Cosmetics industry is best defined as a preparation
for external application on the human body and as a modification of the
physical look and conservation for beauty usage (Chile, February 2012). Cosmetics
industry has been controlled by a handful of multinational corporations in
early 20th century. The dominated world largest cosmetics companies
are The L’Oreal Group, The Procter& Gamble Company, Shiseido Company, and Estee
Lauder companies.
According to the
article written by Perry, the Cosmetics industry is composed of five product
segments with market share in the following
§ Skin care 27%: Skin
care makes up about 27% of the cosmetic industry, including facial cleansers,
skin moisturizers, essence, eye cream, whiting products, body lotion, anti acne
products and anti-aging products.
§ Make-up 20%: This segment
has vast sub-segment lines. It prefer to coloring products intended to enhance
people’s appearance. The categories are the following: primer, foundation, eye
shadow, eye liner, eye pencil, mascara and powder.
§ Hair care 20%: The
majority products in this segment are shampoo, conditioners, styling products,
hair color and relaxer.
§ Fragrance 10%: It
is the highest profit segment of the cosmetic industry, which occupies 10% of
the market share.
§ Others 30%: This segment
is made up of products like toothpaste, deodorants, sunscreens and other
personal care products.
The Role of Social Media in Cosmetic Industry
Social media has
revolutionized the way that cosmetic companies connect and communicate with
customers worldwide. According to Sean Singleton, group managing director of
Skive Group, discussed about social media impacts on cosmetic show in Milan
last year. He presented some statistics about how powerful social media has
changed the cosmetic industry. For example, 200 million blogs and 95,000 beauty
blog has been posted and discussed among the age of 35 to 49 years old women.
So, Let us find out how the power of the social media can influence on Cosmetic
Industry.
High Customer
Involvement and Engagement
Compared to the
traditional media, social media is a two-way line communication between target
audience and the cosmetic companies. Social media provides high customer
engagement and enhance the communication with their customers. The cosmetic
companies are able to generate customer feedbacks via different online
presences. Additionally, cosmetic companies are able to use social media to
better target and approach their own customers and listen to different voices
from them.
High Brand Loyalty
Social Media has
been successfully used by beauty and cosmetic industries as a way to maintain
and build brands. Several social media platforms such as Tumbler, Pinterest and
Instagram have been utilized popularly by cosmetic companies to present new
products and gain brand loyalty from customers. In addition, social media
offers phenomenal cost-effective opportunities for the cosmetic industry to
build their brands."At least half of Twitter and Facebook users said they
had become more likely to talk about, recommend or purchase a company's
products after they began following the company on social media,"
according to eMarketer (The Atlantic, 2011)
Generate Sales
Social media is transforming
the way that cosmetic companies generate the sales. Cosmetic companies use the
power of world-of-mouth on social media to double their sales. According to the
Kingaby research, 79% of customers, who have online shopping experience of
cosmetics and beauty products, make their decisions and purchase the products before
researching and reviewing the comments from the company’s Facebook and Twitter
(Marks, 2012).
Suggested Social Media Platforms
on Cosmetic Industry
Facebook-Estee
Lauder-Your Face, You Style, Your Profile
As
a prestigious and global skin care and cosmetic company, Estee Lauder captured
an opportunity on Facebook to create an event called “Your Face. Your Style. Your Profile”. It was an even hold in June 5th
2010 that invited consumers who were 35 to 55 years old to have their make-up
done and a professional photo taken for them. After this evens started on the
Facebook, Beth Zurn, senior vice-president of global education and special
events, said “there were approximately 6200 customers in North America
participated in this event.” (Cosmetic World.com, 2012)
The purpose of
this Facebook event for Esteer Lauder is to connect with customers and provide
the right and the best profile photo for them with professional advices. As a
result, Estee Lauder has received extensive coverage in blogs as well as
attracting more young women to buy the products (Lee, 2011).
YouTube-Lancome-Famous Makeup Artist Michelle Phan
It is evident
that the significance of YouTube has dramatically increased in the cosmetic
industry year over year in video views. The best example to illustrate is the
official video makeup artist Michelle Phan who is authorized from Lancome.
Michelle Phan is top one most popular makeup artist on YouTube and she has more
than 3.2 million subscribers on her channel. In February 2010, Lancome discovered
the power of the Michelle Phan on YouTube and authorized her as the brand’s
first ever video makeup artists. Michelle Phan has created many special makeup
videos tutorials by using Lancome cosmetics and having Lancome products
giveaway to customers.
In January 2012,
Lancome launched the limited edition cosmetic products line called Michelle’s
Glamour Eyes Kits exclusively available online and Sephore, a French cosmetics
retail store. Lancome has successfully used the influence of YouTuber to
advertise their products and build the trust with customers.
Twitter-Bobbi Brown
When I consider which
company benefits the most from twitter in the cosmetic industry is Bobbi Brown,
a makeup line led by Estee Lauder. In the past two years, Bobbie Brown has implemented
a comprehensive social media strategy, resulting in a
177% growth in Facebook fans and a 243% increase of Twitter followers, as well
as launching of the brand’s Pinterest page (Cosmetic World, 2012). Instead of
promoting products on twitter, Bobbi Brown uses twitter to provide beauty tips
and advices to customers. The success of the Bobbi Brown is that they know what
customers’ needs on social platforms and how to engage with them on twitter.
Pinterest-Sephora-Sephora
Color Wash
Pinterest is a pinboard style photo sharing website that allows users
to share and collect photos of their favorite events, interest and hobbies.
Pinterest has become the third largest social media platforms; its main target
audience is women (Mashable, 2013). Sephora, a popular French chain of cosmetic
retail store, mainly sell beauty products. On their Pinterest website, they
provide fashion tips, images from Instagram, products demonstration, and
discuss about beauty trends with customers.
In April 2012, Sephora created a new competition on Pinterest called “Sephora
Color wash”. It was an event that encouraged users to create new board titled “Sephora
Color Wash” in hair and beauty category and pin the competition page on their
board pinning five images featuring their favorite color (Simple
Zesty, 2012). It would offer users a
chance to win $250 Sephora gift card. In this successful Pinterest campaign,
Sephora got an extremely high exposure for their brand among consumers.

Bibliography
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