Companies in this industry operate physical retail establishments that primarily sell cosmetics, beauty supplies and toiletries, and perfume. Major US companies include Sally Beauty Supply, Ulta, Sephora, and divisions of L Brands (Bath & Body Works, Victoria's Secret) and L’Oreal (The Body Shop International).
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% of industry revenue.
Cosmetics, face cream, and perfume make up about 75% of industry sales; about 20% of sales come from hygienic products such as deodorant, hair, and shaving products. Sales of small electric appliances, such as hair dryers and curling irons, and other personal care appliances account for most of the remainder.Buy Now