internet is the key for a brand to successfully put their products on the market to remain competitive. This creative work has to be managed well. 

Creative directors’ work is to understand the workflow of the company but also to analyze the consumers to find a balance between creativity and commerce. Putting a product on the market that will intrigue the consumers without making them bored of the product because of overselling is the way to a well profited brand that will survive in the industry. The brands who survive in the industry know that customers profit is their profit.  

https://marketsizes-mintel-com.arts.idm.oclc.org/snapshots/GBR/15/definitions/single

Accessed 21 Oct. 2023. 

Herring, Cedric. “Does Diversity Pay?: Race, Gender, and the Business Case for Diversity.” American Sociological Review, vol. 74, no. 2, 2009, pp. 208–24. JSTOR, http://www.jstor.org/stable/27736058. Accessed 22 Oct. 2023. 

Mitterfellner, O. (2019) Fashion Marketing and Communication: Theory and Practice Across the Fashion Industry, Taylor & Francis Group, Milton. Accessed 22 Oct. 2023. 

Lopaciuk, Aleksandra, and Mirosław Loboda. “Global beauty industry trends in the 21st century.” Management, knowledge and learning international conference. 2013. 

Brannen, Samuel, et al. Covid-19 Reshapes the Future. Center for Strategic and International Studies (CSIS), 2020. JSTOR, http://www.jstor.org/stable/resrep25198. Accessed 22 Oct. 2023. 

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 18^th 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 18^th October 2023)

Mintel (n.d.) Market Sizes. Available at: https://marketsizes-mintel-com.arts.idm.oclc.org/ (Accessed 21^st October 2023)

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/.

The first two pillars, planet and people, of the FBS gave us insight about how the consumer trends in the fashion and beauty industry are changing with the rise in “woke” Gen Z consumers and rapidly increasing urgency to develop sustainable methods of production and promotion in the fashion and beauty industry. Therefore, producing a profitable business with an effective supply chain strategy which can be responsive and responsible for the changing trends has turned out to be even more challenging than ever before (Christopher, et all. 2004).

According to McKinsey and Company, the global fashion industry was estimated to be worth between $1.7 trillion to $2.5 trillion. Wherein, the beauty industry was accounted for approximately $400 billion. (McKinsey and Company, 2021)

Taking into consideration the growth of beauty industry shows multiple variations in the different sectors. However, the korean cosmetic brands or the k-beauty has shown steady growth since the 1990s. The export turnover for the k-beauty in 2018 was $6.3 billion which increased to $7.2 billion in 2020. It was noticed that during the 90’s the korean cosmetics industry went through changes in the infrastructure as well as business models (Park, et all. 2022). 

From the fig. 1, deductions can be made regarding the growth of k-beauty industry over the years. Through a thorough analysis, it can be seen the body care sector of k-beauty industry has had a steady growth since 2017, with the peak growth being in 2021. The predictions for the k-beauty industry however doesn’t seem so favourably as the growth percentage of every sector has been predicted to be near zero.

In the Asia Pacific Business Review (2023), a case study on the leading k-beauty brand, COSMAX, showed how the brand underwent rebranding after almost filing for bankruptcy during the Asian Financial Crisis, 1997. COSMAX shifted its business model from OEM to ODM and formed a part with the Japanese brand Kolmar. COSMAX thus proved a change in business strategy could be a game changer in the business world. 

Nevertheless, a change in strategy could be brought upon by directors, creatives or creative directors. Taking into account, the appointment of Daniel Lee into Bottega Veneta has created a sensation on the fashion calendar as the most anticipated show. He is deemed to be the one to increase awareness regarding the brand, bringing in new consumers while giving the brand a brand-new reputation. (Österlund and Stenwall, 2020)

Therefore, to conclude, the third pillar of the FBS could be tackled easily with the application of right strategies and bringing in people with creative values of high regards. For a brand to withstand through uncertain times, it is necessary to develop a plan with long run benefits, though not necessarily one with extremely high returns, but one with schemes and methods to avert crisis.

REFERENCES

1. Christopher, M., Lowson, R. and Peck, H., 2004. Creating agile supply chains in the fashion industry. International Journal of Retail & Distribution Management, 32(8), pp.367-376
2. Di Vaio, A., Hassan, R., D’Amore, G. and Tiscini, R., 2022. Responsible innovation and ethical corporate behavior in the Asian fashion industry: A systematic literature review and avenues ahead. Asia Pacific Journal of Management, pp.1-45.
3. Kwon, Y.J., 2018, January. The emergence of k-beauty: rituals and myths of Korean skin care practice. In International Textile and Apparel Association Annual Conference Proceedings (Vol. 75, No. 1). Iowa State University Digital Press.
4. Österlund, I. and Stenwall, A., 2020. Dismantling the Creative Director: a media content analysis of creative directors Daniel Lee and Simon Porte Jacquemus.
5. Park, Y.W., Hong, P. and Shin, G.C., 2022. Rising and thriving in the post COVID-19 era: a case study of COSMAX, a leader of the Korean cosmetic industry. Asia Pacific Business Review, pp.1-20.
6. Saeed, N., 2021. Western buying behavior of Korean beauty products: Passing trend or permanent shift?.
7. State of Fashion, 2021. McKinsey and Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion