Industry Analysis & Industry Trends
The Online Perfume and Cosmetic Sales industry has performed strongly over the past five years, in line with the general online retail industry. The industry took a hit in 2008-09 due to the global financial crisis, and remained subdued over 2009-10 as the effects lingered. During these two years, consumer sentiment was low and savings levels increased. Although industry products are somewhat inelastic, as they are perceived by many to be necessities, they are still discretionary items. Consumers tended to refrain from purchasing extra unnecessary items, and downgraded to cheaper alternatives of items they required. As soon as sentiment improved and economic activity strengthened in 2010-11, industry revenue rebounded solidly with a 9.8% gain... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry for the Online Perfume and Cosmetic Sales industry are considered to be low. Participants do not need to own or rent offices and storefronts, which greatly reduces initial capital costs. The extent of capital expenditure requirements is computers, software, warehouse space and equipment. The purchase of final products for sale are the most significant initial expense.
However, the perpetually evolving technology of e-commerce is increasing barriers to entry. Firms must keep up with developments in mobile technology and social media to remain competitive. Over the next five years, entry barriers will continue to increase as more firms enter the industry and competition continues to intensify... purchase to read more