Towards plural forms, franchising/company‐owned systems, in the French cosmetics retail industry

Abstract

The cosmetics retail industry in France is changing for at least two reasons: first, more and more services are available within cosmetics stores and, second, large groups like LVMH or Marionnaud are themselves looking for retail chains in order to exert greater control over their distribution systems. The findings from an exploratory study of several cosmetics retail companies operating in the French market seem to indicate that developing services is the best way of retaining business independence and resisting predators. Moreover, the development of new services leads these companies to implement plural form organisations. Many managerial and strategic advantages can be drawn from this type of organisation compared to pure franchise or company‐owned arrangements. A model is proposed to explain the evolution of organisational forms in cosmetics chains.

Citation

Cliquet, G. and Croizean, J. (2002), "Towards plural forms, franchising/company‐owned systems, in the French cosmetics retail industry", International Journal of Retail & Distribution Management, Vol. 30 No. 5, pp. 238-250. https://doi.org/10.1108/09590550210426408