According to NPD Group, sales of perfumes and cosmetics in selective perfumery shops, which now generate 2830 million euros in France, recorded a slight decrease in value (-0.9%) in 2012 compared to 2011, which was a record year for the sector. The decrease is more pronounced in volume (-3%).
Flat sales in December
Sales remained flat in December, which is a crucial month as it accounts for more than 20% of the selective channel’s annual turnover. In comparison, sales in December 2011 had experienced a very strong growth in value (+8%) compared to the same period in 2010. Under these conditions, the overall market decline is not a surprise. However, according to Mathilde Puszka, Beauty Analyst at NPD Group, "the French market is still doing better than its neighbours, Italy and Spain, where sales in value will respectively decline by 3.6 and 6.7% in 2012.”
NPD Group’s data show a decline of 1% of sales of fragrances in France in 2012. Women’s fragrances (-0.7% in value) are performing better than men’s fragrances (- 1.4% in value). Indeed, the impact of launches has been lower for men’s fragrances, while women’s fragrances have benefited this year from the successful launches of La Petite Robe Noire by Guerlain, La Vie est Belle by Lancôme, Manifesto by Yves Saint Laurent or Coco Noir by Chanel, Dior Addict Eau Fraîche and Eau Sensuelle by Dior. However these developments failed to stimulate an increase in sales compared to 2011.
Makeup segments also recorded an overall decline (-1.4%), in context where new products, which usually account for 16% of sales in this category, had a lower impact in 2012. "Makeup is highly dependent from innovations. In 2011, the market had benefited from the launches of major products such as Guerlain’s Terracotta or the Dior Addict’s lipsticks. Actually, more than new products, they were re-launches of iconic products. In 2012, there many new products but they were less appealing and therefore had a more limited impact on sales," said Mathilde Puszka.
Anti-aging treatments and nail polishes: the fastest growing segments
Skincare, which was traditionally the category that suffered the most in the selective beauty channel, succeeded to stabilize itself (-0.2%), mainly thanks to the dynamism of anti-aging sales that rose by 1.6% in value in 2012, with the launch or re-launch of innovative and sophisticated products. Brands have also invested heavily on specific products for the eyes, including including Clinique with the Even Better range, Dior with Capture Totale and Capture XP or Lancôme with Génifique et Rénergie Multi-Lift. "Innovation is absolutely required in the anti-aging segment as new products generate a quarter of sales," says Mathilde Puszka.
Nail polishes [1] formed the other very dynamic segment in 2012, with sales progressing by 7.8% in value compared to the previous year. The NPD Group estimates that this market has more than doubled since 2006 in terms of revenue but also of sold units. Actually, with an average price of 17 euros in high-end beauty stores, nail polishes remain an affordable luxury.
