Organic Natural Cosmetics

Los Angeles, CA (PRWEB) April 10, 2015

The pigments market has a buyer power score of 2.4 out of 5, reflecting a moderate level of negotiation power for buyers and suppliers. Low product specialization and low market share concentration are beneficial for buyers, but high price volatility and rising material costs hamper these positive effects.

Recent pricing trends for pigments have had an adverse effect on buyer power. In the three years to 2014, prices have risen rapidly due to increased demand from clients including cosmetic and beauty products manufacturers, paint manufacturers, ink manufacturers and automobile manufacturers. As the industrial production index and the value of construction have risen, buyers in these sectors have required more pigments, boosting demand and fostering price growth. “This trend is expected to continue in the three years to 2017, further reducing buyers’ ability to negotiate favorable prices and contract terms,” according to IBISWorld business research analyst Jesse Chiang.

Another challenge facing buyers is the high price volatility of pigments. Inputs to pigment production, including nonferrous metal ores, fluctuate greatly. In most cases, pigment suppliers adjust the price of pigments based on the price of key inputs. High price volatility hurts buyers because it can lead to sudden price spikes. “When possible, buyers should try to negotiate set pricing terms to prevent unexpected price increases,” says Chiang.

Although rising price trends and volatility can damage buyer power, low market concentration and low product specialization offset their effects. As a result of low market concentration, pigment suppliers face a high level of competition, giving them an incentive to offer buyers competitive prices. Low product specialization aids buyers because it gives them the ability to procure services from all available suppliers, rather than having to find a niche provider. These factors improve buyers’ ability to negotiate lower prices. Major vendors include Lanxess AG, BASF and Clariant International Ltd. For more information, visit IBISWorld’s Pigments procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of pigments. Pigments are dry powders used to add color to products such as paints, inks, textiles and cosmetics. These powders come in a variety of colors and metal bases, including iron oxide and titanium dioxide. Suppliers of pigments include pigment manufacturers and pigment wholesalers. This product group excludes dyes, which are colors in liquid form.

Executive Summary
Pricing Environment
— Price Fundamentals

— Benchmark Price

— Pricing Model

— Price Drivers

— Recent Price Trend

— Price Forecast

Product Characteristics
— Product Life Cycle

— Total Cost of Ownership

— Product Specialization

— Substitute Goods

— Regulation

— Quality Control

Supply Chain & Vendors
— Supply Chain Dynamics

— Supply Chain Risk

— Imports

— Competitive Environment

— Market Share Concentration

— Market Profitability

— Switching Costs

Purchasing Process
— Buying Basics

— Buying Lead Time

— Selection Process

— Key RFP Elements

Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.

IBISWorld is one of the world’s leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insights necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Los Angeles, CA (PRWEB) March 24, 2015

The smartphone market has a buyer power score of 2.6 out of 5, indicating a relatively even split of negotiation power between buyers and suppliers. According to IBISWorld analyst Kevin Young, smartphone prices have risen at an estimated average annual rate of 4.8% in the past three years, largely supported by a rise in smartphone usage among adults aged 20 to 64. Moreover, suppliers have been investing more in research and development (R&D) to produce more technologically advanced smartphones during the period, driving up their costs, which have been passed down to buyers. Buyers have, however, benefited from rising import penetration.

Consumer demand for smartphones has increased considerably in the past three years, as evidenced by the strong growth in the number of mobile connections during the period. Due to the popularity of earlier generations of smartphones, producers have invested heavily in R&D to develop new and improved smartphones, which are often released on an annual basis. The release of new smartphones with more powerful features prompts many consumers to terminate their contracts and upgrade their phones, which is why wireless carriers vie for exclusivity agreements for vendors’ new releases.

The high level of brand equity among many vendors, such as Apple and Samsung, further undermines buyer power by forcing buyers to accept premium, value-based pricing, continues Young. However, the United States is a net importer of smartphones, so the market is also flooded with cheaper imports. Foreign-based manufacturers are actively producing lower-priced smartphone models to siphon a share of the lucrative US smartphone market. Buyers benefit from the wider range of prices made available by import penetration.

Buyers have also benefited from low price volatility during the period. Although smartphones are costly, low volatility in prices indicates that buyers do not face sudden and significant price shifts. Even though vendors release newer and often more expensive versions of smartphones annually, increasing market saturation will stifle extreme price growth in the coming years as consumers become less enthralled with cosmetic updates. For more information, visit IBISWorld’s Smartphones procurement category market research report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld

Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of smartphones, which are mobile phones that have larger screens, built-in applications and internet access. Smartphones are equipped with operating systems and increased processing power, allowing them to perform functions similar to those of a computer. This report excludes other mobile phones, tablets and laptops.

Executive Summary

Pricing Environment

Price Fundamentals

Benchmark Price

Pricing Model

Price Drivers

Recent Price Trend

Price Forecast

Product Characteristics

Product Life Cycle

Total Cost of Ownership

Product Specialization

Substitute Goods

Regulation

Quality Control

Supply Chain & Vendors

Supply Chain Dynamics

Supply Chain Risk

Imports

Competitive Environment

Market Share Concentration

Market Profitability

Switching Costs

Purchasing Process

Buying Basics

Buying Lead Time

Selection Process

Key RFP Elements

Negotiation Questions

Buyer Power Factors

Key Statistics

About IBISWorld Inc.

IBISWorld is one of the world’s leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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