Creating production injection moulds in a facility without a tool shop is a huge challenge. Managing a company department that must simultaneously secure ongoing production and create new moulds may generate delays and many other unforeseeable events. Ultimately, however, the development of our company in this direction is proving to be very beneficial, as it gives us unlimited control over the whole process – from the idea to the finished product. So how do we use this competitive advantage at Politech?
The cosmetic market in one of the fastest growing industries in the world. The pace of growth is set by Asia, generating up to 35% sales in this market segment. Global cosmetic sales have been increasing by 6–7% annually thanks to the rising level of hygiene standards and growing consumer awareness, accompanied by increased distribution. But where exactly does the sale happen? Is it mainly in markets and in drug stores, or has on-line sales already become the most popular channel?
The history of on-line sales
The first attempts at on-line sales were made by the end of the 1980s. The turning point came in 1992 when the US government abolished the ban on the commercial use of the internet. Many companies saw their chances in the liberalisation. Well-known Amazon.com used this opportunity in the best way possible. The company debuted on the stock market as early as 1997 and quickly increased its business activity.
Online cosmetic sales
So far, there is no doubt about which skin care cosmetics distribution networks are the most successful. The vast majority of world cosmetic products are being sold in drug stores and shopping centres. A few years ago, on-line sales made up less than 10% of global distribution.
This does not mean that focusing on on-line activities is pointless. Online activity brings various benefits for both producers and customers, helping to reduce costs such as renting retail premises and staff employment, lower the number of brokers and distributors, and, at the end of the day, cut product prices. Moreover, customers get a chance to quickly and easily compare the offers of different stores.
At first, it may look like the sudden growth of on-line sales in this industry is only a matter of time. Yet in the skin care department, growth is slower than in other branches. Customers have some doubts regarding on-line shopping for cosmetics. Just like in the case of pharmaceuticals, they prefer to buy cosmetics in trusted drug stores and pharmacies. Additionally, the shipping cost of a single product often increases an overall price, making the purchase unnecessarily expensive.
E-Commerce and M-Commerce
These customers’ reservations have been the main cause of the low 10% rate of online cosmetic sales in 2015. Recently, this number has been successively increasing, mostly in highly developed countries, achieving a 20% rate in past 3 years. The pace of growth is set to make Asia reach a 40% rate in 2020.
Direct on-line sales on a producer’s website is becoming more and more popular. It helps customers avoid purchasing at unknown on-line drug stores or pharmacies. Foreign cosmetics, often unavailable in brick-and-mortar stores in the country of purchase, are the best-selling products.
In addition to meeting the expectations of customers who care about the quality of their purchased products, chains of stores have another problem to solve: M-commerce – shopping on mobile devices – is attaining an increasing share in the on-line sales market. In 2016, 12% of the overall sales on the Polish market were made in the form of M-commerce.
In this fast-evolving environment, in order to gain an advantage, you always have to be one step ahead of your competitors. Cosmetic producers are positive the Internet will sooner or later outdistance brick-and-mortar sales. It is wise to get well-prepared for that. Time, customers’ trust, and suitably designed websites and mobile apps are what it takes.
Stress, putting our professional life before private matters, constant haste in all daily activities, eating on-the-go, a lack of sleep, no time for our family… These things are typical of contemporary times. And it is precisely them that the increasingly popular Slow Life lifestyle is supposed to counteract. Its characteristics are becoming noticeable in many areas of life as well as in various industries. Similar trends can be observed in the cosmetics market, where both the producers and the consumers are heading towards Slow Life.
The belief that in the past people did not dream about having luxury goods and products made by “known brands” is certainly mistaken. The wealthy often boasted about having fabrics imported from India, perfumes from France, or suits sewn by the best tailors. All kinds of such luxuries were, however, reserved only for the richest social groups.
Bespoke production is beneficial for the customer
Politech offers standardised products such as caps for perfume bottles, rings and jars for cosmetics. Every item and even individual parts of the items may be ornamented using the following methods: vacuum metal coating, UV varnishing, hot-stamping or full body colouring. Other options available: matt finish, glitter or pearl effect. That way, the range of possibilities is really huge and if we sold stock products, it would hamper the imagination of our customers and limit our development.
Shopping for the right perfume
Perfumes perfectly complement our personality and look, make us more courageous and catch the attention of those around us. They give us that special something that makes us stand out, that sets us apart. Good perfume is pricey, and if we want to spend a specific amount on it we should make a choice that we will not regret and that will have a positive effect on how we are perceived by others.
Trends in different sectors of trade and life in the 21st century are changing ever more rapidly, leaving consumers trying to keep up. Of course, those companies that move with the times and quickly adjust their products to trendy colours, patterns, textures, scents, and most importantly, consumer behaviours, expectations and experiences, benefit from doing so.
The appearance of any packaging plays a key role in the shopping process for the customer. What is more, consumer decisions are made in several dozen seconds, with only a few being spent on looking at a single product. The process of ensuring that our goods are the ones that attract the eye of the customer for longer begin with the development of the packaging.
According to one of the most important rules of marketing, a seller should not offer their clients a product, or rather a feeling, experience or dream which the product can accomplish. This rule is well known to perfume manufacturers who certainly do not offer water that smells like orange and ginger but “an oriental and tropical sensation that every strong man who wants to keep it natural needs.”
It might seem that product packaging always corresponds to the value of the commodity. In reality, however, form often alludes to the taste, smell or composition of the product or to abstract values rather than to the actual quality of the content. How to properly select the packaging for a product so as not to let down the expectations of consumers?
Although Slow Life continues to be one of the most influential trends in the consumer market, there is also a large group of people who have a different approach to life. This group of consumers chooses cosmetics with great care, assessing their composition. They also have certain requirements related to life in a constant hurry. Instant Beauty expects quick results, 3-in-1 cosmetics, and products combining care cosmetics with colour cosmetics.
Sophistication, sensuality, luxury, beautiful scents and chic. Why is it that France is associated with these values? Why is it that French perfume is also associated with these qualities? Is it because of the unique plants and climate, which influences the locally-grown perfume ingredients? Perhaps it is so because the French have the best “noses” in the world? Perhaps there used to be real reasons for this, but the advantage of French perfume today only extends to marketing?
The history of perfume involves more than stories about ancient incense and associated rituals, or the most well-known fashion brands and French manufacturers from Grasse, where tons of flower petals and herbs were transformed into perfume. Unfortunately, it is also a story of filth, stench and very strong aromatic oils, the purpose of the latter being to mask the other, less pleasant smells.
How to reach your target group - Cosmetics for teenagers
Targeting, choosing the target group, and looking for a product niche refers to one particular issue. In order to really understand those terms, it is worth describing them using a specific example, such as cosmetics for teenagers. While creating a new cosmetic line, a company should accurately identify the recipients of their products and select the proper means of communicating with this group.
About creating glass packaging and our cooperation with Heinz-Glas Działdowo
After years of collaboration, relations between business partners begin to look routine. However, Politech is curious about the world and eagerly discusses issues related to cooperating companies. This is why we decided to conduct a short interview with Monika Kosmala-Sójka, Sales and Marketing Manager in HEINZ-GLAS Działdowo.
Perfumes are designed to captivate with their scent; however, we have known for a while now that we often judge them by their packaging, even before smelling them. Perfume brands have been trying to reach their clients by changing the visual forms of their perfumes, using different methods. Newspaper ads, billboards and TV commercials are just a part of it. Sometimes we may see perfumes in films. Is their presence on the silver screen accidental?
When creating a series for babies, cosmetics producers seem to have reached fertile ground. Parents willingly use protective products for their children in order to ensure proper development without any skin problems. Caretakers are, however, a more and more aware target group and their requirements of products are still growing. The question is, is it worth entering the market of cosmetics for babies?
The preferences of consumers change as quickly as anything in the world around us. Consumer trends can no longer be divided into decades but rather single years, and, in certain industries, even by season. So it is no wonder that companies that are trying to keep up choose rebranding, or at least the gradual revival of their packaging design.
Some substances require a little more attention than others. The reasons are varied. Sometimes a specific temperature must be maintained, on other occasions greater container strength is needed. At other times, the shape must be specially adapted to the form of the material carried inside, while sometimes not only is product safety of concern, but also that of people in its vicinity – as is the case with hazardous agents.
Many people cannot imagine their life without social media, and it has also become an important part of the marketing strategy employed by big companies. Being present on social media involves increasing the prominence of web pages, reaching different groups of recipients using particular distribution channels and improving the image of a company.
- Elias Bittan
- Topic Entry
- Created 26 Jul 2018
- Modified 30 Jul 2018
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