A significant drop in profit and weaker domestic sales in the first nine months of 2010 has led Japanese-headquartered Shiseido to lower its forecasts for the full year.
Although demand for mineral make-up remains high, the increasing number of products on the market with a low mineral content may harm the credibility of this product category, according to Datamonitor.
With recent industry financial results indicating that the worst of the economic crisis might be over, the first quarter of 2010 has in turn been marked by a flurry of M&A activity.
Bare Escentuals shareholders have demanded investigations into the board of directors following the announcement that Shiseido wants to buy the mineral make-up player.
Color cosmetics company Bare Escentuals is being accused of artificially inflating the company’s share prices by providing misleading information to the public.
Riding a significant rise in demand for its mineral-based cosmetic
products in the US market, Bare Escentuals is eyeing expansion in
overseas markets, supported by its acquisition of a UK distributor.