Assessment 3 - Industry Article

docx

School

University of Texas *

*We aren’t endorsed by this school

Course

101

Subject

Business

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by kipcaleb

1 Assessment 3: Industry Article Student Name Institution Affiliation Course Instructor Date

2 Assessment 3: Industry Article The skincare industry is one of the most promising industries in the world today. Many people from diverse backgrounds focus on beauty and personal care products, especially those dealing with the skin. Beaty is best explained based on the wellness and quality care of the skin with treatment using various beauty products. This industry is growing significantly, hence the need to target it in an ideal and promising country within the Asia Pacific ( Erdossy, 2016). This assessment explores the skincare industry and its new operations in Singapore. In addition, it highlights an overview of the industry in the Australian industry with its importance economically and in job creation. The assessment further discusses the political and cultural issues or impediments to doing skincare business in Singapore and recommends approaches the business can adopt to progress suitably in the country. Skincare Industry and its Operations in Singapore The ideal country to expand this business in the Asia Pacific in Singapore due to its focus on the beauty and personal care market, recording revenue of US$1.13bn in 2022. The skincare industry in Singapore is suitable and favorable since women spend more of up to S$270 every month on beauty and wellness ( Madan et al., 2018). Moreover, Singapore is important for various beauty brands, including skincare, because its multi-cultural society provides the ideal testing grounds and market for the industry focusing on expanding their business in the region ( Chen et al., 2018). In addition, some of the skincare products are formulated and made in Singapore, thus presenting their appropriateness for the business and its expansion. For example, the recent launch of a home-grown skincare product labeled Heure was released to the market during the pandemic. The Covid-19 pandemic influenced the recent adoption of the e-commerce route, which has been ideal for the current market for skincare products in Singapore. This

3 marketing approach for skincare products has set a favorable market for the business and increased their demand, hence the ideal setting for venturing into the skincare industry ( Chen et al., 2018). All people in Singapore are drawn to beauty and their willingness to invest in quality skincare products due to their increasing disposable income and the rising affluence of the general population and local customers. Overview of the Australian Skincare Industry Additionally, the skincare industry is the best-performing business in Australia, recording a growing revenue growth in the region. Australia is a growing business hub in the Asian-Pacific region. It is considered a strategic geographical location, having streamlined regulations and serving as a strategic position for the Western countries focusing on the East ( Quade, 2021). The country serves as a fundamental and well-positioned nation facilitating the transition of powers towards the Asian-Pacific. In addition, its primary strengths, such as a regional business center and an open economy with in-depth integration in global trade, make it a trading nation ( Madan et al., 2018). The skincare industry in Australia is highly valued; for instance, it was valued at $1.3 billion in 2021, and its predicted growth rate is more than 3% ( O’Mahony & Lobo, 2017). Based on the Australian skincare market report, the skincare industry is projected to record a high 5.26% CAGR in the forecast period between 2022-2027. The market summary of the skincare industry in Australia is illustrated below.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 The skincare industry in Australia was valued at US$2.39 billion in 2021. Moreover, the skincare segment revenue amounts reach a high of US$1,532.00m in 2022, with a positive annual growth expected to be 4.87% (CAGR 2022-2026). Per capita consumption and expenditure of skincare in Australia recorded higher values compared to the global and regional levels in 2020 ( O’Mahony & Lobo, 2017). The industry has employed many people due to the creation of hypermarkets and supermarkets being the leading distributors of skincare products bearing a value of 31.3% in 2020 ( Quade, 2021). The skincare industry has created various job opportunities in Australia, including Organic Skincare specialists, Skincare Pick & packers, Quality Control technicians, and e-Beauty advisors, among others, thus increasing access to more wages as the industry grows. Political and Cultural Issues/Impediments of the Skincare Industry in Singapore Singapore has bilateral and regional Free Trading Agreements with various countries, including Australia. The country has duty-free levies for the exports done within the FTAs. Their levies for Goods and Services Tax are at 7% and are reported to increase to 8% in 2023 and 9% in 2024 ( Thangavelu et al., 2021). Additionally, goods imported to the

5 country attract custom duty and/or excise duty. The country is an open economy and encourages trade and investment with no restrictions on foreign-owned businesses, except in areas accounting for national security, such as air transportation, public utilities, and others. In Singapore, all dutiable goods manufactured or imported attracts customs and/or excise duty. The country is also filled with diverse or multi-cultural communities favoring organic skincare products. This could limit the sale of other skincare products while favoring organic and their own since they formulate and make them ( Chen et al., 2018). Since Australia is a signatory to the FTAs, there will be limited restrictions in operating business in Singapore, thus favoring the skincare industry. Recommendations Singapore is a growing business hub in the Asia Pacific, ideal for new ventures like the skincare industry. Its multi-cultural population and the favorable spending among women for beauty favors the initiation of the industry. New businesses in the skincare industry can progress well in Singapore by taking advantage of the available resources and trading frameworks and approaches. First and foremost, Chen et al. (2018) recommend market research be done adequately to determine the appropriate and well-positions place to attract many customers and invite potential investors into the business. In addition, it should consider various agreements and trade tariffs before opening and operating the business to avoid issues with the trade tariffs and policy regulations by the country. It is also recommended that the business operator file for tax levies and prevent issues or tax noncompliance, which can be linked to major problems, including the closure of the business in the region ( Chen et al., 2018). For this new business in the region, it is important to use the established e-commerce stem to allow for the successful reaching of the customers ( Erdossy, 2016). In 2021, reports showed up to 4 million e-commerce users in

6 Singapore, presenting an untapped sector for effective business and reaching out to many people. Conclusion The skincare industry is the most promising and advancing business in the Asia Pacific nations; for example, it has recorded significant growth in Australia, with the possibility of success in other regions. Establishing this business in Singapore is recommended because the region serves as a trading hub, is multi-cultural, and has set up various measures to facilitate the business, like the e-commerce platform.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

7 References Chen, Y., Wang, M., & Xu, Y. (2018). The Current Situation and Measures of Cross-Border E-Commerce in Cosmetics Industry: Case Study of Company ABL. Open Journal of Business and Management , 6 (02), 265. Erdossy, D. (2016). Elevating the industry. Professional Beauty , (May/Jun 2016), 126-127. Madan, S., Basu, S., Ng, S., & Ching Lim, E. A. (2018). Impact of culture on the pursuit of beauty: Evidence from five countries. Journal of International Marketing , 26 (4), 54- 68. O’Mahony, B., & Lobo, A. (2017). The organic industry in Australia: Current and future trends. Land use policy , 66 , 331-339. Quade, A. (2021). Beauty expo Australia returns. Professional Beauty , 48-50. Thangavelu, S. M., Narjoko, D., & Urata, S. (2021). Impact of FTA on trade in ASEAN and Australia using customs level data. Journal of Economic Integration , 36 (3), 437- 461.

8 References k

Related Documents

Administración de procesos puntos extra 5.docx

op-ed.docx

Week 1O Discussion Privacy and Corporate Liability.docx

BUS5112 Written Assignment 1.docx

10ES2023_11012220.edited.docx

Fashion - Market Research Brief.docx

Document_angelica_RTB.docx

IT460_Unit 10-Rogers^JTarantino.pptx

99ef6bd1-5187-4a27-8832-0217815e08ff.JPG

TCA3 STRATEGIC MANAGEMENT.docx

PF.docx.pdf

Sophia UNIT 2 - Milestone 2.pdf

Recommended textbooks for you

Purchasing and Supply Chain Management

Operations Management

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Cengage Learning

Marketing

ISBN:9780357033791

Author:Pride, William M

Publisher:South Western Educational Publishing

MARKETING 2018

Marketing

ISBN:9780357033753

Author:Pride

Publisher:CENGAGE L

Principles of Management

Management

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax College

Understanding Management (MindTap Course List)

Management

ISBN:9781305502215

Author:Richard L. Daft, Dorothy Marcic

Publisher:Cengage Learning

Foundations of Business (MindTap Course List)

Marketing

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Understanding Management (MindTap Course List)
Management
ISBN:9781305502215
Author:Richard L. Daft, Dorothy Marcic
Publisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning