Modern Cosmetic Companies And The Change They’re Making

May 10, 2017

As a rule, economic hard times don’t affect the beauty industry severely. Even though consumers start being more price conscious during those times, they still tend to spend money on beauty products and procedures. In today’s environment of rising per capita incomes, the beauty business is flourishing.

Beauty Industry

In 2015, the industry accounted for $56.2 billion in the US. Hair care, the largest sector, boasts 86.000 locations. Skin care comes next and is growing with rapid advances. It’s anticipated to bring revenue of almost $11 billion by 2018. This is because people are becoming more and more aware of the importance of skin care. On the other hand, such growth is based on an increase in the market for men.

US Beauty Industry Segments Market Share by Revenue
Hair care 24%
Skincare 23.7%
Cosmetics 14.6%
Perfumes and colognes 9.5%
Deodorants, antiperspirant, feminine cleaning 8.5%
Oral hygiene 5.6%
Other 14.1%

Merchants in the beauty industry should look for a reliable payment processor to turn for payment processing. Emerchantbroker.com, a reputable merchant services provider, offers the best beauty merchant account in the industry. EMB is voted the #1 high risk processor in the US and is one of Inc. 500’s Fastest Growing Companies of 2016. EMB is an award-winning payment processing company that boasts an A+ rating with the BBB.

Beauty Product Companies

Today there is a demand for natural beauty products, creams featuring special ingredients, serums that are developed for specific beauty issues, and cosmetics that can be used for a variety of purposes. This has resulted in increased interest in small and midsize players in the cosmetic ingredients sector.

Mark Dixon, chief thinking officer at ThinkingLinking, a global mergers-and-acquisitions firm specializing in emerging growth markets and investors, consumers aren’t only concerned about what they’re wearing on their bodies, but also what they’re putting in their bodies.

Dixon further notes today some parts of the sector are consolidating. This refers to those slices that previously lacked consolidation. The middle market is being consolidated by the middle market, and then the big players can acquire them eventually.

Nowadays, shoppers can easily access both products and information about them. That’s why they can easily choose cosmetics that contain, or don’t contain, particular additives and provide  specific results. Such situation enables smaller, independent and flexible beauty companies enter the market and develop loyal customers.

The way big players manage their acquisitions has changed recently. They used to buy a company and try to integrate it as quickly as possible. Now, big beauty companies tend to allow the small companies they acquire do what they do best and don’t interfere too much. What these small companies do they fill in gaps, serving as a new audience or customer group.

As Karen Grant, global beauty industry analyst at NPD Group mentions even if your company is small today, this doesn’t mean it can’t become big tomorrow. Not a single brand should be underestimated.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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