Developing markets provide opportunities for niche cosmetics

Citation

(2010), "Developing markets provide opportunities for niche cosmetics", Strategic Direction, Vol. 26 No. 2. https://doi.org/10.1108/sd.2010.05626bab.002

Developing markets provide opportunities for niche cosmetics

Article Type: Competitive horizon From: Strategic Direction, Volume 26, Issue 2

Smaller companies could be well positioned to exploit growth opportunities within developing cosmetics markets, according to a report published by Cosmetics Design (www.cosmeticsdesign-europe.com). While leading players have successfully turned their attention to such markets during the current economic climate, a lack of sufficient financial resources has prevented niche operators from doing likewise. However, a raft of social and economic transformations has made it easier for smaller cosmetics firms to enter emerging markets like China, India, Brazil and Russia. Healthy economic growth in such nations has given consumers greater spending power within retail sectors that have become increasingly sophisticated. Consumer interest in health and well-being has furthered a demand for natural and organically produced cosmetics that already exists within more developed markets. The report notes the potential for further growth but warns organizations against making false marketing claims or compromising product quality.

UK companies wary of taking the export plunge

A report published by Growing Business (www.growingbusiness.co.uk) claims that many UK companies perceive exporting as too expensive, complex and risky. Securing customers and creating effective distribution channels in the domestic environment is often demanding. Those targeting foreign markets face added challenges such as cultural differences and complex bureaucracy. But developing an effective strategy can help companies to succeed and exploit potential opportunities in markets around the globe. Businesses are strongly advised to do their research in order to ensure that demand for their products exists and to acquire knowledge of the markets they are targeting. The report points out organizations like the UK Trade and Investment (UKTI) and the British Chamber of Commerce can provide advice on trading issues and the skills required to successfully manage export operations. Firms will also need to decide whether to utilize agents and distributors, set up franchises or license their products to permit sales through third parties. The Internet offers further scope for promotion and sales but recognition of local needs and customs should form an integral part of any marketing strategy.

Climate change high on Global Dairy Agenda

Following the World Dairy Summit held in Berlin, dairy industry groups around the globe have joined forces to create a Global Dairy Agenda for Action. The European Dairy Association (EDA) is among seven organizations pledging its support for the agenda and a five-point plan covering everything from production to distribution has been drawn up as part of the industry’s commitment towards climate change. The plan aims to standardize the scientific methodology used to assess dairy production’s carbon footprint, promote environmentally-friendly global best practices, heighten awareness and improve measurement of farming and dairy manufacturing’s impact in order to identify ways to reduce emissions, and align global efforts to enhance manufacturing processes through cost-efficient and innovative technologies. A report published by Food Navigator (www.foodnavigator.com) notes how the agenda signals an unprecedented level of cooperation within the industry and that its success may also depend on the level of support given by policy makers.

A sight on the tiles

Graduates at the Massachusetts Institute of Technology have developed temperature-sensitive roof tiles that may significantly impact on energy usage. This apparent breakthrough has emerged following a competition where graduates were asked to use materials imaginatively in order to improve energy efficiency. According to a report published by the Engineer Online (www.theengineer.co.uk), the team initially experimented with mixed fluids before deciding on using a commercially-employed polymer within a water solution. The result is tiles that respond to the sun and change color from white to black depending on whether they are reflecting or absorbing its heat. Early indications suggest that cost savings of around 20 percent may be attainable when the tiles are in their white, reflective state. The potential level of savings through heat absorption has not yet been determined. While the team remains confident that manufacturing of the tiles can be cost-effective, further research into both cost and durability is needed before the product can be deemed a feasible proposition.