Entrepreneurship& Small Business Management
BMGN N480 Entrepreneurship& Small Business Management
Student Name; ID; Section:
Business idea description:
Cosmetic industry is an industry that maintains a steady growth as cosmetic items have become a necessity for women rather than a luxury. It is a multi-billion dollar industry worldwide and has seen a tremendous growth in the recent years. It is still a growing industry in the Middle East region as most of the items are imported rather than produced locally. Research indicates that UAE and the ME region spends large amounts on cosmetics and other beauty products with the UAE market predicted to be worth AED 520 million by the year 2014 (KT Business, 2011).
The UAE market is mainly dominated by international brands such as Inglot, Chanel etc. and they face little or no competition from any brand produced locally. With UAE still being a growing market, an opportunity arises to compete in the cosmetic industry. A locally produced organic cosmetic brand would be ideal be to compete in the industry with the trend of usage of organic cosmetic products is on the constant rise worldwide as it has evolved into a AED 30 billion industry with a steady growth rate of 12 percent annually (Lowe, 2010). Organic cosmetics are cosmetic products that are made from natural ingredients. It is becoming popular due to its health and environmental benefits. The plan is to setup up production facilities as well as retail outlets as the plan is to market the brand as being 100% locally owned and produced. The SWOT analysis will further discuss the advantages of entering into the organic cosmetic market in the UAE.
| STRENGTHS | WEAKNESSES | INTERNAL | 1. Natural products: Unlike regular cosmetic products, the purpose of organic cosmetics is to be friendly to the skin and the environment. The ingredients of the cosmetic items will be extracted from plants, fruits, minerals etc. As the trend of usage of environmental friendly products is increasing, the demand for
Student Name; ID; Section:
Business idea description:
Cosmetic industry is an industry that maintains a steady growth as cosmetic items have become a necessity for women rather than a luxury. It is a multi-billion dollar industry worldwide and has seen a tremendous growth in the recent years. It is still a growing industry in the Middle East region as most of the items are imported rather than produced locally. Research indicates that UAE and the ME region spends large amounts on cosmetics and other beauty products with the UAE market predicted to be worth AED 520 million by the year 2014 (KT Business, 2011).
The UAE market is mainly dominated by international brands such as Inglot, Chanel etc. and they face little or no competition from any brand produced locally. With UAE still being a growing market, an opportunity arises to compete in the cosmetic industry. A locally produced organic cosmetic brand would be ideal be to compete in the industry with the trend of usage of organic cosmetic products is on the constant rise worldwide as it has evolved into a AED 30 billion industry with a steady growth rate of 12 percent annually (Lowe, 2010). Organic cosmetics are cosmetic products that are made from natural ingredients. It is becoming popular due to its health and environmental benefits. The plan is to setup up production facilities as well as retail outlets as the plan is to market the brand as being 100% locally owned and produced. The SWOT analysis will further discuss the advantages of entering into the organic cosmetic market in the UAE.
| STRENGTHS | WEAKNESSES | INTERNAL | 1. Natural products: Unlike regular cosmetic products, the purpose of organic cosmetics is to be friendly to the skin and the environment. The ingredients of the cosmetic items will be extracted from plants, fruits, minerals etc. As the trend of usage of environmental friendly products is increasing, the demand for
Bibliography: Duncan, G. (2011, August 8). ADMC. Retrieved September 26, 2012, from The National : http://www.thenational.ae/business/retail/glamorous-results-for-make-up-in-uae KT Business. (2011, 2 13). Khaleej Times. Retrieved 9 25, 2012, from http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/business/2011/February/business_February191.xml&section=business Lowe, A. (2010, 8 24). Al Nisr Publishing. Retrieved 9 26, 2012, from Gulf News Business: http://gulfnews.com/business/retail/organics-taking-firmer-root-in-uae-1.672155 Organic Agriculture Centre of Canada. (2009, July 4). Canadian Organic market - An Analysis. Retrieved September 26, 2012, from OACC.