Health and Beauty Retailing - Italy - March 2008

Table of Contents

• Market in Brief
• A mixed picture for the future
• Market size and performance
• Specialists' sector struggles
• Channels of distribution
  • Figure 1: Italy: Health and beauty market, estimated retail channels of distribution, 2006
• Leading specialists and market shares
• Consumer behaviour
• Report Scope
• Retailers
• Product markets
• Abbreviations
• Technical notes
• Financial definitions
• Currencies
• Country codes
  • Figure 2: Country codes
• VAT
  • Figure 3: Europe: Standard VAT rates, 2006/07
• Broader Market Environment
• Positive factors
• Negative factors
• Growing population
  • Figure 4: Italy: Population trends, 2002-06
• But ageing ...
  • Figure 5: Italy: Population by age, 2006
• Sluggish economic progress
  • Figure 6: Italy: GDP, 1996-2006
• Consumers lack confidence too
  • Figure 7: Italy: Consumer spending, 1996-2006
• Consumer prices have fallen
  • Figure 8: Italy: Consumer price inflation, 1999-2006
• Pharmacy regulatory issues
• The Market in Context
• Key points
• Health and beauty market
• Definitions
• Health and beauty outperforms other product markets
  • Figure 9: Italy: Consumer spending on selected categories of goods, 2002-06
• Product market breakdown
• Perfumes, cosmetics and toiletries
  • Figure 10: Italy: sales of cosmetics, fragrances and toiletries by category, 2002, 2004 and 2006
  • Figure 11: Italy: Relative spending importance of categories vs western Europe, 2006
• Pharmaceutical products
  • Figure 12: Italy: Pharmaceuticals market, product breakdown, 2002-06
  • Figure 13: Italy: Self-medication market breakdown, 2006
• Channels of distribution
  • Figure 14: Italy: Health and beauty market, retail channels of distribution, 2006
  • Figure 15: Italy: Members of the direct selling association, 2006
• Sector Size and Forecast
• Retail sales forecasts
  • Figure 16: Italy: Retail sales, 2002-12
• Past
• Treading water
• Medical and orthopaedic enterprises climbing
  • Figure 17: Italy: Retail enterprises, by sector, 2000-04
• Pharmacy outlet numbers
  • Figure 18: Italy: Number of pharmacies, April 2005 and April 2007
• The Consumer
• Where they shop
  • Figure 19: Italy: Retailer where toiletries, cosmetics/skincare, perfumes, healthcare products or medicines purchased in the last 12 months, November 2007
• Who buys where
  • Figure 20: Italy: Market positioning of retailers where toiletries, cosmetics/skincare, perfumes, healthcare products or medicines purchased in the last 12 months, by income and age, November 2007
• Detailed consumer demographics
• The specialists
  • Figure 21: Italy: Detailed demographics of toiletries, cosmetics/skincare, perfumes, healthcare products or medicines shopper by specialist retailer, November 2007
• Non-specialists
  • Figure 22: Italy: Detailed demographics of toiletries, cosmetics/skincare, perfumes, healthcare products or medicines shopper by non-specialist retailer, November 2007
• Retail Competitor Analysis
• Key points
• Leading specialists
  • Figure 23: Italy: Leading health and beauty specialists, 2006
• Market shares
  • Figure 24: Italy: Leading health and beauty specialists' market shares, 2006
• Evaluation
  • Figure 25: Italy: Health and beauty specialists' evaluation, 2006/07
• Alliance Boots
  • Figure 26: Alliance Boots: Share of UK health and beauty specialists' sales, 2002-06
  • Figure 27: Alliance Boots: Share of European health and beauty specialists' sales, 2002-06
• Strategic evaluation
• Lowering prices and boosting value perceptions
• The bottom line?
• Rebadging UK community pharmacies
• Distributing Boots own brands in continental Europe
• Background
• Financial performance
  • Figure 28: Alliance Boots: Group pro forma financial performance, 2005/06-2006/07
• Retail division -- 2006/07 performance
  • Figure 29: Alliance Boots: Retail division pro forma financial performance, 2005/06-2006/07 2007/08
• Store portfolio
• Historic numbers
• Expansion picks up again
  • Figure 30: Alliance Boots: UK and rest of Europe, company owned outlet numbers, 2006/07
• Rebranding Community Pharmacy
• Overseas concessions
  • Figure 31: Alliance Boots: Overseas concession numbers by country, January 2008
• Retail offering
• International
• Market positioning
• Brands
• Pricing
• Product offer
  • Figure 32: Alliance Boots: UK retail division sales mix by major product category, 2006/07
• Customer services
• Advertising and marketing
• e-commerce and home shopping
  • Figure 33: Alliance Boots: UK online retail sales, 2003/04-2006/07
• A.S. Watson (Europe)
• Strategic evaluation
• Group
• Background
  • Figure 34: A.S.Watson: European health and beauty chains, 2006
• Financial performance
  • Figure 35: A.S.Watson: Year-on-year growth at European health & beauty business, 2003-06
• Store portfolio
  • Figure 36: A.S.Watson: Group health & beauty outlets in Europe, 2002-07
• Group e-commerce
  • Figure 37: A.S. Watson: European online presence, 2008
• Benelux
• Background
• Financial performance
  • Figure 38: A.S.Watson: Estimated sales by fascia in Belgium and the Netherlands, 2006
• Store portfolio
  • Figure 39: A.S.Watson: Stores in Belgium and the Netherlands, 2002-07
• Retail offering
• UK
  • Figure 40: A.S.Watson: Sales as share of health & beauty specialists' sales in the UK, 2002-06
• Background
• Financial performance
  • Figure 41: A.S. Watson: UK operations' financial performance, 2002-06
• Store portfolio
  • Figure 42: A.S. Watson: UK operations' outlets, 2002-07
• Retail offering
  • Figure 43: A.S. Watson: Superdrug own brands, at February 2008
• Marionnaud
  • Figure 44: A.S.Watson: Marionnaud: Sales as share of health & beauty specialists' sales in France and Europe, 2003-06
• Background
• Financial performance
  • Figure 45: A.S. Watson: Marionnaud: Sales, 2003-06
• Store portfolio
  • Figure 46: A.S. Watson: Marionnaud: Outlets, 2002-07
  • Figure 47: A.S. Watson: Marionnaud: Store portfolio by country, 2002-07
• Retail offering
• Other Eastern Europe
• Background
• Financial performance and store portfolio
  • Figure 48: A.S. Watson: Other eastern European operations, 2004-07
• Celesio
  • Figure 49: Celesio (UK): Share of UK health and beauty specialists' sales, 2002-06
  • Figure 50: Celesio: Share of European health and beauty specialists' sales, 2002-06
• Strategic evaluation
• Background
• Financial performance
  • Figure 51: Celesio Retail: Financial performance, 2002-06
  • Figure 52: Celesio Retail: Sales by country, 2002-06
  • Figure 53: Celesio Retail: Sales and outlet growth by country, 2005-06
  • Figure 54: Celesio Retail: Q1-Q3 sales by country, 2006 and 2007
• Store portfolio
  • Figure 55: Celesio Retail: Outlet data, 2002-Q3 2007
• Retail offering
• Market positioning
• Product offer
• Brands
• Pricing
• Customer services
• Advertising and marketing
• e-commerce
• Douglas
  • Figure 56: Douglas perfumery division: Share of German health and beauty specialists' sales, 2003-07
  • Figure 57: Douglas perfumery division: Share of European health and beauty specialists' sales, 2003-07
• Strategic evaluation
• Background
• Financial performance
• Group data
  • Figure 58: Douglas Holding: Group financial performance, 2002-06/07
• Perfumery division
  • Figure 59: Douglas perfumery division: Financial performance, 2002-06/07
• Store portfolio
• International expansion continues
• Smart stores
  • Figure 60: Douglas perfumery division: Outlet data, 2003-07
• Sales densities
• Sales per outlet
  • Figure 61: Douglas perfumery division: Average sales per outlet by country, 2007
• Future store plans
• Retail offering
• Market positioning
• Brands and own brand
• Product offer
• Pricing
• Advertising and marketing
• e-commerce and home shopping
• Limoni Italy
  • Figure 62: Limoni Italy: Sales as share of health & beauty specialists' sales in Italy, 2002-06
• Background
• Financial performance
  • Figure 63: Limoni Italy: Group financial performance, 2002-06
• Store portfolio
  • Figure 64: Limoni Italy: Outlet data, 2002-06
• Retail offering
• Market positioning
• Product offer and brands
• e-commerce and home shopping
• Schlecker
  • Figure 65: Schlecker: Estimated share of German health and beauty retailers' sales, 2003-07
  • Figure 66: Schlecker: Share of European health and beauty specialists' sales, 2003-07
• Strategic evaluation
• Background
• Financial performance
  • Figure 67: Schlecker: Estimated sales performance, 2002-07
• Store portfolio
  • Figure 68: Schlecker: Estimated outlet data, 2003-07
• Retail offering
• Market positioning
• Brands
• Pricing
• Product offer
• Logistics
• Advertising
• e-commerce and home shopping
• Ihr Platz
  • Figure 69: Ihr Platz: Share of all German health and beauty retailers' sales, 2002-06
• Strategic evaluation
• Background
• Financial performance
  • Figure 70: Ihr Platz: Sales performance, 2002-06
• Store portfolio
  • Figure 71: Ihr Platz: Outlet data, 2002-06
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• e-commerce and home shopping
• Sephora
• Strategic evaluation
• Background
• Financial performance
  • Figure 72: Sephora: Estimated financial performance, 2002-06
• Store portfolio
  • Figure 73: Sephora: Outlet data, 2002-07
• Retail offering
• Market positioning
• Brands and product offer
• Pricing
• Advertising and marketing
• The Body Shop
  • Figure 74: The Body Shop: Share of UK health and beauty specialists' sales, 2002-06
• Strategic evaluation
• Background
• Financial performance
  • Figure 75: The Body Shop: Financial performance, 2001/02-2005/06
• Store portfolio
• Group outlet data
  • Figure 76: The Body Shop: Outlet data, 2001/02-2005/06
• European store numbers
  • Figure 77: The Body Shop: European outlet numbers, 2002-206
• European company-owned stores
  • Figure 78: The Body Shop: Company-owned outlets, 2002-06
• Shop refits
• Retail offering
• Market positioning
• Brands
• Pricing
• Product offer
• Advertising and marketing
• Loyalty card
• e-commerce and other home shopping
• Yves Rocher Group
  • Figure 79: Yves Rocher Group: Estimated sales as share of health & beauty specialists' sales in Europe, 2002-06
• Strategic evaluation
• Background
  • Figure 80: Yves Rocher Group: Group brands, 2008
• Financial performance
  • Figure 81: Yves Rocher Group: Sales performance, 2002-06
  • Figure 82: Yves Rocher Group: Turnover by brand, 2000 and 2005
  • Figure 83: Yves Rocher Group: Turnover by channel (%), 2000 and 2006
• Store portfolio
  • Figure 84: Yves Rocher brand: outlet data, 2002-06
  • Figure 85: Yves Rocher brand: Estimated European outlet numbers, 2005 and 2006
• Retail offering
• Market positioning
• Brands
• Product offer
  • Figure 86: Yves Rocher: Yves Rocher brand: Turnover by product group, 2006
• Pricing
• Operational issues
• e-commerce and home shopping
  • Figure 87: Yves Rocher Group: Yves Rocher brand: Identified group websites, 2008