Exploring the effect of online shopping motivations on purchase intention applied

Chapter 2 - Literature Review 
2.1 The Cosmetics Industry 
Cosmetics now play a role in consumers’ everyday life due to the lifestyle improvement. 
Consumers have become more conscious about the use of cosmetics and the positive impact it 
has in their health and physical attributes (Allied Market Research, 2016; Joseph et al., 2013). 
The major distribution channels of cosmetics are retail stores (supermarkets included), brand 
outlets and specialty stores. Online channels are now gaining popularity as a distribution 
channel (Allied Market Research, 2016). 
The cosmetics industry is far from being only about makeup which value is only about 17% 
of the whole market. Skin care, perfumes, deodorants and hair care are also part of this multi-
million industry (Statista, 2015).
As the disposable incomes rose in the past ten years, the change in climatic conditions which 
asks for higher demands of skin and sun care products and changing lifestyles have 
encouraged the growth of this industry (Allied Market Research, 2016; OECD 2015; 
Worldbank 2016). 
While Unites States of America is the biggest market worldwide it is France that exports the 
highest volume of cosmetics. The economic crisis felt in the past years did not affect this 
industry as it continued to grow in the past decade at a rate of almost 5% (Allied Market 
Research, 2016; Statista 2016; L’Oreal Annual Report, 2015). 
Currently, the increase of GDP after the recession of 2007-2009 has impacted positively in 
the cosmetics industry. As countries start recovering from the crisis, consumers see their 
disposable income rising which results in higher spending in personal luxury items and 
ultimately in the cosmetics market (Allied Market Research, 2016; Worldbank 2016). 
The European cosmetics’ industry is the most valuable one in the world. In 2015 the sales 
retail price valued 77 billion Euros (Cosmetics Europe, 2016).