Cosmetics, Beauty Supply & Perfume Stores

Cosmetics, Beauty Supply & Perfume Stores

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate physical retail establishments that primarily sell cosmetics, beauty supplies and toiletries, and perfume. Major companies include Bath & Body Works, Sally Beauty, and Ulta Beauty (all based in the US), along with Natura Cosméticos (Brazil), Sephora (France), and The Body Shop (UK).

COMPETITIVE LANDSCAPE

High margins, repeat purchases, easy storage, and cheap shipping all serve to make the retailing of cosmetics, beauty supplies, and perfume highly attractive -- and highly competitive. Established competitors for cosmetics, beauty supply, and perfume stores include department stores, mass merchandisers, drug stores, TV shopping networks, internet retailers, distributors, supermarkets, manufacturers, and salons. In-home sales providers such as Avon and Mary Kay also compete in the direct sales channel. In addition, some beauty stores compete with dermatologists, plastic surgeons, and spas in the high-end market for cosmetics and skin care. Subscription beauty product services such as Allure Beauty Box and Birchbox are gaining in popularity, especially among younger buyers.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include cosmetics and fragrances (more than 60% of the industry revenue), followed by personal hygiene supplies (about 20%), as well as hair care services (less than 10%). Other products include women's clothing, accessories for men and women, costume and novelty jewelry, and women's clothing.