As per Manilatimes.com on October 16th 2012, Asia is driving global sales of men’s skin care products, with Chinese, Japanese and South Koreans the most avid users in the region. Consumer research group Euromonitor International said that the Asia-Pacific region accounted for nearly 60 percent of worldwide sales of men’s skin care products, a fast-growing section of a $33-billion male grooming industry. “As features from women’s skin care are replicated in male-specific products, an array of products targeting issues from aging and blemishes to brightening has become available”. Male grooming habits vary worldwide, with Asian men spending more on skin care and their counterparts in Brazil—set to overtake the United States as the largest single market in three years. Shaving items were the most widely sold grooming products in 2011, but toiletries including deodorants and skin care were catching up.
Euromonitor said that the global market for male grooming products has plenty of room for expansion, with average growth over the past five years at only 6.0 percent to reach nearly $33 billion last year. However, the rate of growth varies sharply across regions, with Latin America posting double-digit expansion and western Europe, hit by a prolonged financial crisis, rising at a slower pace. Brazil is expected to overtake the United States as the leading market for men’s grooming items in 2015. By 2016, the Asia-Pacific will be the second biggest contributor to growth in the category after Latin America, Euromonitor said. The Philippines
The male grooming industry has grown exponentially through the years. Back in the day, we only had Master Eskinol and that was it. Today, there’s a whole aisle of skincare options for men and the desired effects are not only confined to having clean and pimple-free skin. The modern man also has started to recognize the benefits of a youthful, shine-free look. Nivea For Men has an extensive product line including anti-aging moisturizers, facial care choices for men with oily skin (to mattify and control shine), sensitive skin and stressed skin. They even have eye roll-ons and lip balms specially developed for the masculine lip chemistry. Gillette, known for its razors, also has a skincare range. Moisturizers, skin gels, facial wash, scrubs and lotions are among its offerings. L’oreal Paris, likewise, has an entire collection that they call Men’s Expert. The complete line includes eye rollers, moisturizers, cleansers, sunscreen after shave balm and anti-wrinkle solutions.
Belo Men, a locally manufactured line, consists of an oil control face wash, oil control toner and an energizing body bar. They also have whitening variants of the same products.
Watsons also recently unveiled its men’s line, aptly named Watsons Men, and introduced a four-step regimen—cleansing with the facial wash, deep-cleansing with the facial scrub, refreshing with the toner and moisturizing with the facial gel. Many other brands are out in stores and it only means that there is a market for it. Studies say that Asian males, in particular, are getting more concerned about their appearance and Asia is likely to be the fastest-growing consumer of male skincare products by 2013.
Estee Lauder: Luxury Skin Care: Company Analysis
Josephine Esther Mentzer was born at the beginning of the 20th century in New York City. The name Estée came from a variant spelling of her nickname, Esty, and Lauder from Joseph Lauder whom she married in 1930 and later went into business with. Estée Lauder the brand was launched in 1946 with just four skincare products that were sold round the local salons and hotels. Just two years later, she secured her first counter at Saks Fifth Avenue department store in New York.
Estée Lauder the brand grew and grew, as did the business, Estée Lauder Companies, now a huge empire of beauty, owning 25 major brands and reaching 150 countries. Big names coming under the Estée Lauder Co. wing include Bobbi Brown, MAC, Jo Malone, Clinique, Creme de la Mer, Tom Ford and Origins. Mrs Estée Lauder passed away in 2004 at the handsome age of 97 and the company still very much has the Lauder blood running through it: her son, Leonard, took over at the helm, grandson William is the executive chairman and two granddaughters also hold senior positions.
Today, Estee Lauder is a global leader in prestige beauty boasting a well-diversified, brand-building powerhouse of unrivalled creativity and innovation.
Global Brand Basket
SWOT Analysis: Estee Lauder:
• Estee Lauder’s marketing strategy has proved to be effective, helping to raise profiles and profits and standing out as a major strength. • Estee Lauder has an extensive customer base, which is a major strength regarding sales and profit. • Estee Lauder’s reputation is strong and popular, meaning people view it with respect and believe in it. • Being financially strong helps Estee Lauder deal with any problems, ride any dip in profits and out perform their rivals. • A strong brand is an essential strength of Estee Lauder as it is recognised and respected. • Estee Lauder’s distribution chain can be listed as one of their strengths and links to success. • High quality products/services is a vital strength, helping to ensure customers return to Estee Lauder. • Estee Lauder’s international operations mean a wider customer base, a stronger brand and a bigger chunk of the global market. • Development and innovation are high at Estee Lauder with regard to their products/services, which is a sure strength in its overall performance. Weaknesses:
• Not reducing costs in the same way as their competitors’ means Estee Lauder is outlaying more of their profits. Having higher costs than competitors is a major weakness. • Estee Lauder’s limited product line is a major weakness. Opportunities:
• Estee Lauder could benefit from expanding their online presence and making more money from online shoppers/internet users. • The changes in the way consumers spend and what they buy provides a big opportunity for Estee Lauder to explore. • Estee Lauder is in good financial position, which is an opportunity for them to explore in terms of investment in new projects. • The growth of the Personal care industry is an opportunity for Estee Lauder to grasp. • Estee Lauder has the opportunity to enter a niche market, gain leading position and therefore boost financial performance. • Grasping the opportunity to expand the customer base is something Estee Lauder can aim for, either geographically or through new products.
• Expanding the product/service lines by Estee Lauder could help them raise sales and increase their product portfolio. • Expanding into other markets could be a possibility for Estee Lauder. • Forming strategic alliances and joint ventures is an opportunity for Estee Lauder to maximise profit and gain new business. • Estee Lauder has a number of highly skilled staff, which is an opportunity for them to explore as expertise of their staff can help Estee Lauder to bring the business forward. Threats:
• New products/services from rival firms could lead to Estee Lauder’s products/services being less in demand. • The actions of a competitor could be a major threat against Estee Lauder, for instance, if they bring in new technology or increase their workforce to meet demand. • Rising costs could be a major downfall for Estee Lauder as it would eat into profit. • Substitute products available on he market present a major threat to Estee Lauder.