Increased attendance

Miek Vercouteren, CEO of Marionnaud France

Miek Vercouteren, CEO of Marionnaud France

In a selective French market on the rise for the first time since two years (+2.6% in value and +1.6% in volume), Marionnaud’s results also rose in 2010. The increased in attendance (+ 120,000 customers) has taken sales volume to a higher level, with a 2.4% rise. In value, however, the first network of perfume and beauty parlours in France (567 outlets and 704 cabins) suffered from its low cost policy with a limited growth of 0.8%.

With a leap forward of 7.8% in volume in the make-up segment, the brand exceeds the performances of the French market (+5.4%), even if again, the low cost policy reduces the performance in value: 5,3% compared to the 5.3% of the market.

Moreover, with a market share of 26.7%, Marionnaud remains the market leader for skincare products.

"We’ve increased the number of transactions performed on competitive segments of the market. These good results were achieved with no growth of the park but with more involved teams", explained Miek Vercouteren, CEO of Marionnaud France.

Betting on sales advice

Marionnaud considers that its good results in make-up and skincare, "segments where beauty advice and more globally customer relations are a determining factor", highlight the strength of its teams of beauty consultants. For the brand, this is due to both the very low turnover of employees (-10%) and to the training program implemented within the Marionnaud Academy, who welcomed more than 2,000 consultants and beauticians in 2010.

This sense of service was specially acclaimed by consumers who elected Marionnaud "Retail outlet of the Year2010" in the Perfume category as part of the annual survey conducted by the Dutch company Q&A Research&Consultancy. They evaluated the "Expertise of the staff" and "Friendliness of staff" as being the two main assets of Marionnaud’s outlets, with a score of respectively, 7.15 and 7.36/10.

Price War?

In 2010 Marionnaud’s priority was clearly to win new customers by engaging a fight on prices. The company sees no problem in the fact that the increase in attendance was accompanied by a drop in the average basket in value.

"Beyond the advice and service we provide our customers with, we commit ourselves in practicing all year long the best price in outlets, so that all women have a chance of feeling beautiful every day, whatever their budget," explained Sacha Tikhomiroff, Trade Director for Marionnaud.

Depending of the outlet in 2010, the number of customers considering Marionnaud as offering the best value for money has increased by 6% over the previous year (The 2009-2010 Picture Price barometer of the OC&C firm on the price positioning of different outlets, published late December 2010).

More than 20 new outlets in 2011

On the network side, the priority for 2010 was the renovation and standardization of the parlours. Nearly one Marionnaud outlet out of two has a parlour, which makes of the brand, with its 704 cabins, the first beauty parlour network of in France. The concept was globally rethought to make it more flexible and more modern.

This renovation plan is continuing in 2011 with the launch of a harmonization program for the outlets network on the entire territory "focusing on a new identity, suitable to all surfaces, and a revamped, more pleasant and efficient customer path."

Marionnaud will also resume its expansion policy by announcing the opening of more than twenty new stores in 2011, with to top it all off, the recruitment of hundreds of sales consultants.