Cosmetics and Products
AVON
-STUDY CASE-
Analiza contextului global al afacerilor prin prisma factorilor de impact asupra industriei cosmeticelor
The cosmetic industry is one of which products tend to be countercyclical. Demand for such products normally remains constant and unaffected by economic distress. The color cosmetics are predicted to see a slowdown in volume demand. A growing trend in the cosmetic industry is the introduction of ‘green’ products. More than one in seven (16%) of global beauty products launched in 2008 were certified organic, ethical or natural. There are concerns that the global economic climate will stifle new product development, innovation and sustainability programs in 2009. An economic slowdown usually curbs companies from investing in research and development and it is that research that has brought forth a wealth of green cosmetics. For example, retailers such as Wal-Mart are increasingly requiring more ecofriendly supply chain. There are forecasts that consumers are unlikely to give up their commitments to organic products just to save a few pennies. 68% of consumers will remain loyal to a company that has a social and environmental commitment. Many consumers are now ‘voting with dollars’ for organic products and supporting brands that support values similar to their own.
Economic factors mainly affect the purchasing power of customers. The more customer demand for the product the more profit to the organization, at the same time if there is no customers demand it’s going to affect the organization in a negative manner. So economic factors are very important external factors and affect the cosmetic industry. Economic factors include:
Unemployment rate,
Economic growth rate,
Interest rate.
Other factors that influence the cosmetic industry are the government and legal basis.
Also for AVON some of the risk factors are:
Success depends on our ability to execute fully our global business strategy,
May experience financial and strategic
-STUDY CASE-
Analiza contextului global al afacerilor prin prisma factorilor de impact asupra industriei cosmeticelor
The cosmetic industry is one of which products tend to be countercyclical. Demand for such products normally remains constant and unaffected by economic distress. The color cosmetics are predicted to see a slowdown in volume demand. A growing trend in the cosmetic industry is the introduction of ‘green’ products. More than one in seven (16%) of global beauty products launched in 2008 were certified organic, ethical or natural. There are concerns that the global economic climate will stifle new product development, innovation and sustainability programs in 2009. An economic slowdown usually curbs companies from investing in research and development and it is that research that has brought forth a wealth of green cosmetics. For example, retailers such as Wal-Mart are increasingly requiring more ecofriendly supply chain. There are forecasts that consumers are unlikely to give up their commitments to organic products just to save a few pennies. 68% of consumers will remain loyal to a company that has a social and environmental commitment. Many consumers are now ‘voting with dollars’ for organic products and supporting brands that support values similar to their own.
Economic factors mainly affect the purchasing power of customers. The more customer demand for the product the more profit to the organization, at the same time if there is no customers demand it’s going to affect the organization in a negative manner. So economic factors are very important external factors and affect the cosmetic industry. Economic factors include:
Unemployment rate,
Economic growth rate,
Interest rate.
Other factors that influence the cosmetic industry are the government and legal basis.
Also for AVON some of the risk factors are:
Success depends on our ability to execute fully our global business strategy,
May experience financial and strategic