Part 1: EXTERNAL DIAGNOSIS
Macro Environment Offer Demand
Part 2: INTERNAL DIAGNOSIS
Club des Créateurs de Beauté
Success or Failure?
Part 3: STRATEGY AND OPERATIONNAL DECISIONS
Yves Rocher Club des Créateurs de Beauté
CONCLUSION AND RECOMMENDATIONS
DEFINITION: substance intended to come into contact with the varioussuperficial parts of the human body in order to clean them, perfume them, modify their aspects, protect them or maintain them in good state.
Essential role in everyone’s life 450 European consumers/day. Constant innovations and new trends Cosmetics legislation Global market growing annually since 1990 but currently facing a slowdown.
QUESTION: As we are facing nowadays more and moreconcerns about natural products, are we moving towards a new trend in cosmetic consumer behavior ?
Opportunities Political EU cosmetics directives.
Threats Restrict product proposition and brand flexibility.
Economic -Global market growing but -Appearance of low-cost. decline of some actors. -Multi-channels distribution. -Competition and -Intense competition. innovation. -Massmarketing Sociocultural -Organic cosmetic products -Ethno-cosmetic and cosmetics for men -Stereotypes -Organic cosmetics. Consumer easily tricked. Decrease of small companies.
- Scientific research -Synthetic molecules can allows constant hinder the consumers innovation. - Cosmetics sales online - Legislation and organic products make better productionand recycling conditions -EU cosmetics directives -Issues with Legislation. -Legislation (strict labelling, lists of banned substances, no animal experiments…)
Main cosmetic products › Skin Care › Color Cosmetics › Body & Bath › Women’s Fragrance › Men’s Products
Top 10 manufacturer competitors
› Cover Girl
› L’Oréal › Revlon › Mary Kay ›Lancôme › Clinique › Hard Candy › New York Cosmetics › Urban Dcay
(department stores, specialty stores and chain department stores)
Broad (drug stores, food stores, cosmetic discounters,
warehouse clubs and mass merchandisers)
› Direct Sales (Avon, Mary Kay, …)
› Direct Mail/TV/Print/Internet (Yves Rocher, Club des
Créateurs de Beauté, …)
› FreeStanding Stores (Body Shop, Sephora, …) › Health Food Stores (CamoCare, Kiss My Face, …)
› Salon & Spas (Aveda, Matrix, Murad, …)
Global trends of the market
Growth in recent years in global cosmetics market
The BRIC countries: growing market
Skin care contributed to almost a third of total market growth
Top 10 competitors shares 52% of global beauty sales(see graph) The emphasis to global wealth drives brands to increase their prices
Still taking into account ethnic and cultural differences Growing health awareness: natural ingredients Organic care small niche market but very dynamic Western Europe > highest rate of products with (at least 95%) natural ingredients
The EU market for cosmetic products
• •5 billion units of cosmetic products each year in Europe
Value of output of the European cosmetics-industry: over 35 billion € Direct employment in the EU cosmetics-industry: more than 150 000.
Main trends in France
• • •
Growth of 1.5% in 2009 in French cosmetic market Face to economic crisis, more and more price sensitive INSEE 2005: average spending in France is 205€/yr/person; oneof the highest in Europe
USE AND DISPLAY OF POST PURCHASE THE PURCHASE EVALUATION PRODUCT EVALUATION OF POSSIBILITIES
SEARCH FOR INFORMATION
Initiator: person who needs the product
Influencers: friends, family, sellers, media, actresses
Decision maker: person who decides the place to buy the product, …...