2006 - Interparfums

export sales, the
largest market for
the French industry
(57% of sales)
2006 was a very good year for the international
perfume and cosmetics industry, consolidating its
position in France as the country's fourth largest
net exporter behind aerospace, automobiles
and beverages.
With €8.69 billion in combined sales from all
distribution channels, exports grew 7.4%
in value, the strongest increase in the last five
years despite the persistence of unfavorable
euro/US dollar exchange rate trends.
Europe remains the largest market for French
exports (67%):
■ Sales in the European Union, where
competition remains fierce, registered year-toyear
gains of 5.4%. Germany that grew 6%
remains the largest market for export sales
followed by the United Kingdom (+4%)
and Italy (+7%). Very strong export sales
were also registered in the Czech Republic
(+41%, versus +9% in 2005), Poland (+23%),
and Slovenia (+21%);
■ European countries outside the EU continued
to post the strongest growth (+20%), driven by
Russia (+43.5%, +10% in 2005), the Ukraine
(+35%, +28% in 2005) and Romania (+29.5%).
In contrast, the pace of growth in Turkey
registered a slowdown (+1,3%);
The second largest export market, Far East
(10.5% du total), following a marginal slowdown in
2005, resumed its expansion with growth of
5.4%. Expansion was particularly strong in China
(+39.5%), India (+11.3%) and Singapore (+7.7%).
In contrast, Japan (+0.1%) and Taiwan (+1%)
experienced a slowdown.
Sales to North America (9,5% of exports)
remained buoyant advancing 6.8% overall
(+7.8% for the United States and +1%
for Canada).
Latin America posted its third consecutive year
of growth, expanding 12%.
The Near and Middle East (5.8% of exports)
registered solid growth of 7.3%.
Sales to Africa to continued to expand and
now accounting for 3% of total exports.
Finally, sales to Australia/Oceania continued
to retreat (-2% compared with -8% in 2005).
Sources: Fédération des Industries de la Parfumerie
France:
sustained growth
trends despite a
mature market
In 2006, following two consecutive years
of declines, (-1,2% in 2005 and -0,3% in 2004),
the French market resumed its expansion,
advancing 3.5% to €6.5 billion.
This positive trend reflected an increase
in producer prices of 2.6% combined with
growth in volumes of 0.9%.
In 2006, selective distribution registered
the strongest performance of all channels
combined, expanding 6.5% while price
increases remain contained (+1.7% over 2005).
Sales in the segment of pharmacies continued
to expand, though at a slower pace
(+1% versus average growth of 6% over the last
10 years).
Mass retail, after two years of declines,
rebounded sharply (+3.4%) in response
to increases in producer prices (+3.6%, -0.8%
in 2005 and -0.1% in 2004).
Finally, the direct sales segment posted
a marginal retreat (-1.5%) for the second
consecutive year, adversely affected by the
significant slowdown in the growth of producer
prices (+1.5% versus +6.6% in 2005).
market share
and competition
”
In France, Inter Parfums attained roughly a 2% share of the selective
distribution market of prestige perfumes. In certain countries such as
the United States, the United Kingdom, Russia, China or Italy,
the company estimates its market share of total French perfume imports
at between 1% and 4%.
In an industry highly concentrated around major players with billions
of euros in sales, Inter Parfums pursues a unique strategy of steadily
and methodically developing a portfolio of perfumes for selective distribution
based on internationally renowned brands. Although Inter Parfums’ closest
competitors do not develop mass market or cosmetics products, several
large corporations have perfume divisions with comparable strategies.
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