1239 words 5 pagesI. Introduction
MISSHA has created a history in the cosmetic industry. Through MISSHA’s emergence and the remarkable success in early 2000’s, the low-priced cosmetics niche market created by them became bigger enough to attract many other companies.
However, MISSHA has recently shown rather disappointing business performance.
This paper describes Missha’s business model and other factors for their early success and also seeks possible recommendations for overcoming recent crisis.
II. Cosmetic Industry
1. Cosmetic Market Trend
There is a famous saying that ‘cosmetics are not selling product but beauty.’ Therefore, it is important to keep planning and developing product to meet the needs of customers who pursue beauty. In line with …show more content…
Their hard efforts fairly paid off in low-end market, and other late comers shared the benefit.
When they realized other brands became popular with better brand image, it was already late to change their image and the big commercials by using celebrity didn’t help them8.
1) Upgrade Brand Concept & Image
As it counts significantly for the customer to have right concept and right brand image in addition to the low price, it is recommended for MISSHA to modify their brand concept and image to put MISSHA to above all other players. In addition, MISSHA tried to broaden the target customers beyond early twenties while the target customers don’t feel that. 2) Quality Improvement
Based on consumers comments, it was found that consumers feel that MISSHA has rather lower quality than other low-priced products. It is clear that MISSHA should overcome this quality issue. Also, customers are getting more concerned about the quality and the effect of the cosmetics on the skin after use. Therefore, it should be helpful if MISSHA enhance their new product development.
1. Kim BJ. Research on Business Models [dissertation]. Catholic University, Business School; 2005.
2. MISSHA. Annual Report for YR 2006. ;2007(November 19).
3. Korea Cosmetic Association. Cosmetics Industry Trend. ;2007(Nov. 5).
4. Seo JY.