France backing beauty with investment scheme
BPI France’s new performance Accelerator’ programme is intended to assist companies with strong growth potential and high added-value.
This year, Alban Muller was one of 59 companies from all over France that was considered eligible for funding, thanks to its high growth potential.
The programme reportedly aims to help small and medium companies to become the intermediate-size companies of tomorrow.
“Since its creation, in cooperation with the stakeholders, Alban Muller actively contributes to the economic performance of its region and is proud to be part of this initiative which aims to revitalize the French economy,” Alban Muller says.
French beauty: beset by low purchasing power
According to market research firm Euromonitor, France has posted poor value growth in beauty and personal care for three consecutive years, and this is largely due to poor purchasing power.
The firm picked out the fragile economic situation in the country as a key factor, with consumers keen “to pay attention to their expenditure and to opt for less expensive brands, as illustrated by the success of beauty and personal care products in chemists/pharmacies, whilst beauty specialist retailers underperformed.”
The firm notes that niche brands are major contributors to that growth that the country has seen in this market, suggesting that government initiatives to back smaller scale players, like the ‘Performance Accelerator’ programme, could well be a savvy move.
Any opportunities?
When considering the limited areas open to further growth, Euromonitor notes that naturals offer niche brands strong opportunities.
“Growing awareness of the potential side-effects of many of the artificial substances used in beauty and personal care products led many consumers to opt for natural and organic products,” the firm notes.
Niche players that offer natural, organic or ethical brand identities are likely to well, the firm predicts.
