French cosmetics retailers faces crisis of customer confidence
Ph: streichersisters
The beauty market in France in the past several years can be divided into before and after the terrorist attacks in Paris in November 2015 and the avenue in Nice in July 2016. These two incidents killed more than 200 people and caused a sharp reduction in French tourism. And of course, this had a negative effect on a cosmetics market where foreign tourists are major drivers.
According to a study done by Mathilde Lion, an European beauty industry expert, skin care was negatively affected in 2016, at nearly -7% while perfume industry was more dynamic at about -2% and makeup was better. 2015 had been a great year with tourism, but the Paris attacks had an instant affected on the cosmetics market.
French consumer confidence is among the lowest in EU although it is actually improving French consumers are looking at cosmetics as a category to reduce their spend. The growth in spending on personal care products has been lower than that of total spending since 2012. However, consumers continued to be attracted by the innovations and benefits offered by skincare products, especially in color cosmetics and facial skin care categories.
The expert believes that unless the economic condition improves, there is not likely to be growth, while a possible reduction in tourist numbers may also impact the beauty market.
French cosmetics retailers faces crisis of customer confidence
