Beauty Retailing - France - January 2017

OVERVIEW
What you need to know
Areas covered in this report
EXECUTIVE SUMMARY
The market
Spending and inflation
Figure 1: France: Annual percentage growth in spending on personal care articles and all spending, 2011-16
Channels of distribution
Figure 2: France: Estimated channels of distribution for spending on beauty and personal care goods, 2015
Sector size and forecast
Leading players
Key metrics
Market shares
Figure 3: France: Leading beauty specialists: Shares of all beauty retailers’ sales, 2015
Online
The consumer
Where they shop
Figure 4: France: Where they shop for beauty products, in-store and online, November 2016
Attitudes to Shopping for Beauty Products
Figure 5: France: Attitudes to shopping for beauty products, November 2016
What we think
ISSUES AND INSIGHTS
Stores are important but must move with the times
The facts
The implications
The rise of the green consumer
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Growth in economy and beauty spending is low
Low price rises on personal care items
Grocers and specialist chains are the main channels
Beauty retailers thriving despite weak spending
SPENDING AND INFLATION
Economic growth is sluggish
Market size and trend
Figure 6: France: Consumer spending on beauty and selected other goods (incl. VAT), 2011-16
Inflation
Figure 7: France: Consumer prices of personal care goods and services items, Annual % change, 2011-15
Figure 8: France: Consumer price inflation on personal care products and services, annual % change, January 2015-November 2016
PRODUCT MARKET BREAKDOWN
Figure 9: France: Main beauty markets, spending (inc VAT), 2011-16
Figure 10: France: Main beauty markets, spending (inc VAT), forecasts, 2016-20
CHANNELS OF DISTRIBUTION
Figure 11: France: Where they shop for beauty products, in-store and online, November 2016
Grocers capture most spending
Beauty specialists popular across the board
The parapharmacy concept building strength
Department stores significant, particularly in Paris
Cosmetic ranges in clothing stores try to draw in customers
Figure 12: France: Estimated channels of distribution for spending on beauty and personal care goods, 2015
SECTOR SIZE AND FORECAST
Total retail sales recovered in 2015, further growth forecast in 2016
Beauty retailers’ sales accelerating
Figure 13: France: Health & beauty retailers sales, excl VAT, 2011-16
Figure 14: France: Health & beauty retailers sales, Forecasts, excl VAT, 2016-21
LEADING PLAYERS – WHAT YOU NEED TO KNOW
Specialists as a whole are thriving
Top nine generate 70% of sector sales
Online small but growing
Social media a crucial tool amongst younger age groups
LEADING PLAYERS
Specialists thriving
Low priced cosmetics a key growth area
Integration of beauty services
Natural/green credentials increasingly important
Sephora continues to innovate
Nocibé thrives under Douglas ownership
Marionnaud fighting back
Yves Rocher new store format
Figure 15: France: Leading beauty specialists, Sales, 2013-16
Figure 16: France: Leading beauty specialists, Outlet numbers, 2013-16
Sales per outlet
Figure 17: France: Leading beauty specialists, Sales per outlet, 2013-16
MARKET SHARES
Figure 18: France: Leading beauty specialists: Shares of all beauty retailers’ sales, 2013-16
ONLINE
Internet usage
Shopping online
Figure 19: France: Online buyers in last 12 months in key sectors, 2011-16
Online sales
Leading online players
Figure 20: France: Beauty retailers, transactional websites, December 2016
Social media
Which social media do consumers use for beauty content?
Figure 21: France: Online platforms visited to view beauty content, by age, 2015
What beauty content are consumers interested in?
Figure 22: France: Interest in future beauty content on social media, by gender, 2015
What beauty content activities do they do online?
Figure 23: France: Beauty and personal care social media activities, by age, 2015
What do they think about beauty blogs and vlogs?
Figure 24: France: Attitudes to beauty blogs and vlogs, by age, 2015
THE CONSUMER – WHAT YOU NEED TO KNOW
Women the key demographic
Grocers the most popular channel
Almost half had bought online
Green and natural the two most important concerns
Online and in-store both valued
Personalisation an opportunity
WHERE THEY SHOP FOR BEAUTY PRODUCTS
Women the main shoppers
Figure 25: France: Who shops for beauty products, by age, November 2016
Figure 26: France: Where they shop for beauty products, in-store and online, November 2016
Loyalty
Figure 27: France: Repertoire of in-store retailers used, by age, November 2016
Customer profiles
Figure 28: France: Profile of those who bought in-store, by type of retailer used, November 2016
Figure 29: France: Profile of those who bought online, by type of retailer used, November 2016
ATTITUDES TO SHOPPING FOR BEAUTY PRODUCTS
Figure 30: France: Attitudes to shopping for beauty products, November 2016
“Green” and “natural” top the list of concerns
Figure 31: France: Selected attitudes to shopping for beauty products, by age, November 2016
The influence of online
Figure 32: France: Selected attitudes to shopping for beauty products, by age, November 2016
Many strengths in store environments
Figure 33: France: Selected attitudes to shopping for beauty products, by age, November 2016
Younger shoppers want more personalisation
Figure 34: France: Selected attitudes to shopping for beauty products, by age, November 2016
Attitudes by where people shop
Figure 35: France: Attitudes to shopping for beauty products by where people shop, November 2016
OTHER CONSUMER RESEARCH
Types of cosmetic brands bought
Figure 36: France: Make-up brands used/bought by women in the last 12 months, by age, 2016
Buying fragrance
Figure 37: France: Interest in trying fragrance tools or concepts if available, 2016
Facial skincare shopping behaviours
Figure 38: France: Women’s purchasing behaviours of facial skincare products, 2016
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
A. S. WATSON (EUROPE)
What we think
Solid performance
Service
New outlets
Marionnaud
Company background
Marionnaud
Company performance
Figure 39: A. S. Watson (Europe): Group financial performance, 2011-15
Figure 40: A. S. Watson (Europe): Outlet data, 2011-15
Retail offering
Continental Europe
UK
THE BODY SHOP
What we think
Enrich Not Exploit
Skincare products driving sales
Maximising mobile opportunities
New UK store concept offering an enhanced beauty shopping experience
Company background
Company performance
Figure 41: The Body Shop: Retail and consolidated sales, 2011-15
Figure 42: The Body Shop: Estimated UK sales performance, 2011-15
Figure 43: The Body Shop: Estimated outlet data, 2011-15
Retail offering
DOUGLAS GROUP
What we think
Perfumes and fragrances market under pressure
E-commerce growth
Private label expansion
Exclusive brands on the rise
New store formats
Growth through acquisitions and store openings
Professional beauty potential
Company background
Company performance
Figure 44: Douglas Group: Group financial performance, 2011/12-2015/16
Figure 45: Douglas Group: Outlet data, 2011/12-2015/16
Retail offering
KIKO MILANO
What we think
An authentic sensory in-store beauty shopping experience
Professional make-up artists’ recommendations bolster quality credentials
New smart technology-led store aimed at Millennials
Company background
Company performance
Figure 46: Kiko Milano: Group sales performance, 2011-16
Figure 47: Kiko Milano: Estimated outlet data, 2011-16
Retail offering
LUSH RETAIL
What we think
Distinctive USP that resonates with the 50% of consumers looking for natural beauty products
Transparency and authenticity
Enhanced store experience
Targeting fresh growth opportunities
Building a global open-source platform to connect its growing online community
Company background
Company performance
Figure 48: Lush Retail Ltd: Group financial performance, 2010/11-2014/15
Figure 49: Lush Retail Ltd: Outlet data, 2010/11-2014/15
Retail offering
SEPHORA
What we think
Revolutionising the beauty shopping experience…
…store concepts
…virtual and augmented reality
…mobile
Beauty-to-go
A new way to shop Sephora
New social media reward and mobile messaging e-gifting scheme
Company background
Company performance
Figure 50: LVMH: Selective Retailing sales and estimated Sephora retail sales, 2011-15
Figure 51: Sephora: Outlet data, 2011-15
Retail offering
YVES ROCHER
What we think
Natural beauty
Environmentally-friendly option
New app bridging the online and offline experience
New experienced-based retail concept rolled out across more stores
Company background
Company performance
Figure 52: Rocher Groupe: Estimated group sales performance, 2011-15
Figure 53: Rocher Groupe: Estimated outlet data, 2011-15
Retail offering