Cosmetics companies: income developments in time of crisis
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 21 January 2022
Issue publication date: 18 October 2022
Abstract
Purpose
This study offers a focus on the income dynamics of the sector, analyzing the evolution of the main profitability indicators (ROE, ROA, ROI and ROS) of 457 Italian companies in the 2008–2020 period. So, it is possible to verify the reactivity to the global financial crisis that began in 2008 and the first indications on the 2020 pandemic.
Design/methodology/approach
The analysis uses descriptive statistics tools and the ANOVA method of analysis of variance completed by Tukey's test, useful for identifying the existence of significant differences between geographical macro-areas of the country.
Findings
The results show positive dynamics in a sector that has been able to absorb the negative consequences of the great global crisis, improving its profitability over the years, albeit with differences in the macro-regions of Italy.
Research limitations/implications
The study considers only the companies that survived the crisis, so, presumably, the strongest. In the future, other ratios should be considered to have a more complete view. It is a quantitative study based on the financial report data that neglects other important economic factors.
Practical implications
Public policies might use this study for a better intervention in support of the sector. Besides, internal management may compare company outcomes with average sector outcomes to identify improvement prospects.
Social implications
The research represents a significant basis considering the risks deriving from the supply of low-cost Asian products that could significantly affect the profitability of Italian companies in the future.
Originality/value
The study contributes to the literature by providing a quantitative analysis of the dynamics of the sector, through the comparative information that may be deduced of balanced sheets in the course of the years.
Keywords
Acknowledgements
This paper is the result of a collaborative work. However, it is possible to attribute to Veronica De Blasio: “Empirical results and first evidence”; to Pietro Pavone: “The cosmetics industry in the world and Italy”, “Theoretical foundation”, “Literature and hypotheses development”, and “Methodology”; while to Guido Migliaccio: “Introduction”, “The Italian socioeconomic context: outline” “Hypothesis tests and discussion”, and “Conclusions”.
Citation
De Blasio, V., Pavone, P. and Migliaccio, G. (2022), "Cosmetics companies: income developments in time of crisis", Journal of Small Business and Enterprise Development, Vol. 29 No. 7, pp. 1017-1048. https://doi.org/10.1108/JSBED-11-2019-0369
Publisher
:Emerald Publishing Limited
Copyright © 2022, Emerald Publishing Limited