In a bid to tap into the increasingly popular organic beauty category, high-end retailers are reaching out to small, independent cosmetic companies.
We get under the skin of these B2B sales dynamic.
Made predominantly with plant extracts and naturally derived ingredients, beauty products have been getting a lot of press in recent years. In fact, the Personal Care and Cosmetic Products Market Report, published by Allied Market Research, predicts the global market will be worth $19.8 billion by 2022, registering a CAGR of 10.2% during the period 2016-2022. And while the rapidly growing consumer demand for organic skincare, hair care and make-up items is clearly an international phenomenon, Europe is at the forefront of this trend as the second largest market in terms of global revenue.
High-end retail puts its best face forward
People clearly want organic – The Soil Association’s Beauty and Wellbeing Market Report found 43% of people surveyed look for a certification logo when shopping for organic cosmetics, while 42% of people choose natural and organic products because they believed they are better for the environment.
So how are people getting their hands on organic cosmetics? Many of the UK’s beauty companies offer their product range online, using e-commerce sites to sell direct to their customers. However, high-street and high-end retailers are quickly catching onto this category’s potential and, in order to capitalise on consumer demand for organic products, many retailers – for example Selfridges and Harrods – are increasingly looking to stock organic beauty products from smaller, independent companies.
But what’s the deal for the independents?
Having their products stocked on the shelves of a prestigious retailer might do wonders for a company’s brand awareness and recognition, but being a supplier can sometimes have a negative impact on cashflow if they have to wait weeks or even months for invoices to be settled.
We know this category is evolving quickly, and for companies to take full advantage of all the opportunities that affords, they need to have a cashflow they can rely on. For companies that feel their growth is being restricted by lengthy payment terms imposed by their customers it’s worth looking into select financing services, such as those offered by Global Asset Finance Limited and partners, which can quickly unlock the cash that they are owed.
Global Asset Finance Limited and partners currently supports several growing companies with their cashflow.
To find out more about how using select financing services can enable your company to grow without having to worry about chasing payment, Invoice Finance provides the answers.