A new video from Euromonitor International, “Beauty Companies Investing in Research Increase Likelihood for Growth,” has Euromonitor senior beauty and personal care research analyst Oru Mohiuddin discussing the 2013 second quarter results from beauty companies and seeing that companies focusing strictly on beauty rather than a diverse product portfolio are better poised for growth.
Mohiuddin says, “Results for 2013 started coming out, and what we see is not strikingly different from 2012. It is becoming more and more clear that manufacturers with more streamlined beauty focus are in better position to take advantage of the growth potential in the market, and this is because they’re able to dedicate more resources, at least in proportionate terms to R&D, to drive growth through product sophistication.
“Now let’s look at companies individually. I’ve looked at L’Oréal, Procter & Gamble, Unilever, Beiersdorf, Colgate and Estée Lauder and have tried to make it comparable by using [a] fixed exchange rate from 2013 in U.S. dollar values. In this group of companies, L’Oréal comes out at the top at 5% growth rate whereas Procter & Gamble’s performance was least favorable at -1%. This again drives home the fact that manufacturers with more exclusive beauty focus are able to do better.
This piece is an excerpt from GCI magazine, Cosmetics & Toiletries' sister publication for beauty business and marketing. Read the full report.