- Published: July 2014
- Region: Global
Cosmetics, Beauty Supply & Perfume Stores in the US
- Published: May 2014
- 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 Limited Brands (Bath & Body Works) and LOreal (The Body Shop International).
The US cosmetic, beauty supply, and perfume store (beauty store) industry includes about 15,000 stores with combined annual revenue of about $13 billion. Growth drivers include consumer spending and fashion trends.
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.
PRODUCTS, OPERATIONS & TECHNOLOGY
Cosmetics, face cream, and perfume make up about 75 percent of industry sales, while 20 percent come from hygienic products such as deodorant,... SHOW LESS READ MORE >
Quarterly Industry Update
Call Preparation Questions
Web Links and Acronyms