Sustainable Innovation in the Cosmetic Industry—Obstacles, Contributing Factors, and Strategies

Abstract

This thesis research attempts to answer the question of “how companies can better compete in the market with their sustainable innovations?” using cases in the cosmetic industry. Key factors that contribute to the successful diffusion of sustainable innovations, as well as obstacles that need to be overcome for a sustainable cosmetic company to thrive in an already saturated cosmetic product industry are explored. Strategies that help cosmetic companies better integrate sustainability into the core of their business strategies and managerial operations are suggested. Based on literature review, three main contributing factors: customer education, strategic alliance, and company image building are identified and illustrated in details. A survey and statistical analysis are performed to test the impact of customer education on customers’ decision in choosing sustainable cosmetic products and to study the importance of fourteen factors that contribute to a sustainable cosmetic company’s image building.