Analyze The Cosmetics Market


(1) The goals and tasks of the enterprise

In the current market, cosmetics have become one of the most active consumer products in the market. The cosmetics brand with the highest usage rate on the market is Avon, followed by the global cosmetics giant L’Oreal.

(2) Market status and strategies

  1. Current market conditions

With the improvement of people’s living standards, people’s demand for cosmetics is also increasing. The sales of the cosmetics market grows at an average rate of 23.8%, with the highest year reaching 41%. This shows that cosmetics is an industry with great potential.

XXX cosmetics has entered the increasingly competitive cosmetics market by virtue of its highly competitive high-tech, high-quality and unique natural plant ingredients. However, in the face of the strong and strong market influence of well-known brands such as Avon, Maybelline, Olay, ZA, etc. Whether consumers are willing to accept new products with high-quality new concepts will be a great test for the new brand of “XXX”.

Especially as the world’s leading cosmetics company-L’Oréal, with its product portfolio covering high, middle and low-end markets, has achieved the No. 1 market share in China, so L’Oréal’s potential in the Chinese market cannot be underestimated.

Compared with brands such as “Avon” and “L’Oreal”, we have problems such as weak brand power and low publicity.

  1. Marketing strategy description

At present, with the rapid development of cosmetics in the Liaoning market, to compete with big brands such as “L’Oreal”, we must have product audience, recognition, strong publicity and flexible price system.

“Xxxx” products have natural plant ingredients, mild and low irritation, no fragrance, no coloring, no preservatives. Each raw material is derived from pure natural plants, making its formula suitable for any skin.

Product sales channels are mainly specialty stores, hypermarkets, supermarkets, pharmacies, and adhere to the “high-quality and low-price” business strategy, combined with a comprehensive membership service network system, and aspire to build “Mei Jiafen” into a well-known brand in the cosmetics industry in China

(3) Main competitors and their advantages and disadvantages

At present, the main competitors in the market are “L’Oreal” and other brands like “ZA” and “UNES”. Now analyze the advantages and disadvantages of “L’Oreal”:


a. High reputation and market share.

b. Have diversified brands.

c. Comprehensive expansion and centralized market distribution.

d. Organizational flexibility and adaptability.


a. The price of products with the same function is high.

b. Brand extension, high risk.

c. High content of hormones and heavy metals, corrosive to the skin.

(4) External environment analysis

  1. Economy

With economic growth, the cosmetics industry has become one of the fastest growing industries in the national economy, and many internationally renowned cosmetics brands have entered China. At the same time, the rapid rise of cosmetics companies has made the cosmetics market very competitive. However, whether it is “Avon” or “L’Oréal”, the major international brand, it uses mostly chemical substances such as lead, mercury, alkali, and heavy metals, but it does not put natural effects in the first place. The “xxxx” brand focuses on ingredients and effectiveness.

Gentle, refreshing and super clean. Solve skin problems from various angles in an oriental unique way. The market appearance rate of similar products is low, the prospect is good, and the development space is large.

Even if the US subprime debt crisis triggered fluctuations in the global economy, it would affect the stable development of the global cosmetics market. However, under such a background, my country’s cosmetics market is still showing a strong development trend. Especially in Liaoning Province, mild weather conditions are more suitable for using this kind of products, which is beneficial for thorough and perfect skin care. Therefore, strengthening brand awareness plays a particularly important role in the competition of this product.

  1. Laws and regulations

According to statistics from the first academic report of the beauty industry “China Beauty Economy Annual Report”, the number of consumer complaints about beauty and cosmetics reached 28,481, ranking third in various industries in the country; according to the development of the cosmetics industry and the existence of cosmetics Regarding health issues, the Ministry of Health once again organized and revised the “Hygiene Standards for Cosmetics”, which was officially released on January 4, 2007. The appearance of incidents such as the occurrence of excessive mercury in cosmetics such as “Doctor Li” and “Yaqian” of SK-Ⅱ’s five unknown ingredients has greatly damaged the brand image. It can be seen that the safety of cosmetics plays a decisive role in the survival of a brand.

  1. Cost

Affected by the impact of the world economic crisis and the exchange rate of RMB, international crude oil prices have risen instead of falling, and have remained high for a long time, triggering an overall increase in the global raw material prices, resulting in a subsequent increase in the price of the entire daily consumer goods. Use the strategy of targeting Chinese local brands. Strive to occupy the purchasing power of the masses in the middle and low-end markets. Therefore, we must improve production efficiency, gather scientific and medical talents, and reduce costs on the premise of strict quality assurance to ensure maximum profits.

  1. Competition

At present, there are many brands of natural essence cosmetics in the Liaoning market, such as Shuizhiao, Naturetang, Baicaolan, etc., but the products with higher market share are still concentrated in brands with deep consumer influence such as Avon and L’Oreal. With the development of my country’s economy, people’s requirements for the quality of life are getting higher and higher, and the concept of cosmetics has far exceeded the requirements of only beauty but not support. Therefore, pure natural cosmetics occupies a lot of room for development in the market.

  1. Technology

A professional cosmetics research and development institution has introduced internationally advanced cosmetics production technology and equipment. It fully respects the production management model of international cosmetics companies and introduces high-tech and high-quality cosmetics with strong competitiveness into China.

  1. Social factors

The skin of modern people suffers from internal body problems caused by irregular diets and excessive mental stress, the worsening external environment, ultraviolet rays and computer radiation, and more and more cosmetics, lead, mercury, heavy metals and other toxic chemicals Germany seriously exceeded the standard.

The effects of both internal and external problems force our skin to begin to age prematurely, with multiple problems such as fine lines and spots. The problem of saving the skin is imminent! Therefore, people are eager to seek skin care products that do not harm the skin, but also have a lasting care and maintenance effect. And the component of xxxx just copes with this. Therefore, the consumer market for such products occupies a lot of space.

(5) Analysis of internal environment

  1. Advantages

This product is aimed at female consumers aged 15-50, with a high age coverage. The product price is 100-200 yuan, and the product is completely natural ingredients, suitable for any skin type. It is in line with today’s consumer philosophy of “only buy and not buy expensive”.

  1. Disadvantages

This product is made of pure natural ingredients, so there are strict requirements in the process and method of use. If the consumer uses the method improperly, it will lose its proper function. For example, high concentration of L-vitamin C can cause sun allergy and cannot be used during the day. Furthermore, due to the deep-rooted image of brands such as L’Oreal among consumers, the market cannot be expanded on a large scale. In addition, the investment in advertising and other publicity is small, and the market pull is small.

  1. Expected changes

Change the marketing strategy, focus on “compositionalism”, increase publicity, improve the level of technology and medical technology, expand the major markets in Liaoning, penetrate the brand into various cities, and avoid nearly saturated shopping malls in order to save market costs , First use the Internet as the main propaganda tool to open up the market and seek development.

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