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This adds pressure on supply chains to meet demands and be transparent. The Price of Social ResponsibilityĬonsumers also are demanding social responsibility from cosmetic companies. If it’s a go, they want to buy immediately and expect to use the product tomorrow. They see a product on social media where they watch and read reviews. Fast DeliveryĬustomers are pushing supply chains with their demand for same-day or next-day delivery. All this data can go back to the supply chain. Customers upload a selfie and can see their options in real time.
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As noted in Euromonitor International, “From Sephora’s skin care IQ to Harrods’ Ioma machine and the Organic Pharmacy’s DNA test, consumers’ desire for customizing their skin care is stronger than in any other category.”īeauty companies are offering customers the experience of trying on makeup and foundations through apps. They can get real-time data on trends directly from customers using “try before you buy” technology.
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This is good news for beauty supply chains. The Many Shades of TechnologyĬustomers now demand that technology be part of their buying experience. Thanks to watchdog groups, environmental groups, and social media, customers are savvy about where their products are coming from and expect transparency from suppliers. Their logistics include getting source materials to manufacturing facilities, delivering the finished product to retailers, and then, picking up products that didn’t sell before their expiration dates.Īnother challenge for cosmetic supply chain managers is finding reliable sources that meet customer demands. Cosmetic supply chains source organic materials that require certain temperatures, care, and quick transportation. Cosmetics and skin care companies have a lot of product to source and move with three new product launches every year including summer, winter, and the holidays. "For example, they had one nail polish shade that was hardly selling until Jenner tweeted about how much she loved it-then it sold out in two days." The Challenges of a Beauty Supply Chainīeauty supply chains face unique challenges. "When Jenner says she hates a product on social media, the company can't give it away…But when she says she loves a product, they can't make it fast enough," Milligan says. Rick Milligan, the director of supply chain solutions at Inmar, Inc. With one Instagram post, reality star Kylie Jenner’s lip kits sold out in 10 minutes. Trends can change in minutes with a celebrity photo or video. This drive is forcing faster production and fulfillment. Product development is completely driven by consumer demand and quickly changing trends. The cosmetics industry is a great example of the move to a demand market that most supply chains are experiencing. With this annual boom, supply chain managers at cosmetic companies are challenged to meet the holiday demand. Consumers spent almost six billion dollars last holiday season on contouring kits, lip stains, and color-matched foundations. The beauty industry rakes in about $445 billion dollars a year, according to Forbes.