As disposable incomes increase, the industry will reach out to under represented markets
Los Angeles, CA (PRWEB) September 15, 2012
The recession ravaged most of the United States' retail sector over the past five years. However, operators in the Online Perfume and Cosmetic Sales industry faced steady demand from bargain-seeking consumers who opted to compare product prices on the internet. As such, revenue grew in each of the past five years. The industry has grown at an average annual rate of 7.8% to reach an estimated $3.8 billion in revenue over the five years to 2012, according to IBISWorld industry analyst Nikoleta Panteva. Online Perfume and Cosmetic Sales industry performance has been supported by the rising use of the internet as a shopping tool. Its prevalence has allowed consumers to find the items they are seeking at attractive prices. As internet connectivity has grown, so too has industry demand. In 2012 alone, IBISWorld expects the number of broadband connections to increase 14.8% while the number of mobile internet connections grows 27.4%. Coupled with rebounding per capita disposable income, these factors are expected to push industry revenue up 10.3% during the year.
The Online Perfume & Cosmetic Sales industry faces growth potential in currently under-represented markets, including consumers under the age of 25 and male shoppers. These segments have grown strongly over the past five years as cosmetic manufacturers tailor products specifically to them. This trend is anticipated to continue, and even strengthen, over the five years to 2017 and will underpin industry growth in the outlook period. The number of operators has risen at an annualized rate of 10.6% from 2007 to 2012 and will continue growing as operators find niche market and product opportunities.
The rebounding economy, which will translate to higher disposable incomes and less available time to shop, will be the biggest driver for industry growth over the next five years. Per capita disposable income is expected to increase at an average of 2.3% per year, enabling consumers to buy more and higher-value products. At the same time, increased mobile internet connectivity will allow shoppers to make purchases on the go, further strengthening the industry's performance. Over the five-year period to 2017, IBISWorld projects revenue to grow. Market share concentration for this industry is low because most of the products sold by online perfume and cosmetic retailers are not exclusive, so it is difficult for an online retailer to establish strong consumer brand recognition and loyalty. For more information, visit IBISWorld’s Online Perfume & Cosmetic Sales in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry primarily sell on the internet fragrances and products that are applied to the body to improve appearance. As a result, general retailers' and beauty product manufacturers' online sales are not included within the scope of the industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.