PESTEL ANALYSIS

- Environmental

The sector for which our product is intended promotes social responsibility and
environmental management of companies in general. In addition, it encourages
organizations to implement and exchange good practices and collaborative
projects in the chain, in order to demonstrate and manage the impacts of
responsible and sustainable management on a voluntary basis for each
organization.

Today, for our target market, the relationship with the environmental impact has
been developing and has become a high awareness for the population. This
whole issue has led to the laws to unite and pressure the manufacturers of
these cosmetic lines to manufacture products with environmentally friendly
material, the same happens with the boxes and packaging for marketing.
Another important point is to make available to consumers the correct
information regarding the life cycle of the product, and in the case of cosmetics,
short life.

Environmental factors in Colombia have only been at the forefront of strategic

business planning in recent years. They have become important due to the
increasing scarcity of raw materials, pollution targets, ethical and sustainable
business practices, and carbon emissions targets set by the state administrative
agency. These are just some of the issues facing Colombian organizations in
this environment. More and more consumers are demanding that the products
they buy come from ethical and, where possible, sustainable sources.

Natural and organic products: worldwide there has been a growing curiosity for
natural and organic products and according to Euromonitor in 2017 the
cosmetic industry of natural products moves USD 443'893,800,000 in the world
and whose turnover is divided into three categories: face care (70%), hair care
(20%) and body care, (10%). The strategy used by companies to differentiate
themselves from others is innovation, as many manufacturers are already
opting to be more competitive. For this reason, natural and organic products are
an innovation and they choose to have a new lifestyle linked to the environment.

On the other hand, we have the ISO 16128 standard, which informs which are
the guidelines on the definitions for ingredients and cosmetic products. Natural
Marketing Institute, in 2007 conducted a new segmentation of lifestyles
determining five classes of consumers, all because through this research the
lifestyle of the new millennium is related to the demand for natural products.
The five consumer classes are divided as shown in the table.

Columna1

Unoncerned LOHAS

conventionals Naturalities

Drifters

Euromonitor in 2015 conducted a survey of citizens in order to make available

to pay for beauty products made from natural goods 70%, the other 50%
organic and 40% their were manufactured sustainably.

- Legal

The legal compliance of the technical data sheets, the safety data sheets that
can contain the combos of the same, the expiration date, the manufacturing
batches, among others. Legal compliance with the technical data sheets and
safety data sheets containing safety logos, manufacturing batches, expiration
date, among other requirements.

For this type of product there are standards, documents and decrees that refer
to the management of business processes and permits required for the
manufacture of cosmetics in the country. It also refers to misleading advertising
in the case of the use and properties of the same. The most important legal
concept in this aspect is the issue of animal testing, a delicate issue that has
been improving over the years.

Animal and pharmacological tests must comply with the standards required by
the international community, in addition to microbiological tests. In Colombia,
the Code of Commerce is in charge of regulating e-commerce, but there are
gaps with respect to the procedure of the transaction. Apart from this, there is
the UNCITRAL Model Law that deals with electronic signatures, which gives
legal validity to the signature, for which the entity that issues the laws that
regulate e-commerce is the United Nations Commission.

On the other hand, we have the UNCITRAL Model Law, which also refers to the
incorporation into domestic law, guide that was established in 1996) and relates
to contracts of carriage of goods and data thereof between member countries
and commercial transactions at the international level.

In the last ten years, the slow coordination of international cosmetics legislation
and the emergence of technical barriers to trade [TBT] have always been the
cause of the major global health regulatory agencies and the International
Organization for Standardization [ISO] to start working on the coordination of
cosmetics. industry with the help of companies in this industry. Lack of
improvement in the mechanisms needed to generate a consensus agenda and
benefits for the industry Opposing forces, especially when they represent
business groups competing in certain markets, are the reason many issues are
delayed. However, the unification of the law is very important because it helps
to: protect the consumer, promote sustainable local trade, develop the cosmetic
industry. And finally to facilitate innovation.