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.
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 …
