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 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. These days, even the wider public is able to enjoy such “little pleasures”. What is the cause behind that? Is our society indeed gaining wealth at a pace that matches the growth of the luxury goods market or have we simply become vainer and more wasteful?
The psychological effects and the hidden value
Several years ago, clothes with those three characteristic stripes or cars made by Western brands were the symbols of luxury and a reason for jealousy. Today, such goods are already available to a much broader group of consumers, yet, using products or services provided by known brands still affects the well-being of consumers to a significant degree. Additionally, a factor that is connected with the increase in self-esteem is the fact that a given brand is often associated with specific values – usually the type of values that the consumer admires.
Well-known luxury brands
The premium products market has such a broad range today that it could easily be divided into many different subcategories. This is best evidenced by the fact that most luxury products and services have certain minimal acceptable prices, but at the same time, there is practically no upper price limit for them. Wines could serve as an example in this case. It is beyond doubt that a reasonable upper price limit for this type of luxury products does not really exist. The right logo, packaging, history behind the brand, place of origin, the year of production, as well as the production process and many other aspects – to the buyer, each of them may represent a unique kind of value that can only be measured by the amount of money that they are willing to pay for the product.
Of course, “higher-end” products are still unavailable to a typical consumer who only earns the national average. The fact remains, however, that the average consumers are able to afford premium brand products increasingly often.
Luxury is slowly becoming a standard
On one hand, the ever-growing need among consumers to belong to higher social groups, as well as the constant aspiration to increase their standard of living, both significantly affect the increase in luxury product sales. On the other, the growing earnings, the release of premium product lines priced similarly to the standard equivalents as well as the release of cheaper products by well-known brands make it increasingly easier to experience a bit of luxury. An example of the trends mentioned above may be, for instance, the sale of Versace perfumes or Wittchen bags in stores such as “Lidl”.
The luxury cosmetics market
The total value of the luxury products market in Poland is steadily increasing. In 2018, this specific industry was worth around PLN 24 billion and has observed a 13% increase in comparison to the previous year. A similar trend exists on the cosmetics market, where the average growth rate for 2018-2023 was expected, until recently, to reach 6.2%, but after the success of 2018, it seems that the actual growth rate may be much higher.
Despite its rapid development, the Polish luxury cosmetics market is still 17 times smaller than the French market. However, this is a reason to remain optimistic, as Polish consumers will certainly strive to attain the same level of life as the one in the Western countries. This, in turn, may accelerate the development of the premium market even further.
The Polish luxury cosmetics and perfume markets are still several times smaller in comparison to the Western European markets, nonetheless, they have been growing steadily for many years. If we look at the forecasts from several years ago, this increase exceeds the forecasts. The growing number of prosperous Poles will drive the demand for this as well as other categories of luxury products.“ – said the Head of the Communication Department of Dr Irena Eris brand, Joanna Łodygowska, in an interview with wirtualnekosmetyki.pl portal regarding the current market situation.
Will the trend of luxury goods lead to the demise of cheap perfume brands?
Along with the expansion of the luxury products market, including the perfume market, there were many doubts regarding the future of other segments of the fragrance market itself. Eurotrend International has even carried out a study to assess the impact of the growth of the luxury perfume market on the mass market of these types of products. For example, due to the increase in wealth among US citizens as well as the increased demand for luxury products, the sales of cheap perfumes to mass customers in America have reduced by half since 2000.
The fashionbiznes.pl portal states that rich customers spare no expense on perfumes, as they want their fragrance of choice to be unique. At the same time, the less affluent consumers still buy the products of the same luxury brands, albeit cheaper ones. As such, customers are evidently less likely to choose cheaper perfume brands…
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.
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 future of online cosmetic sales
The cosmetic market is 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.
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 14 Feb 2019
- Modified 27 Feb 2019
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