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Beauty Retail in France Targets Lower Prices
Posted: February 19, 2014
In a video titled “Discounters on the Rise in France,” Euromonitor International’s retailing research analyst Mylan Nguyen and senior research analyst Johanna Kolerski-Bezerra describe how more beauty-focused discount retailers are popping up in the French beauty marketplace—and what that means for the greater global beauty industry.
“Discounting is a growing retail trend globally, and France is no stranger to it,” Nguyen notes. “In apparel, low-cost, fast-fashion retailers such as Forever 21 and Primark have already entered the French market, targeting trend-led consumers—mainly the younger demographic and fashionistas. And this trend is spreading to the beauty segment now, with, for instance, the beauty retailer Kiko, which offers color cosmetics at economy prices [and is] successfully expanding in France.”
Kolerski-Bezerra comments, “Kiko started in France in 2010. Today, they [have] around 100 outlets in France—a real success. So what’s the secret of its success? To start with, low-priced product. Also, a wide range of very fashionable colors, very interesting products, and also very nice packaging and design. Other players also are following [in] Kiko’s [foot]steps. For example, Hema, from the Netherlands, has recently launched a brand new concept dedicated to the beauty market. It’s called Hema Beauty. Another recent example is Bellista by Nocibé. The third beauty specialist retailer in France has recently launched its own brand and also is going one step further by offering low-cost services, such as manicures, pedicures [and] facials. Another example is the Spanish Equivalenza—this specialist in fragrances is actually planning to expand in France.
“So what does it mean for the future?” Kolerski-Bezerra asks. “Well, while the beauty and personal care market in France will remain fairly stagnant in the next five years, beauty specialist retailers are expected to post positive growth—[and] therefore, outperform the beauty and personal care market in France.”
Nguyen adds, “Actually, looking at Western European, France is a market expected to see the highest absolute growth, generating $350 million by 2018. This is the reason why more and more international players are aiming to enter the market, as it represents a stronger growth opportunity in comparison with domestic markets.
“Low price is key to attract more consumers; however, in-store experience is essential. Low-price beauty retailers—like apparel retailers—should renew their product trends regularly in order to keep their consumers interested. But what will make the real difference will be visibility—in the high street, of course, but essentially in social media and the blogosphere, [which is] the favorite universe of the main target group, the millennium generation,” Nguyen concludes.