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France’s Lipstick Exports Surges with Boosting Demand from China


France’s Lipstick Exports Surges with Boosting Demand from China

IndexBox has just published a new report: ‘France – Lip Make-Up Preparations – Market Analysis, Forecast, Size, Trends and Insights‘. Here is a summary of the report’s key findings.

France’s lipstick suppliers benefit from the recovery of the global cosmetics market. From January to October 2021, exports of lip make-up preparations amounted to 5.9K tonnes, 11% more than in the same period of the previous year. in monetary terms, supplies abroad soared by 31% to $728M. China, the largest importer of lipsticks from France, ramped up purchases by 53% to 1.3K tonnes or 76% to $267M in value terms over the period under review. in January-October 2021, the average price of lip make-up preparations from France stood at $124 per kg, an 18%-increase compared to the figures of the same period in 2020.

France’s Lip Make-Up Preparation Exports in 2021

During January-October 2021, France exported 5.9K tonnes of lip make-up preparations worth $728M. Compared to the same period of the previous year, export rose by 11% in physical terms and by 31% in value terms. The average price of lip make-up preparations from France was estimated at $124 per kg, rising by 18% against the figures of the same period in 2020.

The sales growth was driven primarily by rising demand from China, which boosted its purchases by 53% to 1.3K tonnes or by 76% to $267M in value terms. Among other importers, the U.S., Singapore, Italy and Spain ramped up imports from France, while Germany, the UK and Russia reduced purchases.

Rising supplies from France reflect a recovery of the global cosmetics market since France remains one of the largest cosmetics suppliers worldwide. It is also the leading exporter of lipsticks with a share of 16% of the total value.

France’s Lip Make-Up Preparation Exports in 2020

In 2020, approx. 6.6K tonnes of lip make-up preparations were exported from France, waning by -18.2% compared with 2019 figures. in value terms, the supplies declined dramatically from $816M to $659M (IndexBox estimates).

China (995 tonnes), the UK (980 tonnes) and the U.S. (637 tonnes) were the main destinations of lip make-up preparations exported from France, with a combined 39% share of total volume. Germany, Singapore, Spain, Italy, Russia, Belgium, South Korea, Japan, the United Arab Emirates and Senegal lagged somewhat behind, together comprising a further 43%.

In value terms, China ($180M) remains the key buyer of French lip make-up preparations, comprising 27% of total exports. The second position in the ranking was occupied by Singapore ($86M), with a 13% share of the total value. It was followed by the U.S., with an 8.4% share.

The average lip make-up preparations export price stood at $99,600 per tonne in 2020, approximately reflecting the previous year. Prices varied noticeably by the country of destination; the country with the highest price was South Korea ($313,708 per tonne), while the average price for exports to Senegal ($3,564 per tonne) was amongst the lowest.

In 2020, the most notable growth rate in terms of prices was recorded for supplies to South Korea, while the prices for the other significant destinations experienced more modest paces of growth.

Source: IndexBox Platform


Goods-to-Person Robotization is Key in Meeting the New Logistics Challenges Facing the Cosmetic Industry

The cosmetics industry in France is a major driver of the economy. Despite the drop-off in exports caused by the pandemic, the sector achieved total revenues of over €15.7 billion in 2020 and leads the world with a 24% share of the global cosmetics market. The exceptional circumstances over the past year have had another effect on the industry – they have amplified consumer trends and pre-existing purchasing practices such as personalization, transparency and the boom in online sales. The net effect has been the total disruption of the product mix occasioned by, for example, the surge in demand for natural, healthy products and a fall in the demand for lipstick.

Against this background, in addition to its usual challenges – time to market, the growing demand for personalization and the management of peaks in activity – the cosmetics industry is being compelled to change and adapt its logistics model. Warehouses are having to automate storage and order picking without losing sight of the particular nature of personal care products – high unit values, tight technical specifications, critical shelf life and low individual despatch unit volumes – in order to be fully effective strategic assets, delivering products increasingly quickly and meeting new consumer expectations.

The benefits of Goods-to-Person robotization in meeting new logistics challenges

As new trends coalesce into a dynamic that demands a response, Goods-to-Person robotization – where robots transport shelf units containing goods to operators – is set to revolutionize logistics in the cosmetics industry.

– Given the change in consumer behaviour and habits: In response to new consumption trends, today’s cosmetics industry is setting its sights on omnichannel sales and distribution together with digital technology. Consumers are demanding a simplified buying journey in every channel, from next-day delivery by e-commerce sites to click-and-collect, and a smooth item return process for online purchases. In warehouses, this rapid omnichannel delivery is translating into an exponential increase in retail order picking activity, which is both time- and resource-consuming.

Advantages of Goods-to-Person robotization: Besides reducing storage space by up to 30% using mobile shelf units where many products can be economically stored in small quantities, the Goods-to-Person robotics solution guarantees quicker picking of retail orders. It eliminates unnecessary movement and actions by operators to ensure the careful handling of fragile products. The gain in picking productivity can be as much as 40%.

– In this age of hyper-personalization: The other great challenge facing the cosmetics industry is the advent of hyper-personalized cosmetics where the ingredients and packaging are adapted to match consumers’ individual requirements. To this is added a boom in kits that allow consumers to make their own beauty products. The impact of these developments on warehouses is an increase in the range of products to be stored and picked, the need for short or on-demand production runs complying with the regulations on cosmetics (which are particularly demanding in Europe) and the need for personalized packaging combined with adherence to tight delivery times.

Advantages of Goods-to-Person robotization: Goods-to-Person robotization enables small quantities to be picked rapidly and moved seamlessly to areas where orders are personalized in terms of labeling, preparation and/or packaging.

– Ever-increasing trackability and transparency: Another fundamental trend rapidly becoming established in the cosmetics industry is the demand for natural products and the consumers’ need for transparency, reinforced by the Covid-19 crisis. Consumers now want sustainable products, in phase with their concerns, together with all the necessary information on their ingredients, origin and manufacturing process. Their desire to care both for themselves and the environment looks set to continue as “clean” beauty, eco-friendly packaging, short supply circuits and products made in France gain in popularity. Trackability of products in the warehouse is a key factor in meeting the consumer-driven demand for transparency.

Advantages of Goods-to-Person robotization: Scallog’s Goods-to-Person robotics solution makes it possible to optimize locations according to batches, expiry dates etc. and to ensure flawless trackability throughout the picking process.

– And therefore security: This demand for trackability is linked to that of security. Cosmetics products are recognized for their high monetary value, which increases the risk of theft. Cosmetics manufacturers must mitigate the risk of products “flying away” from warehouses that run a multitude of processes and are often staffed by a high proportion of temporary staff. Any solution that helps to combat theft and shrinkage improves the manufacturer’s margin.

Advantages of Goods-to-Person robotization: The Goods-to-Person system is based on a fully enclosed and secure storage area in which robots operate, moving shelf units. In addition, when picking orders, operators are guided and monitored in everything they do.

– Many triggers that cause peaks in shopping activity: The cosmetics industry today offers consumers many incentives to shop in order to boost its sales. To the traditional festive season, always a time of high shopping activity, are now added promotional offers, Valentine’s Day, Black Friday, Cyber Monday and similar “special” events that result in booming sales of perfumes and cosmetics over a few days. Warehouses must once again cope with a significant increase in order picking over a short period.

Advantages of Goods-to-Man robotization: Scallog’s Goods-to-Person robotics solution absorbs peaks by smoothing order picking efficiently and cost-effectively. It handles increases in order picking requirements by extending its operating times, only needing limited additional human resources.

A competitive and dynamic sector, the cosmetics industry is having to reinvent itself and its logistics model in response to today’s unusual situation. The main post-Covid-19 challenges, wide-scale sustainability and “naturalness” – natural ingredients with recyclable, zero-waste packaging – all represent sources of growth for the industry. Goods-to-Person robotization can play an important role in maximizing this opportunity as its flexibility, adaptability, productivity and sustainability are guaranteed!

This article originally appeared here. Republished with permission.


USTR Announces Additional Duties on Cosmetics and Handbags from France, Delays Effective Date Until January 2021

On July 10, 2020, the U.S. Trade Representative (USTR) announced that it would impose a 25 percent additional duty on certain cosmetics, soaps and cleansing products, and handbags that are products of France, valued at $1.3 billion, due to the French Digital Services Tax (DST). Nevertheless, USTR delayed the application of the duties for as long as 180 days, which means that at the earliest, the additional duties would go into effect January 6, 2020.  USTR stated that the tariffs could go into effect sooner than the 180-day suspension period, but if this change were to occur, USTR would issue a subsequent Federal Register Notice amending the effective date of implementation for the tariffs.

In July 2019, USTR opened an investigation directed at the Government of France under Section 301 of the Trade Act of 1974, because of France’s new DST, which imposed a 3 percent revenue tax on companies providing certain online services directed at French customers. In December 2019, USTR found that the French DST was “unreasonable, discriminatory, and burdens U.S. commerce” and was expected to collect over $500 million in taxes for activities in 2021. USTR accepted comments from interested parties in early 2020 on a proposed list of goods targeted for additional tariffs, which included French cheeses, wines, cosmetics, and handbags. However, prior to the imposition of additional duties, the U.S. and French governments were able to negotiate a truce that temporarily delayed the implementation of the DST until December 2020 and obviated the need for USTR to take immediate action.

USTR has stated that this action concerning tariffs on certain French goods is not intended to escalate trade tensions with France but instead was necessitated by Section 304(a)(2)(B) of the Trade Act of 1974 requiring that USTR announce the action to be taken within 12 months of the initiation of the Section 301 investigation. The 180-day delay of the imposition of the tariffs is intended to provide USTR and France additional time to continue discussions, which could lead to a satisfactory resolution of the DST matter.

USTR has stated that it will continue to monitor the effect of the trade action and may modify the list of affected goods necessary to ensure resolution of the matter with the Government of France.

This action comes on the heels of USTR announcing a similar action into digital service taxes involving India, the European Union and several other countries. Over the last few years, various governments have enacted or considered taxes on revenues generated by digital services companies within the different jurisdictions. Proponents of DSTs argue that the tax corrects corporate taxation to cover previously untaxed or undertaxed revenues. Alternatively, the position of the Trump administration is that DSTs unfairly discriminate against “large, U.S.-based tech companies” such as Amazon and Google.


Robert Stang is a Washington, D.C.-based partner with the law firm Husch Blackwell LLP. He leads the firm’s Customs group.

Emily Lyons is an attorney in Husch Blackwell LLP’s Washington, D.C. office.