Cosmetics, Beauty Supply & Perfume Stores
- ID: 541134
- May 2016
- Region: United States
- 10 Pages
- First Research
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 US companies include Sally Beauty Supply, Ulta, Sephora, and divisions of L Brands (Bath & Body Works, Victoria's Secret) and LOreal (The Body Shop International).
Global sales of beauty products across all channels are expected to reach about $265 billion by 2017, according to Lucintel. Developing countries identified as ripe for retail expansion by consulting firm A.T. Kearney include Brazil, Chile, Uruguay, China, United Arab Emirates, Armenia, and Georgia.
The US cosmetics, beauty supply, and perfume stores industry includes about 16,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $16 billion. Sales of prestige beauty products -- those sold mainly in department stores -- grew 3% in 2014 versus 2013, according to The NPD Group. Makeup sales increased 6% (driven by lip color), while fragrance dollars grew 2% and skincare inched up 1% over the same period.
Companies specializing in professional beauty products may restrict sales to salons and salon professionals, due to manufacturer policies. Salons may resell products to the public or use products for customer treatments.
Demographics, consumer spending, and fashion trends drive demand. The profitability of individual stores depends on the ability to generate store traffic and effective merchandising. Large companies can offer a wide selection of products, and have advantages in purchasing, distribution, and marketing.
Quarterly Industry Update
Call Preparation Questions
Web Links and Acronyms