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Beauty Retail Shifts Shape With New Concepts in Germany

Shoptalk has gotten buzzier on Germany’s beauty scene, with Sephora, Douglas and Zalando all recently launching new retail concepts that are shaking up the market.
It is Western Europe’s largest market for fragrance and cosmetics, generating $18.64 billion in 2017, up 3.4 percent on-year, according to Euromonitor International. That’s compared to the U.K.’s $16.44 billion and France’s $14.55 billion.
“The drugstores along with perfumeries are still the dominant players in the personal-care market, though online retailers are growing rapidly,” said Andrew McDougall, associate director of beauty and personal care at Mintel Group, who listed Dm-Drogerie Markt, Rossmann, Müller and Douglas as the first to fourth leading players in the space.
“The structure of German retailing is unlike that of any other European country because of the dominance of the hard discounters,” he continued. “Their limited range and low prices have made it very difficult for large supermarkets to prosper, but have opened the way for a thriving drugstore sector.”
Despite such structural hurdles and chronic promotional activity, Germany is representing a big opportunity for prestige beauty sellers, as the penetration of premium products remains low. In 2017, beauty specialist retailers made just 14.9 percent of the country’s beauty sales, versus the 41.4 percent commanded

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Via:: https://wwd.com/beauty-industry-news/beauty-features/beauty-retail-shifts-shape-with-new-concepts-in-germany-1202907244/