Skin care brands and beauty brands are in a competitive market these days and even with the appropriate resources, timing, and opportunities; some fail and do not make it. There are various reasons, these brands fail and at various stages of the growth cycle. Some fail at the early stages as a start-up, other brands fail years later for different reasons. The two most competitive markets, within the beauty industry are anti aging and acne treatment. Here you find the most failures even though these two particular vertical markets are the strongest.
Anti-aging products market tends to be resilient to economic trends, consumers desire to look young and healthy. Skin treatments for anti aging, will growth worldwide to reach $291.9 billion by 2015. And acne remains a common skin disorder experienced by teenagers and adults, affecting about 40 million to 50 million Americans, according to the American Academy of Dermatology.
Regardless of size of a brand and company, there are pitfalls and conditions that can bring unexpected bad circumstances to a skin care business causing it to fail. Here are the most popular reasons why skin care brands and businesses fail.
5 Most Popular Reasons Why Skin Care Brands Fail
1. Lack of experience
Start-up and established brands make mistakes due to lack of experience that can cause a business to fail. Start-up skin care brands often lack experience with distribution processes, retailing, and online marketing. While growing more established brands often fail at scaling the brand with national distribution and international markets. The lack of experience by key decision makers can negatively affect the business at any stage.
2. Proper resources not available
Brands at any stage often miscalculate what resources are required and necessary to accomplish the desired tasks. Often proper resources are not allocated at the right time and projects are underfunded, under staffed, not the right talent, not all basis covered, and so on. This can cause a brand to be drained in resources and eventually fail.
3. Projects not executed well enough
Brands can make the right decisions and starts projects through marketing services, website design, and distribution sales, but not executed well enough to reach the desired outcome. Projects as such are often just not executed from the start to succeed. Simply, the expectations tend to be false, given the setup of the projects.
4. Operations not managed correctly
Some projects can last for years for skin care brands and beauty companies. Some of these are marketing services and campaigns, technology management, product design, and other projects. Some operations are just ongoing and when not managed correctly, can be fatal to a brand. Skilled management of operations and projects yields much better results.
5. Knowledge required not available
As a brand grows and evolves therefore the skills and knowledge required to manage successfully does too. When knowledge that is required is not available, it can quickly cause a skin care business to experience negative downturn and even fail. Keeping knowledgeable advisers and employees, is a key component to the success of a skin care brand.
There are numerous reasons why a business can fail. Within the beauty industry and skin care brands, these are the most popular reasons. Entrepreneurs and organizations have failed for the above reasons given. In many instances, the fate of the skin care business could have been avoided.
Having the proper resources, knowledge, experience, and when operations are managed effectively with results, a brand has much better chances. One of the best methods brands use to achieve this successfully is through skin care business consulting services. They enable a brand with minimum investment to have access to industry experts and quickly make great business decisions that show an even greater return on investment.