Abstract
At the turn of 21st century global beauty and personal care industry underwent dramatic changes in its territorial structure. The main factors of that changes were world economics institutional changes, primarily – the international trade liberalization, as well as the R&D progress. During abolition of tariffs or tariff cut the competition in beauty and personal care ratcheted up sharply. That was accompanied by sea changes in its macrogeography, particularly, by the manufacturing transnationalization (mainly, in the form of its «drift» to developing countries) and the general expansion of the range of countries specializing in the beauty and personal care production. The main drive-forces of beauty and personal care transnationalization and the resulting territorial changes in the industry are discussed.
Highlights
For the end of the 20th – the beginning of the 21st centuries the growth of open economic borders of countries as well as the growth of international capital movements, the liberalization of national trade regimes, the formation of a global financial market and a global information network were main characteristic occurrences (Gorbanev 2014; Rodionova 2010, 2016)
The paper includes an analysis of changes in the volume of global beauty and personal care products output from 1990 to 2015, as well as an analysis of the top beauty and personal care companies turnovers from 1977 to 2015 and their setting up manufacturing strategies for the period from 1920 to 2016
The intensification of the process of the global beauty and personal care industry transnationalization can be indirectly judged by the growth in the number of transnational corporations (TNCs) that are the main initiators of international capital transfers
Summary
For the end of the 20th – the beginning of the 21st centuries the growth of open economic borders of countries as well as the growth of international capital movements, the liberalization of national trade regimes, the formation of a global financial market and a global information network were main characteristic occurrences (Gorbanev 2014; Rodionova 2010, 2016). The beauty and personal care industry stands out significantly against the background of the main consumer sectors. The specifics of this industry are consumer character of its products, its transportability, as well as high involvement in world trade, helped by the reduction of WTO customs tariffs. Since 2014, the average tariff for chemicals for the European Union member countries was 4.54%, for the USA – 2.76%, for Russia – 5.74%, for China – 6.5%, for Latin American countries – 5-10% (Wto.org 2014)
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