Case of the Nickel Company
- Men's cosmetics industry
- Product definition
- Demand trends
- Supply analysis
- Industry shareholders
- The behavior of the consumer
- Demand segmentation
- The buying process
- The case of Nickel enterprise
- Its consumers
- Supply of goods
- Nickel and its competitors
- Consumer expectations with respect to Nickel
Like women, men are increasingly aware of the importance of their bodies and their image. According to the reports in 1995, 65% of men thought that, it is "important to take care of their skin? and it was seen that, 19% of men used their partner's skin care products. In 2004, there was an increase of about 29%.
The cosmetics market for men (care) is becoming an economic reality. Even though the size is still marginal, it is growing fast. The launches of skin care lines are increasing and there is an increase in the investment with respect to R&D and the brand strategies are gaining sophistication. Retailers are showing interest in this specific market with respect to the cosmetics for men. But it is probably due to the structuring of the distribution of cosmetics for men that this market niche will win in the coming years.
The area of cosmetics for men can be divided with various by-products such as:
? Shaving products
? Care (about the study)
These products for men are currently experiencing a great success and one can see a gradual increase of over 10% in the market with respect to beauty products. In 2003, the market value of France amounted to 679 million Euros having 18 million male consumers. In terms of perfumes, only half of 73% of men used it on a daily basis. In addition, 52% of men used deodorants, often associated with their favorite fragrance.
It should be noted that, the consumption of male cosmetics has been underestimated due to the fact that a large majority of men use products same as that of their companion. In order to establish new patterns of consumption, the brand must offer products that can be adapted to any skin type and that can "act" quickly, as men spend only 14 minutes on an average per day in the bathroom.
The company has evolved significantly over the past decade with: change in the morals and rise of selfishness in individuals. Nowadays, men worry about their body and the way they look. The trend increases with an increase in the number of single people.
There has also been the emergence of gay tendency and its democratization.This led to a sexual liberalization, both among the homosexuals and among the heterosexuals. They were called "homo sexualized straight people." This trend was even more enhanced with the advent of metrosexuals. In addition to this, there is the ubersexual: they are almost similar to metrosexuals but they display the traditional manly qualities such as masculinity, confidence, etc.
Finally, the most important phenomenon is the feminization of society. Feminine values guide the behavior of individuals and today women have gained a strong independence and they equal men although some differences still exist (particularly in terms of wages).
During the 90s, male expenses in the supermarkets had doubled. Their share in the expenses of health and beauty represented 10.5% of total value in 2003: 675 million euros against 5.8 billion of women. First in the list: shaving and aftershave then hygiene and colognes for the rest.
Tags: Nickel company, cosmetic care market for men, case study of the company
[...] The buying process We could have established a procurement process for each segment of the application, however the similarity of some steps are because of lack of adequacy. We have therefore established a common process by distinguishing the specific differences between the four behaviors. (See diagram next page) PART III: THE CASE OF NICKEL ENTERPRISE This brand shows no other claims than to improve the lives of men. Nickel is now distributed in 17 countries. Men don't feel embarrassed nowadays to stand among people to buy cosmetic products. Superstores have also contributed to the democratization of cosmetic products for men. I. [...]
[...] History In 1996, Philippe Dumont, the former head of the L'Oreal Paris group established the first beauty salon for men and launched the first four range of products under a brand "Nickel." It now consists of fifteen products,the parent company and an institute which has been established at Printemps Haussmann in Paris. It was established in places like the Marais in Paris (gay neighborhood), because it knew that homosexuals are the precursors of the new line. Nickel focuses on simplicity and offers a range of products for ?serious men who take themselves seriously. [...]
[...] Consumer expectations with respect to Nickel The choice of names and the product descriptions Nickel chose product names that surprised and puzzled the consumers, unlike other brands where the product names were traditional. According to Philippe Dumont, each book must be explicit similarly, each product must be different. The names help in the clarifications with respect to the usage of products. In fact, men are not accustomed to the use of cosmetics and they do not know when to use the product and what its benefits are. [...]