MAC COSMETICS

Goes to buy most of mac cosmetics

 

Reported that the company sold more than 3 million units of its Quickliner for Eyes in North America last year. market share for cosmetics, it was also the biggest selling domestic cosmetic of the year as well. According to Global Cosmetics Industry Magazine, a trade publication owned by Carol Stream, Ill. based Allured Publishing, the cosmetics industry generates approximately $230 billion in global sales, with trends showing a partiality for high tech and natural based products.

 

Consumers are becoming increasingly aware of the functions of specific ingredients, boosting sales for makeup brands that publicize their techniques.Massive multinational corporations dominate the makeup industry, but in recent years they have been creating or acquiring boutique brands in order to crack the market for premium makeup. Est mac makeup eyeliner and rival L'Or have realized that, like the spirits industry, the key to success lies in offering a suite of products targeted at a wide range of customers, but with special emphasis on the growing luxury sector. Nevertheless, the North American market is struggling, dropping from 31% of global sales in 2002 to 27% in 2004, based on data from London based market research company.

 

Euromonitor.L'Or the world's largest beauty products company owns more than 20 brands, including Maybelline the No. In 2004, the last year for which annual data exists, it generated more than $19 billion in sales, up mac makeup lipsticks 12.6% from 2003. and her family control 51% of the company. Bettencourt, 82, whose father founded L'Or in 1907, is the richest person in France, with a fortune estimated at $17.2 billion according to the 2004 Forbes list of the World's Billionaires. Est Lauder, by comparison, whose fiscal year ends in June, announced 2005 sales of slightly more than $6.3 billion.

 

Eponymous company founder Est Lauder died in April 2004. The Lauder family still controls 82% of the company's voting shares. Est son Leonard A. Lauder is the chairman, and her grandson William P. Lauder was recently appointed president and chief executive.Other major players in the cosmetics industry, although not as prominent in the premium and luxury niche. There are several reasons behind the growth in high end cosmetics: the expansion of new markets.

 

Changing social norms that make the wearing of makeup not to mention undergoing cosmetic surgery more acceptable; celebrity worship; promotion within fashion magazines; improvements in the technology mac makeup eyeshadow that creates makeup; the influence of mass retailers that can offer lower prices, and raising affluence. As makeup becomes less expensive, better and more accessible, more affluent women and increasingly men as well have moved away from older brands of makeup and skincare in search of higher quality new products and more exclusivity.