Health of makeup industry deteriorated in the corona period, know how many companies are making up for the loss
The coronavirus epidemic has negatively impacted the global economy. All sectors including real estate, auto industry, and aviation industry have suffered from corona. The make-up industry is also not untouched by this. Beauty salons and beauty products have been greatly affected in the corona.
The decline
The biggest reason for the deteriorated state of the make-up industry is that the corona period had a period of corporate meetings and personal interactions, which has led to a steep decline in sales of many beauty products such as cosmetics, hair care, and fragrances.
The global beauty industry trades $500 billion per year
During this period, sales channels such as branded stores of cosmetic companies, duty-free shops of the airport were also closed, which caused losses to the companies. According to a survey, the global beauty industry does about $500 billion in business a year. It provides employment to crores of people. The survey revealed that the global beauty industry was in decline last year. This trend of decline is still intact.
Major decline in revenue of companies
According to the survey, a large decline in revenue has been observed by Coty Inc, which makes Gucci lipstick. At the same time, the revenue of the beauty industry of America may decline by about 35 percent. The EMEA (Europe, Middle East, Africa) market accounts for 40 percent of Coty’s total sales. The company’s sales from the sector declined by about 22 percent.
Companies are adopting the strategy of spending cuts
It is known that after the quarterly results, Coty shares have seen a decline of about 15%. In this context, Coty’s Chief Executive Officer (CEO) Sue Nabi said that the lockdown has affected us like others. The growth of e-commerce cannot make up for our store closures. In such a situation, beauty companies are adopting a strategy to cut expenses to make up for the loss. This includes strategies such as layoffs, closure of shops, and change in structure.
