The industrial organization theory based on price theory of new classical economics created by the school of Harvard, structures an analyzing framework that not only can deepen the concrete details, but also has a logic system. In the background of fastgrowing economy and ever-opening market the cosmetics industry is regarded as a quickly increasing consumption hot spot. This paper makes an analysis of China's cosmetics industry and how the domestic enterprises survive under heavy pressures on the basis of SCP model (Structure-Conduct-Performance model).
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