Premium Beauty News - What is the outcome of the evolution in the health and beauty sector witnessed over the past five years?
Dieter Bakic - More and more brands have come onto the market over the past five years. So many brands are now available that consumers can become easily disorientated when purchasing cosmetics. The range of products on the market is just ‘enormous’. At the same time, the consumer lacks the knowledge required to recognize and differentiate between brands. And it is particularly difficult as brands do no longer come from Paris andNew York only, as they once did, but also from Russia, China, or anywhere else.
Just look at today’s consumer products stores worldwide. The consumer has a difficult time wading through the tremendous number of products on sale. As a result, brand loyalty has dropped and is less prominent in the choice of a product. Consumers now switch quite easily from one brand to another.
Premium Beauty News - The consumer has different options available based on the product sector: perfume, make-up, skin care...
Dieter Bakic - This is a consequence of the evolution that we’ve just discussed. The consumer needs clear and simple answers. Furthermore he needs to be guided. Brands which understand this and communicate effectively will win over more customers. It’s important for brands to look after the consumer.
Premium Beauty News - An evolution in products which has also had a profound effect on the suppliers themselves!
Dieter Bakic - A consequence of the globalization is that a few companies have a practical monopoly on the world market for beauty products.
In the wake of globalization, the consequences in the packaging industry, for example, were immediate. Now, industrial suppliers must be extremely pro-active in the development of new product lines. Fast-paced development is essential to meet the expectations of the market. A pro-active approach will always be the key to success. Initiative, know-how, and creativity will always make for the success of a product in the eyes of the consumer.
Premium Beauty News - What do you think of the “full service” business model, which seems to be more and more important in the relationship between customers and suppliers.
Dieter Bakic - The interest of full-service depends in part on the product itself - whether one is selling specialized or general products, for example. It also depends on the development of each product sector. Products that can be of interest for “full service” are primarily quickly manufactured promotional products.
The question which arises is: are companies that apply this business model successful? It is necessary to be a good marketer, to have the best service, and to be creative in order to be a good partner.
Premium Beauty News - And what is to be said concerning environmentalism and sustainable development in this context?
Dieter Bakic - We are at the beginning of a new revolution. Lots of expertise is required to develop products which can satisfy the criteria of sustainable development.
Premium Beauty News - Counterfeiting is a serious issue for companies in the Western world at the moment. What is your opinion?
Dieter Bakic - If we look, for example, at the Chinese, they quickly obtained a know-how that took decades to be developed in Europe and in the USA, much like the Japanese did at the beginning of 1960s. And now, the Chinese are quickly developing their own spirit of innovation and have made great leaps technologically.
To large extent, the West is certainly at the origin of their success, particularly in packaging and the area of full-service. Yet one shouldn’t lose sight of the fact that demand in Europe and the USA underlies China’s prosperity.