Distribution of products

Selective distribution

Unlike many common retail items, not all cosmetic or personal care products are on sale in all outlets. Instead, manufacturers and brand owners may decide to sell through a range of selected retailers to maintain control of their brand. While this might seem counterintuitive, there can be advantages for consumers.

The system is known as ‘selective distribution’ and involves suppliers using a pool of specialist intermediaries to sell their products. These include perfumeries, department stores, pharmacies, spas, beauty institutes and hair salons. Selective distribution gives consumers access to a wide range of products, alongside advice from professionally trained advisers who are focused on their specific needs. There are around 17,000 luxury outlets, 110,000 beauty salons and 150,000 pharmacies in Europe. They are an important part of the intermediary network that sells cosmetics and personal care products.

Selective distribution has a variety of benefits for consumers:

  • Choice: a range of products that meet consumer expectations
  • Service: professionally trained sales staff who can advise customers
  • Experience: a brand environment that offers a unique shopping experience
  • Quality: access to high-end cosmetic products

Cosmetics Europe represents mass-market companies as well as those that use selective distribution. We support selective distribution because it helps provide a wide choice of products, ranging from high to low price points. By protecting their brand image, companies can differentiate between different types of products and emphasise the unique characteristics that customers value. Policy makers recognise that selective distribution incentivises innovation and investment in high-end products, with a positive impact on consumer choice.

Counterfeiting

Counterfeiting is the unauthorised imitation or reproduction of a genuine product for financial gain. It involves misleading consumers into believing they are buying a genuine product.

Counterfeited cosmetic products can have a serious impact on consumers’ health and safety. Genuine products conform to strict laws that ensure they are safe to use. By their nature, counterfeit products do not follow these safety rules. They may look similar to the genuine article but will not provide the same level of quality or enjoyment. Counterfeiting also affects wider society. Its impact includes a loss of tax revenue and reduced investment in research and innovation.

Counterfeit cosmetics often have one or more of the following features:

  • An unusually low price
  • On sale in unusual places, such as a market or train station
  • Low-quality packaging, sometimes featuring spelling mistakes
  • Noticeably different features from the genuine product, for instance packaging that’s a different colour or shape
  • An absence of key information, such as the batch number

Customs authorities play a key role in the fight against counterfeiting. Consumers can also protect themselves by only purchasing cosmetic products from reliable sources. If you suspect that goods are counterfeit, you should contact the company that makes the genuine product and let them know.