The overall market is highly characterised by the dramatic growth of new brands, new location for the markets and new sub classification all accelerated by global implementation of digital technologies. However, the foundation of success have changed for the leading brand organisation the challenge has turned in to one of the most influencing and innovative industry. In this context, marketing is most essential element that would help the company to promote and sale their products in the global market. Therefore, in order to establish successful strategy for marketing, it is necessary to understand the market in which the company is competing. Based on this the strategy of marketing the study presents marketing opportunities and strategies. Moreover, the study illustrates the strategies by highlighting the dominating economic factors influencing the market, the external analysis of the environment and major success factors for the La Mer Company, beauty and skin care industry in Singapore as, in relation to their competitors.
Cosmetic and beauty skin care are one of the most competitive market in Singapore. Along with the emergence of technology, researching on new cosmetic products and combination to develop products has become comparatively easier. As a result of which, skin care products are being developed as faster pace (Digitaljournal.com. 2018). However, Singapore is increasingly growing as one of the most favourite destination amongst the south East Asian countries as international cosmetic platters with high expenditure on cosmetic products. It is due to the increasing concerns for beauty amongst both men and women that is further accelerating growth in the Singapore cosmetics industry (Musa 2014). Therefore, emergence of the new cosmetic brands collaborating with the newly launched products is creating an exceptional competition for the cosmetic sector within the industry. Moreover, some of the leading international cosmetic producer have developed their market in Singapore such as SK2 (P&G), Shu Uemera (L’Oreal) cle De Peau (shiseido), La prairie (lux Asia).
In this aspect, there are almost over 70 business listed organisation that both imports and produces cosmetics and toiletries products in Singapore, including the mass market to premium products of luxury brands (Rncos.com 2018). However, since Singapore is high cost producing location, most of the organisation have products produced in the lower cost countries in that region. Therefore, these helps the country to take the benefits of the strategic location and its close proximity to low cost manufacturing countries. In this, the high-end retail stores features international brand image including Estee lauder, Lancôme, MAC, Christian Dior and Shiseido that are dominating in the market. On the contrary, the mass brand of markets mostly the top most brands including Olay, L’Oreal, Nivea, Biore build up the massive marker of the retail industry. These segments are observed in almost all the major districts of shopping and malls. In a whole they constitute almost 85% of the market in supplementary with the smaller chain stores such as small beauty stores and Venus with almost 25 stores and 16 stores in the market (Euromonitor.com 2018).
These competitive markets are usually segmented through e commerce platform, which is fast growing industry with the traditional retailer confirming the online presence in the market. In accordance to the local distributor, the challenges are observable in the strong sector of logistics where increasing number of consumers are purchasing skin care and cosmetic products from the international ecommerce websites, which are offering low prices for the products.
From the perspective of competitor strategy of pursuit, it can be said that if the globalisation pressure are string in Singapore, the organisation may face larger challenges. However, if its assets operate are at only home location, then its consistent independence may hang on its capability to over its new competitors, by redeveloping around the particular circle of supply chain. In order to sustain the competition in the market, the emerging organisation in required focusing on the competitor within the industry and needing to stress upon the competitive position of industry’s strategic group (Marketanalysisnews.com 2018). The smaller organisation are needed to focus on the expanding the value of the product and service provisions within the boundary of the industry.
The Singapore market value for the beauty and cosmetic care products accounted for growth in value in the year 2014, although the growth was slower in the year 2014. According to the sources made by the industry and accessible published research in the market, it can be attributed for a more challenging economic environment and increasing competition from the travel industry. From the reported sources, it has been found that Singapore beauty industry market size is huge which segments in the industry with specifications such as skincare fragrance, hair care and cosmetic and skin care products. However, the assumption for the cosmetics market in Singapore is anticipated to grow at a CAGR with an average of 5% from the year 2016 to 2020 (Export.gov 2018).
The business of beauty and cosmetic industry is highly resilient to growing economic cycles that consistently drives the production in Singapore, in this context, the sources of the industry reports that almost five new markets enters the market each of the year which is not always necessary to encourage the potential growth of the customer base. In order to sustain economic competition, top most brands needs to highly invest in advertising, promotions and marketing along with investment in research and development (Alden and Nariswari 2017). Moreover, the product life cycle may be short for the emerging new brands and the distinguished products, which are introduced in the market at a regular basis. In this aspect, the revenue in the cosmetic industry in Singapore accounts to almost US$178m in the 2018. However, the market has been expected to grow yearly by almost 1.8% by the year 2023(Rncos.com 2018). From a global comparison, most of revenue is generated in Singapore.
The features of economic competition shows that Singapore has a fast emerging and prolific industry that are built upon products and services on the beauty salon industry. Most of the economic productivity are now driven by changing trends in social media that resulted in the evolution of the concept of grooming and beauty for both males and females.
From the growth rate of the industry within the industry life cycle it can said that it has been found that with more than 2000 women surveyed, the reports show that the study is statistically significant. This is because amongst the entire population of almost 2 million most of women consumer belonged to the age group 15-25 years of age who preferred cosmetic skin care products in Singapore (Heng 2018). Amongst the entire industry, skin care has the most share of the market, where the growth potential of the beauty salons are reliable on the several factors such as dem0graphics, growth of population, and latest techniques of skin care. Singapore has consistently developed their beauty market industry since the year 2010, but the growth in the year 2014-15 was slower due to lazy international economy and Singapore’s weak industry of manufacturing. The government as well is making an effort to redevelop the economy by limiting the dependence on the foreign employment and increasing productivity in several sectors (Westjohn et al. 2017). In order to boost FDI growth the country also offers the concessions of tax, easy loans and foreign firm’s majority within a local company. The liberal laws of the country also makes it easier for the foreign nations to purchase real estates. However, the major challenges of conducting business in Singapore are high taxes on excise based on some of the products.
PESTLE analysis
Political
The political challenges in Singapore is relatively low. In fact, according to the political and economic risk consultancy the country enjoys most limited amount of political risk within the entire continent. However, the emerging companies in the cosmetic industries mat face problem while importing the raw materials while manufacturing the products. Moreover, there have been reports found there are increasing fear of legal suits that may limit the import activities of business (Mordorintelligence.com 2018). Therefore, the political scenario within the industry is changing regularly with increasing number of new entrants thereby giving concession on tax.
From the economical perspective, it can be said that Singapore is a vibrant free economy in the market, which is developing rapidly. The per capital income of the country is high amongst the ASEAN provided with a corruption free environment that supports the sector of business, thereby making it the most competitive countries. From the industrial perspective it is evident that most of imports of the cosmetic products are done from US which shows that cosmetic trade flows is almost $340,554 with almost 15% of the imports that are being sold in Singapore and 85% of the ignores are as well exported to other countries (Statista 2018).
From the social perspective, Singapore is similar to other eastern economy, which follows traditional values of the family. However, younger generation may be more attracted to western culture. Moreover, the residents works hard to increase the productivity of nation. Therefore, cosmetic industry can as well expect higher rate of purchasing power from the consumer.
Ecommerce platform and social media plays a major role in the advancement of Singapore, which has helped making communication easy thereby increasing connectivity with the consumers (Ang 2018). Therefore, the residents living in Singapore and people from other countries could easily connect with the business sectors for buying the products.
The government of Singapore thinks that growth of ecommerce is reliable on the transparent and favourable legislation in the market. Therefore, in case of ecommerce platform of the beauty and cosmetic industry there might a problem that the industries have to face while setting up business in the country (Kunhadi et al. 2017). In this context, Singapore has launched certain policy initiates such as commerce laws and policies to support the business such as Electronic transaction Act, Intellectual property rights, tax issues and import and export procedures.
The ministry of environment has been working effective to sustain the business and environment from growing population and other factors of the environment, as a result the demand for a green skin and cosmetic products are increasing which may be major problem for the urban areas.
Cosmetic care industry is one of most competitive market in Singapore provided with the modernisation of technology, and researching on new products and different combination that has helped in development of skin care products,
The skin care industry has developed several brands such as SK2 (P&G), Shu Uemera (L’Oreal) cle De Peau (shiseido), La prairie (lux Asia) that may take up most of the share in the market.
Skin care and cosmetics is a lucrative industry which as well highly profitable when the appropriate product is introduced. This may be helpful for the industry that is planning to bring diversification in the products.
Skin care and beauty products may have huge number of substitute and may get replaced owing to chemical and raw materials used in producing these products the scenario today is such that business organisation are constantly moving towards organs and green products that are eco-friendly in nature (Khuong and Duyen 2016).
If the companies sells high priced products customers in that case may tend priorities products with high quality. Therefore, as long as the quality of products in maintained the purchasing powers of the purchaser will remain low.
In case the organisation produces its own products utilising, raw materials needed for the productions may influence the supplier less comparatively.
Singapore market value for the most premium and mas products of skin care and other cosmetic is almost US$514 million that makes up almost 5.3% from the year 2013. It has been found that almost five new brands enter in the market each year. In order to maintain the business the topmost highly invest on advertising, promotion as well marketing practices to enter in the international market. The domestic retail market is highly sophisticated with several segments within the market that are inclusive of customers with high disposable income who are seeking premium and standards products whereas some are giving local occupant population
The trends nowadays are more progressed towards green product that are naturally made up of organics materials. Moreover, social media is highly force the business organisation to advertise and promote their products through social media.
References
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Ang, A.G.U., 2018. The Recruitment and Training Practices of a Health and Beauty Network Marketing Company in Singapore. Ascendens Asia Theses and Dissertations Digital Archives Abstracts, 1(1), pp.255-255.
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