INGLOT: CONQUERING THE
WORLD BUSINESS CASE
Elisa SAVART
Tom POTIER
Sonia ZERMANE
SLIDE 1:
Hello everyone, we are going to present you our analysis of the business case “INGLOT: Conquering
the world”.
SLIDE 2:
During this presentation, we will discuss several points. First we’re going to introduce you to the
INGLOT company. Then, we are going to focus on the cosmetic market. After that, we are going to
review the competitive advantages of INGLOT, its internationalization strategy process and our
recommended strategic plan for the next 5 years. Finally, we are going to finish with an analysis of
franchisee application in France.
SLIDE 3:
First, does anyone know the brand INGLOT? We’re going to show you a quick ad that will let you
know more about the brand. Note that this ad was released last year and the case is about the
brand’s strategy before 2013.
VIDEO
QUESTION: For the ones who know INGOT, how would you describe this brand ? Are you consuming
it ?
SLIDE 4:
INGLOT is a cosmetic brand that was founded in Poland in the 1980s by Wojciech Inglot, a young
chemist working in pharmaceutical research. Inglot had a clear vision: to offer affordable cosmetic
products made from the highest quality ingredients, something that was lacking in Poland after years
of centralized socialist planning. With a background in chemistry and an entrepreneurial spirit, he
founded INGLOT with the help of his brother Zbigniew, who had a PhD in physics, and their sister
Elzbieta Inglot Kobylanska, who had a background in chemistry/biology.
Their vision began to take shape in the historic town of Przemysl, where INGLOT began offering
high-quality cosmetic products at affordable prices. The brand quickly gained popularity in Poland,
thanks to its full range of colors and high quality products. In 2000, the brand decided to differentiate
itself by opening its own stores, which quickly gained popularity among Polish customers. INGLOT
also adopted the franchise model to accelerate its expansion, which allowed it to enter new markets
around the world.
INGLOT has become a recognized industry leader with major innovations such as the Freedom
system, which allows customers to customize their own makeup color palette, and the first ever
breathable nail polish. The brand has also set itself apart from the competition by adapting to the
specific needs of each market, developing products and marketing strategies tailored to the cultural
preferences and local buying habits of each market.
By the end of 2012, INGLOT was present in 44 foreign countries and its products were available in
nearly 200 retail outlets. Despite its rapid growth, INGLOT was 100% financed by retained earnings,
without resorting to external financing or advertising. The brand relies on an extensive network of
professional makeup artists to promote the brand and relies on the visibility of its flagship stores, such
as the one located on Broadway in New York.
INGLOT is a brand built on a solid foundation, offering high-quality products at affordable prices and
adopting innovative strategies to reach new markets. With its ability to adapt to the specific needs of
each market and its philosophy of providing a personalized experience to customers, INGLOT is well
positioned to continue to grow in the global cosmetics industry.
SLIDE 5:
The cosmetics market is a constantly evolving sector, with strong competition between large
multinational companies and small local companies. Consumers are looking for high quality products
at affordable prices, as well as innovations in packaging and color ranges. Inglot's global presence in
44 countries demonstrates its ability to expand into very diverse markets by offering a combination of
quality and affordability.
Inglot's expansion in Poland has been a success, with a 10% market share thanks to a strategy of
streamlining the distribution network with 179 stores (117 owned and 62 franchised). Future sources
of growth for Inglot in Poland include opening stores in new shopping centers, alliances with partners
offering complementary products and diversification of product lines. Inglot's international expansion
has been achieved by selecting competent local partners for brand management and product
distribution. However, challenges faced by the company include an unstable regulatory environment,
protectionist policies and sometimes underperforming franchise partners. Despite these challenges,
Inglot has a presence on six continents, with nearly complete coverage of the European markets,
expansion into Latin America and Africa, and plans underway to establish a presence in the
Indonesian market. Inglot's expansion into Canada and the Middle East was triggered by local
entrepreneurs and sales took off without any major advertising effort. In Australia, Lithuania, United
Kingdom, Ukraine and the United States, Inglot decided to open its own branches rather than rely on
franchise partners. However, operating its own stores abroad has been difficult and international
expansion has instead been based on a franchise model with no upfront payments or royalties.
In terms of competition, Inglot has been able to differentiate itself from its competitors by focusing on
packaging, display, color scheme, and real-time product availability. Its main competitors include
global giants such as MAC, Shiseido and L'Oreal, as well as brands such as Bobbi Brown, Make Up
Store and Make Up For Ever. Inglot has also faced competition from large cosmetics retailers such as
Sephora, which sell a wide range of brands, including Inglot and its competitors.
SLIDE 6:
At the corporate (micro) level, research and development (R&D) is a key factor in developing Inglot's
competitive advantages. The company has invested heavily in R&D to develop unique and innovative
products that meet customers' needs. For example, the Freedom System, which allows customers to
customize their own makeup color palette, is an exclusive Inglot product that offers customers a
personalized experience. Similarly, the first-ever breathable nail polish developed by Inglot is another
example of the company's ability to innovate in the cosmetics industry. In addition, Inglot has sought
to offer unexpected additional benefits for customers, such as breathable nail polish that is popular
with Muslim women who are allowed to wear only porous materials during prayers. R&D continues to
be a priority for Inglot, which is constantly looking to develop new and innovative products to meet
consumer needs.
Production is another important factor in developing Inglot's competitive advantages. The company
uses only the best ingredients from countries known for the quality of their cosmetic ingredients. The
machines used by Inglot are industry standard, with some custom designed to produce innovative
products. In addition, Inglot refuses to outsource production in order to maintain its ability to quickly
replenish inventory anywhere in the world. Inglot's ability to adapt quickly allows it to react to changing
color trends mid-year, producing additional quantities of product based on customer demand. Inglot's
high quality production, combined with its ability to adapt quickly, is an important asset for the
company in the cosmetics industry.
Marketing and distribution are also key factors in developing Inglot's competitive advantages. The
company began expanding internationally with a network of stores managed by five subsidiaries and
then chose to focus on franchising. By keeping its franchise model simple, Inglot has focused on
developing a long-term relationship with franchisees rather than maximizing short-term profits. Inglot
has also cooperated with large chain stores and pursued alliances with cosmetics companies offering
a complementary range. In terms of marketing, Inglot has reduced advertising expenses while
detecting the latest market trends and adapting its offer accordingly. The company relies on an
extensive network of external collaborators - renowned make-up artists and color consultants who
often promote its products through their own artwork.
Another important micro factor is the company's strong focus on research and development. INGLOT
has maintained its innovation edge in the cosmetics industry by developing products such as the
Freedom System concept that allows customers to create their own custom color palette, as well as
the first breathable nail polish. INGLOT's quick adaptability allows it to react quickly to changing color
trends mid-year, and INGLOT's R&D and production facilities in Przemysl have a highly skilled but
relatively inexpensive workforce.
SLIDE 7:
At the macro level, several factors also contribute to the development of Inglot's competitive
advantages. First of all, the geographical location of Poland is an important asset for the company.
Poland is centrally located in Europe, which facilitates the distribution of its products throughout the
region. In addition, Poland's highly skilled and inexpensive workforce has enabled Inglot to produce
high-quality products at competitive prices. Poland is also benefiting from an improved regional
infrastructure, which facilitates the logistics and transportation of Inglot's products. The construction of
a new airport terminal in the nearby city of Rzeszow and the completion of a highway network have
significantly improved the infrastructure of the region. This allows Inglot to quickly ship its products to
customers around the world.
In addition, the rapid growth of the cosmetics industry worldwide provides many opportunities for
Inglot. According to a report by ResearchAndMarkets.com, the global cosmetics market is expected to
reach 760 billion dollars by 2027, growing at a compound annual growth rate of 5.9 percent during the
forecast period of 2020 to 2027. This growth can be attributed to several factors such as increasing
disposable income, increasing demand for natural and organic beauty products, increasing demand
for high-quality makeup products, and increasing demand for anti-aging skin care products.
This growth can be an opportunity for Inglot to offer a diverse and high-quality product line to meet the
growing consumer demand for innovative and eco-friendly beauty products. The company has already
begun to diversify its product offer by offering products for men as well as white cosmetics and
fragrances. This diversification can help Inglot remain competitive in the market by offering a wider
range of products and meeting the ever-changing needs of consumers.
However, the sustainability of Inglot's competitive advantage will depend on its ability to continue to
innovate and meet the evolving needs of consumers. Inglot must continue to invest in research and
development to develop new and innovative products that meet consumer needs. Competition in the
cosmetics industry is fierce and Inglot must continue to differentiate itself by offering unique and high
quality products to maintain its competitive edge.
In addition, government regulations regarding cosmetic products may also affect the sustainability of
Inglot's competitive advantage. Changes in regulations may make it more difficult for Inglot to sell its
products in certain countries or require additional costs to comply with regulations. Therefore, Inglot
must be able to adapt quickly to regulatory changes and continue to meet the highest standards of
product quality and safety to maintain its brand reputation and competitive advantage.
To illustrate, one example is the European Union (EU) regulations on cosmetic ingredients. Since
2013, the EU has banned the use of over 1,300 ingredients in cosmetic products. This regulation has
had a significant impact on the cosmetics industry and on companies looking to sell cosmetics in
Europe. Inglot, which sells products in the EU, has had to adapt to these regulations by reformulating
some of its products and removing certain ingredients from its ingredient list. This resulted in
additional costs for the company, but by complying with the regulations, it was able to continue selling
its products in the EU.
SLIDE 8:
INGLOT's internationalization process is clearly a pre-planned expansion by the company's
strategists. The brand began its international expansion in 2006 with the opening of a store in Ireland,
and since then it has expanded its presence to more than 80 countries around the world. INGLOT has
adopted a progressive expansion strategy, focusing on key markets in Europe, Asia, Latin America
and the Middle East. The brand has also used a franchise approach to expand overseas. This
strategy was clearly carefully chosen as it was a perfect fit for the Polish company.
A franchise is a business agreement in which a company called a franchisor allows another company
called a franchisee to use its brand name, products and business know-how in return for payment.
The franchisee operates its own store while following the franchisor's guidelines in terms of products,
marketing, sales, training and operational standards. In exchange, the franchisee must pay a royalty
or percentage of sales to the franchisor. Franchising is an effective way for companies to expand
rapidly abroad with little initial investment and shared risk with the franchisee.
While INGLOT's internationalization strategy can be characterized as pre-determined, it is important
to note that the company has also demonstrated flexibility and adaptability in response to specific
market conditions. For example, in some cases, the company has partnered with local entrepreneurs
or franchise stores to enter new markets, rather than opening its own stores. This approach allows the
company to enter new markets with lower capital costs and risks.
In addition, the company has faced challenges in some markets, such as an unstable regulatory
environment in some countries. This suggests that INGLOT's expansion has not always gone as
planned and that the company has had to adapt to unexpected challenges.
Furthermore, although INGLOT invested in marketing and branding, the case suggests that the
company did not focus enormous resources on these efforts. Instead, it relied on word-of-mouth
marketing and the quality of its products to establish its brand reputation in new markets. This
approach allowed the company to expand its global presence while keeping costs under control.
In sum, the franchising strategy used by INGLOT to expand internationally has several advantages:
1) Control over product quality and presentation: INGLOT is a company that places great
importance on the quality of its products and the presentation of its brand. The selective
franchising strategy allows the company to maintain strict control over how its products are
presented and sold in the franchised stores, ensuring that quality and service standards are
met.
2) Reduced financial risk: International expansion can be costly and risky. By adopting a
franchise strategy, INGLOT can share the costs and risks with its franchise partners. New
store opening and marketing costs are shared between the company and the franchisees,
allowing INGLOT to reduce its investment and financial risks.
3) Access to local know-how: The franchise strategy also allows INGLOT to benefit from the
local expertise of its franchise partners. Franchisees have in-depth knowledge of the local
market and consumer culture, which can help INGLOT adapt its products and services to
better meet local needs.
4) Rapid Expansion: The franchise strategy allows INGLOT to expand quickly into new markets,
without having to invest in opening new stores and training new employees. Franchise
partners can quickly open new stores and run their own businesses, allowing INGLOT to
quickly expand its international presence.
However, internationalization through franchising can present certain risks. While the selective
distribution franchise strategy is an effective way for INGLOT to rapidly expand its international
presence while limiting financial risks, it does not necessarily guarantee good results. For the success
of this strategy, several factors are involved:
1) The quality of the franchise partners: the selection of competent and committed franchise
partners is crucial to the success of the franchise strategy. If franchisees are unable to
provide quality customer service or fail to adapt to local needs, it can damage the brand's
reputation and lead to lower sales.
2) Adapting to local markets: consumer needs vary from market to market, and it is important
that INGLOT adapt its products and services to meet local needs. Franchise partners must
also have a thorough knowledge of local markets to adapt to the tastes and preferences of
local consumers. In this case, for example, it is said that protectionist policies could be a big
challenge for INGLOT.
3) Training and support: proper training and support of franchise partners is essential to ensure
that the brand is presented consistently and that quality standards are met.
4) INGLOT must provide its franchisees with adequate training on its products and services, as
well as marketing and management tools to help them run their businesses.
5) Communication: clear and regular communication between INGLOT and its franchise
partners is important to maintain effective collaboration and to ensure that all business
objectives are understood and achieved.
The other entry mode used by INGLOT is the opening of its own subsidiaries. In this model, INGLOT
invests in the creation of its own stores and infrastructure to ensure the distribution of its products
abroad. This model offers the company greater control over the distribution of its products, as well as
greater freedom in defining its own marketing and sales strategies. However, opening its own
subsidiaries can be more costly and risky than using a franchise, as the company must make
significant investments in creating and managing its own infrastructure and operations. It would be
advisable for INGLOT to prioritize franchising as a means of expanding their international presence
due to lower costs, but they must ensure that they maintain a high level of control over these
franchises to safeguard their brand reputation.
SLIDE 9:
For geographic expansion, INGLOT could consider a market selection approach that involves an
in-depth analysis of each potential market based on criteria such as market size, economic growth,
competition, consumer trends, barriers to entry, and regulations. Using these criteria, INGLOT could
identify the markets that have the greatest growth potential for its brand.
SLIDE 10:
Looking at this chart, we can see all the countries in which INGLOT has established a presence.
Although INGLOT has experienced rapid growth and successful international expansion, the brand is
not yet present in the Chinese market. Entering the Chinese market can be difficult due to logistical,
regulatory, cultural and competitive challenges. However, it remains huge and growing, offering
significant opportunities for the brand.
China is one of the most dynamic and promising markets in the world for the cosmetics industry. With
a population of over 1.4 billion and a growing middle class, the opportunities for cosmetic brands are
huge. Therefore, it is very important for Inglot to enter the Chinese market in order to benefit from this
growth and expansion opportunity. Indeed, in 2012, the cosmetics market accounted for a turnover of
160 billion yuan (25 billion US dollars). In addition, foreign brands accounted for about 60% of the
cosmetics market in China, so this is a big opportunity for INGLOT to enter.
SLIDE 11:
To succeed in this market, INGLOT can take a cue from the strategy of the Shiseido brand. In order to
complete its expansion in Asia, the Japanese brand has focused on several areas:
1) Launching brands tailored to Chinese consumers :
Shiseido has launched brands specifically tailored to the needs and preferences of Chinese
consumers. For example, in 2011, Shiseido launched the premium brand Za in China to meet the
growing demand for high-end beauty products in the country.
2) Strengthening distribution: Shiseido has enhanced distribution in China by opening new
stores and expanding its distribution network. In 2011, it opened the first Shiseido store in
China, in Shanghai, and has continued to open new stores throughout the country. In 2016, it
expanded its partnership with Chinese beauty retailer A.S. Watson to distribute its products
nationwide.
3) Use of social networks: Shiseido has also used social networks in China to reach local
consumers. It launched advertising campaigns on WeChat, the most popular social network in
China, to reach Chinese consumers and used local influencers to promote its products.
4) Developing new products for China: Shiseido has developed specific products for China to
meet the needs of local consumers. In 2015, it launched an exclusive skincare line for China
called Aupres Jingwei, which uses natural Chinese ingredients to meet the skin needs of
Chinese consumers.
SLIDE 12:
In order to be successful in this new market, we have several suggestions. First of all, Inglot must
invest in marketing and allocate a large budget for this purpose, as advertising and marketing are key
elements for success in China. According to CTR China, all cosmetic brands spend a considerable
amount on advertising and marketing. This is necessary because the beauty market in China is very
competitive and the Chinese are very sensitive to the image and reputation of a brand.
Regarding sales channels, according to Euromonitor, department stores, hypermarkets and health
and beauty retailers are the most popular sales channels in China. However, the market share of
supermarkets and department stores is declining, while health and beauty retailers are booming, both
in retail and online. INGLOT should multiply its sales channels and focus on e-commerce and be
present on popular online sales platforms in China, such as Tmall, JD.com and Kaola, to reach a
wider audience.
To maximize its chances of success in China, Inglot must also have a strategy regarding the
geographical location of their store. One of the country's two largest cities, Beijing or Shanghai, as
recommended by Orient Security's report, would allow the brand to capture a significant share of the
market and better understand the needs and expectations of Chinese consumers. Indeed, in 2012,
Shanghai, Beijing and Guangzhou were the most important cities for cosmetics sales in China,
together accounting for 40% of total sales.
The Inglot brand is generally considered to belong to the "masstige" segment due to its product
offering located halfway between prestige and mass-market, with moderate prices and a sophisticated
brand image. In 2012, according to Guosen's "Research Report on China's Cosmetics Industry II", the
"Masstige" and "High mass" segments are the most popular in China regarding cosmetic products.
This is another indicator that guarantees the brand a sure success and a large market share.
SLIDE 13:
Regarding the evolution of the business model, here are our recommendations:
1) Adopt a multi-channel sales approach: INGLOT should seek to increase its online presence
by creating an online store to make it easier for customers to shop. Online sales channels
allow customers to buy anytime, anywhere, which can increase sales and customer loyalty.
INGLOT should also consider selling its products through third-party online sales platforms
such as Amazon or Sephora, which have a large reach and an established customer base.
2) Invest in e-commerce: In addition to opening an online store, INGLOT should invest in
e-commerce to provide a smooth and enjoyable online shopping experience for its customers.
This could include features such as advanced search tools to help customers find specific
products, customization options for products, exclusive online specials, and free or low-cost
shipping offers to entice customers to buy online.
3) Open new stores in strategic locations: INGLOT should identify strategic locations to open
new stores to expand its reach and attract new customers. Shopping malls, major cities, and
tourist destinations could be attractive locations to consider for new store openings.
4) Expand its service offering by offering professional beauty services: INGLOT could consider
expanding its service offer by offering professional beauty services such as bridal makeup,
makeup training or even personalized consultations. This could help build customer
engagement and encourage long-term loyalty. INGLOT could also offer special promotions for
beauty services to attract new customers and encourage existing customers to purchase
more products.
5) Implement loyalty programs: similar to beauty giant Sephora, INGLOT could implement a
loyalty program to reward repeat customers and encourage brand loyalty. These programs
could offer benefits such as discounts on purchases, free samples, invitations to exclusive
events, etc.
QUESTION: Have you ever seen an ad for INGLOT on social networks, on instagram or on
tiktok for example?
6) That’s why we would also recommend investing heavily in advertising and social media:
INGLOT could increase its marketing efforts by investing in advertising campaigns and
creating a strong social media presence. This could help increase brand awareness and
attract new customers. With the rise of social media, INGLOT is losing the huge group of
potential customers that are young people on social media.
7) Develop a sustainability strategy: INGLOT could adopt a sustainability strategy to meet the
growing consumer demand for environmentally friendly and ethical products. This could
include initiatives such as reducing carbon footprints, using sustainable materials and
promoting gender equality.
8) Offer online training: INGLOT could offer online training for makeup professionals and
customers interested in learning professional makeup techniques. This initiative could also
help build brand awareness and boost sales.
SLIDE 14:
INGLOT may consider expanding its product line by introducing complementary products to its
makeup line, such as skin care, hair care and fragrances. This strategy could allow the brand to retain
its existing customer base by offering them a more complete shopping experience and meeting more
of their beauty needs. It could also attract new customers who may be interested in complementary
products and may be tempted to try the brand's makeup products.
Moreover, with the growing influence of South Korean beauty in China, Chinese men have become a
key customer target for cosmetic brands. Therefore, INGLOT may consider developing a men's
product line that caters to this growing demand. This could help the brand differentiate itself from its
competitors and position itself as an innovative and modern brand.
Finally, INGLOT could also consider creating collaborations with local celebrities or influencers to
promote its products and reach a wider audience. Celebrities and influencers have an important
impact on the purchasing decisions of consumers in each country and could help the brand build
awareness and credibility in those countries.
SLIDE 15: PESTEL
Regarding all of this information, we’re gonna take a look at our PESTEL analysis.
Politics :
- The geopolitical situation of the countries in which INGLOT operates is relatively stable for the most
part.
- Geopolitical tensions between certain countries may have affected the availability and accessibility
of raw materials or impacted the import and export costs of INGLOT products.
Economic:
- The 2008-2009 economic crisis impacted consumer purchasing power, forcing consumers to be
more selective in their spending on cosmetic products, which may have affected INGLOT's sales in
the short term.
- Emerging markets, such as Asia and Latin America, have experienced rapid economic growth,
providing expansion opportunities for INGLOT.
Sociocultural:
- Consumers are increasingly aware of diversity and are looking for products to suit different skin
colors and hair types. INGLOT must meet these expectations to reach a wider audience.
- The emergence of makeup tutorials on YouTube and social networks has made consumers more
sophisticated and demanding in terms of product quality and performance.
Technological:
- INGLOT has developed a "Freedom System" technology, which allows customers to customize their
makeup palettes with a variety of colors and textures, offering a unique experience tailored to their
needs.
- The company has also invested in the research and development of new materials and processes to
improve the quality and durability of its products.
Environmental:
- INGLOT has implemented initiatives to reduce its environmental footprint, including using recyclable
packaging and minimizing waste during production.
- Since 2011, the company has been committed to using only environmentally friendly ingredients and
excluding controversial substances like parabens from its formulations.
Legal:
- INGLOT must comply with specific regulations in each country regarding permitted ingredients,
safety testing and labeling of cosmetic products.
- The company must also comply with data privacy regulations, such as the RGPD in Europe, when
handling customer information online or at its retail locations.
SLIDE 16:
We will now present an analysis of the opportunity for INGLOT to develop in France, with the pros and
cons, taking into account the P&L and the financial balance sheet of the company over the last 3
years.
On the face of it, everything suggests that expansion in France could be very beneficial for the
company. France is known for its thriving beauty market, with a strong demand for high-end and
innovative cosmetics. INGLOT, as a reputable brand, is well positioned to meet this demand.
In addition, INGLOT has already successfully established a global presence using a proven franchise
model. This can be an advantage for new franchisees in France, who can benefit from the company's
expertise in this area. As France is not known for having a very different culture from other European
countries, this should not be a big problem in terms of adaptation.
Thus, taking into account the numerical assumptions: the turnover over the last 3 years is constantly
growing. The initial cost to open an INGLOT store in France is approximately 95,000 Euros, which
includes the cost of renting the commercial space, basic renovation, furniture and initial stock. French
banks offer credit lines and small business loans, with an average interest rate of 3% per year, which
can help finance these costs.
In addition, Saturday sales are one and a half times higher than on other sales days, and December
revenues are twice the normal monthly revenues, which greatly increases potential profits. With
average customer spending estimated at €27 per visit and an average of 20 paying customers visiting
the store every hour, the INGLOT store in France can generate significant revenue.
In addition, gross margins are stable at 67% each year, suggesting that the company is maintaining
efficient production costs and is able to successfully sell its products at a price high enough to
generate profits.
Return on investment is also steadily increasing, from 24.7% in year one to 54.3% in year three. This
suggests that the company is able to generate solid profits for its shareholders.
SLIDE 17:
Analysis of INGLOT's overall financial data suggests that franchisee demand in France is strong, but
it is important to perform a sensitivity analysis to assess the potential impacts of changes in
assumptions on projected financial results.
For example, year 3 shows revenues of over 1.7 million Euros, which generates a net profit of
approximately 50,000 Euros. We can assume a 10% increase in costs and a 10% decrease in sales
to assess the potential impact on net income.
As a result, the net profit for year 3 would be reduced to about 44k euros. This is a reduction of about
6k euros compared to the initial net profit. This sensitivity analysis therefore shows that variations in
sales and costs can have an impact on INGLOT's profits in France, but not to the point of totally
destabilizing the company. We can therefore affirm that the French market is stable and that it is
favorable.
To conclude, even if the cosmetics market in France is extremely competitive, with established
international brands such as L'Oreal and Lancôme, and the regulations on cosmetic products can be
complex and costly to comply with, INGLOT can establish itself without great fear of being profitable in
view of its performance abroad and the country's favorable economic situation.
Politics
Economic
Sociocultural
Technological
●
●
●
●
●
Geopolitical
situation
Availability
and
accessibility
of raw
materials
Import and
export costs
●
●
●
●
●
2008-2009
economic
crisis
Consumer
purchasing
power
Selective
spending on
cosmetic
products
Emerging
markets
Rapid
economic
growth
Expansion
opportunities
●
●
●
●
●
●
Diversity
Products for
different skin
colors and
hair types
Meeting
consumer
expectations
Makeup
tutorials
Social
networks
Product
quality and
performance
●
●
●
●
●
●
Freedom
System
technology
Customizatio
n of makeup
palettes
Variety of
colors and
textures
Unique
experience
Research
and
development
New
materials
and
processes
Quality and
durability
Environmental
●
●
●
●
Initiatives to
reduce
environment
al footprint
Recyclable
packaging
Minimizing
waste during
production
Environment
ally friendly
ingredients
Legal
●
●
Compliance
with
regulations
Adherence to
data privacy
regulations