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Tuesday, April 4, 2023France

Is the regulation of promotions a good thing for the Hygiene and Beauty sector?

L'encadrement des promotions, une bonne chose pour le secteur de l'Hygiène-Beauté ?

On 22 March 2023, the so-called Descrozaille law on trade negotiations was definitively adopted by the French Parliament. One of its effects is that supermarket promotions on hygiene and beauty products can no longer exceed 34%. A measure strongly defended by the cosmetics industry, but which the research firm Nielsen IQ describes as extremely unfavourable to the sector. CosmeticOBS takes stock of the situation, with NielsenIQ’s figures and the answer of Emanuel Guichard, General Delegate of the FEBEA.

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105 million euros of potential loss of earnings for the hygiene-beauty industry, this is what the NielsenIQ firm predicts in a study released on March 23.
According to this analysis, several categories of cosmetic products would achieve 2/3 of their turnover thanks to promotions above 34%. NielsenIQ announces 77.9% of turnover for sunglasses, 71.5% for bath and shower products, 71.4% for toothpastes…
These figures raise questions, when industry representatives had strongly argued for the alignment of the framework for promotions with the food sector.

“It’s clearly a study that was bought by the supermarkets to say that they didn’t want to regulate promotions,” replies Emmanuel Guichard. “And it is not at all convincing, since it considers that everything that is currently bought above the 34% promotion will no longer be bought. But people will still buy toothpaste and shower gel! This part of the study is nonsense.”

He also recalls that all FEBEA members, of all sizes (especially SMEs and not only multinationals) pushed for this measure.
“I don’t understand why all the DPH companies asked us to defend this measure if it would lead to the disappearance of the sector”.

For him, the measure would therefore be much more …

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