1 CHAPTER 1 SCOPE OF THE STUDY 1.1 INTRODUCTION ...

2.2 INDUSTRY ANALYSIS2.2.1 Ethnic cosmetics and toiletries in United States of America:According to Mintel (2007) global research indicates that the majority of activity in theEthnic cosmetics and skincare market is occurring in the US. The Ethnic skincare, haircare, and cosmetic market in the US have an estimated market value of $2 billion. Morethan 25 percent of the US female population is Black or Hispanic. In numbers, thisequates to 40 million Black or Hispanic female persons in the US. Within the US, growthof the Ethnic population outpaces that of White Americans.For the United States, it is estimated that Ethnic cosmetic sales in 2007 totalled $70million. This figure represents only two percent of the cosmetic category. With the Ethnicpopulation accounting for more than 20 percent of the US population and with the factthat Ethnic groups such as Hispanics, African-Americans and Asians spend about threetimes more on general market beauty products, the growth potential is in this marketsegment is evident (Joyner, 2007: 13). Armstrong (2009) claims the Ethnic woman’sspecific market to be 35 percent of the women’s overall market, thus presenting uniquepotential for business growth. The population of this group of women increases at 20percent annually, compared with 1.1 per cent growth in white woman of Non-Hispanicbackground (Armstrong, 2009). In the United States, Ethnic minorities are expected tobecome the majority by 2042 (Mason, 2008:10).In respect of product trends in the US, bioactive botanical ingredients are said tobecome more pervasive as the natural and organic market matures (Mason, 2008:10).According to Just-Style (2003) sales in the natural and organic sector currently areincreasing by 20 percent per annum, making this sector the fastest growing in the NorthAmerican cosmetics and toiletries market. High growth rates are attributed to the rise inEthnic purchasing, as well as mainstreaming of natural and organic products.Distribution in mass market retailers is also increasing as retailers focus on ecologicaland natural products. Mass merchandisers like Wal-Mart and Target, are introducing11