Cosmetics, Beauty Supply & Perfume Stores
- ID: 541134
- July 2015
- Region: United States
- 10 Pages
- First Research
Brief Excerpt from Industry Overview Chapter:
Companies in this industry 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).
The global beauty care industry is forecast to reach some $265 billion by 2017, according to Lucintel. Some US-based retailers have a significant presence internationally.
The US cosmetics, beauty supply, and perfume stores (beauty stores) industry includes about 15,000 stores with combined annual revenue of about $14 billion.
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. Small companies can compete effectively by selling specialty products, providing superior customer service, or serving a local market. The US industry is concentrated: the top 50 companies have about 75 percent of industry revenue.
Major competitors include department stores, mass merchandisers, drug stores, TV shopping networks, Internet retailers, distributors, supermarkets, manufacturers, and salons. In addition, some beauty stores compete with dermatologists and plastic surgeons in the high-end market for cosmetics and skin care....