Xue Jane
1.0Situation overview
1.1Market Definition and size
Recently, Australia rapidly expanding economies continue to represent an enormous growth opportunity. Emerging markets, where the burgeoning middle class is increasingly seeking luxury products, are expected to account for 17 percent of the world beauty market by 2022. As the global leader in prestige beauty, Estee Launder positioned to meet the needs and define the aspirations of these newly affluent consumers. (Estee Lauder Inc., 2012)
The Estee Lauder Companies (Estee Lauder) manufactures markets makeup, skin care, fragrances and hair care products in over 140 countries spanning the Americas, Europe, the Middle East, Africa and Asia Pacific. It has wholly owned or majority-owned offices in 43 countries and territories.
1.2 Industry structure and trend
The Australian cosmetics industry activity is concentrated along the eastern seaboard, with approximately 83% of industry establishments in New South Wales, Victoria and Queensland. (Lev, 2013)
As news report indicated the premium cosmetics sector would grow by 6% worldwide in 2011. (Data sourced from Reuters; additional content by Warc, 2011) Besides, the industry is growth in the past five years. In particular, the overall mature nature of the industry, which is characterized by numerous competing lines, has restrained growth. At the downstream retail level, there has been a flood of parallel imports, encouraged by the strong Australian dollar and increased consumer confidence in online retailers. (Lev, 2013)
In addition, the Australian cosmetics industry will increase the number of distribution channels to expand their consumer base and maximize growth and profit. (Lev, 2013) , and increase its emphasis on technology and research and development. This will occur globally as the market trends towards market globalization. (Lev, 2013)
1.3 Macro-environment Analysis
1.3.1 Economic
Australian real household disposable income
In general, the
1.1Market Definition and size
Recently, Australia rapidly expanding economies continue to represent an enormous growth opportunity. Emerging markets, where the burgeoning middle class is increasingly seeking luxury products, are expected to account for 17 percent of the world beauty market by 2022. As the global leader in prestige beauty, Estee Launder positioned to meet the needs and define the aspirations of these newly affluent consumers. (Estee Lauder Inc., 2012)
The Estee Lauder Companies (Estee Lauder) manufactures markets makeup, skin care, fragrances and hair care products in over 140 countries spanning the Americas, Europe, the Middle East, Africa and Asia Pacific. It has wholly owned or majority-owned offices in 43 countries and territories.
1.2 Industry structure and trend
The Australian cosmetics industry activity is concentrated along the eastern seaboard, with approximately 83% of industry establishments in New South Wales, Victoria and Queensland. (Lev, 2013)
As news report indicated the premium cosmetics sector would grow by 6% worldwide in 2011. (Data sourced from Reuters; additional content by Warc, 2011) Besides, the industry is growth in the past five years. In particular, the overall mature nature of the industry, which is characterized by numerous competing lines, has restrained growth. At the downstream retail level, there has been a flood of parallel imports, encouraged by the strong Australian dollar and increased consumer confidence in online retailers. (Lev, 2013)
In addition, the Australian cosmetics industry will increase the number of distribution channels to expand their consumer base and maximize growth and profit. (Lev, 2013) , and increase its emphasis on technology and research and development. This will occur globally as the market trends towards market globalization. (Lev, 2013)
1.3 Macro-environment Analysis
1.3.1 Economic
Australian real household disposable income
In general, the
References: Data sourced from DigiDay; additional content by Warc staff. (2012 December 04). Digital models yet to mature. Warc News. Data sourced from L2; additional content by Warc staff. (no dates). Beauty brands shun digital. Data sourced from L2; additional content by Warc staff. (2010 December 2). Beauty brands shun digital. Warc News. Data sourced from Reuters; additional content by Warc. (2011 May 25 ). L 'Oréal confident on luxury. Warc News. Estee Lauder Inc. (2012). The Estée Lauder Companies Inc. New York. LevKosta. (2013). Cosmetics, Perfume and Toiletries Manufacturing in Australia. Australia: IBISWorld Pty Ltd. Make-Up Industry Profile. (2012). Make-Up Industry Profile. Australia. MitchellSue. (2013 Feburary 14). Real cost of cosmetic changes . The Finacial Review. RosenbloomBert. (2013 ). Marketing channels : a management view . Cincinnati, Ohio : South-Western/Cengage Learning .