Premium Beauty News - As soon as you took office at the head of the FFPS you had to handle the issue on the renewal of the exemption regulation for the selective distribution. What is it about exactly?

William Koeberlé - It was my very first priority. When Thibault Ponroy left the presidency of the FFPS, we were negotiating with the European authorities the renewal of the exemption for selective perfumery. Maintaining a coherent framework on in this matter was crucial for us.

Selective distribution is first a means for market regulation. It enables high-end perfume and cosmetics brands to select their distribution network on the basis of quality criteria such as for example the shopping environment, and customer service at the time of sale. But in the end, the consumer must have the feeling he gets his money’s worth, specially through a range of services and advice which are offered to him in point of sales.

Among issues to address, there was the question of Internet sales. It was not, of course, the question of prohibiting online sales of perfumes and luxury cosmetics, but to make sure that they did actually meet quality criteria that compared to those found in stores.

The market needs rules that make it as efficient as possible.

William Koeberlé, French Federation of selective perfumery

Premium Beauty News - And how is this selective market performing today?

William Koeberlé - We returned to growth in 2010, both in value (+2.6%) and volume (+1.6%) according to figures provided by the NPD. This is true for all market segments, except for perfume whose sales volumes are still on a declining trend (-0.6%) in spite of an increase of 2.1% in value. It is colour cosmetics that is the fastest growing segment with +5.4% in value and also in number of units sold. Skincare is also very dynamic: + 2.1% in value and 3% in volume.

I’m pretty optimistic about the future and confident on the constant innovation spirit of brands which helps them to offer products that meet the needs of increasingly demanding customers.

Premium Beauty News - There is a significant development of private brands. How do you explain this phenomenon which hitherto originated rather more from mass distribution?

William Koeberlé - Private labels complement traditional skin care and make-up brands. They have their place on the shelves next to must-have best-sellers or original brands, with a true story, that help create differentiation. Private brands are actually meeting a growing need emerging from the market: Affordable quality. As such they are particularly attractive to young consumers, but not only. These ranges are an important element to help maintain the attractiveness of selective distribution.

Premium Beauty News - What are your priorities at the head of the FFPS?

William Koeberlé - My very first priority, as you understood concerned negotiations on the exemption regulation for selective distribution.

Then I wish we could move forward, with our suppliers on the challenges pertaining to logistics, and on closely related issues such as sustainability. We have thought up specifications on this subject and we have proposed to the FEBEA (French trade association representing manufacturers specialised in beauty products) who represents our contacts within the brands, to start discussing this issue with us. We have everything to gain, suppliers and distributors, by working together on common specifications for logistics. Indeed, shortcomings and a lack of efficiency in the supply chain, don’t bring value added to anyone.

In practice we must take up a common language for flows, we must agree on common methods for calculating greenhouse gases emissions, for harmonized traceability methods, anti-theft procedures, electronic data interchange (EDI) and the creation of electronic catalogues with standardized products sheets.

Eventually the third priority is our collective agreement and, through it, the key issue of trades in the perfume industry. Here again we touch issues related to the training of our employees and counselling, but also products, and the question of quality service provided to our customers.

The FFPS in brief ...

The French Federation of selective perfumery (FFPS) groups most of the distributors for high end fragrances, skincare and make-up products in France. It gathers main perfume chain stores (Douglas, Marionnaud, Nocibé and Sephora), Department Stores (Le Bon Marché, Galeries Lafayette and Le Printemps), bulk-buying organisations and franchises (Beauty Success, Passion Beauty) and some independents. Its members sales volume represent 95% of the French selective market. It is chaired by William Koeberlé since January 25, 2010.