CBI Product Factsheet: Soap in France

CBI Product Factsheet:
Soap in France
‘Practical market insights concerning your product’
Exporters from developing countries (DCs) can profit from the
growing soap supplies from DCs to France. They may be able
to supply the French mid-high-end market by promoting their
unique identity and story. Moreover, France’s role as a trade
hub seems to be growing, indicating that this country can also
be used as an intermediary to reach other markets in Western
Europe.
Although this factsheet focuses on the French market, most of the information
also applies to other mature European markets. A mature market is a market
where a product’s life cycle has passed both the emergence and growth phases.
Sales and earnings increase more slowly in mature markets than in emerging
markets. Mature market consumers are more experienced through years of
intense marketing efforts and an expanding number of choices. Whereas any
segment can be targeted, most opportunities are currently in the higher market
segments. Design, hand-made products and branding are of utmost importance
when targeting these segments. Mature European markets include Austria,
Belgium, Denmark, Finland, France, Germany, Luxembourg, the Netherlands,
Norway, Sweden, Switzerland and the United Kingdom.
Product Definition
Product
Soap
Theme
Pampering/wellness/spa
Refer to Trendmapping
for more information on
this theme.
HS codes
3401 11: Soap &
organic surface-active
products in bars or
cakes, etc, for toilet
use
3401 19: Soap &
organic surface-active
products in bars or
cakes, etc, not for
toilet use
3401 20: Soap in
other forms
PRODCOM codes
20.41.31.20: Soap and organic
surface-active products in bars,
etc., n.e.c.(not elsewhere
classified)
20.41.31.50: Soap in the form
of flakes, wafers, granules or
powders
20.41.31.80: Soaps in forms
excluding bars, cakes or
moulded shapes, paper,
wadding, felt and non-wovens
impregnated or coated with
soap/detergent, flakes, granules
or powders
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CBI Product Factsheet: Soap in France
Product Specification
Product specifications
Soap as a consumer
product in Home
Soap started off in the form of a simple bar of soap for washing the hands and clothes. It performed an antibacterial
function and as such became a mere commodity. This type of soap still exists and finds its place in the lower end of the
body care/hygiene market. This application is not discussed in this product factsheet.
Soap then became part of the growing body care market, resulting in the luxury segment of wellness and spa treatment,
also increasingly at home. In so doing, soap increasingly became a suitable gift, and the product features and its
packaging were adapted to this new need.
Finally, soap is moving into the home: as consumers are creating a much more personal ambience in the home (scent
and look of soap can create atmosphere of calm and relaxation), soaps became part of the market that may be labelled
‘the fragrance market’. In the course of this transformation from a basic, functional commodity to an emotionallycharged body and home-care product and gift, soap developed a premium side.
Quality
Quality is first and foremost related to the fact that it comes in contact with the skin, and as such, needs to comply with
health regulations (refer to ‘Legal requirements’); the product must also be non-allergic and generally safe to use.
Obviously, as soap, a basic quality requirement is that it cleans the skin, textiles or the dishes. For extra convenience,
soap now comes in solid or liquid forms.
Having developed into a body and home care item and a gift, with possibilities for premium marketing, soap needs to offer additional
attributes that contribute to consumer needs involving ‘giving’, ‘wellness/pampering’ and ‘ambience at home’. The smell and colour of
soap are the most important determinants of quality. Extra features include:
o Natural (vegetable as opposed to chemical) ingredients (e.g. Aloe Vera, Shea Butter, Jojoba…), providing fragrances
that can relax or invigorate or just create an atmosphere in the home and any of the rooms
o Biodegradable and environment-friendly ingredients and packaging
o ‘Origin’ or ‘Provenance’ (e.g. soap from Aleppo, Syria, or the French Provence)
o Hand-made (as opposed to industrial), and as such rough and uneven in shape or form
o Contributing to the atmosphere at home (which is often achieved by embossing or stamping texts on the soap itself):
e.g. nostalgic, exotic, rustic, romantic, pure.
o Part of a Spa or gift offer
There is a marked tendency for more natural and authentic in the higher segment. Interestingly, ‘green’ values are very much part and
parcel of the soaps fulfilling the needs to give and pamper. In this, the fragrance market is a forerunner in the Home market.
Labelling Your label on the outer box should include information concerning the product such as fragrance, the ingredients, quantity, size, volume,
producer (logo), consignee, country of origin and caution signs. Information on the carton should correspond to the packing list sent to
the importer.
On the product label, EAN/Barcodes are widely used within Europe. With the widespread practice of e-marketing of soaps
and fragrances, individual packing and labelling is a firm requirement.
Please note, your buyer will specify what information they need on product labels or on the item itself (logos, 'made
in…'). This forms part of the order specs. All labelling must be in English.
Packing and
Soap should be packed in agreement with the importer’s instructions. Every
packaging of product importer will have their own specific requirements related to the use of packaging
materials, the filling of cartons, palletisation, and the stowing of containers. Always
ask for the importer’s specifications as part of the order specifications. The balance
is between using maximum protection and avoiding shipping ‘air’ or excess
materials (waste removal is a cost to buyers).
Proper packing of soap can minimise the risk of damage as a result of fluctuations in temperature, humidity and shocks.
Soap packaging therefore usually consists of inner and outer cardboard boxes, with appropriate materials to protect the
products inside the inner boxes (this may involve materials such as bubble wrap or paper, depending on the preferences
of the buyer). Packaging needs to be of easy-to-handle dimensions and weight. Standards here are often related to
labour regulations at the point of destination and will have to be specified by the buyer. Cartons are usually palletised for
air or sea transport and exporters are requested to maximise pallet space.
At retail level, soap sold as a gift or luxury body or home care will carry information about the ingredients, the process or
about any additional features that are underpinning the premium marketing. Online, the message is conveyed with the
help of succinct texts, but in brick-and-mortar outlets1, small labels or forms of packaging will express the exclusivity of
the product. However, there is a strong tendency to reduce the amount of packaging, both to allow the consumer a
better sense of the natural qualities of the soap and to reduce the environmental footprint. In the case of liquid soaps,
retailers may offer refillable packaging to their customer and may, therefore, order in bulk or temporary packaging.
The exporter is not always responsible for attractive consumer packaging as it is usually designed by the importer to
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CBI Product Factsheet: Soap in France
reflect the brand identity. As a further selling point in the fragrance industry, gift packs or complete spa packs are
offered (see illustration under ‘mid-market’). The exporter may or may not be asked to supply the packaging for this,
again depending on the importers’ preferences and the exporters’ options.
Illustration
Low end
Mid end
High end
Source:
Poundland
Online-cosmetics
Maison du Savon
Fiorira un Giardino
L’Occitane
Lush
Legislative requirements
Product safety and Liability
The General product safety Directive
(GPSD), which applies to all consumer
products, states that all products marketed in
the EU should be safe. The purpose of the
legislation is to ensure consumer safety.
The Liability Directive states that the EU
importer is liable for the products introduced
into the European market. The EU importer,
however, can in principle pass on a claim to the
producer/exporter.
Packaging
Packaging and packaging waste EU
packaging legislation restricts the use of certain
heavy metals, among other requirements.
Considerations for action
 Consider implementing a management
system or code of conduct in order to
demonstrate to your buyer that you have
taken appropriate safety measures.
 Make sure your products are safe to avoid
product liability claims for defective
products.
 Reduce the amount and diversity of your
packing materials by:
partitioning inside the cartons with the
help of folded cardboard,
matching inner boxes and outer cartons
better and standardising the sizes of
each,
considering packing and logistical
requirements at the design stage of the
products
asking your buyer for alternatives
Consider using biodegradable materials
which may form a market opportunity or
even a demand from your buyer.
Chemical substances
The Cosmetics Directive soon to be replaced
by the Cosmetics Regulation specifies
requirements (physic-chemical, microbiological
& toxicological) for substances/ingredients to be
included in each Cosmetic Product Safety
report.
 Be aware of the EU legislation on cosmetic
products. Products that do not meet this
legislation are not allowed on the EU market.
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CBI Product Factsheet: Soap in France
Non-legislative requirements
Sustainability Consumers are increasingly
aware of social and environmental
circumstances during production. As a
consequence, requirements regarding
sustainability and certification are increasingly
important to buyers.
Considerations for action
 Think about sustainable production methods
and consider certification because it adds
value to your products. This is useful when
targeting the higher market segments.
Implementing a management system (or using
sustainably produced materials) may be a
competitive advantage.
Codes of conduct EU buyers may expect you
to comply with their supplier codes of conduct.
This can be the importer’s own code of conduct
or a code of conduct as a part of an initiative in
which the importer is participating (e.g. BSCI).
The following are examples of initiatives
regarding sustainability, possibly relevant if you
want to export to the EU:
The Business Social
Compliance Initiative (BSCI)
has been developed by
European retailers to improve social conditions
in sourcing countries. Suppliers of BSCI
participants are expected to comply with the
BSCI Code of conduct. To prove compliance,
your production process can be audited at the
request of the importer. Once a company is
audited, it will be included in a database which
can be used by all BSCI participants.

As more and more European importers
participate in BSCI, you can expect that
complying with the BSCI code of conduct
will be seen as a basic requirement.
Because it can harm your position on the
market if you are far from complying with
this initiative, you are advised to anticipate
by performing a self-assessment, which is
available on the BSCI website.
ISO 14001 Certification scheme which
provides generic requirements for an
organisation's environmental policy.

SA 8000 Certification standard by Social
Accountability International (SAI) for the
improvement of working conditions.

This standard can be used to reduce the
cost of waste management, distribution
costs and improve corporate image.
Therefore, consider ISO 14001 certification
which may form a market opportunity or
even a demand from your buyer.
Consider SAI certification which may form a
market opportunity or even a demand from
your buyer.
Besides social and environmental
aspects of production, Fairtrade
certification also covers a fair wage
to labourers involved in the production of soap.

Acquire Fairtrade certification to enter the
fairtrade segment. Compliance with
fairtrade norms will also make it easier to
acquire other social and environmental
norms, as it is the most integrated system
for sustainability.
The Cosmos Standard has been developed at
the European level by BDIH (Germany),
BIOFORUM (Belgium), COSMEBIO & ECOCERT
(France), ICEA (Italy) and SOIL ASSOCIATION
(UK) in order to define minimum requirements
and common definitions for organic and/or
natural cosmetics.

Consider acquiring these standards to
distinguish yourself from your competitors.
Ask your buyer which of these two
standards he prefers.
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CBI Product Factsheet: Soap in France
The NaTrue standards are applied
by an association of large organic
and natural cosmetic producers.
Trade and Macro-Economic Statistics
Figure 1: Apparent consumption of soap, value in
€ million
300
Figure 2: Production of soap, value in € million
120
100
250
80
200
France
60
France
150
Europe average
Europe average
40
100
20
50
0
0
2007
2008
2009
2010
2011
Source: Eurostat Prodcom
2013
The market is recovering after a dip in
2008-2010
 Apparent consumption of soap in France
amounted to € 184 million in 2011,
accounting for 18.5% of total European
consumption.
 European average consumption experienced
growth in the period 2007-2011. Spending
on body care continued, despite the
European crisis, and the market for soap is
expected to continue to grow.
 The French market showed an average
annual decrease of 4.5% in the period
2007-2011. This decrease is likely the result
of the economic crisis between 2008 and
2010 (refer to CBI Tradewatch for Home
Decoration). Soap is related to giving,
pampering and ambience at home and is
regarded as a premium product;
expenditure on soap therefore could have
been affected by the crisis. However, the
French market has been recovering since
2010 and remains a significant market
compared to European averages.
 European production is highly concentrated
in three main producing countries: France
and its main competitors Italy and
Germany. Together they account for more
than half of European production. This
2007
2008
2009
2010
2011
Source: Eurostat Prodcom
2013
Considerations for action
 In your strategic choice of countries in
which you market your products, France,
Germany and Italy deserve to be given
priority as their production power will
largely reflect market demand. Trade fairs
in these countries may be more useful than
others (especially Maison et Objet and
Ambiente trade fair).
 The fact that production is high in these
countries too means that manufacturers
may be looking for suppliers of new
ingredients and ‘stories’. This may open up
new opportunities for partnerships based on
raw or semi-finished materials.
 Consider combining different products in
your range (soaps with scented candles,
perfumes and room fragrances). This may
take any form, from informal collaborations
with colleagues in related product categories
to business mergers or product extension.
 Soaps related to giving, wellbeing and home
ambience are products sold in the premium
segment, where small players with a
differentiating offer may well find a
profitable niche, across the various mature
markets in the EU.
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CBI Product Factsheet: Soap in France

explains the relatively low European soap
production on average. Also in these
countries the fragrance industry (besides
soaps and diffusers including scented
candles, perfumes and eau de toilette, and
home fragrances) has matured and has
been taken to premium levels.
French production represents 8% of total
European production and was worth €96
million in 2011 after showing an average
annual increase of 4.2% during 2007-2011.
Production is expected to remain relatively
stable in the coming years.
Figure 3: Consumer confidence indicator, France
compared to EU27, 2008-February 2013
0,0
jan-08
Figure 4: GDP in France, % change on previous
year
2,5%
jan-09
jan-10
jan-11
jan-12
jan-13
-5,0
2,0%
-10,0
-15,0
1,5%
France
1,0%
EU 27
average
EU27
-20,0
France
-25,0
-30,0
0,5%
-35,0
0,0%
-40,0
2010
Source: Eurostat (2013)
Economic indicators vary
 Consumer confidence and GDP expectancy
are important indicators for the French
home decoration market and for soap as an
element of that. French consumer
confidence develops at almost the same
pace as EU 27 consumer confidence (see
Figure 3). As a whole, the French consumer
is a little bit gloomier than the average EU
citizen and this may have a negative impact
on consumption patterns for home products,
perhaps including soap, although research
confirms that spending on body care
remains one of the priorities in EU consumer
spending.
 France’s GDP is forecast to increase again at
a strong rate towards 2014. This could
suggest that consumption of luxury
products, also soap, is likely to rise.
However, because France is a mature
market, growth in consumption will be
moderate only.
2011
2012
2013
2014
Source: Eurostat (2013)
Considerations for action
 Monitor consumer confidence and GDP,
because when these turn positive,
expenditure on soap products is expected to
increase.
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CBI Product Factsheet: Soap in France
Figure 5: French imports of soap intra-EU
and DCs, value in € million
Figure 6: French main soap suppliers,
value in € million
70
300
60
250
50
Germany
200
Intra-EU/EFTA
150
DCs
100
Italy
40
Belgium
30
Israel
20
50
United Kingdom
10
0
0
2007
2008
2009
2010
2011
2012
2008
Source: Eurostat (2013)
Decline in Intra-European trade while
imports from DCs are growing
 France is Europe’s largest importer of soap
and imported € 206 million worth of soap in
2012, of which 11% was sourced in DCs.
Imports from DCs increased by 9% annually
on average between 2007 and 2012.
Various DCs witnessed their supplies to
France increase, including Israel, Malaysia,
China and Indonesia. With a growing
demand for unique products with a story,
this trend is expected to continue, if DCs are
able to supply these niches.
 DC exporters are threatened by German and
Italian suppliers, which witnessed a major
increase in their supplies to France.
Germany and Italy are important soap
producers from which France can benefit as
transportation time and costs are much
lower than for DCs. However, a positive
note is the fact that DC supplies are
increasing simultaneously.
 There is consolidation in the production of
industrially-made soap for the lower and
middle markets. This will most likely
continue as France in particular houses a
number of related industries, all forming
part of the fragrance industry: scented
candles, home fragrances and cosmetics. As
such, ingredients flows and manufacturing
technologies are concentrated, offering
competitive advantages over other
production locations in other countries.
 Moreover, France and Italy are most well
known with high-quality (natural)
ingredients and intensive marketing
(branding). As this will continue to be their
competitive advantage, it offers few
2010
2012
Source: Eurostat (2013)
Considerations for action



The growth trend in imports of soap from
DCs is driven by the market’s need for
product innovation and new stories. DC
suppliers offering new directions (esp. new
ingredients) may well find rewarding new
market niches.
In an industry that places high demands on
quality (see ‘Product Specification’), DC
suppliers need to develop a high level of
service (in order to become an option for an
EU importer).
Invest in long-term relationships with your
buyers, giving them less incentive to switch
to a competitor.
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CBI Product Factsheet: Soap in France

opportunities for other producers/exporters.
However, an increasing demand in the
premium segments in new ‘stories’ in soaps,
based on new, exotic and natural
ingredients, will be likely to drive a growing
demand for DC-produced soaps.
Figure 7: Total French exports of soap, value in € million
Source: Eurostat (2013)
Exports on the rise
 French exports of soap increased by 3.4%
annually between 2007 and 2012, to a value
of € 129 million. The main destinations
include surrounding countries Germany, the
UK, Belgium and Italy. Due to the expected
stability in French production, exports are
also expected to remain rather stable.
Figure 8: Top 5 export destination of French soap, value in
€ million
value in € million
Source: Eurostat (2013)
Considerations for action

As France mainly supplies to surrounding
countries it could also be used as an entry
point to reach other markets in Western
Europe.
 Be aware of your EU buyer’s markets and its
requirements. This way, you can develop
new ideas also for the buyer’s other EU
markets.
Market Trends
Soap benefits from the ‘slow bathing
trend’

Soap no longer only functions as an
‘antiseptic bar and physical cleaner’, it fits
in with the ‘slow bathing’ trend (refer to CBI
Trendmapping for Home Decoration and
Textiles) and the greater attention that is
paid to body care and physical/mental wellbeing. Soap brings physical and mental
freshness: it is able to create atmosphere, a
feeling of wellness both in the body and in
areas of the home.

This means that soap needs to look and
smell attractive. A result is that soap is no
longer just a bar, but it can come in
different shapes (chunks, blocks, balls)
Considerations for action

Consider investing in product development
or a partnership with a French producer.
Co-creations by producers, retailers and
marketers can increase your opportunities
on the market.

Follow the trends on product design for
soap and offer your product in different
shapes, colours and exotic fragrances.

Know you market: the main distributers
and brands, trade fairs, consumer needs,
and apply your knowledge to drive
innovation in production, market
development, pricing strategies, investment
in packaging and communication etc.

Much differentiation in the soap industry is
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CBI Product Factsheet: Soap in France


colours and exotic fragrances: it has to be
attractive to the eye, including the colour.
Soap has become more of a way of showing
one’s identity (‘I have travelled far’, or ‘I
am green’) as well as being able to create
or cater for a particular mood that can help
the consumer relax, feel invigorated or
‘wander off’ to imaginary destinations.
Based on the decorations (patterns or
statements can be stamped on soaps to
suggest an origin) or fragrances, soaps can
bring exotic touches to the home, especially
if it tells a story or illustrates a specific
identity (e.g. natural, organic, handmade).
Because of their contribution to one’s
wellbeing in the body or home, soaps have
become perfect gifts, able to express a
number of values (from an appeal to the
senses to environmental and physical
health).


related to ‘origin’: ingredients that are new
to the consumer and which have a specific
appeal. Try to distinguish your product and
promotion strategy by offering this type of
new ‘story’ (a local ingredient, a traditional
production method or packaging ideas). If
you work your own context into your soap
product and marketing, you can offer
relevant benefits to the French buyer
looking for differentiation.
The big trend in soap in the higher
segments is ‘natural over chemical
ingredients’. Source and use natural
ingredients, such as oils, spices or minerals
and communicate this to the buyer.
Green values are important in the fragrance
business. Certification (fair trade, organic)
can also be used to further enhance your
product. But sustainable materials and
production, more effective packing and
transport, and biodegradable end products
can be aspects for you to work on, to
become greener too.
Please refer to CBI Trendmapping for Home Decoration & Textiles for more
information on general trends in home decoration, and the
pampering/wellness/spa theme specifically.
Market channels and segments
Please refer to CBI Market Channels and Segments for Home Decoration,
because soap channels and segments do not differ significantly from this general
overview. The following considerations for action should be taken into account
for the soap market:


In Europe, soap has become a true lifestyle
product, and has crossed the boundaries of
several traditional categories. Soap
combines elements from the health and
body care markets, from the gift market,
and from the home fragrance market. In
these different segments, soap has
developed lower, middle and higher
segments (see ‘Product Specifications,
soaps as a consumer product in Home’). In
other words: the market for soaps in
Europe, including France, has become
broader and deeper.
As a functional mass product, soap is part of
the hygiene market, and is found in
chemists, supermarkets and other
convenience stores.
Considerations for action

Look around for opportunities to extend
your offer. This can be done by developing
gift packs, with nice local materials (woven
baskets, soap-related accessories etc)
and/or by offering related product groups
such as scented candles, home fragrances
or diffusers. Options could be to outsource
to or form collaborations with companies
that are specialised in these product
groups. A complete offer like this, could
offer competitive advantages in the
market.
 Consider targeting online retailers, in order
to reach a broader range of customers. This
means, however, supplying small batches
and fast delivery.
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CBI Product Factsheet: Soap in France




Soap has entered the up-market fragrances
market, where specialists such as Yves
Rocher (France), Lush (UK), and Sabon
(Israel) offering ‘fresh, hand-made
cosmetics’ are found. This market also
features more general distributors,
marketing home and living concepts
(lifestyle concepts), with a wide array of
product categories, such as: home care,
potpourri, soaps, scented candles, home
fragrances, bathroom textiles, recycled
products (e.g. Amélie et Mélanie, France).
In the traditional home decoration market,
players now also offer decoration and
fragrances, including soap.
The traditional gift market has also
discovered soap as an ideal personal or
corporate gift.
Quite contrary to what is observed in the
home decoration market as a whole, ecommerce has a strong presence in the
fragrance market; a great deal of soap is
sold on-line.
Market competitiveness
Please refer to CBI Market Competitiveness for home decorations, because soap
competitiveness does not differ significantly from this general overview.
Useful Sources
Trade fairs are still the most important way to meet new clients within the home
accessory sector. Therefore, your best options for meeting potential French
buyers are:
Maison et Objet - http://www.maison-objet.com/
Ambiente - http://ambiente.messefrankfurt.com
Tendence - http://tendence-lifestyle.messefrankfurt.com
This survey was compiled for CBI by ProFound – Advisers In Development
in collaboration with CBI sector expert Kees Bronk (GO - Good Oppertunity)
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
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