Beauty Retailing - Italy - January 2011

MARKET IN BRIEF
REPORT SCOPE
Beauty retailing
Sources
Abbreviations
 TECHNICAL NOTES
Financial definitions
Currencies
Country codes
Figure 1: Country codes
VAT
Figure 2: Europe: Standard VAT rates, 2009
BROADER MARKET ENVIRONMENT
Key points
Implications for beauty retailers
COMPETITIVE CONTEXT
Key points
Health and beauty spending
Figure 3: Italy: Consumer spending on personal care and other selected categories, 2005-09
Figure 4: Italy: Consumption of cosmetics and toiletries products, 2005-09
Figure 5: Italy: Consumer spending, compound annual growth rate for major consumer goods categories, 2005-09
Spending breakdown
Figure 6: Italy: Consumer spending on personal care by major category, 2009
Consumer price inflation
Figure 7: Italy: Year-on-year annual consumer price inflation, 2000-09
Figure 8: Italy: Year-on-year monthly consumer price inflation for selected categories, Nov 2009-Oct/Nov 2010
SECTOR SIZE AND FORECAST
Key points
Economic and consumer outlook
Retail forecasts
Figure 9: Italy: Health and beauty retailers’ sales, 2005-15 (f)
Beauty specialists’ sales
Enterprise numbers
Figure 10: Italy: Health and beauty retail enterprises, by sector, 2004-07
CHANNELS OF DISTRIBUTION
Figure 11: Italy: Cosmetics and toiletries market, estimated channels of distribution, 2005-09
Health and beauty specialists
Grocery retailers
Department stores and other mixed goods retailers
Non-store
Figure 12: Italy: Specialist beauty members of the direct selling association, 2009/10
RETAIL COMPETITOR ANALYSIS
Key points
Leading specialists
Acqua & Sapone drugstores
Limoni perfumery
Sephora
Douglas perfumery
Schlecker drugstores
Bottega Verde herbalist
La Gardenia perfumery
Figure 13: Italy: Leading beauty retailers, 2009/10
Market shares
Figure 14: Italy: Leading beauty retailers’ estimated market shares, 2009
A.S. WATSON (EUROPE)
Figure 15: A.S. Watson (Europe): Sales as share of European health and beauty specialists’ sales, 2005-09
Strategic evaluation
Figure 16: Rossmann: Outlets per million population, 2009
 GROUP
Recent history
Figure 17: A.S.Watson: European health and beauty chains, 2009
Financial performance
Figure 18: A.S. Watson: Estimate European sales and store numbers, 2005-09
Figure 19: Rossmann Eastern Europe (joint venture): Estimated total European sales and store numbers, 2005-09
Store portfolio
Figure 20: A.S.Watson Europe: Estimated store numbers, 2005-09
 UK OPERATIONS
Figure 21: A.S. Watson UK: Sales as share of UK health and beauty specialists’ sales, 2005-09
Financial performance
Superdrug back on the road to profit
Can Savers beat the competition?
The Perfume Shop continues its strong performance
Figure 22: AS Watson UK: Financial performance, 2005-09
Store portfolio
Figure 23: AS Watson UK: Outlet data, 2005-09
Retail offering
Superdrug focusing on beauty
Savers’ wider offer
The Perfume Shop’s successful niche
Advertising
 CONTINENTAL EUROPE OPERATIONS
 BENELUX
Financial performance
Figure 24: A.S..Watson Benelux: Estimated sales contribution by fascia, 2009
Store portfolio
Figure 25: A.S.Watson: Benelux: Health and beauty store numbers, 2005-09
Retail offering
E-commerce
 MARIONNAUD
Figure 26: A.S.Watson: Estimated Marionnaud sales as share of health & beauty specialists’ sales in Europe, 2005-09
Financial performance
Figure 27: A.S. Watson: Marionnaud: Estimated sales, 2005-09
Store portfolio
Figure 28: A.S. Watson: Marionnaud outlets (estimated), 2005-09
Figure 29: A.S. Watson: Marionnaud’s store portfolio by country (estimated), 2005-09
Retail offer
 EASTERN EUROPE
Rossman joint venture
Baltic operations
Other Eastern operations
Figure 30: A.S. Watson: Eastern European operations, 2005-09
DOUGLAS
Figure 31: Douglas perfumery (Germany): Share of German health and beauty specialists’/beauty specialists’ sales, 2005-09
Figure 32: Douglas perfumery division: Share of European health and beauty specialists’ sales, 2005-10
Strategic evaluation
A first mover
A fast mover
Flexible retail mix
Recent history
Financial performance
Figure 33: Douglas Holding: Group financial performance, 2005/06 -2009/10
Figure 34: Douglas Perfumeries: Group financial performance, 2005-10
Figure 35: Douglas Perfumeries: Sales contribution of German/International stores, 2005-10
Figure 36: Douglas Perfumeries: Sales growth rates in selected countries, 2008/09
Store portfolio
Figure 37: Douglas Perfumeries: German/International store portfolio, 2005-10
Figure 38: Douglas Perfumeries: Stores per million capita in selected countries, 2009
Figure 39: Douglas Perfumeries: Outlet data, 2005-2010
Figure 40: Douglas perfumeries: Average sales per outlet by country (and date of entry into market), 2009
Retail offering
E-commerce and home shopping
LUSH
Figure 41: Lush Retail Ltd: Sales as share of UK health and beauty retailers’ sales, 2005-2008
Strategic evaluation
Struggling, but growing
The cost of a clear conscience
Spreading the risk
Recent history
Financial performance
Figure 42: Lush Retail Ltd: Financial performance, 2005-09
Store portfolio
Figure 43: Lush Retail Ltd: Outlet data, 2005-09
Retail offering
e-commerce
SCHLECKER (INCL IHR PLATZ)
Figure 44: Schlecker: Share of European health and beauty specialists’ sales, 2005-09
Figure 45: Schlecker: Estimated share of German health and beauty and of German beauty retailers’ sales, 2005-09
Strategic evaluation
Ihr Platz offers an opportunity
Recent history
Financial data
Figure 46: Schlecker: Estimated sales performance, 2005-09
Store portfolio
Figure 47: Schlecker: Estimated outlet data, 2005-09
Retail offering
Ihr Platz
e-commerce and home shopping
SEPHORA
Figure 48: Sephora: Estimated sales as share of European health and beauty retailers’ sales, 2005-09
Strategic evaluation
Recent history
Financial performance
Figure 49: Sephora: Financial performance, 2005-09
Store portfolio
Figure 50: Sephora: Estimated outlet data, 2004-09
Retail offering
THE BODY SHOP
Figure 51: The Body Shop UK & Republic of Ireland: Estimated sales as share of UK health and beauty retailers’ sales, 2005-09
Strategic evaluation
Recent history
Financial performance
Figure 52: The Body Shop (UK & RoI): Group financial performance, 2005-09
Store portfolio
Figure 53: The Body Shop UK: Outlet data, 2005-09
Retail offering
Market positioning
E-commerce and home shopping
YVES ROCHER GROUP
Figure 54: Groupe Yves Rocher: Estimated sales as share of health & beauty specialists’ sales in Europe, 2005-09
Strategic evaluation
Recent history
Figure 55: Groupe Yves Rocher brands, 2010
Financial performance
Figure 56: Groupe Yves Rocher: Group sales performance, 2005-09
Store portfolio
Figure 57: Groupe Yves Rocher: Estimated European outlet data, 2005-09
Figure 58: Groupe Yves Rocher: Yves Rocher brand: Estimated outlet numbers, 2005, 2006 and 2009
Retail offering
e-commerce and home shopping
APPENDIX – BROADER MARKET ENVIRONMENT
Population
Figure 59: Europe Top 6: Population breakdown, by age group, 2005
Figure 60: Europe Top 6: Population breakdown, by age group, 2010
Figure 61: Europe Top 6: Population breakdown, by age group, 2015
Figure 62: Europe Top 6: Population breakdown, by age group, 2020
GDP
Figure 63: Europe Top 6: GDP (in current prices) 2000-Q3 2010
Figure 64: Europe top 6: GDP growth rates (in constant prices), 2000-Q3 2010
Consumer spending
Figure 65: Europe top 6: Consumer spending (in current prices) 2001-Q3 2010
Figure 66: Europe Top 6: Consumer spending growth rates (in constant prices) 2001-Q3 2010
Consumer prices
Figure 67: Europe Top 6: Consumer prices, 2001-Oct 2010
Unemployment
Figure 68: Europe Top 6: Average rate of unemployment, 2001-Q3 2010
Interest rates
Figure 69: UK and Eurozone: Interest rates, 2004-Q3 2010
Consumer confidence
Figure 70: Europe top 5: Consumer confidence, March 2009-November 2010