The Essential Collection
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032 SPC1012 france.qxp:spc feature template 26/11/12 16:12 Page 32 francecountry report 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 cosmetics 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 hair removal 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 32 SPC December 2012 032 SPC1012 france.qxp:spc feature template 26/11/12 16:12 Page 33 country reportfrance 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 lipstick collection, Rouge 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 Guerlain 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 December 2012 SPC 33 032 SPC1012 france.qxp:spc feature template 26/11/12 16:12 Page 34 francecountry report fundamental research behind a product, Garnier 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 Maybelline 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 Sephora 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.