Shein destroys the fashion market in France. The Chinese clothing site at
low price has established itself in the cupboards of the French, to the great dismay of Pimkie and Naf Naf. Action scares Carrefour and specialists in the sale of cosmetic products just as much. Known for selling a host of non-food items at rock-bottom prices, the Dutch brand, which operates 730 stores in France, has also become a heavyweight in the sale of makeup, shower gels and other mascaras.
Inflation gives it wings. Because the surge in food prices, which has reached nearly 20% in two years, has profoundly changed the purchasing habits of French consumers in hypermarkets, a dominant channel which, according to the research company Circana, rakes in 6.6 billion euros of the cosmetics market in 2023. “They de-consume”, underlines Valérie Locci, key account manager at Circana. This crisis is old. Since 2019, “sales of hygiene and beauty products fell by more than 6% in volume in supermarkets and hypermarkets”, observes Circana. But, in 2023, everything accelerated: sales fell, in number of units sold, by 3.5% in twelve months.
This development notably hampered the sales of products which seemed to have strong growth prospects before the inflationary wave. The sector then relied on “the world after”, that of consumption of cosmetic products with a lower environmental impact. That is to say without packaging or made from natural ingredients. But, for example, solid shampoos have actually lost ground. And organic products, considered too expensive, are now struggling, just like in the food aisle.
Especially since, to offer more low prices, hypermarkets have reduced the number of brands and made more room for their own ranges. Without, however, delisting L’Oréal.
The group led by Nicolas Hieronimus still reigns supreme on the French hygiene and beauty products market. At the head of 41.2 billion euros in turnover in 2023, the manufacturer is taking full advantage of the success of its so-called consumer brands. Namely Garnier, L’Oréal Paris, Maybelline and Elseve. This division has “signed its best year in thirty years” in 2023, recalled the manager on February 9: it garnered 15.2 billion euros in turnover, thanks to a jump of 12.6%. In France, the group, which invests on average 9.9% of its global turnover in promotion and advertising, still has an unrivaled strike force.
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