LISI ANNUAL REPORT 2009
Amarket in crisis,
with depressed consumption
Environment &prospects
Facing a dizzying slide in sales in
the cosmetics and perfumes sector,
LISI COSMETICS saw its earnings
contract strongly in 2009. Corrective
measures were rapidly implemented
to limit consumption and thereby
lower the break-even point. The superb
technological and organizational level of
the 3 factories should allow them to profit
from the rebound that began this year.
54.8
2007
51.0
2008
36.1
2009
Announcing…. the damaging effects of a crisis!
From 2009 on, the slow-down starting 4 months prior is confirmed. Due to the economic
crisis and in particular the desire of perfumery clients to lower inventory throughout the
supply chain, sales were strongly depressed and distribution stopped its orders. The buying
and provisions services of LISI COSMETICS’ major clients rapidly implemented policies
of drastic reduction in inventories while all major product launches for 2009 were either
cancelled or postponed. The entire sector has been affected: the inventory reduction
process undertaken has paralyzed our whole industry. For several months, the stagnation
of the market has been total, and sales in “travel retail” which are normally solid even in
recession, were down.
The Internet is gaining market shares
The brands, which are aiming to seize every opportunity to develop their business, deployed
new on-line sales sites, like those of YSL, Shiseido and Procter & Gamble. Procter & Gamble
today is doing over 30% of its business on line. E-commerce continues, for all players, to gain
market share. This new channel has, in its initial stages, prevented an even steeper drop in
the sector’s business activities.
Sales revenue in €M
47
