THE COSMETIC MARKET: THE SUCCESS OF ITALIAN COSMETIC INDUSTRY

Abstract

The cosmetic industry represents a worldwide market that over the last years has experienced an impressive and rapid growth, despite the global recession’s adverse effects, which have deeply changed consumers’ behavior toward the purchase of goods. The industry has proven to be able to adapt to market changes and to develop new niche products and technologies, especially in developing countries, where the market has much more potential. In the context of goods to meet the needs of individuals, cosmetics have taken on an increasingly large role. This dissertation is structured as follows. Firstly, it will be present a sort of overview in which cosmetics are defined in the strict sense and their development over the years. So, the starting point is represented by the history of cosmetics and the value assumed by it with the progress of the years. Then the main stages of the history of cosmetics will be covered, useful to understand the growing importance of this product over the centuries, its link with society and its continuous evolution. In the second chapter, the international cosmetic market will be presented through the description of its size, the composition of the companies operating within it and its consumers; the trends and developments in distribution. In the third chapter the Italian cosmetic industry is analyzed. The cosmetics industry is a prosperous and constantly growing sector; especially the Italian cosmetics market is the fourth largest in Europe behind Germany, United Kingdom and France. Moreover, over 60% of the make-up used by women all over the world are designed and produced in Italy because the Italian beauty industry is sophisticated and highly developed: well-known characteristics of Made in Italy. Therefore, particular attention is given to the cosmetic district that lies between Crema, Bergamo and Milan. So, will be described in detail: the strength of exports, the recovery of domestic market demand, the distribution channels and the Italian production network. The fourth chapter will investigate opportunities and challenges for Italian enterprises in this specific moment, how the companies of the district invest in new technologies, very important to be competitive in this sector. In the last few years, technology has changed completely the rules of the game. Almost all industries are facing big shifts both in the way products and services are produced and in the way they are delivered. For this reason even cosmetic industry experienced a deep transformation and, thanks to a huge impact of all the new technological improvement in this sector, it has been transformed by today’s evolutions and innovations. The support of business cases and the various interviews submitted to the managers of the companies give a proof to all this. The strength of cosmetic production in Italy will therefore be described more precisely, also presenting practical examples, to understand reasons for the high demand for Made in Italy make-up products in particular. Lastly, the fifth chapter will introduce the main case study, an Italian company definitely oriented toward the future and new technologies.