Case Study: Personal Beauty Products
Engagement Overview
Fulcrum Consulting Group was engaged by a joint venture between an independent sponsor and a family office considering an investment in a catalog retailer of beauty products and apparel. Fulcrum was tasked with providing insight into the target company’s market and go-to-market strategy.
Client
Independent Sponsor and Family Office
Engagement
Market Diligence
Industry
Beauty Products and Apparel
Target Company
Wig, Hair Extension, and Apparel
Key Diligence Issues
In order to inform the client’s understanding of business risks and opportunities, the project scope included a market assessment with the following areas of focus:
Market Characterization: Identify the size of the hair and wig extension market in the U.S. Evaluate the growth rate of the market by segment to understand evolving trends and business drivers.
Purchase Channel Dynamics: Analyze customer purchase behavior, determining where hair extensions, wigs, and apparel are being purchased, and how demographics effects the purchase channel of each product, with an emphasis on determining opportunity and risk of catalog retailing.
Competitive Assessment: Profile the players within the wig and hair extension market in the U.S. to understand the fragmentation of the market. Determine the target company’s relative market position.
Approach
Fulcrum conducted significant desktop research, analyzing consumer demographic shifts, market trends, and the profiles of competitors. Particular attention was given to information and analysis relating to changes occurring in younger demographics within the beauty space. By helping our client understand the shift in consumer behavior towards omnichannel shopping, and the nature of the target company’s consumer base and demographic, they were better prepared to consider future growth strategies.
Fulcrum communicated with our client frequently to discuss findings and adjust focus. Fulcrum delivered a substantive update midway through the project and a final report within deal timeframe constraints.
Impact
Fulcrum analyzed the market demographics of the target company’s products to help inform the client on future demand trends and purchase channel popularity shifts for the future.
In addition, the client was interested in understanding whether the market was dominated by one or a few large companies, or if it was a fragmented market with a variety of competitors. By capturing purchase channel dynamics and profiling product offerings on large website vendors, Fulcrum was able to deliver valuable strategic insight.
In consumer-focused businesses, decision makers need to understand how their customer is evolving in order to stay ahead of the curve. Get in touch to learn how Fulcrum Consulting Group can support your team.