Monday, October 12, 2020Sector

Cosmed survey: the cosmetics industry facing Covid-19

Enquête Cosmed : la filière cosmétique face au Covid-19

Cosmed, French professional association of the cosmetics industry, conducted a survey in July 2020 to analyse the situation of companies and the prospects in the face of the Covid-19 crisis. A basis for raising the problems of the companies of the cosmetic sector with the authorities and proposing concrete solutions in the recovery plans under study.

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This survey was carried out among 168 entities, 95% of which were VSEs - SMEs:
• 58% own brands
• 11% subcontractors
• 18% consultants
• 10% suppliers
• 3% distributors

The survey shows a negative impact on the turnover of almost 80% of companies. A minority of them (7%) saw opportunities for growth.
In the post-lockdown period, the recovery was fairly rapid, with 49% total or partial recovery.
For 41% of the companies surveyed, the crisis has not impacted industrial activity, notably thanks to their involvement in the production of Hydro-Alcoholic Products (HAPs). 34% of the companies in the panel have produced PHAs.
60% of the companies suffered a drop or a halt in their exports when 19% managed to maintain their business or find new markets.

Overall, the negative impacts, beyond the drop in sales (50%), included postponed product launches (38%), cash flow problems (37%), a drop in production (34%), staff reductions (29%) and postponed investments (26%). Despite the situation, and in particular the closure of sales outlets during containment, only 28% of companies were actively looking for new distribution channels at the end of the crisis.

In terms of support, businesses have made extensive use of state …

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