Industrial Analysis of the Cosmetic Industry and Investigation of New Business Models for Enterprises
Date Issued
2006
Date
2006
Author(s)
Lai, Huey-Min
DOI
zh-TW
Abstract
The cosmetic industry, which encompasses make-up, skin and hair care, fragrances, cosmetic surgery, and body shaping products ranging from daily toiletry to luxury fashions, is growing at an average of 7% per year with current global market of $ 160 billion. The growth rates of the cosmetic industry are even higher in emerging countries which come up to 12~15%. Just imagine that the Americans spend more each year on beauty than they do on education, one realizes the amazing development of this industry ever since the World War II.
The traditional cosmetic industry in Taiwan has long been suffered from no branding, small market and weak R&D capability thus faces difficulties in survival. However, with the increasing power of purchasing, technology progress, and the conceptual changes in personal care, more and more new transformers are entering this industry. Nevertheless, none seems to be successful in terms of making good profits or being internationally well recognized. To be commercially profitable, new business entities must look into the characteristics and current market players and be aware of their positions. Therefore, it is the purpose of this thesis to analyze the key success (or failure) factors of interested companies and future trends based on customer needs to propose a feasible new business model.
The proposed business model in this study is to create add-on value along the value chain of the industry based on the particular regional resources and knowledge of Chinese herbals and medicine. This evidence-based core tech may bypass the vast patent territories claimed by international big competitors and becomes an important platform for regional cosmetic industrial players. It may also attract certain group of loyal customers and develop brands. This innovative business model characterizes itself by unique functional formulation and product portfolios. This study also covers model investigation for new cosmetic business to gain profits and the strategies of how.
Subjects
化 菻O養品產業
藥 菻~
產業分析
商業模式
Cosmetics
Cosmeceuticals
Industrial Analysis
Business Model
Type
other
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