Cosmetics Industry Analysis

The global market is full of industries, companies and products. Every point of those built the total market by somehow. There are hundreds of industries if you will start thinking of starting a company, For example, food industry, clothes industry and medicine industry. One another large industry is cosmetics industry which is the industry that MAC belongs to. In this essay a lot of points will be discussed about the cosmetics industry and MAC Company and its lipstick product.
This paragraph will clarify the overview of the cosmetic industry. With a quick look throughout the international cosmetics industry we will discover that sales reach about $170 Billion dollars a year. It’s distributed pretty uniformly around the world with $40 billion

Cosmetics industry has 5 core segments. The first segment is the hair care segment with 20% share of industry. Shampoos make up the majority of hair care segment since everyone use shampoos, another type of hair care products is hair color, and the leaders in this category nowadays are Pantene and L’Oreal. The second segment is skin care market with 27%. It consists of products like cleansers, facial products, anti-acne, and anti-aging. The market leaders here are Procter & Gamble (Olay) and Unilever (Vaseline). The third segment is fragrance with 10% share. This is the highest profit segment of the cosmetic industry but consumers are fickle. Hence, it's not easy to last long time in this market but some companies and brands did like Chanel. The fourth segment is the make up with 20% share of market. It includes everything from lipstick to nail polish. The

The raw materials like Sesame Seed Oil, Castor Oil, and Silica are made in India. Materials are then transferred to Canada by holder ship. There are high taxes on items leaving India. M.A.C manufacturer is located in Canada. The headquarters is the distributor they assemble the materials and distribute the finished product. The products are then shipped round the world on trucks, trains and ships. The products are distributed to and sold in 135 countries including the US, England and France. France has 5 stores, 4 of which are Paris. France has low taxes at only 1.1%. In M.A.C the suppliers are from India they supply raw materials like Sesame Seed Oil and Castor Oil. MAC Cosmetic products are designed at their headquarters in New York City, New York, USA. The first retailer could be stores like Mazaya or Faces the cosmetics store which sell all brands and the second is the consumer. Some retailers are only available online which makes shopping for their products more difficult, especially when it comes to buying the right make-up. M.A.C didn't activate any of horizontal or vertical integration. M.A.C holds its inventory either on their headquarters in Canada or U.S.A or in stores on the different countries. There are a lot of types of M.A.C lipstick but in general its price is between $15 and $20. MAC relay’s on the