Companies in this industry primarily sell cosmetics, beauty supplies and toiletries, and perfume. Major US companies include Sally Beauty Supply, Ulta, Sephora, and divisions of Limited Brands (Bath & Body Works) 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 industry is concentrated: the top 50 companies have about 75 percent of industry revenue.
Cosmetics, face cream, and perfume make up about 75 percent of industry sales, while 20 percent come from hygienic products such as deodorant, hair, and shaving products. About 4 percent of industry sales are from small electric and personal care appliances. The hair care category includes shampoo, conditioner, and color. Makeup categories include eyes, lips, and face (foundations and concealers). Facial care includes moisturizers, cleansers, and exfoliators. Some beauty stores sell personal care appliances, such as hair dryers and curling irons. Companies may provide salon services, including hair styling, manicures, pedicures, or facials.Buy Now