Added: 10/14/2005 |
Find makeup, compare prices, and buy it!30% of Eastern European cosmetic manufacturers have accepted a challenge to compete with world`s greatest innovations.
The volume of Eastern European makeup market in the year 2003 totaled near 7,000 million dollars. It was predicted that in 2004 it would make up to 5-6 billion dollars but according to the market survey conducted by one of the Russian media groups, it made 7.3 billion dollars. This massive leap certainly makes the Eastern European market a fairly attractive site for the development of world`s makeup business.
Under the conditions of tough competition with world`s cosmetic giants, it is difficult for Eastern European manufacturers to gain leading positions on the market where powerful foreign companies compete. If you compare prices for popular makeup items with those proposed by Eastern Europeans, the today`s situation on the market will be clear to you. The reality is that global cosmetic companies do not have to spends millions on buying patents and advertising. As a result, these factors provide them with competitive benefits. Generally, the giants invest approximately 15-20% of their turnover on innovative solutions, and about 30% on advertising.
It is obviously irrational for most Eastern European makeup companies to compete with international giants in advertising. For instance, the advertising budget of Procter&Gamble company aimed at Russian consumers in the year of 2004 amounted to 35 million dollars. According to media monitoring it is possible to draw a conclusion that the foreign companies spend near 500-700 million dollars a year on the promotion of their cosmetics. Such tremendous expenses on advertising greatly effect the cost of foreign cosmetics. It`s enough to compare prices to see the significant difference.
But eastern innovations cannot compete with the western products. Even despite the fact that 30 % of today`s Eastern European cosmetic companies claim to produce innovative products, in reality, according to the recent makeup tests, they just offer the products of the previous generation. Compare prices!
One of the reputable Russian marketing agencies has generalized experience of the large cosmetic companies and classified innovations on the market of makeup and perfumes, defining 5 lines of innovation development. Thus, for example, to promote makeup products based on the innovative chemical components, a company can choose between two strategies:
1) Presentation of hi-tech and innovative status of the company by associating its products with complex chemical compounds of the unknown or rare names, special medical terms, etc.
2) Simplification - detailed and easy for understanding explanation of components effect accompanied with action schemes and metaphors.
Before rounding off the article, a few words about makeup reviews. A large number of those can be found on the Internet. If you would like to get to know about the latest developments and innovations in the domain of makeup, read about the new makeup fashions, find numerous makeup-related articles and reviews, purchase cosmetics or simply compare prices for it. World Wide Web is your torch carrier.
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