Prestige brands achieve sales growth of 5.2 percent in 2011

The companies in the segment of selective cosmetics sales can look back upon the most successful business year in more than 10 years. In 2011, prestige-segment cosmetics were able to achieve a 5.2 percent growth in turnover. The key reasons were a dynamic start to the year and above-average Christmas sales.

The cosmetics index of the German Cosmetics Association (VKE) is at the positive level of last year and continues to show an exceptionally positive consumers’ attitude towards cosmetic products.

Stephen Seidel, President of the VKE and managing director of Clarins says: "In 2011, the companies in our industry have once again managed to take on the challenges of the market successfully. Strong quality brands, great innovative strength and constructive approaches to the development of the market were able to spur the consumption of cosmetics. In addition, a revised marketing policy of cosmetics shops has helped to highlight the value of brands and to win back consumer trust. For the future, it remains important that our industry counters the growing buyer power of retailers and demands compelling concepts from them. It is also important to prevent excessive regulatory intervention at European or national level, thus avoiding distortions of competition often associated with such measures."

The more than 50 leading companies in the mid and higher-priced cosmetics segment that are represented by the VKE Cosmetics Association, reported an above-average sales growth of 5.2 percent in 2011 compared to the previous year. In the past business year, this meant total revenues just under € 1.843 billion for the industry.

Stephen Seidel, President of VKE: "The assessments of the member companies are clearly positive for 2012. 54 % of the companies expect rising sales. The VKE Cosmetics Association therefore expects sales increases of up to 3 percent for the entire year, conditional of no further impacts caused by structural crisis." Thereby, the companies especially consider decorative cosmetics, perfumes for ladies, and the mens segment to be guarantors of growth.