The Active Cosmetics division's health-beauty-safety brand positioning is a strong lever for development at a time when consumers increasingly seek recommendations for safe and efficient skincare products.
Consumers are avid for recommendations from health professionals. The division's capacity to respond to this need is enforced by privileged relations and partnerships with 50 000 dermatologists, 78 000 pharmacies, 8 300 drugstores and 5 500 medispas and hospitals worldwide. The Internet has also become a go-to point for advice for consumers who also increasingly engage in e-commerce. In response to this trend, the division has developed mobile applications that also cultivate customer relations and channel traffic to brand websites.
The division is also diversifying its distribution channels beyond pharmacies to include parapharmacies which have developed considerably in Western Europe. A network of 2 400 parapharmacies now represents 13% of sales, i.e. a progression of 10% in 2013.
Pragmatism and agility have further served the division in adapting its traditional distribution model to the needs of new markets. The division's brands are now available in North American and Asian drugstores: points of sale that now represent 20% of sales. Also, new dermocenters in shopping malls and department stores display brands in a highly qualitative environment that promotes health and safety, and where skincare advisors are available. The Chinese e-commerce platform offers the possibility to ask questions to a skincare expert, and to seek advice from dermatologists. E-commerce is particularly important in the USA and in China where it already counts for 15% of the division's sales. The benefit of new distribution channels is reflected in the division's results in Chinese pharmacies, which have consequently shifted from 85% to 35% of sales over 3 years.
The Active Cosmetics division has developed a portfolio of 5 brands that complement the two global leaders: Vichy and La Roche-Posay. These include brands such as Skinceuticals, Sanoflore and Roger & Gallet.
In 2013, the division bolstered its position in Europe, its historic market, but also in new markets. This same year, the division's Western European market experienced strong growth with record sales in the North and also in the South. Growth here is almost double the market rate as a result of innovation in almost all of the division's brands, and its partnerships with pharmacy owners provide greater brand visibility and improved advice from pharmacist teams.
Division sales in leading markets were particularly successful in 2013: the Russian market grew by +12%, and Brazil had another strong year with +21%; among the Gulf States, Saudi Arabia saw an increase of 25%, and China's market accelerated in the second quarter by 15%.
Did you know?
1/ The Active Cosmetics division, in partnership with 5 schools of design, launched the "Reload my pharmacy" competition in 5 countries (France, Germany, Italy, Spain and Taiwan) together with 45 pharmacies, to imagine future dermocosmetics display areas designed for a new consumer experience.
2/ Skinceuticals, the company created in 1997 by American dermatologist Dr Sheldon R. Pinnel, was added to the division's portfolio in 2005. The brand's products, to use before and after cosmetic procedures practiced by doctors are leaders in medical sector. Skinceuticals is now available in 28 countries and recorded results of +14.5% in 2013.
3/ Roger & Gallet and Sanoflore are two other brands from the division's portfolio that are conceived, created and produced in France. Sanoflore combines the best of organic ingredients with the scientific rigor of dermatological cosmetics for proven efficiency and visible results. Textures and perfumes that are 100% natural are used for a greater sense of pleasure and offer women an organic alternative to conventional dermocosmetics. Since 1862, Roger & Gallet has been creating perfume for wellbeing. The brand designs perfumes and scented body products with natural, rare and active essences to instil caring sensations for the body and the mind.