Inglot Cosmetics: How a small firm with vision successfully challenged established business rules

  • ID: 2894085
  • Company Profile
  • 26 pages
  • MarketLine
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Introduction

Inglot Cosmetics (Inglot), a Polish cosmetics company founded in 1983, has evolved from a company known for selling cheap, powdery eye shadow trios in Polish supermarkets to one of the most internationally recognizable Polish consumer brands. It has achieved this while financing its growth solely with revenues from current operations and relying on word-of-mouth marketing.

Scope of this research
This case study identifies the size, growth, drivers and leading players in the global make-up market.
Looks at the future growth prospects of the global make-up market with forecasts.
Compares sales categories within the global make-up market.
Examines the opportunities presented by Halal cosmetics.

Research and analysis highlights

The global make-up market is driven by increasing demand for advanced and sophisticated cosmetic products. While many Western cosmetics markets are reaching their saturation point, emerging and developing economies present lucrative revenue opportunities. Halal cosmetics are rising as one of the fastest growing consumer segments in the world.

Inglot Cosmetics started as a chemical producer and within only a few years, taking advantage of the changing political situation in Poland, the company became a large cosmetics manufacturer with a presence at all major beauty gatherings and events around the globe.

Within 20 years Inglot expanded rapidly and established its presence on six continents, in more than 57 countries. Its growth strategy relies solely on a franchise model. At present, Inglot is a record-setter among Polish firms selling abroad. Its breathable nail polish formula, called O2M, became a surprise hit with Muslim women.

Key reasons to purchase this research
How is Inglot successfully challenging established business rules to fight for a place in a difficult market?
What are the threats and opportunities in global make-up market?
Who are the main competitors and the main selling categories within the global make-up market?
What are the main growth drivers of the global make-up market?
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Note: Product cover images may vary from those shown
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Overview 2

Catalyst 2

Summary 2

Opportunities in global make-up market 7

Global make-up market expected to grow with CAGR of 4.8% 7

Face make-up sales generate over one third of market revenues 8

L'Oreal leads global make-up sales 8

Cosmetics sales driven by increasing demand for multi-purpose products 9

Demand for Halal make-up increasing at double digit rate 10

Lack of certification challenging growth of Halal market 10

Inglot: small firm with big vision 11

Inglot riding the wave of Polish business creation 11

Fast response to increased competition brought by liberalization 11

Own distribution network brings better sales margins 12

Betting on quality allows savings on advertising 13

A bit of patriotism that makes financial sense 14

Fashion brand quality almost at a drugstore price 15

Freedom system offers over 3 billion combinations of colors 15

Inglot becomes the most recognizable Polish consumer brand 18

Exploiting the potential of American markets 18

Make-up prices tripled in Middle East 18

Pray without worry with breathable nail polish formula 18

Banking on increasing consumer affluence in Asia-Pacific 20

Expansion model hinged on franchising proves profitable 20

Inglot breaks the pattern and becomes the most recognizable Polish consumer brand globally 20

Inglot's revenue increased by 40% in 2011 21

Concerns about the future after Mr. Inglot's sudden death 21

Conclusions 22

Challenging established business rules to fight for a place in a difficult market 22

Inglot proves small brand can succeed in a highly competitive industry 22

Change of ownership may challenge Inglot's further growth 22

Appendix 23

Definitions 23

Sources 23

Further Reading 24

Ask the analyst 25

About 25

Disclaimer 25

List of Tables::

Table 1: Global make-up market revenues, 2008-13; ($bn) 7

Table 2: Projected global make-up market revenues, 2014-18; ($bn) 7

List of Figures:

Figure 1: Global make-up market – segmentation by category, 2013 (%) 8

Figure 2: Global make-up market – segmentation by category, 2013 (%) 9

Figure 3: Inglot Cosmetics 12

Figure 4: Inglot stores 13

Figure 5: Inglot billboards 14

Figure 6: Inglot Cosmetics range of products 15

Figure 7: Inglot Freedom System 16

Figure 8: Inglot Virtual Color makeover platform 17

Figure 9: Inglot O2M Breathable Nail Enamel 19
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