Makeup and male fragrances drive growth of French prestige market

Despite bad results of the skin care segment, cosmetic products distributed in the selective channel rose by 1.2% in value and -0.6% in volume during the first half of the year in France. The French Federation of Selective Perfumery (FFPS) comments the statistics released by NPD [1].

Segments with mixed performances

Makeup for the lips (+5.8% in value) and the nails (+24.1%) are the best performers in the makeup that grew by +1.3% in value.

After a first half of 2010 during which skincare products returned to growth (+0.9% compared to 2009), the segment is falling again by -3.1% in value and -3.9% in volume at the end of the first six months of 2011. Both women’s and men’s skincare products are turning down, by -3% and -4.7% respectively.

Father’s Day boosted men’s fragrance

While perfumes show an increase of +2.7% in value and +0.1% in volume, Mother’s Day did not really stimulate the market for women’s fragrance. At end June, the growth of this category remains positive +1.7% in value but does not grow in volume (-0.4%).

However the Father’s Day strongly stimulated male fragrances, after two years in the red they reached the same level of sales as in 2009 on the same occasion. Male fragrances achieved a +4.9% growth in value and +1.2% in volume at the end on the first half of 2011.

Contrasted retail channels

The FFPS found that retail channels have responded differently to the low consumption levels of the first half.

On the one hand, department stores resumed their growth, which was already significant at the end of 2010, and pulled up the prestige beauty market: +3.3% in at the end of June with the number of doors.

On the other hand, beauty chains have enjoyed the benefits of the mechanical effect of a park larger than in 2010, and over-performed the market with a growth of +1.7% in value.

Combined together, the other retail circuits (groups, franchises and independent perfumers) regressed by -2.4% in value, with a decrease mostly detrimental to skincare (-8.2%) while the fragrances segment remains flat.

"It is stunning to note the differences between retail channels and the decline of the perfume segment that a dull Mother’s Day failed to stimulate. The market’s dynamics depend on low priced products such as makeup pallets and nail polish or gift sets," commented Bernard Tessier, Executive Director of the Federation.