Sunday, November 20, 2011

Kiehl’s competitve rivalry


Good morning insiders!

Previously, we identified Kiehl’s main competitors. But let’s analyze the competitive rivalry around the brand through the Porter Model.
Indeed, in analyzing the 5 forces described by Porter, we can the intensity of the competition around Kiehl’s in France.
First, we can say that, for the moment, there is not so much new entrants on the French natural cosmetics market. However, Customers and suppliers are very important stakeholders in this market. Indeed, the identity of natural cosmetics brand is mostly based on qualified ingredients, so without suppliers, there is no more products. Then, as it is a niche market, the customer has a strong power regarding the future of the market. However, the state has no significant power on this market in France. And as it is a niche market with very specific products, subsitutes have no power.

So to conclude, we can say that the competitive rivalry is relatively not very intense around Kiehl’s. Natural Cosmetics industry is growing in France but each brand is positioned quiet differently and bring its own specific added value.

Do you think Kiehl’s is unique and irreplaceable? For you, what are the elements that differentiate Kiehl’s from its competitors?


See you insiders for another Khiel’s secret!

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