France sees drop in cosmetics sales in the first half of 2012
The figures reveal that the first five months of the year saw the biggest drop of -6.3 per cent in volume and -4.2 per cent in value in the market, whereby all product categories were impacted, except for skin care sales, which remained flat in value.
Make-up sales decreased by 0.2 per cent, but were upheld by the drive of nail products (+2.2 per cent), while fragrances were reported as being the most severely impacted; having decreased by -0.6 per cent in value while sales in independent perfumeries decreased by -7.8 per cent in volume and by -6 per cent in value.
As far as perfumes are concerned, the report outlines that all lights are red for the category as women’s perfumes decreased by -1.4 per cent in value while men’s decreased by -1.8 per cent.
“Valentine’s Day was particularly disappointing this year and it has fallen short of expectations, especially for the perfumes category,” says FFPS’s Marie-Hélène Morin.
Value wise, only department stores succeeded in posting a turnover increase (+0.2 per cent), while both chain and independent stores receded (-1.6 per cent and -0.6 per cent respectively).
Despite the decline in cosmetics sales on the French market, it's not all doom and gloom as Morin says “high sales figures on Mother’s Day (+8.5 per cent in volume and 7.8 per cent in value compared to 2011) actually softened this downward trend.”
She further added that; "The launch of new fragrances at the beginning of September should reverse the trend of the selective channel’s main product category."
Speaking of the French cosmetic market...
Last year, France’s Social Affairs Commission passed an amendment to tax the sales of cosmetic companies in France.
It appeared that it was the third time lucky for Senator Alain Milon, who after two failed attempts, seen the approval of an annual tax of 0.1 per cent which will hit manufacturers and importers of cosmetic products marketing in France.
The senator’s proposal was adopted by the Senate and included in the final version passed by the National Assembly on the 29th of November 2011.
Cosmetics manufacturers, and distributors of products produced outside Europe, with a gross annual turnover of more than €763 000 were revealed to also be liable to the new tax.