Benefit Cosmetics is a cosmetics company that has belonged to the French giant LVMH since 1999.
The turnover in 2021 was 1.6 billion euros. To date, it is one of the most dynamic brands in the company. Services represent 18% of turnover. In 2020, more than 50 new products were launched. The group has recorded a 35% increase in its turnover in 2 years. The group's share of net sales at the end of 2021 was 6%.
SWOT analysis
Strengths
The products sold by the group are known to be of excellent quality. Their belonging to LVMH reinforces this impression for consumers. Indeed, LVMH is one of the largest French groups. It is one of the most registered brands worldwide. It should also be noted that Benefit Cosmetics has environmentally conscious packaging. This is a strength today because customers are more and more sensitive to it. In addition, the brand's products are easily recognisable. The site is also a means of giving advice to Internet users, which makes it more personalised than the vast majority.
Weaknesses
Benefit Cosmetics has relatively high prices, competition is very intense, and these prices can discourage consumers. In addition, there are not a large number of physical stores, which sometimes makes distribution difficult.
Finally, these are products that have a lot of substitutes and are easy to reproduce, which is not always a good option for the group.
Opportunities
Benefit Cosmetics is owned by a large brand and, therefore, has a large number of influencers. With its presence on the net and on all networks is asserted. The brand is recognised as one of the prestigious brands. In addition, innovations are frequent, which allows consumers not to get bored and to satisfy a larger target. Finally, the brand's products are available on the Amazon site. Threats
Counterfeiting is one of the biggest threats to the group. Indeed, it is more and more widespread in the whole world, and especially in Asia. Counterfeiting discredits the brand in the eyes of consumers. Competition is also a significant threat for Benefit Cosmetics. It is present everywhere, in the major distributors, which are developing their private labels or on the Internet, where dozens of new brands are marketed each year. The group's marketing mix
Product policy
The products are classified into various categories. The first is makeup, which includes a wide variety of cosmetic products. Since its creation, the group has specialised in beautifying eyebrows. Today, it has diversified by offering products suitable for the eyes, complexion, and even lips. Pricing policy
Prices are generally between 16 and over 100 euros depending on the range chosen. They remain high, especially in a world where competition is very important. For consumers, this is a likely barrier to buying, especially as they have a large choice among all the offers and, therefore, have high bargaining power. Distribution policy
Benefit Cosmetics has a series of physical stores.There are 85 worldwide, which is relatively few compared to other brands. The group is present in 59 countries and has 3,000 eyebrow bars. The products, as we said above, are also present on the internet, whether on online stores or sites like Amazon. Communication policy
The group is present on social networks and the Internet. This presence allows it to maintain a link with Internet users and to offer flash offers, thus increasing its visibility with potential customers. Conclusion
Benefit Cosmetics is a company that has a good reputation, especially through its affiliation with the luxury giant LVMH. Despite everything, the number of its physical stores remains limited, just like its references, especially if we compare it to the competition. Its online presence on sites like Amazon further enhances its visibility. That is an opportunity for the brand. In the future, the number of stores and references will undoubtedly have to increase, especially in a sector where the competition will not stop evolving. Its presence on social networks nevertheless allows it to promote its products, and its site, in many countries.