IMPACT OF COVID-19 ON THE GLOBAL SUPPLY CHAIN
IN
HEALTH AND BEAUTY INDUSTRY IN UK
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Table of Contents
Introduction................................................................................................................................3
Aim and Objectives....................................................................................................................3
Literature Review.......................................................................................................................4
Concept for health and beauty industry in UK and corresponding impact of COVID-19
over this industry....................................................................................................................4
Impact Analysis of COVID-19...............................................................................................5
Identifying market value of health and beauty industry in UK..............................................7
What is being purchased.........................................................................................................8
Long term impact of COVID-19 in health and beauty products industries...........................8
Research Methodology...............................................................................................................9
Project Plan..............................................................................................................................10
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Introduction
COVID-19 crisis has shocked global beauty and health industries. This industry had to come
up with this crisis in a positive way by changing their business products to hand sanitizer and
cleaning agents and started providing beauty and health services to frontline workers. At that
time leaders of these industries had to ensure sustainability and growth of their company.
This industry produces $500 million per year and also generates millions of jobs, indirectly or
directly. However, due to outbreak of COVID-19 pandemic, global cosmetics products of
beauty industries have shown a decrease in growth rate. Due to global lockdown situation
many retailers had to close their business and shops also most manufacturers started to close
their production as an impact of labour absenteeism.
Beauty and healthcare products such as skincare, haircare, toiletries, perfume, make-up
materials, and other oral cosmetics, sales of all these products had experienced a downfall
due to closed offline shops and stores at several parts of the globe. Most companies in UK
had to cut down their workforce or had to allow their employees to work remotely from
home. Italy is known as 'fashion capital', it had also experienced a massive loss as all fashion
shows got cancelled due to outbreak of COVID-19. It had a widespread impact on other part
of regions such as Germany, Spain, and France which observed a decrease in demand for
cosmetics products during lockdown.
Aim and Objectives
This research has been done to get a perspective of financial impact of COVID-19 outbreak
and disruption of global supply chain on beauty and health industries in UK. According to
complete target of a research, it has to be gone through under some methodology to get
proper and relevant data, which has to be analyzed and help to formulate suggestions on how
to overcome these challenges in health and beauty industries in UK. Thus, objectives for this
discussion are mentioned below.
To evaluate impact of COVID-19 in global supply chain in UK health and beauty
industry
To understand responsible factors in changing condition of global supply chain in UK
due to COVID-19
To recommend different approaches for enhancing global supply chain efficiency in
UK after COVID-19
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Literature Review
Literature review plays an important role in research studies since it builds foundation for
concurrent discussion. A better literature review of a study corresponds to a more robust
infrastructure of research study (Lee, et al. 2020). Discussion below indicates different
features identified in literature review.
Concept for health and beauty industry in UK and corresponding impact of
COVID-19 over this industry
Health and Beauty industries are categories under gender, region, distribution channel and
category. According to category this field of area is divided into sun care, hair care, fragrance
and deodorants, makeup, and colour products. By gender it is sub-categorised under men,
women, and unisex categories (Ibrahim, et al. 2021). Distribution of these product includes
supermarkets, pharmacies, online sales platforms, retail stores and shops, and others.
Regionally it comes under the market of Europe, North America, Asia Pacific, and LAMEA.
In 2019, sun care and skincare products represented a highest market share, however,
fragrance and deodorant products have been projected to have a high share during forecast
time period. In every individual including any region or gender, it plays a major role in daily
used products. Presently higher rise in awareness in health and skin and consciousness about
beauty are those key factors of high demand for skincare and health products. According to
gender, women segment have led a contribution in terms of cosmetics market in 2019, which
is expected to grow sustainability during cosmetic market forecasting period. Confluent in
development, lifestyle and beauty impacted growth of market for beauty and health industries
(Prata, et al. 2021). Moreover, this market of cosmetics over the globe has shown
continuous and sustained growth in following year’s prior COVID-19 outbreak, with a help
of rising consciousness of beauty and health within female population.
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Figure 1. Cosmetic market By Category
(Source: [Link], 2020)
According to distribution level, supermarkets and offline stores held a major role in rising of
sales in 2019, and it has been forecasted to be dominant during forecast period. In every
individual including any region or gender, it plays a major role in daily used products.
Presently higher rise in awareness in health and skin and consciousness about beauty are
those key factors of high demand for skincare and health products. According to gender,
women segment have led a contribution in terms of cosmetics market in 2019, which is
expected to grow sustainability during cosmetic market forecasting period. Confluent in
development, lifestyle and beauty impacted growth of market for beauty and health
industries. Moreover, this market of cosmetics over the globe has shown continuous and
sustained growth in following years prior COVID-19 outbreak, with a help of rising
consciousness of beauty and health within female population.
According to distribution level, supermarkets and offline stores held a major role in rising of
sales in 2019, and it has been forecasted to be dominant during forecast period. Having ample
workforce, consumer products under one roof, sufficient workplace, and convenient time of
operation, supermarkets, and offline store gain popularity. Rise in urbanization, rise in class
of working and market competition of prices boosted popularity of supermarkets in both
developing and developed region.
Impact Analysis of COVID-19
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In Late December 2019, an infectious disease named COVID-19 has been originated
from Hubei province of Wuhan city in China.
Beauty products manufacturers started switching their business to produce more hand
sanitizers, personal care products, and cleaning agents, which was in huge demand
during this pandemic.
According to reach a large consumer-based population, manufacturers of beauty and
healthcare products increased their use of social media platforms with their herbal
care products.
Due to imposed lockdowns and curfews around world, a huge effect has been noticed
on normal lifestyle, health consciousness, and wellbeing of individuals, which
affected these manufacturing industries.
Restrictions on import and export of goods were key challenges of manufacturers due
to imposed lockdowns and curfews which have been implemented due to this
outbreak of a pandemic (Tomičić Furjan, et al. 2021).
However, there were several benefits for stakeholders,
This report develops a quantitative analysis of market trends, estimation of cosmetic
market analysis on 2019 to future to get perception of availing market opportunities.
Information according to key drivers, cosmetic market, and restraints opportunities.
Determination of opportunities of prevailing cosmetic market has been done through
in-depth analysis.
Country like UK is considered and mapped accordingly to their contribution to its
global market in revenue.
This report gives a perspective of current position of market players of cosmetics.
This report also includes an analysis of global as well as regional cosmetic markets
trends, key players, segmental market, areas of application, and cosmetic market
growing strategies and plans.
Mckinsey has explored and projected that revenue of global beauty and healthcare industries
will fall 20% to 30% in 2020 ( MEHTA, 2021). According to its challenges to earn revenue
and a sustainable growth of this industries some consideration should be followed. In this
report it has been highlighted that how to recover against every scenario, two key elements
has been considered, identifying market of beauty products and what is being purchased.
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Identifying market value of health and beauty industry in UK
Figure 2. Cosmetic market By Gender
(Source: [Link], 2020)
Prior COVID-19 outbreak most major beauty industries, markets and stores accounted for
85% of product purchases. And through online store it made close to 60% sales at that same
time. By this time after pandemic and announcement of lockdowns 30% of beauty industry
market was shut down totally (Strange, 2020). Some of them has been closed totally and
some new openings has been delayed for a year. This figures are as per what consumers are
reporting in ‘Mckinsey COVID-19 Consumer Pulse Survey’.
In UK ‘The Boots UK’ drugstore chain has reported that sales has been decreased by two-
thirds between March 25 and April 3, 2020, with a decline in revenue of beauty products.
Consumers of UK said that they spent 50% less on beauty products than normal in those two
weeks
What is being purchased
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Figure 3. Cosmetic market by Distribution
(Source: [Link], 2020)
During this new of lifestyle and working culture people started to adopt new processes and
culture to work by working at home, wearing masks, social distancing had created as huge
impact on beauty industries. As importance of beauty make-up materials, fragrance and
deodorants were less. Prestige brands, there a decline in purchasing of 55% to 75% cosmetics
and fragrances and deodorants according to years ago. Wearing masks at home our at
workplace decreased the importance of makeup and use of cosmetic products
(Globenewswire, 2020).
Many beauty salons has closed due to this rise in new trend such as DIY do-it-yourself
cosmetic products were in high demand. Moreover, health care products such as skin care,
body care, hair care were having beneficial for these companies according to market trends.
Sales and purchases of Luxury soaps in France were rising up to 80% on that week of March
2020., which has been reported by NPD, who track point-of-sale data and spending of
consumers. In Zalando, largest fashion and life-style e-commerce marketplace in Europe has
reported a massive raise in self-care beauty and pampering categories, which included
candles, detox, and aromatherapy products. Sales of skin, nail, hair, care products were 30%
up.
Long term impact of COVID-19 in health and beauty products industries.
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Among all challenges occurred by COVID-19 some of are permanent. However, to overcome
this challenges there are two areas which could alter this industry in fundamental ways.
Digitalization of market
Customer of this post COVID-19 world are not willing to outside of home and buy this
cosmetics products, hence these industry should focus more on online business through e-
commerce platforms. Advertising through social media will attract those active customers
specially among female segments (Thomson, 2020).
Adaptation of innovation
Innovative products attract customers and this will help this industry to grow more in future
and keep sustainability. Adoption of new culture and trend is office, such as allowing
employees to work from home, shift preference will help to face labour shortage, thus
increase in production and good revenue.
Research Methodology
There are several research philosophies available to accomplish a research according to its
aim and objectives. Philosophy of research includes a question that ‘ How data for this
research has been collected?’
Positivism research method helps to get factual knowledge gained by a researcher through
observations. However, in this research this method has been considered to collect data. As it
helps to get genuine and reliable knowledge of this topic. By considering this philosophy,
data that will be collected are observable and quantifiable in this research which will help a
researcher to obtain a statistical analysis of data. According to collecting practical and
genuine data on impact of COVID-19 on beauty and health industries in UK, positivism
research philosophy will help in a better manner. Information which has been collected from
different sources and origins is organized through this positivism method and analyzed
statistically.
According to its design ‘Descriptive Design’ has been considered as it helps a researcher to
get involved solely to describe those situations with respect to a research study. In this
theory-based method helps to analyse, gather and present those collected data. It is easy,
time-saving, and cheap to collect for a researcher according to topic of research. Research
requires an approach that defines what approach a researcher should consider while studying
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a topic. 'Inductive research approach’ has been considered as prediction of theories is
required to predict forecast of impact of COVID-19 on health and beauty industries in UK. In
this research study ‘Secondary Data Collection’ will be considered as collecting data through
a survey or interview according to this topic is quite difficult for a researcher. Hence, data
will be collected from different business journals, government reports, press releases, and
internet.
Collected data will be analyzed through ‘Thematic Data Analysis Process’ implementing
‘Data Triangulation’ method. This method helps a researcher to analyze data and information
with help of literature of this research, theme, and personal understanding on a theme.
Project Plan
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References
Journals
Boyacι-Gündüz, C.P., Ibrahim, S.A., Wei, O.C. and Galanakis, C.M., 2021.
Transformation of the Food Sector: Security and Resilience during the COVID-19
Pandemic. Foods, 10(3), p.497.
Gregurec, I., Tomičić Furjan, M. and Tomičić-Pupek, K., 2021. The impact of
COVID-19 on sustainable business models in SMEs. Sustainability, 13(3), p.1098.
Liu, Y., Lee, J.M. and Lee, C., 2020. The challenges and opportunities of a global
health crisis: the management and business implications of COVID-19 from an Asian
perspective. Asian Business & Management, 19, pp.277-297.
Phillipson, J., Gorton, M., Turner, R., Shucksmith, M., Aitken-McDermott, K., Areal,
F., Cowie, P., Hubbard, C., Maioli, S., McAreavey, R. and Monteiro, D.S., 2020. The
COVID-19 pandemic and its implications for rural economies. Sustainability, 12(10),
p.3973.
SHARMA, M.A. and MEHTA, M., 2020. EFFECT OF COVID-19 CONSUMER
BUYING BEHAVIOUR TOWARDS COSMETICS: STUDY BASED ON
WORKING FEMALES. PalArch's Journal of Archaeology of
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Silva, A.L.P., Prata, J.C., Walker, T.R., Campos, D., Duarte, A.C., Soares, A.M.,
Barcelò, D. and Rocha-Santos, T., 2020. Rethinking and optimising plastic waste
management under COVID-19 pandemic: Policy solutions based on redesign and
reduction of single-use plastics and personal protective equipment. Science of the
Total Environment, 742, p.140565.
Strange, R., 2020. The 2020 Covid-19 pandemic and global value chains. Journal of
Industrial and Business Economics, 47, pp.455-465.
Thomson, E. and Bullied, A., 2020. Production of ethanol-based hand sanitizer in
breweries during the COVID-19 crisis. MBAA TQ, 57(1), pp.47-52.
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Websites
[Link], 2020. Cosmetics Market by Category (Skin and Sun Care
Products, Hair Care Products, Deodorants & Fragrances, and Makeup & Color Cosmetics),
Gender (Men, Women, and Unisex), and Distribution Channel (Hypermarkets/Supermarkets,
Specialty Stores, Pharmacies, Online Sales Channels, and Others): Global Opportunity
Analysis and Industry Forecast, 2021–2027, Viewed on 17.04.2021
<[Link]
[Link], 2020. Impact of COVID-19 on the Global Cosmetic Industry, Viewed
on 17.04.2021 <[Link]
release/2020/04/15/2016351/0/en/Impact-of-COVID-19-on-the-Global-Cosmetic-
[Link]>
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