Who really controls the skincare business?

SOURCE: LongRoom 

 The economic principle I’m exploring is people generally respond to incentives in predictable ways.

  My research question to help me study the economic principle is, Who really controls the skincare business?

In the article by Business Insider titled “These 7 companies control almost every single beauty product you buy” they believe that there are 7 main companies that control the beauty products that consumers buy: Estée Lauder Companies, L'Oréal, Unilever, Procter and Gamble, Shiseido, Johnson and Johnson, and Coty. Within these companies there are many sub companies. It is crazy to consider that these 7 companies have complete control over a whole industry. If a small company wants to get there name out there, they have to live up to these companies standards.

As an example, well look at Seed Beauty. This is a small start up company that first came about not that long ago. According to Fast Company, in an article titled “11 Beauty Startups To Watch In 2017” Seed Beauty “grew out of a family-owned manufacturing lab that created products for major brands, which explains why Colourpop can conceive of and launch new products in just days.” This is rare for a company to be able to start from a place that has already made big name products that know they work. With this ability to quickly release products, they can make a name for themselves. While no one knows this company from just its name, Seed Beauty actually started Kylie Cosmetics which is the youngest Kardashian kid. Many people know her from the fame of her family and her products continue to grow like crazy. The thing is that no one recognizes the name Seed Beauty so they have to live up to the standards of the other businesses to keep up.