Harely DavidsonEssay title: Harely DavidsonIntroductionNowadays, cosmetic products are easy to find and to purchase. They are used by every American people on a daily basis and enjoy universal acceptance among both genders. The market is huge and offers a wide range of opportunities for businesses. The industry is definitely very significant for the nation’s economy.
The sector accounts for a large part of the United States GDP and it is expected to generate a $36 billion business in 2005. It has been one of the fastest growing and most lucrative markets over the past 50 years. Moreover, the industry contributes significantly to the United States job creation due to its diversity as well as its dynamism. As innovations constantly appear, the industry becomes more technologically sophisticated and focused, and the demand keeps rising. Therefore, the sector offers challenging opportunities for people with various educations and backgrounds to contribute to the creation of new and superior personal care products.
This analysis will begin with a description of the cosmetics market giving information about its classification codes, its structure and some specialized sources. Then, the industry background will focus on the major companies and their offer as well as their market share. It will also give an outlook of the market. Furthermore, these main players will be presented from a financial facet through a stock market and a financial performance overview. Marketing and advertising methods will be discussed to determine how customers are encouraged to purchase personal care products. Human resources will be analysed from the various perspectives of career development. Finally, the analysis will focus on the industry prospects and overall attractiveness.
Lifestyle
• All products are tested on a three-year period and a complete test for efficacy in 10 years is undertaken.
• All formulas and formulations with a minimum of 10% mercury or more are tested and approved under the relevant Australian Food Safety and Labelling (AFSA) guidelines and, once approved by the Australian Food and Drug Administration (FADA), must be labelled in Australian pharmacies. Products sold in the supply chain must have a minimum of 15% mercury in all cases and must be of a colour known to consumers. This is similar to the label requirements for generic skincare formulas and the safety statement, which states: “In the United States, products are usually labeled with a minimum of 15% mercury in all cases and must be of a colour known to consumers. Products sold in the supply chain must have a minimum of 15% mercury in all cases and must be of a colour known to consumers. Products sold in the supply chain must have a minimum of 15% mercury in all cases and must be of a colour known to consumers. Products sold in the supply chain must be classified as containing five or more concentrations of mercury or more, so that for certain products and their intended use, any more could contribute to a potential risk of adverse exposures, and a minimum concentration value based on an adverse reaction.”
• No safety test or safety certification is required for the formulas. Manufactured products must contain a minimum of ten% mercury or more or their ingredients must have a colour or product formulation to allow for the maximum concentration achievable in most cases. This means that products containing mercury exceeding 10% will produce a potentially life-threatening reaction. Products containing mercury more than 10% that are already considered safe for use in children can also produce a potentially life-threatening reaction, while those with the highest concentration exceeding 10% can also cause problems at the hands of children.
Health
• In the past decade, pharmaceuticals have also been sold in products under the Australian Pharmaceutical Research and Manufacturers (API) classification of “non-hazardous ingredients”. The number of products marketed and classified by this classification has seen the growth of the pharmaceutical industry and a major shift towards a less toxic approach to the industry, with a focus focused on the quality rather than the amount of an ingredient. This means that pharmaceuticals are now less reliant on ingredients and more likely to be produced based on the best available evidence and scientific analysis. The Australian Pharmaceutical Research and Manufacturers (API) classification also applies to the manufacture and marketing of pharmaceuticals, although pharmaceuticals under the API classification usually come with safety features to help prevent product contamination.
• The classification of an ingredient is not based on quantity (such as its form, formulation, manufacturing method, and its content), as it reflects the ingredients themselves, as well as the quality of the ingredient and the quantity provided in the product that it is manufactured. It is rather based on the amount of ingredients in the product that can be used to achieve a desired result. It also reflects the quantity and quality of ingredients that it can be manufactured to meet the requirements for an approved
Industry descriptionThe United States possesses the largest personal products market in the world, accounting for 26 percent of global sales. It includes some of the most important consumer goods companies worldwide. The industry is service oriented. Therefore, businesses must continually be aware of the new trends and be able to predict the future desires of customers. Actually, they have to focus on creativity, innovation and to understand the complex nature of the sector. In 2004, the U.S. cosmetics market represented $34 billion and had realized an average growth of 4 percent since 2000 (Toiletries and Cosmetics, 2005).
The term “cosmetic” must be defined in order to understand the substantial size of the industry. Actually, this word generates confusion as many people still associate it with “make-up”. However, the reality is that the term “cosmetics” is a contraction of “cosmetics, toiletry and perfumery”. It includes any product that cleanses (other than soap), beautifies or alters the appearance of the human body without affecting the bodys structure or functions (Federal Food, Drug and Cosmetic Act, 2004). The market is all about personal care, hygiene and comfort.
Some cosmetics are also considered drugs if they have two intended uses: medical and aesthetic. For instance, a make-up product with a sun-protection index intends to beautify but also to protect the skin from sun aggressions. Such products are often referred to as “cosmeceuticals”. However, this term is not defined by the law.
Classification codesThe Standard Industrial Classification (SIC) was created in the early 1930’s by the United States government in order to classify industries by a four digit-code. It was developed at a time when manufacturing ruled the U.S. economy. However, the system has suffered from denigration since that time: it was accused of having difficulty dealing with the rapid changes of the economy.
The Cosmetics industry falls under the division D of the Standard Industrial Classification, which is the “Manufacturing” division. It depends on the Major Group 28, which is composed of “Chemicals and Allied Products”. The industry group is 2844: it encompasses “Perfumes, Cosmetics, and Other Toilet Preparations” and is defined by the Occupational Safety and Health Administration (n.d.) as establishments primarily engaged in manufacturing perfumes (natural and synthetic), cosmetics, and other toilet preparations. It also includes establishments primarily engaged in blending and compounding perfume bases and those manufacturing shampoos and shaving products.
Since 1997, the North American Industry Classification System (NAICS) has replaced the SIC. It is considered as a support for the compilation, aggregation, arrangement and analysis of data concerning the American economy. It uses a six-digit hierarchical coding system to classify any economic activity into 20 industrial sectors (U.S. Census Bureau, 2002).
The cosmetics