일반산업
Industry Early Warning Series (11) : Outlook and Risk Analysis of Domestic Cosmetics Market
2010-05-10AHN, Hey-Young
목차
요약
Outlook of Domestic Cosmetics Market
As cosmetics are recognized as one of the essential consumer products, the market
is growing fast regardless of economic conditions
The domestic cosmetics market has grown 10% annually on average for the recent three years, amounting to 7.4 trillion won in 2009
As cosmetics are gradually recognized as one of the essential consumer products, the market is growing fast regardless of economic conditions. Consumption bipolarization has also contributed to the growth of both premium and affordable cosmetics brands
Premium cosmetics and brand shop cosmetics has led a fast growth trend in the overall cosmetics market
The premium cosmetics market, accounting for 50% of the domestic cosmetics market, has grown by double digits on average for the recent three years. Top two domestic cosmetics companies and import cosmetics companies has led such growth
The brand shop cosmetics market has grown nearly 30% annually on average for the
past three years due to strengthened product line, increased participation by large companies, benefits from economic slowdown, etc. However, as leading companies have increased their market share, brand shop cosmetics companies which has entered late into the market and new starters are competing fiercely
The online and home shopping cosmetics market is small in terms of distribution channels.
However, since entry barrier is relatively low, mid-to small-sized cosmetics companies are actively enter into the niche market of the cosmetics industry, contributing to the growth of the domestic cosmetics market
Future Competitive Structure Change and Risk Analysis
In 2010, the cosmetics market seems to see a change in competitive structure
As LG Household & Health Care took over a domestic brand shop cosmetics company, The Face Shop, late last year, this will create synergic effects such as external expansion and advance into affordable cosmetics market. Accordingly, competition between LG and its major competitor, Amore Pacific, will heat up and the dominance of the tow companies will grow further in the market
Meanwhile, amid LG's takeover of one of the leading brand shop cosmetics company,
The Face Shop, such leading brand shop cosmetics companies as Misha and Skin Food will compete more fiercely to dominate the market
In addition, due to fast growth of the cosmetics market, mid-to small-sized companies
are attempting to make a comeback in the market by entering into new sales channels. As small-sized home appliance manufacturers also attempt to advance into the cosmetics market, competition between mid-to-low-ranking companies will heap up.
As such a competitive structure change have a negative impact like fiercer competition, those with weak competitiveness will fall behind in the market. Accordingly, risk management is expected to be required
As leading companies have expanded their influence to the entire channels, mid ranking companies are highly likely to fall behind in the market. Since their movement to new distribution channels seems to be risky, constant monitoring is required
In the brand shop market, as leading companies continuously have a dominant position, more companies entering into the market will lead to fierce competition. As a result, risk management, mainly by mid-to-low-ranking companies which has seen sales growth slowdown, is required
As cosmetics are recognized as one of the essential consumer products, the market
is growing fast regardless of economic conditions
The domestic cosmetics market has grown 10% annually on average for the recent three years, amounting to 7.4 trillion won in 2009
As cosmetics are gradually recognized as one of the essential consumer products, the market is growing fast regardless of economic conditions. Consumption bipolarization has also contributed to the growth of both premium and affordable cosmetics brands
Premium cosmetics and brand shop cosmetics has led a fast growth trend in the overall cosmetics market
The premium cosmetics market, accounting for 50% of the domestic cosmetics market, has grown by double digits on average for the recent three years. Top two domestic cosmetics companies and import cosmetics companies has led such growth
The brand shop cosmetics market has grown nearly 30% annually on average for the
past three years due to strengthened product line, increased participation by large companies, benefits from economic slowdown, etc. However, as leading companies have increased their market share, brand shop cosmetics companies which has entered late into the market and new starters are competing fiercely
The online and home shopping cosmetics market is small in terms of distribution channels.
However, since entry barrier is relatively low, mid-to small-sized cosmetics companies are actively enter into the niche market of the cosmetics industry, contributing to the growth of the domestic cosmetics market
Future Competitive Structure Change and Risk Analysis
In 2010, the cosmetics market seems to see a change in competitive structure
As LG Household & Health Care took over a domestic brand shop cosmetics company, The Face Shop, late last year, this will create synergic effects such as external expansion and advance into affordable cosmetics market. Accordingly, competition between LG and its major competitor, Amore Pacific, will heat up and the dominance of the tow companies will grow further in the market
Meanwhile, amid LG's takeover of one of the leading brand shop cosmetics company,
The Face Shop, such leading brand shop cosmetics companies as Misha and Skin Food will compete more fiercely to dominate the market
In addition, due to fast growth of the cosmetics market, mid-to small-sized companies
are attempting to make a comeback in the market by entering into new sales channels. As small-sized home appliance manufacturers also attempt to advance into the cosmetics market, competition between mid-to-low-ranking companies will heap up.
As such a competitive structure change have a negative impact like fiercer competition, those with weak competitiveness will fall behind in the market. Accordingly, risk management is expected to be required
As leading companies have expanded their influence to the entire channels, mid ranking companies are highly likely to fall behind in the market. Since their movement to new distribution channels seems to be risky, constant monitoring is required
In the brand shop market, as leading companies continuously have a dominant position, more companies entering into the market will lead to fierce competition. As a result, risk management, mainly by mid-to-low-ranking companies which has seen sales growth slowdown, is required