French survey finds cosmetics distributors should better differentiate their products to retailers
Call for more investment in product placement
French research firm Eurostaf has said French perfume and cosmetics distributors should better differentiate supplies to retailers in the French market, improving customer relationship management in an increasingly concentrated and competitive national market. Successful recent strategies have included more “exclusivity agreements; positioning in niche markets (organic, ethnic etc) and growth in parapharmacy products,” said a Eurostaf report.
It added some leading French cosmetics retailers have benefitted from outlet overhauls. Marionnaud, Parashop and Galeries Lafayette in-shop sales rose 5-10% in the last two years.
Eurostaf also reported continued underinvestment in online retailing, including among some “department stores, large distributors, organic specialists, and parapharmacies.”