Cosmetic industry Essay Example | Topics and Well Written Essays - 750 words

Cosmetic industry - Essay Example However, the cosmetic industry is still growing with ever-increasing sales fueled mainly by women’s obsession to look better. For such reasons the cosmetic industry has been under strict monitoring and regulations. Global Cosmetic Industry Cosmetics are being manufactured by a few dominant multinational corporations that came into existence in the early 1900s. However, the supply of cosmetics is widely distributed between both developing and developed countries. Cosmetic industry is valued at approximately US $40 billion. Those cosmetic products which have "Made in France" written on their labels are highly valued on the international market. Since cosmetics are popular among women who are fans of TV and movie actresses and women who want to be like those actresses, many cosmetic products specifically perfumes are endorsed by actors and singers. The global cosmetic industry appears to be changing rapidly. Various known companies sell cosmetics both online and in retail outlets . As far as the marketing tactics used are concerned they include sponsoring fashion shows, getting brand ambassadors to do ads and other forms of conventional advertising. As life expectancy has increased cosmetic industry has modified its products from beauty enhancing to anti-ageing or beauty sustaining products. As globalization happens more consumers are using standardized cosmetics rather than affordable and low quality local products. As a result cost of production has been minimized tremendously by the firms. Europe and North America continue to be the major markets for cosmetic products while Asian countries specifically India, China and Indonesia are growing markets due to high population growth rate and increase in media exposure. Major cosmetic companies â€Å"Names and sales in Billions of US Dollars of the top 20 cosmetic companies in the world 1. Procter & Gamble– $26.3, 2. L’Oreal - $25.8, 3. Unilever- $16, 4. Avon- $7.6, 5. Beiersdorf- $7.5, 6. Estee Lauder- $7.3, 7. Shiseido- $6.9, 8. Kao- $5.9, 9. Johnson & Johnson–$5.6, 10. Henkel- $4.4, 11. LVMH- $3.7, 12. Coty- $3.5, 13. Chanel - $3.0, 14. Limited Brands– $2.7, 15. Mary Kay– $2.6, 16. Yves Rocher– $2.5, 17. Natura- $2.1, 18. Alticor - $1.9, 19. Kose- $1.8 and 20. Oriflame - $1.7† (Perry). Ethical issues involving the cosmetic industry Before one starts discussing what is ethical or unethical one must understand the meaning of the word ethics. Ethics is the study of morality. It deals with what is the right thing to be done and what is wrong. Ethical principles can vary between groups and individuals, however, certain moral principle are universal. These include being honest in business dealings, respecting elders and respecting the laws. There are people or firms who are doing something which is legal yet unethical. Currently, the aforementioned statement is the biggest dilemma the world faces when discussing and implementing ethical behavi or. As far as the cosmetic industry is concerned it has been accused of unethical practices on multiple occasions. The reason behind unethical practices is almost always profit maximization at the expense of customers and other stakeholders. Main ethical issues are the following: 1. Animal testing: Many cosmetics are tested upon animals like mice, pigs, monkeys and rabbits. This results in noticeable suffering and pain for the innocent animals. Animal testing is done to measure the level of skin