The Beauty Industry: Political, Economic, Social, Technological, Legal, and Environmental Aspects

This article explores the various aspects of the beauty industry, including political, economic, social, technological, legal, and environmental factors. It discusses the impact of safety concerns, brand loyalty, and eco-friendly practices on the industry.

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Beauty industry
Introduction
Makeup and skincare products are merely the tip of the iceberg in the beauty market.
People need to remember to use their deodorant and brush their teeth. There may be an infinite
number of products available in this market, but all of them revolve around the same central
promise: the betterment of the consumers (Ismail, 2018). Cosmetics from reputable beauty
brands can boost one's self-esteem because they help one look and feel better. People with
fresher breath thanks to toothpaste. Body odor can be prevented with deodorant. Makeup
enhances features such as the lips and conceals flaws such as under-eye circles. Cosmetics
companies are aware that their customers have specific needs in different situations, such as
while interviewing for a new job or when going on a hot date at a nearby restaurant. To be clear,
what this means is that everyone, including oneself, is constantly trying to impress others (Kolios
and Read, 2013). Therefore, the success of the cosmetics business depends on several aspects
that will be discussed in more detail below.
Figure 1: UAE organic growth of beauty industry
Political

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Safety concerns about consumer goods are widely discussed in the United Arab Emirates.
Because cosmetics are intended for direct skin contact, this topic is discussed more freely in this
subset of the beauty industry. The Food and Drug Administration (FDA) will be able to take a
more "hands-on" approach to assure product safety thanks to the passage of the Personal Care
Product Safety Act. Manufacturer registration, recall notice filing, and ingredient statement
reporting will all be required of businesses. Furthermore, many businesses in this market either
source their materials from abroad or conduct international sales director (De Regt et al., 2019).
It can be tough for them to comply with the political and legal standards of the country they are
visiting. There are stricter ingredient standards in places like Europe and Canada. They've
prohibited over 500 substances used in cosmetics out of a total of 1328. Products containing any
of the prohibited substances will be denied entry into the country. The Food and Drug
Administration has a massive responsibility in vetting all components for potential danger
(McAndrew, 2011). Although this primarily addresses the cosmetics sector, these standards are
generally applied across the beauty sector.
Figure 2: Beauty Dynamics Retrieved from Euromonitor
Economic

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The cosmetics business is surprisingly resilient during economic downturns. It continued
to thrive even after the 2008 financial crisis. Yes, consumers become more cost-conscious,
opting instead to spend money on necessities, but here's the catch: Like food and shelter, beauty
items have risen to the level of a basic human need. Shampoo and soap will always be necessities
in people's toilets. However, in 2015, the beauty industry in the United Arab Emirates made
nearly $56 billion, with hair care being the most profitable sector (Alexis, 2019). Skincare came
in at a close second and is forecast to earn over $11 billion this year. Not only do women spend
more money on acne and scar-removal products, but so do males. All across the web,
communities are springing up to discuss the best ways to maintain beautiful skin in a forum or
subreddit. The third position goes to cosmetics, which account for nearly 14% of the market
share, while oral hygiene products fall to last with only 5.6%. Hairstylists, barbers, manicurists,
skin care professionals, and massage therapists make up a large portion of the over one million
individuals employed in this sector. Those figures will only increase from here on out.
Figure 3: Organic products market share
Social
The beauty sector encompasses a wide range of businesses and products, including those
devoted to hair removal, skincare, nail salons, hair styling, plastic surgery, massage therapy,

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medical spas, and even perfume bottles. And in any of these aisles, you'll find dozens of labels
selling essentially the same thing. Many goods will be tried before a customer settles on one.
Nonetheless, what comes next? As a result, they give up looking. Their behavior shifts to that of
devoted brand followers. You can bet that they have completely devoted themselves to one
particular brand and that nothing short of a public relations disaster will make them switch
allegiances (Kim and Kim, 2019). It's not just vertical that brand loyalty radiates. An individual
discovers that Company A makes their preferred shampoo and then notices that the same people
are responsible for making a new variety of moisturizers. Because they have such a good
experience with the shampoo, they decide to give the moisturizer a try. That they'll also enjoy
something else that Company A introduces isn't a great stretch of the imagination. It continues
indefinitely. That's why new players in the cosmetics industry always have to work harder to
stand out from the crowd. They may alter the font used on the bottles, the size of the package, or
both, to catch the buyer's eye for a brief moment. However, the fight to win their approval does
not begin and end on the aisle. The world wide web, online communities, and critical evaluations
are all included in this expansion.
Technological
As predicted, the internet has significantly altered the cosmetics market. Nowadays,
consumers can order just about anything online and have it shipped directly to their doorstep
within a couple of days. The results might go either way for well-known companies like L'Oréal
and Dove. Those two are often mentioned because they have been prominent in the beauty
industry for decades. It wasn't that long ago that the competition for shelf space was limited to
brands with similar offerings. A new cosmetics company need only list its wares on Amazon or
open a shop on Etsy to start selling online. Since getting shelf space in retail stores is so difficult

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and expensive, many businesses today only deal with online customers directly through their
websites (e-commerce). Brand loyalty helps ensure continued success for the most popular
names in the business. But that is precisely what these new stores provide: something novel,
exciting, and, in many cases, specialized (Sedita et al., 2021). Big brands rarely create items that
are tailored to people with Asian or African American hair. However, these smaller brands are
gradually expanding to meet the demand. Not everyone has easy access to these specialized
items, but many are willing to wait for high-quality cosmetics that address their individual needs
(again, brand loyalty comes into play).
Legal
Some of the ingredients used in cosmetics might be downright perplexing. They may be
subject to FDA oversight without having received formal FDA approval. The most important
rules that the cosmetics and beauty business must adhere to are the Fair Packaging and Labeling
Act (FPLA) and the Federal Food, Drug, and Cosmetic Act (FD&C Act). The FD&C keeps tabs
on what goes into food and drinks and the FD&C makes sure that misleading claims are made
about those foods and drinks (Kim et al., 2021). Issues may prevent the product from making it
to stores. Even a recall could be necessary. In addition, numerous countries outside of the UAE
have prohibited substances because they aren't up to code (as determined by the FDA).
Environmental
Going "green" is becoming an increasingly central goal in the cosmetics sector.
Lessening their impact on the environment, they are switching to more eco-friendly packing
methods. However, the use of excessive plastic is becoming more of a problem in the cosmetics
and skin care industries. There was a time when microbeads, a component in skin care products,

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were all anyone spoke about. The use of these beads resulted in a reduction in dull, lifeless skin
on the face. However, they're manufactured from plastic, which is terrible for the ecosystem.
Toxic chemicals used in shampoos and aerosol deodorants are only two examples of personal
care products that might have an adverse influence on the natural world. Companies are working
to mitigate these negative consequences, but there is still a way to go before consumers perceive
any changes.

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References
Alexis, P.A., 2019. The Big Beauty Business: A Fundamental Analysis of The Beauty Industry
Institute, And Its Economic Value. Omega Publishers.
De Regt, A., Montecchi, M. and Ferguson, S.L., 2019. A false image of health: How fake news
and pseudo-facts spread in the health and beauty industry. Journal of Product & Brand
Management.
Ismail, A., 2018. International Marketing Strategies in the Celebrity Cosmetics Industry: A Dual
Case Study: Huda Beauty and Fenty Beauty.
Kim, M.J. and Kim, M.J., 2019. Affecting factors for job stress and client service of estheticians
in the medical beauty industry. Asian Journal of Beauty and Cosmetology, 17(2), pp.157-
168.
Kim, Y.J., Lee, J.H., Lee, S.G. and Lee, H.H., 2021. Developing sustainable competitive
strategies in the beauty service industry: a SWOT-AHP approach. Sustainability, 13(19),
p.10852.
Kolios, A. and Read, G., 2013. A political, economic, social, technology, legal and
environmental (PESTLE) approach for risk identification of the tidal industry in the
United Kingdom. Energies, 6(10), pp.5023-5045.
McAndrew, M., 2011. Beauty Shop Politics: African American Women's Activism in the Beauty
Industry. The Annals of Iowa, 70(3).
Sedita, S.R., Belussi, F., De Noni, I. and Apa, R., 2021. The technological acquisitions paradox
in the beauty industry. European Journal of Innovation Management.