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Yves Rocher hits target but must expand internationally, says report

By Guy Montague-Jones , 23-Oct-2008
Last updated on 23-Oct-2008 at 14:09 GMT

Yves Rocher has neatly cornered the market for reasonably priced botanical and organic cosmetics but having limited geographical spread may endanger its development, according to Euromonitor.

In a “company watch” feature, Euromonitor said the principle strength of Yves Rocher is its emphasis on wholly-natural plant ingredients.

Yves Rocher delivers on natural promise

This strikes a cord with the modern consumer who, in flight from ‘harsh’ synthetic chemicals, is increasingly drawn to the natural and organic shelves.

Yves Rocher also received praise for its high-profile promotional strategy and product development programme that have both helped build a loyal following.

Its products positioned in the mass category but have succeeded in distinguishing themselves in a highly competitive environment by offering high levels of service such as free skin diagnostics and treatment cabins.

Offering value for money and a sense of fun, Yves Rocher has also become popular with young people.

Narrow sales base restricts growth potential

But having a narrow sales base with 65 per cent of its turnover generated in Western Europe and 10 per cent in North America, scope for development is limited, according to Euromonitor.

The market researchers said Yves Rocher should expand internationally into dynamic emerging markets and use its French identity to build new customer bases. But being privately owned, its potential for expansion is restricted by limited access to capital.

Another source of anxiety may be the mass market positioning of its products in an environment where private label organic cosmetics are stealing a march on their branded rivals.

Euromonitor said that with a strong history of botanical product development, Yves Rocher could increase its focus on clinically aligned products to stay ahead in the mass market. This could also help the company hold onto its younger followers as they get older.

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