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; other sources of revenue include hygienic products such as deodorant, hair care, and shaving items. Some stores sell hair dryers, curling irons, and other personal care appliances.Buy Now