The increase in crude oil prices has added cost to PCI, especially the ester composites. Personal care companies consider it the major restraint for PCI industry, since increase of raw material prices reduces the profit of personal care product, thus decreasing the sales volume.
"As PCI manufacturers have immense cost burdens, they find it difficult to offer a competitive price that satisfies end users," explains Zhu."New promoting policy with more value-added service is recommended to the suppliers of these ester-based PCIs."
Though high oil price is a major restraint for a section of the PCI industry, strengthening customer service and developing non-ester based new PCIs can build an ideal marketing policy for current suppliers. With this in place, suppliers can increase their revenues despite reducing profit margin. Despite these challenges, this market is likely to grow due to increasing awareness of beauty care and a fundamental lifestyle shift that Asia Pacific is currently witnessing.
