Clarins says post-summer slowdown will affect second half
Company to focus on US and Asia expansion
Director general of the Clarins group, Philip Shearer, has said there has been a slowdown in the European cosmetics market since the summer which may well affect second half 2011. However, Shearer added that the company was relying on the potent effects of the Asian and Latin American markets to sustain growth.
Europe remains a key market, accounting for 50% of sales. Shearer said he was concerned both about the evolution of the market in second half and prospects for 2012. He noted that some of the perfumery chains were indebted, employment prospects were poor and credit was increasingly difficult to obtain, though he added that this was not a problem for Clarins if the results were on target.
Clarins increased its sales by over 10% in Europe in the first eight months of 2011, helped by the launch of new products and with the luxury cosmetics segment of the market expanding by between 3% and 4%. The group's global sales in this period went up 10% to around €1.2bn.
Current strategy is focused on expanding in the US and Asia. The US distribution network has been restructured and a new women's face cream introduced into Asian markets. Promotional spending this year has risen from €70.4m to €90.3m and the budget is to be further increased in 2012 in Asia and the US, though possibly not in Europe.