september 2013 The Italian cosmetics system

Transcription

1 september 2013

2 Cosmetica Italia the personal care association 500 firms associated (95% of them are SMEs) Industry employees: 35,000 direct (200,000 including indirect workers) Member of Cosmetics Europe (the european personal care association) Achieved ISO certification since June 2008 and ISO since June 2013

3 Cosmetica Italia the personal care association Activities and servicies Technical and Regulatory Area Taxes and Economic affairs Area International Relations Area Statistics and economic analysis Certification and testing Training School and university Communication and external relationships

4 Cosmetica Italia the personal care association Activities and servicies: an overview General Assembly Technical & regulatory meetings Short-term economic analysis (sell-in trends, channels analysis) Local meetings with entrepreneurs ABC-cosmetici.it (our consumer focused website) Cosmoprof support (Bologna, Hong Kong, Las Vegas)

5 Cosmetics in Italy: benchmark The production/export ratio has gone up to 31,6% in 2012; other consumer goods sectors, such as the shoe market, reported a value of 80%: consequently, there are solid opportunities to further expand the internationalization processes The value of communication investments in cosmetics represent 44% of non-food products 65% of make-up distributed around the world is produced by Italian contract manufactures Since 1990 exports of cosmetic products reported an average growth of more than 5% per year; the highest percentage of the last decade was reached in 2010 with +17% In Europe Italy is the third cosmetics market after Germany and France; in world sales it ranks fifth (following USA and Japan) 5

6 Cosmetics in Italy: benchmark The industry provides employment for a total of 35,000 people: 54% women (by comparison the average percentage in manufacturing industry is 28% Graduated women are approximately 1,700 (45% of graduated working in cosmetic industry) Considering the total amount of people employed in the sector, 11% are graduated (whereas the national average is 6%) Considering contract manufacturing (third party manufacturing), women employed represent the 75% of the total workforce Not only graduated with a Science degree, but also graduated with competences in economics and marketing are requested 6

7 The Italian cosmetics industry: success factors High degree of product specialisation Constant investment in research and innovation Focus on service and customers High percentage of female employees Supply chain integration Production versatility ( tailor-made products) Originality (colour and lights.. design and packaging.. creativity and arts.. communication and entertainment.. tradition and beauty..) Wide range of products

8 Entrepreneurs and their companies large, medium-sized, small companies (over 1,000 units) branded companies (perfumery) Niche companies (specialties) Innovative third parties outsourcing (make-up) Innovative and modern companies, satisfying their customers needs

9 A successful entrepreneurial class... which ranks third in Europe for its turnover a worldwide competitor in the selective perfumery distribution a worldwide leader in the production of make-up a trend setter in design and packaging innovative in terms of formulations, colours, communication constant growth and development in the number of companies and products

10 ...marked by: QUALITY a constant research in effective formulation, supported by investment in product research and technological development a constant and fruitful relationship among industries, universities and research centers a continuous inspiration to market leaders for the maintenance of the best standards a strict compliance with European and national standards to safeguard the consumer EXCELLENCE modern production systems, with suitable control systems to ensure product safety constant research in latent consumer needs and innovation in the distribution and logistic process effective and adequate communication to the changeable consumers needs attention to the customers and to the evolution of their needs and lifestyle choices

11 Developments in the Cosmetics Industry FINAL FIGURES 2011 CHANCE % 2011/10 FINAL FIGURES 2012 CHANCE % 2012/11 FORECASTS %2013/12 Turnover Italy 6, , Traditional channels 5, , Professional channels Exports 2, , Global turnover of the cosmetics industry 8, , Figures in million euro

12 Channels forecast FINAL FIGURES 2012/11 FORECAST 1 SEM FORECAST 2 SEM Hairdressing Herbalist shops Beauty salons Pharmacies Mass market Perfum shops Subcontract manufactoring Figures in percentage

13 Cosmetics industry dynamics Increase In aumento Trend of employment Occupazione Employment Indicator of flexibility Machinery Utilizzo impianti utilisation Impact on the costs of production Costs di of produzione production Costi Forecast expansion of production capacity Machinery Macchinari investments Forecast optimization of production capacity Manutenzione Maintenance Evolution in the quality of product and service Research & Ricerca e sviluppo development Evolution on market approach Comunicazione Communication Stable Costante 0% 50% InDecrease diminuzione 100%

14 Turnover destinations Italian trade Foreign trade CHANNEL DETAIL Hairdressing 54,9% 45,1% Herbalist shops 95,1% 4,9% Beauty salons 80,1% 19,9% Pharmacies 86,4% 13,6% Perfume shops 70,2% 29,8% Subcontract manufactoring 24,6% 75,4% 0% 20% 40% 60% 80% 100%

15 consumptions

16 Italian market +2.0% -3.4% +5.0%

17 Consumption distribution by channel

18 Evolution of channels Pharmacies Perfume shops Mass market Door-to-door Mail order Beauty salons Hairdressing Herbalist shops

19 Consumption distribution by product

20 Cosmetics in Europe 72,287 mln European consumption in % 2012 vs trend figures in million euro, Cosmetics Europe data

21 Cosmetics trade balance 1,239 mln 2012 trade balance 31.6 % export/turnover % -2.4 % export 2012 import 2012

22 Italian cosmetics industry exports - top 10 % var. 2012/11 WEIGHT OF TOTAL EXPORTS IN 2012 % -4.2% % % % % % % % % % processing by Cosmetica Italia Study Centre of ISTAT data, figures in million euro

23 Italian cosmetics industry exports - categories processing by Cosmetica Italia Study Centre of ISTAT data

24 Beauty Report: focus 2010 Consumers Hairdressing Pharmacies Perfume shops

25 Beauty Report 2013: key-facts 1) the industry has continued to enjoy fundamental growth, despite the impact of an ongoing recession whose effects can be seen especially in the domestic market ongoing recession 2) the industry appears to be positively weathering the economic storm, thanks to the non-cyclical nature of consumer spending patterns, although consumers have adjusted their behaviour slightly industry non-cyclical 3) it was seen that the recession is being actively absorbed, while adjusting for its effects, by companies that take decisive action against it 4) it clearly emerged that constant attention needs to be focused on the cosmetics industry as a whole and on its maintenance

26 Beauty Report 2013: two needs 1) there is the need for businesses to make more of an effort to be more rational in their sentiment. Rather, it is important to rationalize pessimism and concerns and to trust in the dynamism that certainly does not appear to be lacking in cosmetics companies, given their anti-cyclical propensity as well as what continues to be the remarkably non-cyclical behaviour of consumers when it comes to purchasing cosmetics. 2) there is the need to harness that dynamism actively in order to drive new growth. To do so, however, it needs to be positively supported and steered by both public-sector institutions and by private-sector industry associations, also through new partnerships and alliances built along the way. partnership it needs to rationalize alliances sentiment dynamism

27 september 2013