This study presents the main characteristics of the market for cosmetics and essential oils in northern Europe. The targeted countries are Denmark, Finland, Norway and Sweden. Initially, the general characteristics of the markets will be studied and then a more detailed analysis on cosmetics will be conducted to present the elements of this market. The main points discussed will be the consumer, competition, regulation and consumer expectations.
Lack of sufficiently complete and accurate organic cosmetics in northern Europe, the market for conventional cosmetic has been designed to have a global view of consumer behavior in relation to each type of product. The chart shows the first use of cosmetics in Europe over the period 2001-2003, the second table presents a ranking for the country and types of products and assesses the growth and characteristics of each market segment in Northern Europe.
In France, there are specific rules governing organic products and organizations providing labels, guarantee of quality, recognized by consumers. Therefore, the level of regulation, the main difficulty for a company wishing to locate in the Nordic markets will be to know the local regulations for organic produce, to determine whether its products are compliant and they will be accepted by consumers.
The table given is made from data collected during the study for the Nordic market summarizes the position of each country's organic products and certification. For the company wishing to approach these markets, the situation is totally different from country to country.
For Finland and Sweden there is a priori no legislation regulating the import of cosmetics and organic products. In contrast to Denmark there is a problem of trust in foreign logos for consumers and for Norway a labeling requirement is necessary.
Under these conditions, for consumers in the Nordic countries there is a problem of trust and recognition of foreign products. Consumers are going to buy products whose quality is proven by organizations that they are familiar with. It is up to each company to assess the regulatory constraint to see if it has sufficient resources to cope.
When entering a new market cultural differences and consumer patterns must also be taken into account. Even if the Nordic markets are in general quite similar to the French market, each country has its specific cultural need to know in order to locate the best in the area.
The evaluation of the quality / price ratio is another important factor that allows the company to identify consumer behavior and strategy of choice at the time of purchase. Thus, consumers in northern Europe who are predominantly Lutheran country looking for the best quality / price ratio but with a fairly high level of quality. Quality is a core value for them that will determine their buying decision.
Tags: market for cosmetics and essential oils in Northern Europe, rules and regulations for organic products, consumer and cultural differences
[...] ) products show selling products to strong are the most the fastest -Consumers are competition requested growth seeking products -Segment Price up -Consumers are for their skin / dominated by (consumers demand looking for hair multinationals higher quality) sophisticated -Products for increasingly and/or natural hair salons rivaled by local products boost the market entities skin care market: segment leader trying out more in growth fragrances for Segment leaders: fragrances (many -The Finns spend women are best Upscale men's new product on average less selling fragrances launches) than Europeans -Tax Free -Saturated -Prices for perfumes Shopping derive market, growing increasing significant increasingly weak (search for local market quality) down "Masstige" products (mass market prestige are entering the market for skin products -Young executives Products: skin care spend the most on shampoos and care products shower gels -High growth of hair and skin care -Increase in price: the Norwegians are looking for quality products -The industry leader is Gillette (razors and shaving gels) Source: www.euromonitor.com International organization conducting market research THE MARKET FOR COSMETICS AND ORGANIC ESSENTIAL OILS 1. Competition According to Michael Porter there are 5 forces to measure the attractiveness of a market and assess potential threats to the company. The diagram below illustrates this concept and the market attractiveness of cosmetics and essential oils in the Nordic countries. [...]
[...] The main points are consumption, competition, regulation and consumer expectations MARKET ANALYSIS 1. PEST Analysis This analysis is generally used by consultants in business strategy to identify the most environment of the target markets. PEST is an acronym for: - P political (government stability, restrictions on foreign trade, consumer protection, government's attitude . ) - E economic factors (growth rate, unemployment rate, inflation, interest rates, government spending . ) - S social factors (demographics, education, income, living conditions . ) - T technological factors (level of technology, innovation, research and development, information technology . [...]
[...] Even if the Nordic markets are in general quite similar to the French market, each country has its specific cultural need that should be known in order to locate the best in this area. On factors such as consumer values, models, fidelity more or less developed in reference to a brand are indicative of the attitude of consumers when buying. The evaluation of quality/price ratio is another important factor that allows the company to identify consumer behavior and strategy of choice at the time of purchase. [...]
[...] The market for cosmetics and essential oils in northern Europe CONTENTS Market analysis 1. PEST Analysis 2. Analysis in terms of threats and opportunities 3. The priority target markets The conventional cosmetics market: consumption The market for cosmetics and essential oils 1. Competition 2. The regulation of organic products 3. Consumers Introduction This study presents the main characteristics of the market for cosmetics and essential oils in Northern Europe. The target countries are Denmark, Finland, Norway and Sweden. [...]
[...] French competition is not yet well established. - Suppliers have very high bargaining power for the area of essential oils. In fact, some oils are very rare and not always available in organic quality; the suppliers can abuse this situation of scarcity to raise prices, for example. It is therefore essential for the company to have good relations with its suppliers The regulation of organic products In France, there are specific rules governing organic products and organizations providing labels and guarantees of quality are recognized by consumers. [...]
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