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Germany:Poor German consumption of
cosmetics and perfumeries: IKW |
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2004-12-8
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Stagnant sales in beauty segment were announced for this year in Germany by the German Cosmetic, Toiletry, Perfumery and Detergent Association IKW (Industrieverband Körperpflege und Wachmittel e.V.).
A 1.7% drop in sales to €11bn was brought out as provisional results due to economic uncertainty in the country, IKW general manager Dr Bernd Stroemer stressed at a conference to announce the results. “Volumes remained constant against 2003, but the sales in value came under pressure, not least due to an ongoing consumer shift to private labels in some segments.”
The annual per-capita spending on beauty products fell from €136 in 2003 to €134 in 2004, ranking 13th on a European scale even as European average per-capita consumption in cosmetics in 2003 reached €148.
Segment wise, haircare remained the strongest product group with overall sales of €2.81bn, against €2.86bn in 2003. The sales drop of 1.9% (2003: +1.1%) might have been even more significant (-2.7%) without professional haircare, Stroemer informed.
Skincare sales dropped 1.6% to €2.4bn (2003: +4.7%), due to a double-digit decline in sun care and stagnating results in body care. All types of anti-aging skincare products continued to perform strongly, however. In a forecast for 2005, Stroemer said: “IKW counts again on a stronger performance of mass against prestige distribution [in skincare].”
Sales of makeup generated €1.3bn, a 1.9% drop on 2004, with eye makeup and foundation as the only product groups in this category with positive performances against last year.
Women’s fragrances were again under pressure, notably due to the closure of points-of-sale and heavy discounting, Stroemer opined.
Overall sales dropped 1.9% to €750m, against €764m in 2003.
The increase in prices for women’s fragrances after the introduction of the euro, often blamed by prestige retailers for the sharp sales drops in this category in recent years, “had no impact on the performance of this category,” IKW deputy chairman Dr Klaus Schumann, general manager of the Procter & Gamble Holding GmbH said.
Men’s products showed stagnating sales at €640m. Products grouped in this category are shaving products, pre-and after-shaves, fragrances and skincare. Whereas sales in pre-and after-shaves dropped, fragrances performed slightly better than in 2003 and skincare products saw double-digit growth.
Bath and shower gels value sales dropped 3.7% to €708m, with sales increasing in volume, Stroemer said. Deodorant sales on the other hand dropped 5% last year to a total volume of €646m in 2004.
IKW chairman Werner Brettschneider says the German market situation is likely to remain unchanged forcing big players in the market to change strategies. “It is rather mid-sized groups that may come under pressure, if the situation does not improve in the future,” he added.
This viewpoint is shared by Schumann, who viewed Germany as the third-biggest single market worldwide, and it remains one of the key markets for all players in our industry.”
As per Brettschneider the outlook for 2005 is difficult, as long as the economic and political framework in Germany remains highly uncertain.
But the mute question for 2005 is probably who and what can spur the Germans to start buying again? |
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