The French prestige beauty market has recently posted negative sales growth in perfumeries and department stores.
According to the NPD Group, the segment’s revenues generated in such channels, including brick-and-mortar and online platforms, excluding sales rung up from exclusive and private-label brands, decreased two per cent to 2.99 billion euros in 2018.
The country’s prestige beauty market has been experiencing a decline for some time. It had the weakest performance in Europe last year, a one per cent sales loss in 2017 and a two per cent dip in 2016.
These numbers are said to be a result of competition in France, which has seen brands increasingly concentrating on their own e-commerce sites and freestanding stores. For example, Chanel and Dior have been more frequently going direct-to-consumer through their own boutiques over the last few years.
“We also have a lot of pure players in the French market,” NPD Europe beauty industry expert, Mathilde Lion, told WWD.
Vertical speciality brands, such as NYX Professional Makeup and Kiko Milano, are also chipping away at traditional retailers’ market share. Additionally, with fast-fashion labels, such as Zara and Hennes & Mauritz expanding their offerings, as well as beauty and health stores opening, Lion said “there’s growing competition from all sides.” According to her, France’s socio-economic context also hasn’t helped.
Skincare was the strongest seller when it came to perfumeries and department stores in 2018, but it still saw a one per cent sales drop. Fragrance registered sales down to two per cent, and makeup was at four per cent.
That said, some categories still saw growth – particularly men’s fragrances with higher concentrations.
