Channels
The New Zealand prestige cosmetic market is relatively mature, with most international brands represented here. The channels are fragmented in New Zealand and can simply be divided into Department Store, Pharmacy, Specialist Boutique Retailers, service Beauty Salons. Department Stores: New Zealand has not historically had any national prestige department store chain but rather has four ‘independents' each unique to one of the four major cities of New Zealand. New Zealand Pharmacies enjoy a unique cosmetic counter situation brought about in part by the lack of department store competition. However pharmacies are particularly faced with increasing demands for retail space from existing and new brands, without the ability (or desire) to increase their retail footprint. The product mix Micromode Ltd represents provides us with the task of servicing each of the distribution channels described above, as well as Specialist Boutique Retailers and service Beauty Salons, depending on the product brand and its strategy. E-tailing is fast being adopted by the New Zealand consumer (who tends to be fairly internet-savvy) with international cosmetic retail sites being dominant players in the NZ market proving difficult to compete with from a pricing point of view. Micromode is in the process of developing online shopping sites direct to the consumer for each brand we represent. |