Problems of Marionnaud

Marionnaud is the leader of the market of the selective perfumery.

But the company has problems.

First, during the financial scandal of 2007, Marcel Frydman, the ex-chairman was sentenced because he reselled illegally perfume bottles of tests.

Prestigious brands bring Marionnaud before the courts. It's not good for the relations between the firm and its suppliers.

Secondly, the company was sentenced to vertical agreement about prices between 1997 and 2000.

In addition to these scandals, the firm has problems caused by its model of working. Marionnaud favours the proximity with its customers thanks to stores of proximity.

But this system create problems of cannibalization between the stores which are too near in the same town.

The model of working of Marionnaud is based on proximity with the consumers, so I think, its problems are inherent in this system, but Marionnaud is an experienced company and it can manage these problems.