The biggest challenge of 2020 year Corona Virus. The whole nations are helpless. Covid-19 spread all around the world just like a black cloud. Pandemic attack not only effect on people eating and spending habits but also its many industries suffering from it. Covid-19 was limited everyone in houses but intelligent minds not limited their quest of knowledge at home they explored and some amazing researches. In all of these i am sharing an interesting research about the beauty corner Yes you are absolutely right i am talking about makeup industry.
The global cosmetic companies manufacturing
different beauty care products with a combination of chemicals. These makeup
products are generally used by consumers to enrich the look or aroma of their
bodies. The aspects that were increasing the growth of the market before the
COVID-19 pandemic include the improvements in the current lifestyle, rising their
disposable income coupled with the growth in concern related to appearance. Moreover,
these companies are using social media platforms such as Instagram, YouTube for
promotion of products and engage more customers base. With the help of social
media influencer, the companies are advertise their products on various
platforms.
Nevertheless, with the outbreak of Covid-19 since
January 2020, the product growth rate of global cosmetic market has shown declining
results. Because of lockdown situation going on around the globe cosmetic
manufacturers had to shut down their production units as a result of the labor
shortage. Moreover, numerous cosmetic stores were also shut down as the result
of the COVID-19 pandemic.
The global cosmetic industry report is segmented
based on product type into skincare, haircare, make-up, toiletries &
perfumes, and oral cosmetics. Almost all the segments of the cosmetic industry
have experienced a similar downfall in sales during the outbreak due to the
closing of offline stores at various locations across the globe.
Effect of COVID-19 on the cosmetic industry can
be perceived globally in all the regions including North America, Europe, Asia
Pacific and Rest of the Word. In the US, the lockdown condition is going on for
a long period of time as per the government advices. Majority of companies also
had to cut down the labor or had to send their employees for work from home
leading to a decline in production rate. Furthermore, the same breakdown of the
cosmetic industry was also experienced in the European region. Also, Italy is
known as highly effected country with Pandemic Covid-19 in European region so
here the fashion capital globally had suffered most. Most of the fashion shows was
cancelled due to the COVID-19 outbreak. Now, the outbreak has spread in the
other parts of the region also including Spain, Germany, France, and UK which
is further projected to decrease the demand for cosmetic products in the
region.
Key companies getting affected in the market
include Beiersdorf AG, Chanel S.A., Coty Inc., Estee Lauder Companies Inc.,
Henkel AG & Company, KGaA, Johnson & Johnson, Kao Corp, L Brands, Inc.,
and L'Oreal SA and many more. Cosmetic companies such as Procter & Gamble
Co/The have experienced some major setbacks in the market of China. One of the
major effects was on the company’s global supply chain that was affected by
halted factory work in China. These consequences long term impact on unemployment
rate. The unemployment of labor force highly effected labor family not only but
also at economy level. Moreover, in Asian countries such as India have lockdown
the whole nation and major e-commerce companies including Amazon.com and
Walmart owned Flipkart has halted the supply of non-essential products
(including cosmetics) which is also estimated to affect the cosmetic industry
in the near future.
Reference: ResearchAndMarkets.com
