Cosmetics, Beauty Supply & Perfume Stores
Competitive Landscape
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 labor-intensive: average annual revenue per worker is about $104,000.
Opportunities
Strong Consumer Demographics - Favorable demographics should allow beauty stores to leverage growing demand for beauty products suited for aging consumers. As the baby boomer generation matures, sales for...
Business Challenges
Competition from Alternative Retailers - Beauty stores face a wide range of competitors across all price segments, including department stores, drugstores , mass merchandisers, TV shopping networks, and Internet retailers.