VKE announces 2012 turnover results
Cosmetics sector grows 3.9% to €1.951bn
German luxury C&T association VKE has announced its 2012 turnover results. According to these figures the premium cosmetics sector grew 3.9% to €1.951bn in 2012 – less than initially expected but still a good result considering the current economic situation in Germany.
In fact, according to a recent TNS Infratest study, every fourth female luxury C&T consumer polled would rather spend money on cosmetics than on cinema visits, jewellery (30% of consumers) or restaurants (18% of consumers).
The most popular category in the luxury market was colour cosmetics, which put on 5.3%. Nail polishes were the main growth driver here with total of 7.2 million bottles sold in perfumeries and department stores.
Women’s fragrances, up 4.5%, were also successful while facial skin care and sun care put on 3.5% and men’s C&T grew 4.1%. Body care, on the other hand, lost 3.1% due to the strong presence of own label brands. For 2013 VKE is forecasting a turnover increase of 2.5% to 3%.
However, the successful performance of the luxury sector in Germany was accompanied by a darker side – a dramatic rise in product piracy. In 2012 German customs police confiscated pirated perfumes and cosmetics worth €22.7m, an increase of more than 1.6% compared to 2011’s figure of €1.3m.
According VKE’s Martin Ruppmann this drastic increase has several reasons – the permeable borders inside the EU and especially the Schengen area, the trend amongst German consumers to constantly look for cheaper products and the further growth of online retailers like eBay. Over the last ten years the internet has become a major sales platform for pirated products.
VKE is the biggest association of luxury C&T distributors in Germany. It has over 60 members including the German subsidiaries of LVMH, Estée Lauder, L’Oréal, P&G Prestige, Coty, Chanel, Shiseido, Kanebo, La Prairie and Guerlain.
