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THE ESSENTIAL COLLECTION The French C&T market stayed afloat during the economic crisis but consumers have raised their standards and want products with better performance, reports Jo Allen Consumer confidence may have fallen ideas on what they deemed to be essential careful to only invest in products that they to its lowest levels since the peak of the and nonessential products. Johanna believe really work, another casualty, says recession, unemployment may have been at Kolerski-Bezerra, Euromonitor’s research Kolerski-Bezerra, was firming and anti- its highest in more than 11 years, but in analyst specialist for France, comments: cellulite products, which plummeted by 2011 the French and toiletries “Consumers moved towards products that 8.1% to t68.3m in the mass market and by market kept its immaculately coiffed head offer greater performance, products that 8.3% to t74.4m in the premium market. above water. really work. Hygiene products performed “These products reported terrible growth According to market research company well and there was a particularly strong rise rates as they were viewed as nonessentials,” Euromonitor International, sales of in electrical personal care products such as she comments. cosmetics and toiletries remained stable, power toothbrushes, hair straightening kits However it wasn’t just hygiene products registering 1% value growth to a total of and IPL kits.” that scrubbed up well in 2011. According t12.3bn. However, there was evidence of a This impacted negatively on the to NPD France, the prestige cosmetics and shift in consumer buying behaviour within depilatory category which usually posts perfume market grew by 3% in value, the categories, resulting in clear winners around 4% growth. But in 2011 this driven by fragrance and make-up which and losers, as consumers fine-tuned their stabilised to just 0.3%. As consumers were rose by 4% each. Mathilde Puszka, beauty

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TABLE 1: FRENCH C&T CONSUMPTION TABLE 3: FRENCH C&T MARKET 2011, 2011 yM RETAIL DISTRIBUTION Sector 2011 %+/– Sector % breakdown Total 12,264.2 1.0 2010 2011 Baby & children’s 337.6 -0.2 Store based retailing 89.1 89.0 products Grocery retailers 47.1 46.9 Bath & shower 874.0 0.4 Discounters 1.9 1.9 products Small grocery retailers 1.6 1.5 Colour cosmetics 1,296.4 2.5 Hypermarkets 24.6 24.5 Deodorants 640.8 2.2 Supermarkets 18.4 18.4 Depilatories 203.5 0.3 Other 0.6 0.5 Fragrance 1,901.8 2.1 Non-grocery retailers 42.0 42.1 Hair care 1,680.7 -1.3 Heath and beauty 36.1 36.2 Men’s grooming 1,029.4 1.1 retailers Oral care (excluding 932.3 4.7 Beauty specialist 21.2 21.2 power toothbrushes) retailers Power toothbrushes 855.8 3.7 Chemists/pharmacies 10.8 10.8 Skin care 2,973.3 1.2 Parapharmacies/ 3.8 3.9 Sun care 313.9 -6.7 drugstores Source: Euromonitor International Other 0.4 0.4 Mixed retailers 5.5 5.4 Department stores 4.3 4.2 TABLE 2: FRENCH C&T MARKET 2011, TOP TEN COMPANIES Variety stores 1.3 1.2 Outdoor markets 0.1 0.1 1 L’Oréal Groupe Other non-grocery 0.3 0.3 2 LVMH retailers 3 Procter & Gamble Non-store retailing 10.9 11.0 4 Yves Rocher Direct selling 1.5 1.6 5 Unilever Home shopping 2.2 2.0 6 Beiersdorf Internet retailing 7.2 7.4 7 Henkel Total 100 100 8 Chanel Source: Euromonitor International 9 Johnson & Johnson 10 Laboratoires Pierre Fabre Lancôme’s Trésor Midnight Rose fragrance is an Source: Euromonitor International example of the popularity in reworked originals industry specialist at NPD France, says: indispensable brands have become essential Addict, supported by Kate Moss. “Fragrance was the key category as it to the French. “It’s about making a sound Meanwhile Chanel launched a major new represents more than two thirds of the purchase with a renowned brand of high collection, Coco Shine, prestige market in France.” quality,” says Aron. “The consumer is fronted by Vanessa Paradis. Such launches Kolerski-Bezerra adds: “Fragrance has focusing on core values, on brands that are were well received by consumers who always been important in French culture serious and give them value for money.” would rather pay more money for a and while the economy might be doom Certainly in fragrance, companies cosmetic that is a sure bet than waste their and gloom, the French continue to self- focused on developing their core Euros on a substandard product. indulge with fragrance. In 2011 there was a values – their brand DNA – and “Last year was very good in big return of classic lines: Chanel did well.” this was seen in terms of terms of innovation for prestige Olivier Aron, founder of ROSAE, a Paris communication with new model or colour make-up, above all lip based research company that measures the actor endorsements, such as colour, with strong launches from potential of fragrance and skin care Chanel’s advertisement for Nº5 Dior,” says Puszka. “In nails, the launches before they arrive on the market, with Brad Pitt, Penelope Cruz relaunch of Dior enamel had a big explains: “Fine fragrance was stable because replacing Kate Winslet as the face impact on market.” Nail make-up in it’s not seen as a luxur y product any more. of Lancôme’s Trésor and Eva fact recorded double digit growth in Women won’t go without perfume. They Mendes succeeding Naomi Watts 2011, both in prestige and mass prefer to skip dinner in a r estaurant than for Angel. Providing an olfactive distribution with plenty of give up perfume.” It seems that for the twist to a classic frag rance proved innovation in this category fuelling French, perfume puts the essence in to be another way to capitalise on a sales. essential. master brand with Chanel Coco Noir and Shalimar Parfum THE S-FACTOR CORE BELIEFS Initial both providing alluring new Nowhere in the market is the Purchasing decisions are being based on editions of the original perfumes. reputation of a brand and product what consumers believe to be essentials, The investment in core values was efficacy more important than in skin both in terms of commodity products and also visible in the colour cosmetics care. Aron comments: “The key success in a more sophisticated sense. Fundamental, category with Dior relaunching Dior factor for skin care is the power of the

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fundamental research behind a product, and now most brands have a BB ‘without’. They need to show they are using which builds up the reputation of a brand. cream. They are popular because they are local producers where they can, choosing You need nice packaging and advertising of simple to use and they do it all.” Gemey- recyclable packaging and so on. People can course but the key to success is the quality recently launched an 8-in-1 find out information faster than light, so of the formula, and nowadays you can’t cream, Dream Fresh BB, with a hint of transparency and consistency is very win with an average formula. The market is colour that claims eight beauty benefits important for brands in order to gain open for the big players, the ones who can such as blurring imperfections and consumers’ trust.” afford fundamental research. People who illuminating the skin. Yves Rocher, the number one body care think we are selling dreams are wrong. We There have also been some developments brand in France, exemplified this approach are not in the 1950s any more.” in private label with launching BB with its recent launch of its organic body Indeed, when Lancôme launched Crème hydratante SPF 15 earlier this year, care line Culture Bio Hydration with Aloe Visionnaire in September 2011 it was seen and in the prestige arena with products Vera. Not only does it contain organic as an incredible breakthrough in skin care. such as Estée Lauder’s DayWear Anti- ingredients, it ensures the traceability of its The serum, which contains the multi- Oxidant BB Crème SPF 35 and Dior ingredients. Xavier Ormancey, director of tasking molecule LR2412, is said to Hydra Life BB Creme. However Puszka research and development teams at Yves recreate the look and feel of beautiful skin comments: “BB creams have launched on Rocher, explains: “For this range Research and is claimed by Lancôme to have been so the prestige market but it has not been so Yves Rocher built a partnership with convincing in testing that one in two big. It is not what is dr iving the market in producers of aloe vera in Mexico to ensure women planning nonsurgical procedures premium skin care as it is in mass.” Puszka that the plant is g rown according to postponed them after trying the product. points to the more technological anti- tradition and in the context of organic Consumer reaction was staggering and sales ageing innovations, with serums in farming.” smashed all expectations as word spread of particular accounting for the strongest sales Meanwhile, Le Petit Marseillais a product that truly works. Aron notes: in prestige skin care. introduced a strict charter in 2011 which “Lancôme is a sure value for the consumer. But while mass market skin care sales prohibits or minimises ingredients including It is qualitative, based on research, well have been driven by BB creams, the next parabens and phthalates, as well as working known and French. This is what the mid- big thing is rumoured to be the CC cream on environmental and sustainable initiatives. recession consumer wants.” (colour control cream), which is currently For example, the market leading shower In a special annual review Lancôme blowing up in Asian and US markets. brand introduced 30% recycled plastic confirmed that 2011 was the best year it Kolerski-Bezerra says: “CC creams have not packaging in all of its innovations last year. has enjoyed for 15 years, due to Visionnaire yet launched in Europe but they soon will. The market has also seen some new and also its fragrance Trésor Midnight Rose While BB creams are very clever products faces, particularly targeting the children’s which became one of the best-selling even offering SPF protection, CC creams skin care market such as Too Fruit, an feminine autumn launches in Europe. The go one step further to offer a cor rection: organic range that is said to be specially aim, according to L’Oréal Luxe, was to better coverage and deeper moisturisation.” formulated to protect kids' skin. Another “regenerate the power and modernity of example is Lady Green, which exhibited at Lancôme, probably the most feminine and A NATURAL APPROACH Beyond Beauty in Paris earlier this year emotionally charged of all L’Oréal Luxe According to Kolerski-Bezerra, another key offering a collection of gentle, Ecocert brands and the one which best embodies trend in the French C&T market has been certified skin care products which are the French touch.” the spread of natural products into the specifically for girls and young women aged mainstream. “There was a move towards a 12 to 25. COMPETITION CHANNEL more holistic approach in 2011 for products Pharmaceutical eco-chic brands Nuxe As a category however skin care did not in every single channel of distr ibution. Not and Caudalie continue to be ever popular perform so well in the prestige market, only are products that promote naturalness with French consumers, since they falling 1% in 2011 according to present in parapharmacies and successfully combine a natural and NPD France. Puszka explains: pharmacies, they are also in technological positioning. “Beauty products “Skin care is the most difficult hypermarkets with most having need to be efficient with g reat textures and of the prestige categories launched their own private label scents, and natural products are no because of competition in other lines with a natural positioning.” different,” says Kolerski-Bezerra, “They have channels. It is more difficult to In May 2012 Auchan launched to really work while offering enjoyment explain the added value of the a new store concept which is fully and olfactory pleasure.” products in prestige outlets than dedicated to organic products, In fact, Caudalie has gone further than in pharmacies, for example. Plus called Cœur de Nature. The aim of this. “Caudalie has contributed to change there has been a lot of innovation the store, the first of which the image of pharmaceutical brands usually in mass market skin care, so we launched in Brétigny-sur-Orge, is perceived as natural and technical to a mor e have seen a long ter m decrease in to make organic products more luxurious and glamorous image. Due to prestige skin care over the last five accessible by putting cheap this, the brand recruited new consumers or six years and it is not an effect products on the shelves. from other channels; consumers who of the economic crisis.” It has also become more usually purchased skin care products in Indeed last year the mass market widespread for brands to consider beauty specialists began to purchase them was awash with innovation, the the whole approach to developing a from pharmacies and parapharmacies.” The spearhead of which was the BB product that considers environmental brand has most recently built on the success cream. “BB creams were a big and social issues. Kolerski-Bezerra of its Vinexpert line with the addition of phenomenum in 2011 in France,” says explains: “Today manufacturers have to Sérum Fermeté, which contains peptides, Kolerski-Bezerra. “It started with go beyond the marketing claim of argan proteins and resveratrol-oleyl to act

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on density and firmness on cheekbones, renovating its outlets since 2011 to mak e Labo also launched a new limited edition contour, neck and décolleté. signage clearer through colour coding and scent to mark the opening of the Meanwhile, Nuxe made its first foray into making sure beauty consultants were always perfumery: Vanille 44, described as “a vanilla fragrance in May this year with Prodigieuse available. As a result, the new outlets are with a difference”. le parfum, which captures the aroma of the generating 5%-10% growth in sales. brand’s number one selling product, Huile Meanwhile Sephora opened a ser ies of PRIVATE INVESTORS Prodigieuse. brand new concept stores this year, starting Beauty retailers have also been introducing With such brands at its helm, the with the Boulevard Haussmann boutique in or strengthening their private label ranges in pharmacy channel in France is going fr om Paris. The store features innovations such as a bid to increase basket spend and, in strength to strength. A study by Eurostaf a touch screen to help customers find their Nocibé’s case, attract younger consumers. notes how pharmacy groups are opening a fragrance and a Nail Studio that has been The selective beauty retailer, which is third growing number of outlets and “developing developed together with OPI and Sally behind Sephora and Marionnaud, real branding policies, thus improving their Hansen. “In our new generation stores, introduced its first colour cosmetics line in visibility on the beauty market”. fixtures have been elevated so that they May with no less than 200 skus. Beauty Success, which opened 16 allow more space on the g round and Meanwhile, in the mass market, new stores in 2011 and increased sales there is a better view of the store to hypermarket chain Carrefour launched Les by 6%, has in fact has just unveiled a give an impression of space. Also the Cosmétiques Design Paris in March, a new store concept as a result of a perfume area features LED lighting to private label range of toiletr ies, skin care, collaboration with agencies Versions structure the different areas which hair care and make-up with approximately and Raymond Interactive. looks more dynamic, edgy and 650 references, 20 of which are certified modern,” says Sephora. organic. With products such as Crème RETAIL RENOVATIONS In perfumery retailing Paris has also Cellulaire Gold Regeneration Age Ultimate As competition between the seen the emergence of shops that offer retailing at t90, the range exemplifies the networks increases, perfumeries have a space for artistic perfumery, such as way private label beauty in France is been developing new concepts to Nose which proposes an alternative becoming more sophisticated. modernise and attract new customers. offer to consumers of niche fragrances But as positive as many of these In an attempt to pull back mark et and Le Labo’s new Paris boutique, developments have been in terms of share, Marionnaud has been with its 1950s style shop front. Le progressing competition in the marketplace We’re taking a (super)critical look at extract quality www.stolz-concept.de

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Sucrose Esters

natural and vibrant consumer choice, it seems the French C&T market has been rather HPXOVLÀHUV troubled in 2012. Kolerski-Bezerra says: “This year has not been as positive as 2011. There were a lot of strong price increases, so this will be reflected in the growth rate.” natural Puszka adds: “The prestige market has seen a slowdown in 2012. Between January & mild and September, the prestige market declined 0.9%. Fragrance and make-up were down 1.1% and 1.4% respectively and skin care was stable, due to anti-ageing soft Caudalie Vinexpert innovation. However we don’t know how (left) lured consumers & silky from other channels to the year will end as December represents pharmacies while 20% of sales for this market.” Indeed there Sephora (above) were some strong launches this year, which opened a series of is promising for the all impor tant new concept stores Christmas period. This was most notable in stable fragrance with Guerlain introducing La & versatile Petite Robe Noire and Lancôme launching La Vie est Belle, which, according to Aron, “respects consumers with its high perceived quality”. It is precisely this that brands are required to strive for today. Puszka comments: “The main challenge for both manufacturers and retailers is to highlight the added value in a product compared to what is offered in other channels.” Part of the solution for retailers, Puszka believes, lies in using digital interactive tools as a means to interact dir ectly with the consumer. Kolerski-Bezerra adds: “Online and in-store have to work hand in hand. The cultural era is not killing the shop. The shop needs to adapt.” Some retailers are embracing the change, such as Sephora, who, by way of a recent example launched ‘Color Your Face’, a About Sisterna … virtual make-up application tool that enables users to try make-up looks on a Sisterna is the world’s forerunner in the research and development of picture of themselves. Meanwhile, for manufacturers, says Puszka, the solution lies high-grade sucrose esters for natural emulsifying applications. With in finding ways to communicate why a our experience over many years and together with our wide sales and product is worth the money. promotion network in Europe and the USA, Sisterna has developed French consumers have long been told countless proven and innovative concepts for the personal care and it’s because they’re worth it. They now decorative . need to be shown why it’s worth them.

Our technological edge and our detailed product know-how enable us ORGANIC ON THE RISE [VWYV]PKLZWLJPÄJILULÄ[Z^OPJO[OLZLUH[\YHSZ\JYVZLLZ[LYZVMMLYPU ● According to a study by research company Deloitte, the formulations. market has benefited from the development of ecologically responsible consumption and greater access to organic beauty products in supermarkets and hypermarkets. If you are convinced of the multifaceted effect of sucrose esters, then ● Yet despite this positive growth, Deloitte notes that the choose the best: Sisterna® sucrose esters. market faces several challenges in particular, including some consumer reluctance to purchasing, with price remaining the main obstacle along with distrust of green claims or ‘greenwashing’ and distrust of the efficacy of organic cosmetics. Sisterna BV ● Brands also face increased competition from major players Borchwerf 4M such as L’Oréal, and Yves Rocher who all now offer 4704 RG Roosendaal, The Netherlands t +31(0)165 524730 f +31(0)165 524739 organic ranges. [email protected] www.sisterna.com