2013 capital market days · 2013 capital market days 16,17, 18 september 2013 france, a region for...
TRANSCRIPT
2013 CAPITAL MARKET DAYS 16,17, 18 September 2013
FRANCE, A REGION FOR GROWTH
Hervé NAVELLOU
CPD President Western Europe
COUNTRY KEY FIGURES
3
France Key figures
GDP**
€2.032b
Inflation*
+2%
Rate of Unemployment*
10.6%
Purchasing Power*
-0.9%
Greatest Concerns *** 1. Unemployment 78% 2. Health 58% 3. Purchasing Power 54%
65.6 million people*
13% of European Union total population
2nd largest country in Western Europe
20 -64 y.old
20 y.old and less
17.7% 24.5%
57.8%
Sources: *Insee 2012- **Euromonitor Dec 2012- ***TNS SOFRES 2012
26/09/2013
65 y.old and more
THE FRENCH BEAUTY MARKET
5
2012 - French Beauty Market
26/09/2013
€ 6,969 M +1.1%
€ 6,983 M +0,2%
2010 2011 2012
MARKET SIZE & GROWTH
49.4M buyers 15 y.old and more
+ 415,000 buyers vs 2011
29.4 products purchased / year
Source: BMS L’ORÉAL- Sell in; Kantar World panel
6
2012 - French Beauty market €6.983 M (+0,2% vs 2011)
26/09/2013
Source: BMS L’ORÉAL
Styling
4% (-3.2%)
Haircolor
5% (+0.5%)
Haircare
10% (+2.1%)
Shower gels
11% (+1.4%)
Shaving
1% (-4.6%)
Deodorants
5% (+0.2%)
Oral Cosmetic
2% (-1.5%)
SKINCARE
32% (+1.0%)
MAKEUP
11% (+0.0%)
HAIR
19% (+0.6%)
TOILETRIES
17% (+0.7%)
FRAGRANCES
19% (-1.6%)
Face care
16% (+0.4%)
Cleansing
5% (-2.9%)
Body Care
8% (+4.2%)
Suncare
3% (+2.9%)
DISTRIBUTION
8 26/09/2013
French Distribution Landscape
7,520 hyper / supermarket stores
4,367 hard discounters stores
2,580 drive stores
MASS MARKET
77 department stores
2,300 perfumeries
SELECTIVE MARKET
58,000 hair salons 23,000 pharmacies
800 parapharmacies
PHARMACIES / PARAPHARMACIES HAIR SALONS
Source: IRI, IMS, NPD, FNC
9
2012 - French Beauty market €6.983 M (+0,2% VS 2011)
26/09/2013
MASS MARKET
37% (+0.5%)
PROFESSIONAL MARKET
10% (+0,9%)
PARA + PHARMACIES
18% (+3.9%)
DIRECT SALES
10% (-5.5%)
Source: BMS L’ORÉAL
SELECTIVE MARKET
25% (-0.6%)
SPLIT BY DISTRIBUTION CHANNEL
10
Complementary Distribution Channels
26/09/2013
Source: BMS L’ORÉAL
32% 11% 19% 19% 17% 2%
Mass Market
Professional market
Selective market
Direct sales
Category weight - Value
24%
37%
56%
9%
74%
25%
10%
3%
33%
17%
35%
82%
32%
6%
8% 1%
18%
75%
16% 19%
2% 8% 8%
SKINCARE MAKEUP HAIRCARE FRAGRANCES TOILETRIES ORALCOSMETICS
HAIR
Para pharmacies / Pharmacies
11
2012- Focus on Mass market distribution
26/09/2013
7,520 Hyper /
supermarkets
4,367
Hard discounters
37%
of total Beauty Value
SM
31.6%
HD
5.1%
HM
63.3%
Source: BMS L’ORÉAL, IRI
12 26/09/2013
Key facts Mass market distribution
Diversification of store formats (development of small stores, city-centre location, etc.)
Development of the Drive
Poorer performance of non-food and textile segments
Opportunity for beauty
13
2012- Focus on Pharmacies and parapharmacies
26/09/2013
Source: BMS L’ORÉAL, IMS
23,000 pharmacies
800 parapharmacies
71.5% pharmacies 18% of total Beauty Value 28.5% parapharmacies
14 26/09/2013
Key facts Pharmacies and parapharmacies
Priorisation of Dermocosmetics
Development of Consumer Experience, Service and Offer
Business potential for beauty brands
PARAPHARMACIES
PHARMACIES
Context • Change in Pharmacy : decrease in prescribed drugs affect the channel
• Pharmacies go towards news segments: OTC, Dermocosmetics (+4.6%)
• Growth is held by the biggest pharmacies (T.O > €2.2 M)
Driving growth of dermocosmetics
Huge development in the Mass market distribution
15
2012 -Focus on Hair dressing industry
26/09/2013
58,000 salons
€5.3 billion estimated turnover 2012 (including hairdresser services)
90% are independent… … and generate 65% of turnover
6,4% of total Beauty Value
HAIR PRODUCTS SOLD AND USED BY HAIRDRESSERS / SELL IN
TOTAL HAIR DRESSING INDUSTRY / SELL OUT
Sources: FNC, BMS
16
Key facts Hair dressing industry
26/09/2013
Stabilized consumers behaviour: 4.8 visits a year Atomised sector of small businesses: 90% are still independant salons Emergence of new categories: Color without ammonia, Instrumental cosmetic, Booming nailcare market
Opportunity for a new market dynamic
17
2012 -Focus on Selective Market
26/09/2013
2,300 Perfumeries
77 Department stores
25%
of total Beauty Value
Independant perfumeries+ others
15%
National channels + department stores
85% (65% in 2006)
Source: BMS L’ORÉAL, NPD
18
Key facts Selective Market
26/09/2013
Highly fragmented sector, where national brands + department stores account for nearly 85% of turnover
Independant stores account for only 10% of turnover
Growth of exclusive brands (Urban Decay, Clarisonic, Benefit, Make up for ever, Smashbox, Bare Mineral, etc.)
19
2012 -Focus on E-business
26/09/2013
Source: Intern Custagg based on panel data (IRI, NPD + IMS + KANTAR) – Sell Out
4% of total Beauty Value
Average
basket
Lancôme €95
Yves Saint Laurent €90
Kiehl’s €80
Biotherm €80
Sephora €51
The Body Shop €36
20
2012 -Focus on Retail stores
26/09/2013
FRENCH CONSUMERS
22
French Consumers Key facts 1st half of 2013
26/09/2013
2013
STILL UNDER PRESSURE …
BUT SOME GOOD NEWS IN EARLY 2013
Higher unemployment:
10.9%
Increased GDP (vol)
Increased Purchase Power:
+0.9% (Q1/2013)
Increased Household consumption:
+0.3% (vs -0.2% Q1/2013)
Inflation: +1.1% (annual base - July 2013)
Higher Taxes
26/09/2013 24
Source: Insee
23
French Consumer: The “Smart” Shopper
26/09/2013
Switches between
different distribution channels
Is watchful of prices
and promotion
Searches for
information, Compares online and
listens to WOM
Is Brand Loyal
24
Source: Intern
24
French Consumers: Colour as an antidote
26/09/2013
80% of women state that
colour is important to beauty
Sort of emotional pay-off from the use
of colour: feeling more attractive, more
feminine, or more confident
NAIL VARNISH BOOM:
+1,000,000 buyers vs y.a
Average basket: +12.6% units
Source: Intern, Kantar
25
Self-care as a core value
French Beauty market Key consumer trends
26/09/2013
Sensory perception: a major issue
26
Emergence of safety concerns
French Beauty market Key consumer trends
26/09/2013
Development of brands that have roots, their own history
The power of Nature
27 26/09/2013
New categories
Inspired technical
offers by professionals
Development of
“customised’’ offers
French Beauty market Key consumer trends
L’ORÉAL IN FRANCE
29
L’ORÉAL France
Source: Intern data
26/09/2013
FRENCH LEADER ON COSMETICS MARKET
Creation 1909
Sell In
€1,976 b Sponsorship €11.6M
Employees 12,255
Delivery sites
10 Plants 13
% of global l’Oréal sales
9.6%
Research centers 12
30
Market Share L’ORÉAL FRANCE total
26/09/2013
2011 2012 %value change
2012/2011
L’ORÉAL Total 27.0 28.3 +4.5%
Consumer Products Division 16.1 16.9 +5.1%
Luxury Division 4.7 4.9 +2.6%
Professional Products Division 3.3 3.3 +1.2%
Active Cosmetics Division 2.9 3.2 +8.3%
Source: BMS L’ORÉAL - Sell In
VALUE MARKET SHARE (%) - SELL IN
31
Consumer data L’ORÉAL FRANCE total
26/09/2013
NUMBER OF BUYERS (in millions)
2010 2011 2012
L’ORÉAL total 41.3 41.4 42.3
New buyers +420,000 +142,000 +836,000
Source: KANTAR
CPD: 41.0
ACD: 5.8
LD: 5.4
PPD: 3.0
32
Top 10 players Beauty market - France
26/09/2013
2010 2011 2012 % value change
2012/2011
L’ORÉAL total 28.8 28.8 29.5 +2.5%
LVMH 6.5 6.6 6.7 +1.2%
Yves Rocher* 5.4 5.9 5.6 -5.3%
Pierre Fabre 4.0 3.9 4.1 +5.6%
Unilever 3.4 3.4 3.5 +2.5%
Private Labels 3.6 3.5 3.4 -1.8%
Beiersdorf 4.0 3.6 3.3 -10.0%
Henkel 2.9 2.9 2.9 +0.0%
Chanel 2.8 2.9 2.8 -3.2%
Procter & Gamble 2.8 2.7 2.7 -0.4%
Source: Intern Custagg Panel IRI + Panel NPD + Panel IMS + Panel KANTAR - Hairsalons: excluding services. Perfume stores excluding own brand products
*= Brand Yves Rocher
VALUE MARKET SHARE (%) - SELL OUT
33
2012 Media spending €28 311M (-0,4%)
26/09/2013
653 646
529
459 446 417 373 370 350
315
PSA L’ORÉAL AUCHAN RENAULT VIVENDI VOLKSWAGEN LVMH CARREFOUR FRANCE
TELECOM
PROCTER
& GAMBLE
Source: Kantar Media 2012 – €M
TOP 10 MEDIA INVESTORS – TOTAL FRANCE
34
2012 Media spending- Beauty Total €2,056 M (+1.5%)
26/09/2013
642
-0.8%
186
+9.6% 184
+15% 125
+12.3% 96
-20.8% 66
+18.1% 57
+7.5 %
73
+12.3% 56
+36.8%
58
+12.9%
TOP 10 MEDIA INVESTORS – TOTAL BEAUTY
L’ORÉAL LVMH PROCTER
& GAMBLE
UNILEVER BEIERSDORF HENKEL JOHNSON
& JOHNSON
CHANEL
+ BOURJOIS
PUIG COLGATE
PALMOLIVE
Source: Kantar Media 2012 – €M
35
20.9% 18.5% 16.6%
53.1%
42.1%
SKINCARE FRAGRANCES TOILETRIES HAIRCARE MAKEUP
Market Share L’ORÉAL total - 2012
26/09/2013
L’ORÉAL IS LEADER WITH 28.3% VALUE MARKET SHARE (SELL IN)
BUT STILL HAS POTENTIAL FOR GROWTH
Source: BMS L’ORÉAL + DIM
L’ORÉAL
COMPETITION
€2,185 M
€1,357 M
€1,200 M
€1,356 M
€734 M
HAIR
36
Top 10 brands Beauty market - France
26/09/2013
2010 2011 2012 %value change
2012/2011
L’Oréal Paris 6.2 6.2 6.4 +2.8%
Yves Rocher 5.4 5.9 5.6 -5.3%
Garnier 3.5 3.3 3.5 +5.0%
Christian Dior 3.1 3.2 3.2 +1.5%
Nivea 3.6 3.3 2.9 -11.2%
Chanel 2.8 2.9 2.8 -3.2%
Avene 2.2 2.2 2.4 +7.5%
Gemey Maybelline 2.4 2.4 2.3 -4.4%
Lancôme 1.9 2.0 2.1 +5.9%
Guerlain 1.8 1.8 2.0 +9.9%
Source: Intern Custagg Panel IRI + Panel NPD + Panel IMS + Panel KANTAR
Hairsalons: excluding services / Perfume stores excluding own brand products
VALUE MARKET SHARES (%) – SELL OUT
FOCUS ON OUR DIVISIONS
38 26/09/2013
2012 %value change vs
2011
MASS MARKET +0.6%
L’ORÉAL CPD 45.4 +3.4%
PRIVATE LABELS 8.4 -1.8%
UNILEVER 8.1 +1.4%
BEIERSDORF 7.4 -10.4%
HENKEL 6.9 +1.0%
VALUE MARKET SHARE (%)
Source: IRI
L’ORÉAL Consumer Products Division
39
L’ORÉAL Consumer Products Division OUR AMBITION
26/09/2013
The strength of our brands
The quality of our innovations
The conquest of new consumer targets
“Fair share” on each major category
The expansion of our distribution
Being best in class in terms of A&P optimization: reaching consumers through all touch points and maximising return on investment
GROW OUR LEADERSHIP through:
40 26/09/2013
2012 %value change vs
2011
PHARMACY / PARA +3.6%
PIERRE FABRE 24.6 +4.9%
L’ORÉAL ACD 15.5 +8.1%
NUXE 5.8 +13.2%
BIODERMA 5.0 +12.4%
CAUDALIE 4.2 +3.3%
VALUE MARKET SHARE (%)
L’ORÉAL Active Cosmetics Division
Source: IMS
41
L’ORÉAL Active Cosmetics Division OUR AMBITION
26/09/2013
Brand priorities
1. Conquer leadership with La Roche-Posay
2. Vichy in the top 3
3. Add new targets thanks to Roger&Gallet and Sanoflore
Categories
Focus on Skincare & Haircare
Business model: conquer the distribution
Visibility, Consumer Experience & Advice, 1.500 new clients
Preempt the digital sphere
REACH 20% MARKET SHARE by 2017
42 26/09/2013
2012 %value change vs
2011
LUXURY -0.6%
LVMH 23.5 +1.3%
L’ORÉAL LUXE 20.9 +2.6%
CHANEL 9.9 -2.2%
CLARINS 9.6 -1.0%
PUIG 5.7 -3.0%
VALUE MARKET SHARE (%)
L’ORÉAL Luxury Division
Source: NPD
43
L’ORÉAL Luxury Division OUR AMBITION
26/09/2013
Grow our strategic brands: Lancôme - Yves Saint Laurent - Giorgio Armani (3 brands in the top 10)
• Winning Business model by categories 3 brands Skincare specialist / 3 brands Fragrace specialist / 1 brand Makeup specialist
• Build pillars while maximizing launches
• Deliver Retail excellence build on Oultet segmentation
Consistently ensure innovative & outstanding execution
N°1 LUXURY BEAUTY PLAYER by 2017
44 26/09/2013
2012
PROFESSIONAL PRODUCTS
L’ORÉAL PPD 50.8
SCHWARZKOPF 11.6
WELLA 7.4
EUGENE PERMA 6.9
COLOMER 5.2
VALUE MARKET SHARE (%)
L’ORÉAL Professional Products Division
Source:Intern
45
L’ORÉAL Professional Products Division OUR AMBITION
26/09/2013
Accelerate trafic to salons
Products innovation
Develop new territories and new channels
Increase our Distribution base
Boost the image of the industry
GROW OUR LEADERSHIP through:
46
L’ORÉAL France OUR AMBITION
26/09/2013
Be N°1 in each distribution channel and each category
Outperform the market
and boost our market share on total Beauty (> 30%)
Bring strong contribution to worldwide growth in value
Entrepreneurship and Excellence
FRANCE A REGION FOR GROWTH: