Kiara Sky Cosmetics Company Analysis

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Table of Contents

Company Introduction
External Environment
Five Forces Analysis
Internal Analysis
Business Strategy
Corporate Strategy
Recommendations
References

Conducting business analysis is an important part of understanding the market and its inner workings. The application of analysis skills coupled with specific ways of researching a company allows an individual to evaluate and determine the success of a particular business. A variety of internal and external factors play an important role in shaping the market position and success of an organization, and gaining an ability to navigate amongst them is crucial to becoming more adept at business analysis. Within this review, the market environment of Kiara Sky and its surroundings will be conducted as a way to demonstrate capabilities relating to formulating and writing business strategy. First, a general company introduction and SWOT analysis will outline some of the major and simple facts about the business will be offered, which will be coupled with a PESTEL analysis. Subsequently, the external environment of the organization will also be analyzed, including some of its major opportunities and problems. Internal analysis will be conducted through the use of the VRIO framework, which will put into perspective the businesses’ ability to maintain competitive advantage. Following that, both the corporate strategy and business strategy are to be discussed, including approaches the company has to affairs such as internal organization and marketing. As a closing point, recommendations regarding further development will be provided as well.

Company Introduction

Kiara Sky is a business operating in the beauty and personal care market, particularly focused on the nail care niche. The company provides a variety of products for individual nail care and manicure, allowing people to style their nails without the need for professional services. The range of products includes a variety of nail polishes and gels, acrylic nails, and accessories. Additionally, nail kits and electronics are also being sold. Product lines are noted for their high-quality, ease of application and durability. The company additionally offers products for people working in the beauty industry and other nail work professionals. While not all of their items are available to the public, the majority of glosses and nail care items are made with the global audience in mind. The company is founded in the state of California, United States. While the general focus of the organization is on domestic production and distribution, Kiara Sky also sells their glosses internationally, offering shipment options on their website.

SWOT Analysis

Strengths

The major strengths of the business include its strong position in the beauty market and a well-defined niche. Despite the nail industry’s expansive reach and development, the amount of companies producing DIY and personal kits for nail care is relatively small, allowing Kiara Sky to become a strong competitor on the market. The products are especially client-centered, allowing people to express and bring out their own creativity and self-expression. All of the products are made cruelty-free, bringing Kiara Sky above its competition in regards to animal treatment. Furthermore, the business offers worldwide shipping, allowing it to expand its reach and garner a bigger following.

Weaknesses

One of the major drawbacks for the company is its price range. Many of the products offered by Kiara Nails are on the pricier side, which means that a large majority of clients might not be able to afford their products and services, as well as decreasing the number of regular buyers (Buddemeyer, 2021). Within the nail kits and drills market, alternatives of cheaper prices exist, putting Kiara Nails at risk of being outclassed.

Opportunities

Relying on the creativity and self-expression of its buyers, the business has an ability to grow and develop in various ways. Most importantly, its range of products can be further expanded, allowing further variance and experimentation for their clients. Additionally, the current press coverage and media attention surrounding the organization is low, meaning that it has limited exposure for an average person. Creating a bigger media presence and getting news coverage can be a good opportunity for growth.

Threats

The most important and pressing threat in the nail market is the varied competition present and actively emerging. With the current socio-economic status, more people are becoming interested in beauty products they can utilize themselves, creating an ideal set of circumstances for other nail companies to grow. Kiara Sky nails faces harsh competition in the recent years.

External Environment

PESTEL Analysis

Political

Situated in the US, Kiara Sky is in a favorable position to improve and expand its business. As the center of foreign trade and development, the United States of America offers its businesses relative freedom and political stability. With the recent elections and the recovery period after the COVID-19 pandemic, businesses are set in a climate that facilitates growth and profitability.

Economic

Economically, the company is currently in a favorable position for future development. While the COVID-19 pandemic has undoubtedly had a severe effect on the businesses and companies in the US, the current recovery period is signified by an increase in buying power from the customer base and better options for companies. Kiara Nails has an opportunity to take advantage of the customers with a higher-than-average buying power and a potential number of savings created during the pandemic. Furthermore, the slow opening of foreign trade also allows the company to expand its business outward, using international shipping programs.

Social

Socially, the diversification and globalization of the world are working in favor of Kiara Sky nail company. The global economy is becoming more saturated with new players, including big markets such as China and driving up profits. Other countries’ populations are accumulating disposable income, leading to more purchases and luxury spending. The demand and recognition of beauty products as an important part of life and a way of self expression is slowly becoming more apparent, making the products sold by the organization more valuable and viable in the global market. The more recent change in gender norms and other social constructs has also expanded the potential customer base of the brand, further increasing both exposure and profits. Women are becoming more open about wearing colorful nail extensions and taking good care of their appearance, while some men are managing to discover the world of the beauty industry. Additionally, the effects of the recent pandemic can also be connected with favorable outcomes for nail and makeup businesses. With the majority of people having to stay inside and worry about their health, the need for self-expression and beauty has long gone unfulfilled, creating a potential niche for Kiara Sky to grow even further. Customers will likely want to purchase products connected with enhancing their appearance to improve their self-perception and help handle the stress of the post-COVID-19 period. Additionally Kiara Sky’s focus on DIY kits allows them to perfectly integrate their products into today’s culture and social distancing norms.

Technological

Technologically, the level of sophistication and quality for both nail products and nail beauty kits has increased, improving both the safety and quality of Kiara Sky’s offerings. Nail Drill kits and other products offered by the company have been noted by reviewers to be of especially high-quality, providing a good mix between safety and comfort. Furthermore, the company continuously develops new products and approaches to nail care, as exemplified by their innovative line of color-changing glosses. In terms of safety and health cautions, the organization largely manages to contain the risks and protect their client base. Research has noted that the use and application of nail products is often connected with harmful and toxic substances for the human body, which becomes a significant barrier for the organization’s sales (Arora & Tosti, 2017). However, the technology of their production is gradually becoming more safe to use, meaning that the potential customer base expands as well (“Kiara Sky Nails”, n.d.).

Environmental

Environmentally, the brand positions itself as a supporter of green and cruelty- free initiatives, proclaiming its cruelty-free status on their website. Recently, it can be seen that environmentally-friendly initiatives are becoming the norm, and their inclusion is both expected and celebrated in companies. A move to focus on the cruelty-free aspect of Kiara Sky’s production gives the company positive publicity and recognition. With the general move towards environment protection, the stance taken by Kiara Nails becomes much more attractive to both potential customers and investors on the market. Additionally, the business operates in a sustainable manner, giving it the potential to outlive the competition and stay on the market for a prolonged time.

Legislative

Legally, the company has both a number of setbacks to overcome and potential opportunities to explore. As mentioned previously, the company produces items that are potentially harmful to their customers. The distribution and production of nail products can be legally disadvantageous in cases where people find their products to be unsafe to use. Notably, the website provides all of the necessary health warnings and safety insurances, increasing the relative safety of Kiara Sky produtcts (“Kiara Sky Nails”, n.d.). However, the business also exists within the legal framework established after the recent election of president Joe Biden (“The United States Government”, 2021). The recent documents published by the White House state that the president’s actions are aimed at supporting local and small businesses, while also giving them the financial support from the COVID-19 crisis. This outlook on business in the US allows Kiara Sky to develop as a business and prosper.

Five Forces Analysis

Competition in the Industry

The current competition in the nail industry is notably steep, with many companies working to get the attention and patronage from the growing customer pool. However, the increase in the number of players in the nail industry is not a large concern for Kiara Sky, as their business model operates at a premium level, with a large portion of their products being aimed at professional beauty workers and celebrities. With other nail businesses primarily aiming at the regular consumer niche, Kiara Sky has both the finances and talent necessary to be separate from the competition.

New Entrants into the Industry

As a growing field, the nail industry sees a variety of new companies coming in and attempting to set up their sales. In the recent years, the popularization and spread of social media marketing, more and more companies are emerging to try and take advantage of this lucrative niche. The widespread appearance of new businesses divides the client base and presents a considerable potential challenge to the company.

Power of Suppliers

The nail industry requires specific products and items to be manufactured, many of which have their own specialized suppliers and factories. In this vein, Kiara Sky is particularly dependent on their suppliers to produce and provide the necessary ingredients for their glosses, powers and dips, in addition to nail drills and other electronic devices.

Power of Customers

Kiara Sky is a considerably big and successful company, with much internet popularity and public recognition. The power of their customers, then, is particularly limited due to the size of the organization’s influence. Additionally, the ability of Kiara Sky to work with industry professionals gives the company an additional revenue safety net, giving them the capacity to not listen to their customers demands.

Threat of Substitutes

Substitution is an unlikely threat for Kiara Sky, as their products both offer great value to the customer and can be distinguished by their superior quality. In particular, the nail polish and gloss technology developed by the organization is said to be both beautiful and durable, making it the perfect choice for a nail enthusiast. While competition arises with the growth of the nail market, Kiara Sky is unlikely to face serious threats of substitution.

Internal Analysis

VRIO Analysis

Resource or Capability	Valuable	Rare	Inimitable	Organization is Organized around	Result
Global Presence	Yes	Yes	Yes	Yes	The company currently has a competitive advantage, but other organizations are able to imitate this effort
Product Originality	Yes	Yes	No	Yes	The products presented by Kiara Sky are original and present unique value to the customer
Customer Value	Yes	Yes	No	Yes	The original products and services present unique value and gain to the client base
High Product Quality	Yes	Partially	No	Yes	The products created by Kiara Sky are high-quality, giving them an edge over the competition
Original Brand Identity	Yes	Yes	No	Yes	The brand identity and image are the unique features of the brand that give it a competitive advantage

As a brand and a company, Kiara Sky maintains a strong market position through a variety of tools, including a strong brand identity, high quality original products, originality and widespread market presence. By setting up and participating in international business, the organization garners a bigger audience and potentially gains an advantage over its competition. However, it should also be said that their approach towards creating an international audience is currently lacking, with the scarcity regarding distributors and shipment options. This creates an opportunity for competition to outperform Kiara Sky and will present a bigger threat as time passes. To successfully gain the full advantage of the international market, it may be necessary for the organization to expand on the ways in which it interacts with people outside of the United States region. Moving on to the company’s stronger sides, brand originality and identity, coupled with product value can certainly be noted. The distinct brand identity focusing on delivering customer value allows Kiara Sky to create brand loyalty, distinguish itself from the competition in the beauty market. The products created by the company are both high-quality and present original value to the customers, which makes it difficult for other organizations to imitate them (Buddemeyer, 2021). Overall, the organization has a solid competitive edge over other companies on the market, allowing them to keep constant profit and economic relevance.

Business Strategy

Currently, Kiara Sky is a working and successful business that operates both on a local and international scale. The company operates within the United States of America, using the online sphere to promote and establish their brand. The majority of sales come from Kiara Sky’s website, in addition to affiliates working with the company and selling their products. Internationally, the organization does not have a large presence; however, the option of shipping to other countries is available from their website. For advertising, the company relies primarily on product reviews, beauty experts and online influencers (Panos, 2020). As a brand specifically focused on appealing to a particular demographic of people doing their nails at home, the limited scope of advertising is functionally effective. In addition, beauty and health-related magazines such as the Cosmopolitan and the Vogue are used to establish credibility in the industry and secure promotion. The production of nail products and other beauty items is made cruelty free, which is a big selling point and advertising focus for the brand. As a brand in the public space, Kiara Sky mainly focuses on creating an image of a friendly and communicative company. The company also has a corporate Instagram page, where they use posts to engage audiences, promote their products and attract new customers to the brand. Notably, the page has more than 2 million followers, which is an especially large number indicating the business’ growth (“@kiaraskynails is on Instagram”, n.d.). Their advertising style, design choices and communication create a “bubbly” personality for the company, one that is effective at connecting with younger emerging audiences. The use of both brand positioning and influencer culture to promote products help Kiara Sky maintain their strong position in the beauty market (Luise, 2020). However, a number of professional competitors can also be identified, including such companies as Beyond Polish, Jinsoon, Live Love Polish and Rivel Nail (“Kiara Sky Professional Nails”, n.d.). While the mentioned companies share audiences and market position with Kiara Sky, their brand identity and image is wildly different, setting each of them apart as individual organizations. As a part of their engagement strategy, the company also works with nail and beauty industry professionals. A part of their product selection, namely gel polishes are sold exclusively to professional industry experts, which is used for effective promotion of the brand (Green, 2015). By associating their items with beauty experts, the brand easily manages to acquire good reputation in the field while also creating a sense of luxury for its customer-base.

Corporate Strategy

The information regarding Kiara Sky’s corporate organization and strategy is scarce, as the business working within a particularly niche field. Among the known information about its organization is the fact that the company was founded by a couple, Michael Duong and Ana Katrina Tan (Green, 2015). From the company’s website, one can understand that the brand primarily relies on professional connections and affiliated distributors for its sales (“Become a distributor: Kiara Sky”, n.d.). Using a line of third-party distributors, including such retail chains as Walmart is an effective way of cutting costs on physical locations and utility, while also allowing the company to build lasting connections to other brands.

Recommendations

Professionally, the organization’s main flaw is its relative lack of international purchasing options. Customers wanting to purchase high-quality nail product have to order directly from the Kiara Nail website, which can be challenging to navigate for non-English speakers and limits the potential reach of the organization. Partnership with international distributors and other companies willing to sell their products can be beneficial to increasing the audience of the organization and gaining further public recognition. Additionally, the process of establishing closer international relations can help Kiara Nail to connect with more specialists in the beauty industry, boosting sales for their professional line of items.

Another recommendation can come from the company’s sales strategy and approach towards their products. While the limited distribution of certain nail products can be seen as a way to create a sense of exclusivity, it also alienates a significant portion of the company’s audience. Products from the organization’s more professional line of work can be used as an effective tool in advertisement and promotion. Similar to the case discussed on the Refinery29 website, many individuals see professional products when visiting salons or watching movies and shows. The association between expensive lifestyle and high-quality Kiara Sky nail products has already been established in the public perception, and now the brand can use it for profit. By making their gel polishes accessible to the larger public, Kiara Sky has the capacity to capitalize on their good reputation and expand the potential range of customers.

In terms of public relations and community engagement, Kiara Sky already has a considerably successful following on Instagram, where their posts a log of engagement and comments on a consistent basis. However, the same cannot be said about their YouTube channel. As a company primarily situated in the beauty sector, it can be especially important to take advantage of many visual platforms, especially those hosting beauty gurus and influencers. YouTube is currently regarded as one of the most well-established video sharing platforms, making it ideal for both showcasing and advertising Kiara Sky products to the public. Focusing on promoting and growing the company’s YouTube channel can serve as a good long-term investment and a social engagement platform. In particular, it can also be used to help clients better understand that safety procedures and the necessary steps for using their gel tips/nail drills/drill kits at home.

References

@kiaraskynails is on Instagram. (n.d.).

Arora, H., & Tosti, A. (2017). Safety and efficacy of nail products. Cosmetics, 4(3), 24.

Become a distributor: Kiara Sky. Kiara Sky Professional Nails. (n.d.).

Become an influencer: Kiara Sky. Kiara Sky Professional Nails. (n.d.).

Buddemeyer, R. (2021). Time to level-up your manicures with these 9 nail drills. Cosmopolitan.

Green, L. (2015). The nail-polish brand “Empire’s” manicurist swears by. Ericka Johnson Nails Empire Fox Interview.

Kiara Sky Nails. (n.d.).What ingredients are in the KS Gelly Tips Essentials?KS FAQ.

Kiara Sky Professional Nails. PipeCandy. (n.d.). Web.

Luise, M. (2020). The disruption of the Beauty Industry: An Investigation of social media factors and dynamics affecting perceived brand image and the consumer decision journey. LUISSearch Additions.

Panos, M. (2020). Farewell, gel nails – I’m in a committed relationship with my home Dip Kit. POPSUGAR Beauty.

The United States Government. (2021). Fact sheet: President Biden’s new executive actions deliver economic relief for American families and businesses amid the COVID-19 crises. The White House.

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