FRANCE: SELLING TOYS AND GAMES ON-LINE

Article Abstract:

The French are cautiously eyeing the advantages and risks of selling toys on-line, and watching what is happening in the United States. The 3 Suisses and La Redoute mail order houses have put part of their catalogues on the Internet this year. The 3 Suisses uses the Internet to update its selection, offering 400 toys among the 60,000 items it sells on-line; 200 items are ordered on-line per day compared with 70,000 catalogue orders. It makes a turnover of FFr 3mn to FFr 4mn per month from toys. The toy section alone of a hypermarket with 7,000 square metres of sales space makes two and a half times that amount. Leclerc has just opened its Internet portal with three virtual shops, including one for toys. It offers 24 items selected from its loss leaders. The NDP group has carried out a survey of the American market, for the French Association of Brand Toys (AJM). In Europe, only about 10% of the people are connected to the Internet compared with 40% of Americans. In the United States, 32% of Internet users have visited a site which sells toys, only 20% of these were attracted to the site by advertising, and 89% of the visitors (or 30% of American Internet users), which represents 29mn people, have purchased a toy on-line. Even so, the NDP survey shows that on-line sales represent only 7% of toy sales at Christmas. In France, the likelihood that on-line toy sales may cannibalise sales in stores is considerable. In addition, hypermarkets usually use toys as a loss leader and sell them at a low price. In the United States, Toy'R'Us spent US$ 80mn on its own on-line sales, but could not compete with the prices listed by such electronic operators as Amazon, KB Toys, and eToys, for fear of cannibalising the sales in its own network of stores. In the United Kingdom, eToys has just opened its first site and it plans to come to France or Germany as well.

Market information - general, Game, Toy, and Children's Vehicle Manufacturing, Video Retailing Service, All Other Information Services, Toys, Home shopping

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RUSSIA: YVES ROCHER AND THE FINANCIAL CRISIS

Article Abstract:

Yves Rocher has suffered a 5-30% decrease in the number of clients in Russia, depending on the outlets. The French cosmetic mail order group runs a network of around 70 points of sales in Russia. To face the crisis, the company cut its margins and asked its franchisees to do the same, to face the devaluation of the local currency as Yves Rocher maintained its import system. Though the company reports a slow though constant restart since September 1998 when sales collapsed 50% from the same month in 1997, the average expense has fallen at FFr 40 from FFr 70, with a transfer from the luxury products to more basic products such as shower gels and make up products. Yves Rocher makes some FFr 200mn in turnover in Russia.

Comment:

Has reported a 5-30% decline in its Russian clientele

Sales & consumption, Toiletries, Russia, Yves Rocher

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FRANCE: COPPERTONE UNVEILS ITS AMBITIONS

Article Abstract:

In its communication campaign in France, Coppertone will emphasize on its simple classification system, compared to the complicated index system implemented in this country. The US suncare products specialist will focus on a number of niche markets with a strong added value. Self-tanning products where the French super and hypermarkets account for a mere 8% of the total sales, are part of those markets which Coppertone finds under-developed in France. The group wants to become the third largest seller in super and hypermarkets, behind Ambre Solaire and Nivea Sun.

Strategy & planning, Suntan & Sunscreen Lotions, Sunscreening agents, Schering-Plough Corp.

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