Beauty Retailing - France - January 2016

EUROPE - OVERVIEW
Areas covered in this report
 TECHNICAL NOTES
 MARKET SIZE
Mintel’s market sizes
National statistics data
Retail sector sizes
Financial definitions
Abbreviations
VAT around Europe
Figure 1: VAT rates, 2011-15
OVERVIEW
What you need to know
Areas covered in this report
EXECUTIVE SUMMARY
The market
Spending and inflation
Figure 2: France: Annual % change in total household expenditure and expenditure on personal care, 2011-15 (in current prices)
Channels of distribution
Figure 3: France: Estimated retail distribution of spending on beauty and personal care goods, 2014
Sector size and forecast
Figure 4: France: Annual % change in all retail sales (excl. fuel) and beauty specialists’ retail sales, 2010-16
Leading players
Key metrics
Market shares
Figure 5: France: Leading beauty specialists: Shares of all beauty retailers sales, 2015
Online
The consumer
Which products do they buy
Figure 6: France: Shopping for personal care products, in-store and online, October 2015
Factors influencing choice of retailer
Figure 7: France: Shopping for personal care products: Factors influencing choice of retailer, October 2015
Shopping for prestige beauty products
Figure 8: France: Reasons for buying prestige beauty products, October 2015
What we think
ISSUES AND INSIGHTS
A changed retail landscape
The facts
The implications
Figure 9: France: Attitudes towards face make-up, 2015
Use of technology and in-store assistance to boost sales
The facts
The implications
Figure 10: France: Attitudes towards eye/lip/nail make-up, 2014
Figure 11: France: Attitudes towards shopping for facial skincare, 2014
THE MARKET – WHAT YOU NEED TO KNOW
Economy weak but spending picking up
Spending on personal care a mature market
Grocers dominate mass market with specialists at the premium end
Specialists: growth coming from low priced make up operators
SPENDING AND INFLATION
France’s economy a weak spot in the eurozone
Consumption and purchasing power regaining momentum
Personal care, a mature market
Figure 12: France: Consumer spending on beauty and selected other goods (incl. VAT), 2010-15
Figure 13: France: Consumer spending on personal care goods and services (annual % change in volumes, 2010 prices), 2010-14
Inflation
Figure 14: France: Harmonised index of consumer prices, annual % change, 2010-14
Figure 15: France: Harmonised index of consumer prices on personal care, annual % change, May 2014-October 2015
PRODUCT MARKET BREAKDOWN
Figure 16: France: Main beauty markets, spending (inc VAT) 2010-15
Figure 17: France: Main beauty markets, spending (inc VAT) forecasts, 2015-19
CHANNELS OF DISTRIBUTION
Figure 18: France: Retailers used to purchase beauty products, November 2014
Grocers dominate
Specialists stronger at the premium end
Pharmacies popular
Department stores most significant in Paris
Non-store growing
Fashion retailers augmenting their offer with beauty
Figure 19: France: Estimated retail distribution of spending on beauty and personal care goods, 2014
SECTOR SIZE AND FORECAST
A relatively robust sector of retail
Figure 20: France: Health & beauty retailers sales, excl VAT, 2010-15
Figure 21: France: Health & beauty retailers sales, Forecasts, excl VAT, 2015-20
KEY PLAYERS – WHAT YOU NEED TO KNOW
A mature but evolving market
A concentrating sector
Online now an integrated and vital selling tool
KEY PLAYERS
Innovative Sephora
Kiko Milano, the Primark of make-up
Yves Rocher, enduringly popular
Marionnaud
New store formats
Growth of own-label
Competition forcing consolidation
Figure 22: France: Leading beauty specialists’ sales, 2011-15
Figure 23: France: Leading beauty specialists outlet numbers, 2011-15
Sales per outlet
Figure 24: France: Leading beauty specialists’ sales per outlet, 2011-15
MARKET SHARES
Figure 25: France: Leading beauty specialists: Shares of all beauty retailers sales, 2011-15
ONLINE
France at a medium stage of development
Online activity
Figure 26: France: Online buyers in last 3 months in key sectors, 2007-14
Online sales
Leading online players
Figure 27: France: Beauty retailers: Transactional websites, December 2015
THE CONSUMER – WHAT YOU NEED TO KNOW
Women shop more, but men spending too
Women buy more skincare, men more fragrance
Pricing and promotions are key to choosing where to shop
Almost 40% buy prestige beauty products
The promise of quality ingredients the main reason for buying prestige
THE CONSUMER – WHICH PRODUCTS DO THEY BUY?
Women buy more than men
Figure 28: France: Shopping for personal care products, in-store and online, October 2015
Figure 29: France: Shopping for personal care products, in-store and online, by gender, October 2015
Figure 30: France: Shopping for personal care products, in-store and online, by age, October 2015
THE CONSUMER – FACTORS INFLUENCING CHOICE OF RETAILER
Pricing and promotions the key factors
Figure 31: France: Shopping for personal care products: Factors motivating choice of retailer, October 2015
Figure 32: France: Shopping for personal care products: Factors motivating choice of retailer for skincare, by gender, October 2015
Figure 33: France: Shopping for personal care products: Factors motivating choice of retailer for make-up, by gender, October 2015
Figure 34: France: Shopping for personal care products: Factors motivating choice of retailer for fragrance, by gender, October 2015
THE CONSUMER – SHOPPING FOR PRESTIGE BEAUTY PRODUCTS
Figure 35: France: Purchasing of prestige beauty products, by gender, October 2015
Figure 36: France: Purchasing of prestige beauty products, by age, October 2015
Why they buy prestige products
Figure 37: France: Reasons for buying prestige beauty products, October 2015
Figure 38: France: Reasons for buying prestige beauty products, by gender, October 2015
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
INSTITUT NATIONALE DE LA STATISTIQUE ET DES ÉTUDES ÉCONOMIQUES (INSEE) – Paris
EUROSTAT – Luxembourg
THE BODY SHOP
What we think
Pushing its ethical credentials in an increasingly crowded market
New loyalty scheme
Rush-hour makeovers
Company background
Company performance
Figure 39: The Body Shop – Retail sales: Group financial performance, 2010-14
Figure 40: The Body Shop: Estimated UK sales performance, 2010-14
Figure 41: The Body Shop – Retail sales: Outlet data, 2010-14
Figure 42: The Body Shop: Outlet breakdown, 2010-14
Retail offering
DOUGLAS PERFUMERIES
What we think
A focus on beauty
Expansion and diversification
Bringing Les Bellista to Germany
Multichannel
Company background
Company performance
Figure 43: Douglas Perfumeries: Financial performance, 2010/11-2014/15
Figure 44: Douglas Perfumeries: Outlet data, 2010/11-2014/15
Retail offering
SEPHORA
What we think
Beauty retail trendsetter
Connected beauty store
Hair salon services
Customisable digital experiences
New shipping method for frequent shoppers
Trialling beauty box subscription service
Company background
Company performance
Figure 45: LVMH Selective Retail: Financial performance, 2010-14
Retail offering
YVES ROCHER
What we think
New concept store offers an enhanced experience
Augmented reality app that lets consumers virtually apply makeup
A gift with every order
Competitive prices
Seal of authenticity
Spanish store expansion on back of a recovery in the country’s beauty retail market
Company background
Company performance
Figure 46: Yves Rocher Groupe: Estimated group financial performance, 2011-15
Figure 47: Yves Rocher Groupe: Estimated outlet data, 2011-15
Retail offering