PRODUCT INNOVATION IN COSMETIC INDUSTRY – CASE STUDY OF MAJOR COSMETIC COMPANIES

Abstract

The global cosmetic industry is constantly developing. It is characterised by regular growth and high competitiveness. At the same time for numerous companies innovation seems to be the vehicle of growth. The purpose of this paper is to analyse the product innovation of three major cosmetic companies: L’Oréal, Estee Lauder and Shiseido. The paper emphasizes product innovation as a crucial factor, which affects the competitive advantages of each of the presented cosmetic fi rms. Data for all the companies was collected from their 2014 annual reports. The research is performed using the case study method. Firstly, the paper presents overall picture of the global cosmetic industry. Next part is focused on product innovation in the cosmetic industry. Afterwards, the article introduces the description of major cosmetic companies and their crucial product innovation, which are delivered in the table. Lastly, conclusions are presented.