Full service is here to stay. Whatever may be the market’s cyclical or structural difficulties, main key players participating in MakeUp in Paris agree that it is the symbol of a particularly heavy evolution of the trade, both for brands and subcontractors and that it is finding with make-up, a technical product par excellence, a favoured field of expression.

Full service strategies, "a key issue" for many exhibitors in the MakeUp in Paris show

Very complex to produce, many make-up products require, both for their formulation, and their packaging, a thorough industrial expertise that many companies, SMEs in particular, cannot afford or will not wish to acquire internally (when skincare and perfume are the core part of their business) and will therefore seek to supply from a third party. So far nothing surprising.

A springboard for growth

However, full service, "that offers everything", is also attracting big decision-makers, and even very large ones... But, why do groups enjoying a global dimension, that have at hand most of the required expertise and also have considerable resources, appeal to this type of service?

Marie-Christine Clerc, BCM Cosmétique

They do so sometimes to address specific needs, for instance in the case of a non-strategic one-shot launch, when they wishes to limit their own investment. They also rely on full service because it is fast, and therefore allows greater responsiveness for trendy products, and because it is also a very comfortable solution: "we manage the planning and logistics and we smooth out programs over time," explained Marie-Christine Clerc, Sales and Marketing director of BCM Cosmétique.

But there is no denying that there is a tendency toward the transfer of brand’s activities to subcontractors. With, as a corollary, a transfer of risk when brands delegate to subcontractors uncertainties linked to packaging development. Which can have its pitfalls for players otherwise subject to strong price pressure, even if they must invest heavily to remain competitive in the race for innovation.

From left to right: Anne Challe (Fareva Color) et Nathalie Dessirier (Alkos)

So does it mean sub-contractors can be considered like service providers likely to be ruthlessly exploited? Not at all. Because it is a great opportunity for them. First of all, because by working with these major groups, full service players discover that overseas operations are a very valuable springboard for growth when the European market is still dull. But there is more to it. "It’s interesting, explains Nathalie Dessirier, Export and Marketing manager at Alkos Cosmétiques, because it gives us a broader view, allowing us to acquire increased experience." And in this highly competitive market where innovation is permanent, "the more we will increase our expertise, the more we will become unavoidable, claims Anne Challe, CEO of Fareva Color, because full service covers a wide range of interpretations."

François Camilli, LF Beauty

"At LF Beauty, we distinguish full service - which is more limited - from a turnkey service, which implies full support from the draft to the placing of products on the shelves thus bringing real value," revealed Francis Camilli, Senior VP.

However, if full service represents a strategic development for many companies, it is not the only one. Because as mentioned above, it often involves seasonal collections, licensed products with a short life span, and thus very clearly raises the issue of the sustainability of the activity.

Stéphanie du Chaxel (Sothys)

Thus remains, as always, the critical importance of the relationship built with clients. "We select our suppliers on their capacity for innovation, on their understanding of the brand as well as on the quality of our business relationship and, more and more, on their knowledge of regulatory issues, emphasised Stéphanie de Chaxel, Marketing director of Sothys. In the case of full service, they must almost act like if they were a real department of the company that would be outsourced and with the same quality level".

Good news: the regulatory challenge to which will be confronted companies is another opportunity offered for a win-win partnership.